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The economy is expected to grow by 2.75-3.25 per cent this year, with the hope of a gradual recovery next year, given difficulties in nearly all economic drivers including domestic consumption, private investment, state expenditures and exports, according to the Thailand Development Research Institute.

Nonarit Bisonyabut, a TDRI research fellow, said there were major concerns over the very high level of household debts, at 85-90 per cent of gross domestic product, which could rise rapidly and affect the country’s economic and financial stability amid the slowdown.

He urged the government to enhance state investment efficiency, accelerate the disbursement of the state budget, and regain investors’ confidence.

PTT divestment

PTT’s board of directors has approved its subsidiary PTT Green Energy Co’s disposal of its entire investment in shares in Az-Zhara, a palm-oil business in Indonesia, the company reported to the Stock Exchange of Thailand yesterday.

PTT holds shares, directly and indirectly in Az-Zhara, through PTT Green Services (Netherlands), Sabran Brothers and others the local partner in the amount of 99.98 per cent. 

 The deal will be completed within September 2015.

The disposition of PTT’s entire investment in Az-Zhara is in line with PTT Group’s restructuring policy.

The total value of the transactions is US$6.8 million (Bt230 million).

Handling fee frozen

Shippers and freight companies have agreed to freeze their terminal handling charge (THC) after the Thailand Development Research Institute (TDRI) found that the fees requested by freight firms did not reflect their real costs.

Santichai Santawanpas, deputy director-general of the Commerce Ministry’s Internal Trade Department, said the department’s working committee, shippers, and freight companies had agreed to keep the same THC as last year.

The result came after the ministry assigned the TDRI to study the issue. The study found that the freight companies should not increase the THC unreasonably. It should include only cranes, stevedorage, wharfage charges, fuel charges, and storage. Freight companies should exclude such things as gate charges and cleaning, life on and life off. Any further increases should be agreed by shippers and freight companies.

For now, the THC has been frozen at Bt2,800 per twenty-foot-equivalent unit and Bt4,100 per forty-foot-equivalent unit.