Union resistance means the Thailand Tobacco Monopoly must reconsider its organisational restructuring, said chairwoman Jantima Sirisaengtaksin.

“The policy to change the TTM into a juristic person is not a privatisation, but a restructuring of the organisation aimed at improving flexibility and reducing obstacles to operations,” she said. Currently, the TTM must essentially seek finance ministry approval for nearly any strategic decision, which significantly hinders the agency's ability to respond to changes in the market. Jantima warned that without change, the TTM may very well face collapse, similar to cigarette producers in other countries. The TTM produces the market-leading brand Krong Thip, but has seen its revenues fall sharply in recent years due to stiffer anti-smoking regulations as well as competition from foreign producers such as Philip Morris, Japan Tobacco and British American Tobacco. Jantima said trade liberalisation had caused TTM’s market share to fall to 77 per cent. While still dominant in the market, TTM’s market share had never fallen below 80 per cent, until recently. TTM hopes to boost its market share to 85 per cent by 2010-11 through better cost controls, more efficient production processes and product innovations. (sra)