eBay’s integrated plan supports a sustainable growth program for Thai sellers, offering tremendous opportunities for success in the global online market which continues to experience rapid growth.

Jenny Hui, general manager of cross border trade, eBay Hong Kong, Taiwan & Southeast Asia, said: “Cross-border e-commerce continues to trend upwards and is expected to comprise 20 per cent of all worldwide e-commerce by 2022.

“The Asia-Pacific region will become the largest cross-border trade (CBT) region in e-commerce for both imports and exports. In 2018, the value of Southeast Asia’s e-commerce market reached USD 23.2 billion (Bt714 billion) and is expected to continue to grow to USD 102 billion in 2025.

“To strengthen our leadership in global e-commerce, eBay is committed to making continuous improvements to increase our business competitiveness. This year, eBay is focusing on an integrated plan to encourage Thai sellers of all shapes and sizes to grow their own online retail business and sell to the world on eBay, which is supporting a range of business initiatives to boost the sustainable growth of Thai sellers through improved performance.

“eBay’s platform connects small and medium-sized Thai businesses to 180 million active buyers in 190 markets around the world. We can clearly see the potential for CBT in e-commerce, and that Thai sellers can provide incredible value thanks to the huge variety of products made in the country that offer high quality and unique selections. This creates tremendous opportunities for Thais to sell worldwide.

“The five most popular categories for Thai sellers are: 1) Jewelry; Gemstones & Watches; 2) Health & Beauty; 3) Home & Garden; 4) Collectibles; 5) Auto parts. And don’t forget that jewelry from Thailand has seen strong and consistent demand from global buyers for many years. The United States is the largest market for export sales, accounting for about half of the total items from Thai sellers, followed by the UK, Australia, Germany, and Russia,” she added.

eBay has consistently recognised the tremendous opportunities that are available through the wide variety of Thailand’s products which meet the demands of the global market, and include beautiful handcrafted merchandise such as fine jewelry and accessories, industrially-designed products, such as decorative items for the home and garden, and health and beauty items, she said.

“Today’s consumers globally expect retail-standard services and speed. eBay continues to invest in technologies and platform features that deliver the greatest buyer journeys making it especially easy for sellers to start their online business and become successful.

“Our business initiative programs offer Thai sellers seamless cross-border retail opportunities in the global online marketplace through a more efficient process, while helping Thai eBay sellers scale up their businesses faster, which contributes to sustainable growth,” said Hui.

The company said in a press release on Wednesday the results were part of its latest Thailand ‘Empty Pack Survey’ which was conducted to determine the proportion of untaxed cigarettes from 10,000 discarded empty packs randomly collected from the streets and public garbage places in 36 provinces around the country during the last quarter of 2018.

The number found was a decrease from 6.6 per cent on the same period of 2017 due to an increase in cigarette prices following a reform of the excise tax structure.

Philip Morris has praised the public sector and agencies concerned for jointly taking pro-active measures to crack down on illicit trade which resulted in the concrete result.

Pongsathorn Ansusinha, External Affairs Director, Philip Morris Trading (Thailand) Co Ltd, said: “It is an achievement by the Thai excise, customs, military, police and other law enforcement authorities, who stepped up the crackdown efforts resulting the decrease in the proportion of untaxed cigarettes nationwide.

“It is estimated that the efforts helped to reduce losses in excise revenues by more than Bt2 billion. But the situation is note in three provinces where the most illicit cigarettes are found, namely Songkla where the proportion of illicit cigarettes account for as high as 73.4 per cent followed by Satun with 72.7 per cent and Pattalung with 36 per cent.”

Pongsathorn added: “70 per cent of untaxed cigarettes found in the survey do not have labels that show they are produced to sell in which country or at duty-free shops. So their origin cannot be determined. However, most of the untaxed packs are of the brands well known in the deep south of Thailand.

“Based on our conversation with small retailers in the areas who sell legal products, the conclusion we reached is in line with the results of the survey. In our opinion, if a taskforce is set up to seriously crack down illicit cigarettes like in Australia, we should be able to improve the situation.”

Expressing his concern about an increase in the sale of Heat-Not-Burn tobacco products of Philip Morris International (PMI) through online channels and websites, Pongsathorn said: “PMI’s Heat-Not-Burn products are sold legally in 47 countries around the world for adult smokers who may want to continue their smoking habit. The products could be categorised in the same group as e-cigarettes whose imports have been banned by Thailand since 2014. But due to increasing consumer demand, PMI has closely monitored online channels and websites which illegally sell the products to Thai consumers. In cases where there is an online infringement on intellectual property (such as unauthorised use of PMI’s trademark), a request for takedown are raised immediately with the platform owner.”

The committee said it expects the economy to expand at a slower pace than previously predicted due to a drop in exports, though inflation is projected to be in line with the previous forecast.

Overall financial conditions remain conducive to economic growth, he said, though there is some risk to financial stability in the future that warrants continuous monitoring.

Since the current accommodative monetary policy stance contributes to economic growth and is appropriate given the inflation target, the committee decided to keep the policy rate unchanged.

Merchandise exports will grow at a significantly slower pace than previously assessed due to a slowdown in the economies of trading partners and global trade as a whole, mainly affected by intensified trade tensions, particularly between the US and China.

Tourism will also grow at a lower rate relative to the previous forecast mainly due to a drop in Chinese tourists.

As for domestic demand, private consumption is expected to continue expanding, though it could be restrained by elevated household debts, with signs of moderation in earnings and employment in export-related manufacturing sectors. Private investment is also projected to slow down.

However, the relocation of foreign companies’ production base to Thailand and public-private partnership projects in infrastructure should support investment in the period ahead.

Meanwhile, public expenditure will grow at a slower pace than previously estimated due to a delay in the enactment of the 2020 Annual Budget Expenditure Act as well as the postponement of some state-owned enterprise investments.

The committee will monitor external risks from trade tensions, the economic outlook of China and advanced countries that could affect domestic demand, as well as geopolitical risks.

Furthermore, MPC will monitor the implementation of policies by the new government and public expenditure, as well as the progress of major infrastructure investment and its knock-on effects on private investment, which could affect the momentum of economic growth.

The annual average headline inflation will largely remain unchanged from the previous projection, though the price of fresh food is expected to rise. Core inflation, however, will mostly be in line with the previous projection.

The committee said structural changes are contributing to more persistent inflation than in the past, such as the expansion of e-commerce, tighter competition in prices and production being made cheaper by technology.

Meanwhile, real interest rates remain low, allowing the private sector to continue expanding. Loans extended to businesses and consumers also continue growing.

As for the exchange rate, the baht appreciated at a rather fast pace, outperforming regional currencies due to a weakening US dollar, short-term capital inflows and domestic factors.

The MPC expressed concerns over the currency appreciation, as it might not be consistent with economic fundamentals, adding that it will continue to closely monitor the development of exchange rates and capital inflow.

Financial stability remains sound overall, but there is still a need to monitor risks that might pose vulnerabilities to financial stability in the future. The committee said the implemented macro-prudential measures and a higher policy rate had to some extent curbed vulnerabilities in the financial system.

Nevertheless, the committee will monitor household debt accumulation driven particularly by auto loans, growth in assets held by saving cooperatives and the links between cooperatives; adjustments in the real-estate sector after the implementation of a revised loan-to-value ratio measure, and leverage by large corporates that could under-price risks.

There remains a need to address financial stability risks through a combination of tools, including an appropriate policy rate as well as micro- and macro-prudential measures, which will be needed to place a greater emphasis on the debt serviceability of borrowers.

Looking ahead, the Thai economy will expand at a slower pace due mainly to the softening momentum of external demand.

The committee will continue monitoring the development of economic growth, inflation and financial stability, together with associated risks – especially from trade tensions – when deliberating appropriate monetary policy.

Hong Kong tops the list as the world’s costliest city for the second consecutive year with the local housing market increasingly out of reach for many.

Other cities appearing in the top 10 are Tokyo (2), Singapore (3), Seoul (4), Zurich (5), Shanghai (6), Ashgabat (7), Beijing (8), New York City (9), and Shenzhen (10). Ashgabat in Turkmenistan saw the biggest rise in rankings, jumping 36 places from 43rd in 2018, the result of the country’s shortage of currency and imported goods driving up prices.

Bangkok’s rise in ranking was largely due to the movement of other cities as well as the effects of a buoyant economy, with currency fluctuation and inflation having little impact.

Mario Ferraro, Mercer’s Global Mobility Practice Leader for Asia, Middle East and Africa, said Asia continued to be a major engine of global economic growth.

“Despite the relatively high cost of living, many organisations still see a strong business rationale for moving talent into and within the region. At the same time, cost considerations are still an issue, and we are seeing an increased focus on having a clear business case for the assignment, as well as measuring the return on investment,” he said.

This year’s ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment.

The reduction is due to the lacklustre performance of the export sector, which has been hit by slowing global trade in the wake of a simmering trade war between the US and China.

KResearch assistant managing director Nattaporn Triratanasirikul said that global trade for the remainder of 2019 will continue to face challenges from the possibility of the Trump administration imposing tariffs on an additional US$325 billion worth of Chinese goods.

Hence, KResearch had revised its export growth forecast sharply downward, to zero per cent, from the original projection of 3.2 per cent. Speaking at a seminar titled “Thailand’s Economic Outlook in 2H19”, he added that attention should be paid to the outcome of the G20 summit and any possible resolution to the political skirmish between the US and China, as well as to the strong baht. If positive signs emerge from the trade talks, Thai outbound shipments may move back into positive territory and drive Thai GDP to the upper end of the KResearch revised projection, between 2.9 and 3.3 per cent.

Even though GDP growth for all of 2019 may slow, KResearch forecasts that the outlook for Thailand’s economy in the second half of the year will likely brighten due to the lower base of last year and stimulus measures likely to be implemented by the new government in line with campaign pledges for the March election. These include the so-called “Pracharat” policy, price guarantees for agricultural products, and other pressing policies to cushion the impacts of the looming global economic slowdown. These initiatives are forecast to offset the expected delay in 2020 budget disbursement.

Regarding interest rate trends, the Bank of Thailand’s Monetary Policy Committee is seen as keeping the policy rate intact at 1.75 per cent for the rest of this year, prioritising stability while also closely monitoring several risks to the Thai economy. Meanwhile, the US Fed is expected to cut the Fed Funds rate once or twice this year in light of signs of weakening in the US economy.

Scrutinising domestic commercial banks, Nattaporn views that loan growth for 2019 may stand at 4.5 per cent, down from the previous projection of 5 per cent due to reduced business loans in line with slower economic growth and housing loans during the rest of this year, given the surge of demand before implementation of the loan-to-value (LTV) measure.

Meanwhile, although non-performing loans (NPLs) may increase during the year due mainly to NPL re-entry, the figures are still set to be in line with each bank’s respective targets, she said.