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https://www.nationthailand.com/business/40012311

High inflation expected to last for the first half of 2022 is disproportionally affecting low-income workers, service staff and the self-employed, the Bank of Thailand (BOT) said on Sunday.

Inflation in January stood at 3.23 per cent as the price of oil and products such as pork rose in line with higher demand, said bank officials. The bank expects inflation to rise above its target range of 1-3 per cent in the first half of 2022 before falling back.

Inflation is hitting low-income people because they spend 45 per cent of their income on food and beverages, compared to just 26 per cent for high-income people, the bank said.

“Service sector workers and the self-employed are facing impacts from both high product prices and low incomes as their income is recovering more slowly than in the manufacturing sector,” BOT said.

It pointed out that the workers most vulnerable to inflation usually have household debts.

The BOT said it was mitigating the impact of inflation by keeping the interest rate low and launching soft loans, debt restructuring and debt clinics.

Published : February 14, 2022

By : THE NATION

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https://www.nationthailand.com/business/40012300

The baht opened at 32.69 to the US dollar on Monday, unchanged from Friday’s closing rate.

The Thai currency is expected to move between 32.60 and 32.80 during the day and between 32.50 and 33.00 during the week, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said the baht is likely to fluctuate and weaken, especially if the market is in a risk-off state. However, it will not weaken much if investors sell gold as its price continues to rise.

The support level for the Thai currency will be from 32.50 to 32.60 – a level importers are waiting for so they can purchase dollars. Meanwhile, the baht’s resistance level will be at 33 – a level eyed by exporters so they can offload their dollars, he said.

He added that the dollar might strengthen if the market is in a risk-off state and will be highly volatile if Russia attacks Ukraine. However, the dollar may strengthen due to demand for safe-haven assets. The currency may also be supported if the US Federal Reserve accelerates the tightening of its monetary policy.

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Published : February 14, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40012290

Thai Airways International (THAI) is planning to seek a new 25-billion-baht loan to pay off some of its debts ahead of the schedule set under the rehabilitation scheme.

Asource said THAI has been effective in cutting expenses as well as managing costs and has even been able to generate revenue despite the ongoing Covid-19 crisis.

“If THAI gets the 25-billion-baht loan, it will be able to complete its rehabilitation sooner,” the source said.

The airline has negotiated a longer repayment period and revolving credit line along with quarterly interest payment with five private financial institutions and 87 cooperatives who are owed 45 billion baht.

The new loan will be taken under the following conditions:

• The interest rate must not exceed the annual minimum loan rate (MLR).

• The loan period should be set at no less than six years with semi-annual debt repayments starting in the third year.

• Expenses related to the loan and other conditions should be based on a mutual agreement between THAI and the creditors.

• The loan granter will have the right to buy THAI stocks worth the loan amount at 2.55 baht per share from the par value of 10 baht per share.

For the loan, THAI is ready to offer the following assets as collateral:

• Land and THAI headquarters building on Vibhavadi-Rangsit Road in Bangkok.

• Land and buildings in Don Mueang

• Aircraft and related equipment

• All THAI-owned properties in Thailand and overseas

Piyasvasti Amranand, who is overseeing the administration of THAI’s rehabilitation, said the airline has enough assets to use as collateral, such as 42 aircraft and properties both here and overseas.

He said the airline has been holding discussions on rehabilitation operations and reporting to creditors every month, adding that the move to use assets as collateral will benefit all creditors.

He also said he expects THAI to receive the first instalment of the 25-billion-baht loan within March.

“These funds should be enough for the company’s rehabilitation as the aviation industry is recovering and THAI has been able to cut expenses and generate earnings,” he said.

Published : February 13, 2022

By : THE NATION

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https://www.nationthailand.com/business/40012287

Thailand’s car market has come under pressure after a package of measures to promote electric vehicle (EV) purchases stalled before reaching the Cabinet for approval.

Earlier, Energy Minister Supattanapong Punmeechaow, who also acts as EV board chairman, said the package was due to be submitted to Cabinet in January.

According to a source from the automobile industry, consideration of the EV promotion measures will be delayed until the middle of March.

The package includes a maximum 40 per cent cut on import duty for EVs costing up to 2 million baht (2022-2023), a cut in excise tax from 8 per cent to 2 per cent (2022-2025), and subsidies of 70,000 baht for vehicles up to 30kWh and 150,000 baht for cars with larger battery capacity (2022-2025).

To be eligible for the package, carmakers must produce at least as many EVs in Thailand as they import for sale by 2024.

Krisada Uttamote, president of the Electric Vehicle Association of Thailand, said the car market is currently under pressure as customers delay orders of cars while they wait for the government’s EV promotion package.

He called the package a good idea, saying it was required to boost low demand for EVs after sales of just 1,900 in 2021.

Pongsak Lertrudeewattanawong, vice president of MG Sales (Thailand), said customers in both the electric and internal combustion engine car markets are waiting for the government’s EV promotion package.

He added that even though EV sales are not high, the volume of EVs currently available could not meet demand from customers.

“We believe that this package will help stimulate the market, but confusion over the package details is affecting customers’ decisions to purchase new cars,” he said.

Car sales in all segments rose to 67,000 in January, up 21 per cent from the same period last year. However, sales increased from a low base due to the Covid-19 crisis last year.

Published : February 13, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40012265

The motor industry is asking the government for clear policies to spur electric-vehicle (EV) adoption in Thailand, including a subsidised trade-in scheme.

Suwat Supakandechakul, president of the Thai Automotive Industry Association, said that despite increased interest among local consumers, sale of EVs in Thailand has remained stagnant.

He blamed a lack of clear government policy regarding tax subsidies and other incentives to help drive growth in the EV market.

“Many automakers have said they are ready to increase their EV production in Thailand,” Suwat said.

He added that bringing down the EV price to make it more competitive against conventional vehicles would make electric cars more appealing to consumers.

Suwat also called on the government to revive its policy of trading in an old car for a new EV, which he said would help boost domestic demand.

Widespread use of environmentally friendly EVs would also help ease the problem of PM 2.5 pollution affecting many areas of the country, he said.

Acknowledging that availability of pure EVs remains limited, he suggested that the trade-in arrangement should also apply to new vehicles like hybrid electrics and plug-in hybrids.

“They are certainly better than conventional cars in terms of PM 2.5,” he said.

Published : February 12, 2022

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https://www.nationthailand.com/business/40012214

In a bid to make the most of improving bilateral ties, the Thai National Shippers’ Council (TNSC) is planning to devise an action plan to penetrate the Saudi Arabia market.

“The key points in the action plan are ensuring that Saudi Arabia grants visas to Thai nationals and agrees to reduce the visa application fee, which is currently 20,000 baht per person,” TNSC chairman Chaichan Charoensuk said on Thursday. “Other proposals include adjusting conditions to ensure more companies have access to Thai government subsidies and having Thai businesses added to key trade exhibitions in Saudi Arabia well ahead of time to ensure we do not miss any major events.

“On March 3, the TNSC will also hold a seminar for Thai businesses that are interested in exporting to Saudi Arabia,” Chaichan added. “After the seminar, TNSC will send trade representatives to three major Saudi cities namely Riyadh, Jeddah and Dammam to attend trade fairs and meet with Saudi businesspeople/importers to discuss trade deals with Thai businesses.”

TNSC is confident the action plan will help expand exports to Saudi Arabia from $1.63 billion currently to $2 billion or 66 billion baht this year.

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Published : February 11, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40012213

The Finance Ministry will at the Tuesday Cabinet meeting propose the option of reducing excise tax for diesel to less than 3 baht per litre, a source was quoted as saying by Thansettakij.

The source said a new draft decree on the Revenue Code is being prepared in response to the continued rise of crude oil prices.

Prime Minister Prayut Chan-o-cha has reportedly called on Energy Minister Supattanapong Punmeechaow, Finance Minister Arkhom Termpittayapaisith and related organisations to find ways of resolving the oil-price situation.

The first step will be to use the mechanics of the Oil Fund and excise tax on diesel to solve the issue.

Meanwhile, the Office of the Auditor-General and related agencies are still considering the Oil Fund’s plans to take loans.

The source added that the authorities have not decided to lower the tax on benzene fuel but will come up with specific measures like reducing public transport fares via state welfare cards.

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Published : February 11, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40012208

The baht opened at 32.76 to the US dollar on Friday, weakening from Thursday’s close of 32.63.

The Thai currency is likely to move between 32.65 and 32.85 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He said the baht weakened less than expected as foreign investors bought Thai stocks and short-term bonds worth more than 33 billion baht.

The dollar, however, strengthened after US inflation figures were higher than expected, sparking speculation that the Federal Reserve will increase the interest rate to a level higher than investors expect.

Poon said these factors will slow down the strengthening of the baht in the short term.

He said foreign speculators should buy Thai assets so the baht does not weaken much.

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Poon believes importers are waiting to buy the dollar at 32.60, while exporters will sell the currency if it hits between 32.80 and 33.

The currency market has been volatile after the US inflation rate climbed to 7.5 per cent, which is more than the market expected and the highest since 1982.

Published : February 11, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40012204

The Stock Exchange of Thailand (SET) Index is expected to move between 1,690 and 1,695 points on Friday amid worries about inflation in the US since its Consumer Price Index (CPI) in January rose by 7.5 per cent year on year, Krungsri Securities said.

It said the CPI rise in January caused the US 10-year bond yield to jump over 2 per cent and would trigger the Federal Reserve to raise the interest rate to tackle inflation.

“However, mass buy-ups of company shares that are expected to grow based on their business turnover last year and the Centre for Covid-19 Situation Administration [CCSA]’s move to ease disease prevention measures today would help boost the index,” Krungsri Securities said.

It recommends the purchase of the following:

• BBL, KBANK, KTB, BLA and THREL will benefit from news of the US interest rate hike.

• PSL and TTA will benefit from the rising freight rate.

• AOT, MINT, CENTEL, ERW, AAV, HMPRO, CPALL, CPN and CRC will benefit from CCSA’s move to ease Covid-19 prevention measures.

• IVL, TOP, SPRC, GULF, BANPU, TU, CPF, SPALI, ORI, WHA, AMATA, HMPRO, CPN, CRC, BLA, NER, ITEL, XO, ASK, UBE, FORTH, TH and SNNP are expected to grow based on their business turnover last year.

The SET Index closed at 1,703 on Thursday, down 0.16 points or 0.01 per cent. Transactions totalled 112.33 billion baht with an index high of 1,707.44 and a low of 1,696.73.

Published : February 11, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/blogs/business/40012196

Suphan Mongkolsuthi, chairman of the Federation of Thai Industries (FTI), expressed concern about the case that transport operators will start to increase delivery costs by 15-20 per cent, seeing that it will affect overall cost production for sure since it shared approximately 10 per cent of the product cost.

As long as there is a demand to buy, it can continue to produce products. But if consumers can’t buy it, the effect will return to the manufacturer and transport operators in long term. 

The products that will be most affected are the consumer goods that are necessary for daily life.

SMEs will be more affected by freight hikes than large firms, which have contracts for one to three months, based on individual market oil prices. But SME operators cannot make contracts with transport companies or can do it for only a short time, so they have to bear the burden in this part if there is an increase in the actual transportation cost.

Governments have to study the structure of transport prices and find solutions, such as reducing taxes or adding subsidies. Also, the government has to stimulate the economy so that everyone can earn money as quickly as possible so that they can spend money on higher product prices, said Suphan.

It is therefore important to open up the country and normalize economic activities.

The Index of Industrial Confidence in January 2022 was at 88.0, an increase from 86.8 in December 2021. The Index rose for the fifth straight month and returned to a level close to before the Covid crisis in early 2020.

Published : February 10, 2022

By : THE NATION