The new QR payment system, “MyPromptQR”, will make it easier, quicker and safer to make payments via the mobile phone compared to the current QR-payment system, said Ronadol Numnonda, the central bank’s deputy governor responsible for the stability of financial institutions.

He was speaking at the launch of the “New Chapter of QR Payment: MyPromptQR”, held at the two-day Fintech fair “Collaboration for the Future of Finance” in Bangkok.

The current QR payment system requires consumers to key in the sum of money they will pay and use their mobile phone to scan the merchant’s QR code. Under the new system, consumers only have to get the merchant to scan the QR code embedded in their mobile phone and the payment is made.

Consumers who have their QR code linked to their bank account will no longer have to make cash transactions when they go shopping at malls, convenience stores and other retail outlets.

This system will also make cross-border payments easier, especially in the Asean region, bank executives said.

Five banks and some retailers are expected to launch this service in the fourth quarter of this year, before four more banks follow suit early next year.

Ronadol also said the new system meets the international ISO20022 standards.

“It is more secure because you no longer have to give cashiers your debit or credit card,” said Yos Kimsawatdee, head of the payment systems office at the Thai Bankers’ Association.

Central Department Store and the Mall Group have decided to adopt the new QR-code system.

Some 5 million retailers currently use the old QR system, which generates transactions worth up to Bt10 billion per month. The central bank hopes that more and more consumers and businesses will adopt this cashless payment system once the “MyPromptQR” system is introduced.

The Energy Ministry will also brainstorm with state agencies under its aegis as soon as possible to come up with measures to boost the economy, he added.

He also vows to manage energy prices so that consumers will not be burdened.

He also quashed fears about plans to increase the daily minimum wage to Bt400, saying this needs to be considered by many parties first, including the national tripartite daily wage committee and the business sector to ensure the wage hike does not hit businesses.

He added that it is unlikely the wage hike will be implemented next year, saying it was a target to be achieved in the next four years. He also said that along with boosting wages, the government will also upgrade the skills of the workforce.

Meanwhile, Auttapol Rerkpiboon, chief operating officer for PTT’s downstream petroleum business group, said PTT plans to invest Bt300 billion over three years on projects that have passed its final investment decision. The investment will be divided into Bt100 billion per year starting from this year.

Manpong Senanarong, senior executive vice president and head of the exchange’s issuer marketing division, said about a dozen companies are readying their shares for public offerings on the SET, with some having have just submitted their filing reports to the Securities and Exchange Commission (SEC). The procedure for most of them began in May and the applications should be nearing the approval stage now. The new entrants would help contribute to a more vigorous IPO market compared with that seen in the first half of the year.

“Apart from the new local companies, we are also expecting more foreign corporations to enter the SET,” he said. “Usually foreign companies will consider market conditions before investing in the local stock market, and currently there are no negative factors in Thailand. The SET and the SEC have already had discussions with several foreign companies to help them get ready in terms of data preparation and regulatory compliance. However, it usually takes longer for foreign companies to be listed on the SET, compared with their Thai counterparts, since local companies are already familiar with the rules and regulations of the SET and the SEC.”

Somphop Sakphanphanom, chairman of Asset Pro Management Co., Ltd. (APM), said that another factor helping to boost the IPO market is the government’s support for small and medium-sized enterprises – especially those in the transport, energy, construction and food and beverage sectors. He said that by the end of the year the company will bring in more Cambodian companies from the Phnom Penh Special Economic Zone to the SET under the dual-listing scheme.

The gains followed a revision by Fitch Ratings on its outlook for Thailand’s long-term foreign currency issuer default fating (IDR) to positive from stable. It also affirmed the rating at BBB+.

Foreign and individual investors recorded net purchases of Bt869.55 million and Bt1.71 billion, respectively.

Meanwhile, other stock markets in the region also enjoyed gains, with Singapore’s Straits Times Index closing at 3,377.96 points, up 16.91 points from Thursday.

Hong Kong’s Hang Seng Index closed at 28,765.4 points on Friday, ahead by 303.74 points from Thursday.

Bursa Malaysia’s KLC Index finished at 1,658.19 points, up by 9.26.

The Nikki index ended at 21,466.99 points on Friday, up 420.75 from Thursday.

Upon assuming the industry portfolio for the fourth time, Suriya said another pressing issue was to help operators of small and medium-sized enterprises, especially those who have paid off debts but remain on the Credit Bureau’s blacklist. This status prevents them from getting new loans.

He will schedule talks with the Small and Medium Enterprise Development Bank of Thailand (SME Bank) to formulate remedies, along with ensuring that more money is injected into SME operators via the Industry Ministry’s SME Fund.

“As for the Eastern Economic Corridor (EEC) project, we will continue according to the original plan,” he said. “However, a development campaign focused heavily on a certain area may cause economic disparity in the region. For example, workers in the EEC areas will have a higher per capita income than those in Bangkok. It is therefore advisable to extend the EEC’s development model to other regions of Thailand, especially those with high economic disparities, like the Northeast. I will bring this into discussions with Deputy PM Somkid Jatusripitak later to explore the possibilities.”

The Industry Ministry also plans more help for SMEs in the EEC areas, such as setting local content requirements to urge those behind mega-projects and investors to source materials and products from local manufacturers.

“I am positive that we will be able to restore the confidence of foreign investors especially in the EEC areas after the new government unveils tangible policies regarding industrial development and an economic boost. I have discussed matters with several Japanese entrepreneurs and they still see Thailand as Asean’s most promising investment destination,” Suriya said.

Suphachai Phattharaphisutthana, the union head at the state-owned bank, said about 5,000 jobs at both banks could be lost.

He said that although executives at both banks has vowed not to lay off any staff, he feared this would just a usual tactic and that they would apply pressure on those at risk by imposing much stricter appraisals on their performances.

“Through tougher appraisals, the staff at risk of being laid off will become anxious and depressed,” he said, adding that he thought that those to be laid off would find it very difficult to find new jobs in the same industry, due to the current economic environment.

Suphachai said he had formally submitted the wages request to the Finance Ministry, a major shareholder in the TMB.

Ronadol Numnonda, a deputy Bank of Thailand (BOT) governor, said that while the banks were committed to making the merger work some employees were already highly prone to disruptive behaviour and needed to adjust their attitudes.

Thanachart CEO Praphan Anupongongarch said that after the merger the bank would seek to reassign some staff to different tasks, instead of laying them off.

He rejected the union’s demand for the banks to publicise their plans, saying the central bank first needed to conduct due diligence in relation to the merger.

Jurin cited the worrying decline in exports as a reason for this move, saying the new committee will comprise of several associations, such as the Chambers of Commerce and Board of Trade of Thailand, the Federation of Thai Industries, the Thai Bankers’ Association and the National Shippers’ Council of Thailand.

He added that this committee will act as a forum for the exchange of ideas and suggestions to tackle the problem of dampening exports.

“The Commerce Ministry plans to hold a meeting with the committee every month, with the first one to be held next week,” the minister said.

At the meeting, private sector representatives will be able to voice their problems and offer potential solutions to the trade officials. This will allow the ministry to implement measures to address problems faced by Thai exporters, coordinate with other ministers or submit their requests to the Cabinet.

Thai exports have been dropping due to the US-China trade war, global slowdown and the appreciation of the baht. Furthermore, increasing the minimum daily wage to Bt400, as proposed by the Phalang Pracharat Party, will also adversely affect small and medium enterprises who rely on exports.

The Commerce Ministry has set the year-on-year growth target for exports this year at 3 per cent.

Income guarantee for farmers will be another measure to help the agriculture sector, Jurin said, adding that income will be guaranteed for maize, cassava, palm-oil and rubber growers.

“Guaranteeing income for farmers will help boost their income, because the government will compensate farmers who make less than the amount insured by the state. For instance, if the price for rubber is set at Bt60 per kilogram and the farmer is only able to sell it at Bt50 per kg, then the government will pay the difference,” Jurin added.

The agreement between the exchange and the think tank will see an exchange of knowledge and will involve using Big Data to sustainably enhance the business sector and society as a whole.

SET president Pakorn Peetathawatchai said that SET realises the importance of research studies and has joined forces with academic, public, and private organisations to conduct research work to further support the goal of sustainable development of the Thai capital market and the economy. Pakorn said this was in line with the vision “To Make the Capital Market Work for Everyone”.

The MoU focuses on conducting research to help businesses and the public be well-prepared to cope in an ever-changing landscape. The collaboration will make use of Big Data for sample sizes, as well as the in the exchange of human resources and knowledge.

IPPD managing director Sorapop Kiatpongsan said: “We are delighted to take part in this project in research studies for the benefit of the economy and society towards sustainability. The first phrase will focus on savings, investment, business and social sectors’ sustainability, with an aim to enhance savings and investment literacy, develop skills, while raising public and listed firms’ participation in various dimensions by using information and evidence from the analyses and experiments.”

In addition, the SET and the IPPD organised a capital market research forum on the “Disappearing Workforce”, at the SET building in Bangkok. The honorary guest was Stefano Scuratti, regional director of APAC Public Policy Consulting. The Economist Intelligence Unit presented a special report on “The disappearing workforce? Why countries in Southeast Asia need to think about fertility rates before it’s too late”. Guest speakers from the government and private sectors exchanged opinions on trends.

He added that it depended on Prime Minister General Prayut Chan-o-cha whether an economic cabinet would be set up or another approach adopted to manage the economy.

He added that the economic cabinet could help move economic development faster as it would be the first to screen economic plans before forwarding to the Cabinet for consideration.

Somkid said that the FTI on Friday proposed to the government that it provide a tax deduction in relation to the planned Innovation Fund, which will be jointly set up and operated by private companies.

Moreover, the FTI representatives should be allowed to take part in the government’s development of the ease of business doing report.

With the government’s policies likely to be officially announced by the end of next week, Uttama declined to disclose the details of the expected economic stimulus policy at a press conference at the Finance Ministry on Friday.

Economists from commercial banks predict that the new government’s stimulus package will inject around Bt100 billion into the economy to stimulate consumer spending.

The strategy of the new government, Uttama said, will focus on the domestic economy and ways to boost the grassroots economy amid uncertain external factors dampening the Kingdom’s exports.

The minister plans to increase the benefits under the Pracharat welfare card to stimulate spending by low-income earners.

Agricultural sector will be another key focus of the government, he said. Uttama said that efforts to increase the capabilities and wellbeing of those in the agricultural sector must involve a number of government ministries.

“We have to make sure that the agricultural policies directly impact the farmers and increase their income in a sustainable way,” he said. “One such policy which we aim to improve on is promoting e-commerce in the agricultural sector.”

This, he said, will empower the sector with new technology and increase its competitiveness.

“The challenge, however, lies in the extent to which farmers will adopt the e-commerce platform into their business models,” he said.

The government will also continue to maintain the level of financial discipline in the country, he said, suggesting that the government will not overspend to jeopardise the long-term financial stability of the country.

Uttama went on to clarify that the Palang Pracharat Party did not campaign to reduce income tax for all. Instead, the government will be looking at changing the current tax structure to reduce income inequality. This involves increasing taxes for some and lowering taxes for others, he said.

Ekniti Nitithanprapas, director-general of the Revenue Department, cautioned that a 10 per cent tax cut for all would cost the country and the government dearly.