Australian Embassy Updates

Daily Updates on COVID-19

Headlines summary as of 2 September 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reports eight newly confirmed cases, a total of 3,425 cases. Out of the total number, 3,274 have been discharged from hospital (at 95.59%); 93 are being hospitalised. The death toll is at 58. The newly confirmed case are Thai returned from the US (6); Australia (1) and Japan (1). This is the 100th consecutive day that there is no local transmission in Thailand.

Politics

  • The PM insisted that differing stances within the coalition on the chlorpyrifos and paraquat ban won’t affect the unity of the government. As the Democrat Agriculture Minister is planning to file the petition against the earlier ban of hazardous chemicals by Bhumjaithai party ministers.—Bangkok Post
  • Khon Kaen Police Station issued a letter to the Khon Kaen town Mayor citing that local residents have reported to the police on disturbance from recent student protests. And a resident has suggested the authority to move the Democracy Monument in the province to other areas. The police then would like to address this issue to the administrative authority for consideration.–Manager
  • A media interviewed former Democrat MP turned pro-royalist activist Warong Dejkitwikrom about a 15 years old protestor who has been under spotlight in the last pro-royalist gatherings. Warong said that the boy is not part of Loyalist Thai, a group he established to voice the concerns of the Royalists. Earlier, the boy did a FB Live broadcast chanting ‘Long Live Dictatorship, Down with Democracy’ (a complete paradox from the student protests motto of ‘Down with Dictatorship, Long Live Democracy’). Warong said the boy’s opinion (which according to some, could be interpreted as sedition against the democratic regime) does not reflect Loyalist Thai Group.—Khao Sod
  • Jutatip Sirikhan, the president of the Student Union of Thailand (SUT) was apprehended by plain-clothes police  on her way to study at Thammasat University. After her release on bail, she took a symbolic gesture in front of the criminal court by pouring a can of white paint over her head in defiance of injustice.—all media outlet
  • The PM twin daughters are taking a legal actions against the those who post, share, or comment defamatory contents against them. The move followed last week Twitter campaign of “searching for Prayut’s twin daughters”, questioning where does the money the two have been using are from while spending time aboard.—Naew Na
  • Swedish Embassy Facebook Page posted in support of Maria Poonlertlarp, Thai beauty pageant who recently came out to support the democracy and student protest causes. 

Business:

Akra Mine

  • Reports surfaced that the community in Chantaburi province has turned up in force to protest against a move by Richphoom Mining, a subsidiary of Akra Resources and Kingsgate companies, to start a gold mining operation in Kaenghangmaew district.  Back in year 2017, Richphoom Mining applied for a special license to operate a gold mine on a plot of land spanning 14,650 rais in the province.  Although the Industry Ministry has yet to approve of the license, local community members from villagers and private sector to provincial government agencies have turned up in force to protest to move.  They plan to submit a letter to Prime Minister Prayut.  They fear the gold mining operation may damage the environment and ecosystem in Chantaburi province, referencing Akra mine as an example.  Source:  Prachachart Turakij newspaper, 2 September 2020
  • The Industry Ministry insists Thailand needs a budget to finance its legal fight with Akra Mine after a House committee vetting the budget bill FY21 slashed its 111-million-Baht request.  Source:  Bangkok Post

Cabinet’s Decisions, 2 September 2020

  • Approved a reduction in the Social Security Fund contribution by employers and employees to 2 percent from the current 5 percent, which is anticipated to lower the financial burden of 12.79 million employees and inject 24 billion Baht into the economy to reduce economic contraction.
  • Insured persons under Section 39 of the Social Security Act will see reduction in their contribution to the fund to 96 baht from 432 Baht monthly from September to November 2020.
  • Approved State Railway of Thailand’s request for 11.5 billion Baht in loans, plus an 800 million baht short-term overdraft for FY21 for its rehabilitation plan.  Sources: Bangkok Post Bangkok Post The Nation

Others

  • Finance Minister Preedee Daochai has resigned after 26 days in the job, effective today (2 September), as published in the Royal Gazette.  Mr Predee cited health problem as the reason for his resignation, referring to a blood clot which causes numbness in his left arm.  However, some speculated that his decision could have been triggered by an earlier conflict with Finance Deputy Minister, Santi Promphat, over the appointment of the Director-General of the Excise Department.  News of Preedee’s resignation contributed to the sudden Baht depreciation against the US dollar and the sell-off in the stock exchange market.  Expert contends that his resignation reflects on Thailand’s political instability and will further derail investor confidence.  Source:  Bangkok Post  Bangkok Post  Krungthep Turakij
  • The Center for Economic Situation Administration (CESA) will consider today the short-term measures to stimulate the economy for the rest of this year.  Among the measures is the Phuket Model; a new tourism model where 200 visitors from Australia and New Zealand will be allowed to visit Thailand starting from October.  Another measure is an employment package for hiring 1 million new graduates and jobless people through a co-payment scheme with private companies.  Source:  Bangkok Post  Thansettakij
  • Government Savings Bank has extended its debt moratorium program a further 3 months to December 2020 to relieve borrowers’ burden during the ongoing economic crisis.  The move is in line with the Bank of Thailand’s policy.  Source:  Bangkok Post

Headlines summary as of 1 September 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reports five newly confirmed cases, a total of 3,417 cases. Out of the total number, 3,274 have been discharged from hospital (at 95.82%); 85 are being hospitalised. The death toll is at 58. The newly confirmed cases are Thais returned from the Philippines. This is the 99th consecutive day that there is no local transmission in Thailand.
    • Authorities of the provinces along Thai-Myanmar border are stepping up its
  • After receiving a report of the investigation submitted by a chairman of the special committee set up to probe into the scandal from dropping the legal cases against Red Bull heir, the PM admitted that there was negligence from some law enforcement, but it is not fair to blame all against the entire justice system. Today, the PM will bring this up to the cabinet and will brief the press on the further decision.—all media outlet
  • The private golden line connecting mega mall on the Thonburi side of town and other locals is scheduled to open its operation from October.—all media outlet

Politics

  • The Royal Thai Navy decided to propose to the House Budget Committee to cut the budget allocated for the procurement of two Chinese submarines for the year and move the money to curb the economic effects from COVID-19, as the public opinion rose against the procurement.—all media outlet
    • And according to a Japanese media, this procurement has been regarded as an attempt to build better ties with China, since Thai authority has been embargoed to procure arms supplies due to coups from Western suppliers.— Nikkei Asian Review
  • The House Budget Committee has approved the budget for the government to use for legal arbitrary process in the international Akra mines. The arbitrary turns political as PM Prayut as the junta leader of the 2014 coup used his Article 44 of the interim constitution to close-down the operation of Akra mine, citing the environmental effects the people were facing. The Constitutional Court has made a verdict when PM Prayut got nominated for the premiership in 2019 election under Palang Pracharat Party that the PM during junta period is not considered a state official and is legitimate to be PM candidate. The legal case or fees that arise from the case should then be treated as Prayut’s individual responsibility, not the government’s. But the PM said yesterday that one should not mix the statuses of his together.–Manager

Business:

Kingsgate/Akara Mine

  • A House committee vetting the FY21 budget bill voted to cut the 111 billion Baht budget set aside by Industry Ministry to cover the legal fees in a dispute with Kingsgate by 12 million Baht.  Seri Ruam Thai Party MP and budget committee member Rewat Wisarutwech said he is seeking to have the budget scraped entirely and has asked to address the issue during the second reading of the budget, which will take place from Sept 16-18.  Source:  Bangkok Post
  • An opinion piece in the Bangkok Post asserts that The Kingsgate case is just an example of how the Prayut regime’s ability to use the law to its own advantage is coming back to bite it.  Source:  Bangkok Post

Pesticide Banning

  • Farmers back a move by Agriculture Minister Chalermchai to review the ban on paraquat and chlorpyrifos, suggesting that a limit, rather than a ban, be imposed on the use of these pesticides.  Farmers pointed to the ‘double standard’ designed to benefit big businesses, referring to the fact that paraquat and chlorpyrifos can still be imported while the Public Health Ministry and Department of Livestock Development still used them.  Yet MoPH Minsiter Anutin reiterated through a press conference that the ban will remain in place to protect public health. The deadline for farmers to hand over their stocks of both chemicals passed on August 29.  Source:  The Nation

EEC

  • The Eastern Economic Corridor Office (EECO) calls for the government to allocate 120 million Baht in FY21 to support the EEC’s labour development program that will focus on vocational students. EECO will collaborate with state agencies and private companies to sharpen the skills of 8,500 workers next year as Thailand lacks workers with qualifications to adapt to digital technologies and serve the needs of foreign companies.  The EEC Office estimates some 475,668 workers will be needed over 5 years between 2019 and 2023.  Source:  Bangkok Post
  • The EEC Policy Committee is still confident that investments in the government’s flagship infrastructure project will meet the target of 1.7 trillion Baht in 2022, despite the pandemic.  Investment in the EEC has already reached 900 billion Baht, or half of the total target.  Source:  The Nation

Others

  • The Digital Economy and Society Ministry plans to roll out free WiFi services for urban communities, starting with 10 communities from 1 October.  Source: Bangkok Post
  • The Bank of Thailand (BOT) revealed that the Thai economy continued to improve in July, but urges the government to allow foreign travellers to enter Thailand to stimulate economic growth.  BOT, Tourism and Sports Ministry and the NESDC also cut their projection for foreign arrivals this year to 6.7 million from 8 million, which will lead to a 0.5 percent decline in Thailand’s GDP.  The 2021 foreign arrival forecast is revised down to 12 million from 16 million.  BOT said government must strike a balance between tourism measures and outbreak containment, for which new infections of 20-30 cases per day are acceptable.  Source:  https://www.bangkokpost.com/business/1977743/bot-warns-of-tourism-meltdown
  • Thailand Convention and Exhibition Bureau (TCEB) is creating employment opportunities by training an escort team to facilitate the visit of business travellers in Thailand.  The team will consists of health personnel, medical assistants, visitor assistants and hotel representatives.  The first batch is will complete the two-day training course on 20 September, for which there will be 20-30 health personnel, 40 medical assistants and 60-80 visitor assistants certified by the agency.  Source:  Bangkok Post
  • At the RCEP virtual negotiation last week, RCEP ministers are keeping the door open for India’s return, which would solidify the Australia-India-Japan network in the Indo-Pacific and promote economic ties to strengthen regional cohesion against Chinese interference.  While India’s immediate return is unlikely, behind-the-scenes diplomacy is continuing and neither ASEAN nor its key trading partners like Japan and Australia have ruled out Delhi’s participation.  The regional FTA could pave the way to recuperation from the pandemic.  Source:  Bangkok Post

Headlines summary as of 31 August 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reports a newly confirmed cases, a total of 3,412 cases. Out of the total number, 3,252 have been discharged from hospital (at 95.31%); 102 are being hospitalised. The death toll is at 58. The newly confirmed case is Thai returned from UK. This is the 98th consecutive day that there is no local transmission in Thailand.

Politics

  • Sunday seen another protest in a contrast political spectrum from the pro-democracy student movements:
    • About 1,200 Thai royalists gathered at a Bangkok Metropolitan Administration owned stadium to support the monarchy. The ‘Loyal Thai’ group turned down the three demands of the younger protestors by counter-proposing no dissolution of parliament, maximum legal action against anyone who seeks to topple the monarchy, with no change to the constitution except via the “proper channel”.—Reuters and all media outlet
    • The former Democrat MP Warong Dechgitvigrom who launched the Loyal Thai Group said that he will be at the Japanese Embassy at 10.30am to hand over the demands to extradite Thai dissent Pavin in Japan to return to Thailand.
  • The issue of Royal Thai Navy (RTN) submarine procurement has a significant development this morning as the government spokesperson informed the press that the PM has instructed the RTN to defer the procurement of the second and third Chinese-made submarine until next year. The PM is scheduled to discuss with relevant Chinese authorities in a Defence Council this afternoon.—Thai Rath
    • Earlier, the House Committee on Budget is scheduled to vote on the approval of the procurement today.—all media outlet
  • The coalition is set to hand over the Charter amendment draft motion to the House Speaker tomorrow. The content of the draft will incorporate the Opposition backed draft: pledge not to meddle with Article 1 (Form of State) and 2 (Monarchy) and the designation of the Constitutional Drafting Assemble to be comprised of 200 members. Out of the total number, 150 are from election; the other 50 are from selection: 20 from appointment by the Parliament; 20 from Thai Rector Council (academia from different fields); 10 from students under 240 days’ time-frame.—Krungthep Turakij
  • A far-right group in Thailand is trying to connect the student protestors and civil rights groups with George Soros and the US government trying to topple the Prayut government and the monarchy in Thailand.–ThisRupt

Business:

Kingsgate/Akara Mine

  • An inquiry panel looking into kickback allegations revealed it found emails indicating that Kingsgate paid bribes to Thai state officials to secure concessions and authorisations for the explorations and operations of its Akara mine in Saraburi, Phetchabu, Phicit and Phitsanulok provinces.  The emails showed the bribery money being wired to Hong Kong and Singapore. This new evidence still awaits verification and is part of the National Anti-Corruption Commission’s (NACC) investigation into the corruption, launched since October 2015. 
  • Industry Minister Suriya confirms that the arbitration process between Kingsgate and the Thai government under the Thailand-Australia Free Trade Agreement is ongoing.  The Thai government has set up a 20-member negotiation committee and is hoping to be able to negotiate with Kingsgate separately before the arbitration process wraps up at the end of this year.
  • The media reported that there are indications Kingsgate is keen to resume its operation in Thailand, possibly through joint venture or greenfield investment. 
  • A document circulated on social media showing that the Industry Ministry had allocated more than 111 million Baht in the government’s FY21 budget to pay legal fees for its dispute with Kingsgate.  Industry Ministry insists it has sought this budget allocation for the arbitration process.  Pheu Thai Party called for this budget to be removed, contending that the government has no right to use taxpayer’s money to pay for a decision PM Prayut made unlawfully under military dictatorship regime years back.  Sources:  Matichon newspaper, 30 August and 31 August 2020, ThansettakijBangkok Post

Pesticide Banning

  • Agriculture Minister Chalermchai plans to ask the National Hazardous Substance Committee to review its decision to ban paraquat and chlorpyrifos and allow farmers to resume using them.  In response to this, Minister of Public Health Anutin reiterates his opposition against the use of these pesticides to protect the health of the Thai people.  If the 27-member Committee were to review its decision, there is a possibility the ban will could revoked as Ministry of Public Health has only 2 representatives in the Committee.  Source:  Thai Rath

RCEP

  • At the 8th RCEP video conference last week, ministers from the 16 participating countries reaffirmed their commitment to signing the agreement in November and to welcoming India to return to the negotiation table.  Source:  Bangkok Post

Others

  • ASEAN is scheduled to clinch a pact on mutual recognition arrangements (MRAs) for automobiles and building and construction materials next month to reduce production costs and foster trade among members.  The group is also scheduled to implement the ASEAN-wide Self-Certification regime in September, which will allow certified exporters to self-certify the origin of their goods and enjoy preferential treatment.  Source:  Bangkok Post
  • The government has set aside a budget to repay principal government debt related to COVID-19 at 3 percent of its total expenditure budget, the highest ratio ever, to maintain fiscal 2021 strength.  This is still below the international standard of 10 percent as well as the 3.5 percent standard set by Thailand’s State Financial and Fiscal Discipline Act of 2018.  Source:  Bangkok Post
  • Following a meeting between PM Prayut and domestic low-cost airlines, the government will make available a 24-billion Baht soft loan to 7 airlines from October onward.  In turn, the airlines have responded to the government’s request that they retain their approximately 20,000 staff through the COVID-19 crisis despite behind one of the hardest-hit industries.  The government is also extending the 50 percent cut in landing and take-off charges as well as air craft storage fee until March 2021.  Source:  Thai Pbs World

Opinion/analysis

  • An opinion piece pondering why freshly resigned economic tsar Deputy PM Somkid’s magic did not cast enough spell effects under PM Prayut, comparing to under former PM Thaksin’s administration. The marketing academia-turned-politician Somkid served both Thaksin and Prayut, but the latter lacked understanding of economic policy. It is likely that Somkid will one day return to political stage.—Nikkei Asian Review

Australia

  • The declassified cable from the National Archives of Australia showed that the current King faced somewhat difficult experiences when studying in Australia in ‘The miseducation of King Rama X’—Sydney Morning Herald

Headlines summary as of 28 August 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reports 6 newly confirmed cases, a total of 3,410 cases. Out of the total number, 3,237 have been discharged from hospital (at 94.93%); 115 are being hospitalised. The death toll is at 58. The newly confirmed cases are Thais returned from Uzbekistan, the Philippines, Germany (2) and Ethiopia (2). This is the 95th consecutive day that there is no local transmission in Thailand.
    • Thai senior health officials said Thailand is to ease its novel coronavirus procedures to allow more patients from abroad to get treatment from next month. —Reuters
    • Interior Ministry’s Permanent Secretary has ordered governors to 10 provinces bordering Myanmar tightened security along the border to prevent illegal immigration, and strict health checks on people arriving through official crossings, as the Thai neighbouring country saw the second surge of COVID-19.—all media outlet
  • A court in Thailand handed a death sentence Thursday to an elementary school principal convicted of fatally shooting three people including a toddler during a robbery of a gold shop in Lopburi earlier this year.—all media outlet

Politics

  • The issue of submarine procurement is still on agenda:
    • After the designation that today the House Budget Committee will cast a vote either to pass the procurement of the submarine; or not, the vote will be on Monday, 31st.
    • Democrat party remains consistent in its stand point that the procurement should be postponed until next year.
  • Yesterday, the Army Chief made a public appearance saying that that there are no plans for any coup to be undertaken.—all media outlet

Business:

Pesticide Ban

  • Deputy Agriculture Minister Mananya threatens to ban the use of glyphosate if farmers continue to use them at a level higher than the limit set by the Hazardous Substance Committee.  Her statement came after the NGO Thai-Pan disclosed their survey results of farmers in 12 provinces, which revealed that most farmers have yet to reduce their usage of the chemicals.  Source:  Prachachat Turakij

PPE

  • Rubber Authority of Thailand (RAT) aims for Thailand to become the hub of natural rubber glove as Thailand is already the world’s second largest rubber glove exporter by volume and demand for them is surging globally.  With Thailand’s high-quality latex being the key component of its rubber gloves, the RAT is working with the Board of Investment and Commerce Ministry to promote foreign investments as well as strengthen the local rubber glove value chain.  Source:  Thansettakij

Tourism

  • The government is studying guidelines to open areas of Thailand to foreign tourists under the Safe & Sealed Areas for Tourism, while Tourism Minister Phiphat will lead a ministerial visit to Phuket from 2-4 September.  Thai Airways also plans to launch charter flights between Phuket and international destinations such as China, Denmark, Germany, Britain, South Korea, Japan and Hong Kong in late November this year.  Earlier, PM Prayut announced he was in talks with state agencies on how to open Thailand to foreign tourists after the pandemic situation improves.  Source:  The Nation   The Nation
  • Post COVID-19 tourism will have to enhance safety and health competitiveness as the industry’s priorities shift from volume to value, said Tourism Authority of Thailand (TAT).  Provinces within driving distance of Bangkok will see the fastest recovery, driven by local tourists that comprise Thais, expats and government/corporate employees.  In the best-case-scenario forecast for 2021, where a vaccine is available and international tourists can return in Q2 without a second wave outbreak, TAT expects Thailand to welcome 20.5 million tourists (48 percent down YoY) with revenue of 980 billion Baht (49 percent decline).   Source: Bangkok Post
  • Former Tourism Minister Weerasak Kowsurat calls for financial institutions to help tourism operators by offering soft loans with conditions that would lead to individual business restructuring in combination with debt holiday for 3 years.  Source:  Bangkok Post

Others

  • The Social Security Office announces it will start transferring the 3-month 15,000 Baht remedial cash to workers under Section 33 who had enrolled in the social security system for less than 6 months, in compliance with cabinet’s decision on 21 July.  Source:  Thansettakij
  • The Industry Ministry and Finance Ministry plans to stimulate domestic car sales by launching trade-in coupons worth 100,000 Baht each for car owners, as well as income tax deduction incentives.  This is an incentive for car owners to exchange their old cars aged 15 years or older for new cars or Electric Vehicles .  The scheme will be submitted for the cabinet’s approval in a few months.  Sources:  Bangkok Post The Nation
  • The Bank of Thailand issued a new debt consolidation measure that will reduce interest rate for loans (Minimum Retail Rate) from 16-25 percent to 5.5-8.8 percent, from 1 September 2020 – 31 December 2021.  Borrowers will be able to bundle their credit card, personal and mortgage loans into one sum.  Borrowers can then utilise collateral in their mortgage loans to restructure their debt total with financial institutions.  Debtors will be also allowed to extend their debt payment period.  Source:  The Nation
  • The government wants to raise the average yield of domestic paddy production to 600 kg per rai by 2024 and focus on premium-grade grains as part of the Thailand’s Strategic Rice Plan from 2020-2014  Commerce Minister Jurin said higher spending on R&D for rice seeds and variety are needed to achieve this goal, given that Thailand’s productivity is much lower than other rice-producing countries.  Source:  Bangkok Post
  • Commerce Ministry reported that new business registrations totalled 5,667 in July, down 12 percent YoY, with combined registered capital worth 16.7 billion baht, down 27 percent.  Compared to June, the number of new business registrations in July dropped 1 percent, but registered capital rose 13 percent.  Source:  Bangkok Post

Opinion/analysis

  • An analysis on the significance of competition over the Army Chief position between PM Prayut-backed candidate and General Apirat (thus King)-backed candidate showed that there is no unity in the strongest security apparatus in Thailand. The same pattern goes for the Air force. The new reshuffle would leave Prayut’s strong troika in jeopardy. Now military operations in Bangkok — pivotal to launching or crushing coups — are beyond Prayut’s control. An Asian diplomat based in Bangkok said General Apirat is unhappy with the way the Prayut government is dealing with protestors and had planned for a coup.—Nikkei Asian Review
  • An opinion piece on the Pheu Thai party under the de facto lead of its Chief Strategist Sudarat, the author said that the Opposition does not need a shrewd but soft-lining leader like her. This is a critical moment for Pheu Thai since if they are continuing their soft-lining card towards Prayut, they will lose their supporters to Move Forward Party and shares the same fate with the Democrat who has been hurted badly since the last election.—Thai Enquirer

Australia

  • Australian Kingsgate’s Akra gold mine arbitrary is back on agenda as the Twitter ‘#Akra Gold Mine’ is on trend after a leaked document from budget House Committee showed that the government has allocated 111 million THB for dispute settlement with the Australian company. The sentiment revolving around the tweets is that the government is using the government budget to settle PM Prayut flaw decision. Despite, earlier waves of rumours about Thailand losing the case, the process of arbitration is ongoing.–Matichon, Parchachart

Headlines summary as of 26 August 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reports a newly confirmed cases, a total of 3,403 cases. Out of the total number, 3,229 have been discharged from hospital (at 94.91%); 115 are being hospitalised. The death toll is at 58. The newly confirmed cases are Thais returned from Oman, Turkey, Indonesia, and the US. This is the 93rd consecutive day that there is no local transmission in Thailand.
    • Yesterday, the cabinet has sealed its stamp on the fifth extension of emergency decree, citing the need for administrative collaboration.—all media outlet
  • The PM said that following the advice of The Centre for Economic Situation Administration, the government aims to introduce ‘villa quarantine’ and wellness tourism as soon as October in a bid to revitalise the tourism sector. The PM added that domestic tourism alone could not help sustain a sector that account for a significant proportion of the country GDP.—The Standard
  • On Tuesday the criminal court in Bangkok approved a new arrest warrant for Vorayuth Yoovidhya, Red Bull heir, on a previous charges of reckless driving causing death and a new charge of drug use. Last month, Thai authorities dropped the case, sparking across-the-board criticism against the government and legal apparatus.—all media outlet

Politics

  • The Facebook decision to limit the access of ‘Royalist Marketplace’, a million member group with content critical to the Thai monarchy from users in Thailand has witnessed a swift U-turn as the social media giant plans to sue the Thai government.
    • The self-exiled academia Pavin Chachavalpongpun at Kyoto University interviewed with international media: NHK; Channel News Asia, criticising the geographical blockade as the impediment of Free Speech. He also boasted that the new group witness 500,000 members within a day.
    • The PM spoke in the press briefing after the weekly cabinet meeting that Facebook must abide by Thai law and that he was not fazed by the social media giant’s threat to sue the government for blocking access to accounts deemed defamatory to the monarchy.—Bangkok Post
    • The Digital Economy for Society Ministry alerted the press that they will hold a press briefing on the Facebook legal action against Thai government today at 11.30am
  • The issue of submarine procurement is still on agenda:
    • After passing through a slim majority on the sub-committee vote, today the committee scrutinising the budget bill for the 2021 fiscal year will cast a vote today whether to proceed with the procurement:
      • There are 72 members on the committee [18 from Cabinet; 30 from the Coalition; 24 from the Opposition]. The budget will be approved should they get the majority of the vote.
      • Within the Coalition quota, 13 belongs to Palang Pracharat Party (PPRP), 7 from Bhumjaithai Party; 6 from Democrats Party; one each for four smaller coalition parties. Deputy chair of the committee from Bhumjaithai Party gave a brief interview with a media saying that the party will vote based on the best of the people’s interest.—Inside Thailand
      • Yesterday, Democrat Party announced that they demands the Royal Thai Navy (RTN) to defer the submarine procurement. If there is no review, its MPs in the committee scrutinising the budget bill will veto the purchase.
      • On calculation, should the votes from Democrat and Bhumjaithai side with the Opposition, the procurement will not pass.
  • The opposition is in conflict on the constitutional amendment:
    • As the main opposition and biggest party in the House Pheu Thai Party casted a party vote on the charter rejig, 99.99% of its MPs turned down the Move Forward Party proposal to amend the constitution with scrapping the Senator’s power in voting for the PM, citing that doing so would mean one-third of the Senators, as indicated under the current Constitution, would surely not vote for the amendment.—all media outlet
    • The Move Forward Party held a press conference this morning saying that the party is siding with the idea of establishing Constitutional Drafting Assembly, but the party thinks that the Senate as hand-picked by the junta (now the PM) does not reflect the democratic polity. On the issue of the feasibility of amending without the Senate’s green light, the party said currently the constitutional amendment high-tide is not from the government or the Senate but the protestors. The protestors will pressure them to vote to scrap the Senate. –Move Forward Party FB
    • A source in the main ruling Palang Pracharat Party told a media that the cabinet wants to hold on to the senate as long as possible and will negotiate around the issue as they see the upper house as vital in their plans to prolong their rule.—Thai Enquirer
    • PM Prayut reiterated that he has no objection to amending the constitution, saying a rewrite has been on his government’s list of priorities since taking office.—Bangkok Post
  • The issue of student protests are still on bulletin:
    • Parit ‘Penguin’ Cheevarak, one of the student protest key figures announced earlier last night that he will hold a press conference at Alliance Française Bangkok today, but he posted again later saying that there are some misunderstandings with the venue, the new location will be announced.
    • ‘Bad Student’ Group who has organised a gathering in front of the Ministry of Education earlier last week announced that they will hold another mass gathering on 5 September, the venue will be announced.
    • In a movement seen as Thai ‘cancel culture’, an online campaign has been trending for the past week to boycott all Thai celebrities, who participated in the PDRC protests. Famous transgender TV personality Ornapa “Ma” Krisadee was forced to give up her job as co-host of two popular TV programs, as she was seen posting harassing comments against the student protestors (“Keep playing with your [expletive] at home. Don’t go to school, you demon kids,”).–ThaiPBSWorld, Thai Enquirer
      • In a related development, there has been the same cancel demands for the sponsors of hard-line pro-government Nation TV with some sponsors publicly announced that they either has suspended the sponsorship; or will review the sponsor policy more carefully.
    • On the other side of the ideological spectrum, Thai Bhakdi (Royalist Thai) announced through its Facebook page that they will organise a gathering on 30 August in front of the Bangkok Art and Culture Centre.

Business:

Cabinet’s Decisions, 25 August 2020

  • Funding worth 1 billion Baht will be allocated to the National Vaccine Institute to support the domestic development and production of vaccines against Covid-19 and other diseases.  The fund will come from emergency budget set aside for 2020.  Source:  The Nation  Bangkok Post
  • Agreed to upgrade the “Rao Tiew Duay Kan” (We Travel Together) tourism stimulus scheme by extending the period of subsidised stays for each traveller from 5 to 10 nights and the airfare subsidy support from 1,000 Baht to 2,000 Baht.  The original We Travel Together package received a low uptake, where only 660,000 of the 5 million nights of subsidised accommodation offered by the scheme have been booked by travellers since July.  Source: The Nation
  • Approved a 5.4-billion-Baht budget to develop a Sustainable Manufacturing Centre in the EEC.  The centre is conceived to develop aviation, robotics and artificial intelligence, healthcare, biotechnology and other industries within the EEC. 
  • Valued-added tax will be kept at 7 percent for another year to September 2021 to reduce living costs and lift business confidence.  Source:  Bangkok Post
  • Approved the Fruit Board’s proposal to provide 3.44 billion Baht in aid to longan farmers this year. The farmers will be paid 2,000 Baht per rai per household for up to 25 rai.  Source: The Nation

Infrastructure & EEC

  • The State Railway of Thailand (SRT) is drafting a blueprint and preparing cost estimate to build the second phase of the high-speed train route in the Eastern Economic Corridor (EEC) for the cabinet’s approval in 2021. If approved, the SRT would hold bidding in 2024 and services could commence in 2028.  The route stretches 190 km from U-Tapao Airport in Rayong province to Trat province.  Source:  Bangkok Post
  • Transport Ministry plans to accelerate spending on roads and rail projects in FY21 starting this October to spur the economy.  These include plans for domestic transport network, highway network connecting with neighbouring countries and high-speed rail connecting to China.  The challenge is the actual disbursement, wherein disbursement rate this fiscal year up to mid July was just 37 percent.  Critic notes that public spending has declined in recent years and the government is now focused on providing short-term boost to the economy.  Source:  Bangkok Post

Others

  • Commerce Ministry aims to raise Thailand’s international trade value to become Asia’s top 5 by 2027, up from 8th ranking in 2019, by focusing on value-added industries such as digital, food and healthcare. To achieve this, Thailand needs to fetch at least USD12 billion in export value a year.  Key drivers are the government’s policy to support S-curve industries in the EEC and Thailand’s capability in containing pandemic outbreak. MoC is also working on short, medium and long term strategic plans to seek new markets and diversify its products.  Source:  Bangkok Post
  • The floods hitting several Northern provinces have worsened the tourism outlook in Sukhothai as local travellers cancel trips to the area. Thai Hotels Association’s lower northern chapter said more than 30 percent of hotel bookings were cancelled due to the flooding, even though the deluge did not affect all parts of the province.  Source:  Bangkok Post
  • Commerce Ministry revealed the top 10 business sectors that have proliferated as a result of COVID-19, based on the number of new business registrations from January – July 2020.They include manufacturers of hygiene products and rubber pharmaceutical products;wholesale medical business; sanitization business; e-commerce; electronic equipment and parts wholesale business;building cleaning businesses; software; logistics; general wholesale business; and auditing and tax advisory business.  Source:  Thai Government FB page, 26 August

Australia & FIRB

  • Australia said Tuesday it “would be contrary to national interests” to allow a Chinese firm to buy a major dairy producer, the latest sign of souring relations between the two countries.  It is referring to the USD 430 million sale of Lion Dairy and Drinks (owned by Japan’s Kirin) to Mengniu Dairy, although the Chinese firm has already pulled out of the deal.  Earlier this year the Australian government moved to tighten rules covering foreign investment in the country.  Source:  Bangkok Post

Opinion/analysis

  • Former ‘Royalist’ PM Anand Panyarachun expressed his opinion towards the student protest’s dream of having a truly constitutional monarchy. The former premiere said this series of protests is not distinguished to Thailand, rather a global phenomenon. Anand said he thinks that now the issue of monarchy has already been one of the public issue for discussion. Even though he said the ‘dream’ might not simultaneously translate into reality, he called for restraints from both sides. In his words, he said that government should act more like the young and the young protestors should act more like an adult.—The Standard
  • The conflict between the Pheu Thai and Move Forward Party showed that the two biggest opposition parties have different visions on how to settle the current political conflicts. With Move Forward’s press briefing today, it might mean that the progressive Move Forward party might choose the path of independent Opposition.—Nation Weekend
  • International security specialist from Chulalongkorn University Professor Surachart Bamrungsuk criticised the RTN’s rationale of procuring the submarine for South China Sea conflicts is not sensible as Thailand is not part of the disputes. Even in the scenario of potential major powers’ trade blockade in the region, it is way beyond Thai military capability to counter that. The security academia said that RTN has the largest standing Navy personnel in the region (69,000 against Indonesian Navy at 65,000). Plus, Thailand is the only country with aircraft carrier which could already secure naval dominance. The professor said he saw no need for the procurement now and does not foresee any security threat without it, unless the procurement deal needs to be sealed before someone retired this September.–PPTV

Headlines summary as of 25 August 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reports five newly confirmed cases, a total of 3,402 cases. Out of the total number, 3,229 have been discharged from hospital (at 94.91%); 115 are being hospitalised. The death toll is at 58. The newly confirmed cases are Thais returned from Oman, Turkey, Indonesia, and the US. This is the 92nd consecutive day that there is no local transmission in Thailand.

Politics

  • Royal Thai Navy (RTN) held a press conference yesterday in a bid to legitimise the procurement of the second and third submarine from PRC.
    • RTN denounced the politicisation of the procurement by opposition Pheu Thai party and media, underlining that the procurement is only under internationally strategic rationale.
    • RTN said the procurement cannot be deferred due to ‘promotional price’ term which would be only valid by September this year. RTN added that if it fails to conclude the deal within the term, the status of Thai in further negotiation would be jeop
  • There are developments on the student protest fronts:
    • Student activist Panupong Jaadnok was arrested for his hi-parked at Thammasat University on 10 August as he was protesting the government when the cabinet is holding mobile Cabinet meeting today.—all media outlet
  • Social media Facebook blocked access within Thailand to a group (Royalist Marketplace) with 1 million members that discusses the country’s king, after the Thai government threatened legal action over failure to take down content deemed defamatory to the monarchy. The group was created in April by Thai dissent academia Pavin Chachavalpongpun.—Reuters Within four hours after the blockade, there has been a great virtual migrant to the new group with 270 thousands members.–Prachatai
    • Facebook is reportedly plans to sue the Royal Thai Government after it demanded the company prevent users from accessing to the group.–CNN, Business Insider
    • A group calling themselves “Group for the Nation, Religion and Monarchy” is handed over an open letter at the Japanese Embassy requesting the Japanese authority to prevent Pavin who is residing in Kyoto from harassing the monarchy online. The group requested sending Pavin back to be prosecuted in Thailand. Should there is no development, the group will escalate.—Thai Move Institute

Business:

  • PM Prayut opened a new 32-km motorway linking Bangkok – Chonburi- Rayong provinces during his visit to Rayong yesterday.  It is Thailand’s first inter-city motorway connecting land, water and air transportation systems.  It links Bangkok with the EEC zone and is also crucial to Thailand’s export sector.  The motorway is key to the government’s 20-year national strategy and cost 17.78 billion Baht to build.  Source:  Bangkok Post
  • Industry Ministry will ask the cabinet to approve a 12-billion-baht Smart Park industrial estate as well new tax measures to stimulate car sales in the post-pandemic period.  Located in the EEC province of Map Tha Phut, the Smart Park aims to pilot the ‘Smart Eco’ development model to serve the 12 targeted S-curve industries.  Construction is slated for completion in 3 years. 
  • Industry Ministry confirmed that Exxon Mobil Corporation’s 330-billion Baht investment in an ethylene cracker and refinery expansion project in Sri Racha, Chon Buri will be delayed due to the pandemic.  Source:  Bangkok Post
  • Mitsubishi Motors Thailand remains committed to a 20-billion-baht investment in the country next year, but will focus on electric vehicle (EV) exports.  Some 13 billion Baht will be spent on an EV production facility to produce 3,000 EVs and the remaining 7 billion Baht for a new car spray painting facility. 
  • Chinese automaker Great Wall Motors, which took over production facilities from US car giant GM in Thailand, plans to improve its manufacturing base in Rayong by October and expects to begin production in 2021.  Sources:  Bangkok Post  Nation TV
  • Ministry of Commerce (MoC) expects export to contract by 8-9 percent in 2020, valued at USD 224-227 billion.  Although Thailand’s export has passed the lowest point last month and showed signs of recovery in July with a smaller contraction of 11.4 percent YoY, MoC warns that recovery remains nascent due to many uncertainties related to the pandemic and global economic slowdown.  Source:  Bangkok Post Thai PBS World

Tourism

  • In the first 7 months of 2020, Thailand’s foreign tourist number saw a 71 percent decline YoY (6.69 million tourists), while spending fell by 70.4 percent (332 billion Baht).  Thailand had recorded no tourists since April 2020 when it imposed a travel ban, but the country plans to allow foreign tourists to visit Phuket island from October onward.  Tourism Ministry anticipates 2 million foreign arrivals would visit Thailand from October 2020 – March 2021 as other provinces adopt similar arrangements to Phuket.  Source:  Bangkok Post
  • Tourism operators in Rayong province calls on the government to extend the tourism stimulus campaign from October until the end of the year, provide more accessible soft loans to operators and organise more events for Koh Samet to attract visitors.  Source:  Bangkok Post
  • The Department of Health Service Support will ask the Centre for Covid-19 Situation Administration to approve its ‘villa quarantine’ scheme, which would allow international tourists to indulge in spa and other wellbeing treatments at certified hotels during the 14-day quarantine.  Source:  Bangkok Post
  • Hong Kong has restarted discussions with Japan and Thailand and a handful of other countries over setting up travel bubbles.  Discussions with Japan and Thailand are in more advanced stages compared with other countries.  Source:  Bangkok Post

Others

  • Ministry of Finance said Revenue collection for fiscal 2021 warrants concern because of the pass-through effect from this year’s economic slowdown.  Revenue Dept plans to introduce a digital system designed for revenue collection starting on Oct 1.  Source:  Bangkok Post
  • Digital Economy and Society (DES) Ministry is gearing up efforts to support 2,000 digital community centres nationwide to facilitate public service access and online learning to help people have greater opportunity in the online economy.  The move is to achieve sustainable development via the existing national broadband network for villages called Net Pracharat.  Source:  Bangkok Post

ASEAN/World

  • In the Lanchang-Mekong Cooperation (LMC) meeting yesterday, the Chinese premiere pledged to prioritise the distribution of the practical COVID-19 vaccine to countries in the Mekong region.—Nation TV

Opinion/analysis

  • An opinion piece pondering on the lasts wave of protests as a reaction to the expanding royal realm under King Vajiralongkorn. The author wrote “How the situation proceeds from here is unclear, but Vajiralongkorn’s reign has opened up a yawning divide between royalist propaganda, which depicts the king as a devoted figure striving for the people’s betterment, and the unsavory reality. Past precedent suggests that Thailand’s king will meet calls for real political reform not with compromise, but with coercion”.—Asia Nikkei Review
  • An opinion piece by a Thai ‘upper class’ on the toxic culture of elitism. The author criticised the Thai elite’s mindset which claim to dismiss the inequality at face and a stark separation between ‘us’ the elite and ‘them’ the lower class.–ThisRupt

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