[Intl-tobacco] Thailand: indefinite postponement of the privatisation of Tobacco Monopoly

Wed, 28 Aug 2002 13:31:00 -0700

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PRIVATISATION SCHEDULE: 3 agencies put on back-burner
The Nation, Published on Aug 21, 2002

The government has thrown its support behind the indefinite postponement
of the privatisation of three state enterprises.  The agencies are the
Government Savings Bank, the Government Housing Bank and the Thailand
Tobacco Monopoly.  The Cabinet, however, confirmed it would pursue its
plan to privatise another 15 state agencies by 2004 - five by the first
quarter of next year at the latest - said Finance Ministry deputy
permanent secretary Sommai Phasee.  Uncertainty over the sustainability
of the Thai economic revival, doubts over the stock-market environment,
and concerns that new state-enterprise shares may exceed demand, may be
the rationale behind the revision of the time frame, said a
market-watcher.  Of the five set for early privatisation, the government
will lower its stake in Thai Airways International, Krung Thai Bank and
BankThai, and intends to launch the initial public offerings of TOT Corp
- formerly known as the Telephone Organisation of Thailand - and the
Airports Authority of Thailand, Sommai said.  "These companies will sell
shares in the fourth quarter of this year or the first quarter of next
year. Whichever of them is ready first, should go to the market," he
said.  Earlier, the Financial Institutions Development Fund (FIDF) -
BankThai's majority shareholder with a stake of around 96 per cent -
announced that the bank would float 707 million newly issued shares next
month. And the country's largest state-owned enterprise, Krung Thai Bank,
has already appointed Merrill Lynch Phatra Securities as a financial
adviser for the sale of shares to lower the government's stake from more
than 90 per cent to below 50 per cent.  Sommai added he was confident
that investors' interest in the offerings would be strong.  The revised
schedule - presented to the Cabinet by the Public Enterprise Policy
Committee - also postpones the privatisation of the Port Authority of
Thailand and the Communications Authority of Thailand to next year. The
Metropolitan Waterworks Authority will also sell its shares next year.
Among the privatisations scheduled for 2004 are the Provincial Waterworks
Authority, the Provincial Electricity Authority, the Metropolitan
Electricity Authority, and the Electricity Generating Authority of
Thailand.  Meanwhile, Government Spokesman Yongyuth Tiyapairat commented
on suggestions that state-enterprise unions were protesting against
privatisation as it was tantamount to selling the country to outsiders.
"In fact, it [privatisation] adds value, creates a transparent checking
process and sharpens competitiveness. It doesn't affect employees' rights
as they are eligible to buy shares [in the state-enterprise in which they
work] at the par value price," he said.  The administration has
successfully privatised two state enterprises - Internet (Thailand) and
PTT - since late last year. PTT, Thailand's biggest IPO share sale,
marked a new milestone in the country's investment banking industry by
being subscribed in just 67 seconds.
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<P><SPAN LANG="th"><B><FONT SIZE=2 FACE="Arial">PRIVATISATION SCHEDULE: 3 agencies put on back-burner</FONT></B> </SPAN>

<BR><SPAN LANG="en-us"><B><FONT SIZE=2 FACE="Tahoma">The Nation,</FONT></B></SPAN><B><SPAN LANG="th"></SPAN><SPAN LANG="th"> <FONT SIZE=2 FACE="Arial">Published on Aug 21, 2002</FONT></SPAN></B><SPAN LANG="th"> </SPAN>

The government has thrown its support behind the indefinite postponement of the privatisation of three state enterprises.

The agencies are the Government Savings Bank, the Government Housing Bank and the Thailand Tobacco Monopoly.

The Cabinet, however, confirmed it would pursue its plan to privatise another 15 state agencies by 2004 - five by the first quarter of next year at the latest - said Finance Ministry deputy permanent secretary Sommai Phasee.

Uncertainty over the sustainability of the Thai economic revival, doubts over the stock-market environment, and concerns that new state-enterprise shares may exceed demand, may be the rationale behind the revision of the time frame, said a market-watcher.

Of the five set for early privatisation, the government will lower its stake in Thai Airways International, Krung Thai Bank and BankThai, and intends to launch the initial public offerings of TOT Corp - formerly known as the Telephone Organisation of Thailand - and the Airports Authority of Thailand, Sommai said.

&quot;These companies will sell shares in the fourth quarter of this year or the first quarter of next year. Whichever of them is ready first, should go to the market,&quot; he said.

Earlier, the Financial Institutions Development Fund (FIDF) - BankThai's majority shareholder with a stake of around 96 per cent - announced that the bank would float 707 million newly issued shares next month. And the country's largest state-owned enterprise, Krung Thai Bank, has already appointed Merrill Lynch Phatra Securities as a financial adviser for the sale of shares to lower the government's stake from more than 90 per cent to below 50 per cent.

Sommai added he was confident that investors' interest in the offerings would be strong.

The revised schedule - presented to the Cabinet by the Public Enterprise Policy Committee - also postpones the privatisation of the Port Authority of Thailand and the Communications Authority of Thailand to next year. The Metropolitan Waterworks Authority will also sell its shares next year.

Among the privatisations scheduled for 2004 are the Provincial Waterworks Authority, the Provincial Electricity Authority, the Metropolitan Electricity Authority, and the Electricity Generating Authority of Thailand.

Meanwhile, Government Spokesman Yongyuth Tiyapairat commented on suggestions that state-enterprise unions were protesting against privatisation as it was tantamount to selling the country to outsiders.

&quot;In fact, it [privatisation] adds value, creates a transparent checking process and sharpens competitiveness. It doesn't affect employees' rights as they are eligible to buy shares [in the state-enterprise in which they work] at the par value price,&quot; he said.

The administration has successfully privatised two state enterprises - Internet (Thailand) and PTT - since late last year. PTT, Thailand's biggest IPO share sale, marked a new milestone in the country's investment banking industry by being subscribed in just 67 seconds.
 
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เรื่อง: [SEATCA] Malaysia to ban cigarette-related promotions from Jan. 2003

Malaysia to ban cigarette-related promotions from Jan. 2003

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Source: Xinhua Newswire, 2002-08-20</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">URL:</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New"><A HREF="http://news.xinhuanet.com/english/2002-08/20/content_531796.htm">http://news.xinhuanet.com/english/2002-08/20/content_531796.htm</A></FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">The Malaysian government will ban all forms of cigarette-related</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">promotions including that on brand names, travels and other non-tobacco</FONT></SPAN>

businesses from Jan. 1 next year, said Health Minister Chua Jui Meng

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Tuesday.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Chua said the existing law only banned direct tobacco advertising</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">but cigarette-related promotions managed to gain public attention</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">through non-tobacco businesses' advertisements aswell as</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">sponsorships of sporting events.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">&quot;The Cabinet meeting held last week decided to ban all forms</FONT></SPAN>

ofpromotions on cigarette brand names in Malaysia effective Jan. 1

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">next year,&quot; he told reporters here.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Chua said three tobacco companies -- British American Tobacco,</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Japan Tobacco Industry and Philip Morris had stated their</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">willingness to withdraw all forms of their cigarette-related</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">advertisements beginning end of this year.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Chua said the exploitation of loopholes in the existing law by the</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">tobacco companies had undermined the government's efforts in</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">regulating usage of tobacco products.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">The Cabinet agreed that there should be a new Act on tobacco</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">control which was more specific and covered wider aspects, he</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">said,adding that this would be enacted by the end of this year.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Chua said the Tobacco Control Regulations 1993, which was underthe</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Food Act 1983, was not that effective in controlling smoking among</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Malaysians.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">He said the Health Ministry's National Health and Morbidity Survey</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">I and II showed that the number of smokers among the local</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">population had shot by almost one million from 21.5 percent of</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">thepopulation in 1986 to 24.8 per cent in 1996.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">&quot;At present, more than half of the adult men and over 3.5 out of 10</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">adult women in Malaysia are smokers,&quot; he said, adding that the</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">habit had spread fast among youngsters.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">The minister said the surveys revealed that youths were easily</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">swayed by these cigarette-related promotions in the media which</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">later became part of their lifestyle.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">He said the ratio of smokers between male and female youths was6:1</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">in 1996 which later became 4:1 in 1999 and if allowed to prolong,</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">this can be 1:1 in the next 10 years.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">On another development, Chua said the Cabinet gave its nod for the</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">setting up of the Health Foundation with its resources derivedfrom</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">part of the duties imposed on the cigarette and liquor industries.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">He said these resources can be used to implement various</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">healthprograms like the anti-smoking campaign as well as for</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">sponsorships of sports events.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">&quot;Based on what happened in other countries, soon after cigarette</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">companies withdraw from sponsoring sports events, other industries</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">will step in to replace them,&quot; he said.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">The rise in the number of smokers can be related to the increase in</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">the amount spent by the tobacco companies on promotions to boost</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">their sales.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">In the first five months of this year, the tobacco companies</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">inMalaysia spent 47 million ringgit (12.36 million US dollars) for</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">their indirect promotions and this is expected to reach 100 million</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">ringgit (26.31 million US dollars) by the end of this year.</FONT></SPAN>
</P>

<P><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">Next year's ban on cigarette-brand advertising follows the</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">requirements set by the World Health Organization (WHO) which</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">drewout the Framework Convention on Tobacco Control (FCTC) in 1999,</FONT></SPAN>

<BR><SPAN LANG="th"><FONT SIZE=2 FACE="Cordia New">which is a global accord to curb smoking.</FONT></SPAN>
</P>
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