E-Malt.com News article: Thailand: Buddhists monks demonstrate against listing of Thai Beverage PCL

About 5 000 Buddhist monks, nuns and students demonstrated on Wednesday, July 20, outside the Thai Securities and Exchange Commission to protest plans by the country's largest beer company to list its shares on the market, saying the need to make a profit would encourage drinking. Thai Beverage's owner Charoen Siriwattanapakdi is the richest man in Thailand, with assets estimated at $3 billion by Forbes magazine.

The protest by a coalition of 128 anti-vice groups came after last Thursday, Thai Beverage PCL, which makes the country's best-selling Chang beer (Elephant Beer), submitted an application for listing on the Stock Exchange of Thailand.

"Followers of Buddhism, Christianity, and Islam all suffer from the negative effects of alcohol, so how can the Securities and Exchange Commission stand by its decision," said the leader of the protest, Chamlong Srimuang, a political mentor of Thai Prime Minister Thaksin Shinawatra.

Police estimated the number of protesters at 3,000, but reporters believed it was closer to 10,000. The demonstrators were largely members of Buddhist religious organizations, inspired by the religion's principle of abstinence from alcohol. Many carried Thai flags and banners with slogans such as “If you love Thailand, oppose the listing of alcoholic beverages on the SET.''

“My father was killed by a drunk driver. Who is responsible?” read another banner. Several hundred monks took part in the protest, which occurred on the eve of one of the year's most important Buddhist holidays, Visakha Bucha. “If the company is listed on the stock exchange, the price of beer will be cheap and people will buy more beer,”said a Buddhist monk who uses the single name Chinnakrit.

Buddhism, the main religion in Thailand, teaches followers to refrain from consuming alcohol, but most people ignore the rule and beer consumption is high. Muslims, whose religion also opposes drinking, were also among the protesters. Former Bangkok Governor Chamlong Srimuang, a longtime political activist and devout Buddhist, told the crowd: “We are here to stop the apocalypse that would occur as a result of Beer Chang being listed on the stock exchange.” Pattariya, the senior SET official, said the exchange would consider the protesters'' demand.

Earlier on Wednesday, SET Secretary General Thirachai Phuvanatnaranubal, told reporters that “There is no law or regulation barring a beer company from listing on the stock exchange if the application meets all the requirements.” Chamlong said the protesters would submit some 63,000 signatures to Parliament later on Wednesday calling for a new law banning tobacco and alcoholic beverage companies from listing on the exchange. Under Thailand's Constitution, ordinary citizens can propose a new law if they gather at least 50,000 signatures. The beer company, owned by liquor tycoon Charoen Sirivadhanabhakdi, has said it hopes to raise up to 40 billion baht (US$950 millions; euro788 millions) through its initial public offering, which would be the biggest in the Thai market's history.

Thailand already ranks fifth in the world for alcohol consumption, according to the UN Food and Agriculture Organisation, and Chamlong claimed a public listing would only push that rate higher. "By listing on the stock exchange, the company could earn 100 billion baht (R15.8 billion). That money would be spent on all types of marketing promotions to encourage the public to consume its product," Chamlong Srimuang, a political mentor of Thai Prime Minister Thaksin Shinawatra, said. Chamlong also warned that road deaths would rise because of increased cases of drunk driving.

Public health statistics indicate some 72 percent of road accidents in Thailand are caused by drunk driving, leaving thousands dead or injured.

The protesters marched through downtown Bangkok from the SEC to the stock exchange's building located a few kilometres away.

In addition to Chang beer, which sponsors the Liverpool-based Everton football club, Thai Beverage also produce popular local whisky brands such as Mekong, Sangsom, and Hongthong.

The SEC postponed a decision on whether to list Thai Beverage in March, amid large protests.


20 July, 2005