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https://www.nationthailand.com/blogs/business/40011053

The Consumer Confidence Index in December rose to 46.2, up from 44.9 in November, the University of the Thai Chamber of Commerce president, Thanawat Phonwichai, reported on Thursday.

This was the fourth consecutive month of improvement and the highest level in nine months since April 2021, as consumers tended to worry less about the Covid-19 situation in Thailand, he said.

However, the number of daily infections is likely to increase due to the Omicron strain after the New Year holidays, but the daily death toll in the country has begun to decline, Thanawat said.

The agency will monitor how the number of coronavirus cases in the first quarter of 2022 will affect consumer confidence and economic recovery, he said.

The Overall Economic Confidence Index was 40.1, the Confidence Index for Job Opportunities 42.7 and the Confidence Index on Future Income 55.7, he said.

There were positive factors that affected the confidence index, such as a Cabinet meeting which approved seven economic stimulus measures, the Monetary Policy Committee’s (MPC) move to keep the policy rate at 0.50 per cent, the MPC revising its GDP 2021 forecast to 0.9 from 0.7 per cent previously, and expecting GDP in 2022 and 2023 to expand.

Other positive factors were the global Covid-19 situation, which improved due to vaccinations while the number of cases in Thailand declined, November 2021 exports expanding 24.7 per cent and the price of many agricultural crops improving.

The negative factors included new concerns over the pandemic, including the novel Omicron variant which caused the Test & Go scheme to be suspended, consumer worries over a slowing economy, a higher cost of living, rising domestic oil prices and political instability.

The Thai Chamber of Commerce estimates that in 2022 the economy will grow around 4 per cent, with 2.5-3 per cent growth in the first half and 5-5.5 per cent in the second half.

Full-year inflation is expected to be 1.5 per cent, with 2-2.5 per cent in the first half and 1-1.5 per cent in the second half.

Published : January 13, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011036

The Thai Chamber of Commerce held an online seminar on Wednesday to enlighten Thai businesses and entrepreneurs about investing in China this year in the current Covid-19 situation.

The seminar discussed the Chinese economy, investment and expected trade between the Asian giant and Thailand in 2022.

Chairman Soopakij Chearavanont said Covid-19 has not stopped the Chinese economy from growing. All the virus has done is to pose a challenge.

Thai Ambassador to China Atthayut Srisamut said Chinese customer demands have changed due to the coronavirus. They need better and healthier products, he said, adding that the percentage of trade between Thailand and China increased by 3-4 per cent, while trade with other countries also saw an increase.

Chinese Ambassador to Thailand Han Zhiqiang noted that trade between Thailand and China has been on the increase for eight years, with the first ten months of 2021 alone seeing trade worth US$100 billion (Bt3.32 trillion).

The founder of Namu Life (Beijing) Trading and Thira Venture Boonchai Limatibul said the products that Thailand exports to China must be unique because Chinese people cannot travel to other countries right now. The Chinese, he added, can produce ordinary products themselves at low cost, so Thai products cannot compete against them.

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Dok Bua Ku director Kamthon Leelertphan said China’s lower class is seeing increasing revenue and consuming products like people in the city. However, they might not like these products so Thai businesses must create a variety of special items to attract these people.

Trends develop quickly in China, while the government there is also easing a lot of restrictions. So Thai business operators must adapt and follow the trends, he said.

Kudun and Partners lawyer Mayuree Sapsuttiporn said Chinese laws are easing and the investment process has been reduced so Thai businesses can benefit from this. Meanwhile, Thai law also grants privileges for Chinese investors, which includes allowing them to purchase real estate at prices lower than the market.

Published : January 13, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011032

The baht opened at 33.26 to the US dollar on Thursday, strengthening from Wednesday’s closing rate of 33.37.

The Thai currency is likely to move between 33.20 and 33.40 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said that the baht might strengthen slightly. He said the baht was supported by the dollar and the gold-selling but the Omicron situation pressured the baht. Foreign investors must heavily invest in the baht for it to strengthen past level 33 to the dollar.

He said that foreign investors were buying short term bonds less in the past two days as they speculated the baht might not strengthen or they are waiting for the baht to weaken.

Poon said that the baht might not strengthen much because importers might buy the dollar when the baht reaches between 33.10 to 33.20 to the dollar.

He added that investors are in a risk-on state after the US inflation rate jumped up to 7 per cent which support the US Federal Reserve to increase the interest rate.

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Published : January 13, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011031

Finance Minister Arkhom Termpittayapaisith made it clear on Wednesday that the government will proceed with the plan to impose capital gains taxes on profits from crypto and share trading despite opposition from many parties.

“The collection of crypto and share trading taxes will help maintain fairness in the taxation system and expand Thailand’s tax collection base to bring in capital required for the country’s development,” he argued.

“Our tax collection base has remained the same for a long time despite a growing economy. This is because we have several tax exemptions designed to help certain sectors. Once those sectors are able to get back on their feet, it will be time to reduce the exemptions.”

Arkhom said Thailand had issued a tax on cryptocurrency in 2018 but this had received an exemption due to being a new sector, while the financial transaction tax collected from profits earned by share trading had also been exempted by the Revenue Department for 30 years in a bid to reduce the cost of share trading and promote investment.

“The government has no plan to control the growth of digital currency as many have feared,” Arkhom assured. “The Revenue Department is working with the Thai Digital Asset Association in setting criteria for calculating taxes on crypto trading profits and expect clear regulations to be finalised by this month.”

As for the share trading tax, the Revenue Department is considering one of two calculation methods: per time trading or capital gains. The latter could affect bigger investors who go in for high trading volumes.

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Published : January 13, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011029

Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Thursday (January 13) would rise to between 1,685-1,690 points before falling.

It said the index still gained positive sentiment from rising oil prices of above US$82 per barrel, as well as foreign fund inflow on hopes over Thailand economic recovery.

“However, investors should beware of shares mass sell-offs amid uncertainty over the US Federal Reserve’s move to raise the interest rate after Washington’s Consumer Price Index in December has risen by 7 per cent year on year,” Krungsri Securities said.

It also recommended buying of the following companies’ shares as an investment strategy:

• PTTEP, TOP, PTTGC, IVL and SPRC, which benefit from rising oil price and gross refining margin.
• BBL, TTB, KBANK and BLA, which benefit from news of interest rate hike.
• RCL, LEO, III, WICE, SONIC and JWD, which benefit from rising freight rate.

The SET Index closed at 1,678.50 on Wednesday, up 11.38 points or 0.68 per cent. Transactions were totalled 87.94 billion baht with an index high of 1,680.85 and a low of 1,673.00.

Published : January 13, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011003

Kla Party leader Korn Chatikavanij urged the Revenue Department on Wednesday to delay taxing cryptocurrency trading until it has listened to opinions from experts.

Korn, a former finance minister, said the department should allow stakeholders to propose ideas and it should take more time to study the best way to collect taxes on cryptocurrency before it issues new regulations.

The department last week announced its plan to collect 15 per cent withholding taxes on transactions involving cryptocurrencies. The department said the loss from previous and future trading could not be cited for tax deduction. Profit from the trades throughout the year would also be added as income for paying yearly income tax, the department said.

Revenue Department director-general Ekniti Nitithanprapas said on Monday that his agency was discussing cryptocurrency tax guidelines with the Bank of Thailand, the Securities and Exchange Commission and other bodies and it was likely to issue tax rules on the crypto trade by the end of this month.

Korn said the department should also study taxing methods of other countries before making a final decision.

Apart from the capital gains tax (CGT), Korn said, traders and crypto exchange operators would also ask the department to clarify its plan to collect VAT when cryptocurrencies are used to buy goods.

Korn said the department should go in for VAT exemption when vendors accept cryptocurrencies for their goods or services because there will be double VAT charges – on goods or services as well as on the exchange of crypto into baht.

Korn cited three main issues for the department to study:

1) VAT and Goods and Services Tax: He said Singapore, Australia and some EU nations exempt VAT on the use of cryptocurrencies to buy goods and services.

2) Capital Gains Tax: Korn said several Asian countries, including Singapore, Malaysia and Hong Kong, do not collect CGT from cryptocurrency trading. He said these countries allow traders to calculate their profits or losses before paying annual personal income taxes.

3) Tax exemption: Korn noted that South Korea initially planned to collect 20 per cent tax on trading of cryptocurrencies with exemption for the first 2.5 million won earned. The rule was delayed to 2023 following strong opposition. Korn said the Revenue Department should also consider an amount that would be exempted from tax, such as the first Bt100,000 earned from trading in cryptocurrency.

“I don’t agree with the plan to collect this tax until the Revenue Department can clear all the doubts as mentioned,” Korn argued.

“It must also make clear how it will manage a fair tax collection from all people involved,” he added.

Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40011001

Thai President Foods has informed the Commerce Ministry that it will not increase the price of its popular instant noodles under the “Mama” brand despite an increase in manufacturing costs.

“The manufacturer has insisted that the price of Mama instant noodles in bag form will remain the same as the company is committed to helping alleviate people’s financial burden,” Manlika Boonmeetrakul-Mahasuk, adviser to the Commerce minister, said on Wednesday.

“The company said it would employ a cost management strategy to deal with the increasing costs of wheat flour and palm oil, the two key ingredients in instant noodles.”

Apart from the highly popular Mama instant noodles, which retail starting at 5-6 baht per bag, Thai President Foods also manufactures instant rice porridge and a variety of biscuits.

Commerce Minister Jurin Laksanawisit has urged manufacturers of necessary consumer goods to fix prices as long as they can so people are not burdened further at a time when prices of several farm products are skyrocketing, Manlika added.

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Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40010992

The Bank of Thailand (BOT) is preparing for four types of economic and financial risks that could occur in 2022 as the economy is still recovering from the impact of Covd-19, leaving many sectors vulnerable.

Speaking at BOT’s Meet the Press event on Tuesday, central bank governor Setthaput Suthiwart-Narueput said that this year economic recovery is seen to be in a K shape, where only certain sectors, industries or areas of the economy recover while others persistently lag behind.

“The Thai economy should bounce back to before Covid levels not sooner than the first quarter of 2023,” he predicted. “This is because our economy relies heavily on exports and tourism, while employment in related sectors will not bounce back anytime soon,” he believed.

“This year we are prepared for four challenges that can potentially occur – namely the Omicron outbreak, inflation, an NPL cliff, and an increase in policy rates by global central banks,” Setthaput said.

“As for the first risk, the Omicron outbreak, BOT estimates the new variant’s spread would stop within the first half of the year,” he said. “Although Omicron can spread faster than the Delta variant, it will not cause the economy to ‘halt’ for a long time. The banking system will continue to roll out more loans while the central bank will issue financial measures to make sure different sectors can maintain solvency during the outbreak,” he said.

“BOT estimates that Thai inflation in 2022 will be in an acceptable range of 1.4 to 1.7 per cent, but it could rise next year, though it won’t reach 2.0 per cent,” Setthaput said.

“Our latest survey found that the hike in product and service prices has yet to be distributed across all sectors, which means there is a small chance that inflation will cause the overall economic recovery to stumble. The central bank will however use appropriate measures to prevent inflation from growing more than the estimation,” he said.

The central bank also estimated that next year there is a small chance of an NPL cliff, or a situation where a lot of debt defaults occur in a very short time, forming a cliff of non-performing loans, or NPLs.

“As the economy still faces many uncertainties, the number of NPLs will gradually rise, but will probably not form an NPL cliff this year,” Setthaput hoped.

“To prevent an unexpected rise in NPLs, BOT will promote joint ventures between banks and asset management companies so they can help borrowers who fall behind, while making sure commercial banks have enough reserves to cover increasing defaults,” he said.

“The last risk that we might face in 2022 is a hike in policy rates by global central banks, especially the Untied States [Federal Reserve]. Such a hike would affect the economic recovery of many developing countries. However, we estimate that the effect on Thailand, should there be any, will be minimal as we still have a strong international financial status and do not suffer from structural vulnerability as during the 1997 financial crisis.”

Before closing the event, Setthaput said BOT would issue Thailand’s Financial Landscape Consultation Paper on February 2, which will include new issues such as digital assets and a green economy.

After issuing the paper, BOT will accept opinions from different groups and industries for a month before using them to draft out the country’s financial policy.

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Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40010990

As if a rise in pork and egg prices is not enough, the public are set to feel further pain as liquefied petroleum gas (LPG) prices and Khlong Saen Saep boat services fares are also expected to rise soon.

The Energy Ministry said on Tuesday that moves to consider increasing the LPG price was troublesome as the cost of living is rising, what with pork and eggs becoming more expensive.

It said the Energy Policy and Planning Office had initially come out with guidelines to raise the LPG price three times until the latter part of this year: from 318 baht per 15-kilogram tank to 333 baht, then 348 baht and subsequently 363 baht.

“It is up to the Energy Policy Administration Committee, which consists of Energy, Finance, Transport, Commerce and Industry ministries and the National Economic and Social Development Council to ensure that the decision will cause as less of an impact as possible on the public,” the Energy Ministry said.

The Energy Policy Administration Committee recently decided to maintain the LPG price at 318 baht per 15-kilogram tank until March 31 from the previous January 31.

The committee also asked PTT to consider reducing the LPG price for state welfare cardholders until March 31.

Meanwhile, Deputy Transport Minister Atirat Ratanasate said Krobkrua Khonsong’s move to raise its Khlong Saen Saep boat fares starting with 9 baht in 2020 was in line with the Marine Department’s announcement as the company had suffered heavy losses during the Covid-19 crisis.

“After Krobkrua Khonsong kept its boat service fares stable for 636 days, the company said on January 7 that it would raise fares by 1 baht from January 14,” Atirat added.

Published : January 12, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40010984

The baht hit its lowest point in almost a week, opening at 33.30 to the US dollar, down from Tuesday’s closing rate of 33.41.

The Thai currency is likely to move between 33.20 and 33.40 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said that the baht might strengthen slightly. He said the baht was supported by the dollar and the gold-selling but the Omicron situation pressured the baht. Foreign investors must heavily invest in the baht for it to strengthen past level 33 to the dollar.

The currency market is in a risk-on state after the US Federal Reserve’s chairman statement to Senate Banking Committee was the same as the market expected. 

The Fed’s chair said the Fed will increase the policy interest rate more than expected to control inflation while the Fed will be able to reduce the balance sheet fasten from the past.
 

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