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https://www.nationthailand.com/business/40011481

Thai-Chinese communities will still hold traditional Chinese New Year practices despite the new normal and rising prices, a recent survey conducted by the Kasikorn Research Centre shows.

However, people will be more careful with their money and may reduce the amount they put in the customary “ang pao” or red envelopes.

The centre expects Chinese communities in Bangkok to spend 11.79 billion baht during festivities this year – a conservative estimate based on the amount spent last year.

Rising costs and concerns over Omicron cases are the main reasons affecting the purchasing power of Bangkok residents.

According to the survey, 71 per cent of Bangkokians believe rising prices will affect the amount they spend on offerings, especially food offerings. Spending, however, is expected to remain high as the government is trying to maintain the price of some products and offering shopping subsidies.

However, the surge in demand may push the prices up, especially the price of meat, which is expected to rise by 15 to 30 per cent, and fruits and vegetables that may rise by 5 to 10 per cent compared to last year.

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Though the Lunar New Year celebrations will continue unabated in Bangkok, there may be some changes. The survey shows that ethnic Chinese communities in Bangkok will spend as much as they did last year or adjust their spending as follows:

• Offerings: Making offerings during Chinese New Year is traditional and cannot be avoided. However, people earning less than 45,000 baht per month are expected to reduce their spending, while those earning more may up their spending. The centre expects 6 billion baht to be spent on offerings, up 7.1 per cent from last year.
• Making merit, travelling or dining outside: People are expected to spend more on making merit and travelling despite rising fuel prices. This is because the Covid-19 situation is improving and prevention measures are being eased. However, they are expected to spend carefully. The centre estimates spending on these activities will rise by 2.8 per cent to 3.05 billion baht this year.
• Ang Pao or red envelopes: The amount put in the red envelopes will drop 14.8 per cent to 2.74 billion baht as the Covid-19 crisis continues affecting people’s purchasing power.

Meanwhile, the centre has advised the business sector to come up with new promotions, like online sales or free delivery, to boost spending.

It said that normally Chinese New Year offerings are bought separately from different shops. However, if these very same products are offered in one platform online, they will be bought together due to speed and convenience – factors treasured by the younger generation.

The centre also advised stores to start providing customers with a tax invoice so they can get tax redemptions under the “Shop Dee Mee Kuen” subsidy scheme.

The centre pointed out that with consumer behaviour changing under the new normal, it is time that stores and retailers began adjusting their marketing strategy to survive.

Published : January 25, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011480

The Finance Ministry confirmed on Monday that it will not cut fuel tax, pointing out that this would be the government’s last measure in maintaining fuel prices.

Earlier, the Energy Policy and Planning Office had proposed that the fuel tax be cut to reduce pressure on the Oil Fund.

Finance Minister Arkhom Termpittayapaisith said the ministry will monitor the global price of oil, especially the Dubai price, to see if it rises to a point where it is unbearable.

“The government cut fuel tax when the global prices hit US$100 per barrel,” he said.

He expects the price of oil to drop after winter as the US will start using up its oil stocks once the price of oil rises.

He added that Middle East countries were planning to boost the production of oil last week, but failed to do so due to technical issues.

“The government will use the Oil Fund’s mechanisms to maintain the price of fuel in the country,” he said.

He also confirmed that the Oil Fund has plenty of liquidity as it has 10 billion baht in circulation and the government has loaned it another 20 billion baht to maintain fuel prices.

Arkhom added that the National EV Policy Committee is currently considering measures like cutting EV import and excise tax to promote the use of electric vehicles in the country.

“However, the benefits will come with conditions, such as EV manufacturers must set up production facilities in Thailand,” he said. “Meanwhile, the government will take care of automakers in the country during the transition as well.”

Arkhom also confirmed that the ministry will continue collecting tax from cryptocurrency transactions.

“The Revenue Department must clarify details on taxing cryptocurrency transactions as the trading volume was high last year,” he said.

“The department is planning to collect tax from stock trading as well.”

Published : January 25, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011478

The Stock Exchange of Thailand (SET) Index is expected to fall to the support level of 1,630 points on Tuesday due to tension between the US and Russia over Ukraine, Krungsri Securities said.

It added that investors will possibly delay their investment as they await the US Federal Reserve’s decision on the direction the economy, inflation and the interest rate will take. The Fed Reserve is set to meet on Tuesday and Wednesday.

However, mass buy-ups of company shares whose business turnover is expected to grow and those that have gained positive sentiment will help shore up the index, Krungsri Securities said.

It recommends the purchase of the following as an investment strategy:

• AOT, MINT, CENTEL, ERW and AAV will benefit from the government’s move to relaunch the Test & Go scheme and the fourth phase of the “Rao Tiew Duay Kan” (We Travel Together) travel subsidy.

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

• EA, GPSC, AMATA, WHA, AH and STANLY will benefit from the government’s electric vehicle promotion policy.

The SET Index closed at 1,640.54 on Monday, down 12.19 points or 0.74 per cent. Transactions totalled 76.90 billion baht with an index high of 1,654.99 and a low of 1,639.14.

Published : January 25, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011475

The baht opened at 33 to the US dollar on Tuesday, weakening from Monday’s closing of 32.975. The Thai currency is likely to move between 32.90 and 33.10 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He said that the baht is likely to swing sideways despite being supported by the easing of measures and the reopening of the country under the “Test and Go” scheme.

Poon added that though the baht was supported by the sale of gold, the market is in a risk-off state so it caused the dollar to strengthen while investors may sell more Thai stocks.

The key support level for the Thai currency will be between 32.80 and 32.90 – a level that importers are waiting for so they can purchase dollars. Meanwhile, the baht’s key resistance level will be from 33.10 to 33.20 – a level eyed by exporters so they can offload their dollars, he added.

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Published : January 25, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/blogs/business/40011461

The Cabinet has approved the implementation of measures costing 44 billion baht to maintain domestic consumption in 2022, Finance Minister Arkhom Termpittayapaisith revealed on Monday.

The money would be spent on three projects — State welfare card, special budget for those seeking urgent help, and Khon La Khrueng (Let’s Go Halves).

Arkham said these three projects would help maintain purchasing power by adding 79 billion baht to the economy in 2022, boosting 2022 gross domestic product by 0.21 per cent.

He explained that the Khon La Khrueng co-payment subsidy scheme was cut back in phase 4 to 1,200 baht per person due to data from the third phase. He said 1.6 million people had been granted rights but they had not been making full use of it, while those who had availed of the subsidy scheme were found to be spending on average 158 baht per person per day. As a result, a credit limit of more than 11 billion baht was returned to the state at the end of the phase.

Under phase 3 of Khon La Khrueng, the government paid for half of food, drinks and purchases of general goods up to 300 baht per person per day, capped at 3,000 baht per person.

It has been found that the economic indices have begun to recover sequentially, Arkham said, adding, people were starting to come out to buy more products. Businesses have resumed and workers have been called back to work. Therefore, in phase four, the limit has been reduced to 1,200 baht per person per month, valid for three months.

“The reduction in the provision for the project was not due to a lack of government funds,” he clarified, adding, when the economy starts to recover it has to reduce the use of top-up measures.

“Now, there’s still about 100 billion dollars left in the Loan Act, which is enough to take care of the economy. But we have to save because there are other projects that are pending approval and we have to reserve money for other cases as well,” he said.

Published : January 24, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/blogs/business/40011463

Consumers are fretting about bottled palm oil being sold at prices higher than the 55 baht per bottle set by the Department of Internal Trade.

Aone-litre bottle of palm oil sells at 59 baht in supermarkets of department stores. Some brands are in short supply, as a result some stores are allowing a person to buy no more than six bottles.

Meanwhile, the retail market and local shop price is in the range of 62-67 baht.

The price spike is mainly due to the rising price of crude palm oil, which is the main cost of producing bottled palm oil. Currently, it sells at 56-57 baht per kilogram, which is 12-13 baht per kg more expensive than the world market price, even though Thailand is a major grower of oil palm fruit.

In comparison, palm oil sells in Malaysia at only 5,425 ringgit per ton, or 43-44 baht per kg.

Crude palm fruit last week moved up to 11.70 baht per kg.

The latest oil palm price on Monday hit 12 baht per kilogram, an unprecedented high. At the same time, prices of chemical fertilizers and pesticides, as well as the prices of consumer goods, have also gradually increased.

Palm oil price is expected to shoot up further until next month. If the cost of crude palm oil remains at 56-57 baht, the price of bottled palm oil will be more than 70 baht per litre.

Though they are happy about the 12 baht per kg palm price, the farmers are seeking a price guarantee in the long term at 5-7 baht per kilogram to balance the price of fertilizers, pesticides and various tonics used for palm oil.

Commerce Minister Jurin Laksanawisit has asked the Department of Internal Trade to call palm oil operators and discuss solutions, as the authorities are afraid if the price is fixed for too long, manufacturers may halt production until the palm oil market faces a supply shortage, eventually pushing up the prices.

Published : January 24, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/blogs/business/40011460

Exports of finished cars rose 2.51 per cent in December from November, hitting a nine-month high of 101,307 units, the Federation of Thai Industries (FTI) said on Monday.

Figures broke through the 100,000 level after a 47.93-per-cent rise in exports from December 20 thanks to increased supply of semiconductors and auto-parts.

Thai auto exports increased to all markets – up 101 per cent to Australia and Oceania, 64.96 per cent to Europe, 54.99 per cent to North America, and 121.87 per cent to Central and South America – driven by the global economic recovery.

Thai auto-parts exports also grew, in response to increasing demand from trading partners.

Finished car exports in 2021 (January-December) rose 30.35 per cent from 2020 to 959,194 units – rising in value 36.56 per cent to 561.15 billion baht.

This year, the FTI is targeting production of 1.8 million cars, an increase of 6.78 per cent from 2021. Of these, 1 million units will be for export and 800,000 units for domestic sale.

Published : January 24, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/blogs/business/40011459

Thailand remains the 13th largest food exporter in the world, unchanged from the previous year, the Chamber of Commerce of Thailand said yesterday.

Poj Aramwattananon, vice chairman of the chamber, said that measures to ease the lockdown of trading partner countries had helped the economy recover. The depreciation of the baht also have made Thai food products more competitive in price.

It is expected that in 2022, the Thai food export sector will still have to overcome the inflationary barrier, whether from agricultural product prices, energy prices, or transportation costs, leading to a decline in consumer purchasing power, while the cost of goods would increase.

Visit Limlurcha, President of Thai Food Processors Association, said that Thai food exports in 2021 were valued at 1.107 trillion baht, an increase of 11.8 per cent over the previous year.

Thailand’s global market share, however, dropped to 2.30 per cent from 2.32 per centt in 2020. 
Most of Thailand’s food export markets in 2021 expanded, except the United States, Africa, Oceania and the United Kingdom.

Currently China is Thailand’s No. 1 food export market, making up 24.5 per cent of food exports, valued at 271.674 billion baht, an increase of 50 per cent from the previous year, mainly from fresh fruit and cassava starch exports, followed by Cambodia, Laos, Myanmar and Vietnam in the region, and Japan.

Thai food exports in 2022 are expected to be worth 1.2 trillion baht, an increase of 8.4 per cent, which will be a new record.

Published : January 24, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011429

The baht opened at 32.98 to the US dollar on Monday, unchanged from the previous closing.

The Thai currency is likely to move between 32.85 and 33.05 during the day and between 32.80 and 33.20 during the week, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said the baht is likely to swing sideways as it might fluctuate against the dollar before the US Federal Reserve meets on Tuesday.

He said investors will also speculate on the Omicron situation in the country, while the easing of measures by the government will affect short-term foreign investments.

Poon also said the baht will strengthen from the sale of gold if the price of the precious metal stays at between 1,830 and 1,840 dollars per ounce.

The key support level for the Thai currency would be at 32.80 – a level that importers are waiting for so they can purchase dollars. Meanwhile, the baht’s key resistance level would be at 33.20 – a level eyed by exporters so they can offload their dollars, he added.

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Poon said the dollar may strengthen before the Fed’s meeting if the market is highly volatile, which will encourage investors to hold on to their dollars instead of safe-haven assets.

However, he said the dollar might weaken if the Federal Reserve does not send a clear signal about raising the policy rate to beyond the market’s expectations or decrease the balance sheet fast.

Published : January 24, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011428

The Stock Exchange of Thailand (SET) Index is expected to hover between 1,640 and 1,645 points on Monday, Krungsri Securities said.

It forecasts that the index will be under pressure from the mass sell-offs expected once the US Federal Reserve meets on January 25-26 to decide whether it will raise interest rates to tackle inflation.

However, mass buy-ups of company shares whose business turnover is expected to grow and those that have gained positive sentiment will help bolster the index, Krungsri Securities said.

It recommends the following purchases as an investment strategy:

• AOT, MINT, CENTEL, ERW and AAV will benefit from the government’s move to relaunch the Test & Go scheme from February 1 and the fourth phase of the “Rao Tiew Duay Kan” (We Travel Together) travel subsidy this week.

• PTTEP, TOP, PTTGC, IVL and SPRC will benefit from the rising price of oil and gross refining margin.

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

The SET Index closed at 1,652.73 on Friday, down 4.23 points or 0.26 per cent. Transactions totalled 81.33 billion baht with an index high of 1,655.42 and a low of 1,641.86.

Published : January 24, 2022

By : THE NATION