Headlines summary as of 4 February 2021

News

• Updates related to COVID-19:

• Southern resort island Phuket is eyeing to inoculate 250,000 residents in the hope the government will allow it to fully reopen to foreign tourists by October. The Phuket Chamber of Commerce and the Phuket Tourist Association will lead the initiative which will need government approval, and also seeks to waive a mandatory 14-day quarantine requirement for vaccinated tourists. The tourism-reliant island which conventionally welcomed more than one-fourth of the country’s tourists witnessed the revenue dropped by 78 percent.—Reuters, Bloomberg
• The Tourism Authority of Thailand has updated the provincial entry and exit rules as health authority is easing its restrictions. https://www.tatnews.org/2021/02/provincial-entry-and-exit-rules-as-thailand-eases-covid-19-control-measures/

Politics

• The Royal Gazette has published the 3^rd Emergency Decree order banning the protest or gathering citing the reasons to curb the spread of pandemic. The order has indicated the penalty for violating at maximum two years jail term or 40,000 THB fine.—Krungthep Turakij
  • The Chief of Defence Forces elaborated the order saying that it aims at curbing the spread of COVID-19. For provinces other than the Maximum Controlled Area and High Controlled Areas, the security apparatus will inform the governors to prosecute  the preparators decisively.—Thai News Agency
• The coup in Myanmar is creating a resonating effects on many Thai political fronts:
  • Deputy Prime Minister and Minister of Energy Supattanapong Punmeechaow said after a meeting with the PM that the coup will have minimal impact on Thai economy. However, the investment in Dawei Special Economic Zone will have to be put on hold for now.—Thai Enquirer
  • The Hunger-Game three finger salute has been used as a defiant gesture against the junta. The symbolic gesture also includes the hitting of aluminium utensils to cause a sound of dissent.—The Standard
  • There will be a gathering in front of Myanmar Embassy on North Sathon Road this evening from 8.00 pm to express solidarity with Myanmar people.
• Bloomberg ran a piece on the revival of royal defamation law after years of suspension. Pundits warned that that use of the law could backfire in the long run. Christopher Ankersen, associate professor at New York University’s School of Professional Studies regarded the latest jail term for a state official who got charges with Article 112 as a warning to other government officials to remain loyal to the king and ensure others don’t “mainstream critical dissent against the monarchy”. Tamara Loos, a professor of history and Thai studies at Cornell University in Ithaca, New York said that the law is a short-term solution for what is a long-term problem — and that is that people won’t be silenced.–Bloomberg

Economic:

HOM’s meeting with Commerce Ministry’s Perm Sec

• Ministry of Commerce’s Permanent Secretary Boonyarit Kalayanamit met Australian Ambassador Allan McKinnon PSM on 28 January to discuss ways to elevate the Thai-Australian trade and economic relationship beyond TAFTA.  Australia proposed of elevating the cooperation with Thailand on sectors including tourism and health tourism; agriculture; energy and digital economy.  Both countries agreed to progress on this cooperation through the Strategic Economic Partnership concept.  Furthermore, Australia also praised Thailand for its ASEAN chairmanship in 2019 that led to the concluding of RCEP.  Source:  Department of Trade Negotiations news  Thailand’s Public Relations Department News

Vaccines

• At least 10 hotels, tourism and chambers of commerce in Phuket have agreed to pool resources to procure COVID-19 vaccines and inoculate at least 70 percent of its residents (250,000 people) in the hope of opening up the island to international tourists by 1 October.  Foreign tourism revenue in Phuket dropped 78 percent to 87.5 million Baht in 2020 with 2.1 million arrivals. Phuket’s private vaccination drive would cover most adults before a nationwide government immunisation program for the public starts in June 2021.  Source. Reuters

• The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) suggests the government make Covid-19 vaccination a national agenda, with 5 million doses set aside for tourism workers.  They should be inoculated first, as soon July since they are crucial in restoring the economy.  Source:  Bangkok Post

Ease of Doing Business

• DPM and Energy Minister Supattanapong has established an ad hoc committee to devise new measures to lure investments from Regional Operating Headquarters (ROH) and into the 12 targeted industries.  Adjustments will also be made to existing laws, regulations and work permits to attract 400 billion Baht worth of investment applications through the Board of Investment this year.   The new privileges are set to be finalised within 60 days and will also be proposed to the Prime Minister for final consideration.  Source:  Bangkok Post

Others

• PM Prayut agreed to allocate 400 billion Baht to provide financial aids to an estimated 9 million employees of private firms who are insured under Section 33 of the Social Security Act.  The proposal that each employee receive weekly payment of 1,000 Baht starting next month and the requirement that they must have no more than 500,000 Baht of bank deposit will be finalised by the cabinet next week.  This scheme will cover those insured under Section 33 who are not eligible to receive the 7,000 Baht handout through the Rao Chana scheme.  Source: Bangkok Post  Thansettakij

• Bank of Thailand (BOT) held the policy rate at 0.5 basis point yesterday in a unanimous decision, after cutting by a total of 75 basis points in 2020.  BOT wants to preserve its policy space to use at the proper time, but is also prepared to use additional monetary tools and was assessing the need for new measures in the FX market.  The central bank may also lower the 3.2 percent growth forecast for the Thai economy this year as tourist number is likely to miss the already lowered expectations.  Source: Bloomberg Bangkok Post 

• Modern trade sentiment fell to a 2-year low in Q4 of 2020 as operators were concerned about the crisis, also exacerbated by weak consumer purchasing power.  The Thai Chamber of Commerce revealed that the modern trade sentiment index was 47.3 points out of 100, slightly lower than 47.4 points in Q3.  Modern trade is estimated to represent about 66.3 percent of the country’s wholesale and retail market.  Source:  Bangkok Post

Headlines summary as of 3 February 2021

News

• Updates related to COVID-19:

• Deputy Secretary-General of the Thai FDA revealed with Reuters that Johnson & Johnson is seeking Thailand’s approval for its COVID-19 vaccine. The vaccine is the third COVID-19 vaccine seeking registration from Thailand, following AstraZeneca and Chinese Sinovac.–Reuters

Politics

• The crack within the coalition remains salient as:
  • Deputy PM Prawit and Palang Pracharat Party (PPRP) leader said the main coalition party does not have a problem with coalition Democrat Party, even the former is going to file their candidate in the by-election in a Democrat stronghold province. The party leader said that it is just the media trying to stir the conflicts.
  • On intra-PPRP conflict regarding the nomination of BMA governor, the DPM said that he does not think to nominate anyone, not to mention to nominate under the PPRP candidacy.–Matichon
• The coalition whip revealed that the cabinet has approved the censure debate to be held from 16-19 February and the vote will be held on 20 February.  The whip from PPRP said that, for unity purpose, the party’s MPs will vote for all ministers in the censure motion. The whip also affirmed that there is no secret deal with the main Opposition Pheu Thai Party, saying that should there is a secret deal, the allegation the Opposition-led by the Pheu Thai Party made against the government must have been softer.–ThaiPBS
• Freshly established royalist Thai Pakdee Party is launching a campaign to collect 100,000 signatures against the prospective Move Forward Party’s proposal to amend the royal defamation law (lese majeste).—Than Settakij

Economic:

Cabinet’s Decisions, 2 February 2021

• Government-certified blue flag shops, entrepreneurs that operate through trucks and shops that have enrolled in the co-payment subsidy scheme Khon La Krueng are now eligible to register for the cash handout under the Rao Chana scheme by registering through www.เราชนะ.com from 29 Jan – 31 March 2021.  Since 29 January, some 8.2 million people have registered through the Rao Chana website.  Source:  Manager Online  Prachachat Turakij

Others

• Thailand is the 6^th largest investor in Myanmar, with 150 companies currently investing in Vietnam in a range of sectors, according to Board of Investment (BOI).  With the sudden change in Myanarm’s leadership, most Thai investors are taking a wait and see approach, with a few deciding to hold back investment plans.  The case in point is Kasikorn Bank, which is postponing its merger plan with Ayeyarwaddy Farmers Development Bank : A bank for 1 year.  Thailand’s Amata Corporation will also halt its 140 million Baht first-phase investment in the Yangon Amata Smart and Eco City (YASEC) until a new election takes place in Myanmar.  Sources:  Prachahcart Turakij, 4-7 February 2021, Thansettakij 3 February 2021, Bangkok Post
• COVID-19 outbreak has caused a structural shift in Thailand’s food industry.  Industry Ministry reported that most businesses that have shut down are suppliers of food produce and ingredients to restaurants and hotels, which constitute 50-70 percent of the industrial food segment.  However, health and pet food saw a 20 percent growth.
• Industry Ministry reported that in 2020, some 719 factories with investment worth 42 billion Baht have ceased operation, causing almost 30,000 to become unemployed.  However, this figure is better than in 2019 where 1,391 factories have shut down.  Moreover, the number of new factories that opened in 2020 surged to 3,324 with investments totaling 325 billion Baht.  It created employment for 187,088 people, mostly in industrial food sector.   Industry Ministry remains optimistic that despite the COVID-19 outbreak last year, businesses are still expanding, indicating that investors are still keen to invest in Thailand.  Source:  Prachachart Turakij, 4-7 February 2021
• Federation of Thai Capital Market Organization (FETCO) said Investor Confidence Index in January 2021 rose by 1.5 percent from December 2020. In the next 3 months, investor confidence is expected to remain in the bullish territory, boosted largely by foreign inflow, the prospect of COVID-19 vaccine and higher earnings of listed companies.  FETCO expects foreign investment to flow into Thailand in the second half of 2021, when tourism starts to recover wherein Thai shares will continue to be on the uptrend in 2022.  Sources:  Naew Na Bangkok Post
• Export this year could surge above 3-4 percent on the condition that the government curb the strong Baht and fix the container shortage problem, said the Thai National Shippers’ Council.  It will discuss this issue with Commerce Ministry tomorrow.  Source:  Bangkok Post
• Finance Ministry and Bank of Thailand have agreed to amend the soft loan decree to allow SMES to better access low-interest loan.  Amendment process is set to start in September, but must first be approved by the parliament’s commission committee first.  Available since last year, the BOT’s 500 billion Baht soft loan for SMEs was slow to gain traction, with only 120 billion Baht disbursed to SME borrowers.  Source:  Bangkok Post
• Suzuki Motor Thailand reported that its domestic car sales rose by 7 percent YoY in 2020 to 25528 units, owing much to its marketing and sales strategies that adopted a customer-centric approach.  This is in a stark contrast to the overall domestic car sales in Thailand that decreased by 21.4 percent YoY to 792146 units.  Source:  Bangkok Post

Headlines summary as of 2 February 2021

News

• Updates related to COVID-19:

• CCSA deputy spokesperson said that the tendency of the new round of infection is getting better. Should the trend is moving towards the better, there will be a new round of lockdown easing.
• On the weekend, the Bangkok Governor signed a new order easing the pandemic restrictions.
  • The dining hours has been extended from until 9.00 pm to until 11.00 pm
  • Alcoholic beverages are not yet allowed when dining in.
  • For meetings and seminars, the maximum participant should be no more than 100 people. Alcoholic beverages and music performances with dancing are not allowed.
  • Educational Institutions should organise classes on alternate (on-site and on-air) basis.

Politics

• Yesterday, the Criminal Court ruled that the FB live clip by Thanathorn Juangroongruangkit, the former leader of the defunct Future Forward Party could breach national security and must be removed from the internet. The criminal court and the Ministry of Digital Economy for Society will prosecute Thanathorn for violating royal defamation law in due course. In the clip, the opposition leader accused the government for preferential treatment of King-owned Siam Bioscience to produce vaccine for local usage. The company received a 600 million baht ($20 million) subsidy to develop capacity to manufacture AstraZeneca vaccines domestically and across Southeast Asia.–Reuters
• After the confirmed putsch in Myanmar and the detention of Aung San Suu Kyi, Thai media are reporting on the relationship between the coup-maker General Min Aung Hlaing and late Privy Councillor General Prem. The former respects the latter as “step-father”.–Prachachat
  • WeVo group is calling for a gathering in front of Myanmar Embassy on Sathon Road from 3.30 pm.

Australia

• Panitan Wattanayakorn, chairman of the PM’s Security Advisor Committee, gave an interview with ThaiPBS on the new Biden administration and its implication on Thai politics. The security pundit mentioned that the Australian prisoner transfer deal with Iran is overseen by the US. Dr Panitarn said the deal could not be done without the American-Thai close ties.(9.00 min onwards)–ThaiPBS

Economic:

CPTPP

• The CPTPP Parliament Committee has officially submitted the results of its studies regarding Thailand’s accession to CPTPP to the cabinet on 26 January.  The cabinet had subsequently assigned the International Economic Policy Committee to consider the Parliament Committee’s recommendations and provide assessment on Thailand’s terms and readiness to negotiate for CPTPP accession within 90 days.  Source:  Krungthep Turakij newspaper, 1 February 2021

Ease of Doing Business

• To improve Thailand’s ease of doing business, Commerce Ministry with the Board of Investment (BOI) and Digital Government Agency unveiled the e-Foreign Certificate system.  It enables foreign investors to submit BOI investment application and other business-related documents through an e-system, for which the certificate will be issued digitally within 5 days instead of 30 days.   The system also accommodates e-payment as well as digital signature.  Sources:  Siam Rath Thansettakij

Other

• In December 2020, export resumed growth (+4.6 percent YoY) for the first time in 10 months, fuelled by higher demand from global electronics cycle, revealed the Bank of Thailand (BOT).  The December 2020 import dropped by 0.1 percent YoY, thus imparting a smaller current account deficit of USD 693 million and trade surplus of USD 2.8 billion.  Overall economic activities in Q4 of 2020 may have improved, but recovery remained uneven.  Despite the expansion of export, private investment and private consumption, tourism continued to contract.  Source:  Bank of Thailand press release Bangkok Post
• Finance Ministry expects it will not need to borrow beyond 1 trillion Baht to combat the current COVID-19 outbreak, thereby Thailand’s debt to GDP ratio will be kept below 60 percent as articulated in its 4-year fiscal projection (Year 2022-2025).  The debt to GDP ratio would exceed 60 percent if there is a third wave of outbreak, but Finance Ministry affirms that the breach of 60 percent ceiling will not affect fiscal stability due to Thailand’s robust fundamentals.  Source:  Bangkok Post
• Excise tax structure for Electric Vehicles (EV) will be finalised this year in a move to establish Thailand as a regional EV manufacturing base.  Excise Department must devise a tax policy to create  product champion that promtoes clean energy technology to support EV use, such as the body and batteries of EVs.  Widespread use of EV is not anticipated in Thailand for at least 10 years.  Source:  Bangkok Post
• The Thai Chamber of Commerce and Thai Hotels Association discussed with the Ministry of Tourism and Sports about a proposal for hotel quarantine, to be launched in March.  Tourism Ministry also expects Thailand to receive only 5 million international arrivals in 2021; half the original forecast of 10 million as the pandemic ravages the tourism industry worldwide.   Tourism Ministry also urged the government to allocate 5 million doses of vaccine for tourism workers in the early stage of the inoculation program.  Source:  Bangkok Post
• Tourism Authority of Thailand said COVID-19 vaccine will be a game-changer for the tourism industry.  Meanwhile, the Association of Thai Travel Agents (ATTA) called for the government to draw up clear policies and entry rules for inoculated travelers by Q3 this year, as well as to establish the vaccine passport framework within Southeast Asian nation.  ATTA contended that the 14-day quarantine requirement is preventing the number of tourist arrivals from reaching its goal of 10 million, while also asking the government to establish the first stage of travel bubbles by mid-year.  Source:  Bangkok Post

Headlines summary as of 1 February 2021

News

·  Updates related to COVID-19:

• CCSA deputy spokesperson said that the tendency of the new round of infection is getting better. Should the trend is moving towards the better, there will be a new round of lockdown easing.
• On the weekend, the Bangkok Governor signed a new order easing the pandemic restrictions.
  • The dining hours has been extended from until 9.00 pm to until 11.00 pm
  • Alcoholic beverages are not yet allowed when dining in.
  • For meetings and seminars, the maximum participant should be no more than 100 people. Alcoholic beverages and music performances with dancing are not allowed.
  • Educational Institutions should organise classes on alternate (on-site and on-air) basis.

Politics

• Yesterday, the Criminal Court ruled that the FB live clip by Thanathorn Juangroongruangkit, the former leader of the defunct Future Forward Party could breach national security and must be removed from the internet. The criminal court and the Ministry of Digital Economy for Society will prosecute Thanathorn for violating royal defamation law in due course. In the clip, the opposition leader accused the government for preferential treatment of King-owned Siam Bioscience to produce vaccine for local usage. The company received a 600 million baht ($20 million) subsidy to develop capacity to manufacture AstraZeneca vaccines domestically and across Southeast Asia.–Reuters
• After the confirmed putsch in Myanmar and the detention of Aung San Suu Kyi, Thai media are reporting on the relationship between the coup-maker General Min Aung Hlaing and late Privy Councillor General Prem. The former respects the latter as “step-father”.–Prachachat
  • WeVo group is calling for a gathering in front of Myanmar Embassy on Sathon Road from 3.30 pm.

Australia

• Panitan Wattanayakorn, chairman of the PM’s Security Advisor Committee, gave an interview with ThaiPBS on the new Biden administration and its implication on Thai politics. The security pundit mentioned that the Australian prisoner transfer deal with Iran is overseen by the US. Dr Panitarn said the deal could not be done without the American-Thai close ties.(9.00 min onwards)–ThaiPBS

Economic:

CPTPP

• The CPTPP Parliament Committee has officially submitted the results of its studies regarding Thailand’s accession to CPTPP to the cabinet on 26 January.  The cabinet had subsequently assigned the International Economic Policy Committee to consider the Parliament Committee’s recommendations and provide assessment on Thailand’s terms and readiness to negotiate for CPTPP accession within 90 days.  Source:  Krungthep Turakij newspaper, 1 February 2021

Ease of Doing Business

• To improve Thailand’s ease of doing business, Commerce Ministry with the Board of Investment (BOI) and Digital Government Agency unveiled the e-Foreign Certificate system.  It enables foreign investors to submit BOI investment application and other business-related documents through an e-system, for which the certificate will be issued digitally within 5 days instead of 30 days.   The system also accommodates e-payment as well as digital signature.  Sources:  Siam Rath Thansettakij

Other

• In December 2020, export resumed growth (+4.6 percent YoY) for the first time in 10 months, fuelled by higher demand from global electronics cycle, revealed the Bank of Thailand (BOT).  The December 2020 import dropped by 0.1 percent YoY, thus imparting a smaller current account deficit of USD 693 million and trade surplus of USD 2.8 billion.  Overall economic activities in Q4 of 2020 may have improved, but recovery remained uneven.  Despite the expansion of export, private investment and private consumption, tourism continued to contract.  Source:  Bank of Thailand press release Bangkok Post
• Finance Ministry expects it will not need to borrow beyond 1 trillion Baht to combat the current COVID-19 outbreak, thereby Thailand’s debt to GDP ratio will be kept below 60 percent as articulated in its 4-year fiscal projection (Year 2022-2025).  The debt to GDP ratio would exceed 60 percent if there is a third wave of outbreak, but Finance Ministry affirms that the breach of 60 percent ceiling will not affect fiscal stability due to Thailand’s robust fundamentals.  Source:  Bangkok Post
• Excise tax structure for Electric Vehicles (EV) will be finalised this year in a move to establish Thailand as a regional EV manufacturing base.  Excise Department must devise a tax policy to create  product champion that promtoes clean energy technology to support EV use, such as the body and batteries of EVs.  Widespread use of EV is not anticipated in Thailand for at least 10 years.  Source:  Bangkok Post
• The Thai Chamber of Commerce and Thai Hotels Association discussed with the Ministry of Tourism and Sports about a proposal for hotel quarantine, to be launched in March.  Tourism Ministry also expects Thailand to receive only 5 million international arrivals in 2021; half the original forecast of 10 million as the pandemic ravages the tourism industry worldwide.   Tourism Ministry also urged the government to allocate 5 million doses of vaccine for tourism workers in the early stage of the inoculation program.  Source:  Bangkok Post
• Tourism Authority of Thailand said COVID-19 vaccine will be a game-changer for the tourism industry.  Meanwhile, the Association of Thai Travel Agents (ATTA) called for the government to draw up clear policies and entry rules for inoculated travelers by Q3 this year, as well as to establish the vaccine passport framework within Southeast Asian nation.  ATTA contended that the 14-day quarantine requirement is preventing the number of tourist arrivals from reaching its goal of 10 million, while also asking the government to establish the first stage of travel bubbles by mid-year.  Source:  Bangkok Post