List of contents

Thailand
Facts & Figures

Economy

   - Unfinished business
   - Jury out on populism
   - Making the most
     of state assets

   - The privatisation
     delemma

Two Views
   - Assessing
     Thaksinomics

   - Growth at any cost?
Finance & Markets
   - The next wave
      of change

   - Building a better market
   - No bubble yet
   - TAMC confounds
      its critics

Investment
   - Quality over quantity
   - The competitiveness
      challenge

Property
   - Bubbly, but not bursting
   - Home for the masses
Agriculture
   - Breaking the trap
      of poverty

   - Policy agenda
      interrupted

Industry
   - Back on track
   - Keeping the vows
   - Electrical and
     electronics
     sector upbeat

   - Petrochemicals riding
      the up cycle

   - The boom in building
   - SMEs in the spotlight
International Trade
   - Caught up in FTA
      mania

   - Thaksin: A new
     regional leader?

Energy
   - One step forward,
     two steps back

   - Privatisation grinds
     to a halt

Telecommunications
   - Public good and
     private interest

   - Convergence
     is at hand

   - Bargain-hunters'
     delight

Tourism & Aviation
   - More challenges
     lie ahead

   - Dogfight in
     the open skies

Health Care
   - Dual-track system
   - Insurance
     industry adapts

Human Resources
   - Back to the classroom
   - Some signs of progress
   - Joining the ranks
     of the unemployable?

Retailing
   - Enter the giants
   - Surviving the onslaught
Media & Entertainment
   - So much for reform
   - Lights, camera...
     inaction

   - Advertising thriveing


MEDIA

Lights, camera ... inaction

Bamrung Amnatcharoenrit

Thai movies have become more widely accepted abroad.
ALTHOUGH THE Thaksin government has set an ambitious goal of transforming the local entertainment industry into a regional hub for movie production and post-production, the plan remains a distant mirage for lack of a concrete action plan.

Up until recently, the entertainment industry had drawn relatively less attention from governments compared with other sectors, which had been pampered with tax incentives to attract investors, even though the industry had been among the country's money-spinners, especially from content exports.

With the establishment of a new Tourism and Sports Ministry in October 2002, the promotion of foreign film production in Thailand has become one of the major goals of the government. But nothing has been done much to achieve that goal.

It was not until 2004 that a meeting was held, led by the Culture Ministry and attended by representatives from the movie industry and relevant ministries, to determine a course of action. The meeting resolved to establish a central Motion Pictures Council to oversee the entertainment industry and set a clearer direction for it.

Its main tasks are to ensure sustainable growth for the industry, provide financial aid for producers, facilitate content exports and help deal with copyright violation problems. As well, the 74-year-old law governing the movie industry will be revised.

In June 2004, another good sign emerged when the Board of Investment (BoI) backed a movie production proposal worth US$200 million by RGM Holdings from Austria by offering tax incentives to produce 22 movies in Thailand over the next seven years.

Kantana Group Plc, the country's leading entertainment group, was a strong promoter of the project and helped set up a meeting between RGM executives and Prime Minister Thaksin Shinawatra. Kantana also agreed to earmark 400 million baht for the project.

The project would certainly bring benefits to the local film industry, but producers believed it would not be substantial enough to put Thailand onto the world's movie map. The government needs to do many things over many more years in order to establish a strong framework, especially outlining a clearer policy.

More than 50 Thai films are projected to be released in 2004 to serve the growing number of theatres.

Thai movies have also become more widely accepted abroad. Among the most successful films of the year was Sud Pralad (Tropical Malady), directed by Apichatpong Weerasethakul, which won the Jury Prize at the 57th Cannes Film Festival, the first Thai fim to receive such recognition.

Other Thai films that became quite popular abroad include Ong Bak, about Thai boxing, and the transvestite volleyball comedy Iron Ladies II , which enjoyed box office success in Singapore, Hong Kong and others.

A major turning point for the film industry came this year when three film production houses _ GMM Grammy Plc, Tai Entertainment Co, and Hub Ho Hin Bangkok Co _ decided to form a joint venture, GMM Tai Hub Co (GTH), to produce 10 films a year.

"For the industry, the direction now is toward long-term growth. Fewer films will be made, but they will be more professionally done. Established studios will develop screenplays, manage distribution, and hire staff with a clearer direction," said Visute Poolvoralaks, GTH's chief executive officer.

Kantana Group, meanwhile, is preparing to list on the Stock Exchange of Thailand this year. Early in 2004, the company also announced its first big-budget animated film, Khan Kluay, in collaboration with the Information and Communications Technology (ICT) ministry and some Hollywood talent, with a budget of more than 100 million baht. The movie will debut locally and in other markets in Asia in April 2005. Kantana currently is constructing its Movie Town on an 869-rai plot in Salaya district in Nakhon Pathom. The new establishment comprises an outdoor sound stage, pre- and post-production studios and a university that will offer courses such as movie production and broadcasting.

Investment in the entertainment industry will continue in the future. But if the government fails to come up with solid support and more constructive ideas for the industry, its ambition for Thailand to become the Hollywood of Asia will likely be frustrated.


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