Guidelines on the establishment of the bourse for SMEs and startups only were also discussed.

Those eligible to list must be of the status of company limited or public company limited with good governance records.

They will have to disclose information according to SEC rules.

Eligible investors in these companies must come under the categories of institutional investor, Private Equity (PE), Venture Capital (VC) or angle investor.

Retail investors can also participate, but they have to purchase shares via a brokerage agency.

The SEC will allow the establishment of funds to invest in the shares of these SMEs and startups. These funds must be managed by fund managers with expertise in the investment in SMEs and startups.

Secretary-general Ruenvadee Suwanmongkol said the SEC expected to finalise the rules in the first quarter of next year.

Somdet Susomboon, the department’s director-general, said there might be a little struggle to evaluate the export goal for 2020 as the economic situation has not yet recovered from the baht’s appreciation and trade war. He said they will try to achieve growth in the services sector, which is seen as having potential after Commerce Minister Jurin Laksanawisit went on several international trips to negotiate trade agreements and pushed for the Regional Comprehensive Economic Partnership (RCEP).

Thailand might get opportunities for food exports since many countries are facing unrest, and civilians have to store more food.

“We will have a commercial ambassador conceive the work policy and the export target for 2020 during the Bangkok Gems & Jewellery event in February 2020. The meeting with the private sector will discuss estimations for total export forecast for each market and then make a summary. Export potential is seen as positive in 2020.”

The four strategies to boost exports next year are:

1 Improve product channels by sending trade representatives to negotiate and expand markets: old markets ( China, Japan, Germany, England, EU), new market (India, Turkey, Sri Lanka, Bangladesh, South Africa); and restore markets (the Middle East region).

Jurin has negotiated with trade representatives from governments and the private sector, making 16 trips to 18 countries. In addition, the government is expanding its TOPTHAI Flagship further in large platforms; Bigbasket (India), Amazon (US and Japan), and Presto Mall (Malaysia).

2 Entrepreneur skill development with international business management and e-commerce courses to be offered in cooperation with the Panyapiwat Institute of Management.

3 Improve product quality by creating more brands from Thailand with QC licence such as TMark, DEMark, PM-Award, Thai Select, ELMA, etc.

4 Department to upgrade service and database with AI and business AI to make it easier and more accurate.

The government has issued many fiscal measures to stimulate the economy. However, according to the Financial Act and Government Procurement and Supplies Management Act, the government might struggle to issue more economic measures due to limits under the law, he said. The current economy needs more fiscal measures to push for growth, he said, adding: The Bank of Thailand [BOT] and the Finance Ministry must work in unison for a better economy.

Monetary policy plays a crucial role amid the economic situation, as it impacts both money stock and the currency exchange rate. The current strong baht affects the export sector and agricultural product prices, as exports rise but result in lower revenue, which affects domestic purchasing power and value-added tax collection.

“The BOT is the main organisation controlling monetary policy, in which the government cannot interfere. But I do believe the BOT has more monetary instruments to manage the baht’s appreciation other than adjusting the interest rate. The amount of money in the system needs to be stable and appropriate, not more or less,” said Somkid.

The deputy premier also encouraged the private sector to invest at home. “The BOT wants to drain excessive dollars through investments abroad, which will help weaken the baht. However, the private sector also needs to invest in the internal market to strengthen confidence in the economy.”

The Energy Ministry is actively supporting community-based biomass power plants in region, which has plenty of agricultural land but little in the way of water resources. Energy crops such as Napier grass, are low-cost, low-maintenance, and need very little water. The Ministry will fund power plants in areas that have the resources, with the farmers selling the crops to the plant and receiving electricity at low price in return. The Minister believes this policy will help increase income and stimulate the economy at the local level.

This project aims to enter into purchase contracts with local farmers for 20 years for bamboo, Earpod wattle, or Napier grass.

Community-based power plants will use a Feed-in Tariff (FiT) mechanism in renewable power investment for Very Small Power Producers (VSPP) with 10 MW for non-firm power plant. Next year, the government will start buying 700 MW from private producers and has scheduled the commercial operation dates for two types of projects: Quick win project in 2020, followed by the general project the year after.

Under the programme, the party who proposes the project, either private or public, can hold 60 to 90 per cent of ownership while the community, which must have more than 200 households, holds the other 10-40 per cent (10 per cent preferred stock and additional stock up to 40 per cent) The biomass energy must yield a profit of not less than Bt0.25 per unit and that of solar cells Bt0.50 per unit.

The community-based power plant should generate income for the locals and reduce the flow of migration to other areas in search of work.

A resolution passed at the Government regular meeting for November said citizens of these eight countries need not apply for a visa regardless of passport type if the duration of their stay does not exceed 15 days.

The visa exemption for these countries, first introduced in 2015, would have expired at the end of this year.

Russia, South Korea and Japan are top source markets for Vietnam’s tourism sector, according to the tourism administration.

South Korea and Japan are the second and third largest markets behind China.

Last year, the number of South Koreans visiting Vietnam rose by 44 per cent to nearly 3.5 million.

The number of Japanese visitors was 800,000, up 3.6 per cent.

Vietnam received nearly 16.3 million foreign visitors in the first 11 months of the year, up 15.4 per cent year-on-year, according to the General Statistics Office. — VNS

After dipping Wednesday, the S&P 500 index on Thursday pushed past 3,200 for the first time, led by tech, health-care and communications shares. The benchmark is up more than 7% in the fourth quarter and 27% so far this year. Data showing that jobless claims fell less than forecast did little to alter views on the health of the economy. Markets ignored the impeachment of President Donald Trump. The dollar steadied against its major peers. China said it was in close contact with the U.S. to sign the initial trade deal announced last Friday.

Treasuries bucked a sell-off in sovereign bonds from London to Tokyo as monetary decisions rolled out. Sweden’s central bank raised its benchmark to end half a decade of sub-zero interest rates, a move that will provide a test case for global counterparts with negative borrowing costs.

“We’ve been up like six of the last seven days so tactically we are overbought,” said Alec Young, managing director of Global Markets Research at FTSE Russell. “People know the seasonals are good, they know the macro situation has improved in terms of global growth and the trade situation. The concern is that a lot of this is already reflected in the market.”

With few new catalysts on the horizon to revive the equity rally and details of the trade deal remaining vague, equity traders appear to be in a holding pattern. Central banks likewise seem to be on hold, with policy makers in Japan, Taiwan, Norway and the U.K. leaving interest rates unchanged on Thursday.

Elsewhere, the pound fell, adding to worst two-day plunge since July. The Stoxx Europe 600 index advanced. Earlier in Asia, equities dipped in Tokyo, Sydney and Hong Kong while they edged higher in Seoul. Stocks in China were unchanged after erasing the day’s losses as the central bank injected more liquidity before a year-end cash squeeze.

Here are some key events to watch for this week:

-Revised U.S. GDP data are due Friday.

-Friday also brings quadruple witching in the U.S., the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures. Expect elevated trading volume, particularly in the last hour of the session.

These are the main moves in markets:

Stocks

-The S&P 500 index climbed 0.4% to 3,205.28 as of 4:01 p.m. New York time, the highest on record. The index closed at 3,205.97, up 0.45 per cent.

-The Dow Jones Industrial Average advanced 0.5% to 28,376.21, the highest on record with the biggest gain in a week. it closed at 28,376.96, rising 0.5 per cent. While Nasdaq was up 0.67 per cent at 8,887.22, reaching fresh record high.

-The Stoxx Europe 600 index increased 0.2% to 415.07.

-The MSCI Emerging Market index declined 0.2% to 1,106.68, the first retreat in more than a week and the biggest drop in more than two weeks.

-The MSCI World index of developed countries advanced 0.3% to 2,340.84, the highest on record.

Currencies

-The Bloomberg Dollar Spot index dipped 0.1% to 1,195.23.

-The British pound decreased 0.5% to $1.3014, the weakest in more than two weeks.

-The euro gained 0.1% to $1.1124.

-The Japanese yen appreciated 0.2% to 109.30 per dollar, the strongest in more than a week on the largest rise in more than two weeks.

Bonds

-The yield on 10-year Treasuries dipped less than one basis point to 1.91%.

-The yield on two-year Treasuries declined one basis point to 1.62%.

-Germany’s 10-year yield advanced one basis point to -0.24%, the highest in six weeks.

Commodities

-West Texas Intermediate crude gained 0.5% to $61.22 a barrel, the highest in seven months.

-Gold strengthened 0.3% to $1,479.15 an ounce, the highest in six weeks.

Discussions will also cover the qualifications of stock investors in this planned market, SEC assistant secretary-general Jomkwan Kongsakul said.

The SME startup, PE VC, is made up of representatives from state and private agencies.

The new market for SMEs and startups will be under SEC regulations. As its name suggests, only SMEs and startups will be eligible to list on the market.

Retail investors can invest in this market but their investment amount might be capped.

The results of the discussions will be presented to the SEC board and be a part of a public hearing later. The establishment of this market will need permission from the Finance Ministry.

Credit Suisse forecasts the global economy will grow at a moderate rate of 2.5 per cent, suggesting recession is unlikely.

Amid softer growth, Credit Suisse expects modest single-digit returns in the equity markets.

A polarised US presidential campaign, margin pressure, high corporate debt, and fewer interest rate cuts by major central banks – not to mention unexpected political developments – are likely to test investor nerves in 2020, Credit Suisse said.

Even if the US-China trade war eases and Brexit uncertainty diminishes, investing throughout 2020 will require portfolio diversification tilted towards areas of extra return.

Credit Suisse expects moderate economic growth, accommodative liquidity conditions and easing geopolitical tensions. As the US-China trade war subsides, business sentiment should improve, lifting growth-oriented sectors and stocks, it predicted.

Ray Farris, chief investment officer, South Asia at Credit Suisse, said: “We believe that the global economy and markets will continue to show considerable resilience in the face of challenges. In the Asia Pacific, the outlook for the more advanced countries of North Asia remains subdued due to weakness in Chinese trade, with growth of just over 2 per cent. The outlook for Hong Kong will depend strongly on local political developments. Economic growth remains far stronger in much of Southeast Asia, which has more catch-up potential and is less integrated into China-based supply chains. Some countries, most prominently Vietnam, stand to benefit as production continues to shift in their direction.”

“In Thailand, we think the baht should soften to 30.50 over the next several months as relaxation of foreign exchange controls works to generate new outflows from the country. For equities, we have a neutral view as weak growth environment is being offset by low interest rates.”

The outlook for the major economies and currencies:

➤ United States: Credit Suisse expects slower GDP growth for the US economy in 2020 at 1.8 per cent, accompanied by rising core inflation. The US dollar should remain supported but weaken in the course of the year as its interest rate advantage over most G10 currencies wanes.

➤ Euro-zone: Monetary policy is unlikely to ease further, but resilient credit growth should support ongoing economic expansion, with GDP growth forecast at 1 per cent. Fiscal stimulus and diminishing Brexit uncertainty should support the EU.

➤ Asia: A US-China trade deal would likely push the yuan higher and exert some upward pressure on other Asian currencies. Asia is likely to benefit from an improvement in global industrial growth momentum in early 2020 and keep full year growth of 5.3 per cent close to 2019’s 5.4 per cent. We expect the current industrial production slump to bottom in December and begin to recover in the first quarter of 2020. This should work to boost regional exports, improve some countries’ trade balances, and encourage capital flows into the region.

➤ Thailand: The surge in Thailand’s current account surplus to $9.1 billion in the third quarter of this year from $3.8 billion in last year’s third quarter, is the core source of the baht’s strength and looks likely to continue.

However, Credit Suisse expects the Bank of Thailand’s liberalisation of its foreign exchange controls to offset much of this by creating new Thai outflows into foreign currencies.

The key risk Credit Suisse sees to its forecasts is that Thailand’s current account surplus remains large and these measures do not spur significant new outflows.

Outlook for financial markets:

➤ Equities outlook

Equities continue to offer an attractive return advantage over low-yielding bonds. On a sector level, IT is preferred as one of the few high-growth sectors. Financials are also attractive, as the expected improvement in the cyclical outlook will likely trigger a further rotation into that sector in the first half of 2020, Credit Suisse said.

“We believe that a turnaround in the performance of Asian equities is likely in the coming months. We prefer North Asian markets, in particular China, over South Asian ones to take exposure to potential cyclical recovery, Credit Suisse said.

➤ Thailand: Earnings for the third quarter contracted 14 per cent year on year, pushing the numbers for the first nine months to 20 per cent below 2018 for the same period.

“The main factor behind disappointing results has been the lagging economy. Although the government implemented a mini-stimulus package in August-September, the amounts involved were modest, and headwinds from the external sector remained intense,” Credit Suisse said.

“We believe there is further downside risk to market’s expectations of 8.7 per cent EPS [earnings per share] growth for 2020. Though valuation is not cheap either with 2020 P/E [price to earnings] at 15.2 times, ample domestic liquidity and dividend yield of 3 per cent could provide support on the downside.”

➤ Fixed income

“We expect Asian high-yield corporates to be supported by more accommodative policies. Monetary policy is also likely to remain accommodative. The greater-than-7 per cent yield of Asian high-yield bonds remains attractive relative to developed markets and is not expensive compared to its 10-year average.

“We forecast Asia high-yield to deliver 6 per cent total return in the next 12 months,” Credit Suisse said.

➤ Commodities outlook

“Commodities have been on diverging paths this past year, with the industrial production slowdown weighing on cyclical commodities in particular. Going forward, this divergence is expected to diminish. While gold prices are likely to consolidate, oil prices may face a period of weakness before recovering eventually,” Credit Suisse said.

➤ Alternative investments

“In alternative investments, most real estate investments should continue to deliver moderately positive returns. Direct real estate is favoured, as lower interest rates do not yet appear to be fully reflected in the price,” Credit Suisse said.

John Woods, chief investment officer for Asia Pacfic at Credit Suisse, said: “In an environment of lower-for-longer yields, a multi-asset framework allows investors to take advantage of pockets of value in low-risk markets, while increasing expected returns by investing in equities and seeking out less conventional fixed-income investments. We believe such an approach will prove rewarding in 2020.”

Coupled with the rising number of global players from new frontier markets who have been able to build up their own production bases, the increasing number of workers-turned-entrepreneurs and the greater role of online trade, exporters now have to bear higher costs in addition to those incurred on improvement of product and service quality to meet international standards that involve increasing rules and regulations, while also aiming to boost their competitiveness amid the intensifying risks from global economic and political uncertainties.

Exim Thailand has therefore launched new product programmes called “Liquidity Enhancement for Exporters” and “ Relieving Debt Burden for Clients” to support SME exporters, both new and existing clients in all sectors, so that they have higher business liquidity and lower debt burden in the face of possible decreases in purchase orders against fixed monthly costs and expenses. This allows them to drawdown revolving credit to meet the incoming orders and develop their products and services for higher value added and higher competitive edge to cope with global market uncertainties going into 2020.

Exim Liquidity Enhancement for Exporters is aimed at supporting SMEs that are exporters, importers for export-oriented producers, and producers for exporters. They are offered short-term and long-term loan choices to reduce their debt repayment burden and enhance their business liquidity with higher working capital to fund their export activities or improvement of their machinery, factories and manufacturing technology.

Each loan carries a maximum 7-year tenor, credit line of up to Bt20 million per borrower, and an interest rate of 3.99 per cent per annum for years 1-2. It can be secured by a letter of guarantee from Thai Credit Guarantee Corporation (TCG) in conjunction with other collateral assets. Moreover, no TCG credit guarantee fee is chargeable up to four years and total credit approval is targeted at Bt2 billion.t

Exim Relieving Debt Burden for Clients, meanwhile, aims to support SME clients who do not require additional credit facilities but reduction of installment repayment of short-term and long-term loans. For long-term loan clients, a loan rescheduling can be approved for up to two years. In case of rescheduling for not more than one year, the bank will grant a reduction of interest rate by 0.125 per cent per annum.

As for short-term loan clients, an increase in loan drawdown proportion and reduction of interest rate will be granted. Each client may drawdown up to 95 per cent of L/C value and 85 per cent of P/O value and have interest rate cut down by 0.125 per cent per annum for one year. The total support amount is targeted at Bt4 billion.

Both schemes are available from December 2019 until 31 December 2020.

Approximately Bt15.7 billion is expected to be injected into the economic system to create 5,200 job opportunities, increase liquidity and relieve debt burden for more than 750 SME exporters. This will enable SMEs in the export value chain to carry less debt burden and lower operating costs, as well as to develop their products and services for higher competitive advantage.

The Exim president added that exports of countries in several regions around the world have currently tended to contract in line with global economic slowdown and as repercussion from the trade war. Thai exports in 2019 have been shrinking for the first time in four years, predicted at 2.0 per cent, which is however still lower than those of such countries as South Korea at 10.7 per cent since early 2019, Indonesia at 7.8 per cent, Malaysia at 5.0 per cent and Japan at 4.6 per cent. Thai exports in 2020 are forecast to expand by 0-2 per cent.

In view of this, Exim Thailand has rolled out schemes toward the end of 2019 to assist Thai exporters, particularly SMEs who are the key to driving Thai export and economic growth, in running their businesses with adequate liquidity and ongoing development to ensure their competitive potential under the increasing international trade barrier circumstances. They are expected to be part of the stimulators of Thai export recovery in 2020 based on many strengths, including high resilience of Thai goods.

Some Thai foods and electrical appliances can also penetrate the Japanese market, especially those serving the Olympic Games to be hosted by Japan in 2020. Approximately 50 per cent of Thai exports today go to new frontier markets like India, Vietnam, Hungary, Poland, Nigeria, Morocco and Mexico.

The S&P 500 index fell Wednesday — after spending most of the day higher — snapping a five-session streak of gains. Tech shares stumbled toward the end of regular trading as Apple Inc. slid from the day’s highs. FedEx Corp. plunged after a forecast cut. With few big economic headlines imminent, and much of the U.S. focused on the impeachment vote, investors may take a wait-and-see stance as the holidays near.

“We think it’s largely going to be a non-event,” Candice Bangsund, a vice president and portfolio manager at Fiera Capital, said of the impeachment. “It’s going to be the story likely for the next two to three weeks and then it will be ancient history and we’ll be moving on to the elections, to trade negotiations.”

With global stocks close to all-time highs and the U.S.-China trade accord announced Friday yet to be signed, traders are finding few reasons to bid prices higher. The outlook for America’s monetary policy remains steady — two Federal Reserve policy makers reiterated that interest rates are on hold — yet the miserable results from FedEx were a reminder of the headwinds to growth.

The Stoxx Europe 600 index closed lower as national benchmarks traded mixed, with Germany’s gauge underperforming even as data showed business expectations improved for a third month.

PSA Group rose and Fiat Chrysler Automobiles NV was steady as they agreed to combine in a deal to create the world’s fourth-biggest auto manufacturer. Bang & Olufsen A/S plunged after the luxury TV and stereo maker issued its fourth profit warning in a year. The pound extended its losses after tumbling Tuesday on renewed concern that a no-deal Brexit is possible. The dollar strengthened against most of its G-10 peers.

Earlier in Asia, equities were mixed, with shares falling in Tokyo but rising in Hong Kong and India. The yuan was steady offshore after China’s central bank injected liquidity into the financial system.

Meanwhile, West Texas crude rebounded, and energy shares rose, after a bullish U.S. inventory report.

Here are some key events to watch for this week:

–Policy decisions are due Thursday from the Bank of Japan and the Bank of England.

–Revised U.S. GDP data are due Friday.

–Friday also brings quadruple witching in the U.S., the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures. Expect elevated trading volume, particularly in the last hour of trading.

These are the main moves in markets:

Stocks

-The S&P 500 index was little changed at 3,191.14 as of 4:05 p.m. New York time, the first retreat in more than a week and the largest fall in a week.

-The Stoxx Europe 600 index declined 0.1% to 414.38.

-The U.K.’s FTSE 100 index advanced 0.2% to 7,540.75, hitting the highest in almost 20 weeks with its sixth consecutive advance.

-Germany’s DAX index decreased 0.5% to 13,222.16.

-The MSCI Emerging Market index jumped 0.6% to 1,108.81, hitting the highest in 18 months with its sixth consecutive advance.

Currencies

-The Bloomberg Dollar Spot index gained 0.1% to 1,195.87, the highest in a week.

-The euro declined 0.3% to $1.1118, the weakest in a week on the largest drop in more than a week.

-The British pound decreased 0.3% to $1.3086, the weakest in two weeks.

-The Japanese yen depreciated 0.1% to 109.57 per dollar, the weakest in almost seven months.

Bonds

-The yield on 10-year Treasuries gained four basis points to 1.92%, the highest in five weeks.

-Germany’s 10-year yield advanced five basis points to -0.25%, the highest in five weeks.

-Britain’s 10-year yield increased one basis point to 0.775%.

Commodities

-West Texas Intermediate crude gained 0.1% to $60.97 a barrel, hitting the highest in three months with its fifth consecutive advance.

-Gold weakened 0.1% to $1,475.54 an ounce.