Headlines summary as of 7 July 2020

News  

• Updates related to COVID-19:
  • Today Thailand reports no newly confirmed cases, a total of 3,195 cases. Out of the total number, 3,072 have been discharged from hospital; 65 are being hospitalised. The death toll is at 58. This is the 44th consecutive day that there is no local transmission in Thailand.
  • Following the leak over the weekend about the visit by the US Army Chief to Thailand, public sentiment and media has turned against the ‘not-so-strict’ COVID-19 countermeasures against the first ever official guests since the pandemic starts. CCSA dismissed the news by saying yesterday that the delegation won’t be quarantined at state facilities, but they will be required to wear face masks during their talks with the prime minister. The delegation will need to be vetted for COVID-19 prior to boarding and after arrival to Thailand. Gen James McConville is scheduled to meet the Army Chief Apirat and PM Prayuth.—all media outlet
  • The Royal Thai Police is forming a special task force to track down tourists infected with Covid-19 as Thailand prepares to reopen its airspace to travellers. Though remains unclear on to what extent the police will monitor tourists. The Tourist Police also propose the creation of an online application (additional) to track tourist movement.
  • Tanarak Plipat, deputy director-general of the Disease Control Department posted on his Facebook expressing his discomfort about Thai people is getting more careless and that the second wave of the pandemic could be imminent. He said that some stores are focusing more on the short-term economic gains than public health concerns, allowing people to sit-in without social-distancing or allow people without a face mask to enter the store.—Than Settakij
  • 52 Chinese business persons is scheduled to arrive Thailand today and will need to be in state quarantine for 14 days.—Khao Sod
• Last evening, their Majesties have returned to Thailand to change the robes of the Emerald Buddha to mark the beginning of rainy season. In the morning, their majesties allowed the audience of Deputy PM and Minister of Public Health Anutin to brief on COVID-19 situation. HM the King also donated 13 COVID-19 mobile testing vans. —all media outlet
• Water level of Thailand’s biggest land dam naming after the Queen Mother Sirikit is at a low level (at 7 percent) due to the drought and intermittent rains. The authority believes that in August-October when rains are expected, the situation of the dam will be better.—Krungthep Turakij

Politics

• Media report on the rumour that the Army Chief Apirat will not go to retirement from the army this September as expected, but will extend his term as the chief of the most influential force in Thailand. The report traces and wrote that  General Chaloemchai Srisawat might like to compete for the next Army Chief as General Nattaphon Narkphanit who is working closely with the PM during COVID pandemic will be nominated for Chief of the Defence Force, the position General Chaloemchai has been eyeing for.—Than Settakij
• The main opposition Pheu Thai Party is set to hold a general assembly at 10.00 hrs on July 10. Media speculates whether the party will make any adjustment to its executive board or not, as the internal rifts within the party have been imminent.
• Super Poll released the result of its latest survey asking should there is an election today, MPs from which party that they will vote for. The result shows that 16.7% will vote for Move Forward; 15.7% will vote for Pheu Thai; 8.7 will vote for Democrat; 8.3% will vote for the main ruling Palang Pracharat Party (PPRP); 6.0% will vote for Bhumjaithai.–Matichon

Business (kindly supplied by Khun Duangporn)

Coconut Export Ban

• The Coconut Grower Network of Prachuab Kirikan province said the UK’s banning of Thailand’s coconut products is a trade barrier imposed as a pretext to condemn Thailand’s undemocratic political system.  The price of coconut is feeling the repercussion and has dropped from 20 Baht to 16 Baht.  Source:  https://www.thansettakij.com/content_Macro_econ/441003

Government’s Stimulus, Monetary and Fiscal Packages

• Commerce Minister Jurin said Thailand no longer uses monkeys to harvest coconut on an industrial scale for its export industry.  The minister will meet with coconut growers and producers today to discuss ways to resolve the misunderstanding reported by PETA that monkeys are abused when they are trained by Thai farmers to pick coconuts.  Source:  https://www.bangkokpost.com/thailand/general/1946820/jurin-denies-industrial-monkey-use
• Finance Ministry is launching tax measures to help businesses.  Corporate tax will be waived until September 2020 for tourism and hospitality operators that retain their employees; the new excise tax on cigarettes and tobacco is postponed until Oct 2021; tax on specific products and services are reduced and export goods can be kept in tax free zone from 30 -120 days.  Sources:  https://www.thaipbsworld.com/finance-rolls-out-tax-measures-to-help-businesses-to-keep-their-employees/  https://www.bangkokpost.com/business/1946928/tax-breaks-to-ease-coronavirus-stress
• The Bank for Agriculture and Agricultural Cooperatives will today transfer Covid-19 financial aid to 73,000 farmers who have passed the appeal review process.  This brings the total number of farmers eligible for the 5,000 Baht cash handouts to 7,596,747.  Source:  https://www.bangkokpost.com/business/1946924/73-000-farmers-to-receive-covid-19-aid-on-appeal
• No companies sought financial assistance from the Bank of Thailand’s Corporate Bond Stabilisation Fund (BSF), reflecting they are still able to access funding sources to roll over maturing bonds.  Source: https://www.bangkokpost.com/business/1947124/investment-grade-firms-avoid-bsf

Others

• The Digital Economy Promotion Agency aims to turn 100 cities nationwide into smart cities in 2 years to improve the economy and wealth equality in line with the 20-year national strategy.  Already, some 39 cities submitted their proposals for Smart City investment privileges from BOI, which will be screened by the National Steering Committee on Smart City Development.  Source:  https://www.bangkokpost.com/business/1947056/depa-proposes-100-smart-cities
• Thailand is seeing a plunge in demand for rubber following the slump in automotive sector in the US and Europe.  Although Thai rubber export benefitted from the surge in global demand for rubber gloves, it could not offset the decline in auto tyres, which account for 51 percent of Thailand’s rubber export shipment.  Source:  https://www.bangkokpost.com/business/1947072/gloomy-outlook-for-local-rubber-industry
• Banking equities have become the worst performing sector in Thailand’s stock market, with the aggregate share price plummeting by 35% year-to-date.  This reflects the anticipation that asset quality and profit will deteriorate as the prospect for bad loan heightens.  Source: https://www.bangkokpost.com/business/1947084/bank-equities-see-plunge
• Retail investors account for the major portion (50 percent) of funds flowing into Thailand’s stock market, causing a surge in small and mid-cap stocks.  From April 2 to June 12, foreign investors were net sellers, while retail investors were net buyers of SET shares.  Liquidity has also flown from the bond market to the stock market as investors seek higher returns.  Source: https://www.bangkokpost.com/business/1947068/emboldened-by-rule-tweaks-retail-investors-flock-to-bourse
• Eastern Polymer Group, the manufacturer of plastics for auto-parts under the Aeroklas brand, contemplates moving into the more lucrative healthcare plastics market.  The company is looking to turn its production of face shields and surgical masks, which are currently manufactured for charity purpose, into commercial operations.  It will complete its feasibility study by year-end.  Source:  https://www.bangkokpost.com/business/1947112/epg-turns-to-healthcare-market-after-sales-drop
• Thailand’s sugar industry needs to rely more on producing value-added products for bio-economy to earn extra revenue as sugar consumption is expected to fall by 10 percent during the pandemic, according to Thai Sugar Millers Corporation.   Source:  https://www.bangkokpost.com/business/1947076/tsmc-advises-bio-economy-sugar-pivot
• Bloomberg expects Thailand’s economy to contract more than others in Southeast Asia, at 6 percent, with a weaker rebound of 4 percent in 2021 despite it being a success story in containing the pandemic outbreak.  This is because of the country’s reliance on international tourism, surges in gold shipments that distort export figures and the Baht appreciation.  Source:  https://www.bloomberg.com/news/articles/2020-07-06/here-s-why-thailand-s-dire-economic-outlook-is-the-worst-in-asia

ASEAN/World

• An opinion pieces on Sino-Thai relations as the two countries commemorate the 45^th anniversary of the official diplomatic relations.—Bangkok Post and the Editorial in Bangkok Post

Australia

• Prof Dr Pasuk Phongpaichit, an alumni for Bachelor and Master Degree at Australian Monash University, has been appointed as a member of the Royal Society of Thailand on Economics.—Khao Sod
• The Thai outlet of China Radio International published its opinion piece criticising the stern Chinese stance of Australian politicians. The article wrote that “some Australian politicians should know that they should adjust their stances on China for the sake of Australians’ interests.”—CRI Online Thai