Deputy PM Jurin Laksanawisit said the panel comprised representatives from Commerce Ministry, Foreign Ministry and Labour Ministry, adding that it would promptly inform the US on labour issues in Thailand.

However, Jurin said, the suspension would not impact on Thailand’s attempt to explore new markets in the US.

Kobsak Pootrakool, Deputy Secretary General to the PM for Political Affairs, said that the meeting also touched on the slow progress of the Thailand-China high speed train project.

The meeting identified obstacles to the project which will be discussed between PM Prayut and China’s Prime Minister Li Keqiang at the next Asean Summit, to be held in Thailand from November 2 to 5.

According to the Office of the United States Trade Representative announcement on October 25, US President Donald Trump is suspending $1.3 billion in trade preferences for Thailand under the Generalised System of Preferences (GSP) based on its failure to adequately provide internationally-recognised worker rights.

The announcement said that despite six years of engagement, Thailand has yet to take steps to provide internationally recognised worker rights in a number of important areas identified in a 2015 petition from the American Federation of Labour and Congress of Industrial Organisations (AFL-CIO), such as providing protections for freedom of association and collective bargaining.

GSP eligibility will be revoked, effective six months from October 25, for approximately one-third of Thailand’s GSP trade, which totaled $4.4 billion in 2018.

The list of products to be excluded from GSP for Thailand is focused on products for which the United States is a relatively important market for Thailand, but where Thailand accounts for a relatively small share of US imports.

Additionally, due to longstanding worker rights issues in the seafood and shipping industries, GSP eligibility will be revoked for all seafood products from Thailand. The GSP market access eligibility review of Thailand will remain open.

“Delaying this measure to next year will only hurt the current market, as buyers will put off buying or transferring their properties until the new fee rates come into effect,” he said. “This will mean discouraging results for the property market in final quarter and render many promotional campaigns planned for year-end by property developers pointless.

“Although it is a good measure, it will take too long to yield any results and fails to take account of the fact that it usually takes banks at least 30 days to approve a loan,” he added.

Tritecha noted that up to 50 per cent of Supalai’s finished condos are eligible for the new transfer and mortgage fees, which will be reduced to 0.01 per cent from the original 1 per cent and 2 per cent respectively.

Prasert Taedullayasatit, chief executive officer at Pruksa Real Estate, expressed the view that the lowering of transfer and mortgage fees will not benefit property developers as long as the Lone to Value (LTV) measure announced by Bank of Thailand is still in place and prevents many customers from obtaining a loan.

“To maximize the boosting of property market, the LTV measures should be delayed while the lowering of transfer and mortgage fees must be moved up,” he said. “This way, home buyers can more easily obtain loans easier and enjoy cheaper fees while the market continues to rise towards next year. It’s a win-win for everyone.”

Related Story: Govt cutting property transfer, mortgage fees might not be as effective as expected

Related Story: Soft loans, fee cuts set to boost property sector

The developer is preparing 200 rai for the Mega City project adjacent to Mega Bangna, which has been open since 2012 and stretches over 250 rai. The new phase of the Mega City project will see the development of hotels and office buildings with partners and will launch in early 2020.

The new development has so far see the construction by Areeya Property of two condominium projects, consisting of 1,328 units at A Space Mega worth Bt2.8 billion and A Space Mega 2 with 1,001 units and a project value of Bt2.458 billion.

Over the past 7 years, the Bangna area has shifted from a residential area to a “hub”, a new business centre that has attracted investment from many real estate developers. The Mega City Project, SF says, will not require too much investment due to plans for the development of public utility infrastructure by the government. The company is now inviting investment in the project whether for the purchase of land, long-term rental and project development.

Part of the Mega City project is the successful Mega Bangna shopping centre, which is expected to attract 4.5 million people this year, up from 3.8 million in 2018. Average spending has increased to Bt3,500 per receipt from the original Bt 1,000 in 2017 while the average monthly income of families who shop and eat at Mega Bangna is Bt150,000.

Pitchaya said investment in the Mega City project meets the demands of investors interested in the business growth of Bang Na district.

“The negotiations with United States Trade Representative (USTR) are expected to take place during 35th Asean Summit which will be held in Bangkok next month, along with negotiations for the Trade and Investment Framework Agreement Joint Council (TIFA-JC),” he said. “We are planning to discuss several issues with US representatives covering both export and labour rights.”

The inspector-general also insisted that the US had full authority and discretion to hand out and suspend GSP to developing countries and there could be many reasons to reconsider the preference, such as level of development, intellectual property protection, labour rights, and support of the USA’s anti-terrorism effort. “We need to negotiate the issues in detail before saying what the real reason behind this GSP suspension is,” he said.

Keerati further explained that the GSP suspension of 573 products does not mean that US will no longer import these products, which have total estimated valued of Bt40 billion, from Thailand, “We can still export to the US but will have to pay the tariff at 4.5 per cent on average instead of 0 per cent, or an estimated Bt1.8 billion,” he said. “Products to suffer from the highest tariff are ceramic kitchenware at 26 per cent, while the lowest tariff collected is for chemical products at 0.1 per cent.

Keerati also said that the GSP suspension has nothing to do with the ban of 3 agrochemicals previously approved by the Hazardous Substance Committee, as the United States has been signaling its intentions for GSP revision for quite some time. “The government and Ministry of Commerce have been aware of possible GSP suspension and have prepared measures to help Thai exporters such as identifying new alternative markets and promoting the adding of value to the products,” he said. “We believe that eventually Thai exporters will survive the GSP suspension by the US in the same way they survived EU’s and Japan’s suspension earlier.”

The upcoming suspension might have an impact on their businesses, both in sales and use of loans.

Banks must keep a close watch on the situation and offer prompt assistance as it may affect their ability to repay debts.

Deja hopes the issue will come up for discussions at the 35th Asean summit, hosted by Thailand between October 30 and November 5.

In the first nine months of the year, the bank recorded a drop in loan growth to 3.9 per cent. The bank will hasten lending in the remaining 2 months of the year to reach the 4-per cent growth target set for 2019.

He said the bank would face further challenges next year as the global economic slowdown is expected to continue amid the on-going US-China trade disputes.

Thailand’s GDP is forecast to grow 2.5 per cent next year, compared to 3 per cent in bank loans.

“The Thai economy has been softening, partly due to the GSP declaration dragging down growth. It is hard time for businesses. We have to monitor our customers for any sign of troubles. Requests for loans are expected from large companies which have signed up for the government’s mega projects, such as the Sky train and the high-speed rail route connecting three major international airports,” Deja said.

The ratio of Non-Performing Loan (NPLs) tends to increase in the last quarter of the year. The bank will try to keep NPLs at the current level of 3.4 per cent with the focus on corporate customers. This will help stem a rise in NPLs, he said.

“We might see an upward trend in NPLs. However, we are quite lucky that we have approved a few retail loans. To prevent a spread in NPLs, We need to look after our customers more closely and talk to them before the problem occurs,” said the chairman.

The major impact on growth is the contraction of exports, which is estimated to be 2.5 per cent this year, compared to the 0.9 per cent contraction predicted earlier. The impacts of the US-China trade war and the global slowdown have been blamed for the contraction.

The ministry is however optimistic that exports next year will bounce back and expand 2.6 per cent year on year.

IMF calls for further easing of monetary policy, more govt spending amid slow growth

The recent government stimulus package is expected to expand the economy by 3.1 per cent in the final quarter of this year and by 3.3 per cent in 2020, compared to 4.1 per cent growth last year, he said.

However, the impacts of the trade war and the slowing down of the global economy remain major risks for Thailand.

Household consumption is expected to grow by 3.8 per cent this year and 3.5 per cent next year while private investment is expected to expand by 2.7 per cent this year and 4.6 per cent next year. Public investment is projected to grow by 1.4 per cent this year and 6.6 per cent next year. Headline inflation remains very low at 0.8 per cent this year due to falling crude oil prices and sluggish economy.

Lavaron said that projected growth rate of 3.1 per cent in the second half this year was higher than in the first, which saw a growth rate of 2.6 per cent, and was due largely to the government stimulus package, which has injected about Bt60 billion into the economy. Of this amount, some Bt51 million is being used as an income guarantee for farmers and as cash handouts for the poor. The Eat, Shop and Spend scheme to promote domestic tourism is expected to inject about Bt10 billion into the economy, he added.

Pisit Puapan, director of macro-economic analysis division, said that the new forecast is based on the assumption that the economic growth of major trading partners would expand at 3.3 per cent, decelerating from 3.5 per cent previously estimated due to impact of slower growth in China and the US.

The value of the baht this year is Bt31.1 per dollar on average, up 3.8 per cent from last year. The baht is expected to strengthen to Bt30.75 next year, 1.1 per cent up from this year. The baht has appreciated 5.6 per cent since early this year, which is expected to rise to 6.2 per cent by the end of this year.

Average Dubai oil price is expected to be US$62.7 per barrel, down from previous forecast of $65.5. The oil price next year is expected to drop to $61.2 per barrel.

The number of tourist arrivals, meanwhile is forecast at 39.8 million, down from 40 million predicted earlier, largely due to slowdown of Chinese tourists in the first half of 2019. The Number of foreign tourists next year is expected to grow by 4.1 per cent to 41.5 million.

Public spending remains an economic driver as disbursement of current spending and capital spending is projected to be 98 per cent and 70.3 per cent respectively, he added.

The premier formally opened the event and gave the keynote speech on the role of Thailand in ASEAN Connectivity before presenting the Prime Minister’s Award. He also took part in the signing ceremony of a memorandum of understanding (MOU) on international collaboration in the digital economy and society. The four-day event is being held at BITEC Bang Na and stretches over three exhibition zones covering 40,000 sqm offering a variety of digital-driven activities.

The Prime Minister reminded participants that the government’s Thailand 4.0 policy emphasizes the adoption of advanced digital technologies and taking advantage of the government’s big data in order to develop human capital, society and key business segments, including farmers and small and medium enterprises (SMEs), which represent the largest proportion of the country’s population. Through the use of digital technology, the Thailand 4.0 economic development model will help leverage incomes across segments of society. If the policy is successful, the problems of inequality and disparity will be solved and Thailand will move forward to become an advanced country in accordance with the national strategic plan.

The premier added that the “Digital Thailand Big Bang 2019” was being hosted as part of to match Thailand’s ASEAN chairmanship, adding that its objective was to create an ecosystem that benefits the digital economic development in collaboration with ASEAN member countries. The event demonstrates Thailand’s readiness for the digital transformation, increasing the efficiency of high-speed internet, creating skilled digital manpower through the lifelong-learning approach, the development of digital or electronic payment systems and enhancing the efficiency of logistics to drive the growth of the e-commerce industry. By stressing the ASEAN Connectivity concept, the event will solidify the collaboration between the public and private sectors to facilitate economic development within ASEAN under efficient regulatory frameworks and standards. It will also help strengthen and improve such digital-related aspects as cybersecurity, electronic transactions, personal data protection and global data traffic.

“All factors in the digital transformation will help steer the digital economic development of ASEAN to flourish in a sustainable way. The arrival of digital technology presents opportunities for people to get access to its benefits and advantages. If people help develop a collaborative network to capitalize on the advanced technologies and innovations, ASEAN will grow and prosper with sustainability,” said the prime minister.

Buddhipongse Punnakanta, Minister of Digital Economy and Society, added that he regarded Digital Thailand Big Bang 2019 as integrated bridge created to connect the public and provide people with opportunities to experience a range of digital technologies, which they can adopt and further develop in the future to drive the country’s economic and social development sustainably. The event underlines Thailand’s readiness for digital transformation, which will boost business confidence and attract foreign investments to the country.

Prime Minister Prayut Chan-o-cha also presented the Prime Minister’s Award to young innovators, digital communities, digital entrepreneurs, digital startups and digital organizations with outstanding digital innovations. The Award is divided into five categories, namely Digital Youth of the Year, Digital Community of the Year, Digital Startup of the Year, Digital Organization of the Year and Digital Entrepreneur of the Year. He also witnessed the signing of an MOU on international collaboration in digital economic and social development between the depa and the State Government of Victoria, Australia Web Summit, Microsoft (Thailand) and Ananda Development. Depa also signed a second MOU with CAT Telecom and the Public Health Ministry.

Digital Thailand Big Bang 2019 brings digital enthusiasts together. The event features a wide range of digital technologies and digital-driven activities divided into three exhibition zones: Digital Economy, Digital Society and Creativity. The “Digital Economy” zone showcases the development of the urban digital economy and the technologies that are anticipated to dictate the future such as artificial intelligence (AI), the Internet of Things (IoT) and Big Data. The “Digital Society” zone presents the importance of digital skills for moving Thailand forward to the digital era in a sustainable manner, especially the digital technologies used to elevate the quality of lives of people in the agricultural sector. The “Creativity” zone, meanwhile, features an array of innovative technologies used for creative industries from various startups and game developers.

The highlights of Digital Thailand Big Bang 2019 are as follows;

● The adoption of unmanned aerial vehicles or drones for use to benefit society such as Rescue Drones, which are increasingly used for emergency services. Visitors can have hands-on experience in riding the passenger drone.

● Visitors can experience Thailand’s first journey to the future with the “Hyperloop”, which aims to break the barriers of distance and time.

● A surprising concert by Robot KUKA and artists from independent music label Smallroom

● Gathering of world-class digital gurus and famous speakers in the digital world such as The Next Web, the largest tech conference organizer in Europe from the Netherlands; Mike Walsh, a futurist speaker; Javier Sobrino, the man who pulled the strings behind the development of FC Barcelona; Ines Caldeira of L’Oreal Thailand; Ray Chan from 9GAG.com; Yasushi Ishihara from Konami as well as representatives from BuzzFeed, AirBNB and other high-profile organizations.

● Startup ASEAN Pitching: Runway to Web Summit Thailand by Web Summit, the organizer of startup expo from Portugal.

● A wide range of solutions for smart city development at Smart City Solution Week 2019 by Messe Frankfurt, one of the world’s leading trade exhibition organizers from Germany.

● Gathering of Thailand’s top speakers at “Creative Talk” show, including the chance to meet with administrators of famous web pages such as Little Monster, Just Doo It (JUSTดูIT), Ad Addict and much more.

● ASEAN Startup HACKATHON brings experts in technology together for brainstorming more creative solutions to the sustainable development of smart city.

● Visitors can also enjoy a wow experience in the E-Edutainment zone and witness the technical advancement of digital media created to promote learning and generate digital manpower. They can play and develop gaming content like professionals, learn how to fix smartphone-addiction problems and transform an unproductive smartphone addiction into a beneficial smartphone addiction for a brighter future.

● ROV e-Sports tournament

● Coding Arena for improving digital skills

● Hebocon robot contest

Digital Thailand Big Bang 2019 is free to the general public and runs until October 31 at Hall EH98 – 104 at the Bangkok International Trade and Exhibition Center (BITEC), Bangna, Bangkok. For more information, visit www.facebook.com/digitalthailandbigbang

The most-sold stocks were Charoen Pokphand Group (CPF) and Thai Union Group (TU), with a 4 per cent decrease.

TU president and CEO Thiraphong Chansiri said the company has not felt any negative impact from the United States suspending some trade preferences for Thailand. This included cancelling acceptability of some seafood products covered by the Generalised System of Preferences (GSP). TU’s seafood exports are not under the GSP, Thiraphong added.

Asia Plus Securities said only 573 export products were on the suspended GSP list, so this might affect just 0.01 per cent of total exports. However, amid a weak economic situation, the government needs to issue stimulus measures continually, it added.

The GSP suspension will take effect on April 25, 2020, after the US on Friday suspended preferred treatment for Thai products worth around US$1.3 billion (Bt39.2 billion), citing the kingdom’s failure to improve its labour rights to meet international standards.

The Trade Policy and Strategy Office estimates the costs of exports and imports will increase by 4.5 per cent, while products which will not continue to receive GSP privilege will see a loss of $30 million – 0.1 per cent of export value to the US, or 0.01 per cent of Thailand’s total international exports.

European countries had suspended GSP status for Thai goods in 2015. However, exports that year remained the same, at $23 billion, and now currently stand at $28 billion in 2019.

He added that Mae Chaem district had good potential as a location because it has plenty of raw materials to feed the plant. The district has up to 100,000 rai devoted to corn plantations, which can yield 45,000 tonnes of corn cobs and corn husk per year, as well as a similar amount in corn trunks. The district also has 50,000 rai of rice farms, which can yield tonnes of rice husks and straw daily.

Patana said the one-megawatt power plant will cost Bt100 million to build and should offer returns of 8 to 10 per cent, adding that Egat was currently looking for a suitable site.

Energy Minister Sontirat Sontijirawong also visited the district recently to check on its potential as the site of the first community power plant.

According to the ministry’s model, Egat, the community and the private sector will hold shares in the plant. The community will hold 10 to 30 per cent, and while a private firm will invest in the plant, the community will pay dividends gained from the power generation back to the company.

Apart from earning from the sale of electricity, the community will also earn from selling corn cobs to the plant. As per a study by Egat, the cobs can be sold at Bt500 to Bt700 per tonne or between 50 and 70 satang per kilogram.

The minister has assigned Egat to coordinate with the community to create a “social contract” for seeking raw materials for the plant. Egat will then draw up the plan for the ministry and the Cabinet’s consideration. Once approved, all related parties will have the go-ahead to kick off the project.

Once the “social contract” is made, the construction of the plant is expected to take 10 months. The ministry is expected to complete final details by November and announce how it will purchase power from the plant later.

Sontirat said the ministry is targeting sites in 30 provinces for similar plants.

He said these factors have affected the country’s export sector, which is consequently affecting the employment situation.

The global slowdown has resulted in a drop in orders from foreign customers, while the baht has continued rising against the currencies of Thailand’s trading partners, he added.

Supant Mongkolsuthree, chairman of the Federation of Thai Industries (FTI), said the government’s “Eat, Shop, Spend” economic stimulus may help spur domestic consumption, which could offset the impact of the decline in exports.

FTI vice chairman Suchart Chantaranakaracha said it is still unclear whether the ailing global economy will affect jobs in Thailand, where the unemployment rate is low at 0.9 per cent. It is also difficult to predict if the rate of unemployment will rise next year.