KEY ISSUES AT A GLANCE
- Inflation poses biggest challenge to economic recovery. Low-income groups and small businesses face strong impacts from the soaring inflation and potential interest rate hikes, wherein such situation may make it necessary for the government to continue its support for vulnerable groups. Bank of Thailand said it was likely to slow down interest rate hike as the threat of inflation becomes more apparent despite economic recovery, which had resulted in the interest rate being pegged at the current historic low of 0.5 percent. Source: Thai PBS World
- Export gain could beat state target. Export growth is expected to surpass the government’s forecast of 4-5 percent expansion in 2022 after a strong growth of +12.9 percent (valued at USD123 billion) in the first 5 months of this year, according to Commerce Ministry. In May, Thailand’s export grew by 10.5 percent YoY (valued at USD 25.5 billion), while imports increased by 24.2 percent (valued at USD27.4 billion), resulting in a trade deficit of USD1.87 billion. Exports of industrial products exhibited growth, indicating that demand from major trading partners still grew despite the impact of the prolonged Russia-Ukraine conflict, inflation concerns and lockdowns in some Chinese cities. Source: Bangkok Post
- US-led naval drills begin amid tension. A major multinational naval exercise led by the US Navy has been launched in the Pacific with 25 other nations participating amid growing US-China tensions. US allies in the Indo-Pacific region including Japan, South Korea, Australia, New Zealand and the Philippines are participating in the biennial Rim of the Pacific exercise, regarded as the world’s biggest naval training starting from Wed last week, according to the US Navy. Source: Bangkok Post Print Edition
- Karen refugees flee across border as Myanmar continues airstrikes. Thailand is gearing up for an influx of Karen refugees as the Myanmar army continues bombing Karen villages in the border town of Myawaddy. A Myanmar fighter jet bombed two villages on Saturday, killing three people and injuring three others. The injured have been sent across to Tak’s Phop Phra district for treatment. Of those killed, one held a Thai ID card, the second a card of hilltribe people and the third a 10-year stay permit. Refugees, meanwhile, have been streaming across the border, and as of press time, the number of people seeking shelter at the Ban Muen Rue Thai community had swollen to 255. Separately, Prime Minister Prayut Chan-o-cha said that Myanmar’s military government has offered an apology for its MiG-29 fighter jet straying into Thai airspace on Thursday. Prayut, who also doubles as the defence minister, has called on people to have faith that the Thai Army will successfully protect national sovereignty, adding the incident was “no big deal”. Source: The Nation, Bangkok Post
GENERAL
- Bangkok administration may increase tree planting to two million. Due to the positive public response to the Bangkok Metropolitan Administration’s (BMA) plan to plant one million trees over four years, the target may be increased to two million trees, Bangkok Governor Chadchart Sittipunt said today (Sunday). The governor joined members of the public, including Canadian Ambassador Sarah Taylor, in planting 130 trees today at Wachira Benchathat Park (Rot Fai) Park. Today is Canada’s National Day. After designating Sundays as tree planting days in Bangkok, the governor said he is pleased that about 1.3 million trees have already been offered by the people of Bangkok, adding that he might increase the target to two million. Source: Thai PBS World
- Heavy rains can bring flash floods to 23 provinces, including Bangkok. A strong southwest monsoon prevailing over the Andaman Sea and the Gulf of Thailand will possibly hit 23 provinces with flash flooding on Monday and Tuesday. The Disaster Prevention and Mitigation Department said heavy rainfall over the two days may increase water levels and cause rivers to overflow. Hence, it said, residents should monitor water levels closely and follow weather forecasts provided by the Thai Meteorological Department. Provinces facing the risk of flash floods include Bangkok, Samut Sakhon, Samut Songkhram, Samut Prakan, Chachoengsao, Chonburi, Rayong, Chanthaburi, Trat, Phetchaburi, Prachuap Khiri Khan, Chumphon, Surat Thani, Nakhon Si Thammarat, Songkhla, Pattani, Narathiwat, Ranong, Phang Nga, Phuket, Krabi, Trang and Satun. Source: The Nation
AUSTRALIA IN THE NEWS
- Thousands ordered to evacuate from Sydney floods. AFP – Australia’s emergency services ordered thousands of people in Sydney to evacuate Monday as overflowing rivers swamped swathes of land and the city’s largest dam spilled torrents of water. On the third day of torrential rains on the east coast, rescuers said they had saved about 20 people in the past 12 hours, many trapped in cars on flood-swept roads in New South Wales. Australia has been at the sharp end of climate change, with droughts, deadly bushfires, bleaching events on the Great Barrier Reef and floods becoming more common and intense as global weather patterns change. Source: Thai PBS World, Khaosod
- Australia hails ‘new start’ with Paris. Australian Prime Minister Anthony Albanese welcomed a ‘new start’ in relations with France as he met President Emmanuel Macron in Paris on Friday, after an acrimonious row between the countries over a submarine contract last year. “My presence here represents a new start for our countries’ relationship,” Mr Albanese said after arriving at the Elysee Palace. “Australia’s relationship with France matters. Trust, respect and honesty matter. This is how I will approach my relations,” he said. Source: Bangkok Post Print Edition
- US-led naval drills begin amid tension. A major multinational naval exercise led by the US Navy has been launched in the Pacific with 25 other nations participating amid growing US-China tensions. US allies in the Indo-Pacific region including Japan, South Korea, Australia, New Zealand and the Philippines are participating in the biennial Rim of the Pacific exercise, regarded as the world’s biggest naval training starting from Wed last week, according to the US Navy. Source: Bangkok Post Print Edition
- DITP reveals Australians are interested in Thailand’s rice-organic products Ministry of Commerce’s Department of International Trade Promotion showcased Thai products at the Naturally Good Expo 2022 in Sydney, Australia in early June. The showcase was themed Rice, Heart of Thailand, Heart of APEC with exhibition featuring decoration made from recyclable materials in line with the APEC MRT’s resolution and BCG principles. Products that were highly popular among Australian visitors included food snacks and Thai organic Riceberry, as well as non-food items such as skincare. Source: Bluechipthai.com
COVID/ HEALTH
- 1,995 new cases and 18 deaths. Source: Department of Disease Control, Ministry of Public Health
POLITICS
- Karen refugees flee across border as Myanmar continues airstrikes. Thailand is gearing up for an influx of Karen refugees as the Myanmar army continues bombing Karen villages in the border town of Myawaddy. A Myanmar fighter jet bombed two villages on Saturday, killing three people and injuring three others. The injured have been sent across to Tak’s Phop Phra district for treatment. Of those killed, one held a Thai ID card, the second a card of hilltribe people and the third a 10-year stay permit. Refugees, meanwhile, have been streaming across the border, and as of press time, the number of people seeking shelter at the Ban Muen Rue Thai community had swollen to 255. Separately, Prime Minister Prayut Chan-o-cha said that Myanmar’s military government has offered an apology for its MiG-29 fighter jet straying into Thai airspace on Thursday. Prayut, who also doubles as the defence minister, has called on people to have faith that the Thai Army will successfully protect national sovereignty, adding the incident was “no big deal”. Source: The Nation, Bangkok Post
- Cybersecurity MoU with Israel a mutual ‘first step’. Thailand is expected to sign a cybersecurity agreement with Israel, touted as the first step towards greater collaboration between the two countries, during a ceremony in Bangkok this week. The signing of the memorandum of understanding on “Cyber Security Cooperation” will occur on Wednesday at Sofitel Bangkok Sukhumvit Hotel, according to the Israeli embassy. The agreement will be the first international cybersecurity MoU between Thailand and another nation, it said. The embassy added that for the past three decades, Israel has been providing cybersecurity solutions that enhance security in other nations and for organisations around the world. Source: Bangkok Post
- Govt ‘will battle on to 2023’. Defuse s272 ‘time bomb’, urges Abhisit. Former prime minister Abhisit Vejjajiva said the Prayut Chan-o-cha government will try to stay on until the end of its tenure next year, though it will struggle with a range of challenges that will cause its popularity to wane. Speaking on Sunday at a seminar on the future of Thai politics held by the National Press Council of Thailand to mark its 25th anniversary, Mr Abhisit said the period of two years from now will be an important turning point. “I believe the government and the prime minister will try to make sure they can complete their term [before the government’s tenure expires next March]. There is no reason why the government and the prime minister want an early election. ”With less than one year left in office, the government will encounter difficult challenges from economic and social issues that will make the government unpopular,” said the former leader of the Democrat Party. Source: Bangkok Post
ECONOMICS
- 9.3 Million Tourists Expected in 2022. Thailand projects it will see over 7 million tourists visiting the kingdom in the second half of this year, generating total revenue of 1.27 trillion Baht. Ministry of Tourism and Sports anticipated that 2.7 million tourists will enter Thailand from July – September, with another 4.5 million visiting from October – December, bringing total arrival number in 2H to 9.32 million. From January 1 – June 28, some 1,978,000 foreigners had visited Thailand. The majority came from Malaysia, Laos, Cambodia, Vietnam and China. Source: National News Bureau of Thailand
- Thai-Saudi proceeds with trade and investment after normalising relationship Rudyard Chamber of Commerce will bring 80 businessmen to visit Thailand from 4-8 July to negotiate business with the Thai private sector. At this business matching event, the focus will be on industrial, telecommunication, tourism, entertainment, gold and jewellery, agriculture, medical, electronics and human resources sectors. For 2022, Thai export to Saudi Arabia is expected to increase by 6.2 percent from 51.5 million Baht in 2021. Promising Thai products are from agriculture, industrial and service sectors. Source: Krungthep Turakij
- Lack of flights, rising fuel costs mar revival. Insufficient inbound international flights and surging airfares are challenging the recovery of the Thai tourism industry as the country pins its hopes on the upcoming high season in its quest to welcome 10 million tourists this year, said the Tourism Authority of Thailand (TAT). TAT Governor Yuthasak said the number of international flights stands at only 30 percent of the pre-pandemic level. He said to help revive the whole industry, Thailand should have at least 55 percent of the airline seat capacity recorded compared to pre-pandemic time, which might be achieved in Q4 as Korean Air and Air Canada have confirmed their schedules for non-stop services. Source: Bangkok Post
- Inflation poses biggest challenge to economic recovery. Low-income groups and small businesses face strong impacts from the soaring inflation and potential interest rate hikes, wherein such situation may make it necessary for the government to continue its support for vulnerable groups. Bank of Thailand said it was likely to slow down interest rate hike as the threat of inflation becomes more apparent despite economic recovery, which had resulted in the interest rate being pegged at the current historic low of 0.5 percent. Source: ThaiPBS World
- Export gain could beat state target. Export growth is expected to surpass the government’s forecast of 4-5 percent expansion in 2022 after a strong growth of +12.9 percent (valued at USD123 billion) in the first 5 months of this year, according to Commerce Ministry. In May, Thailand’s export grew by 10.5 percent YoY (valued at USD 25.5 billion), while imports increased by 24.2 percent (valued at USD27.4 billion), resulting in a trade deficit of USD1.87 billion. Exports of industrial products exhibited growth, indicating that demand from major trading partners still grew despite the impact of the prolonged Russia-Ukraine conflict, inflation concerns and lockdowns in some Chinese cities. Source: Bangkok Post
OTHER
- Who makes the best donuts in Bangkok? Source: BK Magazine Online
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