At first glance, the shoe manufacturing factory of Lamsaiyong Population and Community Development Cooperative seems disorganised with work being done here and there. Yet, this factory is the life of the cooperative, as it makes sufficient profits for the cooperative's community activities and creates jobs for villagers.
The she-parts manufacturing business generated a profit of Bt2.2 million in 2008 fiscal year ending March 31, compared to Bt118,763 in the previous year. In 1997, the profit was Bt2.4 million or 8.04 per cent of the Bt30-million revenue.
"I don't know it we would make a profit this year, as orders are affected by the political turbulence and oil prices. Still, this helps meet our goal of creating jobs for the locals. I'm also now open to new ideas to strengthen the cooperative," chairman Yuan Manprakhon said.
The 70-year-old chairman recelled the days prior to 1989 when tambon Lam Sai Yong in Nang Rong district was nearly deserted, like other places across the country, as young adults left the village and only the elderly and children remained.
The village today is more lively and independent thanks to Lamsaiyong Population and Community Development Cooperative, which brought the factory to the village in 1992. The plant now generates the highest profit to the cooperative, which also extends farming loans, conducts crop-trading and receives deposits.
"our focus then was how to help members' children, who had to leave the village, to find jobs. We must have something here so that they could stay hers," said Cooperative chairman Yuan Manprakhon. "Our original businesses - loan extension, fertiliser trading, crops trading, and deposits - could do little in easing unemployment."
Yuan has been involve with the cooperative since 1989 when it was started. He recalled the cooperative's beginnings under the guidance of the Population and Community Development Association (PDA), which launched the Community-Based Integrated Rural Development Project (CBIRD)/Nang Rong in the district.
The non-profit organisation first arrived in the district in the 1980s to strengthen local communities through traiining and activities to improve their health and living quality. When CBIRD's funding dried up, villagers scrambled to find out how to preserve the knowledge and stand on their own feet. The cooperative was established the same year, with 140 members who had to pay at least Bt50 for 5 shares. With a seed capital of only Bt7,000, the cooperative had limitations in its lending activities and paddy rice trading and first thought about turning the village into a business site.
Bata Thailand showed them the light by offering free training to 10 staff, who returned to train others. With the staff ready, Btat transferred 35 sewing machines to the cooperative, which built up a plant on its own land with help from CBIRD's Bt150,000 financing.
Shortly after that, the cooperative approached Bata to purchase the machine for Bt5.7 million, with borrowing from CBIRD. It repaid the debt a year ahead of schedule with profits from the factory, which mainly produces school shoe tops and para floor slippers for Bata and its marketing arm in Malaysia. The plant now employs 170 workers, down from 210 prior to the 1997 crisis. Ninety per cent of them are village residents and they all earn minimum wages plus social-security benefits.
As of now, the cooperative has 746 shareholders, with a capitalk of Bt14 million. With the profits, it is creating a market for farmers' crops and has already bought a 1.5-rai plot near the existing office. To Yuan, the new land plot could accommodate a new factory or a shop where members' goods are displayed.
"We have come this far because of the support of our members and CBIRD. We've never been short of help," Yuan strssed.
CBIRD/NR is one of 18 centres nationwide of the PDA, founded by Mechai Viravaidya who is commonly known as the condom man and the CSR man. Since 1984, it has extended help to nearby villages under Mechai's philosophy that the poor are not beggars and they should not be offered freebies but instead be helped so that they can stand on their own feet.
Prayom Promboot, the centre's chief, said the centre first focused on agricultural training and promoted knowledge in health, nutrition, environment and household industry for 40 villages in 13 Tambons with funding from the Canadian International Development Agency (CIDA).
In cooperation with government agencies, the villagers later set up their own groups for different purposes like community savings, rice banks and fertiliser funds. For instance, in supporting the fertiliser funds, CBIRD/NR allocated 100 sacks of fertiliser to each group. In return for each sack, the group's members must repay with 11 buckets of rice. While nine buckets were taken as the fertiliser price, the fund kept two buckets. In the first year of operation, the fund collected 200 buckets or rice and later loaned the rice to needy villagers.
Later, villagers in 13 tambons created cooperatives for higher bargaining power against middlemen when it comes to fertilisers, tools and crops pricing. The centre's coverage area was later expanded to cover 90 villages. A few cooperatives were shut down, however. One saw its fuel station transferred to an oil retailer while one had to shut down a cow milk project as it was redundant to the province's programme.
"That's technical. The rest of them are doing fine and getting stronger. That's in line with our policy to make villagers stand on their own feet," Prayom said.
Under the centre's guidance, female villagers in Nong Ta Kai are creating a cooperative to sell silk fabrics, with some selected for Thai Craft's showroom in Bangkok. Like Lam Sai Yong, some companies set up factories in other villages.
To cash in on the growing sense of corporate social responsibility (CSR), PDA recently introduced a new programme to match companies engaged in good deeds with poor villages, with focus mainly on forest, chemical residues and water.
"We have 27 backers making a combined donation of Bt29 million for 33 villages," said Prahat Tafong, field director of the village development partnership project that kicked off in 2007.
The donors include Maitree Trust Fund, Novartis, Thai Beverage, Citigroup and British Chamber of Commerce. Their fund swill be allocated to villages for development, which costs Bt2,500 per head. For sustainability, each village will manage the fund through an organisation with 32 members who will decide how the funds are to be used for income generation, environment, education/youth, and health/the elderly.
The donors can propose ideas for the villages in formulating development plans. To Prahat, this will ensure their partnership and local community sustainability.
In his interview earlier, Mechai said there's no government in the world that can deliver everything to its citizens. Social contribution, like giving out money, won't help as it will not create new knowledge or enhance the poor's energy and ability. Worse, it teaches them to ask for free things.
"The poor don't have the chance to obtain loans at market rates. Businessman can give them ideas and provide the loans, to help them stand on their own feet."
Sunday, September 27, 2009
German aid body changes tack
The Thai-German Institute will try another tactic to achieve its goal of promoting the use of advanced technology in small- and medium-sized plants by approaching top executives and business owners.
"Earlier, we focused on developing staff at the operating level, but the plants still failed to adopt knowledge in doing business. So we will change to enhancing the business skills of executives and owners instead," TGI director Narong Varongkriengkrai said yesterday.
Local small- and medium-sized manufacturers have not given enough importance to improving their production technology, he said.
"Even though we boost the skills of the workforce to work with new, advanced technologies, it will mean nothing unless executives see the need to make the investment and move their companies to high-value production," he said.
TGI will focus on the electrical appliances, electronics and automobile industries, he said.
Damri Sukhotanang, permanent secretary of the Industry Ministry, said small- and medium-sized manufacturers cannot produce value-added products as targeted due mainly to the lack of technology.
Those manufacturers also need to pay more attention to packaging design, which will be another way to add more value to their products.
"The Industry Ministry's departments and related institutes such as TGI and the Thailand Productivity Institute have to work in unison and give priority to upgrading original-equipment manufacturers to original-design manufacturers," he said.
The Industry Ministry approved a budget of Bt142 million for TGI to provide 50 training courses for technicians and engineers in the mould industry.
Vice Industry Minister Sorayud Petchtrakul said the mould industry was one of the important basic industries, supporting many industries including automobiles, machinery and printing.
"One main problem is that we are short of skilled technicians and engineers to support the rapid changing of technologies. If our mould industry is weak, those hi-tech countries including Japan will not look favourably on continuing to invest here," he added.
"Earlier, we focused on developing staff at the operating level, but the plants still failed to adopt knowledge in doing business. So we will change to enhancing the business skills of executives and owners instead," TGI director Narong Varongkriengkrai said yesterday.
Local small- and medium-sized manufacturers have not given enough importance to improving their production technology, he said.
"Even though we boost the skills of the workforce to work with new, advanced technologies, it will mean nothing unless executives see the need to make the investment and move their companies to high-value production," he said.
TGI will focus on the electrical appliances, electronics and automobile industries, he said.
Damri Sukhotanang, permanent secretary of the Industry Ministry, said small- and medium-sized manufacturers cannot produce value-added products as targeted due mainly to the lack of technology.
Those manufacturers also need to pay more attention to packaging design, which will be another way to add more value to their products.
"The Industry Ministry's departments and related institutes such as TGI and the Thailand Productivity Institute have to work in unison and give priority to upgrading original-equipment manufacturers to original-design manufacturers," he said.
The Industry Ministry approved a budget of Bt142 million for TGI to provide 50 training courses for technicians and engineers in the mould industry.
Vice Industry Minister Sorayud Petchtrakul said the mould industry was one of the important basic industries, supporting many industries including automobiles, machinery and printing.
"One main problem is that we are short of skilled technicians and engineers to support the rapid changing of technologies. If our mould industry is weak, those hi-tech countries including Japan will not look favourably on continuing to invest here," he added.
DSI wants Map Ta Phut inquiry
The Department of Special Investigation is seeking to bring the environmental problems in Map Ta Phut within the scope of its juridical responsibility.
The department will make a proposal to a meeting of the Special Case Commission next month, department chief Thawee Sodsong said yesterday.
The commission, set up by this government, decides which criminal cases should be treated as special cases, and instructs the department to carry out investigations.
Pol Col Thawee said the prolonged pollution problems at the Map Ta Phut industrial estate in Rayong might stem from a lack of enforcement of regulations.
The industrial area had been allowed to expand to such an extent that it had caused problems for Rayong's city plan,he said. The DSI also found the environmental problems at Map Ta Phut remained very serious, Pol Col Thawee said.
The DSI started looking into Map Ta Phut's environmental problems following complaints from local residents. A group of residents also petitioned Prime Minister Abhisit Vejjajiva about their ordeal.
Pol Col Thawee yesterday invited representatives of relevant agencies and local residents to a meeting to discuss ways to solve Map Ta Phut's environmental problems.
Noi Jaitang, a residents' representative,said the expansion of industrial factories at Map Ta Phut had affected local people's health and opportunities to earn a living.
Mr Noi said toxic contaminants in the water and soil had caused members of his family to develop cancer. His mother, his mother-in-law and his wife had died of lung cancer and eye cancer while he was suffering from respiratory disease.
Fish farm production in his neighbourhood had also suffered a decline,Mr Noi said.
Renu Wechratpimol, a biology lecturer at Silpakorn University, quoting the findings from a research study on genetic changes among the people and animals at Map Ta Phut, said high levels of abnormal genetic changes and toxic contamination had been found in samples of frogs, crabs, fish and clams collected from Map Ta Phut.
The findings clearly show the pollution at Map Ta Phut and nearby areas had reached a dangerous level, she said.
The department will make a proposal to a meeting of the Special Case Commission next month, department chief Thawee Sodsong said yesterday.
The commission, set up by this government, decides which criminal cases should be treated as special cases, and instructs the department to carry out investigations.
Pol Col Thawee said the prolonged pollution problems at the Map Ta Phut industrial estate in Rayong might stem from a lack of enforcement of regulations.
The industrial area had been allowed to expand to such an extent that it had caused problems for Rayong's city plan,he said. The DSI also found the environmental problems at Map Ta Phut remained very serious, Pol Col Thawee said.
The DSI started looking into Map Ta Phut's environmental problems following complaints from local residents. A group of residents also petitioned Prime Minister Abhisit Vejjajiva about their ordeal.
Pol Col Thawee yesterday invited representatives of relevant agencies and local residents to a meeting to discuss ways to solve Map Ta Phut's environmental problems.
Noi Jaitang, a residents' representative,said the expansion of industrial factories at Map Ta Phut had affected local people's health and opportunities to earn a living.
Mr Noi said toxic contaminants in the water and soil had caused members of his family to develop cancer. His mother, his mother-in-law and his wife had died of lung cancer and eye cancer while he was suffering from respiratory disease.
Fish farm production in his neighbourhood had also suffered a decline,Mr Noi said.
Renu Wechratpimol, a biology lecturer at Silpakorn University, quoting the findings from a research study on genetic changes among the people and animals at Map Ta Phut, said high levels of abnormal genetic changes and toxic contamination had been found in samples of frogs, crabs, fish and clams collected from Map Ta Phut.
The findings clearly show the pollution at Map Ta Phut and nearby areas had reached a dangerous level, she said.
Wednesday, September 23, 2009
World steel production rises
Global crude steel production rose to its highest level in almost a year in August, figures from the World Steel Association showed on Monday, as steel mills restarted idled capacity due to increased orders.
The $500 billion industry is slowly recovering from one of the worst downturns ever and analysts expect output to rise further in the coming months, although the market is divided over whether the capacity start up is too rapid.
Crude steel production was 106.5 million tonnes in August, after rising steadily since April and up from 103.9 million tonnes in July, despite a 5.5% drop compared with August 2008.
"History tells you that demand tends to pick up faster than supply into an upturn," said analyst Jim Lennon at Macquarie Bank, referring to the highest monthly output since September 2008,when production totalled 107.9 million tonnes.
Output in China, the world's biggest producer and consumer of the metal,rose to 52.3 million tonnes in August,up 22% year-on-year and the highest ever monthly figure.
"The concern in the steel industry is that there is still overcapacity in the system and therefore there is a potential to oversupply the market.... I don't think there's any evidence of the steel mills increasing supply too fast at the moment," Lennon said.
But last week Mel Wilde, chairman of UK-based International Steel Trade Association (ISTA), said producers were "overfeeding the market" even though demand remained weak.
ArcelorMittal, the world's top steelmaker, does not agree. Chairman and chief executive Lakshmi Mittal, said last week he did not believe capacity restarts were taking place too soon.
In August, almost all the major steelproducing countries, including China,Japan, Germany, the US, Brazil and Russia reached their highest monthly output this year.
But for the first eight months of the year output remained 18.1% lower at 759.5 million tonnes compared with the same period last year.
Output in Europe and North America dropped by 32.1 and 38.7% year-onyear respectively in August. In the European Union output dropped compared with July, as Italy's production almost halved.
Production in the Middle East, where demand was buoyant last year due to booming infrastructure spending, rose by 14.9% in August compared with same month last year.
The $500 billion industry is slowly recovering from one of the worst downturns ever and analysts expect output to rise further in the coming months, although the market is divided over whether the capacity start up is too rapid.
Crude steel production was 106.5 million tonnes in August, after rising steadily since April and up from 103.9 million tonnes in July, despite a 5.5% drop compared with August 2008.
"History tells you that demand tends to pick up faster than supply into an upturn," said analyst Jim Lennon at Macquarie Bank, referring to the highest monthly output since September 2008,when production totalled 107.9 million tonnes.
Output in China, the world's biggest producer and consumer of the metal,rose to 52.3 million tonnes in August,up 22% year-on-year and the highest ever monthly figure.
"The concern in the steel industry is that there is still overcapacity in the system and therefore there is a potential to oversupply the market.... I don't think there's any evidence of the steel mills increasing supply too fast at the moment," Lennon said.
But last week Mel Wilde, chairman of UK-based International Steel Trade Association (ISTA), said producers were "overfeeding the market" even though demand remained weak.
ArcelorMittal, the world's top steelmaker, does not agree. Chairman and chief executive Lakshmi Mittal, said last week he did not believe capacity restarts were taking place too soon.
In August, almost all the major steelproducing countries, including China,Japan, Germany, the US, Brazil and Russia reached their highest monthly output this year.
But for the first eight months of the year output remained 18.1% lower at 759.5 million tonnes compared with the same period last year.
Output in Europe and North America dropped by 32.1 and 38.7% year-onyear respectively in August. In the European Union output dropped compared with July, as Italy's production almost halved.
Production in the Middle East, where demand was buoyant last year due to booming infrastructure spending, rose by 14.9% in August compared with same month last year.
CHANGES WILL DETER INVESTORS, JETRO WARNS
Japanese investors would shift their investment to other attractive countries if the Thai government amends the heavy industrial development plan, the head of the Japan External Trade Organisation (Jetro) in Bangkok, said.
Jetro president Munenori Yamada said Japanese investors, particularly steelmakers, will consider other potential countries for their investment instead of Thailand.
Last week, the government ordered the National Economic and Social and Development Board to revise the Kingdom's industrial development master plan, to clarify its long-term direction, concerning the Southern Seaboard.
The possibility of revision has created doubts among foreign investors.
Two giant steelmakers from Japan - Nippon Steel and JFE - have shown strong interest to invest in the Kingdom.
Yamada suggested that under the revision plan, Thailand should shift its focus to value-added or knowledge-based development to compete with other countries, particularly those in the neighbourhood.
The revised industrial development plan should be based on high technology sophisticated to serve as integrated industrial base for large companies, he added.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, said that investors have been worried about the unstable policies of the government. The government must have clear measures for promoting industrial development so that foreign investors can decide whether they would want to invest in the Kingdom.
To ensure that the government's industrial development policy is not changed by each cabinet, the development plan should be approved by Parliament for long-term implementation, Santi said.
In addition, he said the industrial development plans in many areas such as the Southern Seaboard, the Eastern Seaboard, and the Northeast are still needed for the long-term development. The industrial sector is one of the key sectors, employing a million workers in the country.
Jetro president Munenori Yamada said Japanese investors, particularly steelmakers, will consider other potential countries for their investment instead of Thailand.
Last week, the government ordered the National Economic and Social and Development Board to revise the Kingdom's industrial development master plan, to clarify its long-term direction, concerning the Southern Seaboard.
The possibility of revision has created doubts among foreign investors.
Two giant steelmakers from Japan - Nippon Steel and JFE - have shown strong interest to invest in the Kingdom.
Yamada suggested that under the revision plan, Thailand should shift its focus to value-added or knowledge-based development to compete with other countries, particularly those in the neighbourhood.
The revised industrial development plan should be based on high technology sophisticated to serve as integrated industrial base for large companies, he added.
Santi Vilassakdanont, chairman of the Federation of Thai Industries, said that investors have been worried about the unstable policies of the government. The government must have clear measures for promoting industrial development so that foreign investors can decide whether they would want to invest in the Kingdom.
To ensure that the government's industrial development policy is not changed by each cabinet, the development plan should be approved by Parliament for long-term implementation, Santi said.
In addition, he said the industrial development plans in many areas such as the Southern Seaboard, the Eastern Seaboard, and the Northeast are still needed for the long-term development. The industrial sector is one of the key sectors, employing a million workers in the country.
Saturday, September 19, 2009
Permit approvals could face court test
The government is on a legal collision course with environmental and community activists who claim recent approvals of industrial projects broke the law.
The possibility of a court challenge has left investors concerned about the future of several costly ventures that could be subject to stricter environmental and health impact assessments.
Protesters rallied in Rayong last week after the Industrial Estate Authority of Thailand (IEAT) and the Industrial Works Department approved operating permits for projects that had already completed environmental impact assessments (EIA).
The protesters say the permits should be cancelled as they violate Section 67 of the 2007 Constitution, which governs industries deemed harmful to the environment and public health.
Prime Minister Abhisit Vejjajiva yesterday chaired a meeting with the protesters to seek a solution to the impasse.
Sorayud Petchtrakul, an adviser to the Industry Minister, said the permit approvals were made in line with a legal opinion of the Council of State. The government's legal adviser said that since guidelines to accommodate Section 67 were still not in place, officials were unable to revoke the permits.
"For the approved permits, the PM said the public has the right to seek judicial support if they disagree with the officials," said Mr Sorayud, who attended the meeting.
"We do not have the authority to revoke permits because investors had done everything in accordance with existing laws. If we revoke the permits, the investors will sue us."
Suthi Atchasai, a leader of the People's Eastern Network, said the group had filed a case with the Administrative Court against the officials responsible for permit approvals, saying the permits should be rescinded and no new ones issued.
"We believe the approvals were against the law and need to be annulled," he said."As well, new permits need to wait for Section 67 guidelines to ensure maximum rights of villagers are guaranteed."
Until the guidelines are released and an independent body is formed to enforce them, investors must wait, or protesters would do everything possible to disrupt operations, said Mr Suthi.
But Mr Sorayud insists that the remaining projects seeking permits would continue to be processed as normal.
"The PM does not want to see a halt in investment, so we're going ahead with the permits. However, public opinion is welcome in the permit consideration process if people see any projects about which we need to be careful," he said.
The dispute is worrisome for investors,said Chainoi Puankosoom, chief executive of PTT Aromatics and Refining (PTTAR). Problems have arisen, he said,because of unclear mechanisms for dealing with environmental protection.
"We are doing everything according to existing law so we should obtain the permits," he said."If there is anything we should do more to live in harmony with communities, we are willing to do it. The government should also accelerate clear guidelines to improve confidence in new investment."
PTTAR is awaiting a permit for its US$180-million condensate residue upgrade in Map Ta Phut. Construction was completed in March. It says it faces an opportunity loss of $130,000 per day.
A total of 55 investment projects worth 200 billion baht are awaiting permit approvals. A PTT gas-separation plant is at the top of the list, along with investments by Thai Asahi and Aditya Birla.
New projects that have yet to obtain EIA approval and fall under the harmful list would have to wait for Section 67 guidelines before seeking permits.
The Industry Ministry put eight industries on the harmful list in a ministerial announcement released last Monday.They will need EIAs, health impact assessment (HIA) approval and public hearings, to be overseen by a yet-to-be formed independent organisation.
Mr Sorayud could not give a timeframe for the formation of the new body but said that in any case, any industries creating high emissions would need extra scrutiny in order to control pollution.
The possibility of a court challenge has left investors concerned about the future of several costly ventures that could be subject to stricter environmental and health impact assessments.
Protesters rallied in Rayong last week after the Industrial Estate Authority of Thailand (IEAT) and the Industrial Works Department approved operating permits for projects that had already completed environmental impact assessments (EIA).
The protesters say the permits should be cancelled as they violate Section 67 of the 2007 Constitution, which governs industries deemed harmful to the environment and public health.
Prime Minister Abhisit Vejjajiva yesterday chaired a meeting with the protesters to seek a solution to the impasse.
Sorayud Petchtrakul, an adviser to the Industry Minister, said the permit approvals were made in line with a legal opinion of the Council of State. The government's legal adviser said that since guidelines to accommodate Section 67 were still not in place, officials were unable to revoke the permits.
"For the approved permits, the PM said the public has the right to seek judicial support if they disagree with the officials," said Mr Sorayud, who attended the meeting.
"We do not have the authority to revoke permits because investors had done everything in accordance with existing laws. If we revoke the permits, the investors will sue us."
Suthi Atchasai, a leader of the People's Eastern Network, said the group had filed a case with the Administrative Court against the officials responsible for permit approvals, saying the permits should be rescinded and no new ones issued.
"We believe the approvals were against the law and need to be annulled," he said."As well, new permits need to wait for Section 67 guidelines to ensure maximum rights of villagers are guaranteed."
Until the guidelines are released and an independent body is formed to enforce them, investors must wait, or protesters would do everything possible to disrupt operations, said Mr Suthi.
But Mr Sorayud insists that the remaining projects seeking permits would continue to be processed as normal.
"The PM does not want to see a halt in investment, so we're going ahead with the permits. However, public opinion is welcome in the permit consideration process if people see any projects about which we need to be careful," he said.
The dispute is worrisome for investors,said Chainoi Puankosoom, chief executive of PTT Aromatics and Refining (PTTAR). Problems have arisen, he said,because of unclear mechanisms for dealing with environmental protection.
"We are doing everything according to existing law so we should obtain the permits," he said."If there is anything we should do more to live in harmony with communities, we are willing to do it. The government should also accelerate clear guidelines to improve confidence in new investment."
PTTAR is awaiting a permit for its US$180-million condensate residue upgrade in Map Ta Phut. Construction was completed in March. It says it faces an opportunity loss of $130,000 per day.
A total of 55 investment projects worth 200 billion baht are awaiting permit approvals. A PTT gas-separation plant is at the top of the list, along with investments by Thai Asahi and Aditya Birla.
New projects that have yet to obtain EIA approval and fall under the harmful list would have to wait for Section 67 guidelines before seeking permits.
The Industry Ministry put eight industries on the harmful list in a ministerial announcement released last Monday.They will need EIAs, health impact assessment (HIA) approval and public hearings, to be overseen by a yet-to-be formed independent organisation.
Mr Sorayud could not give a timeframe for the formation of the new body but said that in any case, any industries creating high emissions would need extra scrutiny in order to control pollution.
PM pays heed to industrial impact fears
Prime Minister Abhisit Vejjajiva has vowed to look into the environmental impact of industrial projects in Rayong's Map Ta Phut area after getting firsthand information from locals.
Villagers from the area who have been affected by industrial pollution finally got to meet the premier at Government House yesterday, after organising a series of protests and dozens of petitions on the matter over the past year.
Mr Abhisit reaffirmed the locals' right to monitor the environmental and health impacts of industrial investment in Map Ta Phut.
The villagers were particularly concerned about 55 industrial projects whose environmental impact assessments have been endorsed and are waiting for construction and operating permits from relevant agencies.
Mr Abhisit said he could not say whether or not all of the 55 projects should be put on hold as the developments should be considered on a caseby-case basis.
He also said project developers are obliged by the law to follow Article 67 of the constitution which states that any investment projects that could cause environmental and health impacts must be put before a public hearing.
The prime minister said he would take into consideration the villagers'proposal to designate Map Ta Phut as a special local administration area.Locals say the move would facilitate the local organisation's tackling of pollution problems.
"There are so many agencies working on pollution problems in Map Ta Phut.Poor integration between these relevant agencies might have disrupted the effort to solve the pollution problem there,"he said.
Mr Abhisit urged the villagers to switch from holding mass rallies about the problem to holding talks with relevant agencies where they could exchange information with officials.
"Demonstrations lead to nothing.What we should do is discussing the matter on the table," he said.
Sutthi Atchasai, a leader of the Eastern People's Network, said he was satisfied with the meeting's outcome as Mr Abhisit had showed sincerity in wanting to solve the long-lasting problem.
The Industry Ministry's representative, meanwhile, said authorities would go ahead with issuing permits for projects that have already passed environmental impact assessments.
The approval of permits was legal according to the Council of State's decision as guidelines to accommodate Article 67 of the constitution have yet to be drawn up, said Sorayud Petchtrakul, an adviser to the industry minister,who was at the meeting.
"For the approved permits, the prime minister said the public has the right to seek judicial support if they disagree with the government bodies' operations.We do not have the authority to revoke permits because investors were doing everything in accordance with existing laws. If we revoke, investors will sue us," Mr Sorayud said.
The Industrial Estate Authority of Thailand and the Industrial Works Department are responsible for approving operating permits for factories.
"The prime minister does not want to see a halt in investment, so we are going ahead with the permits.
"However, public opinion on the granting of permits is welcome," he said.
Villagers from the area who have been affected by industrial pollution finally got to meet the premier at Government House yesterday, after organising a series of protests and dozens of petitions on the matter over the past year.
Mr Abhisit reaffirmed the locals' right to monitor the environmental and health impacts of industrial investment in Map Ta Phut.
The villagers were particularly concerned about 55 industrial projects whose environmental impact assessments have been endorsed and are waiting for construction and operating permits from relevant agencies.
Mr Abhisit said he could not say whether or not all of the 55 projects should be put on hold as the developments should be considered on a caseby-case basis.
He also said project developers are obliged by the law to follow Article 67 of the constitution which states that any investment projects that could cause environmental and health impacts must be put before a public hearing.
The prime minister said he would take into consideration the villagers'proposal to designate Map Ta Phut as a special local administration area.Locals say the move would facilitate the local organisation's tackling of pollution problems.
"There are so many agencies working on pollution problems in Map Ta Phut.Poor integration between these relevant agencies might have disrupted the effort to solve the pollution problem there,"he said.
Mr Abhisit urged the villagers to switch from holding mass rallies about the problem to holding talks with relevant agencies where they could exchange information with officials.
"Demonstrations lead to nothing.What we should do is discussing the matter on the table," he said.
Sutthi Atchasai, a leader of the Eastern People's Network, said he was satisfied with the meeting's outcome as Mr Abhisit had showed sincerity in wanting to solve the long-lasting problem.
The Industry Ministry's representative, meanwhile, said authorities would go ahead with issuing permits for projects that have already passed environmental impact assessments.
The approval of permits was legal according to the Council of State's decision as guidelines to accommodate Article 67 of the constitution have yet to be drawn up, said Sorayud Petchtrakul, an adviser to the industry minister,who was at the meeting.
"For the approved permits, the prime minister said the public has the right to seek judicial support if they disagree with the government bodies' operations.We do not have the authority to revoke permits because investors were doing everything in accordance with existing laws. If we revoke, investors will sue us," Mr Sorayud said.
The Industrial Estate Authority of Thailand and the Industrial Works Department are responsible for approving operating permits for factories.
"The prime minister does not want to see a halt in investment, so we are going ahead with the permits.
"However, public opinion on the granting of permits is welcome," he said.
GREEN HURDLES LOOM FOR EIGHT PROJECTS
Upstream and downstream petrochemical plants as well as nuclear power plants are on the list of eight industrial projects with a "serious impact" on local communities that was recently issued by the Industry Ministry.
Appearing on the list means these projects must pass health-impact assessments, receive local communities' endorsement in a hearing and win approval from an independent environmental body to be set up by the Natural Resource and Environment Ministry under the auspices of Article 67 of the Constitution.
The other six project activities covered by the list are underground mining; lead and zinc mines; chemical-based mineral dissolving and upstream steel production with daily minimum capacity of 20,000 tonnes; industrial estates for upstream steel production or upstream to midstream petrochemical plants; dumping sites and kilns for hazardous wastes; and fossil-fuel power plants (except gas-fired plants) with minimum capacity of 100 megawatts.
Vice Industry Minister Sorayud Petchtrakul yesterday said Minister Charnchai Chairungrueng had endorsed the list this past Monday.
"We have no choice but to issue the list, in order to comply with the law," he said.
Department director-general Witoon Simachokedee said his agency had already approved operating licences for 12 projects with a combined value of Bt59 billion.
So far, only PTT's gas-separation plant, which is not on the list of serious-impact activities, is awaiting department approval.
LAWSUIT
Nevertheless, even though the list has been declared, in accordance with the government's resolution, the projects can proceed in the absence of the independent environment body.
Suthi Atchasai, coordinator of a citizens' network on the Eastern Seaboard, yesterday said the network would soon file suit against the National Environmental Board for approving the environmental impact assessment for 55 projects slated for the industrialised zone in Rayong's Map Ta Phut.
Most of those projects are petrochemical projects of PTT, the Siam Cement Group and Dow Chemical.
Prime Minister Abhisit Vejjajiva yesterday told villagers from Map Ta Phut that not all of the 55 projects in the area were causing environmental problems. Villagers should consider each on a case-by-case basis.
He insisted there should not be a consensus that investment in Map Ta Phut must be frozen.
"Personally, some of them can proceed," he said.
He also mentioned the possibility of declaring Map Ta Phut a special administrative zone. With its own autonomy, the zone would demonstrate unity and "speedy and united" decisions, Abhisit said.
He also believes public access to the zone will be granted. However, a law must be enforced to push through the idea.
Abhisit said he was pushing for a conclusion to determine if Map Ta Phut should become a special administrative zone.
He said government measures to contain the environmental impact in Map Ta Phut would be designed in a framework that could be enforced in other areas.
Appearing on the list means these projects must pass health-impact assessments, receive local communities' endorsement in a hearing and win approval from an independent environmental body to be set up by the Natural Resource and Environment Ministry under the auspices of Article 67 of the Constitution.
The other six project activities covered by the list are underground mining; lead and zinc mines; chemical-based mineral dissolving and upstream steel production with daily minimum capacity of 20,000 tonnes; industrial estates for upstream steel production or upstream to midstream petrochemical plants; dumping sites and kilns for hazardous wastes; and fossil-fuel power plants (except gas-fired plants) with minimum capacity of 100 megawatts.
Vice Industry Minister Sorayud Petchtrakul yesterday said Minister Charnchai Chairungrueng had endorsed the list this past Monday.
"We have no choice but to issue the list, in order to comply with the law," he said.
Department director-general Witoon Simachokedee said his agency had already approved operating licences for 12 projects with a combined value of Bt59 billion.
So far, only PTT's gas-separation plant, which is not on the list of serious-impact activities, is awaiting department approval.
LAWSUIT
Nevertheless, even though the list has been declared, in accordance with the government's resolution, the projects can proceed in the absence of the independent environment body.
Suthi Atchasai, coordinator of a citizens' network on the Eastern Seaboard, yesterday said the network would soon file suit against the National Environmental Board for approving the environmental impact assessment for 55 projects slated for the industrialised zone in Rayong's Map Ta Phut.
Most of those projects are petrochemical projects of PTT, the Siam Cement Group and Dow Chemical.
Prime Minister Abhisit Vejjajiva yesterday told villagers from Map Ta Phut that not all of the 55 projects in the area were causing environmental problems. Villagers should consider each on a case-by-case basis.
He insisted there should not be a consensus that investment in Map Ta Phut must be frozen.
"Personally, some of them can proceed," he said.
He also mentioned the possibility of declaring Map Ta Phut a special administrative zone. With its own autonomy, the zone would demonstrate unity and "speedy and united" decisions, Abhisit said.
He also believes public access to the zone will be granted. However, a law must be enforced to push through the idea.
Abhisit said he was pushing for a conclusion to determine if Map Ta Phut should become a special administrative zone.
He said government measures to contain the environmental impact in Map Ta Phut would be designed in a framework that could be enforced in other areas.
NEW DATA SHOW RECOVERY CONTINUING
Signalling that manufacturers are leading the economy into a recovery, output from the nation's factories, mines and utilities posted widespread gains in August.
In a further dose of good news,inflation remained essentially nonexistent as prices scarcely rose last month.
The August gains in industrial production marked the second straight increase after the global recession dried up the appetites of customers worldwide. Output rose o.8 per cent, the Federa Reserve said on Wednesday,beating analysts' estimates.
In part, the improvement reflected auto sales that were boosted by the government's now-ended "Cash for Clunders" programme. But analysts were impressed that output rose broadly across industries.
"Vehicles are not the whole story,"Nigel Gault, chief US economist at IHS Global Insight, said in a note to clients. Gault noted that production rose in five out of 10 categories of durable goods, including machinery and electrical equipment.
The pace of growth is expected to slow later this year. That's partly because the stimulative effect of the clunkers programme, which issued rebates for people who traded in older gas-guzzlers for new,fuel-efficient models, will fade.
But industrial stockpiles are so low that production should keep rising even as consumer spending remains weak, economists said. companies had cut their stockpiles by a record $159.2 billion (Bt5.4 trillion) in the second quarter. Low inventories tend to signal higher out put ahead, because companies even tually must produce more to refill their depleted stockpiles.
"Manufacturers are in a catch-up mode right now," Gault said. "They're adjusting for the fact that the level of demand didn't meet their worst fears."
Factory output, the single-biggest slice of overall industrial activity, also rose for the second straight month.
Auto production led the way, rising 5.5 per cent in August. That followed a whopping 20.1 per cent gain in July, when General Motors and Chrysler reopened many plants that had been closed as the companies restructured and emerged from bankruptcy.
Yet even with autos and parts stripped out, manufacturing activity gained 0.4 per cent last month.
Production of steel, aluminium and other metals rose 0.9 per cent, while electrical equipment and appliances output also increased.
Despite the recent gains, industrial companies are still operating well below capacity. The production rate in August was 69.96 per cent, under the 80 per cent consistent with a helthy econlmy.
Manufacturing output will likely grow more slowly later this year as the clunkers' impact wears off said Daniel Meckstroth, chief economist for the Manufactureers Alliance/MAPI, a business research group.
"We only expect a modest pace of recovery because of the headwinds that debt-laden consumers face," he said, meaning sluggish spending is likely for months.
Consumer spending, which accounts for about 70 per cent of the economy, is forecast by many economists to show weak growth next year. Shoppers are holding back in the face of job losses, stagnant incomes and tight credit. That contrasts with the early stages of othe r recent recoveries.
Inflation, meanwhile, remains nowhere in sight. The Consumer Price Index rose just 0.4 per cent in August, after a flat reading in July, the government said
Prices fell 1.5 per cent in the past year,as petrol prices dropped sharply from record levels last summer.
The "core" CPI, which excludes volatile food and energy prices, ticked up a scant 0.1 per cent, mathing expectations. Over the 12 months ending in August, the core rate rose 1.4 per cent, the smallest such increase in more than five years.
That means the fed faces no pressure to raise its benchmark interest rate, a step it would take to ward off high inflation. The Fed has reduced the rate it charges banks for overnight loans to a record low of nearly zero to try to revive the economy.
AT A GLANCE
The August gains in industrial production marked the second straight increase after the global recession dried up the appetites of customers worldwide. Output rose 0.8 per cent, the Federal Reserve said on Wednesday, beating analysts' estimates.
"Manufacturers are in a catch-up mode right now," Gault said. "They're adjusting for the fact that the level of demand didn't meet their worst fears."
Auto production led the way, rising 5.5 per cent in August. That followed a whopping 20.1 per cent gain in July, when General Motors and Chrysler reopened many plants that had been closed as the companies restructured and emerged from bankruptcy.
A CONTAINER SHIP loads up at the Port of Long Beach, California. US industrial production rose for the second straight month in August, with output beating analysts' forecasts.
In a further dose of good news,inflation remained essentially nonexistent as prices scarcely rose last month.
The August gains in industrial production marked the second straight increase after the global recession dried up the appetites of customers worldwide. Output rose o.8 per cent, the Federa Reserve said on Wednesday,beating analysts' estimates.
In part, the improvement reflected auto sales that were boosted by the government's now-ended "Cash for Clunders" programme. But analysts were impressed that output rose broadly across industries.
"Vehicles are not the whole story,"Nigel Gault, chief US economist at IHS Global Insight, said in a note to clients. Gault noted that production rose in five out of 10 categories of durable goods, including machinery and electrical equipment.
The pace of growth is expected to slow later this year. That's partly because the stimulative effect of the clunkers programme, which issued rebates for people who traded in older gas-guzzlers for new,fuel-efficient models, will fade.
But industrial stockpiles are so low that production should keep rising even as consumer spending remains weak, economists said. companies had cut their stockpiles by a record $159.2 billion (Bt5.4 trillion) in the second quarter. Low inventories tend to signal higher out put ahead, because companies even tually must produce more to refill their depleted stockpiles.
"Manufacturers are in a catch-up mode right now," Gault said. "They're adjusting for the fact that the level of demand didn't meet their worst fears."
Factory output, the single-biggest slice of overall industrial activity, also rose for the second straight month.
Auto production led the way, rising 5.5 per cent in August. That followed a whopping 20.1 per cent gain in July, when General Motors and Chrysler reopened many plants that had been closed as the companies restructured and emerged from bankruptcy.
Yet even with autos and parts stripped out, manufacturing activity gained 0.4 per cent last month.
Production of steel, aluminium and other metals rose 0.9 per cent, while electrical equipment and appliances output also increased.
Despite the recent gains, industrial companies are still operating well below capacity. The production rate in August was 69.96 per cent, under the 80 per cent consistent with a helthy econlmy.
Manufacturing output will likely grow more slowly later this year as the clunkers' impact wears off said Daniel Meckstroth, chief economist for the Manufactureers Alliance/MAPI, a business research group.
"We only expect a modest pace of recovery because of the headwinds that debt-laden consumers face," he said, meaning sluggish spending is likely for months.
Consumer spending, which accounts for about 70 per cent of the economy, is forecast by many economists to show weak growth next year. Shoppers are holding back in the face of job losses, stagnant incomes and tight credit. That contrasts with the early stages of othe r recent recoveries.
Inflation, meanwhile, remains nowhere in sight. The Consumer Price Index rose just 0.4 per cent in August, after a flat reading in July, the government said
Prices fell 1.5 per cent in the past year,as petrol prices dropped sharply from record levels last summer.
The "core" CPI, which excludes volatile food and energy prices, ticked up a scant 0.1 per cent, mathing expectations. Over the 12 months ending in August, the core rate rose 1.4 per cent, the smallest such increase in more than five years.
That means the fed faces no pressure to raise its benchmark interest rate, a step it would take to ward off high inflation. The Fed has reduced the rate it charges banks for overnight loans to a record low of nearly zero to try to revive the economy.
AT A GLANCE
The August gains in industrial production marked the second straight increase after the global recession dried up the appetites of customers worldwide. Output rose 0.8 per cent, the Federal Reserve said on Wednesday, beating analysts' estimates.
"Manufacturers are in a catch-up mode right now," Gault said. "They're adjusting for the fact that the level of demand didn't meet their worst fears."
Auto production led the way, rising 5.5 per cent in August. That followed a whopping 20.1 per cent gain in July, when General Motors and Chrysler reopened many plants that had been closed as the companies restructured and emerged from bankruptcy.
A CONTAINER SHIP loads up at the Port of Long Beach, California. US industrial production rose for the second straight month in August, with output beating analysts' forecasts.
NESDB TO REVAMP MASTER PLAN
The National Economic and Social Development Board has been tasked with revising the Kingdom's industrial-development master plan, to clarify the long-term direction in this regard, Deputy Prime Minister Korbsak Sabhavasu said yesterday.
Speaking at a seminar entitled "Direction for Industrial Development under HIA Criteria" hosted by the Economic Reporters Association, Korbsak said it was difficult for industries and local communities to grow together.
"We gave support to the industrial sector for decades by focusing on economic growth but were rarely concerned about the impact on other areas. However, Map Ta Phut is a good case study for making us consider whether we've gone in the right direction for developing our industries," he told the audience, which consisted mostly of economic reporters but included some environmentalists.
Growing environmental concerns have resulted in delays in implementing some industrial projects. There have been protests by local communities, and they have had to comply with the environmental rules under Article 67 of the Constitution, but the authorities have yet to iron out guideline inconsistencies.
Revision of the master plan will be completed this year. The new version will classify the effects of each industry and indicate possible locations for accommodating industries with high environmental impact.
Korbsak said despite the government's strong determination to steer the economy without harming people's health or the environment, it would not change the overall economic structure by halting promotion of export-oriented industries, which account for 60-70 per cent of gross domestic product.
"We would do better to develop those areas we are good at, such as agriculture. If possible, should we encourage heavy industries that affect our people and the environment to operate outside the country, like developed countries do?" he said.
He said new projects planned for the Map Ta Phut Industrial Estate would find it difficult to pass an environmental-impact assessment (EIA), because of the density of plants in the area. Some 50 projects worth a combined Bt280 billion will be the last group to receive EIAs.
After the seminar, he said he personally objected to allowing steel smelters in the South, which should be kept pristine for tourism rather than used for manufacturing.
Sonthi Kochawat, director of the Office of Natural Resources and Environmental Policy and Planning's EIA Monitoring and Development Centre, said his agency would adopt strategic environmental assessments in evaluating the impact of industrial sites before approving an EIA for a project.
"We'll place greater importance on assessing the appropriateness between an industrial project and its location, in order to squash conflicts between manufacturers and local communities at the start," he said.
He said the new guidelines for approving EIAs would take effect on December 30. They will feature evaluations of public-health impacts and allow greater public participation.
Meanwhile, Supoj Songsiang, a member of the Bang Saphan Preservation Network, said it would be difficult to persuade locals to agree to having factories built in their backyard no matter how strict the laws and regulations.
"Even though the new regulations will increase participation by local communities, in fact we'll still be treated with double standards," he said.
Panrat Phechpakdee, director of the Federation of Thai Industries' Industrial Environment Institute, said the private sector was not worried about the changes to the laws and regulations, but they did want the relevant agencies to announce them as soon as possible.
Speaking at a seminar entitled "Direction for Industrial Development under HIA Criteria" hosted by the Economic Reporters Association, Korbsak said it was difficult for industries and local communities to grow together.
"We gave support to the industrial sector for decades by focusing on economic growth but were rarely concerned about the impact on other areas. However, Map Ta Phut is a good case study for making us consider whether we've gone in the right direction for developing our industries," he told the audience, which consisted mostly of economic reporters but included some environmentalists.
Growing environmental concerns have resulted in delays in implementing some industrial projects. There have been protests by local communities, and they have had to comply with the environmental rules under Article 67 of the Constitution, but the authorities have yet to iron out guideline inconsistencies.
Revision of the master plan will be completed this year. The new version will classify the effects of each industry and indicate possible locations for accommodating industries with high environmental impact.
Korbsak said despite the government's strong determination to steer the economy without harming people's health or the environment, it would not change the overall economic structure by halting promotion of export-oriented industries, which account for 60-70 per cent of gross domestic product.
"We would do better to develop those areas we are good at, such as agriculture. If possible, should we encourage heavy industries that affect our people and the environment to operate outside the country, like developed countries do?" he said.
He said new projects planned for the Map Ta Phut Industrial Estate would find it difficult to pass an environmental-impact assessment (EIA), because of the density of plants in the area. Some 50 projects worth a combined Bt280 billion will be the last group to receive EIAs.
After the seminar, he said he personally objected to allowing steel smelters in the South, which should be kept pristine for tourism rather than used for manufacturing.
Sonthi Kochawat, director of the Office of Natural Resources and Environmental Policy and Planning's EIA Monitoring and Development Centre, said his agency would adopt strategic environmental assessments in evaluating the impact of industrial sites before approving an EIA for a project.
"We'll place greater importance on assessing the appropriateness between an industrial project and its location, in order to squash conflicts between manufacturers and local communities at the start," he said.
He said the new guidelines for approving EIAs would take effect on December 30. They will feature evaluations of public-health impacts and allow greater public participation.
Meanwhile, Supoj Songsiang, a member of the Bang Saphan Preservation Network, said it would be difficult to persuade locals to agree to having factories built in their backyard no matter how strict the laws and regulations.
"Even though the new regulations will increase participation by local communities, in fact we'll still be treated with double standards," he said.
Panrat Phechpakdee, director of the Federation of Thai Industries' Industrial Environment Institute, said the private sector was not worried about the changes to the laws and regulations, but they did want the relevant agencies to announce them as soon as possible.
Wednesday, September 16, 2009
THIRD MAN ENTERS RACE FTI CHAIR
The Federation of Thai Industries' Electrical, Electronics and Allied Industry Club yesterday nominated one more candidate in the race to become the next FTI chairman.
Suraporn Simakulthorn, the new candidate, said: "If I win, I would prefer a single term [two years], because I only want to reorganise the FTI and create harmony among the members. Even though regulations allow for two consecutive terms as chairman, I don't think I'd do that."
He said his two main objectives for running were to reorganise the FTI and enhance the industrial sector's competitiveness, in order to be a leader within Asean.
Suraporn is president of Kulthorn Kirby, a manufacturer of hermetic compressors for refrigeration and air-conditioning systems.
Two others earlier announced their candidacy for the election, which will be held next March.
One is vice chairman Payungsak Chartsutipol, who has the backing of leading firms like the Siam Cement Group, PTT and the Saha Group.
Asian Honda Motor senior vice president Adisak Rohitasune is the other candidate. He was proposed by Saha Farms Group president and CEO Manoonsri chotitawan and is supported by automotive companies and auto-parts manufacturers.
Suraporn Simakulthorn, the new candidate, said: "If I win, I would prefer a single term [two years], because I only want to reorganise the FTI and create harmony among the members. Even though regulations allow for two consecutive terms as chairman, I don't think I'd do that."
He said his two main objectives for running were to reorganise the FTI and enhance the industrial sector's competitiveness, in order to be a leader within Asean.
Suraporn is president of Kulthorn Kirby, a manufacturer of hermetic compressors for refrigeration and air-conditioning systems.
Two others earlier announced their candidacy for the election, which will be held next March.
One is vice chairman Payungsak Chartsutipol, who has the backing of leading firms like the Siam Cement Group, PTT and the Saha Group.
Asian Honda Motor senior vice president Adisak Rohitasune is the other candidate. He was proposed by Saha Farms Group president and CEO Manoonsri chotitawan and is supported by automotive companies and auto-parts manufacturers.
NO NEW FACTORIES WITHOUT ASSURANCES
Expansion plan for industrial plants at Map Ta Phut should be debated at public hearings before approval is given
The government must carefully consider its policy at the Map Ta Phut industrial estate in Rayong after the National Human Rights Commission (NHRC) recently pointed out that approving more factories at this site - now a pollution-control zone - could violate the constitution.
The NHRC says that if the government allows more factories to be located at Map Ta Phut, it could be interpreted as a violation of Article 67 of the Charter.
The plan for more factories has faced opposition and protests from local people who fear the environmental impact of further development and the pollution it will cause, will have negative consequences on their way of life.
The big question for the government is how to balance industrial development and the interests of residents who live in the area.
Chairman of the NHRC's Committee for Civil Rights, Niran Pitakwatchara, said his panel would send a letter to Prime Minister Abhisit Vejjajiva, who chairs a joint public- and private-sector panel that is looking at licences for Map Ta Phut.
Industries meanwhile argue that factories will not pollute the environment.
Sounds familiar, doesn't it?
The local residents are not convinced by this argument because an independent organisation - made up of representatives of environmental and health groups - to investigate the possible environmental impact has yet to come into being. A bill to set up such an organisation has not materialised so far.
The problem lies in a lack of trust between people in the area and the industries, as well as the government agencies who oversee environmental standards. This deep-seated mistrust is nothing new, however. Unfortunately, no administration has ever taken this matter seriously, or has had the political will to do something about it. And so there has been incident after incident and protest after protest; deals are made and life goes on. But the mistrust persists.
At this particular juncture, with the debate over Map Tha Phut ongoing, it would be unwise for the government to proceed with the investment expansion plan without the consent of the locals. In the past, public hearings on proposed projects - such as the Bo Nok Hin Krut power plant in Prachuap Khiri Khan province - created huge conflict in local communities.
Certainly, Rayong residents are entitled to vent their disapproval of the plan for new factories. After all, they are the victims of the unrestrained industrial development that has gone on for years, and the potential victims of any further uncontrolled expansion.
Thailand has transformed its economy from being agriculture-based to manufacturing-based, partly at the expense of the well-being of local residents. The agencies involved might have been excited about the foreign exchange that these factories brought into the country at first. But the pollution they caused later raised the question of whether it's worthwhile to keep expanding the industrial base at the expense of people's health.
A number of irresponsible factories discharge waste, causing severe health problems for nearby residents. Although the authorities may argue that the factories have to pass an environmental standard, such are apparently not sufficient to assure people they will not have to suffer from the effects of pollution. Last week, villagers rallied again outside the Map Ta Phut estate office to protest against the plan to extend more licences for new factories.
It would not be a shrewd move for the authorities and industries to proceed with the expansion without listening to the residents' voices. They should first try to create understanding among the people that their plants will not harm the environment. If the people don't buy in to their claims, the conflict between industries and residents will erupt again.
The government meanwhile must work out how to assure residents that the environmental standards will be respected. This can be done through the setting up of a neutral body.
If this is not done, no one will be convinced that new factories conform to the environmental regulations, and peaceful coexistence between local residents and the industries will not be possible.
Thais may soon have to question whether this path of industrial development will lead to a desirable future.
The government must carefully consider its policy at the Map Ta Phut industrial estate in Rayong after the National Human Rights Commission (NHRC) recently pointed out that approving more factories at this site - now a pollution-control zone - could violate the constitution.
The NHRC says that if the government allows more factories to be located at Map Ta Phut, it could be interpreted as a violation of Article 67 of the Charter.
The plan for more factories has faced opposition and protests from local people who fear the environmental impact of further development and the pollution it will cause, will have negative consequences on their way of life.
The big question for the government is how to balance industrial development and the interests of residents who live in the area.
Chairman of the NHRC's Committee for Civil Rights, Niran Pitakwatchara, said his panel would send a letter to Prime Minister Abhisit Vejjajiva, who chairs a joint public- and private-sector panel that is looking at licences for Map Ta Phut.
Industries meanwhile argue that factories will not pollute the environment.
Sounds familiar, doesn't it?
The local residents are not convinced by this argument because an independent organisation - made up of representatives of environmental and health groups - to investigate the possible environmental impact has yet to come into being. A bill to set up such an organisation has not materialised so far.
The problem lies in a lack of trust between people in the area and the industries, as well as the government agencies who oversee environmental standards. This deep-seated mistrust is nothing new, however. Unfortunately, no administration has ever taken this matter seriously, or has had the political will to do something about it. And so there has been incident after incident and protest after protest; deals are made and life goes on. But the mistrust persists.
At this particular juncture, with the debate over Map Tha Phut ongoing, it would be unwise for the government to proceed with the investment expansion plan without the consent of the locals. In the past, public hearings on proposed projects - such as the Bo Nok Hin Krut power plant in Prachuap Khiri Khan province - created huge conflict in local communities.
Certainly, Rayong residents are entitled to vent their disapproval of the plan for new factories. After all, they are the victims of the unrestrained industrial development that has gone on for years, and the potential victims of any further uncontrolled expansion.
Thailand has transformed its economy from being agriculture-based to manufacturing-based, partly at the expense of the well-being of local residents. The agencies involved might have been excited about the foreign exchange that these factories brought into the country at first. But the pollution they caused later raised the question of whether it's worthwhile to keep expanding the industrial base at the expense of people's health.
A number of irresponsible factories discharge waste, causing severe health problems for nearby residents. Although the authorities may argue that the factories have to pass an environmental standard, such are apparently not sufficient to assure people they will not have to suffer from the effects of pollution. Last week, villagers rallied again outside the Map Ta Phut estate office to protest against the plan to extend more licences for new factories.
It would not be a shrewd move for the authorities and industries to proceed with the expansion without listening to the residents' voices. They should first try to create understanding among the people that their plants will not harm the environment. If the people don't buy in to their claims, the conflict between industries and residents will erupt again.
The government meanwhile must work out how to assure residents that the environmental standards will be respected. This can be done through the setting up of a neutral body.
If this is not done, no one will be convinced that new factories conform to the environmental regulations, and peaceful coexistence between local residents and the industries will not be possible.
Thais may soon have to question whether this path of industrial development will lead to a desirable future.
Tuesday, September 15, 2009
NGOs push harder for independent environmental body
Activists are hoping to collect enough signatures this month to push for an independent environmental agency to monitor the impact of heavy industry on local communities.
Non-governmental organisations have gathered half of the 100,000 signatures needed by the constitution to forward a draft organic law to parliament in relation to the constitution's Article 67.
"We could not wait for the government to launch the organic law to set up an independent committee to decide on the serious issues which affect the lives and deaths of communities," Phairoj Pholphet, chairman of the NGO Coordinating Committee, told a recent seminar attended by community leaders affected by heavy industry such as steel production, power plants and gold mining.
Mr Phairoj said another 50,000 names would be added to the petition by the end of the month.
The Natural Resources and Environment Ministry is drafting an organic law on an independent organisation to screen heavy impact industries. But pressure from industry and political turbulence have stalled the process, the seminar was told.
Article 67 stipulates that all factories with the potential to have a serious environmental impact on communities must be approved by an independent organisation made up of representatives of environmental and health groups,with health and environmental studies undertaken by tertiary institutes.
But the Council of State ruled that authorities could process project appli-cations during the absence of the organic law to set up the body.
The ruling has led to confrontations between villagers and project operators and local administrative organisations in several places including Map Ta Phut in Rayong's Muang district.
Banjerd Singkaneti, a Thammasat University professor in law, said the Council of State could not interpret the constitution in a way that defied or undermined people's rights.
The article must be strictly implemented.
Heavy industries thought to be dangerous to communities should not be pushed through without public hearings and independent environmental and health impact assessments, he said.
The National Human Rights Commission also warned the government against approving more factories in the Map Ta Phut industrial area after it was declared a pollution-control zone, as this could be taken as a violation of the constitution.
Sanchai Sutiphanviharn, of Mahidol University's environmental and resources faculty, said the independent environmental agency would be duty-bound to consider the environment, health,archeological and tourist value of the affected areas.
Detcharat Sukgamnerd, a researcher with the Foundation of Health, said during the absence of an organic law to enforce Article 67, communities could resort to the National Health Act which allowed a review of the health impact assessment of industries without having to wait for the environmental impact assessment.
Non-governmental organisations have gathered half of the 100,000 signatures needed by the constitution to forward a draft organic law to parliament in relation to the constitution's Article 67.
"We could not wait for the government to launch the organic law to set up an independent committee to decide on the serious issues which affect the lives and deaths of communities," Phairoj Pholphet, chairman of the NGO Coordinating Committee, told a recent seminar attended by community leaders affected by heavy industry such as steel production, power plants and gold mining.
Mr Phairoj said another 50,000 names would be added to the petition by the end of the month.
The Natural Resources and Environment Ministry is drafting an organic law on an independent organisation to screen heavy impact industries. But pressure from industry and political turbulence have stalled the process, the seminar was told.
Article 67 stipulates that all factories with the potential to have a serious environmental impact on communities must be approved by an independent organisation made up of representatives of environmental and health groups,with health and environmental studies undertaken by tertiary institutes.
But the Council of State ruled that authorities could process project appli-cations during the absence of the organic law to set up the body.
The ruling has led to confrontations between villagers and project operators and local administrative organisations in several places including Map Ta Phut in Rayong's Muang district.
Banjerd Singkaneti, a Thammasat University professor in law, said the Council of State could not interpret the constitution in a way that defied or undermined people's rights.
The article must be strictly implemented.
Heavy industries thought to be dangerous to communities should not be pushed through without public hearings and independent environmental and health impact assessments, he said.
The National Human Rights Commission also warned the government against approving more factories in the Map Ta Phut industrial area after it was declared a pollution-control zone, as this could be taken as a violation of the constitution.
Sanchai Sutiphanviharn, of Mahidol University's environmental and resources faculty, said the independent environmental agency would be duty-bound to consider the environment, health,archeological and tourist value of the affected areas.
Detcharat Sukgamnerd, a researcher with the Foundation of Health, said during the absence of an organic law to enforce Article 67, communities could resort to the National Health Act which allowed a review of the health impact assessment of industries without having to wait for the environmental impact assessment.
Sunday, September 13, 2009
Factories urged to adopt CSR in communities
The Department of Industrial Works has urged industrial factories in its umbrella to adopt its standard of the Corporate Social Responsibility, Department of Industrial Works (CSR-DIW) to enable them to live in harmony with the surrounding communities.
"We want to see a greater number of factories adopting the standard and we'll send our experts to give them advice on how to adopt it," he added. CSR-DIW focuses on many areas of social responsibility, including law compliance, international standard compliance, promoting participation of stakeholders, accountability, transparency, sustainable development, ethical practice, human-rights protection, and observing diversity.
The Thai Namthip bottling plant at Rangsit is one of the factories in the process of promoting CSR-DIW.
Veera Akaraputhiporn, vice president for corporate affairs of Thai Namthip, said the company's plant in Pathum Thani has already complied with the CSR-DIW.
It is proceeding to have the other plants, including that in Rangsit, to comply with the standard, to be followed by each of those in Khon Kaen, Nakhon Ratchasima, and Hua Mark in Bangkok.
"We want to see a greater number of factories adopting the standard and we'll send our experts to give them advice on how to adopt it," he added. CSR-DIW focuses on many areas of social responsibility, including law compliance, international standard compliance, promoting participation of stakeholders, accountability, transparency, sustainable development, ethical practice, human-rights protection, and observing diversity.
The Thai Namthip bottling plant at Rangsit is one of the factories in the process of promoting CSR-DIW.
Veera Akaraputhiporn, vice president for corporate affairs of Thai Namthip, said the company's plant in Pathum Thani has already complied with the CSR-DIW.
It is proceeding to have the other plants, including that in Rangsit, to comply with the standard, to be followed by each of those in Khon Kaen, Nakhon Ratchasima, and Hua Mark in Bangkok.
Friday, September 11, 2009
ANY NEW FACTORIES WOULD BE ILLEGAL
The National Human Rights Commission (NHRC) warned the government yesterday that approving more factories at Map Ta Phut industrial area - now a pollutioncontrol zone - could violate the constitution.
Chairman of the NHRC's Committee for Civil Rights, Niran Pitakwatchara, said his panel would send a letter to Prime Minister Abhisit Vejjajiva, who chairs a joint public and private sector panel, which is looking at licences for Map Ta Phut, to warn that allowing more factories would violate Article 67 of the charter.
He said Article 67 stipulatฌed that projects likely to have severe impacts on communities must be approved by an independent organisation made up of representatives of environmental and health groups, with health and environmental studies undertaken by institutes of higher education.
However, while a bill to set up such an organisation had been drawn up, it had not materialised, for unknown reasons, he said.
Although the government insisted on a Council of State recommendation to use the National Environment Act 1992 while such a body was yet to be established, in reality, use of Environmental Impact Assessment (EIA) reports under this law was not up to standard, he said.
In the past, public hearings for projects such as the Bo NokHin Krut power plant proposed in Prachuap Khiri Khan created huge conflicts in local communities, he said.
Thus the government could not issue factory licences until an independent body granted permission first or it would be a violation of the 2007 constitution, he said.
In Rayong's Muang district, Suthi Atchasai, coordinator of a public network on the eastern seaboard led 200 villagers to rally yesterday outside the Map Ta Phut estate office, while police guarded the entrance.
Carrying a coffin and wreaths to burn as part of the protest, they called for estate director Peerawat Rungreungsri to receive their formal request to stop extending factories until the provincial plan to prevent pollution was finished.
They also called for an inquiry to find out who was paying matermind the attempt to stop.
Suthi also said that he was asking Democrat Party's Rayong MP Sathit Pitudecha to arrange the group's meeting with Abhisit about this matter.
If this didn't happen soon, the group would file a police complaint against the Premier, Industry Minister, as well as other related Cabinet members.
The group would also filed a lawsuit to the Rayong Administrative Court for an injunction. The protesters then moved to place a coffin and wreaths in front of the nearby SCG, Thai Cement and PTT gas separation plants, which were reportedly applying for permission to more factory establishment.
The protesters gave speeches and moved to Noen Samlee Intersection before dissolving.
Chairman of the NHRC's Committee for Civil Rights, Niran Pitakwatchara, said his panel would send a letter to Prime Minister Abhisit Vejjajiva, who chairs a joint public and private sector panel, which is looking at licences for Map Ta Phut, to warn that allowing more factories would violate Article 67 of the charter.
He said Article 67 stipulatฌed that projects likely to have severe impacts on communities must be approved by an independent organisation made up of representatives of environmental and health groups, with health and environmental studies undertaken by institutes of higher education.
However, while a bill to set up such an organisation had been drawn up, it had not materialised, for unknown reasons, he said.
Although the government insisted on a Council of State recommendation to use the National Environment Act 1992 while such a body was yet to be established, in reality, use of Environmental Impact Assessment (EIA) reports under this law was not up to standard, he said.
In the past, public hearings for projects such as the Bo NokHin Krut power plant proposed in Prachuap Khiri Khan created huge conflicts in local communities, he said.
Thus the government could not issue factory licences until an independent body granted permission first or it would be a violation of the 2007 constitution, he said.
In Rayong's Muang district, Suthi Atchasai, coordinator of a public network on the eastern seaboard led 200 villagers to rally yesterday outside the Map Ta Phut estate office, while police guarded the entrance.
Carrying a coffin and wreaths to burn as part of the protest, they called for estate director Peerawat Rungreungsri to receive their formal request to stop extending factories until the provincial plan to prevent pollution was finished.
They also called for an inquiry to find out who was paying matermind the attempt to stop.
Suthi also said that he was asking Democrat Party's Rayong MP Sathit Pitudecha to arrange the group's meeting with Abhisit about this matter.
If this didn't happen soon, the group would file a police complaint against the Premier, Industry Minister, as well as other related Cabinet members.
The group would also filed a lawsuit to the Rayong Administrative Court for an injunction. The protesters then moved to place a coffin and wreaths in front of the nearby SCG, Thai Cement and PTT gas separation plants, which were reportedly applying for permission to more factory establishment.
The protesters gave speeches and moved to Noen Samlee Intersection before dissolving.
Thursday, September 10, 2009
Protest seeks permits freeze
More than 2,000 protesters rallied in Rayong yesterday demanding the Industry Ministry put on hold permits for investment projects which have passed the environmental impact assessment (EIA) stage.
The request was lodged with a Rayong deputy governor, and the protesters want a response by today.
"If the provincial administrative authority refuses to do as we ask, we will mount a more hostile movement because we believe the government is violating the constitution," said protest leader Suthi Atchasai.
Industry Minister Chanchai Chairungrueng recently let ministry officials issue permits for projects which had passed the EIA stage of planning.
The minister was acting on advice from the Council of State that approval could be given in such cases.
However, the activists argued that the Council of State was unaccountable to people, and projects potentially damaging to residents' health must also pass a health impact assessment and a public hearing.
Chairman of the Federation of Thai Industries Santi Vilassakdanont said the protesters should respect the Council of State's decision.
The request was lodged with a Rayong deputy governor, and the protesters want a response by today.
"If the provincial administrative authority refuses to do as we ask, we will mount a more hostile movement because we believe the government is violating the constitution," said protest leader Suthi Atchasai.
Industry Minister Chanchai Chairungrueng recently let ministry officials issue permits for projects which had passed the EIA stage of planning.
The minister was acting on advice from the Council of State that approval could be given in such cases.
However, the activists argued that the Council of State was unaccountable to people, and projects potentially damaging to residents' health must also pass a health impact assessment and a public hearing.
Chairman of the Federation of Thai Industries Santi Vilassakdanont said the protesters should respect the Council of State's decision.
Tuesday, September 8, 2009
CABINET NOD FOR LOANS FROM WB, ADB
The Cabinet yesterday approved borrowing a total of US$170.30 million (Bt5.62 billion) from the World Bank and the Asian Development Bank to finance the construction of four expressways.
Deputy government spokesman Phumin Leetheerapra said the $79.30-million loan from the World Bank would be for 15 years, including a five-year grace period, with an average interest rate of 0.91 per cent per annum. The $77.10-million loan from the ADB is for the same duration and the interest rate would be in line with the US floating rate.
Last week, the Cabinet had cancelled the loan. However, the finance minister insisted that loans from the two banks, for the construction of expressways, is the most appropriate means of financing the projects.
Parliamentary approval is necessary for the two loan deals, he said.
The Cabinet also approved some programmes to ease pollution in Map Ta Phut and Rayong. The Education Ministry is to consider the consolidation of universities in the province to provide occupational health, environment and other studies.
The ministries of public health and natural resources and environment are to present concrete measures to ease health problems, probably through a special medical unit. The Interior Ministry was also instructed to find ways to establish a special regulatory unit to improve the province's administration.
The Cabinet also approved a budget of Bt90 million for the Science Ministry's recycling project to turn dried longans in the government's stock to biomass energy.
Deputy government spokesman Phumin Leetheerapra said the $79.30-million loan from the World Bank would be for 15 years, including a five-year grace period, with an average interest rate of 0.91 per cent per annum. The $77.10-million loan from the ADB is for the same duration and the interest rate would be in line with the US floating rate.
Last week, the Cabinet had cancelled the loan. However, the finance minister insisted that loans from the two banks, for the construction of expressways, is the most appropriate means of financing the projects.
Parliamentary approval is necessary for the two loan deals, he said.
The Cabinet also approved some programmes to ease pollution in Map Ta Phut and Rayong. The Education Ministry is to consider the consolidation of universities in the province to provide occupational health, environment and other studies.
The ministries of public health and natural resources and environment are to present concrete measures to ease health problems, probably through a special medical unit. The Interior Ministry was also instructed to find ways to establish a special regulatory unit to improve the province's administration.
The Cabinet also approved a budget of Bt90 million for the Science Ministry's recycling project to turn dried longans in the government's stock to biomass energy.
Thursday, September 3, 2009
MDX projects flat 2009 revenue
The SET-listed industrial land and power plant developer MDX Plc expects its revenue to stay on par with last year on hopes of an improved industrial sector in the second half.
The company can equal the 650 million baht revenue it recorded last year,but maintaining profit at 125 million baht would be difficult, said chairman Pracha Hetrakun.
MDX recorded a first-half net loss of 47 million baht due mainly to the decline in industrial estate demand.
"Another main reason [for losses] is the delay in our negotiations to sell power from the Nam Ngum 3 power plant to the Electricity Generating Authority of Thailand (Egat)," he said.
"Demand for power has decreased in line with the economic slowdown and this caused the delay of the deal, we have no idea when [the deal] will reach an agreement. This delay has an impact on our expected income."
Land sales at its Gateway City Industrial estate have fallen in the global slump.
Gateway City may only sell 20 rai of industrial land in Chachoengsao this year. It currently has 1,000 rai of undeveloped land and about 500 to 600 rai of developed land at the project.
However, it expects utilities income to increase in the second half as existing factories are expected to increase their capacity as global demand improves.
MDX also hopes to earn income from its 350-megawatt power plant in Samut Prakan's Bang Bo district.
The company is now expanding capacity at the Nam Theun-Hinboun hydro-power plant in Laos to 500 MW from 210 MW. The $500 million investment project is expected to completed in 2012.
Mr Pracha said no new investment was planned because of the downturn.
With new investment expected to remain low, affecting future earnings from its industrial estate business, MDX is considering a heavier focus on energy,which has bigger margins.
Shares of MDX closed yesterday on the SET at 1.28 baht, down four satang,in trade worth 7.26 million baht.
The company can equal the 650 million baht revenue it recorded last year,but maintaining profit at 125 million baht would be difficult, said chairman Pracha Hetrakun.
MDX recorded a first-half net loss of 47 million baht due mainly to the decline in industrial estate demand.
"Another main reason [for losses] is the delay in our negotiations to sell power from the Nam Ngum 3 power plant to the Electricity Generating Authority of Thailand (Egat)," he said.
"Demand for power has decreased in line with the economic slowdown and this caused the delay of the deal, we have no idea when [the deal] will reach an agreement. This delay has an impact on our expected income."
Land sales at its Gateway City Industrial estate have fallen in the global slump.
Gateway City may only sell 20 rai of industrial land in Chachoengsao this year. It currently has 1,000 rai of undeveloped land and about 500 to 600 rai of developed land at the project.
However, it expects utilities income to increase in the second half as existing factories are expected to increase their capacity as global demand improves.
MDX also hopes to earn income from its 350-megawatt power plant in Samut Prakan's Bang Bo district.
The company is now expanding capacity at the Nam Theun-Hinboun hydro-power plant in Laos to 500 MW from 210 MW. The $500 million investment project is expected to completed in 2012.
Mr Pracha said no new investment was planned because of the downturn.
With new investment expected to remain low, affecting future earnings from its industrial estate business, MDX is considering a heavier focus on energy,which has bigger margins.
Shares of MDX closed yesterday on the SET at 1.28 baht, down four satang,in trade worth 7.26 million baht.
Tuesday, September 1, 2009
Recovery in China gains momentum
China's manufacturing activity expanded in August at its fastest pace in 16 months, two surveys released yesterday showed, signalling the world's third-largest economy is stabilising.
The Purchasing Managers Index, or PMI, published by the China Federation of Logistics and Purchasing rose for a sixth consecutive month in August to 54.0, up from 53.3 in July.
The HSBC China Manufacturing PMI, an independent reading compiled by British research firm Markit Group Ltd rose to 55.1 in August from 52.8 in July.
A reading above 50 means the sector is expanding, while a reading below 50 indicates an overall decline.
"August PMI's continued to increase slightly, indicating China's economy will maintain the upward momentum,"Zhang Liqun, an economist at the State Council's Development Research Centre, said in a statement.
Of 20 industries surveyed, only the textile and pharmaceutical industries contracted last month, the federation said.
More than a fifth of managers at 727 businesses interviewed reported a rise in imports, including raw materials,after five consecutive months of decline,it added.
"The domestic demand driving China's economic recovery is further strengthening," the federation said.
"Exports are recovering but still face uncertainty," it said. The August new export order index was 52.1, flat from the previous month. Although the index has been above 50 for four months,growth has been weakening.
"The forward-looking components of PMI indicate continued expansion in both domestic and export demand,"Jing Ulrich, J.P. Morgan's managing director and chairman for China equities, said in a research note.
China's economy expanded by 7.9%in the second quarter, up from 6.1% in the first quarter, mainly as a result of massive government spending amid the global downturn.
Beijing announced a four-trillionyuan ($585-billion) stimulus package last year in a bid to prop up growth in the country by boosting investment in infrastructure and other governmentbacked projects.
"Beijing will continue to withdraw some of the stimulus that has done its job - lending and infrastructure spending - and is no longer needed. We will not see any measures designed to slow economic growth," Andy Rothman, a Shanghai-based economist at the CLSA brokerage, said in a note.
"In other words, no 'tightening'."The PMI sank to a record low of 38.8 in November as the global financial crisis took hold, but improved continuously in the following months, moving above 50 in March.
Manufacturing accounted for more than 40% of the economy last year in China, which has been hit hard by evaporating demand for its products in key export markets such as the United States and Europe.
The PMI data had little effect on the market as investors had expected an improvement, traders said.
The Shanghai Composite Index,which covers A and B shares, rose 15.98 points to 2,683.72 on turnover of 101.7 billion yuan ($14.9 billion). The key index plunged 6.74% on Monday.
The Purchasing Managers Index, or PMI, published by the China Federation of Logistics and Purchasing rose for a sixth consecutive month in August to 54.0, up from 53.3 in July.
The HSBC China Manufacturing PMI, an independent reading compiled by British research firm Markit Group Ltd rose to 55.1 in August from 52.8 in July.
A reading above 50 means the sector is expanding, while a reading below 50 indicates an overall decline.
"August PMI's continued to increase slightly, indicating China's economy will maintain the upward momentum,"Zhang Liqun, an economist at the State Council's Development Research Centre, said in a statement.
Of 20 industries surveyed, only the textile and pharmaceutical industries contracted last month, the federation said.
More than a fifth of managers at 727 businesses interviewed reported a rise in imports, including raw materials,after five consecutive months of decline,it added.
"The domestic demand driving China's economic recovery is further strengthening," the federation said.
"Exports are recovering but still face uncertainty," it said. The August new export order index was 52.1, flat from the previous month. Although the index has been above 50 for four months,growth has been weakening.
"The forward-looking components of PMI indicate continued expansion in both domestic and export demand,"Jing Ulrich, J.P. Morgan's managing director and chairman for China equities, said in a research note.
China's economy expanded by 7.9%in the second quarter, up from 6.1% in the first quarter, mainly as a result of massive government spending amid the global downturn.
Beijing announced a four-trillionyuan ($585-billion) stimulus package last year in a bid to prop up growth in the country by boosting investment in infrastructure and other governmentbacked projects.
"Beijing will continue to withdraw some of the stimulus that has done its job - lending and infrastructure spending - and is no longer needed. We will not see any measures designed to slow economic growth," Andy Rothman, a Shanghai-based economist at the CLSA brokerage, said in a note.
"In other words, no 'tightening'."The PMI sank to a record low of 38.8 in November as the global financial crisis took hold, but improved continuously in the following months, moving above 50 in March.
Manufacturing accounted for more than 40% of the economy last year in China, which has been hit hard by evaporating demand for its products in key export markets such as the United States and Europe.
The PMI data had little effect on the market as investors had expected an improvement, traders said.
The Shanghai Composite Index,which covers A and B shares, rose 15.98 points to 2,683.72 on turnover of 101.7 billion yuan ($14.9 billion). The key index plunged 6.74% on Monday.
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