What's new in business news: September 13, 2013
Bangkok flood tunnel contract signed, growth in G20 countries accelerates & export growth strategy must go, says UN report.
Bangkok flood tunnel contract signed, growth in G20 countries accelerates & export growth strategy must go, says UN report.
MR Sukhumbhand stands in the new Rama IX-Ramkhamhaeng water drainage tunnel which was officially opened in February 2011 and channels flood water from Saen Saep and Lat Phrao canals into the Chao Phraya River. Photo by Somchai Poomlard
FLOOD MANAGEMENT
Bangkok flood tunnel contract signed
The Bangkok Metropolitan Administration (BMA) has signed 2.4 billion baht in contracts for the building of a huge new drainage tunnel to help end flooding in the six inner districts of Bangkok. The contract signing was presided over by Bangkok Governor MR Sukhumbhand Paribatra. The construction will take about three years with the earliest date for completion September 2016.
The 6.4km Ratchada-Bang Sue flood tunnel will have a width of five metres and be 20m underground and drain water from major roads in six districts -- Huay Khwang, Din Daeng, Chatuchak, PhayaThai, Dusit and Bang Sue. The tunnel will improve drainage from low-lying areas where there is only limited capacity to release flood water into the Chao Phraya River and will run from Ratchadapisek Road to Lat Phrao canal, then run along Bang Sue canal and meet the Chao Phraya River at Wat Kaew Fah in Dusit district.
The BMA has also planned to construct two other large drainage tunnels - a 9.4km tunnel in Nong Bon Pond for the East of Bangkok and a 13.5km tunnel on Prem Prachakorn canal in the West of Bangkok.
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ECONOMY
Growth in G20 countries accelerates
12/09/2013
Growth in the Group of 20 emerging and advanced economies accelerated in the second quarter of this year to 0.9% from 0.6% in the previous three month period. Most G20 members saw growth pick up momentum in April through May.
Turkey posted the highest quarter-on-quarter expansion of 2.1%. China had a marginal increase to 1.7% growth, Brazil followed at 1.5%. Developed nations Britain, Germany and the United States all saw growth rise to 0.7%, while France exited recession with 0.5% growth. Growth slowed marginally in Japan to 0.9% and in Canada to 0.4%. Italy's contraction narrowed to 0.3%, while Mexico went from a flat reading in the first quarter to a 0.7% contraction.
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INVESTMENTS
Global economy cannot support export strategy
An export-led economy is no longer a viable strategy for developing nations such as Thailand, says this year's Trade and Development Report from the UN Conference on Trade and Development (Unctad).
The global economy can no longer support pre-2008 growth strategies, so policymakers in developing countries should move away from wage and export competition. Instead, they should focus on strengthening domestic and regional demand.
Domestic demand must be spurred by boosting the number of middle-class consumers and their purchasing power without increasing household debt. The report advocated an enhanced central bank role through support for productive investment in infrastructure and industries. Small and medium-sized enterprises (SMEs) and new businesses should be supported, as these play a major role in boosting employment and productivity. In the long run, this will simultaneously raise household purchasing power and productivity.
The report also cautioned against excessive reliance on foreign investment inflows since this leads to consumption and speculative investment which in turn leads to a bubble which eventually bursts and affects the whole economy.
The direction of global trade is shifting towards intra-regional trade. Countries with smaller populations such as Thailand need Asean more than ever to boost regional trade.
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