Headlines summary as of 10 June 2020

News

• Updates related to COVID-19:
  • Today, Thailand reports 4 newly confirmed cases, a total of 3,125 cases. Out of the total number, 2,981 have been discharged from hospital;  86 are being hospitalised. The death toll is at 58. The newly confirmed cases travelled from aboard and have been in state quarantine. This is the 16^th consecutive days that there is no report on the locally transmitted case.
  • Deputy army chief and deputy of the government’s committee on COVID-19 control, Gen Nathapol Nakpanit said the committee planned to lift the 11pm-3am curfew for 15 days as a trial basis, but the emergency decree will remain in force to ensure continued containment.—all media outlet
  • CCSA said in the press conference that this Friday they will decide to ease the 4^th phase of restrictions. CCSA eyes to allow the re-opening of International Schools, cram schools. Restaurants and hotels will be allowed to sell alcoholic beverages for dine-in. Nurseries will be allowed to resume operations. Concerts will be allowed. Sport competition is allowed without audience. Night clubs is not yet on the radar. The significant addition is that people who intended to use the service will need to download the application “Thai Chana”, instead of checking-in/out to the platform via QR code.
• In the Pride month, Thammasat University officially announced this week that it will now allow students to dress according to their chosen gender, effective on June 9. By the same token, the governor of the Eastern Chantaburi province has penned down provincial order to uphold gender equality allowing its officials to dress according to gender and sexuality.—all media outlet

Politics

• Prime Minister Prayut Chan-o-cha has dismissed speculation about a looming cabinet reshuffle.
  • Media under Nation Group argued that the ministers under Somkid’s wing are not favoured by MPs in the party because, the current leadership is not able to “look after” MPs well enough. The article revealed names who could potentially replace the Deputy PM Somkid, Finance Minister Uttama and Higher Education Minister.—Than Settakij
• The issue of the abducted Thai self-exile activist is still on media attention:
  • The army has clarified on the allegation the National Council for Peace and Order (NCPO) pressed over Mr Wanchalearm includes Computer Crime Act and the NCPO summon order, but did not include lese majeste law.
  • Students from the Student Union of Thailand was caught by police yesterday as they were tying white ribbon, symbolising the enforced disappearance by state, at the Democracy Monument. They were about to charge with the violation of Emergency Decree with 2-year jail term, but later the police charged the students for violating the Act on the Maintenance of the Cleanliness and Orderliness of the Country.
  • Cambodia’s national police force is reported to launch an investigation into the alleged abduction of Mr Wanchalearm despite earlier calling his disappearance “fake news”.
  • Two largest opposition Pheu Thai and Mover Forward Parties are joining hands to inquire the government on the issue during Parliament session.
  • Former government spokesperson and self-exile activist Mr Jakrapob Penkair posted on his Facebook Page that he is also one of the targets in this latest covert operation. He said the operation was from an undeniable order which requires no reasons or proofs. The operation was conducted by the same team as Thai activists exiled in Laos and Vietnam.
• The rift in the main opposition Pheu Thai party are in media attention as media report minutes from yesterday’s party’s internal meeting. Some MPs from its North-eastern strongholds voiced their concerns of an earlier report of a ‘CARE’ group aiming to set-up a new party.—Prachachart Turakij
  • This morning, the Party leader, chief strategist the Opposition whip and some other MPs held a press conference at the Parliament denying the intra-party rifts. The Party leader said should the ‘CARE’ group eyes to set up a new political party, it is constitutional. MPs in the Pheu Thai Party remains with the party.—The Standard
• The House will consider voting on an urgent agenda to set-up a committee to study the impacts of CPTPP.
  • Main opposition Pheu Thai Party chief strategist Sudarat posted on her Facebook page against the Thai membership to CPTPP, arguing that the trade pact would favour big conglomerates over common people.
• Today, the Constitution Court will have a verdict over the status of the vocal main ruling Palang Pracharat MP Sira Jenjaka for intervening into the authority of state officials as he was recorded criticising a policeman who was assigned to be his bodyguard when he was in Phuket.—Issara

Business:

• World Bank forecasts that the global economy will shrink by 5.2 percent this year – the deepest recession since the Second World War, with the largest fraction of economies experiencing declines in per capita output since 1870, according to its June 2020 Global Economic Prospects report.
• World Bank has slashed Thailand’s GDP outlook for 2020 to a 5 percent contraction from 2.7% growth projected previously, as supply chain disruptions and lockdown measures have triggered an economic downturn.  Among the major economies, the largest downward revisions are in Malaysia, the Philippines and Thailand, at 7.6, 8.0 and 7.7 percentage points below January’s forecasts.  However, Thailand’s economy is anticipated to rebound to growth of 4.1 percent in 2021, up from 1.3 percent projected previously.  Sources: https://www.bangkokpost.com/business/1932128/world-bank-grim-on-gdp   https://www.worldbank.org/en/news/press-release/2020/06/08/covid-19-to-plunge-global-economy-into-worst-recession-since-world-war-ii

Cabinet’s decisions, 9 June 2020

• Cabinet approved a draft bill requiring foreign digital service providers that operate in Thailand to pay 7 percent value-added tax (VAT) on sales.  This is applicable to non-resident companies or platforms that earn more than 1.8 million Baht per year.  The Thai e-Commerce Association agrees with the move as it would create a level playing field for rival Thai businesses, which have been subjected to VAT payments.  Thailand joints other Southeast Asian countries in seeking to boost tax revenue from international technology companies.  Source:  https://www.bangkokpost.com/business/1931976/taxing-internet-firms-gets-first-green-light
• It approved the rates of financial assistance to be paid to 300,000 sugar cane growers nationwide under a 10 billion Baht subsidy programme.Every sugar cane farmer is entitled to 85 baht per tonne of their harvest, while those agreeing to not burn their sugar cane fields will receive 7 baht extra per tonne of subsidy.  Source:  https://www.bangkokpost.com/business/1932036/cabinet-approves-subsidy-rates-for-sugar-cane-farmers
• Interior Ministry’s proposal for aid measure to waive the 40 Baht per room operation fee for one year, from 1 July – 30 June is approved.  Hotel operators brands the remedy insignificant and demands a revival of the 5,000-baht domestic tourism rebate.  Source:  https://www.bangkokpost.com/business/1932132/hotel-operators-slam-fee-waiver
• Cabinet acknowledged Thai Airways’ filing of debt rehabilitation petitions in Switzerland, Germany and Japan and plans to submit a similar request in the United States.  The petitions will protect the airline against the seizure of its assets, including its aircrafts being impounded overseas.  The cabinet was informed that Thai Airways has 12 billion Baht in debt last year and that its total outstanding debt is 244 billion Baht.  Source:  https://www.bangkokpost.com/business/1932044/thai-swoops-to-protect-planes-from-seizure

Tourism

• Tourism Authority of Thailand (TAT) will discuss with hotels, airlines and online travel agents the idea of swapping customers’ international bookings for domestic ones.  To this end, the Thai Travel Agents Association (TTAA) aims to convert 1 million outbound tourists to travel domestically instead, hoping to raise 20 billion Baht in tourism revenue.  TTAA expects international travel to resume in October, when the ‘travel bubbles’ between Thailand and low-risk countries are in place.  Under this arrangement, Chinese tourists will be the first to visit Thailand, followed by Japan.  Thailand’s outbound tourism market will restart at a slower pace.  Source:  https://www.bangkokpost.com/business/1932156/travel-agents-hopeful-of-domestic-tourism National News Bureau fb page, 9 June
• The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) will make a formal recommendation to the Thai government to join negotiations for CPTPP’s accession as the pact could boost the nation’s international trade in the post-pandemic period.  However, whether or not the government makes a final decision to join the pact depends on the outcome of the negotiations.  JSCCIB reached its stance after it conducted a one-month study on the CPTPP jointly with the University of the Thai Chamber of Commerce. 
• FTA Watch is demanding that JSCCIB clarify its stance.  FTA Watch said that when they last met with JSCCIB on 29 May, representatives from the Federation of Thai Industries agreed with the NGO that the CPTPP text related to pharmaceutical patent linkage will adversely affect the local pharmaceutical industry and access to medicine.  Trade negotiation expert at the FTI is quoted to have said that CPTPP’s ambiguous text will lead to interpretation conflicts.  Source:  https://www.bangkokpost.com/business/1932096/industrial-group-supports-thailand-joining-cptpp   https://www.efinancethai.com/LastestNews/LatestNewsMain.aspx?ref=A&id=TVAwR2dYak1zYkE9   https://www.bangkokbiznews.com/news/detail/884150

Australia

• A Thai activist submitted a copy of the Australian court verdict on Mr Thammanat Prompao, Deputy Minister of Agriculture to Office of the Narcotics Control Board.—Siam Rath, NationWeekend, ThaiRath, Manager
• Australian Education Minister denied the Chinese authority warning that Australia is unsafe for Chinese students, saying Australian is a multicultural society which is warmly welcoming  international student.—Thai News Agency

Headlines summary as of 9 June 2020

News

• Updates related to COVID-19:
  • Today, Thailand reports 2 newly confirmed cases, a total of 3,121 cases. Out of the total number,  2,973 have been discharged from the hospital; 90 are being hospitalised. The death toll is at 58. The two confirmed cases are returning from aboard and have been in state quarantine. This is the 15th day that there is no local transmission in Thailand. 
  • CCSA said, despite the epidemiological theoretical grounds on 14 days of COVID-19 transmission, we have to make sure that there is no local transmission for 28 days for it to reach the point of having ‘low risk’.
  • Deputy Prime Minister Wissanu signalled the possibility that the state of emergency may be extended while schools and airports will reopen and there will be long holidays next month.
  • This morning Deputy PM and Public Health Minister Anutin said before the weekly cabinet meeting that opening its air border to tourists is still not feasible in that there are reports on imported cases. And he said that the emergency decree should still be in place as the Communicable Disease Act might not give enough authority for agencies to coordinate.–The Reporters
•  Some 300 Thais and foreigners in Thailand and elsewhere joined an online protest against racism on Sunday, adding their voices to global calls for justice for black American George Floyd who died in U.S. police custody in Minneapolis last month.–Reuters

Politics

• The developments revolving around the abduction of Wanchalearm Satsaksit, a previously little-known activist who fled Thailand following the 2014 coup and self-exiled in Cambodia, are still unfolding. Protests flared in Bangkok on Monday in front of the Cambodian Embassy against the suspected kidnapping of a Thai activist in Cambodia which has reignited protests against Thailand’s military-royalist elite.–Reuters, and all media outlet
  • UNHCR Goodwill Ambassador, Praya Lundberg was under criticism for her comment about the abduction of Wanchalerm as this issue is “too sensitive and that her work should be apolitical” and since this involves politics, she will not get involved.
  • Meanwhile, Maria Lynn Ehren Thai Beauty pageant posted on her social media account standing with the abducted and asked how long are we going to live under fear? She also said that, though she realised there are some complexities which she could not all wrap herself around, Thais deserved answers.
  • The main opposition Pheu Thai Party’s chief strategist Sudarat Keyuraphan issued a statement called for the Thai Foreign Ministry to apply diplomat measures to protect the lives of Thai citizens in Cambodia. 
  • Deputy PM Prawit said he did not have knowledge of the issue and that this
  • The Ministry of Foreign Affairs has come out to issue a statement that it was going to look into this issue and will coordinate with the Cambodian authorities.
• The intra-party rifts of the main ruling Palang Pracharat Party (PPRP) are still ongoing.
  •  Yesterday, Deputy Prime Minister Somkid called for an end to political infighting, asking all sides to create a virtuous political climate for the sake of the country’s best economic and social interests. Somkid group is reportedly being the target for the next cabinet reshuffle as they are holding many economically significant portfolios. 
  • Today, Deputy PM Somkid declined the earlier report that 3 ministers under his wing (Finance Minister Uttama, Energy Minister Sondhirat, and Higher Education Minister Suvit) sought his counsel and discuss the possibility of resignation. There was a report that prior to the weekly cabinet meeting, Minister Suvit went to discuss with DPM Somkid.
• The Ministry of Defence came under fire as there are reports that a letter has been sent between the ministry, the National Broadcasting and Telecommunications Commission (NBTC) and the Department of Disease Control asking mobile operators to provide the location data of those who were in close proximity to coronavirus patients. Online users asked how could the Ministry of Defence get involve in this issue?–all media outlet
  • General Raksak Rojphimphum, Director of Defence Policy and Planning Office, confirmed that the leaked document shared came
    from the Ministry and said the proposal is solely for the purpose of outbreak prevention. 
  • Meanwhile, the Ministry of Defence spokesperson said affirms with the media that there is no such document.

Business:

• Yesterday DPM Somkid convened a meeting with his economic team to deliberate on how to best spend the 400 billion Baht set aside for economic and social rehabilitation projects.
• Entry restrictions may be eased for foreign visitors in Q3 (July-September) or Q4 of this year (October – December), starting with travellers from countries or cities/areas that are Covid19-free.  Fresh assistance package will be rolled out in Q3 to coincide with the easing of travel restrictions and the launch of tourism promotions.  The combination of stimulating local spending and tourism will boost economic recovery.
• DPM Somkid also instructed the Securities and Exchange Commission to provide assistance to issuers of non-investment grade corporate bonds who are not eligible for the Bank of Thailand’s Corporate Bond Stabilization Fund.  To this end, SEC contemplates setting up another fund and is asking Finance Ministry to offer tax privileges to make the fund’s establishment viable.  To date 9 companies, most of them listed, have reported extension of interest payment on issued debentures this year, according to Thai Bond Market Association is reporting that.    Sources:  https://www.prachachat.net/finance/news-474796 https://www.bangkokpost.com/business/1931504/sec-mulls-alternative-bond-funding
• National Economic and Social Development Council (NESDC) received applications for 28,425 projects worth 593 billion Baht to use the 400 billion Baht budget allocated for economic rehabilitation projects.  Most of the applicants are state agencies and local administrative organizations.  All the proposed projects are listed on NESDC’s website http://thaime.nesdc.go.th, where the public, civil society and UN Development programme can comment on them from 8-15 June.  NESDC will subsequently screen the projects and submit them to the cabinet by July 7, with the projects to be implemented from July and completed by September 2021.  Source:  https://www.bangkokpost.com/business/1931540/over-28-000-projects-eye-nesdc-aid

Others

• Japanese investors and companies are urging Thailand to reopen its county to 100 Japanese business travellers per day as they are keen to resume business expansion and investment, reported the Federation of Thai Industries (FTI).  FTI is discussing this opportunity with the Public Health Ministry and Covid19 Situation Administration Centre as a way to help local businesses survive, considering that the government’s relief packages last only 3 months.  Source:  https://www.bangkokpost.com/business/1931476/japanese-firms-ask-for-traveller-quota
• Ministry of Commerce’s Department of International Trade Promotion (DITP) is promoting Thai products through 250 international online and offline projects such as Alibaba’s Tmall.com (China), Bigbasket (India), คลัง.com (ASEAN) and Amazon (USA).  Business matching negotiations are being conducted between Thai exporters and US importers in 20 product categories such as food, tyres, animation, organic products and pharmaceutical products from May – September, to be sold through Amazon.com. 
• From April to September, Thai products will be promoted through 44 projects at shopping malls and e-commerce platforms in China and Hong Kong.  Most notable is Tmall’s ‘6.18 Mid-Year Shopping Festival’, China’s biggest online shopping event since the lockdown.  The online festival will market premium Thai fruits, food and beverages to Chinese consumers as part of MoC’s ‘Thai Fruits Golden Months’ initiative, which has been promoting Thai fruits domestically and internationally since May.  DITP also has a country flagship store on Tmall.com and has recently facilitated the opening of new border entry points and rail routes into China to boost the export of Thai fruits.  Source:  Thai Khu Fah fb page, 9 June https://www.bangkokpost.com/business/1931692/alibaba-showcases-local-fruit
• The Bank for Agriculture and Agricultural Cooperatives (BAAC) has earmarked 1 billion Baht as loans to farmers, community enterprises and cooperatives which wish to sell their produce directly to markets.  Farmers will enjoy higher profits if they use the loans to strengthen their value chain and bypass the middlemen.  The loans are available until 30 September, with the loan limit of 5 million Baht per farmer and interest of 6.5 percent.  The focus is on 7 economical fruits: – rambutan, durian, mangosteen, mangoes, longan, lychees and longkong.  Source:  https://www.nationthailand.com/news/30389248
• Thai Union Group announced it will be closing its seafood processing plant in Nakhon Si Thammarat province which employs 400 people due to the impact of Covid19.  In total, Thai Union employs 30,000 – 40,000 people in Thailand.  Source: https://www.prachachat.net/economy/news-474427

ASEAN/World

• Thai media reports on the easing of lockdowns in New Zealand as there have been no active cases of COVID-19 in the country.–all media outlet

Australia

• Australian-Chinese relations are still sour when the Chinese ambassador to Australia has threatened to boycott Australian products. Chinese culture and tourism ministry has issued a statement warning its citizen not to travel to Australia as there are incidents of preferential treatments and violence against Chinese people amidst COVID-19.–Post Today, Thai News Agency
• Walter Brown, a long-time Australian expat in Thailand has been bestowed Order of Australia in the Queen’s List 2020 for his services provided to Australians in Phuket.—The Phuket News

Headlines summary as of 5 June 2020

News

• Updates related to COVID-19:
  • Today, Thailand reports a newly confirmed case, a total of 3,102 cases. Out of the total number, 2,971 have been discharged from hospital; 73 are being hospitalized. The death toll is at 58. The newly confirmed cases is a Thais from Kuwait and has been in state quarantine. It is the 11th straight day that there is no local transmission in Thailand.
  • The CCSA is eyeing to ease its restrictions on schools and educational institutes, nurseries and homes for the elderly, national parks, concert and exhibition halls, not over 20,000 square metres, conference halls which can accommodate more than 200 people, scientific centres for education, beaches, amusement, theme and water parks, children’s playgrounds and game rooms.—all media outlet
  • In an exclusive interview, a senior source in the Prime Minister Office said all internal lockdown will end on 1 July, should the second wave does not materialize. The source said, the repatriation missions are on the way towards completion, then Thailand can accommodate free flow of incoming foreigners currently stranded outside Thailand.—Thai Enquirer

Politics

• Thai media reports on a Thai dissent who left Thailand and seek refuge in Cambodia after the military coup in 2014 was being kidnapped from his residence by an armed group. After the military coup by current PM Prayut, there have been almost 100 people left Thailand. Earlier there have been reports of Thai dissents who were critical to the monarchy killed, eviscerated, put a piece of concrete in and dumped down Mekong River.—Prachathai

Business:

• The House of Representatives on Thursday kicked off a debate on a bill seeking to transfer some 88 billion Baht from the FY 2020 budgets of each ministry to a central fund to combat Covid-19 pandemic and rehabilitate the economy.  The first reading was approved with 264 votes while four MPs rejected it, 185 MPs abstained and one MP failed to vote.  Source:  https://www.bangkokpost.com/thailand/general/1929508/covid-19-fund-bill-passes-first-reading
• Inflation in May declined by 3.44 percent YoY due to low global energy price, fresh vegetables & fruits and the government’s effort to keep prices down to reduce people’s living costs.  May’s inflation saw the largest drop in 11 years and is also the third consecutive month of contraction. 
• Prices fell 2.99 percent in April and 0.54 percent in March.  For the first five months of this year, headline inflation was -1.04 percent, while core inflation was 0.40 percent.  Inflation in June is likely to ease, but at a slower pace due to the lack of demands from inbound tourists.
• Bank of Thailand affirms that the contraction in May’s inflation is not considered a deflatio’ since it is expected to rebound in 2021.  The European Central Bank defines deflation as having long-term negative inflation forecast of five years.  Source: https://www.bangkokpost.com/business/1929664/may-prices-down-3-4-led-by-oil-slump  http://www.tpso.moc.go.th/sites/default/files/3._press_th-05-2563_final1.pdf
• Consumer sentiment picked up for the first time in 15 months in May, according to the University of Thai Chamber of Commerce.  Consumer confidence index rose to 48.2 in May from 24.2 in April, boosted by lockdown easing, government relief efforts and the economic stimulus program.   The first stage of lockdown easing is estimated to raise 2-3 billion Baht per day in circular flow, while the second stage will generate 6-8 billion per day.  Consumer spending normally averages 20 billion Baht per day, but during the lockdown 10 billion Baht per day is lost.  Source:  https://www.bangkokpost.com/business/1929592/sentiment-shows-signs-of-recovery

Cash-Handout

• The Ministry of Agriculture and Cooperatives had given the 15,000 Baht financial assistance to 7 million farmers nationwide, worth 35.5 billion Baht.  Another group of farmers whose registrations with MoAC is still ongoing, will receive the payment on 15 August.  Source:  Thai Government fb page, 5 June

• Finance Ministry had paid the 5,000 Baht cash-handout to 15 million recipients.  Next it will offer cash subsidy to an additional 9 million people who did not receive the handout.  They will be the last batch to receive assistance.  Of the 9 million prospective recipients:
• 1.2 million are state welfare smartcard holders
• 6.9 million are from vulnerable groups (the disabled, the elderly and infants)
• 300,000 failed the registration for the 5,000-baht cash handout (unable to clear the identity authentication process); and
• 66,000 are those denied compensation from Social Security Fund because they have made contributions for less than six months  Source:  https://www.bangkokpost.com/business/1929700/tat-readies-local-tourism-stimulus

Tourism

• Proposals for Tiew Pun Sook domestic tourism stimulus packages are expected to be concluded next week as it needs Finance Ministry’s approval.
• The hotel market in Bangkok was already losing steam in late 2019, prior to the pandemic outbreak.  Occupancy rate, average daily room rate and revenue per available room of 4 and 5-star properties in Bangkok had visibly declined YoY in the second half of 2019.  Without foreign visitors, average occupancy rate of Bangkok hotels is projected to decline by 30 – 40 percent YoY in 2020.   Demand in the Bangkok hotel market is expected to start recovering in Q4 of 2020, but a full recovery may take until late 2021.  Source: https://www.bangkokpost.com/business/1929784/bangkok-hotels-face-long-road-back
• The Thailand Convention and Exhibition Bureau (TCEB) is asking for the easing of restrictions on meetings, incentives, conferences and exhibitions (MICE) to reignite the economy.  TCEB asks that different organisations be able to join the same meetings in hotels and the limitation on exhibition space of 20,000 square metres should be lifted.   TCEB estimates that the MICE industry in FY 2020 will generate 166 billion Baht; a decline of 70.4 percent YoY.   TCEB is also preparing to propose a stimulus package from the 400-billion-Baht budget allocated to national economic rehabilitation.  Source:  https://www.bangkokpost.com/business/1929620/tceb-urges-loosening-of-restrictions-on-big-gatherings

Others

• The Eastern Economic Corridor and at least 90 projects the government planned in the three eastern provinces would be key drivers for the property market.  Foreign direct investment from Chinese and Japanese investors and the government’s investment in mega-infrastructure projects in the EEC provinces, combined with returning foreign tourists when the country reopens should improve demand for properties.  Source:  https://www.bangkokpost.com/business/1929600/tourism-fdi-to-revive-eec-property-view
• The Ministry of Industry proposed offering cash subsidies to sugarcane farmers nationwide and will submit it to the Cabinet next Tuesday.  The 10.2 billion- Baht subsidy will help over 100,000 farmers prepare for the 2020-21 planting season.  The disbursement of the budget is divided into two parts: 6.5 billion Baht for sugarcane farmers who sell their cane to domestic sugar factories at 85 Baht per tonne; and the second part of 3.5 billion Baht to farmers who sell the whole sugarcane plant to factories at 92 Baht per tonne.  The rest of the 231 million Baht is earmarked for administration fee and interest.  Source:  https://www.nationthailand.com/news/30389037  https://www.bangkokpost.com/business/1929760/sugar-cane-aid-heads-to-cabinet

Headlines summary as of 4 June 2020

News

• Updates related to COVID-19:
  • Today, Thailand reports 17 newly confirmed cases, a total of 3,101 cases. Out of the total number, 2,968 have been discharged from hospital, 58 are being hospitalised. The death toll is at 58.  Of all newly confirmed cases, 13 cases returned from Kuwait, 2 returned from Qatar, 2 returned from Saudi Arabia. It is the 10^th straight day that there is no report of the local transmission.
• On the occasion of Queen’s birthday, their Majesties the King and Queen offer the newly established police SWAT unit with an emblem. The unit was established in November 2019, when the police commando unit was transferred to be part of the King’s Guard.—all media outlet

Politics

• Yesterday, Justice Minister Somsak made a news conference about the resignation of main ruling Palang Pracharat Party (PPRP) 18 executives that the internal party restructure aims to institutionalise the party. And he said that, despite earlier understanding, Deputy PM Somkid is not part of the Sam Mitr (3 great friends) group (consisting of DPM Somkid, Justice Minister Somsak and Industrial Minister Suriya). Somsak supported DPM Prawit as the PPRP leader.
• It is expected that the PPRP restructuring would certainly affect the Energy and Higher Education portfolios under DPM Somkid quotas. Report also point out that the next cabinet reshuffle would jeopardise DPM Somkid, Finance Minister Uttama and Deputy Agriculture Thammanat positions. Rumour said it that Pailin Chuchottaworn would replace Uttama as Finance Minister, Boontak Wangcharoen to replace DPM Somkid. While, Sethaput Suthiwart-Narueput would be seated as the Bank of Thailand Governor.—Inside Thailand
• With the leadership tug-of-war in the PPRP keeps on persisting, rumours about the new leadership reaching out to the main opposition Pheu Thai Party to establish a “national unity government” has returned in media:
  • Pheu Thai Party leader posted on his FB Page denying rumours that the party could join the ruling PPRP. He said that Pheu Thai Party only adheres to democratic principles. The party stands on righteous path and will not betray the people. He said Pheu Thai refused to rise to power through undemocratic means. He insisted that as long as he is the party leader, joining PPRP is not feasible. —all media outlet
  • Paisal Puechmongkol, an adviser to Deputy PM Prawit, hinted on his FB Page the possibility of a cabinet reshuffle to include main opposition Pheu Thai Party chief strategist Sudarat Keyuraphan (at the Ministry of Public Health) and Pirapan Salirathavibhaga (as the Justice Minister) in the new line-up.—Khao Sod, Manager
• The Senate came under fire for its nomination of Suchart Trakulkasemsuk, president of the Minburi Civil Court and former National Legislative Assembly during junta in 2014, as a new National Anti-Corruption Commission (NACC) member. Organic Act on Counter Corruption BE 2561 which requires a member or former member of the House of Representatives or the Senate, a political office holder or an executive of a local administrative body to take a 10-year gap before running for public office. The main question is whether a member of National Legislative Assembly is considered

Business:

Cabinet’s decisions, 2 June 2020

• A royal decree was approved to cut the tax on land and building by 90 percent of the amount due for the 2020 tax year.  The new 2020 land and building tax law was originally scheduled to be enforced in August.  Source:  https://www.bangkokpost.com/thailand/general/1928348/90-cut-on-land-building-taxes
• Approved of BBS Consortium’s bid to build the 290-billion Baht Eastern Airport City Project at U-Tapao airport, expected to be completed by 2023.  The BBS consortium, comprising Sino-Thai Engineering & Construction, Bangkok Airways and BTS Group Holdings offered the best return to the state, at 305 billion Baht from land lease and revenue-sharing agreement through a 50-year contract.  Narita International Airport Corporation will be hired to run the airport.  The contract signing between BBS Consortium and the Eastern Special Development Zone Policy Committee is tentatively set on June 19.
• Also approved is the navy’s bid to seek 390 million Baht to develop an aeronautical meteorology project from 2021 – 2023 to complement the Eastern Airport City project.  Source:  https://www.bangkokpost.com/thailand/general/1928440/bbs-lands-b290bn-u-tapao-airport-bid  https://www.bangkokbiznews.com/news/detail/883324

Tourism

• Tourism Authority of Thailand is drafting projects to boost post-Covid19 tourism from July-October, aiming for domestic travellers to reach at least 7 million.  TAT is drafting projects to seek budget allocation from the 1 trillion Baht budget.  Source:  https://www.nationtv.tv/main/content378779151
• Tourism and Sports Ministry together with Finance Ministry will launch ‘Tiew Pun Suk’ (Trips to Share Happiness) domestic tourism promotion from July to October.  Cash vouchers worth 2,000-3,000 Baht available to 4 million people and free trips to 1.2 million medical personnel.  The travellers will have to register through an app, to be developed by Krungthai Bank, to buy the hotel vouchers first.  The government would then give cash rebate to spenders via an electronic wallet, after which tourists could use the rebate to spend on rooms, restaurants, spas or souvenirs.  Medical personnel are encouraged to take three-day trips using local tourism operators.  With a budget currently set at 8-12 billion Baht, both ministries will submit the project to the cabinet later in June.  Source:  https://www.bangkokpost.com/business/1928416/big-push-for-local-tourism
• Hotel occupancy in Hua Hin was 40 percent in May, with the rate reaching 100 percent from 30-31 May and is expecting to remain busy through to the end of June.  The seaside town lifted its travel restrictions on 18 May and saw a surge in local travellers, with many adopting Hua Hin resorts as a remote working destination.  Inter-provincial group tours will see slower recovery.  Tour buses and airfare expect to see a 30-percent increase in their cost due to physical distancing rules.  Source:  https://www.bangkokpost.com/business/1929132/restive-locals-turn-to-hua-hin
• The National Broadcasting and Telecommunications Commission (NBTC) is proposing for Thailand to become a work-from-home destination for foreign executives, in addition to the rolling out of local over-the-top (OTT) platforms embedded with 5G technology for daily usage.  Both initiatives will be proposed to the 26-member National 5G Committee chaired by PM Prayut.  Incentives could include offering Thai nationality to skilled tech workers who can generate revenue for the country during a certain period of time, such as five years.  Source:  https://www.bangkokpost.com/business/1929072/nbtc-pushes-work-from-home-hub-as-lure-for-foreigners

CPTPP

• Thai National Shippers’ Council (TNSC) in consultation with trade associations and industry groups show support for Thailand to join the CPTPP, enthusing that it would boost Thailand’s overall economy, investment and international trade.  They also urge the government to negotiate for the country’s best benefits, particularly in the areas of UPOV regulations, Thai plant development and genetically modified organism controls.
• TNSC stands firm on its forecast that Thailand’s export will decline by 8 percent his year, given that the rise in Q1 export figures is driven largely by gold, oil and weaponry.  Source:  https://www.bangkokpost.com/business/1928504/negative-factors-still-clouding-export-outlook-shippers-say

Others

• Indonesia’s Lion Air is suspending its domestic and international flights indefinitely due to the impact of the travel restrictions resulting from the pandemic.  Lion Air’s fleets will be grounded from 5 June onward, including flights to ASEAN countries such as Thailand, Vietnam and Malaysia.  Source:  https://www.bangkokpost.com/business/1928792/lion-air-to-stay-grounded-indefinitely-due-to-travel-curbs
• Kasikorn Research Centre projects that Thailand’s GDP will contract by 6 percent in 2020 and will take a few years to return to pre-pandemic level, including key industries such as tourism, automotive and property developments.  Unemployment that will peak the second half of the year is the greatest concern as people will find it hard to find employments again.  Source:  https://www.bangkokpost.com/business/1928500/k-research-glum-on-recovery-outlook
• Thai Summit PK, the OEM auto parts manufacturer belonging to Thanathorn Jeunreungrungkit’s family, has launched a voluntary redundancy package from 26 May – 16 June.  The company is seeing less demand from carmakers abroad since the pandemic outbreak and has previously temporarily suspended employees, paying them 75 percent of their salaries throughout the suspension period.  Source:  https://www.thansettakij.com/content/436796
• The pandemic has exacerbated an already uncertain residential and office property market in Bangkok, disclosed Savills Thailand.  The new volume of office supply in CBD area is expected to reach 150 percent on top of the current supply level, leading to falling rents as demands drop and work-from-home arrangements remain in place.  On the residential side, the market will feel the effects of the crisis much sooner, as developers struggle to sell off existing supply of condominiums as overseas buyers dwindle.  Source:  https://www.bangkokpost.com/business/1929064/pandemic-leads-to-falling-rents-glut

Australia

• Thai media reports Australian economy is in minus for the first time in 29 years. The Finance Ministry announced the Q1 GDP growth which is at -0.3 percent.—Thai News Agency
• The police violence has sparked protests worldwide, including in Australia. Protestors in Australia demanded justice for impartial treatment against Indigenous Australians.—Bangkok Insight

Headlines summary as of 2 June 2020

News

• Updates related to COVID-19: 
  • Today, Thailand reports a newly confirmed case, a total of  3,083 cases. Out of the total number, 2,966 have been discharged from the hospital; 59 are being hospitalised. The death toll is at 58. The newly confirmed case is a Thai student who travelled back from Saudi Arabia and has been in state quarantine. The new confirmed dead had an operation and were in contact with an earlier confirmed case when hospitalised. This is the 8th straight day which no reports of local transmission. 
  • Disease control department aims to re-open smaller schools (with less than 100 students) on the 4th phase 1st July. As for the larger schools, the department said that it may need to do a mixture of offline and online education. Nightclubs and bars will be allowed to re-opened in the 5th phase. The PM said in a briefing after the cabinet meeting that this has to be decided according to the transmission in the coming days and weeks. Further information will be announced by the Education Ministry.
  • This morning the Minister of Culture said that the CCSA will decide this Friday whether to announce 4-9 July public holidays, substituting the Songkran festival earlier deferred in April. The PM said in a news briefing after the cabinet meeting that it is not yet confirmed, the related agencies need to look into the result of 3^rd phase easing first.
  • The cabinet has approved the reduction of land tax by 90 percent for this year and extend the time for tax payment to be by August to help curb with the impacts of COVID-19.
• Applications to hold a commemoration event on the anniversary of the Tiananmen massacre outside the Chinese Embassy was stopped by Thai police. One of the organisers told the media that the police had a discussion with the Chinese Embassy and then rejected the application. The organiser questions the influences mainland had over the Thai government, —Thai Enquirer, Matichon

Politics

• Yesterday, 18 out of 34 main ruling Palang Pracharat Party (PPRP) executives resigned, resulted in the dissolution of the board. The party is required to hold a general assembly to pick new board members within 45 days of the dissolution.
  • Finance Minister and the PPRP leader Uttama and his mentor – Deputy Prime Minister Somkid Jatusripitak, are set to fight back because any major change in the PPRP could lead to a change in the Cabinet positions that are also controlled by this faction.
•  A military journalist posted her analysis on Facebook viewing that the resignation of the executives is part of a larger plan of the ruling “3Ps” (PM Prayut, Deputy PM Prawit and Interior Minister “Pok” Anupong) to be in power for 8 years more years. Wassana Nanuam wrote that the strong ties in the 3Ps are solid to the point that it could replace the former politico-military anchor provided by late Privy chief General Prem.

Business:

Post-Pandemic Measures

• Finance Ministry is preparing to introduce financial and non-financial measures to revive the post-Covid19 economy.  For financial measures, it prioritizes creating jobs in the local economy by having specialized financial institutions and commercial banks offer loans for SMEs and underground borrowers.  For non-financial measures, Finance Ministry aims to establish a 50-billion Baht fund to help SMEs access loans.  Source:  https://www.bangkokpost.com/business/1927960/recovery-stimulus-coming-together
• Industry Ministry has approved for SME Development Bank of Thailand (SME D Bank) to disburse soft loans worth 40 billion Baht to help SMEs recover in the post Covid-19 period.  The loan scheme is expected to help 24,000 businesses, create 120,000 jobs and contribute 90 billion Baht to the economy.  Industry Ministry has also approved for the committee for SME development funds under the Pracha Rat scheme to offer loans for 10,000 businesses worth 1.7 billion Baht for drought and pandemic relief.  Source:  https://www.bangkokpost.com/business/1927876/sme-d-bank-hastens-giving-out-b40bn-to-small-firms  https://www.nationtv.tv/main/content/378779091
• The Thai Chamber of Commerce (TCC) urges the government to revise The 20-Year National Strategy and The 12^th National Economic and Social Development plans.  In the post-Covid19 era, the focus should be on promoting food, tourism, healthcare, medical equipment and renewable energy.  TCCC will also submit its plans for the revised strategy to the government soon.  NESDC will propose its revised plan in September.  Source:  https://www.bangkokpost.com/business/1927948/national-strategic-plan-requires-revamp

Tourism

• The Pattaya Business and Tourism Association (PBTA) said the hospitality sector in the province needs to target local tourists as there is likelihood that international tourists might not return until next year.  However, tourism in Pattaya might not be revived as only the beaches are opened, not the entertainment venues or nightlife attractions.  PBTA also urged the government to do more to boost local tourism market, saying that TAT’s 8 billion Baht assistance is a drop in the bucket.  The Association also asked the government to extend social Security compensation payments to workers.  Source:  https://www.bangkokpost.com/thailand/general/1927820/pattaya-firms-unsure-partial-opening-will-reel-in-visitors
• Japan mulls opening up to business visitors from Thailand, Vietnam, Australia and New Zealand as it plans to ease its entry ban.  The 4 countries also have strong business ties with Japan.  Moreover, Vietnam, Australia and New Zealand are fellow CPTPP members, while Thailand, which wants to join the multilateral framework, hosts many Japanese companies.  Source:  https://www.bangkokpost.com/business/1927692/japan-may-soon-allow-business-visits-from-thailand 

Others

• The Thai Chamber of Commerce (TCC) will present its study on the economic cost of banning chlorpyrifos and paraquat to Prime Minister in a few weeks.  TCC is asking to have the ban suspended for a year, while proposing a compromise of limiting imports of the agricultural chemicals.  Meanwhile, Agriculture and Cooperatives Minister Mananya Thaiset vowed to push for a ban on glyphosate.  Sources:  https://www.nationthailand.com/news/30388891?utm_source=category&utm_medium=internal_referral   https://www.bangkokpost.com/thailand/general/1927916/farmers-to-hand-back-chemicals
• Thailand Knitting Factory Ltd, the manufacturer of Harn Khu (Double Goose) t-shirts, is undergoing a restructuring after 64 years.  In the first quarter of 2020, the Covid19 outbreak has devastated it revenue with its retail outlets at department stores forced to close down.  The company will diversify into manufacturing new products in the health category, such as facial masks, to cater to the new normal lifestyle.  It also has plans to manufacture PPE gowns.  In the future, its envisages forging new collaborations to develop innovative apparel lines; a recipe to ensure its survival.  Source:  https://www.thansettakij.com/content/436089
• Luxury low-rise housing market showed signs of recovery in May, following a drop in March and April.  The segment has real demand and was just delaying their buying decisions in the early stage of the pandemic outbreak.  According to CBSE, sales have started to recover since last week, with the overall residential market poised to return in the second half if the pandemic outbreak is controlled.  Source:  https://www.bangkokpost.com/business/1927904/posh-low-rise-market-eyes-recovery
• The Bank of Thailand (BOT) will impose measures to curb the swift Baht appreciation, which will ravage the already fragile business sector and economy.  The local currency appreciated to the highest level in two months, at 31.74 to USD and rose 1.8 percent in May, the biggest monthly gain in 2020.  The appreciation is attributable to the surge in gold price and the Covid-19 situation in Thailand and its Q1 economic figures surpassing expectations.  As a result, investors may have been buying the Baht and regional currencies to park their short-term funds, thus increasing the short-term inflow and pushing up the Baht.  BOT will also monitor transactions by gold traders to ensure they comply with regulations.  Source:  https://www.nationthailand.com/news/30388861?utm_source=homepage_hilight&utm_medium=internal_referral   https://www.bangkokpost.com/business/1928000/bot-warns-baht-uptick-could-increase-fragility

ASEAN/World

• Cambodian leader said that China has not been given exclusive rights to use a naval base on the country’s southern coast and that warships from all nations, including the United States, are welcome to dock there. Hun Sen also said Cambodia was open to holding joint military exercises with all foreign countries, but they would have to be conducted after the threat from the coronavirus has passed. –AP, Thai Post

Headlines summary as of 1 June 2020

News

• Updates related to COVID-19:
  • Today, Thailand reports a newly confirmed case, a total of  3,082cases. Out of the total number, 2,965 have been discharged from the hospital; 60 are being hospitalised. The death toll is at 57. The newly confirmed case is a Thai lady arriving from Russia and has been in state quarantine since. According to CCSA, today marks the seventh consecutive days when there is no single local transmission in Thailand. 
    • The CCSA spokesperson said we still cannot be at ease since it must be 14-21 days straight without any local transmission.
  • Today is the beginning of the 3rd phase COVID-related restriction with lesser curfew hours, longer operating hours for stores and more businesses to be re-opened.
    • Media picked up a part of the interview by the Dean of Faculty of Medicine, Mahidol University, pointing out the possibility of the 2nd wave transmission after the ease of lockdown is imminent. The faculty later pointed out that the media report is misinformation.
  • Thai media reported quoting Yomiuri (a Japanese news agency), reporting on the Japanese government’s plan to re-opening its border to welcome tourists from Thailand, Vietnam, Australia and New Zealand which have low numbers of COVID-19 infections.

Politics

• The Parliament voted to pass 3 executive decrees backing the borrowing of 1.97 trillion baht to finance economic support packages to ease the COVID-19 effects.
  • The Opposition was joined by the second and third largest coalition Bhumjaithai and Democrat party to set up a committee to scrutinise the spending of the bill.
  • Yesterday, media reports on factions in the main ruling Palang Pracharat Party (PPRP) where there were meetings held at the exact same time by each faction leaders to do head-count of MPs in the upcoming bid of the leadership change.
  • The 3 factions of Saam Mitr Group, Government chief whip Wirat Rattanaset’s group and Bangkok faction led by Education Minister Nataphol rallied to support Deputy PM Prawit to replace the current leadership.
  • Finance Minister and Party leader Uttama and Energy Minister Sontirat Sontijirawong, as the PPRP’s secretary-general, also called a meeting of MPs to secure the support of MPs at Room 417 in Parliament complex while Deputy Agriculture and Cooperative Minister Thammanat is reported to convene a meeting of
    nearly 30 MPs in the next room. 
  • Vocal MP Sira said the reports of Mr Uttama and Mr Thammanat factions being able to rally 60 MPs might be false. He heard that the group had only 26 MPs. The rest of the MPs might be ‘battered’ (enlarged) by flour from Australia (an attack against Mr Thammanat and his involvement with smuggling ‘flour’ into Australia). 
  • Breaking: Media reports that Mr Somsak, one of the main member of the Saam Mitr Group said, there is going to be a ‘big news’ this afternoon. Media expected that half of the PPRP executives will resign rendering the current leadership under Uttama and Sontirat to be out of position. The party assembly will be convened and the new leadership will be nominated, prior to the cabinet reshuffle later this month. 
• Army chief General Apirat Kongsompong is reported to order a committee to be set up to look into alleged corruption in solders’ allowances at the army’s Ordnance Department after Sergeant Narongchai Intarakawee came out to blow the whistle on the issue. Earlier, the situation was turned upside down, when the supervisor of the Sergeant was filmed threatening him to behave according to the Army’s ‘code of conduct, unless he did not want to proceed in this career. Gen Apirat also has threatened to impose severe penalties on Sgt Narongchai as he said the latter had deserted the military for more than 16 days. Sgt Narongchai could be charged with absence without leave and face a jail term of up to 7 years if found guilty.

Business:

• According to the Bank of Thailand, Thailand’s key economic data contracted to record-low levels in April.  The only factor supporting the economy was public expenditure, evidenced by an expansion of 28.9 percent in April YoY.
• There are no foreign arrivals in April and May due to the inbound travel ban.  From January to April, international arrivals declined 52.2 percent YoY, totalling 6.69 million.
• From January to April, Thailand still reports a current account surplus of USD8.9 billion. April’s merchandise export value saw a contraction of 3.3 percent YoY, and by 15.9 percent if gold is excluded.  Exports of automotive and parts in April plunged by 49 percent to a record low. Import value dropped 17 percent in April YoY, resulting in a current account deficit of USD700,. 
• Private consumption dipped 15.1 percent YoY to a record low, as did consumer confidence and business sentiment.  The number of firms registered for temporary business suspension under Section 75 soared to 2,406 in April from 445 in March, while that of employees under the section surged to 465,218 from 96,264.  Source:  https://www.bangkokpost.com/business/1926560/quarterly-figures-hit-record-trough
• The automotive sector and related supply chain demand urgent assistance from the government, otherwise it may collapse,.  Excise Department had earlier rejected the Federation of Thai Industries’s (FTI) proposal for the government to slash excise tax for cars by 50 percent.  Excise tax on cars contributes 100 billion Baht annually to state revenue.  FTI’s other proposals are: a car-trade-in scheme for 100,000 Baht paid by the state and a delay in Euro 5 emission standard enforcement.
• In the worst-case scenario, FTI projects that the 2020 car production could plunge to 1 million with 50:50 percent ratio allocation for domestic and export.  Consequently, car sales in 2020 could amount to only 5 million, a 50-percent drop YoY.  This is in line with Nissan’s projection that car production will stand at 6 -6.1 million, the lowest in ten years.  The impacts will be more severe on eco-cars than pick-up cars.  Nissan has resumed its plant 1 in Samut Prakarn, but the second plant remains shut until further assessment based on the easing of the lockdown.
• From January to April, FTI revealed that Thailand had a total auto capacity of 478,393 units, a 32.8 percent YoY decrease.  The number of car sold was 230,173, a 34.2 percent decline YoY.  In April, car production slid 83.6 percent YoY and 83.2% from March to 24,711 units.  Source:  https://www.bangkokpost.com/business/1927372/fti-sounds-alarm-on-auto-industry https://www.thansettakij.com/content/motor/436085
• Thailand’s car part export is anticipated to contract by 10 percent in 2020 as the country is an original equipment manufacturer for many global brands.  In Q1 of this year, Thailand’s car part export saw a 1 percent increase YoY, totalling 5.4 billion USD.  In April and Q2, export figure is expected to see negative growth but will improve starting from Q3.  However, Thailand’s car part export still faces non-tariff barriers from the new NAFTA (USMCA), which requires cars to use 75 percent local content to be eligible for tax exemption.  Source:  https://www.thansettakij.com/content/Macro_econ/436093

Others:          

• CPTPP will be considered by the parliament at its next meeting.  New Palangdharma Party believes that the members of parliament will agree with the establishment of a committee to deliberate Thailand’s accession to CPTPP as it relates to the interest of the nation.  Source:  https://www.bangkokbiznews.com/news/detail/883071
• Airbnb expects the market for longer-term stays to expand as people become accustomed to working remotely.  The pandemic will trigger tourists to travel by car within a few hours’ drive from home province, wherein domestic travel will lead Thailand’s recovery.  Short-term rentals will become an essential part of Thailand’s tourism mix and a valuable driver of economic growth.  Airbnb contributed to over 40 billion Baht to Thailand in 2019, a 17 percent increase YoY, with an average daily guest spend of 3,291 baht.  Source:  https://www.bangkokpost.com/business/1927384/outbreak-spurs-longer-stays
• Finance Ministry said the government can borrow an additional 100 billion Baht to offset a budget deficit if state revenue collection for fiscal 2021 misses its target due to the pandemic and drought.  The fiscal 2021 budget deficit will widen to 730 billion Baht if the additional borrowing is sought.  The 2021 budget has set targets for expenditure at 3.3 trillion Baht and revenue at 2.67 billion baht, leaving a deficit of 630 billion Baht.  Source:  https://www.bangkokpost.com/business/1927404/budget-bureau-gives-nod-to-further-b100bn-in-borrowing
• Incentives from the Finance Ministry may be added to the Board of Investment’s privileges for investment in bio-economic corridors, especially in the farm sector.   BOI in February approved in principle the promotion of Thailand as a bio-economy hub as part of the S-curve industries, which will also increase local income household and reduce income inequality Source: https://www.bangkokpost.com/business/1927376/finance-ministry-seeks-ways-to-boost-bio-economy

ASEAN/World

• Thai media reports on the unrest in many states in the US after the deadly arrest of an African American Mr George Floyd. The protest under the message ‘I can’t breathe’ has been spilled over to other cities in Europe.–All media outlet
• Last Friday, FCCT launched a talk on  ‘Milk Tea Alliance: Diplomacy in the Social Media Age’, discussing the phenomena when the Thai, Hong Kong and Taiwanese netizens, forming a ‘milk tea alliance’, were involved in the online spats with Chinese mainland netizens. The panel discussed the limitation of mainland ‘soft power’ in winning favour over Thai younger generations.—Matichon