KEY ISSUES AT A GLANCE
- Sony separates production of cameras for China and no-China markets. Sony Group has transferred production of cameras sold in the Japanese, U.S. and European markets to Thailand from China, part of growing efforts by manufacturers to protect supply chains by reducing their Chinese dependence. Sony’s decision is the result of the US-China trade war, as well as China’s strict zero COVID policy. Sony already has a semi-conductor manufacturing facility in Thailand; the first for Sony outside Japan. Source: Asia Nikkei, Prachachart Turakij
- No House dissolution yet. Prime Minister Prayut Chan-o-cha said he will not call for the dissolution of the House of Representatives yet despite having the legal grounds to do so after two amended organic laws for holding elections took effect on Sunday. He said the Election Commission (EC) still needs time to prepare for the coming polls. “Not yet, the EC will be given time to work [on preparations for the polls] first,” he said. Source: Bangkok Post
AUSTRALIA IN THE NEWS
- Australia Day. Australian Ambassador Dr Angela Macdonald hosted a Celebrate Australia Day reception to mark Australia Day with Gen Boonsrang Niumpradit, Mr Sanan Angubonkul, Mr Anucha Burapachaisri, Dr Prateep Tangmatitham, and ML Laksasubha Kridakon joining the event at the Ambassador’s Residence on 26th January. Source: Thairath Print Edition
- Princess Confers 2022 Mahidol Award. HRH Princess Sirindhorn conferred the 2022 Prince Mahidol Award to honour four laureates for their work in the fields of medicine and public health. Fellow Americans Dr Douglas R Lowy, Dr John T Schiller, along with Prof Ian H Frazer from Australia received the award for their contributions to the public health sector. As Prof Ian was unable to attend, Australian Ambassador to Thailand Dr Angela Macdonald received the award on his behalf. Source: Bangkok Post Print Edition, Krungthep Turakij, Matichon Print Edition
- Flickerfest: Watch short films in celebration of Australia Day. The Australian Embassy in Thailand held Filckerfest showcasing ten best Australian shorts as part of its Australia Day celebrations. The films screened at the event portrayed Australia as a diverse nation giving the audience a bigger picture of modern Australia as it is today. As the audience enjoyed the ten amazing shorts, it was as if they embarked on a journey to the Land Down Under. The film screening was a great communication tool to tell the Story of Australia while it also strengthened the people-to-people links between the two countries. Source: Krungthep Turakij Online & Print Edition
GENERAL
- No significant announcement.
POLITICS
- Court rejects bail applications for 10 political prisoners and detainees. The Criminal Court has rejected bail applications for ten “political” prisoners and detainees on the grounds that most of them have been charged with serious offenses, which range from possession of explosives, arson and causing damage to public property to inciting unrest and lèse majesté, during their protests last year. Source: Thai PBS World
- Thaksin’s daughter rejects rumours of a secret deal for his return to Thailand. “Honestly speaking, there has been no such deal. Pheu Thai is now focusing on campaigning to win a landslide victory [in the upcoming general election,” she said. “My dad has been abroad for 17 years already. He should have his own method and process [of returning to Thailand]. I respect his decision. And he already has said that he would not involve any political party,” Paetongtarn said. Source: The Nation, Bangkok Biz News
- No House dissolution yet. Prime Minister Prayut Chan-o-cha said he will not call for the dissolution of the House of Representatives yet despite having the legal grounds to do so after two amended organic laws for holding elections took effect on Sunday. He said the Election Commission (EC) still needs time to prepare for the coming polls. “Not yet, the EC will be given time to work [on preparations for the polls] first,” he said. Source: Bangkok Post
ECONOMICS
- Thai-EU FTA; Jurin to submit for cabinet’s consideration in a couple of weeks. Thailand and the EU have agreed to pursue FTA negotiations following Commerce Minister Jurin’s meeting with the EU Trade Commissioner Valdis Dombrovskis last Wednesday. Both countries are now starting the internal processes, with Thailand to seek formal approvals from the cabinet in early February and the EU from their 27 members. The Thailand-EU FTA negotiations are scheduled to start in Q1 of this year if all goes according to plan. Source: Thansettakij, Bangkok Post
- Clear signals that interest rate hike will continue. The Bank of Thailand (BOT) has unanimously raised policy rate by 0.25 percent, bringing the rate to 1.5 percent per annum in a move that is in line with Thailand’s economic recovery. The BOT signals it may continue raising interest rate, dismissing concerns about the Baht appreciation which is propelled by improving tourism. However it cautioned against inflation which may have stabilised but is expected to remain on the high side. Siam Commercial Bank anticipates that tourist arrival number will now reach 30 million, up from its original forecast of 28.3 million as China has swiftly reopened. CIMB Bank forecasts the Bank of Thailand will raise interest rate to 2 percent by Q2 this year in a bid to rein-in the demand-pull inflation. Source: Krungthep Turakij Print Edition, Bangkok Post
- Virtual bank battle heating up. Large commercial banks are vying for virtual bank licenses, with Kasikornbank signalling it is ready to collaborate with others to achieve this goal. Krungsri bank is studying the prospect while TTB has expressed no interest in joining the bandwagon as of now. FETCO President Kobsak Pootrakool reiterated brick and mortar banks must adapt to this change as virtual banks will strongly impact the financial sector by employing less people but reach more users. The Bank of Thailand said it plans to launch the guidelines for virtual bank license application by the end of Q1 this year. Source: Krungthep Turakij Print Edition
- AIS teams up with Gulf to embrace virtual bank. AIS and Gulf Energy are reorganising their online service businesses to brace for virtual bank operation by signing an MoU with Krungthai Bank to tap into AIS’s 45 million users. CP is sending its subsidiary True Money to join the game, while local company Jmart eyes becoming an alliance with other companies to foray into online digital industry. Source: Krungthep Turakij Print Edition
- Committee supports Turkey FTA. The Fourth Meeting of the Thai-Turkish Joint Committee on Economic and Technical Cooperation (JETC) has agreed to help expedite negotiations for the FTA between Thailand and Turkey. Both countries also discussed other issues of mutual interest such as boosting trade and enhancing investment, especially in Thailand’s EEC and to cooperate on science and technology, renewable energy and the BCG and defence industries. Source: Bangkok Post
- Sony separates production of cameras for China and no-China markets. Sony Group has transferred production of cameras sold in the Japanese, U.S. and European markets to Thailand from China, part of growing efforts by manufacturers to protect supply chains by reducing their Chinese dependence. Sony’s decision is the result of the US-China trade war, as well as China’s strict zero COVID policy. Sony already has a semi-conductor manufacturing facility in Thailand; the first for Sony outside Japan. Source: Asia Nikkei, Prachachart Turakij
For further information please see the embassy’s Facebook Page ‘Australian Embassy, Thailand’ or the Ambassador’s Twitter Page https://twitter.com/AusAmbBKK
