To keep the Thai economy and businesses competitive in a globalised digital and financial world, Thai investors, business owners and professionals from financial institutions have a chance via the new course to learn important and useful knowledge from national and international experts who have first-hand experience in the new crypto economy.

The first CAR course will take place from June 12 to August 14.

An introductory press conference about the innovative training course will be held on May 22 at The Campus, classroom 2, of the Grand Hyatt Erawan hotel in Bangkok.

Korn Chatikavanij, chairman of the Thai Fintech Association, said on Tuesday: “The Crypto Asset Revolution course is the first programme in Thailand that has a complete curriculum about the global crypto economy. Our experienced national and international experts will share their knowledge about both investing in digital currencies and fund-raising.”

“The course will integrate both intensive theoretical and practical situations to prepare participants to understand and analyse market trends, help with business planning, recognise opportunities and threats and how to deal with potential critical market situations. The content and objectives of the CAR course are of great importance to both the public and the private sectors to understand and get ready for present and future global digital economic systems,” he added.

Karndee Leopairote, chief executive officer and co-founder of ICORA, said: “The different professional backgrounds of the participants of the CAR course is a very important success factor of the programme. With investors, business owners, professionals from the finance sector and government officials, the participants can not only share experiences and ideas, but can also influence and keep the country up to date with the new trends in digital economic systems.”

Nintita Loetruangsuphakun, chief strategy officer of ICORA and CAR course director, said the 11-week course was divided into five main topics: introduction to crypto currencies and ICOs; blockchain technology and crypto currency; initial coin offering; ICO growth-hacking day; and group work for ICO growth hacking.

SINCE THE May 2014 coup d’etat, the Prayut government has been running the Thai economy with a tight grip facilitated by special powers under Article 44 of the charter.

For the past four years, the results have been generally mixed with the majority of Thai people’s economic wellbeing remaining stagnant or worse.

Over these years, multiple polls have often suggested that the government’s economic management was not delivering results, especially among medium- to low-income groups.

On the other hand, the rich appeared to be getting richer as the country’s economic growth since 2014 has averaged nearly 4 percentage points per annum, but the wealth is not being evenly distributed.

Big business, export-oriented industries, tourism and related businesses were among the major beneficiaries of economic expansion during this period.

Farmers, in contrast, have been hurt by the relatively low market prices of agricultural and other commodities in the past several years, leaving most unimpressed by the government’s economic performance.

Other low-income wage earners have seen minimal tangible benefits, as the country’s official minimum wage has increased just slightly from Bt300 per day to Bt305-322 over those years.

Yet the latest 2018 Forbes list of Thai billionaires paints a sharp contrast as the country’s richest businesspeople enjoy a disproportionate wealth boom, driven by a stock market upturn and a stronger Thai baht.

Many of these billionaires have been closely allied with the government’s Pracha Rath projects, which use partnerships between the public and private sectors as a state mechanism to tackle economic inequality and related issues.

The Forbes list of the 50 richest Thai billionaires shows their combined wealth rose nearly one-third over the past year to a total of more than US$162 billion (Bt5.2 trillion).

Dhanin Chearavanont and other key members of his family have remained the country’s richest people on the Forbes list, with a combined wealth of US$30 billion due to high share prices for their major holdings in 7-Eleven, agro-industrial and other businesses.

Dhanin’s CP Group is among several Thai conglomerates involved in the Pracha Rath projects, which aim to help community-based enterprises in various provinces to grow their businesses as a means to narrow the economic gap and tackle rural poverty.

Other Thai billionaires such as Charern Siriwatanapakdi of Thai Beverage Group, the Chirathivat family of Central Group, and the Chokewatana family of Saha Group have also been closely associated with the Pracha Rath schemes.

While Pracha Rath and other projects of the Prayut government are arguably sustainable in terms of alleviating rural poverty, they have been less popular among farmers and other low-income people when compared to the previous government’s campaigns.

The previous government’s massive rice-pledging scheme cost an estimated Bt500 billion in taxpayers’ money but its benefits were only short term while its corruption was widespread.

To deliver better longer-term results, policymakers need to come up with more creative programmes to tackle poverty, which are also not politically addictive and whose cost-benefit ratio is more reasonable.

According to the latest Nida Poll conducted in February this year, Prime Minister Prayut Chan-o-cha unsurprisingly got high scores for his decisiveness in restoring law and order over the past years.

However, his government’s economic management remained a bone of contention as most respondents said the economy had not been good for them largely due to the uneven distribution of wealth over recent years.

The same opinion was shared by respondents to another survey conducted by Bangkok Poll earlier this year – they also urged the government to further improve its economic management.

Despite unfavourable world market prices for farm and other commodities that are out of government control, as well as other negative factors, the government still owes the public a better performance on the economic front.

The Ministry of Transport said it was now aiming to finish the study in July, with the announcement following discussions yesterday with representatives of the Thai Bus Operators Association and The Transport Co Ltd.

The operators say they have been hit by high costs since last year, since the steady rise in oil rises, but fares have been capped.

Transport Minister Arkhom Termpittayapaisith said: “The Ministry of Transport understands the problem and will rush to finalise the review of the bus fare structure, which should be in line with costs.”

Regarding fuel costs, the ministry has had discussions with the Ministry of Energy, which uses a fund to maintain the diesel price at below Bt30 per litre and has been encouraging operators to use cheaper biodiesel at Bt20 at litre, he said.

Sujinda Cherdchai, the president of the Thai Bus Operators Association, said after the discussions that the results would be relayed to its members. She understood there would be a further meeting within a week or two and that there were doubts over the use of the biodiesel at Bt20 a litre on concerns over possible damage to vehicle engines.

A fare rise based on the formula of Bt0.10 per kilometre has been proposed, reflecting the operators’ inability to shoulder the burden of high oil prices.

The diesel price had stayed at Bt29.79 per litre since May 19, 2010, but was increased by Bt10.10 from February 1, 2016.

“From February 2016, the (bus) operators have not increased their fares, while the oil price has continued rising,” Sujinda said. “More than 30 per cent of the bus operators have terminated their businesses from early 2017 to February this year.”

Sujinda said that the proposed fare rise is not expected to have much impact on consumers, given the high competition from low-cost airlines and operators of public vans. The bus operators see the fare rise as reasonable, she said.

The Transport Department’s registered buses now number more than 10,000. Of the total, 5 per cent uses natural gas vehicle (NGV) and 95 per cent use diesel.

Yoo Chienyuenyongpong, president of the Asean Trucking Federation (ATF), went to Ministry of Transport to ask the government to use the Oil Fund to help relieve the problems caused by the rising diesel prices. Nowadays, the energy cost in transportation accounts for 50-55 per cent of total operating costs.

The transportation cost per trip has risen by 7 per cent on average. About 5 per cent goes on oil costs and 2 per cent to intercity motorway tolls.

The federation has asked the government to sustain the appropriate diesel price within four months as a means to give time for the operators to adjust,” said Yoo, adding that further discussions would be needed after that.

Charoenporn Charoentham, managing director of the shuttle boat service Chao Phraya Express Boat, said that if the diesel price rises to more than Bt29 per litre for more than 15 days, express boat operators may have to raise their fares by Bt1.

Chavalit Maetayaprapas, executive of the Khlong Saen Saep shuttle boat operating company Krobkrua Khonsong, shares this view and plans to meet the Marine Department to ask for a fare rise of Bt1 per trip.

An anonymous source from the Ministry of Energy said that the ministry is monitoring crude prices closely after pressure from truck and bus operators for the proposed use of the Oil Fund to sustain the diesel price.

According to the Electricity Generating Authority of Thailand, a crude price of close to US$80 per barrel may be reached within the next six months.

The National Economic and Social Development Board (NESDB) said it now expects 2018 expansion in the range of 4.2 to 4.7 per cent – up from an earlier projection of 3.6 to 4.6 per cent – after the economy grew at the fastest pace in 20 years for the three months of the year.

NESDB deputy secretary-general Wichayayuth Boonchit said gross domestic product (GDP) rose 4.8 per cent year on year for the quarter, driven by an acceleration in spending by the public and private sectors.

Thailand had suffered GDP contraction of 0.4 per cent in the first quarter of 2014, the worst performance for a quarter for the preceding five years.

For opening quarter of 2018, total investment edged up 3.4 per cent from the year-earlier period. Public investment increased 4 per cent.

Exports expanded 9.9 per cent, while tourism-based income jumped 16.8 per cent.

With the NESDB’s revised GDP growth forecast of 4.2 to 4.7 per cent, the median estimate is 4.5 per cent.

The health of the global economy and robust product prices have been cited as factors behind the strong growth performance.

The trend of rising exports is expected to firm up and the nation’s stronger economic base is likely to spur industrial expansion – aided by expenditure flows from the government.

The NESDB expects exports to grow 8.9 per cent for 2018, with public spending likely to rise 3 per cent and private investment in the order of 3.9 per cent. Private consumption is estimated to increase 3.7 per cent. Average headline inflation is projected in a range of 0.7 to 1.7 per cent.

Thailand’s current account is forecast to enjoy a surplus that amounts to 8.4 per cent of the nation’s GDP.

However, risks to growth loom in the form of increased prices for certain products and crude oil, along with expected rises in interest rates, amid global economic and financial uncertainties

Deputy Prime Minister Somkid Jatusripitak said he drew encouragement from the 4.8 per cent GDP marking the fastest growth in five years.

Broad indicators rising

The government had spent most of the past five years driving forward the economy, he said.

All economic indicators, including private investment, exports and tourism receipts, had improved, he said, adding the prolonged pressures in the agricultural sector had eased.

Somkid said that the strong GDP expansion was likely to raise the confidence of the private sector, increasing the prospects of greater corporate income.

If the scale of investment through public-private partnership (PPP) plans proceeds as planned, businesses in a range of activities will be boosted, with infrastructure and property projects to follow, he said.

Meanwhile, a meeting of the PPP committee chaired by Somkid, yesterday resolved to accelerate the pipeline of such projects. Three big projects are expected this year with investment of about Bt446.87 billion, according to Prapas Kong-Ied, director-general of State Enterprise Policy Office.

They are the Bt80.6-billion Nakhon Pathom-Cha-am intercity motorway, the Bt128.23 billion Tao Poon-Kanchanaphisek Ring Road mass rapid transit system, and the Purple Line’s Bt238.04-billion eastern and western section MRT project.

The Siam Commercial Bank Economic Intelligence Centre forecasts the economy will grow more than 4 per cent this year, citing the 4.8 per cent expansion achieved for the first quarter.

The centre’s confidence is based on encouraging signs across all sectors of the economy, as well as a reduction in household debt. These factors will boost consumer spending throughout the rest of the year, it said.

The Bank of Thailand’s senior director for the economy and policy department, Don Nakornthab, said yesterday that the economic expansion for the year’s first three months had exceeded the central bank’s expectations.

Don also highlighted the contributions from investment by the private and state sectors, as well as increased domestic consumption. He said the Bank of Thailand would announce next month a fresh estimate of economic expansion for 2018.

However, Don cautioned that the economy faced a range of risks – both internal and external. The latter included uncertainties over global trade policies and rising oil prices. On the home front is the issue of how well domestic consumption will hold up.

The government’s National Economic and Social Development Board, releasing its quarterly economic report on Monday, said this was the highest growth rate in 20 quarters.

The surge was driven by exports (valued at US$61.78 billion, up 9.9%), consumption (3.6%), private investment (3.1%) and public investment (4%).

The NESDB is now forecasting full year growth for 2018 of between 4.2 and 4.7%.

Vinaroj Supsongsuk, OAE director-general, said that the multiplier effect of the government spending on 15 key agriculture-related policies could drive the flow of money to 2.65 times the actual amount budgeted and generate additional farm income.

Of these 15 policies a total of Bt42.87 billion is focused on five areas: upgrading agricultural standards for sustainability extending across water resource management, fishery standardisation, development of a rice seed centre, assistance on debts to agricultural cooperative members and the Pracha Rath farm development institute.

Others key areas include promotion to add product value, use of agricultural machines to replace workers, the organic agricultural product bank, a promotion system for large-scale farming, a learning centre to boost production efficiency for agricultural products, development of smart farming, agricultural area management under proactive agricultural plans, promotion of new agricultural theory, developing agricultural product markets and development of good agricultural practices (GAP).

Of the total money flow of Bt113.52 billion, about Bt79.65 billion comes from production of materials and related products in supply chains, as a result of equipment procurement in construction projects including water distribution systems and improvement of water sources for greenhouses.

About Bt33.87 billion came from wages in projects for farmers, such as the fees for instructors and travel allowances. Those wages are spent on household consumption, thus contributing to the income of shops and businesses in communities.

Another Bt9.36 billion is additional income for farmers from the Bt4.17-billion water resource management project.

The agricultural sector has seen higher potential through fishery standardisation, which has allowed the country to export more Thai fishery products to the European Union (EU) and non-EU markets.

As the programmes help reduce the production costs of farmers and food producers, increase promotion of products, or increase use of agricultural machines, sector incomes and profits are increased by 0.5-1.0 times.

Learning centres help boost the efficiency of producing agricultural products, while the smart farmers programme helps farmers become more self-reliant through learning about efficient production planning and making choices based on Agri-Map zones.

Activities or projects under the scheme aiming to raise capabilities of the agricultural sector and farmers are expected to raise future farm incomes through improved quality of products, value-added products, and increased knowledge of production and distribution channels for export.

The licence will allow it to provide credit reporting services. Within a year of licensing, the bureau should be in operation.

Zayar Nyunt, chief executive officer at Small and Medium Industrial Development Bank, said the bureau would help a great deal in building trust between bankers and businesses.

“Trust is really important. Many SMEs in Myanmar lack capacity, skilled labour, technology and finance. Policymakers are trying to address these issues, and the credit bureau is an outstanding outcome from that,” he said.

“We urgently need to raise awareness about the credit bureau. The more people know about the credit bureau, the more they will make good use of that.”

Yet, he warned that improving access to finance alone could not make a small business successful.

“We also need to educate them on effective planning by making good use of the loan,” he said.

The banker admitted the current interest rate could be a burden for small businesses. He urged the government to set a special interest rate for SMEs depending on the macroeconomic statistics.

“Our bank is providing as many non-collateral loans to SMEs as possible. We provide short-term loans with a payback period of either six or nine months, depending on our field observations. But we still have the deposit issues,” he said, stressing the need for more budget allocations to support SMEs.

Vikram Kumar, International Finance Corporation’s country manager for Myanmar, said a good credit bureau could make borrowers more transparent, give confidence to lenders, and prevent individuals and enterprises from getting into too much debt, thus enabling greater financing to SMEs.

“Cross-country studies have showed that economies with better credit reporting tend to have higher availability of funding for the private sector,” he said.

He said it would take time for the credit bureau to acquire members and be ready with relevant and reliable data. Once the credit reporting services are available, lenders will have information on at least three aspects of a borrower: total indebtedness level, full borrowing history and complete repayment history.

“These will significantly help creditors in risk management, reduce information asymmetry, and control multiple borrowings. It will be good for both increasing funding to SMEs and for maintaining financial stability in the country,” he said.

According to Kumar, all other economies in the Asia Pacific region have made substantial efforts to build up their credit reporting system in the past decade, which subsequently has increasing SME lending significantly.

“A similar implication proportionate to the size of the financial sector and economy could also be achievable in Myanmar,” he said.

The credit market in Myanmar could be significantly strengthened if other areas of reforms progressed. And secured transactions will enable lenders to take movable assets as collateral conveniently and safely, he added.

Kumar hopes for the gradual liberalisation of Myanmar’s credit market, including risk-based pricing of loans, relaxation of interest rate controls, and greater entry of non-deposit-taking lenders.

In a bid to improve SME lending in the agriculture sector, state-owned Myanmar Insurance recently partnered with RGK+Z&A Group and Singapore’s InfoCorp Technologies.

The agreement, which was signed last week, will involve identification of cows and buffaloes by enabling the use of livestock as collateral in the loan application process.

Directorate of Investment and Company Administration (DICA) also reduced company registration fees from 500,000 kyat (Bt11.9 million) to 250,000 kyat (Bt5.95 million), with effect from April 1, to reduce the cost of doing business for SMEs and encourage increased company incorporations.

Aung Naing Oo, director general of DICA, said preparations are underway for new regulatory notifications and forms, public education and the establishment of a new electronic companies registry system. The new system will enable fast and efficient company registrations, submission of company filings and communications with the company registration office.

He said the DICA had prepared for the implementation of the new Myanmar Companies Law, which would take effect on August 1.

Minn Naing Oo, managing director of Allen & Gledhill (Myanmar) Co, said Myanmar’s regulatory framework has been improved a lot, leading to tangible benefits for local and foreign businesses.

“Having a good regulatory framework is critical, but implementation of these new laws is more important. We need to raise awareness about these laws so that local businesses ensure benefits from that,” he said.

He also stressed the importance of capacity building in the judicial sector, particularly to improve judges’ and lawyers’ knowledge on commercial laws in Myanmar.

Khine Khine Nwe, joint secretary general at the Union of Myanmar Federation of Chamber of Commerce and Industry, said the chamber prioritised building capacity of SMEs by holding a number of workshops and training sessions every month.