COMPETE ON QUALITY, NOT PRICES, ASEAN COUNTRIES TOLD

By D. Arul Rajoo

BANGKOK, Feb 16 (Bernama) -- Thai Finance Minister Korn Chatikavanij said
Asean countries, being competitors when it comes to exporting goods, should not
compete in terms of prices.

He said member countries need to rely on each other as they compete in terms
of quality and not prices which would benefit buyers in non-Asean countries.

He told the Nation daily in an interview that he would ask his Asean
counterparts who would gather in Phuket on the weekend, on the need to boost
intra-Asean consumption in the wake of the economic slowdown and slower exports.

"At the meeting (in Phuket), we shall exchange experiences in all aspects,
as many are suffering from the same problem, a plunge in exports," said Korn, a
graduate of Oxford University who co-founded the JF Thanakom Securities at the
age of 24 before becoming chairman of JP Morgan (Thailand).

Finance Ministers from the 10-member regional grouping will gather for a
special meeting in Phuket to deliberate on the current economic crisis and make
recommendations to their Leaders who will attend the Asean Summit from Feb 27 to
March 1.

Asked about Thailand's foreign exchange rate, Korn said as an open
economy relying heavily on exports and the current tight condition, the
pricing issue was important and he wants it to reflect the country's ability to
compete.

The minister said he expects tax revenue shortfall of Bt100 billion (US$1=
Bt35.44) in 2009 from the Bt1.58 trillion target and a very small revenue
increase in 2010.

Korn also said he would focus on large state enterprises
with the emphasis on the restructuring of boards of directors and on
organisational restructuring.

On the country's national carrier, Thai Airways International, Korn said the
board has agreed to abolish special privileges while benefits being enjoyed by
members of parliament would be afffected.

"They can fly free from their homes to Bangkok to attend parliamentary
sessions, but not on leisure trips with their families," said Korn, who wants
the airline to stand on its own feet and clear all irregularities.

Furthermore, he said, Thai Airways needs to buy new aircraft as the high
ratio of old aircraft, 20 percent of the fleet are in the maintenance centre,
but also pointed to the purchasing which reeks of conflict of interest and the
wrong types of aircraft.

-- BERNAMA