Flood coverage offered with KBank loans

Kasikornbank plans to offer flood insurance for mortgages from next year for a higher premium.

The bank will work with its insurance partner, Muang Thai Insurance, to develop flood insurance products in addition to its fire policies. Fire policies also cover typhoons, earthquakes, hail and riots on sliding risk scales.

The flood insurance would be offered from Jan 1, said first senior vice-president Chatchai Payuhanaveechai.

Flood protection would be in the range of 20,000 to 50,000 baht depending on the sum insured, and coverage can be increased up to 20% of the appraised value per house.

"For example, a home buyer has to pay the required fire insurance of around 500 to 1,000 baht per year for a one-million-baht house. That customer would pay an additional premium of 279 baht per year for flood protection of 50,000 baht," he said.

Existing mortgage holders can add flood insurance if the insurance company allows it. Since many people have suffered from the floods, demand for the insurance has increased, he said.

KBank projects retail loan growth of 8% this year, down from an earlier target of 15%, because of the floods. It expects sluggish housing-loan expansion into the first half of next year because of the concentration on recovery.

Housing loan growth in the first half next year will be focused mainly on rehabilitation. KBank has special packages, offering no interest for six months followed by the minimum lending rate. It offers a 15-year loan period, the longest for this type of debt, he said.

Senior executive vice-president Krisada Lamsam said the bank would provide extra financial packages to ease the financial burden for flood-affected customers, offered in three steps. 

The first step is to survey the losses, the second is business rehabilitation and the last is comprehensive financial support.

With assistance, the bank forecasts the manufacturing sector will be back to normal from the second quarter next year.

Financial measures include a grace period of up to 12 months, extension of loan maturity, and additional credit of up to 100%. Low interest rates for affected SMEs and individual customers will also be offered. The financial conditions of each applicant will be considered on a case-by-case basis.

Mr Krisada said KBank was also working with the Japan Bank for International Cooperation and its partners to provide financial support to affected customers. Six Japanese financial institutions have so far been offering assistance packages.

Bank of Ayudhya is also offering financial assistance based on cash flow, allowing new loans to help customers restart their businesses or continue normal operations.

Offers are based on the severity of the damage to assets and cash flow and each customer's track record.

Keep them guessing _ and wrongly, too!

The flood situation that Thailand faces at the moment brings a sense of foreboding to the entire country. Not only are they having to deal with the excessive water levels now, but they are gradually becoming aware of the threat that they will have to face in the future.

Different experts say different things, but most predictions are gloomy. Bangkok will be submerged in the foreseeable future, since it is sinking at a rate of 1-3 centimetres a year, they say. 

Furthermore, the sea level is rising every year as a result of global warming. No matter how miniscule this rate might be, it all points to the possibility that Bangkok could be at least one metre lower than it is now by the year 2050. 

And that's not a difficult scenario to envision, since many parts of Bangkok are already below sea level at the moment.

Dutch experts have been called in to give their opinions on water control. They are undoubtedly the world experts on this topic, ever since Peter stuck his finger into the hole in the dyke and stemmed the leak which might have otherwise grown into a massive overflow that would inundate the entire country. 

Perhaps our PM might like to contact Peter to see whether he could do a better job with the leaky dykes than those Big Bags.

There has been talk about moving the entire capital to safer grounds. Doomsday maps have shown that there will be very little left of Thailand after the 2012 scenario, and that little bit is in the northeast plateau. Perhaps Nakhon Ratchasima, or Korat, could take on the role as the new capital of Thailand? 

Dinosaur skeletons have been excavated there; those dinosaurs probably knew a thing or two about safe hunting grounds before the Big Meteor hit and wiped them off the face of the earth. We should learn from them.

Korat already has an airport which could very easily be upgraded to international level. We wouldn't even need half as much landfill as we did to fill the Cobra Swamp to create Suvarnabhumi.

And the distance between Bangkok and Korat is only 269kms. A high-speed train could cover that distance in no time at all, so people who are reluctant to relocate could actually just shuttle between the two cities.

A lot of investment is going to be needed to protect Bangkok from future inundation.

Why not just spend that money building new schools, hospitals, and other facilities that would create a total lifestyle for the inhabitants? 

Introduce proper zoning for industry, residential areas and business districts, set up an efficient public transportation system so people do not need to drive cars, encourage the use of eco-cars or bicycles, have lots of green spaces.

I'm sure people would be tempted to move to a city that works, that has been well thought out and caters to the inhabitants rather than a city that has been left to its own devices, where infrastructure and amenities are dictated by whoever is in power.

What's more, Korat has its own horse racing course already...what more do you need?

Though I'm not planning on going anywhere soon, I'm not 100% certain that I'll be here in 2050, so it won't matter to me one iota. But my kids are going to be around, and their kids would probably be going to school by that time. 

What should I tell them now? Shall I tell them they should invest in a "first boat" rather than a "first car" or "first house"? Should we start buying condominiums in high-rise buildings to escape the flood, and make sure it has its own power generator? 

Shall we invest in solar panels as an alternative source of energy? Should we go back to living in houses on stilts?

As far as I can see, we're going to have to make our own plans, since we've seen how much we can rely on the authorities to take care of us in times of need or emergency.

And by the way, do you have Peter's phone number?

Customer service playing critical role

Developers look to build reputations

The current flood is testing how well developers and property companies take care of customers, which can affect their reputations and influence future customers.

Sopon Pornchokchai, president of the property consultant Agency for Real Estate Affairs, said housing developers should offer good service and financial support to build brand awareness.

"Quick response to problems and other assistance will help housing developers build brand loyalty. This is an efficient word-of-mouth channel to gain new customers," he said.

Spending money on equipment such as water pumps costs less than advertising and means more to customers, he added.

Mr Sopon said some customers just need encouragement or sympathy.

On the other hand, some developers have been difficult during the ordeal. For some projects that sold out, developers ignored pleas for help or ignored the situation. 

For other customers, some developers spent too long surveying projects. "This behavior builds a bad image for developers," he said.

L.P.N. Development Plc has received plaudits as it mobilized its staff to protect condominiums managed by its subsidiaries. 

Charan Kesorn, managing director of Lumpini Property Management Co, said the L.P.N. affiliate added staff to take care of as many residents as possible.

One area severely hit by the flood is Pin Klao. As some projects faced high water levels, Lumpini Property provided small boats to bring residents to dry areas and built temporary walkways and bridges.

It also bought some food to sell at cost to residents.

"This could not be done without the cooperation of our staff, business partners and all of our co-owners in the projects. We have at least 500 volunteers living in our projects to help protect the properties and take care of other residents," said Mr Charan.

"Since the company began the 'livable community' concept 22 years ago, this flood has been a real test of whether it is concrete."

He said a condominium was just a building, but more important was the quality of life of the people living in the project. "Quality of life can matter more than price, size or location .

Baan Lumpini townhouses in Bang Bua Thong, Nonthaburi were developed 17 years ago. Marote Vananan, deputy chief officer for commercial service at Asian Property Development, said it had three levels of flood management: monitoring, at risk and emergency.

For monitoring, AP will check for possible leaks and prepare sandbags to protect risky areas, as well as clean out drainage pipes. Some areas will need dykes.

Water pumps will be prepared to drain the water with security guards monitoring the perimeter of buildings. For at-risk areas, engineers will be on alert to maintain pumps.

"In an emergency, if the inner area of a project is flooded, we will evacuate residents as soon as possible. We have a big vehicle ready if the water level is too high for small cars," he said.

AP also talked with eight hotels in no-risk zones to support its residents in case they cannot find a place to stay. It will subsidies the room rate for a maximum of seven days per unit. Security guards will watch flooded projects to protect residents' assets.

Kayaks to the rescue

Though the factories owned by his family in Rojana and Nawanakorn Industrial Park in Ayutthaya have been inundated and they face a loss running into several hundred million baht, the devastation has not affected Danupol Siamwala's determination to help flood victims.

Danupol and his friends have formed a group named RongLui to help flood victims, focussing on rescuing people who are hard to reach and who've been waiting for help for a long time.

RongLui volunteers in kayaks deliver disaster relief packages to victims in conjunction with the group's partner networks, 1500Miles Foundation and Backline 2011.

RongLui and its partner networks have opened three depots to receive donations for disaster relief packages.

They are at the entrance to Water Theme Park (from 10am-6pm); Fun Fact Pub & Restaurant on Soi Mahadthai; and Srinakharinwirot University.

Volunteers pack donated items in relief kits and deliver them to the base camp at PAC Sports Centre on Rama II Road, which then distributes them to flood victims.

Life insurers' growth ebbs with flooding

Life-insurance premiums will grow less than expected this year due to the prolonged flood crisis, says the Thai Life Assurance Association (TLAA).

It said the industry was now expected to generate only 330 billion baht, up by 10% from last year but less than the 15% forecast earlier.

Director Busara Ungphakorn said the widespread flooding had been disrupting the sector since last month, and fourth-quarter performance would show a severe decline.

Insurers have been extending grace periods for premium payments for affected clients, to 91 days from 31 normally, which also affected revenues, she said.

As well, policies that are not renewed for as long as six months will remain valid and can be renewed with no penalty.

The TLAA has also been forced to cancel testing for life-insurance agent licences in several flood-hit provinces.

Chai Chaiyawan, the president of Thai Life Insurance Co, said the grace period extension would cover his company's policies for which annual premiums fall due between September and the end of this month.

As well, late payment allowances on Thai Life policies for industrial groups will be extended to 90 days from 60 days, he said.

Mrs Busara said the sector comprising 24 life insurers would generate 330 billion baht in premium revenue this year, less than the 339 billion forecast before but up from 296 billion last year.

In the first nine months of this year, the sector generated 239 billion baht in premium revenue, up 12.7% year-on-year, with the persistency rate remaining high at 87%.

Of that figure, 74 billion baht came from new business and 165 billion from renewals.

American International Assurance still leads the industry with a 28.1% market share, followed by Muang Thai Life Assurance (12.3%), Thai Life Insurance (12.2%), Bangkok Life Insurance (9.6%) and Siam Commercial Life (9.3%).

The flooding, which has claimed 533 lives as of last week, has not yet affected insurers severely but is threatening the offices of two leading players  Thai Life and Muang Thai Life.

Mr Chai of Thai Life said his company had a plan for backup office in Pattaya that would allow operations to continue, with online contact maintained with all branches nationwide.

The company agrees the flooding will hurt consumer purchasing power in some areas and reduce the sector's growth expectations to 10% this year.

Ratchada Phumsuwan, Muang Thai's corporate communications director, said his company had set up a network for branches to work in parallel with headquarters.

He expressed confidence that Muang Thai would achieve 15% growth from last year's 29.6 billion baht.

Free space for charity

River City Shopping Complex is offering free space to agencies both in the public and private sector that wish to organize events/activities designed to raise funds to assist flood victims.

The offer can be availed between Dec 8-31 and interested parties can call 02-237-0077 ext 618 or email.

Recovery, clean-up starts at four Ayutthaya estates

Recovery and clean-up work have begun at four flood-hit industrial estates in Ayutthaya as water in several parts of the central province has receded.

Industry Minister Wannarat Channukul said yesterday recovery work has begun at the four industrial estates hit by floods  Rojana, Hi-Tech, Bang Pa-in and Factory Land industrial estates.

Factory Land is almost dry as 80% of the estate has been drained. Of the estate's 93 manufacturing plants, 12 have resumed full operations while clean-up work is under way at the remaining plants.

Mr Wannarat said the clean-up operation at Bang Pa-in estate will begin on Thursday and repairs to flood-damaged machinery, the water supply and electricity systems will be carried out on Friday and Saturday.

The estate is expected to restart operation on Nov 25, the minister said.

At Hi-Tech, a drainage operation using water pumps will begin on Nov 30 while Rojana is expected to drain away all floodwater by the end of the month and be ready for a clean-up the following day, Mr Wannarat said.

However, he said flood levels are still high at the Saha Rattana Nakorn Industrial Estate in Ayutthaya, as well as in the Nava Nakorn and Bang Kradee industrial estates in Pathum Thani. Drainage operations will have to wait until the water levels drop, Mr Wannarat said.

He said authorities from the Industry Ministry and the Pollution Control Department will check the quality of water drained out of the estates to ensure the water is not contaminated with dangerous chemicals.

Public Health Minister Witthaya Buranasiri, as adviser on flood recovery for the industrial estates in Ayutthaya, said about 50 factories in the province should be able to reopen for full operations early next month.

Amata Nakorn firms ponder flood lessons

CHON BURI Having seen other industrial estates north of Bangkok submerged, executives of factories at Amata Nakorn Industrial Estate are still not completely confident they will be spared from a similar calamity, despite government assurances and the site's distance from the Bang Pakong River.

Amata Nakorn houses more than 400 companies, mostly Japanese with a few Chinese, European, American, and Taiwanese ventures. Most are manufacturers of auto parts, paints and petrochemicals.

For Japanese executives, the nightmare of the March earthquake and tsunami  and subsequent impact on supply chains worldwide  is still fresh in their minds. 

It's no surprise that factory managers at Amata shuddered at the sight of the huge Honda plant at Rojana in Ayuthaya under nearly two metres of water.

The location of Amata Nakorn has given some confidence to the investors that the same floods that devastated their peers should not affect them directly since it is located more than 20 km from the Bang Pakong River, through which some flood runoff is to be steered to the Gulf of Thailand.

Amata Nakorn managers are providing regular updates to clients, and invited Irrigation Department officials to further assure the factories will be safe.

However, many businesses are taking nothing for granted and have built walls and put up sandbags.

Kanapoj Suranart, safety manager at the auto parts maker Siam Denso, said one of its factories at Rojana was inundated last month. As a result, it has a four-step plan to protect its Amata Nakorn premises.

If the flood is 10 km from the factory, the first step would involve stopping production and moving machinery to higher ground. At 5 km, workers will be evacuated, he said.

If water enters the factory compound, all gates will be closed and the 10 senior executives will be the last group to leave.

Our Japanese executives are very concerned about the floods because if it happens, it will instantly affect production,'' he said. ''We have to protect it until the whole flood crisis is over.

''The tsunami that hit northern Japan earlier this year has made the executives alert. They went to examine and monitor the water levels in many canals such as in Ayutthaya and Rangsit as well as the Bang Pakong river many times to make sure the waters are at normal levels.''

Floods at Rojana have damaged at least four of Denso's suppliers and also hurt the credibility of the government, he said, which clearly lacked experience and was proceeding by trial and error.

''We invest a lot here and if we can protect the factory, we can give confidence to our customers in producing vehicles,'' he said.

Siam Denso helped to move some equipment from supplier companies in Rojana to safer places in Chon Buri and nearby provinces and is also seeking new suppliers to prevent a protracted shortage of parts.

''We are monitoring Lat Krabang industrial estate closely where the water is approaching as Isuzu is our supplier there but I think it could be protected because it has 40 pumps to drain water if it comes in,'' said Mr Kanapoj.

Samruay Sakham, safety and environment manager of Kao Company, said it put its prevention plan in place in mid-October.

''Now the situation looks better and some are confident it might not reach Amata Nakorn, but we still monitor water levels in canals and the Bang Pakong River every day,'' said Mr Samruay.

An Amata Nakorn executive expressed confidence that the estate would be spared because it is 1.8 metres above mean sea level and only 2 km from the sea if it needs to drain the runoff.

Our executives have 95% confidence that we can manage the floods. The other five percent uncertainty is due to the rains. All canals around the estates can divert water to the Bang Pakong river, so we are not concerned about flooding in the estates,'' he said.

Froc: Big Bags will stay

The Flood Relief Operations Command has not given an order to remove 'big bags' for 30 meters from the flood barrier near Don Mueang airport as reported, Froc spokesman Pongsapat Pongcharoen said on Sunday.

Pol Gen Pongsapat said Froc had just concluded a meeting and it did not make such an order.

The line of big bags was intended to hold the floodwater back from surging to inner Bangkok. Consultations must first be made with people in the area of any of the big bags should be removed, he said.

Froc's denial came after it was earlier reported that it had agreed to remove some of the big bags by 6pm today to make a 30m opening following protests by residents from more than 20 communities in Don Muang district.

Police chase gang laying road spikes

Boat taxis under suspicion of rupturing tyres to boost trade

Police have vowed to arrest would-be profiteers who have placed metal spikes on flooded roads to stop rescue trucks from helping people.

The Flood Relief Operations Command (Froc) has received complaints from members of the public that many flood relief vehicles have run over road spikes and ended up with flat treys on Ratchapruek and Kalpapruek roads.

Froc said the complainants made the same observations, that boat operators from central provinces were often seen near the spots where flood-aid trucks had hit the road spikes.

The Metropolitan Police Bureau (MPB) says the trucks ran over spikes on roads in flooded areas including Vacharapol Road and Wongsakorn Market in Sai Mai district, the Don Muang section of Phahon Yothin Road and the Bang Phlat area of Charan Sanitwong Road.

Pol Col Sappisit Yamkesorn, superintendent of the 191 police emergency hotline's news center, said ripoffs from the public were in line with police reports of road spikes bursting the tyres of several large vehicles sent out by state agencies, including police and military forces, to help flood victims.

Boat operators in flooded areas are suspected of placing the road spikes to deter rescue vehicles, which they regard as a threat to their business.

Pol Col Sappisit said some boat operators may feel upset with charity trucks that transport flood victims. The trucks provide free transportation which causes them to lose revenue, he said.

The incident caused widespread anger among the public, prompting Deputy Prime Minister Chalerm Yubamrung to order tough action against those using road spikes to aid profiteering.

Police are still looking for evidence for example, a spike laid on the road in the Bangkok metropolitan area, said Pol Maj Gen Winai Thongsong, acting chief of the MPB, who is leading the investigation.

However, drivers and passersby found spikes on flooded roads in some of the nine central provinces under the jurisdiction of Provincial Police Region 1.

Pol Maj Gen Winai urged members of the public to tip off police if they see anyone laying the spikes.

"I have ordered our team to take records of hire boat operators in Bangkok," he said.

"We will also work with other state agencies to regulate boat owners who are overcharging for their services."

Laying spikes on a public road is a criminal offense with a maximum prison sentence of three years. Offenders in this instance will also be charged with an additional count of hindering officials giving aid to flood-affected people.

He admitted police could not do anything about overpriced boat tickets, unless the Ministry of Commerce set a median price range for boat fares in flooded areas.

At present, police could only ask boat owners to collect "fair" rates from passengers. "What they did [placing road spikes is such a heinous act. 

It aggravates the suffering of people already affected by the floods. These people are immoral," Pol Maj Gen Winai said.

New highways, towns planned to combat floods

HONOLULU, HAWAII : A new river, new highways, new railways and new towns are among the government's long-term flood prevention measures, Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong said.

Deputy Prime Minister Kittirat Na-Ranong went to Hawaii as head of the Thai delegation for Sunday's Apec summit.

He explained the plan to multinational business leaders who expressed concerns that any repeat of the heavy flooding in Thailand will cause huge damage again.

He said leaders and executives from multinational firms, including Google, Microsoft, AT&T, Cagill, Boeing and GE, expressed concerns over Thailand's worst flooding for half a century at the Asia-Pacific Economic Cooperation (Apec) CEO forum in Hawaii.

They asked Thai delegates whether heavy floods will happen again in the near future.

This year's floods submerged seven industrial estates in Ayutthaya and Pathum Thani and still pose a threat to two industrial estates in Bangkok Bangchan and Lat Krabang.

Mr Kittiratt, who attended the Apec meeting on behalf of Prime Minister Yingluck Shinawatra, said he told the business leaders the government would improve the water management system and would not allow such a disaster to occur on such a scale again.

The government has planned investment in water resource management, to prevent heavy floods, particularly in densely populated communities and business districts.

Initially, the development would include digging a new river to act as a flood way leading from the Central Plains to the sea.

A dual track railway or a highway would also be developed along the river.

New town development and new city planning are also in the pipeline.

Kittiratt: Assures big business

Mr Kittiratt chairs the national strategic committee for water resources management.

Details of how the investment was funded would depend on a joint decision between the committee for reconstruction and development, chaired by Virabongsa Ramangkura, and the Finance Ministry.

"The government has decided to seek help from Japan International Cooperation Agency [JICA] for technical consultancy in water resource management, particularly in the Chao Phraya basin," he said.

The JICA conducted a water management study on the Chao Phraya basin in 2000 as well as the Crown Property Bureau.

The study results of the two organizations would be applied for the development. Mr Kittiratt said the government is considering sources of funding for the mega-project development for flood prevention.

There are several suitable sources available, including the World Bank, Asian Development Bank and the JICA.

Meanwhile, the United States, which hosted the Apec Ministers' Meeting, tried to push the "promoting green growth" issue.

This is aimed at encouraging Apec member nations to promote environmentally friendly goods and service markets.

Among proposed measures is a tax reduction scheme for environmentally friendly goods and services, such as solar cell development and energy-saving services.

Mr Kittiratt also said Thailand has been invited to join the Trans Pacific Partnership FTA which has nine members, led by the US.

Don Muang bags protest grows

Locals tackle flood wall; PM insists it will stay

Don Muang residents removed more of the "big bags" forming a floodwall on Vibhavadi Rangsit Road despite the prime minister's insistence that the barrier must stand.

Don Muang residents tear apart and remove big sand bags forming a barrier across Vibhavadi Rangsit Road near Don Mueang airport yesterday. The residents said making a gap in the sandbag wall will help drain away floodwater which is above 1 meter in some areas inside the barrier.

Prime Minister Yingluck Shinawatra said yesterday the Flood Relief Operations Command (Froc) did not order the removal of the bags, weighing up to 2.5 tonnes each.

However, she said the Bangkok Metropolitan Administration will expedite in the next few days the pumping of water retained in the barrier, which is helping to protect the downtown area but at the cost of prolonging the disaster in certain parts of the city's northern and inner-north suburbs.

Ms Yingluck said residents in these areas will find the situation more tolerable once the pumping begins.

About 200 residents met on the crest of the barrier near Don Mueang airport and moved a number of the submerged big bags.

Prime Minister Yingluck Shinawatra meets a crowd of people during a tour of flood-ravaged areas around Phetkasem yesterday.

Protest leader Thinnakorn Janya said residents had removed smaller sandbags piled at the top and opened a 6-metre gap in the barrier on Saturday. 

Yesterday, they moved the big bags underneath. The gap remained at 6 meters wide.

Mr Thinnakorn insisted pulling the big bags away was to release some of the floodwater that has been trapped in more than 20 housing estates and to allow boats used by residents to get through.

As was the case on Saturday, the removal of the bags yesterday was carried out in the presence of senior police from Don Muang police station.

About 40 residents helped to manually move the 2.5-tonne bags.

"It was an adrenalin rush," said Mr Thinnakorn.

He said the police were called to witness the scene and acknowledge the bags' removal. "We don't want to be seen as black sheep or troublemakers," he said.

He conceded the residents were wary that media reports might portray them as villains.

Mr Thinnakorn said the residents inside the barrier deserved understanding because they have lived with the floodwater, which in some areas has surged to more than a meter deep, for three weeks already.

Pheu Thai Party MP for Don Muang Karun Hosakul talked to the residents yesterday and promised he would convince the Froc to dismantle the entire length of the barrier across the out-bound Vibhavadi Rangsit Road.

Mr Thinnakorn said Mr Karun, who acted as a contact for the Froc, told the residents that by 6pm today the command would come in with heavy machinery to dismantle a section of the barrier spanning about 30 meters.

These Buddha statues have been left in floodwater for several weeks at Wat Chan in Bang Kruai district of Nonthaburi.

If not, Mr Karun said he would lead residents in their efforts to take down the barrier themselves, Mr Thinnakorn said.

Mr Thinnakorn said about 80,000 people in affected neighborhoods had been left in the dark because the authorities failed to flesh out details on how and when to salvage communities and ease the floods outside the barrier.

"That's why we suggested they start by opening a gap in the barrier," he said.

The residents gathered on the barrier crest yesterday after it was speculated they might resort to a more drastic measure such as blockading the tollway above Vibhavadi Rangsit Road, which is now the only main route out of Bangkok to the North and Northeast. Another protest option they considered was protesting outside parliament.

Mr Thinnakorn, however, declined to say what the residents planned to do if the government decides to seal the gap.

Froc director Pracha Promnok said public hardship caused by the flood is assessed on a day-to-day basis.

He said people should listen to reason and share the burden of the floods.

The barrier is helpful as it slows water flowing into Bangkok through upper districts, he said.

At the same time, water pumps are deployed to drain away the water.

Many more pumps were put into operation to hasten drainage.

The big bag barrier retains water and, in effect, keeps water at Khlong Bang Sue one of the last lines of defense protecting the inner city at a manageable level, Pol Gen Pracha said.

Deputy Bangkok Governor Thirachon Manomaipibul has voiced his disagreement with opening a gap in the big bag barrier. In a letter to Ms Yingluck, he said he has advised the premier against tampering with the barrier to spare the inner city.

If the barrier is ruptured, it could have far-reaching ramifications on the economy, education and society, he said.

Mr Thirachon said residents affected by the barrier must be given special care.

The government must give them sufficient food and water on a daily basis.

Democrat Party MP Sakolthee Phatthiyakul said the government should increase compensation amounts for residents living in the area affected by the big bag barrier.

Marketers, Agencies Rally During Epic Thai Flooding

Witawat Jayapani has bigger things on his mind than winning his next creative award. Instead, the co-chair of TBWA's critically awarded Creative Juice and a former chair of Thailand's Advertising Association, has spent recent days surrounding his home with 100 sandbags. 

His chief creative officer, Thirasak Tanapatanakul, has sealed his doors and windows with silicone glue before abandoning his house for a safer spot downtown. And half the agency's staff has been evacuated as at least 60% of Bangkok is underwater.

As devastating floods sweep through Thailand, marketers are finding their factories and headquarters underwater and their own staffers  as well as millions of customers  homeless. 

Mr. Jayapani estimates ad spend in a country where the top five advertisers are Unilever, Procter & Gamble, L'Oreal, Beiersdorf and Coca-Cola will plunge by at least 40% in the fourth quarter.

But unlike Japan's sudden earthquake and tsunami earlier this year, Thailand is experiencing gradual devastation as the floodwaters advance, allowing marketers some time to make plans, which are emerging as a blueprint for coping when disaster is encroaching.

Some key lessons for savvy marketers: Use ad budgets to broadcast how people can help themselves and contribute to the relief effort. Participate in that effort, whether by opening shelters or distributing desperately-needed items, by boat if necessary. 

Partner with the best relief groups, like the Red Cross. Focus on your most practical products, such as churning out bottled water around the clock or distributing your cleaning products for the recovery phase. Innovate and create new products suitable to the current calamity.

The current hit product in Thailand is a portable cardboard toilet, used with a plastic bag, from paper conglomerate SCG, which is giving away 1 million units and selling more at a nominal price.

Many marketers are realizing they don't have much choice but to pitch in. Hundreds of plants are underwater, supply chains are disrupted, and potential customers, even if they haven't lost their jobs, are hoarding money to fix up their homes and cars when the floodwaters finally recede.

Entire categories, like automotive, have stopped advertising because either their plants or their parts' suppliers are flooded.

For many in Bangkok, part of the horror is knowing the inundation is still coming.

"The anticipation is terrible and people want the water to come and then go," said Punnee Chaiyakul, chairman of Ogilvy & Mather Thailand, whose Bangkok office was about three kilometers from the floodwaters as of Friday. 

"There is little faith in the government's effort, which is why people and companies have joined together to help each other. International brands, large local companies and the general public have joined in a collaborative effort."

Coca-Cola might be the case study for best practice in a national disaster.

In early October, when it became apparent that the flooding would turn into a national emergency, Coca-Cola's Thailand team took action. The decision was made to cease all product advertising, turning over previously-purchased media to recovery and relief efforts. 

For the fifth-biggest advertiser in the country, spending close to $40 million a year, that's no small commitment, with 119 TV spots, 840 radio spots and three print ads dedicated to the message "Reunite to Relieve and Rebuild Thailand." 

Advertising aimed to raise funds and recruit volunteers for the Thai Red Cross Society and Habitat for Humanity Thailand. Coca-Cola's agency is Ogilvy.

"The current flood in Thailand is the most devastating flood we've seen during our lifetime," said Chanisa Kaewruen, marketing director for Coca-Cola in Thailand. "The overwhelming nature of the flood left millions of concerned Thais helpless."

Coca-Cola has been rallying those people to participate in mobile kitchens set up with the Thai Red Cross. And as floodwaters recede, the company will be working with Habitat for Humanity Thailand to clean up, repair and rebuild more than 590 homes and six schools and shelters across four provinces. 

Ms. Kaewruen estimates the TV spots reached 75% of the Thai public and says the company has already recruited 3,000 volunteers.

In Coca-Cola's bottling facilities, bottled water is being produced in three shifts, 24 hours a day, seven days a week. 

Two bottling plants north of Bangkok are not affected but have been surrounded by deep floodwater. Coca-Cola's headquarters in Bangkok is now inaccessible, Ms. Kaewruen said.

Creative Juice's Mr. Jayapani said he expects the still-spreading floods to last at least another month, with recovery starting in December. 

But many factories are so damaged that repairs are likely to take another three months, pushing start-up back to April 2012, he said.

As flooding continues, Bangkok's usually gridlocked traffic has disappeared as people leave their cars, often entirely wrapped in plastic, on the highest ground they can find.

Thai Floods Won’t Delay Minimum Wage Raise Plan, Kittiratt Says

Thailand’s government will proceed with a plan to raise the minimum wage to spur domestic spending even as companies face the cost of rebuilding after floods devastated industrial estates and shuttered businesses.

The government is considering measures to help companies recover from the disaster, including requests for additional tax incentives and a waiver of import tariffs to replace machinery, Deputy Prime Minister Kittiratt.

Na-Ranong said in an interview Nov. 12 in Honolulu, where he is attending the Asia-Pacific Economic Cooperation forum. The floods may reduce economic growth by as much as 3 percentage points this year, he said.

“I don’t see the wage hike as a suffering” for companies, Kittiratt said. “It would help increase the purchasing power for the domestic market for their businesses in Thailand. For the government, when these people consume more, we get more tax.”

Thai workers and employers agreed last month to a government proposal to boost the minimum wage, fulfilling a campaign pledge that helped propel Prime Minister Yingluck Shinawatra to the role of the nation’s first female leader. 

The agreement will increase wage bills for manufacturers that have seen output tumble as floods swamped about 10,000 factories and stopped production at companies including Honda Motor Co.

Wages in Bangkok and six other provinces will rise to 300 baht a day by April 1, Somkiat Chayasriwong, the labor ministry’s permanent secretary, said last month. 

In the rest of the country, wages will rise an average of 40 percent by April 1 and then to 300 baht ($9.73) per day by 2013, with rates frozen at that level until 2015, he said.

Interest Rates

Thailand’s central bank kept interest rates unchanged at 3.5 percent for the first time this year at its October meeting. 

It had boosted borrowing costs nine times between July 2010 and August this year, more than any other major Asian economy after India.

Thai rates should be lower than the current level, Kittiratt said, citing Bank Indonesia’s decision to cut borrowing costs as an example. 

The Indonesian central bank reduced its benchmark rate by half a percentage point this month after a quarter-point reduction in October.

“I have all the reason to believe that the interest rate in Thailand should be coming down too,” Kittiratt said. “Even before the floods, I didn’t believe that the interest rate in Thailand had to be that high. 

If the interest rate in Thailand were to come down 1 percent in the following year, I’m not going to go against it.”

‘Hold or Cut’

The Bank of Thailand will use monetary policy to help revive the economy from the nation’s worst floods in almost 70 years, which may trim 2011 economic growth to less than 2.6 percent, Deputy Governor Suchada Kirakul said Nov. 8. The central bank’s stance on its key interest rate “should be hold or cut,” Suchada said.

Thailand’s inflation rate held above 4 percent for the seventh straight month in October as the floods destroyed crops and stoked food costs, according to government data.

Yingluck has proposed spending 130 billion baht to help flood victims and rebuild damaged roads, bridges and buildings. She has also set up committees to develop a long-term water management plan.

More than 70 percent of flood victims blame the government for poor preparation and communication, compared with 16 percent who were pleased with the response to the disaster, according to a Suan Dusit poll that surveyed 1,454 people in evacuation centers in Bangkok and its outskirts from Nov. 1 to Nov. 5. The survey had a margin of error of plus or minus 5 percent.

Flooding this year has affected 64 of Thailand’s 77 provinces, damaging World Heritage-listed temples in Ayutthaya province, destroying 15 percent of the nation’s rice crop and swamping the homes of almost 15 percent of the country’s 67 million people, according to government data.

Although water is receding in northern provinces, floodwaters still threaten areas in Bangkok’s north, west and east, Yingluck said at the weekend.

“Thailand was not well prepared but now Thailand will be very well prepared because we can’t afford to see this repeated again in the following years,” Kittiratt said.

Should Thailand Give Up on Bangkok and Move its Capital?

The floodwaters soaking Bangkok are only likely to continue, and in 50 years much of the city may be permanently underwater.

The flooding in Bangkok shows little sign of getting better, and its impact on Thailand's economy and the global supply chain of many computer and automotive components has yet to be fully tallied. 

Japanese companies in particular have made enormous investments in Thailand and have been particularly hard hit by the flooding, but all computer disk drive makers and many car manufacturers have been affected.

People are stranded throughout Bangkok, the government's messages are still confusing and hard to understand, and the divisions in Thai political society have prevented the type of unity in the political system that should be necessary at such a time of crisis. 

In addition, diseases carried by the fetid water are beginning to be a problem in Bangkok and the outlying suburbs. Many foreign investors will now rethink their decisions to place so much of their supply chain in Thailand.

But even more worrying, these floods, which are the worst in Thailand in fifty years, could be a harbinger of the future.

In an excellent story by Agence France Presse , reporters in Bangkok examine why the Thai capital is likely, in years to come, to face similar if not worse floods. 

Such floods could repeatedly devastate Thailand's manufacturing base and threaten the millions of people in the capital, which dominates Thailand as the country's political, cultural, and economic epicenter. 

Urbanization in the city's outlying areas has reduced regions of vegetation that absorbed water in the past; overbuilding in the city core has done the same. 

The capital, built on swamp, is still sinking every year, and with global temperatures rising and weather patterns changing, 

Thailand is likely to face a longer, more intense rainy season for years to come -- which would in turn make the city harder to drain and would more consistently overflow the Chao Praya River. 

The OECD has classified Thailand's capital as one of the ten most endangered cities in the world, according to the AFP report. "In 50 years most of Bangkok will be below sea level," Anond Snidvongs, an expert on water management, told AFP.

One solution that some Thai environmental experts have begun to suggest: Move the whole capital to land that is higher, more secure from flooding, and easier to protect with dikes. 

Some think that, over time, this is the only solution and that  even with continued groundwater pumping, better dikes, and more effective flood management concentrated in one government agency  Bangkok is still too insecure to survive global climate change. 

And the Thais have moved their capital before  from the city of Ayuthaya to Bangkok. But that was in 1782.

Opinion split on success of 'big bags' barrier

Opinion on the success of the "big bags" experiment in alleviating the flooding menace in Bangkok is divided.

Troops and city officials created barriers of 4,000 large bags stuffed with crushed and carbonate rocks and coarse sand, weighing up to 2.5 tonnes each. 

The barriers were put up north of Bangkok to slow water from Khlong Rangsit from flowing into the city.

The government has credited the bags with regulating the flow of water and allowing authorities enough time to pump water out through the canals.

A source at the Flood Relief Operations Command (Froc) hailed the big bag operation a success.

Staff had borrowed the idea from Wat Phra Dhammakaya in Pathum Thani, although other sources said Pairoj Thungthong, the former Uthai Thani MP, had first proposed that oversized bags designed for transporting tapioca flour be filled with gravel and sand and laid as an anti-flood embankment.

Wat Phra Dhammakaya erected the bags around the temple as a defence line against the overflowing Raphipat canal.

The idea was conveyed to Transport Minister Sukumpol Suwanatat, who is in charge of erecting the big bags, by his adviser Chadchart Sittiphan who has a close relationship with the temple.

The minister said the bags were transported by train, a process which took a week to complete.

A source close to ACM Sukumpol said the military, the Bangkok Metropolitan Administration, the Highways Department and the Land Transport Department took part in building the barriers.

Thaweejit Chandrasakha, president of the Association of Siamese Architects, has doubts about whether the big bags really helped.

The bags could help manage water to a certain extent but when flooding became too bad, water must be allowed to take its course, he said. Water that surges fast will subside fast and this is better than prolonging its flow.

"If not, it is like keeping a patient ill," he said. "The big bag issue was also political. If the government is seen as sitting on its hands, it will be criticised. 

It will want to do something, and the bags helped achieve that impression," Mr Thaweejit said.

Deputy Prime Minister Yongyuth Wichaidit said residents behind the big bag barriers where water is still being retained may be given special assistance. He did not elaborate.

Earlier, residents in Don Muang district protested against the big barriers by threatening to close the Don Muang Tollway to traffic.

Others want to sue the government for leaving them inundated for longer than necessary.

Big bag barriers have been formed for 6km along the rail tracks from Pathum Thani to Vibhavadi Rangsit Road; 2km across Don Mueang airport; 2.5km along Chantharubeksa Road; 4km from Khlong Hok Wa to Khlong Phraya Suren; and 1km along Sai Mai Road.

Bangkok Officials Say Thai Flood Threat Easing as Waters Recede

Bangkok officials said floodwater receded further in areas north and east of the Thai capital, easing concern that flooding will spread to the city’s business and tourist districts.

A 6-kilometer (3.7-mile) wall of sandbags has slowed the flow of water into northern districts, the Bangkok Metropolitan Administration said today on its website. 

Floodwater are still threatening Thonburi on the western bank of the Chao Phraya River, the BMA said.

Authorities are maintaining a series of canals, dikes and sandbag barriers to divert a slow-moving pool of water around Bangkok, which sits on the southern tip of a river basin that empties into the Gulf of Thailand.

Water released from dams and higher-than-average rainfall swamped hundreds of factories north of the city last month, crippling global supply chains.

Floodwater in most of Bangkok should recede over the next two weeks if protective barriers hold and no significant volume of water flows toward the city, Governor Sukhumbhand Paribatra said yesterday.

At least 533 people have been killed since late July, when monsoon rains began lashing Thailand. Flooding worsened last month, when rainfall about 40 percent more than the annual average filled dams north of Bangkok to capacity, prompting authorities to release more than 9 billion cubic meters of water down a river basin the size of Florida.

Prime Minister Yingluck Shinawatra yesterday said there was a “slim” chance that the four-month-old flood crisis will worsen, as floods recede in provinces north of Bangkok and the city’s defenses hold.

Nakohn Sawan, Ayutthaya

The provinces of Nakhon Sawan, 218 kilometers (135 miles) north of Bangkok, and Ayutthaya, 78 kilometers from the capital, began flooding in early August. 

Waters eventually rose as high as 3 meters (9.8 feet) in Ayutthaya and took as long as three weeks to reach Bangkok’s outskirts.

Waters more than a meter deep have moved south through Bangkok over recent weeks, forcing the closure on Oct. 25 of the Don Mueang airport, which sits on the city’s northern edge and mostly handles domestic flights. 

Floodwater have reached as far south as Mo Chit, a station on the inner-city rail network known as the Skytrain.

Suvarnabhumi Airport and public transport links are still operating normally. The airport’s perimeter is protected by a 3.5-meter-high dike, according to Airports of Thailand Pcl.