Japan Airlines (JAL) has launched a free service to insure international travellers against medical costs if they contract Covid-19.The carrier is offering JAL Covid-19 Cover as part of its JAL FlySafe programme to support passengers with essential travel needs during the global pandemic.The new service provided by Allianz Travel includes coverage of up to €150,000 (Bt5.47 million) in total medical costs resulting from the initial Covid-19 testing fee and subsequent medical treatment for those who test positive during their travels.Additional coverage for isolation costs and repatriation is also included. A global 24-hour support line in English and Japanese will also be available to assist customers exhibiting symptoms.The coverage will be offered from December 23.
Prime Minister Prayut Chan-o-cha and members of his Cabinet visited Bang Sue Central Station on Tuesday for a test ride on the new Red Line urban train.
The central station will serve as a high-speed train hub linking the three airports of Don Mueang, Suvarnabhumi and U-Tapao with the 10 stations of the Red Line.
Construction of the station is now 100 per cent complete, but the Red Line won’t launch full services until November 2021.
The Red Line, running between Bang Sue and Rangsit stations, will help shorten travel time between the city’s heart and urban areas to under 30 minutes thanks to high-speed (120kph) trains. Public test runs will start in March, with at least 272,500 passengers per day expected after the official opening in November.
Meanwhile, the State Railway of Thailand plans to develop a rental apartment project in Don Muang to accommodate residents whose properties were expropriated to build the high-speed train project.
The Tourism Authority of Thailand (TAT) has chosen the dating app Tinder to launch a new campaign aimed at solo travellers.
The “Single Journey” campaign comes with the hashtag #Don‘tJokeWithLoneliness and promotes domestic travel for tourists who like to travel alone, said Thapanee Kiatpaiboon, chief of TAT product promotion.
The campaign aims to reach 70 million people through Tinder and Facebook, generating 7 million trips and Bt100 million spending in the first quarter of 2021.
It will feature at least 20 routes covering different activities and all regions of the country.
The campaign will be piloted by trips on three routes, starting on Sunday (December 20).
Route 1 is dubbed “Praying to Buddha for love” and features a boat trip on the Chao Phraya to visit nine temples between Bangkok and Ayutthaya. Celebrity astrologist Tossaporn “Chang” Sritula will instruct travellers on how to pray for love, before the day ends with dinner aboard the boat. Booking for the December 20 voyage opens via the Sneakout fanpage and Tinder app on December 16, with free trips for the first 100 who register.
Route 2 for “Hot Singles” focuses on the beaches and party life of Koh Kai in Krabi.
Route 3 is dubbed “Chilling Single by Train” and features a romantic rail trip through the stunning scenery of Pasak Chonlasit Dam in Lopburi, followed by a meal on the reservoir.
More routes will be added, including trips to the bright lights of Pattaya and the hills of Mae Hong Son.
Solo travel is among the world’s most popular forms of tourism and tended to generate high spending, said Thapanee.
More than 20 singles travel routes would be launched in the near future with the aim of generating at least Bt100 million in the first quarter of 2021, she added.
Air pollution, especially in Bangkok, is worsening with the PM2.5 hitting dangerous levels in several areas.
In a press conference on Tuesday, Prof Dr Prasit Watanapa, dean of Mahidol University’s Faculty of Medicine, and Assoc Prof Nitipat Jiarakul, chief of Siriraj Hospital’s Division of Respiratory Disease and Tuberculosis, said it is necessary for the air-quality alarm system to be improved so people can protect themselves better. They also provided details on how minute particulate matter in the air can affect human health.
PM2.5 or particulate matter that is less than 2.5 micrograms in size and is created by car exhaust fumes, the burning of fields, construction and other substances created by agricultural processes. The amount of dust in the air usually rises during the cool season, though the PM2.5 levels depend very much on the sources, Nitipat said.
The main harmful components in air pollution are carbon, polycyclic hydrocarbons and heavy metals. When these substances enter the body, they cause severe inflammation and biological changes in the tissue from the nose to the lungs. This can result in nasal irritation, creation of mucus, sore throat and cough, as well as a higher risk of infections like pneumonia and even Covid-19, he explained.
People with chronic lung diseases like asthma and emphysema need to be particularly careful, he advised.
In the long term, air pollution can worsen the state of the lungs, and even cause emphysema among non-smokers as well as increase the risk of cancer because PM2.5 can enter the bloodstream and damage organs. It can also cause high-blood pressure, heart disease, cerebrovascular disease and chronic kidney disease as well as many other conditions like diabetes, wrinkled skin, dry eyes, vision impairment, sexual dysfunction, etc.
Though the public is aware of the dangers of PM2.5, it is necessary for the government to step in and introduce strict measures to control the sources of dust pollution as well as provide better alerts for vulnerable groups.
Dr Prasit said the authorities should revise the air quality index (AQI) and create a colour code to provide warnings for people sensitive to dust. At present, the AQI only provides warnings when PM2.5 levels rise above 50mcg per cubic metre of air (μg/m3), which is the Thai standard. In comparison, the World Health Organisation sets safe levels at 25μg/m3.
Dr Prasit has suggested that alerts be provided when air quality drops to 37.5(μg/m3) to warn those who are sensitive to dust.
The number of Japanese restaurants in Thailand grew by 12.6 per cent this year to 4,094, the Japan External Trade Organisation (JETRO) said on Tuesday.
More than half (2,105) are located in Bangkok. The remainder are located in Chonburi and Nonthaburi (256 each), Chiang Mai (162), Samut Prakan (129), Pathum Thani (102), Phuket (69), Songkhla (68), Nakhon Ratchasima (63) and Nakhon Pathom (56). An increase in sushi outlets was the main reason for the rise.
JETRO president Atsushi Taketani said the customer base for Japanese cuisine was expanding as people became familiar with the food.
However, high competition and the Covid-19 crisis saw 726 Japanese restaurants close this year in Thailand – the highest number since 2007.
He said Thailand’s Covid-19 lockdown saw a 20-30 per cent drop in restaurant sales, forcing many out of business. Restaurants patronised by wealthy Thai customers had recovered quickly, but those dependent on foreign tourists were still struggling, he added.
Despite an uncertain outlook, Taketani said Japanese businesses had already contacted JETRO with plans to open restaurants in Thailand next year.
He added that JETRO has joined AIS, Gojek and GrabFood to organise the “Let’s eat JAPAN” promotion campaign.
This year, Japan exported food and beverages to Thailand worth almost Bt10 billion, mostly seafood, beef, apples, grapes and Japanese rice wine.
The Board of Investment (BOI) will ask the Cabinet to approve new smart visa rules designed to attract more overseas talent to work in Thailand.
The new rules have already been given the green light by the government’s Centre for Covid-19 Situation Administration (CCSA).
Among the move’s aims is to allow digital freelancers currently working in Thailand to exchange their tourist visas for smart visas. To be eligible, applicants must have an employment contract with a foreign firm lasting at least six months and proof of qualifications and professional experience. BOI partners will help in screening their professional backgrounds.
After receiving the smart visa, their expertise could be tapped by universities, the Digital Economy Promotion Agency, National Innovation Agency, National Science and Technology Development Agency, and others, said BOI deputy secretary general Narit Therdsteerasukdi.
“The [resulting] influx of talent will create a talent pool in the country,” he assured.
Known as digital nomads, the foreign freelancers currently work in Bangkok, Phuket, Chiang Mai and even on Ko Pha-ngan in Surat Thani province, where they have set up a co-working space.
The new visa rules will also cover experienced foreign executives in several businesses – helping to boost development of an investment ecosystem, especially for start-ups. Their expertise could be applied to innovation camps, co-working spaces, advanced materials and packaging, and 3D printing.
The BOI also aims to lure academics to government universities to teach subjects beyond science and technology. These would include innovation, technology management and entrepreneurship.
The new visa rules would allow small businesses to tap foreign talent by reducing the minimum salary they can offer foreigners from Bt100,000 to Bt50,000.
The new rules also relax requirements for executives, reducing the 10 years’ experience and education level (bachelor’s degree) currently required.
So far, 514 foreigners have been granted smart visas since they were adopted in 2018. About half work in digital businesses, followed by automation and robotics. About 47 per cent of them work in start-ups.
Currently, Thailand offers four types of smart visa – the SmartT for talent, Smart E for executives, Smart I for investors, SmartS for start-ups and SmartO for family members.
Holders are permitted to stay up to four years in Thailand without a work permit. The visas also allow travel in and out of the country, as well as fast-track privileges at airports.
The Stock Exchange of Thailand (SET) Index closed at 1,477.21 on Tuesday, up 1.08 points or 0.07 per cent. The volume of total transactions was Bt91.74 billion with an index high of 1,478.61 and a low of 1,459.97.
In the morning session, an analyst at Krungsri Securities said he expected the day’s index to fall to between 1,465 and 1,470 owing to the lack of elements to stimulate investment.
“Besides, the SET will be pressured by the slowdown in foreign funds, uncertainty over the Bank of Thailand’s measures to curb the baht’s appreciation and the index’s tight valuation,” he said
The top 10 stocks with the highest trade value today were KBANK, CPALL, BAM, ADVANC, PTT, IRPC, PTTGC, AOT, IVL and SCC.
As of 4.30pm, the price of oil dropped by US$0.07 or 0.15 per cent to $46.92 per barrel, while gold rose by $16.50 or 0.90 per cent, to $1,848.60 per ounce.
Other Asian indices were on the downslide, except the Shenzhen SE Component Index:
Japan’s Nikkei Index closed at 26,687.84, down 44.60 points or 0.17 per cent.
China’s Shanghai SE Composite Index closed at 3,367.23, down 1.89 points or 0.056 per cent, while Shenzhen SE Component Index closed at 13,763.31, up 71.18 points or 0.52 per cent.
Hong Kong’s Hang Seng Index closed at 26,207.29, down 182.23 points or 0.69 per cent.
South Korea’s KOSPI Index closed at 2,756.82, down 5.38 points or 0.19 per cent.
Taiwan’s TAIEX Index closed at 14,068.52, down 142.53 points or 1 per cent.
The Stock Exchange of Thailand (SET) Index is expected to hit 1,600 points at the beginning of next year thanks to foreign fund inflows, experts said.
Wijit Arayapisit, a research department strategist at Maybank Kim Eng Securities, expects the index to hit 1,600 points from signs of economic recovery, positive news of Covid-19 vaccine, improved liquidity, foreign fund inflow and analysts’ forecast adjustment.
“We expect the economy to recover next year from the lowest point this year, though we do not expect to see a mass sell-off of shares, which was seen in previous years,” he said.
Therdsak Thaveeteeratham, executive vice president for research at Asia Plus Securities, also expects more foreign funds to flow into Thai stock market next year as more foreign investors are paying attention to risk assets.
He expects SET to hit 1,550 points next year from signs of economic recovery as the country’s third-quarter gross domestic product (GDP) showed better than expected results.
“SET skyrocketed in the last two months. Thanks to hopes over Covid-19 vaccine and non-violent political situation which encouraged investors to invest in stock markets, especially in the Asian region,” he said.
Padermpob Songkroh, managing director at Yuanta Securities expected SET in the next six months to rise as the country’s economy is expected to bottom out which can be seen in the improvement of third-quarter GDP.
“Therefore, we expect the country’s GDP in the fourth-quarter this year to rise further,” he said.
Kavee Chukitkasem, deputy managing director at Kasikorn Securities, said he expects SET to hit 1,562 points next year from foreign fund inflow amid the economic recovery.
However, he advised long-term investors not to buy Thai shares because they are overpriced and not very attractive for foreign investors.
“SET may hit 1,600 points as the country’s GDP is expected to rise until the second quarter next year, but the GDP figures will return to normal in the remainder of next year,” he said.
Risks to financial stability in certain areas could rise despite improving economic conditions, and one such area will be the deterioration in households and businesses’ ability to service their debts, the central bank said.
Earlier this month, the Bank of Thailand (BOT) met the Monetary Policy Committee (MPC) and the Financial Institutions Policy Committee (FIPC) to assess risks to Thailand’s financial stability.
The committees said the country is financially sound overall, as commercial banks and insurance companies have substantial capital buffers, while financial markets continued to function properly.
Yet despite the better-than-expected economic outturns, the Thailand’s economic recovery will likely be gradual and uncertain. Risk factors ahead could include the possibility of a second Covid-19 outbreak, the scale of re-opening the country to foreign tourists in 2021 and the continuity of the government’s economic stimulus measures.
Under this environment, risks to financial stability in certain pockets could rise. One key area would be the deterioration in debt serviceability of households and businesses, especially SMEs, which could spill over to other sectors. These risks need to be managed with targeted and timely measures, so the economic momentum is not affected. The committees conducted a comprehensive assessment of financial stability risks and highlighted two priority areas:
• Supporting businesses and households in a targeted and timely manner to contain financial stability risks. Businesses have started re-opening, but are showing different paces of recovery. As a result, support measures – including structural, demand-sided, and financial policies – should be tailored to address the problems and the viability of each business segment as follows:
o For viable firms facing temporary liquidity shortage, liquidity support via new loans and proactive debt restructuring would be appropriate.
o For already-burdened-by-high-debt firms facing liquidity shortage, funding support for business restructuring, through credit or debt-to-equity swap mechanism, and proactive debt restructuring should be prioritised. In this light, the Office of the Securities and Exchange Commission (SEC) was in consultation with government and private agencies to evaluate the possibility of establishing funds to help firms affected by the outbreak.
o For firms facing competitiveness issues for some time, attention should be given to structural measures aiming to reduce excess capacity and support adaptation of business models to meet changing consumer demand.
With regard to households, measures aiming to reduce debt-servicing burden, notably debt payment holidays and instalment reductions, have reached a large number of retail borrowers so far. However, some borrowers still need additional help through debt restructuring.
The BOT has urged financial institutions to help borrowers in a manner tailored to borrowers’ problems and needs by letting them “opt-in” for support programmes, instead of applying broad measures. In addition, debt restructuring for retail borrowers was pushed to be more comprehensive and suitable to borrowers’ debt serviceability in the long term. Alongside these debt measures, measures to support income and reduce expenses should also be implemented. These include government’s measures on employment support and expenditure reduction for low-income households, as well as measures by the Office of Insurance Commission (OIC) to help policyholders by reducing premiums and extending premium payments.
• Safeguarding stability of the financial sector and containing spillover from financial markets. Measures undertaken to stabilise domestic financial markets, namely the Corporate Bond Stabilisation Fund (BSF) and the Mutual Fund Liquidity Facility (MFLF), had been instrumental in restoring investor confidence and market functioning. However, the credit spreads of corporate bonds rated BBB or below and unrated bonds, which had picked up sharply in the first half of 2020, were yet to recede to normal levels, reflecting investors’ concerns on these segments. Also, there continued to be rollover risks in high-yield bonds (non-investment grade and unrated), which were issued mainly by real estate developers. Although these risks are still present, assessments indicate that they will not lead to systemic risks. While overall the situation has improved, the economic outlook remains highly uncertain and capital markets would likely remain volatile, so both the BSF and the MFLF still need to be maintained to prepare for future shocks that could affect investor sentiment.
Moreover, there remains a need to prepare additional measures for risks from market segments not covered by the BSF, such as supporting the establishment of high-yield bond funds, which could provide additional liquidity and help stabilise the corporate bond market. With regard to the savings cooperatives system, the search-for-yield behaviour continues to be present, as reflected by the growing proportion of excess liquidity invested in equity and corporate debt securities. Thus, there continues to be a need to strengthen and effectively implement related regulations, such as investment limits on financial securities.
Furthermore, financial regulators have implemented several measures to ensure the financial sector possess adequate buffers to withstand potential risks and support economic recovery going forward. For example:
o The BOT set the limit on banks’ dividend payments, prohibited the buyback of stocks and debentures that could be counted as regulatory capital before maturity, and relaxed the eligibility criteria for regulatory capital to be on par with the international standard. The objective was to ensure that financial institutions have enough capital cushion to withstand unanticipated events and play a key role in supporting economic recovery.
o The SEC was in the process of revising regulations to provide asset management companies with more liquidity management tools, as approved by the Capital Market Supervisory Board.
o The OIC was in the process of issuing guidelines on subordinated debt issuances by life and non-life insurance companies to be counted toward regulatory capital, aiming to strengthen capital and liquidity positions of insurance companies. Also, the OIC issued the guidelines for insurance companies on IT security and cyber risks, which emerged as new risks for the insurance industry.
Given economic and financial uncertainties going forward, the BOT, the SEC, and the OIC will continue to collaborate closely in assessing risks as well as the adequacy and effectiveness of measures undertaken. The regulators will also stand ready to impose additional measures to contain financial stability risks and support economic recovery. Further cooperation with government agencies would be essential going forward, while financial regulations should be coordinated and reviewed to ensure that they continue to be appropriate in the changing economic and financial context.
The Stock Exchange of Thailand (SET) Index fell by 6.10 points, or 0.41 per cent, to 1,470.03 in the morning session on Tuesday.
An analyst at Krungsri Securities expected the day’s index to fall to between 1,465 and 1,470 due to lack of factors to stimulate investment.
“Besides, the SET would be under pressure from the slowdown in foreign funds flows, uncertainty over the Bank of Thailand’s measures to curb the baht’s appreciation and the index’s tight valuation,” he said
He recommended that investors buy:
▪︎ PTTEP, PTTGC, TOP, IVL and SPRC that benefit from rising oil price.
▪︎ MINT, CENTEL and AOT that benefit from positive news of Covid-19 vaccine.
▪︎ BAM, DELTA and COM7, which are expected to be listed in the SET50 Index.
▪︎ JMART, which is expected to be listed in the SET100 Index.
The SET Index closed at 1,476.13 on Monday, down 6.54 points or 0.44 per cent. Total transactions amounted to Bt107.3 billion with an index high of 1,495.18 and a low of 1,471.56.
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