Australian Embassy Updates

Daily Updates on COVID-19

Headline summary as of 7th May 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reported 3 newly confirmed cases (a housewife from Yala province, detected from active testing and two men travelling back Kazakhstan, currently under state quarantine), a total number of 2,992 cases. Out of the total number, 165 are being hospitalised and 2,772 are discharged from hospital. The death toll remains at 55.
    • Yesterday, there was one reported death. He was the 69-year-old Australian national who owned a hotel in the southern province of Phang Nga.
    • The Centre for Covid-19 Situation Administration (CCSA) says all Thais stranded abroad will be repatriated, as the government prepares to welcome about 7,000 returnees who will arrive between Thursday and May 31.—all media outlet
    • CCSA’s spokesperson said on Wednesday that the government was adjusting its testing parameters after weeks of low infection rates. The government will relax criteria and widen the search for coronavirus infections in a bit to stomp out the disease.  “The results of these findings will be made available to the public in the coming weeks,” he said. The government said on Monday that it had tested 227,860 samples total.—Thai Enquirer, Bangkok Post
    • The test result of the Thailand-made COVID-19 vaccine shows “satisfactory” result in animal testing. The developer will start the next phase of the clinical testing.—Daily News
    • The chairperson of the Thai Chamber of Commerce said, according to the CCSA’ phrasing reopening of businesses, he wishes that the retail business, including department stores could be re-opened from 17 May.–Matichon
    • The PM said after the cabinet meeting that “Thailand may see the economic impact from the coronavirus pandemic spread over another nine months”, as disruption from the global crisis drags on tourism and domestic activity.–Reuters

Politics

  • Move Forward Party submitted an urgent motion to the House calling for the setting up of a special committee to probe the government’s spending on relief measures to combat the COVID-19 crisis. The leader of the party MP Pita said his concern resolves around the power the PM has due to the emergency decree.—all media outlet
  • PM Prayut came out to confirm that a cabinet reshuffle is not on the cards amid growing rift within the main ruling Palang Pracharat Party in an attempt to oust party leader Uttama, and the secretary-general Sontirat. After the meeting between the PM and the two party’s key persons, Mr Uttama said it has boosted his morale.—all media outlet

Business:

Cash Handout

  • Ministry of Finance expects to pay the 5,000 Baht cash-handout to 11 million people on Friday 8 May, and to the remaining 1.8 million by the end of next week.  The total number of qualified applicants is 12.8 million.  The deadline to file appeals for rejected applicants is also Friday 8 May. The appeal process will take time because the Finance Ministry will forward appeals to the Social Development and Human Security Ministry to be addressed.
  • The Social Development and Human Security Ministry is in charge of assisting 13 million vulnerable people including infants, the elderly, disabled and homeless.  A budget of 39 billion Baht is set aside to help them.  For example, the disabled including those below the age of 18, are already receiving 1,000 Baht from the ministry. 

Social Security Compensation

Others

  • Inflation in April 2020 declined by -2.99 percent YoY, the lowest in 10 years and 9 months.  This is attributable to the decline in non-food & beverage items and energy price, which is also the lowest in 11 years and 2 months.  Overall, Thailand’s inflation fell by 0.44 percent from January to April, the slowest since 2015. 
  • Notably, this is the second executive month of deflation, following the contraction in March’s inflation of -0.5 percent YoY.  April’s deflation could serve as the basis for the Bank of Thailand to cut policy rate by 25 basis point. Source:  http://viewswire.eiu.com/index.asp?layout=VWArticleVW3&article_id=379515421; UOB newsletter
  • The Thai Chamber of Commerce (TCC) has formed a study team with the University of Thai Chamber of Commerce experts to study the pros and cons of Thailand joining the CPTPP.  This will form the basis for TCC’s stance on whether or not to support Thailand to join the pact.  TCC will also invite businesses to voice their opinions on a range of issues, including CPTPP’s effects on medicines and crops.
  • The issue was also discussed by the Federation of Thai Industries on 5 May and will be discussed by the Joint Standing Committee on Commerce, Industry and Banking today (7 May).  Source:  https://www.bangkokpost.com/business/1913752/thai-chamber-of-commerce-mulls-cptpp
  • The Thai National Shippers’ Council expects an 8-9 percent contraction in export this year, partly because of the strong Baht, the dwindling purchasing power around the world and volatile oil price.  The Council urged the government to maintain the Baht at around 23.5 to 34 Baht to the dollar, offer loans to entrepreneurs and support to agricultural products. Source:  https://www.nationthailand.com/news/30387380
  • The Public Debt Management Office (PDMO) plans to secure 54 billion Baht worth of bridge loans for Thai Airways International.  In exchange for the bridge loans that are crucial to maintain the national carriers’ liquidity, Thai Airways is required to undertake a business rehabilitation plan, which includes cost management and downsizing its employees.  Ministry of Finance’s rescue plan for Thai Airways has yet to go before the cabinet.  Source:  https://www.bangkokpost.com/business/1913904/thai-on-the-verge-of-b54bn-in-loans
  • The Cabinet has approved proposals to ease the people’s burden during Covid-19 by providing 20 percent discount on water bills until the end of June. The discount is only for private users, while government agencies and state enterprises will get 3 per cent discount on water bills, with free usage of first 10 cubic metres until the end of June.  Source:  National News Bureau of Thailand fb page

Australia

  •  The Public Relations Department publicised PM Prayuth’s schedule to meet with HOM at the government house this afternoon.—PRD, Manager, Thai News Agency
  • Media reported on the Australian-New Zealand initiative on the “trans-Tasman bubble”, as a model to ease international travel to boost tourism.—Krungthep Turakij, Nation TV, The Standard, Prachachart, Thai News Agency

Headline summary as of 5th May 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reported only a newly confirmed case, a total of 2,988 confirmed cases. Out of the total number, 2,747 have been discharged from hospital. A death toll is at 54.
    • Princess Ubolratana has expressed her concern about a possible surge in new coronavirus cases following the lifting of the ban on sales of alcoholic beverages in most provinces.—Bangkok Post.
    • Health officials said the earlier positive COVID-19 test in the Southern province of Yala was ‘false positive’. Officials are also investigating what went wrong at the Yala lab as controlled test equipment was found to be contaminated.—all media outlet
    • Thailand has loosened restrictions on some businesses after progress in containing the coronavirus, bringing life back to the streets, including the hawker-food heaven of Bangkok’s Chinatown.—Reuters
    • Another suicide case is reported in the capital due to the socioeconomic impacts of the COVID-19 pandemic. A 50-year-old woman hung herself at home after having learned that her request for social security compensation was rejected.—all media outlet

Politics

  • Yesterday, His Majesty the King appointed the former Constitutional Court Chairperson to be a member of his Privy Council. This appointment has sparked online discussion on Twitter with more than 200,000 tweets #องคมนตรี “Privy Council”. The former secretary-general of the now defunct Future Forward Party Piyabutr posted on his Facebook account saying the judge’s performance’s is “satisfactory”. He went on listing the verdicts the judge made over a decade on dissolving dozens of political parties, including the Future Forward Party.  His post drew many criticism from the pro-government media outlets.—all media outlet
  • Media interviewed Associate Professor Panitan, the Chairperson of PM’s Security Advisory Committee on the government stability amidst COVID-19. The political scientist said whether government can survive or not, depends on the second wave of COVID-19 transmission (during the rainy season). He said if the government could get the transmission and the unemployment rate under control, the government’s situation might not be that bad. In a primary projection, Thailand will recover within 6 months to a year.—Nation Weekend
  • A student activist Netiwit published his opinion piece saying the Education Ministry’s order to ease student’s haircut is a stepping stone towards respecting human dignity and individualism.—Thai Enquirer

Business

  •  A source from the EEC reveals that Airbus had turned down the deal with Thai Airways to develop the MRO at U-Tapao airport due to 2 reasons:
    1. Originally Thai Airways and Airbus agreed to jointly invest in the MRO development, but as both parties enter PPP negotiations, it turns out both Thai and Airbus are required to establish a company.  This company must then sign a contract to rent the land in the EEC at the rate of 3 percent per year of the total investment value of 7 billion Baht.  The Thai Navy will invest in the infrastructure such as the hangar along with 1 percent commission of the annual revenue.  Airbus wanted a cheaper rental fee but it proves an uphill task as the land belongs to the Thai government.   An agreement could not be reached.
    2. Airbus had hoped that Thai Airways would procure Airbus airplanes as part of its new fleet of 38 airplanes.  Thai Airways aborted the procurement when Covid19 outbreak became increasingly prevalent.
  • Airbus’s rejection will not delay the MRO project because the pandemic has stopped all flight movements, which will automatically extend the maintenance period for airplanes.  The MRO is expected to become operational in 2023-2024, at which time the aviation sector would have recovered.
  • Thai Airways will have to present to the Board in May options in pursuing the MRO, including finding a new partner; Thai Airways being the sole investor or proceeding with the investment and finding co-investors later on.  Source: Prachachart Turakij newspaper, 30 April – 2 May
  • Jewellery and silver ornament exporters said they are unable to access the Bank of Thailand’s 500-billion Baht soft loan with 2 percent interest.  In practice, commercial banks often charge additional fees which raise overall interest by 3-4 percent.  Some banks will only forgo these additional interests for long-time customers.  Several commercial banks have also turned down SMEs’ request for the loan on the basis that the soft-loan credit limit has been reached.
  • Likewise, SME Federation of Thailand asserted that SMEs too have a hard time accessing the soft-loan.  Commercial banks are reluctant to provide loans to the SMEs on the grounds that they have high debts and low liquidity, preferring to make the loans to large corporates which have lower risk of default.  Source:  https://www.thansettakij.com/content/business/432170
  • Social Security Office reported that there were 1,117,841 applications for unemployment compensation, of which only 958,304 are qualified.  Source:  National News National Bureau fb page
  • The 5,000 Baht cash handout for farmers will be paid to eligible farmers directly through their BAAC bank accounts.  Farmers with no BBAC bank accounts can register their details through the website www.เยียวยาเกษตรกร.com from 7 May onwards.  BAAC expects to be able to make the payments from 15 May onwards to 1 million people daily.  Source:  https://www.nationtv.tv/main/content/378774
  • The Digital Economy and Society Ministry (MDES) plans to postpone the enforcement of the Personal Data Protection Act (PDPA) by at least one year as companies are embattled by Covid19.  MDES will convene a meeting with the National Cyber Security Committee before proposing a suitable timeframe to the Cabinet, the decision of which will be finalised at the end of May.  The PDPA is originally scheduled to come into effect on 28 May 2020.  Source:  https://www.nationthailand.com/news/30387285?fbclid=IwAR3EScYXmYmnx_khe31YdigxyG466OGlLgT4AJHeepfx0fCekNyK3RvohA0
  • CP had given out over 711,600 pieces of surgical masks manufactured from its own factory to 54 hospitals in southern Thailand to ease the shortage.  CP supplied the masks to Red Cross (overseen by Chulalongkorn Hospital) for distribution to other hospitals.  Currently CP’s factory has manufacturered 1,168,800 pieces.  Source:  http://www.nationtv.tv/main/content/378774743

ASEAN/World

  • Chinese Belt and Road mega infrastructure projects have come to a standstill across Southeast Asia. Chinese workers cannot enter Indonesia as the archipelagic state has been banning foreigners to enter since March. Thailand also postponed the negotiation deadline. The agreement of the first 250km rail between Bangkok and Nakhon Ratchasima will hopefully be concluded in October. The same goes for Myanmar.—Nikkei Asian Review (please see attached)

Headline summary as of 4th May 2020

News

  • Updates related to COVID-19:
    • As of today, Thailand reports 18 newly confirmed cases, a total of 2,987 cases. Out of the total cases, 2,740 of which have been discharged from hospital. The death toll is at 54.
    • All the today’s newly confirmed cases are being hospitalized in the Southern city of Songkla. Earlier yesterday, media reported 40 confirmed cases from the Southern province of Yala, but the Centre for COVID-19 Situation Administration (CCSA) said today that the test result is still unconfirmed.
    • Thai government’s official Facebook Page “ไทยคู่ฟ้า” posted on their page that “today is the first day that there is no new COVID-19 cases amongst Thais (only migrant workers are the newly confirmed cases).” 
    • According to a new order issued by the Civil Aviation Authority of Thailand (CAAT) on Sunday, more airports have been given permission to operate special international flights between 7am and 7pm each day. The CAAT order allows all international airports, including Krabi, Chiang Mai, Chiang Rai, Samui, Surat Thani, Hat Yai and Hua Hin, to handle special status international flights, such as those repatriating foreign nationals or flying home Thai citizens.—Bangkok Post
    • Liquor sections at supermarkets yesterday were full of customers eager to buy alcoholic beverages after sales resumed for the first time in almost a month. Drinkers stormed for supplies for fear that there will be an abrupt change in the government policy. Some provinces are keeping the ban for the time-being.—all media outlet
    • Over the long weekend, people rushed out of the city to provinces to be found that there will be travel constraints for those who have no necessary reason.
    • Minister of Higher Education, Science, Research and Innovation Suvit Maesincee said the government is preparing to create jobs for the unemployed in the aftermath of the coronavirus outbreak. It is expected that 300,000 newly graduated will join the job market this year.—Bangkok Post
  • The Education Ministry has reaffirmed that students can wear their hair long, so long as it is neat and tidy. The ministerial order applies to all schools under the supervision of the ministry.—all media outlet

Politics

  • Progressive Movement, the political movement of the dissolved Future Forward Party, held a campaign to give out 3,000 THB money to anyone who posted during their Facebook Live. This campaign, however, is seen as rivalling to the government’s cash hand-out scheme which people still complains about distribution process,
  • An opinion article regards the extension of the Emergency Decree as a political calculation to extend his tenure.–thisRupt
  • There was no insurgency-backed violence in Thailand’s Deep South for the month of April, the first time in sixteen years that there were no insurgency attacks taking place in a given month.—Thai Enquirer

Business

  • An advisory committee was established to provide the Covid19 Control Administration Center with solutions to alleviate the economic and social impacts generated by the pandemic, with the announcement published in The Royal Gazette on 1 May.  The committee comprises a panel of 13 distinguished individuals, such as NESDC representatives; the former Bank of Thailand Governor Prasarn Trairatvorakul; TDRI’s Director Somchai Jitsuchon; renowned academia Somchai Pakapaswiwat and Mongkulwattana Hospital’s Director Major General Rienthong Nanna. Source:  https://news.thaipbs.or.th/content/291985
  • Nine of the country’s richest business magnates have pledged projects worth billions of Baht in response to PM Prayut’s letter asking them to contribute to rebuilding the economy.  Among them are CP Group’s Dhanin Chearavanont; Redbull’s Chalerm Yoovidhya; Bangkok Airways’ Prasert Prasarttong-Osoth; PM Group’s Prayudh Mahagitsiri; Osotspa’s Petch Osathanugrah; Muangthai Capital’s Chuchat Petaumpai; BTS Group Keeree Kanjanapas; Srisawad’s Chatchai Kaewbootta and King Power’s Aiyawatt Srivaddhanaprabha.  Source: https://www.nationthailand.com/news/30387200
  • Thailand’s challenge is how to ease the lockdown and manage the number of infections within the capacity of the country’s public health system.  Aviation and tourism sectors would find it hard to keep afloat should there be a second wave of infection.  
  • CIMB’s Dr Amonthep Chawla expects economic recovery to be a reversed J-shaped characterized by a steep decline, extended period for economic recovery and slow post-crisis growth.  Globally, nations could adopt trade barriers as the crisis triggers anti-globalisation sentiment.  Source:  https://www.bangkokpost.com/business/1912208/second-time-unluckier-
  • The Federation of Thai Industries (FTI) has prepared a recovery plan to boost the grassroots economy and rebuild domestic industry.  The plan centres on ‘Made in Thailand’ concept as the pandemic might render countries to become more self-reliant on their supply chains and thereby reduce imports.  The recovery plan covers 11 clusters from 45 industries, including the S-curve targeted industries.  FTI’s priority sectors are digital, medical devices and robotics and automation, given the launch of 5G and the changing lifestyle following the Covid-19outbreak. Source: https://www.bangkokpost.com/business/1912184/fti-readies-coronavirus-recovery-plan
  • Thai processed food exports are expected to recover in the third and fourth quarters of this year after falling 13.3 percent (valued at 120 billion Baht) YoY in the first quarter.  The recovery is based on the expectations that countries globally would ease their lockdown and consumption would spur as businesses reopen.  Thai food exports this year is likely to shift to supplying to end consumers instead of hotels and restaurants. Source:  https://www.bangkokpost.com/business/1912180/processed-food-awaits-snapback
  • The Bank of Agriculture and Cooperatives forecasts that for the month of May, the price rubber will go down while the prices of rice, corn used for animal feed, raw sugar, tapioca, palm oil, pork and prawn will increase.  Source:  https://www.thansettakij.com/content/Macro_econ/432041
  • Ministry of Finance will borrow 50 billion Baht monthly for 3 months to finance the 5,000 Baht cash-handout to 10 million farmers.  The borrowing will be done in phases under the 1-trillion Baht borrowing that is part of the stimulus phase III plan.
  • Overall, the government will borrow 600 billion Baht this fiscal year, and the remaining 400 billion Baht in FY 2021.  Public debt to GDP is estimated at 51.8 percent at the end of FY 2020, and 58 percent at the end of FY 2021, which are still below the 60-percent ceiling set by the fiscal sustainability framework. Source:  https://www.bangkokpost.com/business/1912248/pdmo-to-borrow-b50bn-for-farmer-handout

ASEAN/World

  • On Friday PM Paryuth held a telephone meeting with Indian PM Modi, reaffirming the two countries’ commitment to strengthening ties to battle the coronavirus and its economic impact.—all media outlet
  • Media quoted Daily Mail which claimed to obtain classified documents from the so-called “Five Eyes security alliance” which found that Chinese authority has not been transparent about the source and management of COVID-19.—Thai Rath

Headline summary as of 1st May 2020

News

  • The National Hazardous Substance Committee (NHSC) chaired by the Industry Minister Suriya, is standing by its scheduled ban on the agriculture chemical paraquat and pesticide chlorpyrifos and restrict use of glyphosate instead of banning it, despite the request from the Thai Chamber of Commerce to postpone the ban to 31 December 2020, citing the effect of COVID-19 on agricultural-economic sectors.—all media outlet, Bangkok Post

Updates related to COVID-19:

  • Today, Thailand reports six newly confirmed cases, a total of 2,960 cases. The total death toll is at 54.
  • Centre for Covid-19 Situation Administration (CCSA) laid out easing measure to reopen 6 types of businesses / activities starting from 3 May.
  • The permanent secretary for the interior said nationwide alcohol sales ban due to end on Thursday has been extended until May 31.
  • Education Minister Nataphol Teepsuwan on Thursday confirmed that the reopening of all state schools for the new academic year will take place on July 1. The Minister said the health screening should be set up for the safety of students.
  • The government has announced guidelines (Passengers must wear face masks at all times — from boarding to disembarking. If they fail to wear them at check-ins and cannot get one, they will not be allowed to fly. They may not eat or drink anything on board.) on domestic air travel scheduled to resume on Friday.
  • Suicide attempts appeared to have increased in Thailand since the COVID-19 outbreak.–ThisRupt

Politics

  • Former prime minister Thaksin Shinawatra has been named as the host of funeral rites for a young security guard who hanged herself after posting a drawing of Prime Minister Prayut Chan-o-cha online and making complaints about hardships under his regime. Khaosod Online reported that Kongkrit Hongwilai, a former Pheu Thai MP for Prachin Buri, had written Thaksin’s name on a whiteboard as the host of her funeral rites scheduled to be held today.—all media outlet

Business:

Phase III Stimulus Package

  • DPM Somkid said local economy stimulus should be the focus to resurrect the Thai economy.  As such, Thailand needs to inject 400 billion Baht on economic and social rehabilitation projects by June, given that export and tourism are likely to remain slow until early next year.  Measures to rehabilitate the grassroot economy are slated to be implemented from May to September. DPM Somkid has assigned the NESDC to draw up criteria for development projects, which will be presented to the cabinet this month. Source:  https://www.bangkokpost.com/business/1910800/b400bn-necessary-for-rehabilitation
  • Bank of Thailand asserted that Thailand’s recovery could take the W-shape if there is a second wave of Covid19 outbreak.  A V-shaped or U-shaped recovery is also possible depending on foreign tourist arrivals and the global economy, however, tourist arrivals and cross-border transport are unlikely to return to normalcy soon. 
  • BOT added that Thailand’s economic contraction deepened in March and that headline inflation plunged into negative territory for the first time since June 2017.  Only public spending grew for the first time in five months in March, thanks to budget disbursement. Economic growth may shrink in Q1, but contraction will worsen in Q2.  Source:  https://www.bangkokpost.com/business/1910752/bot-outlines-possible-recovery-paths
  • From 1 May onwards, people who by mistake cancelled their applications for the 5,000 Baht cash-handout can now appeal via the online system to have their applications re-considered.
  • The Ministry of Finance had set up reception tables for people to file complaints about the cash-handout.  This is in response to the increasing number of people who had shown up at the Finance Ministry to vent their dissatisfaction at the cash payment in various forms – from drinking rat poison and threatening to commit suicide to climbing the MoF gate. Source:  https://www.nationtv.tv/main/content/378773914/?qj&fbclid=IwAR2hzY9yTwlnQ-igD29dFF8bGtXkeiNdHRjqCnsvkUVHePuIJrbpvk42hEs

Aviation

Others

  • The Thai Steel Industry Association filed a petition for the government to roll out measures to mitigate the effects of the pandemic outbreak on the domestic steel industry.  Demand for steel products fell significantly in Q1, with demand from China plunging by 36 percent or 70 million tonnes.  China has been boosting its steel export by increasing tax refund, which decreases the price of Chinese steel.  Therefore, there is concern that Chinese steel products will be dumped in Thailand; the third largest market for Chinese steel export in 2019. Source:  https://www.bangkokpost.com/business/1910792/steel-group-files-for-outbreak-support
  • Condo investment buyers are scooping up ready-to-transfer units at discount prices and speculating to reap capital gains over the next two years as the pandemic fades.  This is because this month, top property developers are offering tremendous discounts, up to 62 percent, to drain condo stock and get cash before the economic outlook worsens.  More than half of the buyers were investors. Source:  https://www.bangkokpost.com/business/1910988/investment-buyers-flock-back-to-condo-market

Australia

  • Ambassador’s interview with Matichon Weekly (the last episode) is published in print (see attached). This last edition is on royal family relations with Australia.

Headline summary as of 30th April 2020

News

  • Updates related to COVID-19:
    • Media report that today’s daily situation updates from The Centre for Covid-19 Situation Administration (CCSA) will be different from others. The Centre will lay out measures to ease the lockdown with the head of National Security Council, Office of the National Economic and Social Development Council, Public Health (Secretary-general), Interior (Secretary-general) and the Thai Chamber of Commerce present for Q&A session.—Than Settakij
    • Earlier yesterday, the Bangkok Metropolitan Administration (BMA) held a press conference that Bangkok is planning to ease up eight types of businesses necessary for daily lives, starting from 1st May. However, late last night the Royal Gazette published PM order halting all governors’ plan to reopen businesses. The PM ordered all governors to keep on lock down measures until instructed otherwise.
    • Thailand reported on Wednesday nine new coronavirus infections but no deaths, taking to 2,947 cases and 54 deaths its tally since the outbreak began in January.–Reuters

Politics:

  • The power struggle within the main ruling Palang Pracharat Party (PPRP) is still on-going, despite PM Prayuth strong warning earlier to seize until the COVID-19 situation settled. The struggle aims to dethrone the current leader and Secretary-general under Deputy PM Somkid’s wing and enthrone Deputy PM Prawit’s wing in the top executives prior to the prospective cabinet reshuffle.
    • Media reports that Education Minister Nataphol resigned from the executive position of the party. The Minister is a former key person of the People’s Democratic Reform Committee and he is regarded as being under Deputy PM Prawit’s wing (see attached). Should more than half of the executive committee resign, the leader will be automatically out of position.
    • Media also reports that the party staffs called all MPs to come to an ad hoc meeting at 11.00am on 30 April, but the staffs did not mention what’s the agenda of the meeting.
    • Media reports that in the morning of 29th April, Deputy PM Somkid, Finance Minister and PPRP leader Uttama, Energy Minister and PPRP’s Secretary-general Sontirat, and Deputy Agriculture Minister Thammanat went to have a meeting with Mr.  Suriya, Industry Minister and leader of Sam Mitr group (three great friends) in the Party for an hour. They went to have a meeting with the PM for State Enterprise Policy Committee. A source in the party said there was a very serious discussion of how to proceed, but at the end the group decided to reconcile with Deputy PM Prawit, since the General is well-respected amongst many MPs.

Sources: Than Settakij, Krungthep Turakij

  • Media reported on a young lady who commit suicide. She drew a portrait of PM Prayuth and wrote a poem saying this government is so cruel.—all media outlet

Business:

Aviation

  • Finance Ministry is expected to guarantee a loan worth 50 billion Baht to rescue Thai Airways.  The State Enterprise Policy Committee (SEPC) meeting approved in principle the proposal to rehabilitate the national carrier and assigned a financial consultant to work out a rehabilitation blueprint.  Central to the plan is the bailout loan for the airline. 

Source:  https://www.bangkokpost.com/business/1910244/sepc-to-throw-thai-lifeline

Monetary Measures

  • As of 24 April, some 9 commercial banks have sought liquidity support worth 56 billion Baht from the Bank of Thailand’s Mutual Fund Liquidity Facility (MFLF).  The MFLF allows commercial banks to purchase investment units from high-quality money market funds/daily fixed income funds that are affected by decreased market liquidity.  Commercial banks can use the underlying unit trust as collateral to get liquidity support from MFLF, but Bank of Thailand will repurchase only underlying assets that meet its requirements.  Overall the MFLF had provided assistance to 30 mutual funds. 

Source:  https://www.bangkokpost.com/business/1910304/9-banks-seek-central-bank-mflf-aid#cxrecs_s

  • The Bank of Thailand’s 400 billion Baht Corporate Bond Stabilisation Fund (BSF) started operating on Wednesday as part of the Stimulus Phase II plan. BSF will invest in high-quality, newly issued bonds by corporates that cannot roll over maturing corporate bonds during 2020-2021.  Firms must first secure other sources able to take up at least half of their bonds being rolled over before they seek support from the stabilisation fund. BSF is a pre-emptive move to build investor confidence, which if not used, is good. 

Source:  https://www.bangkokpost.com/business/1910048/bond-market-more-stable-but-not-yet-recovered-bot#cxrecs_s

Investment & EEC

  • The Thai government will forge ahead with the MRO project at U-Tapao airport despite Airbus’s withdrawal from the joint venture deal with Thai Airways.  Thai Airways will continue seeking other investors and at the same time will go ahead and invest in the tools and equipment, for which Airbus will provide the training and technical know-how.  The national carrier will wait to negotiate with Airbus at a later date should it become ready to invest in the MRO again.
  • Deputy Prime Minister Somkid also urges Thailand to prepare for an influx of investment from Japan.   The Covid19 outbreak had prompted the Japanese government to reduce investment in China as it has been too reliant on supply chain with China.  Instead, Japan is now seeking to increase investments in ASEAN countries, including Thailand. 

Source:  https://www.bangkokbiznews.com/news/detail/878097?utm_source=category&utm_medium=internal_referral&utm_campaign=economic

  • Thailand’s 2020 manufacturing production index (MPI) is forecasted to reach a record low of negative 6-7 percent.  MPI in March declined for the 11th month in March, down 11.25 percent YoY.  Capacity utilisation rate was 67.2 percent in March, decreasing by 73.9 percent YoY.
  • However, MPI in March increased by 1.8 percent compared to February owing to the recovery of the export sector.  Demand for hard disk drives, air conditioner, medicine and frozen seafood increased YoY.  The automotive industry and related industries were hit hard as they decreased 24.6 percent.

Source:  https://www.bangkokpost.com/business/1910228/mpi-dragged-down-to-record-low-negative  

https://www.bangkokpost.com/business/1909912/march-factory-output-drops-11-25-?fbclid=IwAR09QV0DdEVI7HoIzD925AHi7DgrzIjvzILcxXuJUKJ6AVIJP1YP_N_TVgk

Headline summary as of 29th April 2020

News

  • Updates related to COVID-19:
    • Today, Thailand reports nine newly confirmed cases, the total of 2,947 cases. Out of the total cases, 2,665 patients have recovered and total 54 death toll.
    • Turmoil broke out outside the Finance Ministry’s yesterday after a woman decided to lie down in front of the ministry’s entrance in protest that she has yet been granted the 5000-baht cash handout by the ministry. Earlier last week, there was another woman drank poison claiming to commit suicide in front of the Ministry.—all media outlet
    • In a weekly cabinet meeting, the Cabinet decided not to postpone the holidays but advised the public to stay at home and refrain from travelling out of their provinces.—all media outlet
    • The cabinet decided that the easing of business closure to be reopened will be conducted in a phasing manner. Each phase will be 14 days apart. Despite the speculation earlier, the cabinet has not laid out the exact dates of the reopening.—all media outlet
    • Bangkok Metropolitan Administration has decided that they are planning to re-open 8 businesses (restaurants, markets, sport venues, parks, beauty salons, pet clinics, hospitals and golf courts), but it have to wait until they got the green light from the central government.
    • The Centre for Covid-19 Situation Administration (CCSA) on Tuesday suggested that the alcohol sales ban be renewed starting from May 3. The current ban expires on April 30, meaning there would be a “grace period” of two days from May 1-2 before the ban restarts on May 3.—Bangkok Post
  • Deputy PM and Minister of Public Health Anutin , echoing the requests by civil societies, said that the ban on agricultural chemicals enforcing on 1 June should not be postponed, despite the request by the Thai Chamber of Commerce to postpone the ban to be from 31 December, citing diffulty amidst the COVID-19 situation.—Manager, Bangkok Post

Politics

  • This morning media asked Deputy PM Prawit, who reportedly orchestrated executives reshuffle of the main ruling Palang Pracharat Party, about the wedge within the party. He replied that there is no conflict and he affirmed that there is no change in the leader and secretary-general positions.—Krungthep Turakij
  • The rift within the main ruling Palang Pracharat has attracted media attention:
    • An article elaborates on the rift as a ‘coup’ to clip the power of coalition partners. Whether the plan can be proceeded or not, depends very much on PM Prayut’s take on this plot.–thisRupt
    • “No time for party discord”-Bangkok Post

Business

Cabinet’s Decisions on 28 April

  • The number of 5,000 Baht cash handout recipients is expanded to 16 million people from 14 million to cover a broader range of self-employed people, with the total budget of 240 billion baht.  The initial handout period is set to span 3 months from 24 March – 30 June 2020.
  • Farmers will receive financial assistance of 5,000 Baht per month for 3 months from May – July 2020.  The government had set a budget of 150 billion Baht to cover an estimated 10 million farmer households.  Of this figure, 8.4 million families are already registered with the Ministry of Agriculture’s database.  The remaining 1.6 million farmers can register with the government database until 15 May.
  • An additional 458 million Baht is approved for the tapioca price guarantee scheme for fiscal year 2020-21, an increase from the 9.6 billion Baht budget.  The additional budget will be handled by the Bank for Agriculture and Agricultural Cooperatives.
  • The government will pay the 2 million registered disabled people 1,000 Baht each.  The welfare for some 120,000 disabled people with cards registered for a period of 18 years is raised to 1,000 Baht from 800 Baht per month, starting from 1 October.

Source:  Thai Government fb page 28 April

https://www.bangkokpost.com/thailand/general/1909376#cxrecs_s

www.nationthailand.com/news/30386967

  • The cabinet approved an action plan for food processing industry development for 2019-27 with the budget of 6.6 billion Baht.  The action plan aims to upgrade Thailand to become a processed food hub in ASEAN and the top 10 global food exporters by 2027.  The goal is to upgrade the processing of targeted food industries, biofood and use digital technology to support innovative food.  Source:  https://www.bangkokpost.com/business/1909476/cabinet-gives-green-light-to-food-processing-plan
  • A special tax package is approved to draw manufacturing plants to Thailand.  Tax deductions will be applicable to investments in automation and the hiring and training of high-skilled workers, with tax break varying between 50 and 150 percent of their actual expenses.  The package is subjected to final approval from the cabinet.  Source: http://www.nationthailand.com/business/30386940

One-month summary for the 5,000 Baht cash-handout scheme

  • A total of 24 million applicants have registered for the cash hand-out, but 1.7 million were rejected because they did not to pass identity authentication.  As a result, 16 million people are approved as recipients. 
  • Of the 16 million recipients, 10.6 million have passed the criteria.  Some 7.5 million received the handout from 8 April to 29 April, with the remaining 480,000 million set to receive it on 30 April and 260,000 million in the first week of May.
  • Disqualified applicants comprise farmers (4.2 million), civil servants who are receiving welfare and workers covered by social security fund (1.1 million) and those who cancelled their applications (950,000). Sources:  https://www.mof.go.th https://www.bangkokpost.com/business/1909604/stipends-due-to-16m-applicants

Others

  • Dr Supavudh Saicheua, adviser to Kiatnakin Phatra Financial Group, said Thailand is vulnerable to a second wave of Covid19 infection during the rainy season in June.  Economic losses could result in 10 percent GDP contraction and the one-month lockdown in Thailand would cause export to decline by 5%; tourism and services by 30-40%; the automotive by 20% and real estate sector by 20-30%. Source:  https://www.bangkokpost.com/business/1909536/10-contraction-seen-from-renewed-outbreak

Aviation

  • Two airlines, Nok Air and Thai Viet Jet, have been flying the domestic routes, with Air Asia and Lion Air set to resume their flights on 1 May. 
  • In the second week of April (12-18 April), the number of international passengers dropped by 51.8 percent and domestic passengers by 47.7 percent.  This is the lowest passenger load factor since the pandemic outbreak.  The total number of flight cancellations as of 20 April was 144,201, equivalent to 26.9 percent of the number of flights scheduled to fly in the summer of 2020. 
  • International cargo airfreight dropped 1.5 percent to the volume of 12,781 tonnes, particularly at Don Muang airport.  Domestic cargo airfreight declined by 43.6 percent to 71 tonnes from the previous week, except for Nakhon Si Thammarat airport that saw an 8.7 percent increase to 4 tonnes.  Source: https://www.thansettakij.com/content/business/431851?fbclid=IwAR1dD2eBBJMvmTSNOmXDEjrE2AE7Z6ugQd9HxsfZY_UZf8n5WtrNG8V63Zw

ASEAN/World

  • US President Trump said the US will hold a thorough investigation into China over the pandemic and that “COVID-19 reparations” is coming.—Thai Post

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