Headline summary as of 29th May 2020

News

Updates related to COVID-19:

• Thailand reports 11 newly confirmed cases, a total of 3,076 cases. Out of the total number, 2,945 have been discharged from hospital; 74 are being hospitalised. The death toll is at 57. All the newly confirmed cases are from Kuwait and in state quarantine.
• The CCSA will make a decision to have the 3rd phase of restriction easing today. It is expected that the curfew hours will be from 11.00pm-03.00am and that massage parlour and cinema will be allowed to re-opened. The department store will be allowed to opened until 9pm. Plus, the numbers of people sharing the same table for dining in will be allowed to be up to 4-6 people. Event holding venue (smaller than 20,000 square metres) will be allowed to be re-operated.
• Prasit Watanapa, dean of the Faculty of Medicine at Siriraj Hospital of Mahidol University, warned that a 2nd wave of Covid-19 is possible for Thailand.
• Former Foreign Minister Surakiart Sathirathai did a keynote speech on Thailand and its impacts on Thai Foreign Policy, pointing out the vague post COVID-19 world order, Thai-ASEAN engagements, Thai engagements with major powers, Thai response to food & health security and Thai long-term strategy.—The Standard Economic Forum

Politics

• Exclusive interview from the former Foreign Minister Kasit Piromya. The former top diplomat has criticised the current government for being as corrupt as previous administrations and undermining the country’s democratic system.—Thai Enquirer
• A video clip of a conversation between an army sergeant and his superior went viral after the former lodged a complaint on May 20th with the House committee on law, justice and human rights committee about alleged irregularities in the army’s allowances for soldiers. The superior threatened the sergeant’s military career will be cut short, if he does not adjust himself to fit in the army tradition (not being a whistle-blower).—all media outlet
• The Attorney-General announced decision to not appeal the acquittal by the Criminal Court for Corruption and Misconduct Cases of ousted and self-exiled former Prime Minister Thaksin Shinawatra’s son Panthongtae Shinawatra in connection with money laundering charges related to a Krungthai Bank Plc (KTB) loan scandal.—all media outlet

Business:

 Economic News Summary, 29 May 2020

• National Economic and Social development Council (NESDC) estimates that 8.4 million workers are at risk of unemployment, of which 2.5 million are from the tourism, 1.5 million from industrial and 4.4 million from other service sectors.  Employment in the agricultural sector will also decline due to the drought, with the farm sector is seeing the highest seasonally unemployed workers in 7 years of 370,000 workers. Unemployment changes will be apparent in Q2 and the second half of the year. 
• However, as the economy starts to re-open, NESDC forecasts the 2020 unemployment rate to be 3-4 percent with 2 million unemployed people. To create 200,000 jobs for new graduates, NESDC plans to ask for financial assistance from the government’s 400 billion Baht budget allocated for economic and social rehabilitation. 
• In Q1 2020, Thailand’s unemployment rate was still low at 1.03% of the total workforce (395,000 people), but was an increase from 0.92% YoY.  There are 37.42 million workers employed in Q1, down 0.5 percent YoY, marking the fourth straight quarter of decrease. Source:  https://www.bangkokpost.com/business/1926036/nesdc-14-4m-workers-at-risk
• The Industry Ministry, NESDC and Finance Ministry plan to establish a 5-billion-Baht venture capital fund to provide liquidity to entrepreneurs affected by the pandemic.  The funding will come from the 400 billion Baht allocated for economic and social rehabilitation and will be proposed to the cabinet by July 7. 
• The Industry Ministry is not concerned that electronic companies will move production plants to neighbouring countries.  Global brands, ie: Panasonic, Mitsubishi Electric and Toshiba, assured the ministry they will continue to increase investment in Thailand, particularly in high technology and innovation.  In the Q1 2020, three electronics factories closed in Thailand but 33 new factories opened, creating a net gain of 25,000 jobs.  Source:  https://www.bangkokpost.com/business/1926088/ministry-led-b5bn-venture-capital-fund-moves-ahead
• Nissan Motors (Japan) will be closing its manufacturing plants in Spain and Indonesia, while increasing the activities of its plant in Thailand.  The closure of Nissan’s Indonesian plant will make Thailand its only manufacturing base in ASEAN.  Nissan’s commitment to the country reflected through its previous 10 billion Baht investment in electric vehicles project in Thailand.  This is part of Nissan’s 4-year business plan to restructure its car manufacturing plants worldwide.  Source: https://www.thansettakij.com/content/motor/436348
• Yesterday the Federation of Thai Industries (FTI) met with foreign investors from Japan, Europe and the US, many of whom are interested to co-invest with Thai entrepreneurs because of the pandemic.  Most companies with operations in China are eyeing relocating to Southeast Asia.  Thailand is among the top choice due to its geographical location as well as availability of seaports and basic infrastructure for high-tech industries.  Foreigners have already switched to buying electronic components from Thailand when China was under lockdown. 
• Japan is encouraging its manufacturers to move out of China, with mid-tech manufacturers aiming to move to Thailand due to the cheaper labour.  High-tech industries will re-shore its workers.  Source:  https://www.nationthailand.com/news/30388713
• Paraquat and chlorpyrifos manufacturers/importers have 270 days to destroy their stock, while a 90-day deadline was given to farmers to return the chemicals for destruction as their possession is considered illegal.  Ministry of Agriculture and Cooperatives has set up a working group on the three hazardous agrochemicals to deal with the case.  Guidelines for how to destroy the chemicals will be publicised later. 
• Department of Agriculture faces a challenging job creating a task force to create understanding with local farmers on how to deal with the two banned hazardous chemicals.  The Federation of Safe Agriculture commented that farmers are the ones most affected by the ban.  There is no compensation for farmers although they spent their own money to buy the chemicals.  Source:  https://www.bangkokpost.com/thailand/general/1925892/farmers-given-90-days-to-hand-in-chemicals
• Association of Thai Travel Agents (ATTA) plans to propose three conditions for reviving tourism to the government: open up in July by first allowing coronavirus-free nations to visit without the 14-day quarantine; require a health certificate; and provide a free rapid test on arrival.  This could garner 4 million Chinese visitors and 16 million international tourists this year as targeted by the Tourism Authority of Thailand (TAT).
• During the first two months of reopening, at least 100,000 international tourists will visit Thailand each month (down from 3 million before the outbreak), which will generate 5 billion baht in monthly income. The few months leading to China’s Golden Week in October are crucial for operators to start up their marketing to Chinese tourists.  Chinese tourists during Q1 plunged 60 percent YoY to 1.25 million, with revenue falling by 64 percent to 57.2 billion baht.  Source:  https://www.bangkokpost.com/business/1925980/travel-agents-want-tourists-in-july

Economic Analysis

• Standard Chartered Bank forecasts that Thailand’s GDP will shrink by 13 percent in Q2 YoY and may not be the lowest point, depending on the recurrence of the pandemic outbreak and vaccine development.  Recovery will take two years to return to pre-pandemic level, starting in the second half of 2020.   Domestic demand will gradually recover with Thailand’s reopening in May.  The government is advised to adopt new instruments that are not soft loans to help SMEs.
• The bank projects that year 2020 will witness a 5 percent GDP contraction if a vaccine is commercially available next year; 3 percent contraction if a vaccine is ready this year and a 10 percent contraction if the pandemic recurs.  Source:  https://www.bangkokpost.com/business/1926000/two-year-path-to-prior-growth-seen
• Fitch Ratings speculates that Thailand will face its longest period of contraction since the 1997 Asian Financial crisis. Thailand’s exposure to external demand (exports account for 50 percent of GDP) – and tourism and travel which indirectly account for 22% of economic activity – leaves it vulnerable to the global slump. The full effect of the global tourism slump will become more apparent in the second quarter of this year.  The pace at which domestic activity can recover in the second half of 2020 and 2021 will depend on the effectiveness of policymakers’ stimulus measures, and when the government kick-starts its infrastructure investment.  Source:  https://www.bangkokpost.com/business/1926216/hard-road-to-recovery

ASEAN/World

• Chinese Embassy Bangkok Facebook Page earlier yesterday published a post legitimising the passing of Hong Kong security bills before it was deleted and replaced with a scoop on protests violence by CGTN.

Australia

• Foreign Ministers of Australia, Canada, the UK and the US jointly issued a joint statement condemning the mainland Chinese decision to pass the security law threatening stability and the prosperity of Hong Kong.—VOA Thai

Headline summary as of 28th May 2020

News

• Updates related to COVID-19:
  • Today, Thailand reports 11 newly confirmed cases, a total of 3,065 cases. Out of the total number, 2,945 have been discharged from hospital; 63 are being hospitalised. The death toll is at 57. All newly confirmed cases are returning from overseas and in state quarantine.
  • This morning, the PM is chairing the inner circle of CCSA (security, interior and public health apparatus) to discuss the 3^rd phase of easing restrictions and the reduction of curfew hours. Earlier yesterday, the Security Council and other security apparatus could not reach a consensus on the 3^rd phase restrictions. Tomorrow, the proposal will be for the whole CCSA board to elaborate. The Secretary-general of the Public Health Ministry said some businesses which have been considered to be at high-risk (cinema and boxing stadiums) will be eased in the upcoming 3^rd phase easing.—all media outlet
  • Yesterday in the House debate, the PM defended the executive decree on one trillion loans to cushion the economy from the effects of COVID-19.
    • The loan will be divided into 2 sets (600 and 400 billion):
      • As for the 600 billion THB, just over half of this amount will be set aside as cash relief for millions of people and businesses adversely affected by Covid-19, while 45 billion baht will be used to support public health works.
      •  
      • As for the 400 billion, it will be used to create jobs and revitalise the economy, including plans to revive local and community economy.
  • The Transport Minister said the PM has ordered the Ministry to curb with COVID-19 in case Thailand is re-opening its airspace to welcome international travellers. The Minister said the ministry eyes to sign an MoU with countries which could successfully control COVID-19.—all media outlet
  • After facing criticisms on the complex procedures of “Thai Chana” platforms to trace COVID-19 transmission, the Digital Economy Ministry is aiming to launch an application to simplify the usage.
  • The Songkhla governor on Wednesday ordered the closure of the Padang Besar border checkpoint in Sadao district after the government reported six of nine new coronavirus patients had returned home via this checkpoint.

Politics

• In a rare exclusive interview with Deputy PM and the main ruling Palang Pracharat Party chief strategist General Prawit, he said that cabinet reshuffle is possible after the Parliament is in its session and the COVID situation eased. He assured that there is no rift within the main ruling party, despite reports on the internal conflicts between the current leadership under DPM Somkid faction and DPM Prawit wing.—Daily News
• Deputy PM Wissanu defended the government’s extension of security decree to US Ambassador to Thailand, citing the decree would provide nationwide single standard of COVID-19 handles and would allow the government prompt response to lockdown on some businesses.—all media outlet
• Move Forward Party held a press conference yesterday aiming to impeach main figure in the PPRP and Deputy Agriculture Minister Thammanat for his wife is the owner of a market which operates on government agencies land and that he was jailed in Australia by NSW Court. The Party has submitted a letter to the House Speaker to seek Constitutional Court advice on the status.—all media outlet
  • Captain Thammanat responded by saying that some actions against him is done by childish and reckless party. He also threatened to file a legal case on defamation against the party in the Southern province of Narathiwat where he also has his residency.
• King’s Prajadhipok’s Institute published its research on the “The beginning of the establishment of democracy with monarchy as the head of state” (in Thai) is open for download via its website. The researcher traced King Rama 9’s speeches as a speech act to construct the nationhood, citizen, and the monarchical relations with political institutions.

Business:

Government’s Stimulus Measures

• The Bank of Agriculture and Agricultural Cooperatives expects to complete the payment of Covid-19 aid money to 8 million farmers by the end of May (this Sunday).  BAAC estimated that 10 million farmers are eligible, but many were disqualified because they are civil servants or still earn income from other jobs or are deceased.
• Some 10.3 billion Baht will be made available as loans to an estimated 2,800 commercial and artisanal fishermen in accordance with the cabinet’s decision on 26 May.  The loans will improve the fishermen’s liquidity since many of them could not go to the sea after the migrant workers returned home.  The loans will have 7-year repayment period with 7 percent interest rate, to be offered by Government Savings Bank and BAAC.  Source:  https://www.bangkokpost.com/business/1925312/cash-aid-for-8m-farmers-winding-up

CPTPP

• New Palangdharma Party and Bhumjaithai Party have submitted an urgent motion to the House Speaker for the parliament to establish a special committee to study the impacts of Thailand joining the CPTPP.  Bhumjaithai Party opined that CPTPP would adversely affect Thailand’s agricultural and pharmaceutical sectors.  Sources:  https://news.thaipbs.or.th/content/292990 https://www.nationtv.tv/main/content/378778453

Pesticide Banning

• The Royal Gazette published the Department of Agriculture’s notification on 27 May, asking those in possession of Hazardous Substance Type 4 (paraquat and chlorpyrifos) to return them to the buyer/manufacturer within 90 days from 1 June (no later than 29 August 2020).  They must also report to the relevant Agriculture Ministry officials within 120 days from 1 June.  Source:  https://www.thansettakij.com/content/Macro_econ/436189  http://www.ratchakitcha.soc.go.th/DATA/PDF/2563/E/123/T_0028.PDF
• Communities in the Dong Chi Forest Reserve in Khuang Nai district on Wednesday protested against the use of the herbicide glyphosate by a firm contracted by the Forest Industry Organisation to clear land to grow eucalyptus trees.  They said the glyphosate could be carried by rain into water resources in their communities, which would be hazardous to their health.  Source:  https://www.bangkokpost.com/thailand/general/1925444/residents-slam-use-of-glyphosate

Export

• The Egg Board agreed to allocate 50 million Baht from farmers’ assistance fund to support farmers, traders and exporters with management costs, ie: packing, transporting and egg grading, at a rate of 50 satang per egg from 1 June – 30 Nov.  The move is poised to help farmers amidst the slump in egg price resulting from an oversupply of 100 million eggs in the domestic market.  Ex-farm prices of eggs are currently quoted at 2.40 baht apiece, lower than farmers’ production cost of 2.70 Baht apiece. 
• Commerce Ministry also plans to export about 200 million eggs through a 6-month campaign.  The first 100 million eggs will be exported from June to September, and the rest from October to November.  The department will also sell up to 15 million eggs in the next two months at the Ministry of Commerce’s Blue Flag shops nationwide.  Source:  https://www.bangkokpost.com/business/1925352/board-allots-b50m-to-egg-farmers  https://www.nationthailand.com/news/30388641

Aviation

• The Central Bankruptcy Court accepted a Thai Airways International (THAI) debt rehabilitation petition yesterday (27 May).  Tris Rating subsequently downgraded Thai Airways’ rating and its ratings on senior unsecured debentures to default.  The court was informed that Thai Airways had registered capital of 26.9 billion Baht, debts of 354.4 billion and assets of 349.6 billion Baht. The petition also nominated rehabilitation planners, comprising its four board members and two other board members (Thai Airways Acting President and the airline’s chairman).  The first hearing is set for August.
• Thai Airways’s newly-appointed board member, Pailin Chuchottaworn has resigned, citing a violation of the National Anti-Corruption Commission regulation.  Pailin was the Deputy Transport Minister from December 2017 until last year.  According to the regulation, he is prohibited from assuming a position in any organisation in which the government holds a stake within two years of leaving a cabinet minister post.  Sources: https://www.bangkokpost.com/thailand/general/1925428/board-shakeup-as-thai-debt-rehab-commences   https://www.bangkokpost.com/business/1925376/downgrade-wont-affect-thai-liabilities

Others

• April’s Manufacturing production index (MPI) was 79.04, the lowest since November 2011 and a 17.2 percent YoY decline, attributable to the contractions in industrial and manufacturing sectors.  April’s capacity utilisation rate was 51.9 percent.  Capacity utilisation rate for Q1 is 66.7 percent, falling from 71.3 percent from the same period last year.
• The Ministry of Industry downgraded the MPI for 2020 to a record low of negative 6-7%, with industrial GDP contracting 5.5-6.5%.  Source: https://www.bangkokpost.com/business/1925456/mpi-dips-to-lowest-since-2011
• New business registrations in April totalled 3,996, decreasing by 33 percent YoY.  Compared to March, business registrations fell 34% from 6,066.  This is due to potential investors’ delaying making new investments.  For the first four months this year, the number of business registrations totalled 23,411, down 12 percent YoY.  Registered capital was 80.1 billion baht, up 19 percent YoY.  Source:  https://www.bangkokpost.com/business/1925416/registrations-see-further-fall-in-april

Headline summary as of 27th May 2020

News

• Updates related to COVID-19:
  • Today, Thailand reports 9 newly confirmed cases, a total of 3,054 cases. Out of the total number, 2,931 have been discharged from hospital; 66 are being hospitalised. The death toll is at 57. All the new cases are in state quarantine, returning from aboard.
  • Cabinet approved the extension of the emergency decree to be enforced until the end of June, despite calls from oppositions and businesses to scrap the decree as the numbers of newly confirmed COVID-19 cases is in single digit for days.
  • Yesterday, the PM held a national address elaborating on the significance of extending emergency decree and thank Thai billionaires who the government reached out earlier on to assist in dealing with COVID-19.—all media outlet
  • CNN article on “Why Thailand isn’t reopening to international tourists yet”–CNN
  • An opinion piece on sharing pantry as an economic response to COVID-19 in Thailand.–TCIJ

Politics

• The House is set to begin their debate on the loan bills today, with ruling and opposition MPs are getting ready for the debates.—all media outlet
• Spokesperson of the Move Forward Party said they are seeking the impeachment of MP and Deputy Agriculture Minister Thamanat Prompaw over his criminal record in Australia. The MPs aims to file to the motion to the House Speaker and the Constitutional Court.—all media outlet.
• House largest and the main opposition Pheu Thai Party said its candidate has pulled out of a by-election in Constituency 4 of Lampang province scheduled for June 20, despite having a greater chance of beating the main ruling Phalang Pracharath Party (PPRP).—all media outlet
• The CARE Group led by Phumtham, an adviser to the leader of Pheu Thai Party is reportedly going to hold talks with more than 30 party members. Next week, the group will launch an online forum via Twitter and Facebook to publicise its ideas on various aspects.
  • Pro-government Nation Group media reported that this might be a “come-back plot” of the ousted and self-exiled former PM Thaksin to return to power.—Kurngthep turakij, Nation Weekend

Business:

PM Prayut’s televised broadcast, 26 May

• PM Prayut instituted a 30-percent quota on all state procurement budgets to purchase local products from SMEs and MSMEs, which must also comply with WTO regulations.  Relevant agencies must send him reports that they have fulfilled this requirement by year-end.
• Government agencies are to spend their meeting budgets on local hotels and other venues to give additional income to the hard-hit tourism and travel sectors.
• He noted that employees in some business sectors have not been receiving social security benefits if they close voluntarily.  He noted that the problem has been fixed.  Source:  https://www.bangkokpost.com/thailand/general/1924652/pm-looks-to-bolster-smes

Cabinet’s Decisions, 26 May 2020

• A 39.42 billion Baht budget is set aside as cash-handout to the 13.14 million ‘vulnerable’ people, comprising children up to 6 years old; and the elderly and disabled people.  They will be paid 1,000 Baht monthly for three months, until July.  This will supplement their existing aid payments.
• Civil servants who also work as farmers are deemed ineligible for Ministry of Agriculture and Cooperative’s cash-handout, which is intended for full-time farmers.
• A panel was appointed to follow-up on Thai Airway’s rehabilitation plan, headed by Deputy Prime Minister Wissanu Krea-ngam.
• A committee will be established to consider whether Thailand should join the CPTPP and report back to PM Prayut with a conclusion in 30 days.  Deputy government spokeswoman Rachada Dhnadirek reiterated that the lower house panel will open for public opinions, and that the objective is to decide if Thailand should negotiate the accession process.  Thailand will not be signing any documents, reflecting that no commitments have been made.
• Ministry of Finance is delegated to concoct additional financial aids for SMEs, as well as to ensure they can access the 500 billion Baht soft-loan.  MoF will present at the next cabinet meeting the budget, interest rate and loan limit.
• A 10-billion Baht loan will be extended to those operating in the fishery sector
• The 2021 budget worth 3.3 trillion Baht is approved in principle.  On 16 June, it will be presented for the cabinet’s consideration and submitted to the parliament.  Sources:  https://www.bangkokpost.com/thailand/general/1924668/b39bn-for-handouts-gets-nod https://www.bangkokpost.com/thailand/general/1924644/court-to-rule-whether-to-accept-thai-rehab-petition   https://www.nationthailand.com/news/30388577 https://www.bangkokpost.com/business/1924584/govt-to-consider-joining-asia-pacific-trade-pact-in-a-month

Others

• The committee for SME development funds, chaired by Ministry of Industry, under the Pracha Rat scheme has approved loans worth 1.7 billion Baht for 10,000 businesses to combat the drought and pandemic.  The SME Development Bank will provide the loans, for which applications close on July 31.  Since 2017, the government has approved soft loans under the Pracha Rat fund of 20 billion Baht for SMEs following the Thailand 4.0 initiative. Source:  https://www.bangkokpost.com/business/1924796/panel-okays-b1-7bn-for-10-000-smes
• Thailand’s rubber glove export surged by 16 percent to USD 449.2 million from January – April YoY.  In particular, shipments to markets with which the gloves can be exported free of tariff under FTAs reported healthy growth, ie: exports to Australia increased by 79 percent at USD 9.60 million and China by 129.5 percent to USD31 million.  Commerce Ministry’s Department of Trade Negotiations attributes the rise in rubber glove exports to Thailand having developed a complete supply chain for the industry.  In 2019, Thailand was the third-largest rubber glove exporter.  Sources:  https://www.thaigov.go.th/news/contents/details/31519 https://www.bangkokpost.com/business/1924800/rubber-glove-exports-get-pandemic-boost
• Thailand plans to adapt its production of medical equipment in response to WTO’s call seeking for collaboration in the production and liberalisation of medical devices.  WTO’s report urges members to relax trade barriers and liberalise access to medical products such as medicines, hand sanitisers and medical masks to combat Covid-19.  Last year, Thailand exported medical products worth USD3.656 billion to key markets such as the US, Vietnam and Japan.
• To this end, the Thai Garment Manufacturers Association (TGMA) asked the government to set up labs for testing medical masks, PPE and other textile products.  It also urged the government to improve the manufacturing standards for these products in an effort that is expected to cost 100 million Baht.  TGMA also asked the government for a soft loan of 3 billion Baht to help the industry branch into medical products as a way to survive.  Source:  https://www.nationthailand.com/news/30388486
• The Ministry of Agriculture and Cooperative has been publicizing that anyone in possession of paraquat and chlorpyrifos from June 1 onwards will be fined 1 million Baht and jailed for 10 years.  This was disseminated to farmers in all 4 regions of Thailand through mobile billboard and communicated through community leaders.  Source: https://www.thansettakij.com/content/Macro_econ/435675

Australia

• Local media reported that  the Investigation Division 2 has been coordinated by a lawyer of Australian citizen who was tricked by a group of Thais and foreigners (a French and a German) in Pattaya.—Pattaya News

Headline summary as of 26th May 2020

News

Updates related to COVID-19:

• Today, Thailand reports 3 newly confirmed cases, a total of 3,045 cases. Out of the total number, 2,929 have been discharged from hospital; 59 are being hospitalised. The death toll is at 57.
• Today, in the cabinet weekly meeting, one of the agenda is whether the cabinet will approve the extension of emergency decree to until the end of June.
• With the 3rd phase of COVID restriction easing is set to be elaborated by CCSA tomorrow, some boxing stadiums have already posted on their social media since 22 May that their fans should be ready, they are set to re-open. Earlier in February, two boxing stadiums with deep Army connection were the largest cluster and super-spreaders of COVID-19 in Thailand.–all media outlet
• Advance Info Service (AIS), Thailand’s largest mobile operator, said that a database leak which released 8.3 billion internet records of millions of customers did not contain any sensitive information and that it had shut down the database. The operator was pointed out by tech companies and internet users that AIS’s database was accessible to anyone without a password and the leaked information could be used to track and construct pictures of what households were doing on their internet connection.–Thai Enquirer, BBC Thai

Politics

• iLaw, a local NGO on rule of law, released voting records of the security force chiefs who also seat as senate, according to the junta-drafted but referendum-approved 2017 Consitution. Out of 145 voting agendas, Navy Chief ditched 144 times and Army Chief Apirat skipped 143 times. The only agenda which all security chief voted on was the agenda to transfer part of the budget and personnel of the Thai army to be under the direct control of His Majesty the King. Under the current constitution, six security force chiefs also seat as senates in the interim period, holding an extra power of nominating the Prime Minister.–all media outlet
• The spokesperson of the Army cited security chiefs might have their own businesses to attend to. The spokesperson believed that the chiefs could explain themselves.–all media outlet
• With the ongoing reports on the internal rift within the main ruling Palang Pracharat Party, the PPRP is set to hold an MPs meeting today to prep the MPs on the upcoming House debate on loans bill. 

• Deputy PM Prawit, as the PPRP chief strategist and the, reportedly, contender for the party leader said he would not be present at the meeting. He merely said, “I am not going, nothing to do with me.
• Yesterday, the Finance Minister and party leader Uttama called a meeting for 40MPs at the Finance Ministry to brief the MP on the upcoming debate. The Energy Minister and MPs under ‘Sam Mitr’ faction were not present at yesterday’s meeting.

• The leader and MP of the Move Forward Party (the successor of now-defunct Future Forward Party) Pita said he could not join the Parliamentary debates on the COVID-related loans as he is going through neck operation.
• With the news reporting on close aides to ousted and self-exile former PM Thaksin eyeing to set up a new political party after the internal conflict in the House largest and main opposition, Pheu Thai party reportedly reaches the point of no return, it is unclear what the political consequences it will have on the ‘deal’ Thaksin reportedly had with the ‘powerful figure’ not to get involved in politics.–Daily News
• Breaking: Pheu Thai Party decided not to run for the re-election in the Northern province of Lampang, leaving the candidate from the opposition Seri Ruam Thai party to run on behalf of the opposition against the main ruling PPRP. 

Business:

Economic Recovery Plans

• National Economic and Social Development Council (NESDC) approved for the 400 billion Baht allocated for economic and social rehabilitation projects to be spent on four sectors:
  1. Future sustainable growth (smart agriculture, large-scale farming, food processing, bio-economy, tourism)
  2. Local economic development – 200 billion Baht would go to supporting community businesses and community tourism.  Tourism and Sports Ministry also plans to provide subsidy for boosting domestic tourism
  3. Household and private consumption stimulus; and
  4. Small scale infrastructure development (water & irrigation, R&D for digital platform, transport & logistics)
• Relevant ministries must propose development projects under these guidelines by June 15.  NESDC will screen the projects before proposing them to the cabinet, to be approved by 7 July.  The projects are to be implemented from July and completed within fiscal year 2021. Source:  https://www.bangkokpost.com/business/1924128/nesdc-okays-guideline-for-b400bn-rehabilitation
• Ministry of Finance had established a team to conduct site-visits nationwide in order to assess the conditions and needs of the general population affected by the pandemic outbreak.  Ministry of Finance is also offering training for upskilling unemployed workers and promote e-marketplace.  It is concurrently working with special financial institutions to launch financial and loan packages targeting a broader group of end-users.  Source:  http://www.mof.go.th

Tourism

• Tourism and Sports Ministry will ask Covid-19 Situation Administration (CCSA) this Friday about easing domestic tourism restrictions, starting from June.  Domestic tourism would start within the same region for the first two weeks, followed by inter-regional travel.
• Tourism Authority of Thailand also hopes that 70 percent of the tourism supply chain will join the Safety and Health Administration (SHA) certification standard within the first two years.  SHA project officially started on May 25, with online application opened since 18 May.  As of May 24, some 1,442 operators in 10 tourism-related businesses applied for SHA certification. Source:  https://www.bangkokpost.com/business/1924176/tourism-and-sports-ministry-seeks-to-lift-domestic-lockdown
• The National Shippers’ Council identified the recovery of 20 export items based on the scenario that there is no further Covid19 outbreaks and countries have lifted their lockdowns:
• V-Shape recovery (fast recovery expected in Q2/Q3 of 2020 ): Consumer market food, electronics (mobile phone, computer, tablet); automotive parts; plastic products; and rubber products for medical equipment 
• U-Shape recovery (moderate recovery expected after a vaccine is developed in Q4/2020 – Q1/2021): Frozen seafood supplied to hotels, restaurants and catering businesses; rice; sugar; electrical appliance; construction equipment; garment & apparel (for sports gears as sports tournaments resume); generic rubber products; and chemicals
• L-Shape recovery (slow recovery starting from Q2/2020 as they are considered luxury items): automotive; rubber (for manufacturing tyres); jewelleries (excluding gold); plastic beads; petroleum and tapioca.  Source:  https://www.thansettakij.com/content/434110
• Federation of Thai Industries is conducting a feasibility study on shifting domestic auto-parts plants to manufacturing for the new S-curve industries, such as medical devices and aviation parts.  The move is in response to a drop in demand for automotive since the pandemic outbreak and will also help businesses and auto parts Original Equipment Manufacturers (OEMs) survive.  The new S-Curve industries will most likely see a boost in attention under the government’s economic recovery plan.  Source: https://www.bangkokpost.com/business/1924156/fti-mulls-repurposing-auto-parts-plants
• Thai Airways had selected four new board members after entering rehabilitation program, including former Thai Airways President Piyasvasti Amranand, former Justice Minister Pirapan Salirathavibhaga, former CEO of TMB Bank Boontuck Wungcharoen and former CEO and President of PTT Pailin Chuchottaworn.  Source:  https://www.bangkokpost.com/business/1924052/thai-picks-new-board-members-piyasvasti-returns
• Bank of Thailand Governor Veerathai Santiprabhop will not apply for a second term after his five-year tenure expires on 30 September.  Application period for the next governor starts from 26 May until June 16.  Source: https://www.bangkokpost.com/business/1924216/veerathai-rules-out-central-bank-encore

Headline summary as of 25th May 2020

News

• Updates related to COVID-19:
  • Today, Thailand reports 2 newly confirmed cases, a total of 3,042 cases. Out of the total number, 2,928 have been discharged from the hospital; 57 are being hospitalised. The death toll is at 57.
  • Media reports that in the 3rd phase of the COVID-19 restriction easing, CCSA eyes to allow boxing stadium, spas, cinemas, theme parks, zoos, cram schools, fitness centres, convention centres and holding hotel events. By 28th May, the CCSA will make the decision.–all media outlet
  • The National Security Council and the CCSA are examining the possibility of reducing the curfew hours from, currently, 23.00-04.00 to be either 23.00-05.00 or 24.00-04.00.–all media outlet
  • The Office of the Private Education Commission (OPEC) has proposed to the Education Minister the re-opening of 216 international schools in Thailand. OPEC cited the continuity of studies for international students who could not wait until July (like other Thai schools) to resume their studies.–all media outlet
  • The chief of National Vaccine Institute said that the Thai-made vaccine will be ready by the end of 2021, providing there is no mistake in the testing process.–all media outlet

Politics

• One of the key members of the now-defunct Thai Rak Thai Party, Chaturon Chaisang, came out to admit that he is planning to set up a new party, with help from former party members.  Earlier, media reports that this movement is due to the intra-party conflict of the main opposition Pheu Thai Party.–all media outlet
• The opposition has prepared 50 MPs to grill the government over three executive decrees backing loans of 1.97 trillion baht to pay for Covid-19 relief. It is set that the debate will be on for 5 days, starting from May 27th.–all media outlet

Business:

CPTPP & RCEP

• Dr Rawee Machamadon, head of New Palangdharma Party said he will on 27 May submit an urgent motion for the parliament to establish a special committee to study the impacts of Thailand joining the CPTPP.  The CPTPP could put Thailand at a disadvantage, especially with the Investor-State Dispute Settlement (ISDS) mechanism whereby foreign investors could sue the Thai government.  Another concern is that Thailand would have to join the International Union for the Protection of New Varieties of Plants (UPOV) that would allow foreigners to register a patent after genetically-modifying the seeds from Thailand.  He urged the cabinet to postpone making a decision on CPTPP until the parliament has launched a special committee to comprehensively study this matter in the best interest of the nation.  Source:  https://www.thaipost.net/main/detail/66749

• Ronnarong Phoolpipat, Commerce Ministry Chief Inspector-General and chief negotiator of RCEP for Thailand, said recent RCEP trade negotiations and meetings via video conference were “surprisingly efficient and helpful.  We [trade negotiators] have completed many negotiation issues during the past two months. It is faster and saves on time and costs. Covid-19 brings a new normal to trade negotiations.”  India has been reluctant to ratify RCEP but members will continue to find solutions with the hope the nation will return to the negotiation table.  Source:  https://www.bangkokpost.com/business/1923516/virus-poses-no-barrier-to-rcep-negotiations

Supply Chain

• Ministry of Commerce’s Department of International Trade Promotion disclosed that Japan is looking to move its supply chain from China to ASEAN.  The Japanese government’s 23.5-billion-Yen ‘China Plus One’ policy was conceived to reduce Japan’s reliance on China and diversify its supply chain in the wake of the pandemic outbreak.
• Since then some ASEAN nations, for example, Myanmar has witnessed a notable rise in foreign direct investment.  However, the real shift in company relocation will take time, especially because Japanese firms are cautious and plan for the long term.
• As such, Rojana Industrial Park expects to benefit from an influx of Japanese FDI in the second half of the year.  Japanese clients occupy 70 per cent of its estates and it also developed several industrial estates in the EEC in preparation for investors.
• Thailand’s WHA Corporation urges the government to launch special investment packages in digital health technology, ie: tela-medicine.  If successful, Thailand could enjoy a first-mover advantage over its ASEAN peers. 
• Pinthong Industrial Park said Japanese investors confirmed they have set sight on relocating to Vietnam and Thailand when the pandemic eases.  It advised the Thai government to incentivise Japanese investments by offering investors ‘green cards’.  It also noted that drought could be an impediment to garnering FDI into the EEC, which remains Thailand’s investment epicentre.  Source:  https://www.prachachat.net/economy/news-467500   https://www.prachachat.net/economy/news-467723
• Ministry of Industry said Thailand will be a prime location for new investment in healthcare and tourism sectors.  In fact, the South Korean government have expressed interest for their businesses to expand into Thailand.
• Federation of Thai Industries noted that global supply chains were already on shaky ground due to the US-China Trade War.  Thailand must now compete with Vietnam to seize investment opportunities from company relocation and promote the EEC and S-Curve industries. 
• An emerging trend is that electronics parts buyer from the US and Europe are seeking to diversify their purchases from companies in ASEAN to serve their businesses for automotive, home components and digital segments.  They are willing to bear the higher costs since their supply chains of electronics parts and downstream businesses were disrupted when China went into lockdown.  Source:  https://www.bangkokpost.com/business/1923796/global-supply-chain-renovation

Others

• Ministry of Finance has made preparations for securing 150 billion Baht if additional funds for economic and social restoration are needed.  Of the 150 billion Baht, 40 billion Baht will be allocated from the 2021 annual budget (to go before the cabinet on May 26), 60 billion Baht will be from the central budget and 50 billion Baht from reallocating unused 2020 budget. Source:  https://www.bangkokpost.com/business/1923668/b150bn-from-future-budgets-may-be-used
• DPM Somkid foresees that agriculture, tourism and state spending will be instrumental to rebooting the economy and Q3 and Q4.  Bank for Agriculture and Agricultural Cooperatives is helping Village Fund conduct a master plan on community development.   DPM Somkid also expects domestic tourism to resume in provinces with no infection cases by Q3.  Source:  https://www.bangkokpost.com/business/1923652/somkid-readies-h1-restart

ASEAN/World

• Hong Kong protestors hit the street again after the mainland government is set to introduce a new security law. Protestors concern that the law will be enforced in Hong Kong, undermining the one country two systems principle. Hong Kong authority said that they concern about the rising terrorist activities in Hong Kong in the near future.–all media outlet.
• Myanmar’s government submitted, this weekend, an official report to the International Court of Justice detailing how the country will prevent future acts of genocide against its Rohingya Muslim minority–Thai Enquirer

Headline summary as of 22nd May 2020

News

• Updates related to COVID-19:
  • Today Thailand reports no newly confirmed cases, a total of 3,037 cases. Out of the total number, 2,910 have been discharged from the hospital; 71 are being hospitalised. The death toll is at 56.
  • Breaking: Deputy PM Somkid has told the media that CCSA panel has agreed with the National Security Council’s proposition to extend the emergency decree for one more month, effective from 1 June until 30 June. NSC Secretary-general said the decree is crucial to controlling the situation in the 3^rd and 4^th easing phases.—BBC Thai
  • CCSA spokesperson defends the extension of emergency decree is due to public health reasons. The decision will be presented to the cabinet for the weekly cabinet meeting next Tuesday.
• An association of racehorse owners in Nakhon Ratchasima province has taken a clear stance against an order by the Department of Livestock Development that they get their horses vaccinated against African horse sickness (AHS).—Bangkok Post

Politics

• Today marks 6 years anniversary since the coup in 2014.
  • Thai Enquirer published an exclusive interview to Former PM Yingluck. She said she does not believe that the attempted reconciliation could actually happen.
  • Chaiwat Satha-Anand, a professor of politics and government at Thammasat University the  is unique in that the National Council for Peace and Order’s (NCPO) top brass who engineered it have stayed in power longer than those who carried out the three previous putsches. This allows for a long cooling-off period, during which those frustrated by the coup see their discontent taper off, while others come to take the coup for granted.—Bangkok Post
• Deputy PM Somkid said the news about his clique setting up a new political party due to an intra-party conflict is ‘nonsense’.—Naew Na, Siam Rath
• Fractions in the main opposition Pheu Thai Party became more visible in that key members of 3 factions inside the now defunct Thai Rak Thai (TRT) Party are reportedly having talks about the creation of (a) new parties, according to a source from the Pheu Thai Party. The first group is led by Phumtham, advisor to the opposition leader, and 2 ex-deputy prime ministers Surapong and Prommin while another group is led by Pongsak Ruktapongpisal, a former energy minister, and possibly Pol Capt. Chalerm Yubamrung.
• Army chief General Apirat made a rare media interview on the coup anniversary and the possibility of a symbolic protest that the army cannot prevent people from exercising their rights and freedom. And he said that the laser projection on the Ministry of Defence by the Progressive Movement is a matter of the police, the army has no authority in that.—all media outlet  

Business:

• Most tourism operators have yet to receive the soft loan from Government Savings Bank, which is part of the government’s Phase II stimulus package.  Of the 3,073 tourism operators that submitted loan requests worth 12.7 billion Baht, only 1 percent or 36 cases with loans worth 87.2 million Baht were approved.
• The government aims to record 100 million domestic trips this year.  It will have to persuade the outbound market to convert to travel domestically by at least three times.  International tourist number forecast is 10-11 million and will resume in October.
• The Tourism and Sports Ministry plans to seek PM Prayut’s permission to allow domestic tourism to start in provinces that reported zero new cases for the past 21 days.  Tourism Council of Thailand urges the government to let tourism operators resume business in June to give them a lifeline.  Source:  https://www.bangkokpost.com/business/1922232/tourism-sector-looks-to-resume-domestic-trips

• Board of Investment (BOI) identified medical device sector as the new, promising industry, while the government also aims to develop Thailand as the medical devices hub of ASEAN.
• As such, BOI aims to set up joint ventures or convince foreign firms to establish or move their manufacturing base for medical devices to Thailand.  BOI will hold Subcon Thailand, ASEAN’s largest international industrial subcontracting event, from Sept 23-26 at BITEC in Bangkok.  This is the first time the event will spotlight the medical devices industry and is expected to facilitate some 8,000 business matches with a targeted 12 billion Baht in value.
• BOI is developing Thailand’s subcontracting sector to serve new targeted industries.  The initial focus is on aerospace, medical devices, electric vehicle, smart electronics and the railway system sectors.  Furthermore, BOI has conducted several programmes to help foreign assemblers and manufacturers source high-quality parts and components from Thai SMEs.  Source:  https://www.bangkokpost.com/business/1922228/boi-seeks-to-lure-makers-of-medical-equipment

Cash-Handout

• Of the 15 million applicants approved to receive or the Ministry of Finance’s 5,000 Baht cash handout, 7 million were disqualified, 15 million are eligible to receive the payment and 240,000 applicants are under review. 
• Of the 15 million eligible applicants, payments were already made to 14.2 million (99 percent) and the rest will receive their payment today.
• Of the 240,000 applicants currently under review, 80,000 is scheduled to be audited by MoF.  Some 100,000 applicants could not be found by the MoF’s auditing team during their on-site visit and the remaining 60,000 applicants cannot be contacted.  Source:  http://www.mof.go.th
• There are 6.7 million farmers eligible for the 15,000 Baht cash handout from the Ministry of Agriculture and Cooperative.  Payments were made to 3.2 million farmers valued at 16.1 billion Baht since 15 May.  From 22 – 29 May, payments are expected to be made to 3.5 million farmers.  As of 21 May, payments could not be made to 113,035 farmers as most have not provided their bank account details.  Eligible farmers include those who work in fishery, livestock, rubber and crop sectors.  Source:  Ministry of Finance News Station fb page, 22 May.
• On 29 March, the Ministry of Human Development and Security will pay 1,000 Baht to over 200,000 people with disabled card starting from 29 May.  No registration is needed.  Source:  Thai Government fb page, 21 May.

Others

• The navy will sign a contract next month with BBS Joint Venture to build the 290-billion-Baht Eastern Airport City Project at U-tapao airport, one of five megaprojects in the Eastern Economic Corridor (EEC). The signing is expected after the Eastern Economic Corridor Policy Committee chaired by Prime Minister Prayut Chan-o-cha yesterday approved a draft contract, which is now pending cabinet approval.  Source:  https://www.bangkokpost.com/business/1922124/navy-to-finalise-u-tapao-deal
• Panasonic will move its Thailand-based production of refrigerators and washing machine in Chacheongsao province to its plant outside Hanoi, Vietnam next year.  Its R&D Centre will close by the end of March next year and will lay off 800 workers in the process.  This is part of Panasonic’s restructuring plan for operation cost efficiency, economy of scale in parts procurement and competitiveness enhancement.  Sources:  https://www.bangkokpost.com/business/1922240/thailand-to-remain-key-producer-for-panasonic  https://www.thansettakij.com/content/world/435296