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https://www.nationthailand.com/business/econ/40019577

Commerce Minister Jurin Laksanawisit met with Yousef Abdullah Al-Benyan, CEO of Saudi Basic Industries Corporation (SABIC), on Tuesday in a move to import 100,000 more tonnes of much-needed fertiliser.

Jurin said SABIC is one of the top fertiliser companies in the world, trading with more than 50 countries and now Thailand since Thai-Saudi relations were restored.

He said SABIC has been in operation for almost 50 years in the fields of petroleum, fertiliser, chemicals, and medical equipment.

Jurin mentioned that the Saudi government wants to facilitate negotiations so Thailand could import more fertiliser from the Middle East country.

The minister pointed out that the price of fertiliser in the world market is high, while Thailand has been forced to import almost 100 per cent of its needs.

Moreover, shipping costs have also increased due to rising fuel prices, which is keeping prices in the domestic market high.

Jurin said he must solve two problems – price and quantity – as farmers need to have enough fertiliser.

The Internal Trade Department will come up with a new price structure, which would be in line with actual import costs, he said, adding that it would be fair to farmers as they are users and importers.

Jurin said he approved a contract to import 323,000 tonnes of fertiliser from Saudi Arabia in July and he had negotiated for another 102,000 tonnes.

He expected imports to solve the quantity problem, but the price would still be according to market mechanisms. So his ministry is teaming up with the Agriculture and Cooperatives Ministry to find sources of fertiliser at special prices to help farmers. He admitted this was not easy, but he would try his best.

Jurin said both ministries had previously joined hands with the Thai Fertiliser Producers & Trade Association to reduce the price of 4.5 million sacks of fertiliser by 20 to 50 baht per sack.

Moreover, he is also considering a measure to subsidise fertiliser prices for farmers but is awaiting a response from associations related to the country’s finances.

Jurin said it would be quicker to import fertiliser from Saudi Arabia as the government had allowed imports from another Saudi firm called Ma’aden.

According to the International Trade Promotion Department, Saudi Arabia is the sixth top fertiliser exporter in the world. The country exports fertiliser mostly to India, Bangladesh, Brazil, the US, Australia, and now Thailand, respectively.

The top three exported fertilisers by Saudi Arabia are NPK, nitrogen and potassium.

Published : August 31, 2022

By : THE NATION

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https://www.nationthailand.com/business/econ/40019554

The baht opened at 36.46 to the US dollar on Wednesday, weakening from Tuesday’s close of 36.38.

The currency is expected to move between 36.30 and 36.55 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He said the baht is likely to fluctuate across a wide range and could weaken as the dollar is strengthening.

Poon however speculated that the baht would not weaken past its key resistance level of 36.50 as exporters are waiting to offload the dollar at that level.

Moreover, foreign investors do not appear to be in a hurry to sell their Thai assets and Poon believes they will in fact purchase more Thai stocks as prices head down while investors are wary of taking risks in the US and European stock markets.

However, he noted the baht could be volatile today, Wednesday, especially as China announces various economic results.

If the Chinese economic data is much worse than expected, it might pressure Emerging Asia assets or cause currencies to weaken, he said.

Meanwhile, the baht might fluctuate as the dollar and euro might come under pressure if investors are certain the European Central Bank would decide to increase the interest rate, Poon pointed out.

The strategist advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.

Published : August 31, 2022

By : THE NATION

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https://www.nationthailand.com/business/econ/40019545

Thai investors could pick up more equities and bonds, as the two asset classes are available at attractive prices amid global clues of peak inflation and recession, said Eastspring Investments, a leading Asia-based asset manager.

Speaking at a seminar titled “Investment Outlook: Different World, Different Playbook” on Tuesday, the chief investment officer of Eastspring Asset Management (Thailand), Yingyong Chiravutthi, said that economic and investment outlooks are related but not on the same page.

It means that even though the situation of the current global economy appears quite dim, there is always some path to profit from the market, said Yingyong.

He said that equities and bonds are beginning to trade at attractive prices. During this time, investors are advised to diversify and invest more in equities, whether in the US, China, Vietnam or Thailand, as opposed to bonds.

“Regarding equities, we retain a positive view of US shares, particularly growth stocks. We believe that peaking inflation and interest rates present opportunities to buy longer-duration bonds. After the interest rates were raised 2-3 times, the market has started to recover and generate good returns,” said Yingyong.

He added that when inflation and interest rates start to decrease, growth stocks tend to perform better.

In Chinese equities, the company believes that investors will continue to benefit from low-interest rates and the Chinese government’s supportive measures.

Still, concerns may loom over China’s real estate debt over the next 3-6 months.

“Vietnamese equities are suitable for long-term investment while we are quite positive on Thai equities, especially low-volatility and high-dividend stocks, since they will be less affected by the global economic slowdown as well as global political issues,” Yingyong noted.

Niwet Hemavachirawarakorn, a leading investment expert in Thailand who spoke at the seminar, concurs with the advice to invest in Vietnamese equities. He described Vietnam as one of the most promising markets for long-term investment due to the fast-growing economy, low-cost skilled labour, and high consumption market.

Eastspring Investments chief investment officer Bill Maldonado noted that inflation had started to decline, a little accomplishment for the US Federal Reserve which jacked up interest rates to curb high inflation.

In this scenario, Maldonado suggested that investors consider low volatility, value and dividend-paying stocks, while the peaking inflation presents opportunities to buy longer-duration bonds.
 

Regarding Chinese equities, he predicted more aggressive fiscal and monetary policies in the second half of 2022, which will benefit China’s A-share market.

As for the overall Asian economic outlook, Maldonado said that consumption is likely to continue to shift from goods to services as Covid restrictions are eased.

He pointed out that Asean economies should benefit from the reopening boost which is especially positive for Thailand whose economy is highly reliant on tourism. Commodity-based economies like Malaysia and Indonesia should also see good GDP growth in 2022.

Meanwhile, during times of high market volatility and high inflation, real assets, such as gold, are attractive havens.

He warned that the major risk over the next 6 to 12 months would be geopolitical tensions continuing to cause market volatility.

Meanwhile, global economic growth will also continue to be affected by supply chain disruptions and interest rate hikes.

Arm Tungnirun, director of the Chinese Studies Centre, Chulalongkorn University, and Wit Sittivaekin, an economics expert, shared their perspectives, providing broader information about the global economy in the years ahead.

Arm said investors should keep their eyes on the annual meeting of the Communist Party of China in October, which will give investors a hint of China’s policy and economic direction.

Meanwhile, Wit suggested that investors monitor the United States’ mid-term elections to the House and Senate in November.

Yingyong concluded that investors should not only keep track of global movements, but also diversify portfolios by not putting too much weight on a single asset. This is a good investment strategy that will reduce volatility in any situation.

Published : August 30, 2022

By : Nongluck Ajanapanya

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https://www.nationthailand.com/business/econ/40019537

Business leaders are worried that electricity-price rises will see costs surge in Thailand’s industrial sector, according to a Federation of Thai Industries (FTI) survey.

The Energy Regulatory Commission (ERC) has announced it will hike the fuel tariff from next month until December, resulting in a record high of 4.72 baht per unit of electricity.

The FTI survey asked 215 executives how the increase in electricity costs will affect their Thai industry. Most worried that the hike was too high, said FTI vice-chairman Montri Mahaplerkpong, revealing the survey results on Tuesday. 

Survey respondents said the higher electricity cost would cause the price of products to rise, driving up the cost of living even further. It would also hit Thailand’s ability to compete with Vietnam, which has kept its electricity cost to 2.8 baht per unit for 2022, they said.

Montri forecast the price of products and services in Thailand would rise by 10 per cent by the end of this year.

Most executives surveyed want the government to limit the fuel tariff hike to 5 per cent while also issuing relief measures for SMEs and people on low income.

So far, the Electricity Generating Authority of Thailand (EGAT) has shouldered increased production costs amounting to about 83 billion baht. But this burden will be shared by consumers via the tariff hike from next month.

However, Montri urged the government to review its electricity pricing structure for every sector and also open up the market for private companies to invest in power plants. He also wants authorities to reduce the time it takes for companies to get permission to use renewable energy equipment.

He explained that the private sector is preparing for the electricity hike by investing in renewable energy sources such as solar rooftops in a bid to remain competitive.

Published : August 30, 2022

By : THE NATION

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https://www.nationthailand.com/business/econ/40019529

The Energy Business Department announced on Tuesday that the rise in oil and gas consumption during the first seven months of this year showed that the country’s economy was recovering.

Nunthika Thungsupanich, director-general of the department, said an average of 151.04 million litres of oil were consumed daily from January to July, an increase of 13.5 per cent from the same period of last year.

The average daily consumption comprised 29.80 million litres of petrol (up 2.4 per cent); 73.44 million litres of diesel (up 16.2 per cent); 6.32 million litres of bunker oil (up 18.9 per cent); and 7.8 million litres of aircraft petrol (up 66.7 per cent).

She said the consumption of LPG rose to 18.17 million kilograms per day, a 9.4 per cent increase, and NGV rose to 3.39 million kg per day, a 5.6 per cent increase.

Nunthika added that the import of oil rose to about 1.031 million barrels per day — 963,155 barrels of crude oil and 68,427 barrels of refined petroleum — from January to July, an increase of 14.5 per cent from the same period last year.

She said the oil consumption rose mainly because of the government’s measures to stimulate the economy.

Published : August 30, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/econ/40019528

The government believes the tourism industry is on the path to recovery and expects a 1,800-per-cent surge in foreign arrivals in the second half of this year.

Deputy government spokesperson Ratchada Thanadirek said on Tuesday that several figures clearly point to a recovery in the tourism industry.

She said more than 4 million foreign tourists have landed in Thailand over the first eight months of the year, and the government expects to log 7.5 million arrivals from July to December. This will mark a 1,840 per cent increase from the same period last year.

Ratchada added that the country can expect to earn 400 million baht from tourist spending in the second half.

She also cited four factors that will promote tourism, namely:

• Airlines resuming flights and launching new routes

• Many countries easing entry and departure restrictions making it easier to travel

• China allowing the resumption of some international flights

• Thailand has reopened border checkpoints to welcome tourists from neighbouring countries

Ratchada added that figures from the Commerce Ministry’s Business Development Department also indicate a tourism recovery.

The department reported that 549 new tour-guide and hotel-booking businesses with a capital of 989 million baht were registered in the first seven months of this year. This marked a 169 per cent and 226 per cent increase in the two business streams, respectively.

As of the end of July, there were 11,891 tourism and hotel-booking operators worth about 43 billion baht.

If the investment in tourism businesses is broken down by the nationality of owners, then 37 billion baht was invested by Thais (87.2 per cent), 1.1 billion baht by Chinese (2.6 per cent), 528 million baht by South Koreans (1.2 per cent), 445 million baht by Indians (1 per cent) and 3.4 billion baht by other nationalities (8 per cent).

The spokesperson said the recovery can be attributed to the cooperation from all sectors and several government measures introduced to stimulate the tourism industry.

For instance, she said, the government has extended the period covered by visa-on-arrival and has launched several campaigns to promote popular destinations.

She added that though the government expects some 10 million foreign arrivals, it is concerned that new viruses, the Russia-Ukraine war and global inflation will affect people’s decision to travel.

Published : August 30, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/econ/40019522

SCBX Pcl, the “mothership” company of SCB Group, never officially sought permission to buy a 51 per cent stake in BitKub Online, the Bank of Thailand (BOT) has said.

The BOT deputy governor for stability of financial institutions, Ronadol Numnonda, said on Monday that the central bank had been officially informed about the cancellation of the deal.

He said that both companies mutually terminated the deal due to business reasons.

Ronadol said that BOT focuses on developing financial innovations while also regulating the overall stability and security of commercial banks in their governance, sufficiency of capital, risk management and its effects, and protection of customers .

Speaking about the BOT regulation that allows commercial banks to invest only up to 3 per cent of their capital in digital assets, he explained that the objective was:

• Allowing commercial banks to have flexibility to invest in bringing innovations to provide service to customers with more efficiency
• Allowing digital asset businesses in the country to grow gradually, and to restrict risks that might affect trust in commercial banks
• Allowing commercial banks to invest or manage their resources carefully

The BOT believes these objectives will eventually be beneficial to users and the development of innovation in the Thai financial sector, he said.

He said that commercial banks that want to establish a subsidiary related to digital assets must first seek permission from the BOT.

Ronadol added that the regulations were not aimed at any specific deal but to regulate the risks to the overall financial system.

SCBX last Thursday announced that the group and Bitkub Capital Group Holdings had reached a mutual agreement to terminate their proposed investment of 17.85 billion baht for a 51 per cent stake in Bitkub Online.

Published : August 30, 2022

By : THE NATION

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https://www.nationthailand.com/business/econ/40019507

The baht opened at 36.33 to the US dollar on Tuesday, strengthening from Monday’s close of 36.41.

The currency is expected to move between 36.25 and 36.45 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

He said the Thai currency is swinging in a wide range and may weaken if the dollar strengthens.

However, he speculated that the baht’s weakening would be limited and it will not weaken past its key resistance level at 36.50 to the dollar.

Moreover, foreign investors did not hurry to sell Thai assets and he believes they will buy more Thai stocks when the price goes down.

The strategist advises investors to use hedging tools such as options to manage risks in a highly volatile currency market.

Published : August 30, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/econ/40019496

Facebook Thailand from Meta and Boston Consulting Group (BCG) today shared the results of its latest study, which emphasized a quiet revolution in the growing adoption of business messaging in Thailand and Apac.

According to the report, over 40 per cent of Thais surveyed said they were messaging with a business more frequently than compared in the pre-pandemic period, with nearly one in two consumers chatting with businesses at least once a week.

The trend was similar across all age groups, especially among Thai Millennials and Gen Zs, who are messaging businesses up to 11.7 times every month. 

The new study, “Business Messaging: The Quiet Channel Revolution Across Tech” surveyed 6,500 respondents across Thailand, Australia, Indonesia, Korea, Philippines, Taiwan, and Vietnam, and showed how having seamless and deeper conversations is emerging as a baseline expectation and has become an integral communications channel for both businesses and consumers.

For Thai businesses, 90 per cent recognize that messaging apps are important for success, while 80 per cent of consumers plan to continue using messaging to interact with businesses, impacting the future of business’ commercial and customer experiences as business messaging gains traction following the pandemic’s acceleration.

Tarandeep Singh, Managing Director at BCG explained, “The Covid-19 pandemic forced countries around the world to go into lockdowns, enforce strict social distancing rules, and restrict in-person business operations. This resulted in more people going online, and businesses across many industries to increase their investment and engagement on online channels to connect with customers.” 

“Based on our research, business messaging adoption is gaining traction beyond small businesses. While smaller businesses have been using Business Messaging to digitize and scale their online presence for years, large businesses now recognize messaging as a critical component of their business model. Nine in 10 large Thai businesses rated messaging as very or extremely important to their overall business,” he added. 

The study also shows the immense potential of business messaging for the financial services sector. Consumers across Apac said it was important for them to message a business before they signed up for a financial product, with 69 per cent of Thai consumers believing it was of high and very high importance to their consideration. This was further reflected by 75 percent of local financial services companies, who perceive Business Messaging as extremely or very important to their business.

This extended adoption also means the continued expansion of use cases across industries such as Consumer Products, Retail, Financial Services, and e-Commerce – ranging from basic enquiries, lead generation, and one-to-one consultations to customization, feedback, re-marketing, and information collecting.

More than half of Thai businesses say that they use Business Messaging for after-sales services, while 59 and 67 per cent of retail and e-commerce businesses, respectively, use it to process pre-sales enquiries. Further, an average of 44 per cent of local businesses said they use messaging to process orders and transactions.

The end-to-end potential of Business Messaging can be seen in Thai beauty brand N’LIGHT 10, which built a conversational experience that manages customer conversations and drives sales. Their innovative experience, which involved click-to-Messenger photo ads and automated responses, made it easier for customers to converse with N’LIGHT 10 and purchase its products within Messenger using Facebook Pay. This helped the beauty brand increase its sales by 600% and played a key role in N’LIGHT 10’s increased confidence in achieving business success.

Prae Dumrongmongcolgul, Country Director, Facebook Thailand for Meta, said, “We are seeing fundamental shifts in how people and businesses connect, and the last few years have accelerated these shifts. This report shows that the ability to message a business is emerging as a consumer baseline expectation. As business messaging largely takes place across social and messaging platforms, we are committed to enabling businesses of all sizes with capabilities to activate this channel for growth,” she added.

The report also outlines key recommendations for how businesses can start their messaging journey, including defining clear objectives for messaging throughout the entire customer journey; prioritizing business messaging in the marketing strategy so contacts are timely, personal, and relevant, and adopting third-party messaging technology solutions and providers to rapidly scale messaging capabilities.

Commenting on the value of business messaging, Charnae Morris, Head of eBusiness, Nestle IndoChina said “We are very encouraged by the integration of business messaging. The business and brand value proposition for Nestle has been to really engage the consumer and shopper end-to-end from the moment they might have a question about our product, providing them with rich information, and for them to decide whether to purchase the product. We are using this as a proof-of-concept to potentially scale the solution to other businesses from coffee to pet care. As a next step, I would encourage marketers to understand the role business messaging can play in their overall brand strategy and channel mix. After which, they should allocate resources to orchestra ways of working to ensure success.”

Published : August 29, 2022

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/econ/40019491

Thailand’s National Innovation Agency (Public Organization) or NIA has recently hosted the Southeast Asia Startup Assembly (SEASA 2022) in Bangkok under the theme “Open the Cities for Startup Opportunities among APEC Member Economies”.

The hybrid event brought together representatives from government startup agencies from ASEAN and partnering countries – Thailand, Brunei, Malaysia, Vietnam, China, and India to discuss the main issues confronting the startup ecosystem and the solutions that can be achieved through a united effort.

Dr. Pun-Arj Chairatana, Executive Director of NIA, said the COVID-19 pandemic has brought changes in people’s life, as well as work and business operations. Notably, innovativeness, foresight, and resilience are some of the key factors helping firms to overcome global challenges and thrive during the post-COVID 19 era.

The government has a significant role to support in promoting invaluable assets such as Artificial Intelligence, digital transformation, technology, advanced materials, and manufacturing. 

“We should leverage on each other’s experience and expertise to enhance the strength of the overall ecosystem. SEASA event is therefore the place where key players in regional startup communities can exchange knowledge and experience regarding policies, current situations, and challenges that all are currently facing.”

Dr.Pun-Arj also expressed his confidence that with continued cooperation and goodwill within the region, the startup communities will together navigate through this dire time to a brighter future.

The representatives of each country made their brief presentations on “The Roles of Governments in Promoting Startups in the Post-COVID-19 Era” focusing on policy, launch pads, and the current startup situation to maintain strong collaborations of the ASEAN startup ecosystem. It reflected that they have similar policies to support startups.

Since the COVID-19 pandemic had accelerated the digital transformation and forced people to adapt their behaviors into accepting a cashless society, now 90% of Brunei population is now completely comfortable with the QR codes. This opens us up to the acceptance of things like e-wallets and cashless transactions. To support tech innovation and capacity building, they are going to launch a Brunei Innovation scheme in July 2022. 

India has India Stack model to support a market expansion through eKYC and customer onboarding. This enables its population to better access financial services. The government also developed and launched UPI to ensure that everybody has an opportunity to access the digital payment. 

While Thailand has been trying to provide easy access and create infrastructure and opportunities for both Thai and international tech enterprises under the Thailand 4.0 initiatives. 

And Malaysian government has been working on three pillars to promote the digital economy – digital talents, digital businesses, and digital investment.

Community and Ecosystem is also important. Hence, the Thai government started the Global Startup Hub in Thailand five years ago. They have currently set up offices in Bangkok, Chiang Mai, and Eastern Economic Corridor (EEC) to facilitate local and foreign startups in various sectors.  

Malaysia also has been trying to build startup communities and facilitate the market. The government has launched Malaysia Digital Hub Initiatives with over 400 startups in communities. 

To foster its startup ecosystem, Vietnamese government is working aggressively on next steps by developing the policy sandbox to fund startups directly, producing more talents, setting up innovation corridor and strengthening both domestic and international networks. Recently, they also amended the Intellectual Property (IP) laws, aiming to encourage universities and startups to bring more technology and research into commercialization.

In terms of foreign investment, the pandemic disconnected most flights causing more difficulties to attract foreign startups to expand or establish in other countries. 

Therefore, China has set up Chinese Academy of Sciences (CAS) centers in overseas including in Bangkok. Besides, it also cooperates with Chulalongkorn University to set up an incubation center and creates partnerships with the government agencies and local investors to attract Chinese startups to Thailand by focusing on the sectors related to bioeconomy, circular economy, and green economy. 

The Malaysian government also welcomes foreign startups to invest in Malaysia by offering 1-5 year passes for entrepreneurs who would like to explore or want to set up a business in Malaysia

Panelists also discussed Environmental, Social, and Governance or ESG which is a huge trend influencing all sectors including startups. For some startups receiving funding from big corporates, they are already required to meet ESG compliances. 

In addition, businesses and universities should escalate their collaborative efforts to make the research or studies more practical for businesses. In conclusion, the post-COVID-19 time requires resilience and agility where startups need to create business models that suit the current situation. 

Therefore, the governments need to have policies in place to create business continuity for SMEs and startups as well as help ease some unnecessary regulations to improve a long-term business environment.

Apart from 6 countries joining the SEASA event, Thailand also has a strong connection with other ASEAN and partner countries namely Singapore, Korea, and Japan. And they will foster collaborations to together drive innovation in the future.

Published : August 29, 2022

By : Stephanie Adair