New tax tools for flood victims and employees

A lot of effort has gone into promoting various tax incentives to encourage people and businesses to make charitable donations to help those affected by Thailand's severe flooding.

 If the donation is made by an individual, a special deduction of 150% of the amount to a recognised charity is allowed, but not exceeding 10% of taxable income after deductions in total. If the donor is subject to corporate income tax, a deduction of 150% of cash and asset donations is allowed, but it may not exceed 2% of net taxable profit.

Since the donation amounts are capped, corporate donors are likely to limit their pledge to their deduction ceiling. An alternative being discussed is to allow an employer to help its employees who have been affected by the flood. The support can be in the form of cash for food, hotel or apartment accommodation during evacuation.

The main problem under the current tax regime is that there is no clear exemption for employees who receive a subsidy from their employer, which may be treated as a fringe benefit that is taxable.

An interpretation can be made that the subsidy is "income derived from maintenance and support under moral purposes, or gift received in a ceremony or on occasions in accordance with custom and tradition", which is tax-exempt pursuant to Section 42 bis (1) of the Revenue Code. 

Unfortunately, relying too much on this exemption could expose employers to an audit on the tax deductibility of such payments for corporate income tax calculation.

The solution for the government is quite simple. It should enact a special exemption from personal income tax similar to the existing healthcare support (medical expenses paid by an employee and reimbursed by an employer) under Section 42 (17) as well as Ministerial Regulation No. 126. 

This channel will automatically allow employers to claim that such expenses are incurred in relation to the employees' welfare and are tax-deductible under the normal rules of the tax law.

The more difficult part is to determine the criteria and conditions for employees to qualify. The exemption should be granted to all employees who are really suffering from the flood.

The Finance Ministry stated that companies operating in industrial zones that are affected by the flood will receive import tax waivers to replace damaged machinery, and possibly on raw materials also.

As some machinery and equipment is heavily damaged and will need to be replaced or repaired, Departmental Instruction No. Por. 58/2538 provides guidelines for companies to deduct the residual cost value of an asset that is lost or becomes defective. 

The companies are not allowed to deduct the residual cost as a tax expense where machinery becomes defective beyond repair if it is still in its possession. 

Only where such machinery is destroyed or sold at a loss can its residual cost be tax-deductible and the companies need to include the selling price as income subject to normal corporate income tax and VAT. This requirement will definitely add more of a burden to suffering companies as it will likely take a while before they can sell damaged assets.

Also, money spent by companies to fix assets may or may not be tax-deductible, depending on whether or not such expenditure repairs the assets back to their original ability or improves the usability of the assets. In the former case, the companies will be entitled to write off the repair cost immediately. 

As some companies may never see profits over the next five years, writing off the entire amount of the repair costs as a carried-forward tax loss will not help them from a tax standpoint.

If the money spent improves the quality of the assets from their condition before the floods, the law treats that expenditure as an addition, alteration, extension or improvement of properties, which is a capital expenditure for the tax purposes and must be amortised as if they were new assets.

Again, you will find that companies that can recover and return to profitability quickly will prefer an immediate write-off to amortisation deduction.

Due to wide disparities in companies' ability to recover from the disaster, policymakers should discuss how best to assist them and whether special cases should be approved. Of course, measures to prevent abuse must be considered.

Industry groups are also demanding that the government extend the period for tax losses, which currently can be carried forward only five years. 

The government appears to be discussing extending the deduction to seven years. Although prolonging the loss period is a good idea, it would be perfect if the government studied the possibility of implementing the loss carry-back in the Revenue Code at the same time.

Indirectly affected firms join chorus of requests for assistance

It is not only businesses directly affected by the flood that require state assistance, as indirectly affected businesses also want special government treatment such as tax benefits, note business leaders.

Alan Lim, chairman of the Singapore-Thai Chamber of Commerce, said the Board of Investment (BoI) in particular should provide tax benefits to indirectly affected businesses.

"Deputy Prime Minister Kittiratt Na-Ranong said that incidents like these will not be repeated in the future, because Thailand will build strong dykes and the canals will drain water at a faster rate," Mr Lim. "But some of our members have noted there is not a large amount of information in English provided by the media."

Mr Lim, who is also vice-president of fabrication sales at Foamtec International Co Ltd, said damage at his company totals 400 million baht, as it ships products to Western Digital, Seagate and Toyota, which have stopped operating.

Foamtec's plant in Malaysia had to stop operations because of a lack of suppliers.

The company has three factories, with the one in Hi-Tech Industrial Estate in Ayutthaya already shuttered.

The other two plants, operating at 40% capacity, are located in Amata Nakorn Industrial Estate and Laem Chabang.

Although the company is still paying a salary to its 2,000 employees, Mr Lim said he will reassess the situation next month.

"We are still confident of [investing] in Thailand in the future due to the workforce and location. Thailand will become the centre of the Asean Economic Community once it is formed," he said.

"In every crisis there is an opportunity. For instance, the construction industry was booming in Japan after the tsunami, and we expect Thailand will have an infrastructure boom as well that will help the surrounding economies."

Anurat Khokasai, marketing and chief operating officer of Prantalay Marketing Co, proposed the Export Promotion Department cooperate with relevant state agencies on measures to stimulate exports, including tariff waivers on machinery imports to expedite recovery.

"One of the crucial components of exports is raw materials, which remain stranded at ports en masse. The government needs to assign the Port Authority of Thailand to accelerate clearing off those stranded raw materials as soon as possible and extend financial aid or packing credit to these operators," said Mr Anurat.

The BoI approved three measures yesterday: a waiver of import duties for machinery to replace those damaged by the flood, but eligible participants must expand their capacity; an agreement in principle to reduce the corporate income tax from 30% for flood victims; and the delay of the ban on migrant labour for BoI-promoted companies until May.

In a related development, Industry Minister Wannarat Channukul said he will propose four rehabilitation measures to the cabinet today for approval.

The measures comprise 50 million baht to set up evacuation centres, 22 million baht for environmental and waste management in inundated factories, 25 million baht for examining soil, water and hazardous chemicals in factories and 15.84 million for assistance in draining water out of industrial estates.

Phongsak Assakul, chairman of the Joint Standing Committee on Commerce, Industry and Banking, said Thailand will postpone to next year a meeting of the Japan-Thailand Joint Trade and Economic Committee originally scheduled for Nov 28.

"The Japanese want to know our rehabilitation plans and want reassurances [to bolster confidence]," Mr Phongsak said.

Mr Phongsak, also chairman of the Thai Chamber of Commerce, said after seven industrial estates were inundated, the government should prevent water from entering the other estates and Bangkok, the logistics hub of the country.

Post-Flood mortem

Exercise caution when first re-entering your home once the floodwaters subside and inspect all systems to make sure they are up to snuff

Rubber boots are becoming ever more of a necessity to keep you dry during knee-deep inundations _ and to stay alive once the floodwaters recede. Be sure to wear them when re-entering your home as a safeguard against being electrocuted.

Winyou Wanichsiriroj, an executive committee member of the Association of Siamese Architects, strongly recommends that homeowners not switch on the circuit breaker immediately upon entering.

They should first check all the electrical sockets that had been submerged by removing the socket masks to make sure it is completely dry inside.

"Before working with the socket, you should use a tool that tests the electric current. Don't go back to your home and hurry to switch on the circuit breaker. You may have to stay in the dark for another day to ensure the power system is dry. It's better to be more cautious than usual," said Mr Winyou.

If the circuit breaker was also submerged, then a homeowner with no knowledge of electricity should have a technician examine the system.

Also essential are the water and sanitation systems, and Mr Winyou suggests cleaning these by running the taps for a while to release the dirty water.

Toilets should be able to function normally as soon as the water recedes, but it would be best to empty the septic tank for a fresh start. "Even though toilets can be used as soon as the flooding is over, the remaining bacteria in the septic tank will make it harder to dissolve the waste," he said.

As for household structures, concrete buildings can generally withstand flooding for lengthy periods. Owners must check whether they can see the piles. If they can, then there is a danger the house could subside, so repairs are needed.

For wooden houses, it may be that only wood stain needs to be applied to protect the wood but only after the building has completely dried.

Flooding may have become a new permanent risk in many areas, so people may want to think about renovating their homes to allow them to live there during times of high water.

Prevention is technically feasible, but cost depends on the level of protection _ whether people want to be protected starting out at the property line, inside the house or only the upper floors.

If flood victims want to live on an upper floor during flooding, then a working toilet system is of the utmost importance. A second septic tank must be installed above ground level.

A standalone circuit breaker for each floor must be installed, and a backup electricity generator is needed for power outages. A water storage tank should also be kept upstairs.

For those wanting to remain on the ground floor, valves must be installed in all drains to cut the link between the home and the public sewage system.

However, protecting the house all the way from the garden wall would be practical only for new homes, as they would have to be built on a swimming pool foundation. "The foundation and the property wall must both be made from reinforced concrete in order to withstand the water pressure. Without the proper foundation, water will come up from your lawn," said Mr Winyou.

"But whatever you do, it's a big investment, so people must think hard about what they actually want."

Free rice seeds for farmers

The Rice Department will distribute 72,100 tonnes of rice seeds worth 1.72 billion baht to assist flood-affected farmers.

The latest survey by the Agricultural Extension Department found that 9.01 million rai of rice paddies nationwide have been flooded during the past three months, with 7.21 million rai suffering damage, said Chairit Damrongkiat, the Rice Department's director-general.

To relieve the suffering of farmers in affected areas, the government will distribute free seeds at a proportion of 10 kilogrammes per rai.

Mr Chairit said the distribution will extend from this month until next July, with the first allocation of 33,166 tonnes meant for planting right after the floodwaters recede.

The remaining 38,934 tonnes will be used for the main 2012 crop.

"The seeds can yield 3.2 million tonnes of paddy and generate more than 55 billion baht in farm income. Plus the harvested paddy can be replanted in the following season," said Mr Chairit.

Eligible farmers must be registered with the Agricultural Extension Department and have suffered damage to more than half their farmland. Seed distribution will be limited to 10 rai per farmer.

Mr Chairit said his department has sent out 50 teams to educate farmers on post-flooding treatment of their land and check how the 2,015 rice communities have been affected.

Hard-hit communities can receive up to 3 tonnes of rice seeds.

The Agriculture Ministry said the floods could cut 3.5 to 4 million tonnes of paddy from previous estimates, while the Bank for Agriculture and Agricultural Cooperatives (BAAC) believes the total loss could amount to 4.5 million tonnes.

Morakot Pitharat, a BAAC executive vice-president, said 427,561 customers with total outstanding debt of 41.3 billion baht have been hit by the floods.

These customers cultivate 5.3 million rai of rice, 570,000 rai of other crops, 46,934 rai of fisheries and 109,000 heads of livestock and poultry.

Thirty-two customers owing a combined 2 million baht died from the flooding, and the BAAC will write off debt.

It will also suspend debts for three years while providing loans of up to 100,000 baht for each customer to get back on his feet and 30,000 to 50,000 baht for house repairs.

Mr Morakot said the BAAC will also offer skills training for its customers to prepare them for post-flooding rehabilitation demand in Bangkok.

Froc sends City Hall new batch of pumps

The Flood Relief Operations Command will speed the delivery of many more water pumps to City Hall to help it drain floodwater from the capital.

The move follows the Bangkok Metropolitan Administration's (BMA) plan to drain floodwater out of all swamped main roads in Bangkok in a fortnight.

Earlier, Bangkok Governor Sukhumbhand Paribatra had asked for additional water pumps from the Froc which promptly sent 24 pumps to the BMA.

Deputy Prime Minister Pracha Promnok, who is also Froc director, said yesterday the Froc had decided to earmark about 50 million baht to buy 48 more water pumps capable of pumping water at 96 cubic metres per second. Installation of the pumps should be completed within the next 15 days.

Pol Gen Pracha also said there are an additional 17 pumps from the Department of Public Works and Town & Country Planning and six pumps from the Ministry of Natural Resources and Environment with the capacity to pump out water at 30 cu m/s and 6 cu m/s, respectively, both scheduled to be installed within the next seven days.

The Froc has gathered a total of 71 additional pumps from the original request of 60 pumps by the BMA. Total capacity would be 132 cu m/s, he said.

Pol Gen Pracha said there were also another 255 pumps donated by China. Installation would take 15 days.

"We [Froc and BMA] have to unite and consult each other in order to protect Bangkok from being completely inundated. Everyone can rest assured that the Froc and BMA are working together closely," he said.

Jumpol Samkaopol, deputy city clerk of BMA, said he is confident the new pumps from Froc will be sufficient and they will be placed at 41 pumping stations around the Phra Nakhon side (east of Chao Phraya River). The capacity is 600 cu m/s or 40 million cu m/day.

He said some pumps might be broken at the moment because of non-stop usage for two straight months and some pumps would need to be switched with the 71 pumps from Froc. 

About 500 donated pumps from China would be used to increase the capacity along the Chao Phraya River.

The BMA had also collaborated with the Froc in constructing floodwalls to stem the northern flow. If the floodwalls are completed, it would be easier to control water entering Khlong Song, Khlong Thanon and Khlong Lat Phrao which would allow lower Bangkok to be drained more quickly, he said.

Mr Jumpol said the pumps need to be used together with dykes and barriers to function properly. The dykes were there to help drain the area inside the dykes quicker.Cooperation from people would allow the pumps from Froc and China to drain water more effectively.

MR Sukhumbhand thanked Froc for responding to his call for more pumps.

He said the Froc's sending of water pumps had doubled the BMA's capacity to drain floodwater out of the capital.

He hoped the "big bag" barrier would help prevent another mass of floodwater from entering the city.

Prime Minister Yingluck Shinawatra said she believed the floodwaters would recede from the city within the next two to three weeks based on information given at a Water Management Committee meeting yesterday.

She insisted the Froc headquarters would remain at the Energy Ministry regardless of the rising flood level.

"We don't want to keep running from the water. We have to learn to live with it and do our best," she said.

Tourists scared off by deluge

CHON BURI : Bangkok's flood crisis is taking its toll on tourism in the eastern provinces, with many foreign tourists cancelling their bookings.

Chon Buri's Pattaya has been hit hardest by the floods.

"Pattaya is probably feeling the greatest impact, as many tour groups from Hong Kong, China, South Korea and India have postponed their visits," said Chatchawal Supachayanont, general manager of the Dusit Thani Hotel Pattaya.

Mr Chatchawal said the hotel was now suffering the impact of the flood crisis as room bookings for December and January were down sharply from the same period in previous years.

"Foreign tourists are in a mind of waiting and seeing. I expect it will affect tourism only in the short term," he said.

However, if the floods do not recede soon, it would certainly affect the long-term confidence of foreign visitors, Mr Chatchawal said.

He said foreigners fear that many restaurants and shops will be closed, making their stay uncomfortable.

Since the floods hit Bangkok roughly three weeks ago, many city residents have fled their swamped homes to the eastern provinces of Chon Buri and Rayong because they are a short drive from Bangkok.

Mr Chatchawal said Pattaya especially was drawing many Bangkokians, boosting the number of local visitors to higher levels than in the same period last year.

Mr Chatchawal said though the number of Bangkokians visiting Pattaya could compensate for fewer foreign visitors to a degree, their stay in the seaside city will not generate as much money as foreign visitors would, especially as Thailand enters its tourism high season.

"People who come here now are not in the mood to spend their money on sightseeing or anything that will help spur the local economy," he said.

Attapol Wannakij, chief of the Tourism Authority of Thailand, Chon Buri office, said the floods in Bangkok have also hurt tourism in other provinces.

"At least 10-15 percent of foreign tourists cancelled their visits after learning Don Mueang airport was submerged," he said.

The political cost of a natural disaster

ANALYSIS: The govt faces mounting pressure as critics savage its flood response efforts

The Yingluck Shinawatra government is falling out of public favour because of its handling of the country's flood crisis.

The government was sworn into office in early August, unaware that the first major test of its resoluteness was already creeping up on it _ the worst disaster in 50 years.

The cabinet seats were barely warm when a vast ocean of water built up in the northern provinces and began a steady march on central Bangkok, ravaging all provinces from the North to the Central Plains along the way and bringing death and destruction on a scale no one could conceive of.

Today, with the disaster far from over, the government is already counting the cost not just of the damage and clean up, but the effect on its standing among the population. Its declining popularity is reflected in a recent Suan Dusit poll in which 46.9% of respondents said it had failed its first test and was ill-prepared.

Like the districts still untouched, the pressure is bearing down on Ms Yingluck from all sides.

In hindsight, she had ample time in early August to brainstorm ideas from experts to mitigate the impact of floods in the North and the Central Plains and deal with the threat to the capital.

In reality, little could be done for many of the provinces north of Bangkok, such was the extent of the deluge. Yet she and her cabinet cannot avoid responsibility for the catastrophe.

Their responses is perceived as tardy and lacking an offensive approach.

By the time floodwater began to swamp Ayutthaya, the sense of urgency to protect Bangkok needed no elucidating _ it was real.

But flood prevention lines were built belatedly and additional water pumps procured only after the situation turned critical.

Flood management and relief efforts have been rendered ineffective by a lack of coordination among state agencies and politicians engaging in finger-pointing and the blame game.

Sombat Thamrongthanyawong, rector of the National Institute of Development Administration (Nida), said crises always prove a government's worth, and if it can keep damage to a minimum it can win the recognition of the public.

Mr Sombat said that since the flood disaster began, the government has been defeated on every front.

Even though the crisis has been hard to predict, the onus is on the government to gather input from professionals and experts, not amateurs, to ensure accurate data and come up with the right solutions, Mr Sombat said.

He stressed it is important to put the right man in the right job and not deal with problems as they crop up.

He noted the Interior Ministry, which has the largest number of personnel and vast amounts of manpower at every level of government across the country, was not put in charge of flood relief. Instead, the job was offered to the Justice Ministry, which Mr Sombat says is not suited to the task.

But Ms Yingluck has an ally in Bangkok Senator Rosana Tositrakul, who has voiced her disagreement with calls for the PM's resignation.

She urged the government to focus on tackling the floods rather than trying to thwart political side-issues.

Ms Rosana said Ms Yingluck cannot not be held responsible alone, rather all those involved in flood management should take collective responsibility, and if anyone is to be replaced, then they all should be replaced.

Military spearheads cleanup

The Defence Ministry will be one of the core agencies dealing with post-flood rehabilitation efforts.

Plans to restore flood-damaged properties and infrastructure will be made so when the flood subsides, each agency will know immediately what they have to do, Defence Minister Yutthasak Sasiprapa said after meeting with the Royal Thai Armed Forces on Sunday.

He expected the plans to be finalised within three days and forwarded to Prime Minister Yingluck Shinawatra for approval.

The premier has stressed the importance and resources of military personnel will be needed to handle flood problems.

Up to 60,000 members of the military are working with government officials in flooded areas. The armed forces will also help support flood relief operations by using their 3,000 vehicles and nearly 5,000 boats.

The source said the ministry may offer to cut up to 10% of its annual budget for the next fiscal year to help the government meet flood relief expenses.

The Defence Ministry budget amounts to about 200 billion baht; the next fiscal year starts on Oct 1.

However, army chief Prayuth Chan-ocha said the army is ready reduce its funding to help flood victims, though this will affect its plans to repair and acquire new military equipment and armaments.

Meanwhile, Gen Prayuth has ordered military camps nationwide to produce and distribute EM (effective micro-organism) balls to treat polluted floodwater and teach people how to use them to solve water problems at home.

Charity night for flood victims

Believing "1" to be its lucky number, Nova Platinum Hotel in Pattaya will hold a charity gala dinner to raise funds for flood victims for which the auspicious date is 11.11.11, and the tickets too are priced at 1,111 baht per person.

Magician and comedian Dr Penguin is among the entertainers at the Let’s Help Thai Flood Victims charity gala dinner at Nova Platinum Hotel Pattaya on Friday.

Themed "Let's Help Thai Flood Victims," the evening kicks off at 6:30pm with dinner paired with fine wine and entertainment provided by noted magician and comedian Dr Penguin, master of martial arts Sifu Mark Gerry, and Tiffany's cabaret show.

Among the celebrities are Miss Tiffany 2011 _ Nong Sammy, singer-actor Nitichai "Yuan" Yosamornsunthorn of the band Dragon 5, and Christopher Moore, author of Hemmingway of Bangkok. The book will be on sale and Moore will be happy to sign them off.

Proceeds from the event will go to the Onyx Hospital Group and the Raks Thai Foundation.

Flood-relief budget gets committee OK

The committee on economic rehabilitation yesterday approved a budget of 11 billion baht to pay 5,000 baht each to 2.28 million flood-affected households.

Kittiratt: Tax cut is still standing policy

Also, an initial 112.8 million baht will be allocated to the Industry Ministry to rehabilitate industrial parks. The ministry had asked for a total of 7 billion baht.

Deputy Prime Minister Kittiratt Na-Ranong said the ad-hoc committee chaired by Areepong Bhoocha-Oom, the permanent secretary of the Finance Ministry, was established to speed screening for projects proposed by state agencies.

He said the screening committee was maintaining the government's policy to cut corporate income tax to 23% next year, in contrast to a proposal by the Joint Standing Committee on Commerce, Industry and Banking to delay the tax cut and spend the amount on flood relief.

However, Mr Kittiratt said the government welcomed the willingness of private companies to support such a relief fund for flood victims.

Phayungsak Chartsutipol, the chairman of the Federation of Thai Industries (FTI), said half of the 112.8-million-baht budget would be allocated to temporarily shelter workers, 22 million to clear out industrial waste, 25 million to check water quality and 15.8 million to drain water from industrial estates.

The FTI is concerned about the threat of damage to over 5,000 small and medium-sized enterprises west of Bangkok. They have begun moving machinery to higher ground.

The cabinet today will consider rehabilitation measures to be fulfilled in a year and covering aid to ordinary people, farmers and entrepreneurs.

Anuttama Amornvivat, a deputy government spokeswoman, said the proposal gives flood victims 30,000 baht for complete damage, 20,000 baht for partial damage and 10,000 baht for asset damage. The amount is expected to total 11 billion baht for 2.28 million households.

The state-run banks will offer 30 billion baht in loans for house repair.

Farmers will be allowed compensation based on previous rules. The Bank for Agriculture and Agricultural Cooperatives is offering 30 billion baht in soft loans for business rehabilitation and debt suspension for three years for farmers.

For SMEs, the government plans 500 million baht to restore factories and 30 billion baht in soft loans.

Suwannee Khamman, the deputy secretary-general of the National Economic and Social Development Board, said the cabinet would also consider measures to help workers.

Entrepreneurs have assured the government that they will retain employment by paying workers 75% of their salary

Officials investigate relief supply prices

The Flood Relief Operations Command has set up a panel to investigate allegations that relief supplies it acquired for flood victims are overpriced.

The seven-member committee, chaired by permanent secretary for commerce Yanyong Phuangrach, was appointed yesterday by Froc director Pracha Promnok who wants to be given the findings within three days.

But Pol Gen Pracha, the justice minister, said he could guarantee with his honour that the Froc's handling of relief supplies and donations was transparent.

The investigation into the alleged irregularities followed complaints on social media and from the opposition Democrat Party about the high price of relief supply bags, valued at 800 baht each. 

Many people do not believe the items, mainly cans of food, are worth so much. It is reported that the items in the 800-baht relief bag are similar to those contained in 300-baht relief bags the Froc produced itself.

Prime Minister Yingluck Shinawatra is worried by the news, saying any wrongdoing should not be happening at a time when thousands of Thais are suffering from the floods. She wants the Froc to clarify its relief supply management.

Chamroen Yuttithamsakul, the PM's Office's inspector who chairs relief supply management, said the 300-baht and 800-baht bags are different. 

The 300-baht bag mainly contains raw foods which need cooking and are targeted for distribution in less-affected areas. The 800-baht bag mostly contains ready-to-eat food items for hard-hit areas.

He said the 800-baht bag has 5kg of rice which costs more than 100 baht.

Other items in the bag are six cans of cooked rice, eight cans of fish, four cans of green curry with chicken or spicy chicken soup, four cans of fried fish, four cans of phanaeng kai, or chicken curry in thick coconut milk, and three cans of spicy fried surf clams.

Democrat spokesman Chavanond Intarakomalyasut also alleged yesterday the price of 30 fiber-glass boats the Department of Disaster Prevention and Mitigation bought for flood relief operation was inflated at 250,000 baht each.

In addition, the government procured 30,000 mobile paper toilets for flood victims priced at up to 245 baht each compared to the paper toilet produced by SCG Group which is sold at only 111 baht apiece.

Thai PM to skip APEC summit due to flood crisis

Thailand's prime minister said on Tuesday she would miss an Asia-Pacific summit in Hawaii this weekend, postponing her debut on the world stage to deal with the kingdom's worst floods in half a century.

This photo, released by Thai Prime Minister's Office, shows PM Yingluck Shinawatra delivering food supplies to a resident of north Bangkok during a visit to the flooded areas, on November 3. Yingluck said on Tuesday she would miss an Asia-Pacific summit in Hawaii this weekend, postponing her debut on the world stage to deal with the kingdom's worst floods in half a century.

The announcement came as the death toll from the three-month-old disaster climbed to 527 and the floodwater advanced deeper into the capital.

Prime Minister Yingluck Shinawatra, facing the first crisis of her fledgling leadership, had been planning to brief leaders at the Asia-Pacific Economic Forum (APEC) about the crisis and boost investor confidence in the country.

But with the mass of water now threatening the heart of Bangkok, a city of 12 million people, Yingluck said she would send Deputy Prime Minister Kittirat Na-Ranong, who is also the commerce minister, on her behalf.

"I think that at this time all Thai people must help" in the flood crisis, she told reporters about her decision.

Yingluck said she would discuss with her cabinet whether to attend a gathering of Southeast Asian leaders in Bali next week.

The November 12-13 APEC meeting would have been the first international summit for Yingluck, a political novice and sister of fugitive former premier Thaksin Shinawatra who only came to power three months ago.

APEC is a 21-member Asia-Pacific bloc that encompasses more than half of the world economy and includes the United States, China, Japan and Australia.

Yingluck's administration has faced criticism over its handling of the flood crisis, and heading to Honolulu in the midst of the disaster would have provided easy ammunition for her political opponents.

The Thai floods, triggered by months of unusually heavy rains, have damaged the homes and livelihoods of millions around the country.

The waters also forced the closure of thousands of factories -- interrupting global supply chains, putting more than half a million people temporarily out of work and costing the economy billions of dollars.

No more flood holidays

The cabinet on Tuesday turned down a proposal for the government to declare Nov 9-11 holidays for state officials because of the current flooding, government deputy spokesman Chalitrat Chantarubeksa said.

He said Prime Minister Yingluck Shinawatra was afraid there would be no officials on standby to help the flood-hit people.

Private companies can allow their employees to take leave as necessary, at their discretion.

Flood death toll now 527

A total of 527 people were confirmed dead and two people were missing in the floods that have inundated many provinces for more than three months, the Disaster Prevention and Mitigation Department reported on Tuesday.

The floods still prevail in 24 provinces, affecting 1,078,502 people, the department said.

The department on Sunday, Nov 6, reported the death toll at 506.

Pathum Thani starts to dry out

The flood level is slowly falling in Pathum Thani and there are high expectations the area will return to normal in about 10 days.

Flood levels have receded by about 50cm and are continuing to drop.

The water has receded significantly on Pathum Thani-Bangkok Road, a main road linking the province with northern and eastern Bangkok.

Three bus lines have resumed services on this route but smaller cars are still advised to wait until the flood situation has further improved.

Flood waters in several housing projects in Pathum Thani’s Muang district have receded by about 20cm, raising hopes that the overall situation will be back to normal in about 10 days.

By then all roads in the province should be dry, with only a few low-lying parts still holding pooling water.

Meanwhile, the floodwater on the Pathum Thani- Sam Khok Road, connecting Muang district with Sam Khok district, remains as deep as 80cm on average and only military trucks can pass through.

Choked by best intentions

For months now floodwater have wreaked havoc on the lives and livelihoods of so many Thais in 25 provinces. The force of the water has clearly shown its wrath and power, inundating not just industrial estates and businesses but the homes of millions of people.

Yingluck Shinawatra waves to flood victims in flooded Laksi district of Bangkok on Monday, after distributing relief supplies.

And it is not yet over _ as the floods continue to advance towards the inner parts of the capital. The damage continues to climb in terms of financial losses.

But worst is the loss of life, which has now tipped over 500. Human misery continues to climb as many are suffering under intolerable conditions. So many have lost everything they have worked and toiled for all their lives. And for so many, no compensation will be enough.

In these dark and dire times we have seen the best and the worst of human nature. But there can be no doubt that the people and this country will survive this disaster. There can be no doubt that the undeniable spirit of the Thai people will eventually prevail and rise once again.

What clearly remains in doubt, however, is whether the Thai people can rely on the necessary collective leadership to implement the right measures, indeed make tough decisions, to ensure that a similar disaster will not occur again.

And I don't just mean the necessary leadership qualities of Prime Minister Yingluck Shinawatra and her cabinet. I also mean the necessary leadership of the opposition as well.

There is no doubt that Khun Yingluck has all the good intentions; she is determined and is trying her best to deal with this disaster. In fact, I do feel sorry for her as this challenge of premiership was thrust upon her. And she really did not have any time to learn the ropes, so to speak, before this disaster finally spilled over.

This disaster has shown that inexperience in working and dealing with the bureaucracy and the politicians, as well as the differing and conflicting views of experts, academics and advisers, has resulted in missteps by the prime minister.

As prime minister, she could not initially control the outburst of Science and Technology Minister Plodprasop Suraswadi. She was unaware of the "New Thailand" proposal which suddenly popped up. She flip-flopped on the Khlong Sam Wa sluice gate incident.

The fact that many of her ministers are simply greenhorns in running the country or have proven ineffective in dealing with this crisis, has not helped.

Even amidst this crisis, there have been reports that Pheu Thai Party's de facto leader Thaksin Shinawatra is unhappy with the performance of certain cabinet ministers for providing wrong information about the flood problem to the prime minister and that those assigned to lead flood relief and post-flood rehabilitation have failed in their tasks.

Internal finger-pointing within Pheu Thai does not erase the fact that as far as Prime Minister Yingluck is concerned, good intentions and determination are simply not enough.

In terms of much-needed leadership in national administration, she has been challenged, measured and, sadly, been found sorely wanting. And if she is drowning now, what chance is there that the right decisions of rehabilitation and revival would be made when the floodwater finally recede and the full force of vested interests and politics comes to the fore?

I do believe that a more experienced leader would have done a better job. Love him or hate him, we must admit that Thaksin Shinawatra would have done a better job.

Likewise with Abhisit Vejjajiva. Both have had experience in working and dealing with Thai bureaucracy and would have handled the lack of coordination between the Royal Irrigation Department and the Bangkok Metropolitan Administration better. 

They have sufficient political mileage under their belts to ensure that slip-ups by ministers would not be glaring, and that wrong messages would not slip out.

Even so, I don't believe either of these political leaders would have been able to stop or stem the flooding we are currently facing. It is easy to say that we have borne the brunt of more than our fair share of tropical storms and rainfall. We are facing the current disaster, in part, because of gross water resources mismanagement.

In 1995 His Majesty the King advised and warned that we have allowed factories and industrial estates to be built in natural water catchment areas. They are located in areas where floodwater naturally flow. His Majesty further advised that waterways needed to be constructed to ensure that these estates do not get flooded.

His Majesty also noted that encroachment had occurred in many of the canals snaking through Bangkok and in surrounding provinces.

The king urged reclamation of these canals so that flood waters could flow and drain more efficiently. The king also suggested that a flood-way should be constructed to avoid a repetition of the 1995 floods which struck Bangkok.

His Majesty gave all this advice 16 years ago. Sadly, and clearly, our political leadership then, and now, have not heeded the king's advice.

What is more saddening than having a prime minister who is overwhelmed, is that after the floods are drained, we will still be stuck with a lack of political leadership in the government and the opposition  to work together and lead the people and this country towards a national agenda of revival and rehabilitation.

My fear is that bitter bickering, finger-pointing and politicking will re-emerge. I doubt whether the prime minister and her cabinet will have the guts to make the necessary changes in policy, and set aside what they promised before the elections in order to focus on what really needs to be done on rehabilitation, to ensure that a similar disaster does not happen again. I would dearly love to be proven wrong.

A veteran snake handler has been inundated with calls since the deluge

Snake catcher Sompob Sridaranop is busier than ever during the floods, with hundreds of calls from people who have spotted the reptiles in inundated areas.

Snake catcher Sompob Sridaranop shows a recent capture, a poisonous and hot tempered large-eyed green pit viper.

The 57-year-old civil servant attached to the Marine Department has been catching snakes for more than 30 years in Bangkok and Ayutthaya.

Although there are many other snake catchers in Bangkok and elsewhere around the county, Mr Sompob's reputation has grown both domestically and internationally, so he was the first choice for authorities to turn to for advice and assistance in catching snakes.

Under normal conditions, Mr Sompob deals with an average of 40 to 50 cases per month, but since the floods hit, he's been dealing with as many as 10 cases a day.

However, the number of snakes caught did not go up proportionally to the number of calls, because the flood itself has proved to be an obstacle.

Inundated roads have prevented Mr Sompob from reaching many locations as he works on his own as a volunteer. He does not have a boat or trucks with which to navigate the deep water.

While the government officials and police tried their best to connect the callers with an expert by routing all animal removal calls straight to his cell phone, the help ended there.

Dissension and general lack of cohesion between government, authorities and agencies were partly to be blamed for the coordination problems, he said.

"When the authorities redirected the calls to me, they didn't realise that I don't have the boat to go in,"Mr Sompob said.

"I had to tell many callers 'Sorry, but you're going to have to call someone else who has a boat'.

"But if they would just coordinate a pickup point for me, I'd be more than willing to go in."

He said one of the biggest obstacles for him is fuel costs. He does not get paid, nor does he have a sponsor. Only about three out of 10 people would offer him travel expenses, so most of the time he would pay out of his own pocket.

"It's tough when you're on a civil servant's salary but the reason I do this is because I enjoy helping people," he said.

Another obstacle arose last August; Mr Sompob was diagnosed with acute renal failure, requiring him to undergo dialysis twice a week, for four hours per session.

Although he could recover his strength to resume his activity, the dialysis wound prevents him from getting in the water.

Mr Sompob said his inspiration came from The Queen's royal address to blood donors when he was just 22. The Queen asked Thai people to be more selfless and help each other out.

He took the advice and began volunteering with the police at first.

Along the way he learned how to catch snakes and the skill has stayed with him ever since.

Mr Sompob became an animal remover, catching just about anything from snakes, monkeys and monitor lizards to geckos, insects and various other venomous creatures. He also gives demonstrations, educates the public about snakes and trains police, security officers and emergency responders on how to catch them.

Mr Sompob said of the 17 species of snakes typically found in the Bangkok area, 90% of the calls were about reticulated pythons, followed by cobras and pit vipers.

Captured snakes are sorted. Venomous snakes are delivered to Queen Saovabha Memorial Institute for venom extraction; non-venomous snakes are released back into the wild away from human settlements.

Mr Sompob said snakes are misunderstood and are not as big a danger as they are portrayed to be. In fact, each year more people are killed by paper wasps than by snakes, he said, adding that snakes are vital to the ecosystem and control rodent population.

This time of the year, the beginning of winter, marks the start of their mating season. Snakes tend to be more active and aggressive during this period.

Snakes are attracted to the smell of their prey and prefer cool places, like air-conditioned rooms.

To prevent snakes from entering the house, Mr Sompob advised covering drainage holes, sealing holes and crevices around and under houses, spraying non-flammable but pungent oil like paraffin around the house to block the snakes' ability to sniff out prey, and reducing trash and pet food that could attract rodents.

Mr Sompob said people should understand that snakes are territorial and only bite humans as a defence mechanism.

He said they are more likely to flee rather than fight. They also have poor eyesight and rely on smell and sensing heat and vibrations. When seeing a snake, one should keep as far away as possible and avoid cornering them.

If confronted by a snake, one should remain calm and as still as possible, because snakes are attracted to motion and any movement may provoke them to attack.

Wait for the snake to move away and then contact professionals; do not attempt to handle any snakes unless trained to do so.

If bitten, it is very important to remember the description of the snake in order to get the right antivenin, and to get to the hospital as soon as possible, the veteran snake catcher said.

When attacked by a constrictor, do not try to pull it off but rather unwind it or stab it with a sharp object, as snakes will normally run away when injured. To tell a bite wound by venomous snake from a non-venomous one, one or two fang holes means venomous; rows of teeth mean not venomous.

The four hospitals in Bangkok area carrying antivenin are Siriraj and Somdej Prapinklao in Bangkok Noi, Bhumibol Adulyadej Hospital in Sai Mai, and Chulalongkorn near Silom.

Do not go to Queen Saovabha Memorial Institute, as the agency does not deal with snakebite patients.

For animal removals and advice, contact Mr Sompob on 089 043 8445, or contact local firefighters, the National Parks, Wildlife, and Plant Conservation Department Hotline 1362 or City Hall's firefighting hotline 199.

Province could lose up to B150bn

Prantalay Marketing Co in Samut Sakhon has prepared a depot and cold storage in Ma Klong in neighbouring Samut Songkhram province.

Samut Sakhon province, in red, is directly in the flood path

We've sped up operations to meet year-end orders and so far supplies of shrimp, mainly from the southern and the eastern regions, have not been disrupted," said Anurat Khokasai, the company's marketing and chief operating officer.

"But we are now concerned that increasing rainfall in the south will affect supply, as normally happens late this month."

Prantalay is confident its exports will top its original forecast of 8.4 billion baht, possibly reaching 8.5 billion this year. Domestic sales are projected at 1.2 billion baht. Next year, it anticipates sales growth of 10%, he added.

Inundated industrial estates in Ayutthaya and Pathum Thani are prepared to pump out floodwater, but the water has receded slower than the Irrigation Department forecast, they noted.

At Hi-Tech Industrial Park in Ayutthaya, floodwater is still as high as 1.98 meters, higher than the estate's flood wall.

"We need to wait for it to recede to probably 1.80 meters," said Hi-Tech managing director Thavich Taychanavakul. "Earlier, we estimated the floodwater would establish early this month so we could start pumping the water out by this Thursday."

It will take about 14 days to drain 10 million cubic meters from the estate. Hi-Tech expects to complete the task by Nov 25, he added.

Samut Sakhon factories still unprepared _ FTI Province could lose up to B150bn

Bangkok's neighboring province, Samut Sakhon, could experience a loss of as much as 150 billion baht as severe floods are expected to hit the province later this week and last about a month, says the Federation of Thai Industries (FTI).

About 35 kilometers southwest of Bangkok, Samut Sakhon is home to nearly 5,000 factories with a total industrial workforce of 500,000, the majority of which are employed in the seafood sector, including SET-listed Thai Union Frozen Products Plc (TUF), one of Thailand's leading manufacturers and exporters of canned and frozen seafood products.

"We expect the entire province will be hit by floods some time this week and the water level might be higher than two metres in some areas," said Apichit Prasoprat, head of FTI's Samut Sakhon province and secretary of the central-region chapter.

More importantly, about half of the factories have yet to exercise flood-prevention measures, probably because they don't think the floods will affect their factories, he noted.

Several factories are located below the road level, putting them at risk.

"In a worst case, we project the floods will last about one month. We need a number of water pumps to drain the water out as fast as we can to minimize damages," said Mr Apichit.

A flood-way is being prepared for one side of Rama II Road heading south. Mr Apichit has asked his colleagues at FTI offices in other provinces to help supply hundreds of water pumps.

TUF president Thiraphong Chansiri said the flood has not yet affected the company's operations but it is monitoring the situation very closely.

TUF's plant is located in the Muang district of Samut Sakhon, which lies in the projected path of the water flow from flooded areas to the Tha Chin River. The company erected a sandbag barrier around the factory's premises and has several water pumps on standby. Large machinery and equipment are protected.

Besides preparations to safeguard physical assets, TUF has also implemented flood-relief measures to help affected employees.

The company set up an evacuation shelter at the plant, and a team of TUF volunteers are prepared to assist employees evacuating their homes. Employees who cannot travel to the plant can work from home.

Thousands refuse to leave as floodwaters threaten central Bangkok

Murky floodwater is slowing moving towards the heart of the Thai capital Bangkok as thousands of people ignore orders to evacuate the city.

Relief workers are distributing aid to evacuation centers in central Bangkok, but they say they are struggling to reach residents still refusing to leave their homes.

"I believe thousands of people are in their homes and are still not evacuating," relief co-ordinator Rungsun Munkong told CNN. "(They) possibly will be stranded with little food and water as time goes by."

He says other agencies have attempted to reach people trapped in tower blocks "but the scale is just massive."

"I think it will be difficult down the road to get help to these people," Munkong says, adding, "People need clean water, that's the first important thing. Cooked ready-to-eat food is also quite important, baby milk and so on."

Thailand has been inundated with its worst flood in half a century, affecting at least 25 of the country's 77 provinces.

More than 500 people had been killed in the deluge according to figures released Sunday by the country's interior ministry.

A Thailand Disaster and Mitigation Department report, issued Sunday and reported by MCOT, estimated about 3.1 million people have been affected and 4 million acres of farmland have been damaged. Moreover, the department said two people are believed missing and about 75 highways have closed.

In the provinces of Nakhon Sawan and Ayutthaya, cleanup efforts were under way.

On Sunday, the Prime Minister Yingluck Shinawatra visited Nonthaburi, near Bangkok. There, the government provided 100 boats to help transport people and disperse relief supplies after requests by local officials, according to MCOT.

Despite public criticism of the government's overall response, Yingluck said she would not shake up her Cabinet -- in the short-term, at least.

She explained that the focus first is to address the situation, with a full evaluation and possible shuffling to be done after the crisis abates, reported MCOT.
I think it will be difficult down the road to get help to these people
Rungsun Munkong, relief co-ordinator

Floods are an annual occurrence in the country but have been particularly acute this year, and some residents and analysts have criticized the government's response.

"Now the government is sending a mixed signal that the situation is fine, but the truth is it the situation far from over," political analyst Supong Limtanakul told CNN. "It is a slow suffocating death of (the) Bangkok business area."

The city's main airport and two large industrial sites are also at risk, Supong said.

Supong said the government did not have enough resources to deal with floodwaters, noting that officials had recently asked the private sector for water pumps to help drain water out of Bangkok.

Paribatra, Bangkok's governor, told MCOT that it may take up to two weeks to drain water out of Bangkok's main roads, and months to drain water from smaller roads.

Anchorman Galvanizes Thai Aid Effort

When Thais see Sorayut Suthasanajinda's Channel 3 news team in their neighborhood, they know their country's spreading floods, which have now claimed over 500 lives, can't be far behind.

For weeks Mr. Sorayut has waded through brackish water, microphone in hand, bringing the full scale of the slow-motion disaster home to television viewers even as government leaders continue to reassure people that the worst is over. He has also turned his television news show into something of a first-responder rescue service that has helped fill the gaps in the Thai government's own patchy aid efforts, quickly raising over $12 million in donations and creating a logistics machine that flings relief packages stuffed with noodles, burgers, bottled water and toilet paper to stranded victims perched on roofs or leaning out of second-story windows.

Anchorman Sorayut Suthasanajinda's coverage of Thailand's flooding crisis helped raise the alarm in Bangkok about the depth of the threat, and now he is spearheading a private sector fund-raising campaign to help ramp up the relief effort.

Now that the floods are moving to the edge of Bangkok's business district after decimating much of the country's manufacturing base, some people who thought they would be safe from floods are seeing Mr. Sorayut popping up in their backyards, too.

"Some people try to tell me to stay away because I'm a sign of bad things to come," Mr. Sorayut, 46 years old, joked during a midnight patrol of the city's flooded suburbs. "But when I started building a wall in front of my house to stop the floodwater getting in, they started building walls, too. Not that it did any good. We're all flooded now."

By Sunday, the floodwaters had swamped a major intersection and the area around Bangkok's famed Chatuchak Weekend Market, a major tourist attraction, and were threatening nearby subway stations. The stations remained open but were being monitored closely by transport officials.

At a safari park in Bangkok's suburbs, meanwhile, Thai television footage showed giraffes, rhinoceroses and other animals wading as water levels rose.

The way Mr. Sorayut's shows have galvanized a private-sector-driven relief effort underscores the worsening loss of confidence in the government's commitment to getting aid and information to people who need it the most. Political analysts say that after years of political upheavals here, including a coup, airport shutdowns and bloody street protests, Prime Minister Yingluck Shinawatra's national government and her rivals in Bangkok's city administration sometimes appear more interested in scoring political points over each other than in putting forward a coordinated response to the disaster.

Government officials have said they were caught by surprise by the sheer volume of this year's monsoon rains, but moved quickly to distribute aid and are now preparing a multibillion-dollar relief plan, including pledges to build better infrastructure to cope with worsening flooding.

Still, "in the face of a crisis where no one seems to be trusting politicians, this opens the door for someone like Mr. Sorayut to play a role," said Pavin Chachavalpongpun, a Thailand expert at the Institute of Southeast Asian Studies in Singapore.

"The style is intrusive and very accessible—he brings to the footage right to your home—and in many ways it gives an alternative view of the situation."

Mr. Sorayut sticks out like a sore thumb in Thailand's carefully polished media landscape. Brash and dismissive of the usual deference shown here to the country's political class, Mr. Sorayut has won over a loyal audience with his no-frills approach. When he switched from state-run broadcaster Channel 9 to privately-run Channel 3 in 2006, operator BEC World PCL's stock price soared 30% within six months, thanks in large part to higher ratings for its news programming.

The anchorman began focusing more squarely on disaster relief in 2010, when he helped launch a "News Family" foundation to help raise funds for earthquake victims in Haiti before turning his attention to an earlier series of floods that swept parts of Thailand last year.

This year, though, Mr. Sorayut has really come into his element. First he managed to get the two leading contenders in Thailand's national elections last July to appear on the same show—something they had refused to do earlier. Then, when the extent of the latest floods began emerge, he kick-started a fresh fund-raising drive.

Accompanied by his side-kick, comedian Charoenporn On-Lamai, better known as Koh-Tee, Mr. Sorayut ventures out virtually every night to deliver aid and generate fresh stories for his morning and evening news programs. "Watch out, Sorayut is coming," Mr. Charoenporn yelled out into a dark, flooded street in Pathum Thani near Bangkok Thursday, playing on Mr. Sorayut's reputation for bringing disaster in his wake.

One resident, Sombat Pimpandee, said the government hasn't managed to send aid to his swamped neighborhood in Pathum Thani yet, and Mr. Sorayut's deliveries of rice, water and McDonald's burgers were badly needed. "We've got problems with snakes here, pythons and cobras, and it's becoming dangerous to go out, even in a boat," said Mr. Sombat, who was holed up with his wife and 6-month-old baby.

Thailand's top news anchor has his share of critics.

Some say he is using the floods to burnish Channel 3's own brand, adding that the network's logo is conspicuously displayed on its aid hand-outs and that his show rarely features the relief work conducted by government agencies or the armed forces.

Supporters of Thailand's two main political parties sometimes accuse him of secretly backing the other side.

Mr. Sorayut explained to a visiting reporter that he is still a journalist and tries to tell people's stories rather than rescue them.

"The government has a duty to help, and it will and does," Mr. Sorayut said. "We're just doing what we can in the meantime because we are able to move quickly and bypass all the bureaucracy. We have to, and we do it as openly as possible so people can see how we use their donations."

Still, the longer Thailand's flood crisis persists, the greater the likelihood of Mr. Sorayut eventually shaking off his reputation as a harbinger of watery gloom.

At a swamped village in Pathum Thani, local resident Amorn Lamonthien said the power supply came back on for the first time in weeks just before Mr. Sorayut and his team arrived.

Floodwater Leaves Bangkok Awash in Trash

Bangkok city street sweeper Jiraporn Sirikul has a bone to pick with her fellow residents: She wants them to pick up their own trash.

As floodwaters begin to surge into Thailand's capital after building for months further upstream, bundles of trash in the city's streets are becoming a headache for Bangkok's garbage collectors—both for the risk of disease it poses and, more immediately, the way the city's rubbish blocks drains and impedes the flow of water out into the sea.

Jiraporn Sirikul's daughters play in floodwaters at an intersection in Bangkok's Lat Phrao area, just outside central Bangkok, on Friday. Jiraporn, a street sweeper in the Thai capital, now stays at a shelter in Bangkok with her two daughters, after her home was inundated by heavy flooding.

It's a messy and, increasingly, smelly, problem. Bangkok's eight million people—12 million including heavily urbanized areas surrounding the capital—produce around 8,700 tons of garbage a day, about a quarter of Thailand's total. Additional debris is flowing into city from flooded provinces further north and, with many of the capital's roads now flooded, garbage trucks find it hard to get around to pick up refuse.

Some garbage collectors have fallen victim to the floods, too. Ms. Jiraporn's home in the northern part of Bangkok is flooded and she is now living with her family at a Bangkok city shelter.

"I don't mind doing what I can to pick up the garbage. It's my job. But people have to learn to help themselves too and realize that when they dump garbage in the streets they risk flooding their own homes and those of their neighbors," Ms. Jiraporn, 45 years old, said, as she surveyed a flooded city intersection with her two young daughters. "People have to learn to be more responsible."

It's a lesson other cities have had to learn the hard way, too. When a typhoon ripped through the Manila in 2009, around a third of the Philippines' capital quickly flooded because of garbage clogging the city's drainage systems. Government workers there quickly mobilized to clean up Manila's drains and launched a public awareness program about the dangers of recklessly tossing trash away.

When a similar storm passed over Manila in September, the flooding was much less intense.

Now it's Bangkok's turn, and the problem in Thailand could be much more severe because of the flood's agonizingly slow movement south towards the Gulf of Thailand, worsening the risk of infections such as dengue fever, diarrhea or leptospirosis, a condition caused by contact with rat urine, not to mention drowning and electrocutions. Nearly 450 people have been killed, mostly by drowning, since the onset of the flooding crisis in late July.

In some places, residents living in garbage-strewn, stagnant water have sabotaged barricades and flood-gates to release floodwaters from their neighborhoods, only to inundate other areas of the city.

On Saturday morning, floodwaters edged closer to the city center, reaching the area around the famous Chatuchak Weekend Market. Police closed parts of another key road, Vibhavadi Rangsit.

Officials have said they will focus on improving the city's drainage systems when the immediate crisis passes. In the meantime, Bangkok's city government is urging residents in eight of the city's 50 districts to evacuate, while businesses and homeowners scramble to strengthen makeshift walls and sandbag barricades to protect their property. Other residents grabbed what they could and set off in search of drier ground at evacuation centers or at relatives' homes.

The clean-up, when the floods eventually recede, will be a lengthy and expensive operation and could determine whether foreign-invested factories swamped by the flood choose to reinvest in Thailand or relocate to other countries or other, drier parts of Thailand. The floods have dislocated supply chains around the world, affecting the automobile and electronics industries especially badly.

Peter Hookham, Asia Operations Claims Manager at FM Global, a commercial property insurer, said the disruptions could rival the economic impact of Japan's devastating earthquake and tsunami earlier this year.

"Japan was eye-opener for anybody operating supply chains, and depending on how long Thailand's crisis lasts, our feeling here is that it could be even worse," he said.

Prime Minister Yingluck Shinawatra said in a weekly radio broadcast Saturday that she is proposing an initial 100 billion baht, or $3.2 billion, budget to rebuild roads, homes and hospitals. Longer-term, she said her government will look at ways to better manage the country's water flow after a series of heavy monsoon seasons.