The survey, published by ECA International, also found that Singapore has experienced a significant rise in the rankings, becoming the 12th most expensive location in the world for expatriates.

“We have seen the cost of living in Thailand increase over several years now. Bangkok especially has risen by over 100 places in the space of five years, and is now the 63rd most expensive location in our list,” Lee Quane, regional director for Asia at ECA International said yesterday.

“In doing so, it has moved into a category of relatively expensive locations in Asia. The city is now significantly more expensive than regional capitals including Jakarta, Kuala Lumpur and Manila. “Meanwhile, Singapore’s rise in our rankings is largely due to another strong year for the Singapore dollar.”

While increases in prices have been small over the past year, the strength of the Singapore dollar relative to other currencies makes Singapore the 12th most expensive location in the world and the sixth in Asia, overtaking Beijing, Busan and Yokohama from a year ago. This also marks the continuation of a longer-term trend, with Singapore rising 18 places since 2014 when it was 30th in the global rankings.

The ECA’s Cost of Living Survey compares a basket of like-for-like consumer goods and services commonly purchased by international assignees in 482 locations worldwide. The survey helps businesses ensure that their employees’ spending power is maintained when they are sent on international assignments. Certain living costs, such as

accommodation rental, utilities, car purchases and school fees are usually covered by separate allowances. Data for these costs are collected separately and are not included in the ECA’s cost of living basket. ECA International has been conducting research into cost of living for over 45 years.

Hong Kong is now the fourth-most expensive location in the world for expatriates, up from 11th last year, and the second most expensive location in Asia. After being ranked in 28th place just five years ago, Hong Kong now sits only behind Ashgabat, Turkmenistan, and the Swiss cities Zurich and Geneva.

Hong Kong is now one of the top five most expensive locations for expatriates, primarily due to the continued strength of the Hong Kong dollar and relatively higher rates of inflation witnessed in the Chinese Special Administrative Region in the past 12 months. Prices in Hong Kong rose at a faster rate in the past 12 months compared to Tokyo, Shanghai and Seoul – all of which were ranked higher in our previous survey, Quane said.

The Chinese cities included in the rankings all remained fairly static, with none of the 14 locations moving more than four places. Shanghai was the only mainland Chinese city to feature in the global top 10, staying in 10th place.

“The Chinese yuan has been very stable compared to other currencies during the survey period. Inflation in tier-one cities such as Beijing and Shanghai has been much more moderate when compared to other Asian cities which are situated towards the upper end of our rankings,” Quane said.

“Prices have risen at a faster rate in tier-two locations, resulting in a narrowing gap in living costs for expatriate workers in tier-one and tier-two cities in the past year. This represents the continuation of a trend we have observed, with several developing cities such as Chengdu and Tianjin rising significantly in our rankings over the course of the past five years. All 14 of the Chinese cities in our rankings now feature in the global top 50, as compared to five years ago when there were only four.”

The location with the highest cost of living in the world was Ashgabat in Turkmenistan, which rose 110 places from last year.

Quane said that although the rise of Ashgabat in the rankings may be a surprise to some, those familiar with the economic and currency issues experienced by Turkmenistan over the past few years may have seen this coming. “Ever-escalating levels of inflation, coupled with a prominent illegal black market for foreign currencies have pushed up the cost of imports. This implies that the costs for visitors in Ashgabat, at the official exchange rate, have increased enormously – putting it firmly at the top of the rankings,” Quane said.

ECA International is a provider of knowledge, information and software for the management and assignment of employees.

After a rocky start to the year, the outlook for exporters is set to worsen, according to the research unit of TMB Bank, which points to the monetary easing of central banks in major economies – including the United States, Europe and Japan – that could push the baht to a further 5 per cent gain by the end of this year.

TMB Analytics said exports – excluding gold and weapons – contracted by 4 per cent year on year in the first four months of this year. For the rest of the year, exporters face heightened risks and fluctuation in value in light of uncertainties from the trade sparring between the US and its major trading partner countries, notably in Europe and China.

The baht is projected to stay at 31.2 to the US dollar until the end of this year, up 5 per cent from last year.

The expected baht appreciation of 5 per cent could cut companies’ profits by about Bt17 billion.

Those business sectors that rely on export income and use local materials will suffer the worst impacts, with an estimated income loss of Bt66 billion and a projected gross profit margin drop of 0.3-3.2 per cent. This group includes producers of rubber products, seafood, meat and accessories.

Expected to benefit from the situation are those businesses that distribute products locally and import raw materials. They will gain from an estimated reduction in imported materials of Bt62 billion, and an increase of 0.3-4.9 per cent in gross profit margins. This group includes producers of machinery and parts, steel and other metals, electrical appliances, textiles, and medical products and equipment.

Those reliant on export income and import raw materials will not experience impacts, due to the effect of a natural hedge. This group includes producers of auto parts, beverages and chemical products.

Businesses engaged in agriculture that rely mainly on exports and use local materials have been pressured by the baht’s appreciation, as well as from existing problems including low prices, high competition and sluggish global markets, said Jitipol Puksamatanan, a strategist at Krungthai Bank.

If the baht continued its appreciation several business sectors – particularly small and medium-sized enterprises (SMEs) – will be affected or, at the worst, shut down their operations, he said.

“If the situation continues, and Thailand still faces a current account surplus, the baht will likely appreciate further. Management must focus on the long term. It’s difficult to [imagine a scenario where we] have a chance to see a baht depreciation. We have to find ways to develop products to compete with others,” he said.

Based a survey by The Nation, the baht switched to a sharp appreciation after the US Federal Reserve signalled more monetary easing, which promoted market expectations for two to three possible interest rate cuts this year.

Within the region, the baht hit its highest level in more than 25 years against the Malaysian and Indonesian currencies. It was trading at 7.50 to the ringgit, marking a gain of 42.3 per cent from its previous high of 12.99 per ringgit. At 2.19 to Indonesia’s rupiah, it is up 82.6 per cent from its prior high of 12.60.

Against the Indian rupee, the baht was trading at its highest in 21 years and seven months, at 0.45 to the rupee. This represents a jump of 62.5 per cent from its last high at 1.40 to the rupee.

The baht has appreciated against Vietnam’s dong by the most in 20 years and four months, at 0.0013 per dong. This is up 99.9 per cent from its last high at 2.71 per dong.

Against the Philippine peso, the baht is at its strongest in 20 years, rising to 0.6 per peso, up 40.6 per cent from its last high at 1.01 per peso.

Farther afield, the Thai currency has appreciated against the British pound by the most in 22 years and four months, at 39.7 to the pound. This is up 56.2 per cent from its last high at 90.72 to the pound.

Against the Australian dollar, the baht has gained the most 18 years and six months to 21.70, up 41.2 per cent from its last high at 36.90 to that unit.

The Federation of Thai Industries (FTI) wants to see stimulus measures shore up growth in the rest of this year, FTI chairman Supant Mongkolsuthree said.

Supant said that, in addition to the expansionary fiscal policies, the government said should seek to accelerate the trade negotiations between Thailand and the European Union, opening up more trade and investment markets for Thai businesses.

The FTI’s calls for government action came as it announced that a gauge of business confidence in Thailand increased from 95 points in April to 95.6 points in May. Improvements in sales, production volumes and revenue, pushed by high consumption levels, were credited for the gain.

The survey found that big construction projects in the public sector have generated increased demand for the construction industry. It also found that sales of home electrical appliances are rising with the summer temperatures remaining high.

However, businesses are still concerned about a slowdown in exports caused by the trade dispute between the US and China, together with an easing in growth in the global economy and the appreciation of the baht.

Meanwhile, the total production of cars for the domestic and international markets stood at 181,338 in May, marking a 6.11 per cent contraction year on year. Domestic sales came to 88,097 and international sales 95,331, according to Surapong Paisitpatnapong, vice chairman and spokesman of the Automotive Club of the FTI.

Car output rises

The number of cars produced from January to May this year was 893,067, increasing 2.94 per cent year on year.

Car sales amounted to 437,722 for the period, a rise of 9.1 per cent year on year.

Motorcycle sales totalled 169,989 units last month, down 4.4 per cent year on year but increasing by 33.7 per cent month on month. Motorcycle sales from January to May came to 743,443, an increase of 1.6 per cent year on year.

Exports of cars in May reached 95,331 units, equivalent to 100.9 per cent of the total production for exports. This is a decrease from May last year of 3.58 per cent, with exports to most markets taking a hit.

Exports to Asean markets, the Middle East, Europe and North America had a total value of Bt48.6 billion, a decrease of 6.33 per cent from May 2018.

From January to May, exports of fully assembled cars stood at 462,286 units with a value of Bt233.8 billion, a decrease of 0.94 per cent compared to the same period last year.

Total exports of engines, parts and spare parts in the first five months of this year came to Bt337.9 billion, a decrease of 5.39 per cent year on year.

It will be officially opened by General Prayut Chan-o-cha, the Thai prime minister, from June 23-24 at the Renaissance Bangkok Ratchaprasong Hotel. As a prestigious regional platform, the CLMVT Forum brings together the private sector and the government as well as thinkers and academics to share ideas.

Organisers said forces can spearhead towards the region becoming the new value chain hub of trade and investment in the dynamic global economic landscape as well as to tackle new challenges.

“Thailand is honoured to play host to the CLMVT Forum for the third consecutive time. Following the success and the solid collaboration projects on regional trade, investment and networks as a result of the CLMVT Forum 2016 and 2018, this CLMVT Forum 2019 sets out to underline the great potential of the five CLMVT countries,” said Pimchanok Vonkorpon of the Ministry of Commerce.

The first challenge is how economic integration and connectivity within the region can be leveraged to maximise Asean’s potential as an exporting hub, since such integration has played an important role in facilitating the free flow of goods and services, capital and labour, as well as of information and data across the region, said the data analytics company head.

The other major Asean challenge is the lag in terms of technological adoption and digital literacy. Both the government and private sectors can take part in identifying appropriate technologies for different industries and providing examples to accelerate the spread of technology adoption, she said.

SCB Abacus is a pioneer in applying AI and machine learning solutions to tackle the needs of Thai businesses.

AI technology has become increasingly significant to developmental actions across the globe and Sutapa noted that automation has been replacing several kinds of manual operations in various industries. She told the forum that organisations with data skills are expected to gain leadership in the market, as has happened in the United Stated where firms with data and technical talent accumulate market power. As of now, industries with the highest adoption of AI are high-technology, telecommunications and financial services. Soon, the AI technology could also be potentially applied to a range of other industries, such as education, agriculture and logistics.

“The current financial revolution with AI is a result of active competition in the markets,” Sutapa told the forum. “Other tech-related businesses have also noticed the opportunities of AI application and a massive amount of consumer data as the key enablers that allow them to enter the financial sector. Meanwhile, financial service providers are using AI to design solutions that meet specific needs of customers in the financial market, including product personalisation, credit scoring, target marketing and fraud detection

“Several leading banks have realised how AI can add value to their current services, and therefore invested enormously in the technology to make sure that their business keep pace with disruption. These financial institutions also support fintech startup companies rather than seeing them as a threat or competitor. However, great power comes with great responsibility, and these firms need to focus on sustainable innovation and responsible execution in order to maximise the benefits of such technologies,” Sutapa concluded.

The Institute of International Finance panel discussion focused on issues such as the world’s segmented financial supervisory, sustainable finance, technological innovation in the financial sector and ways to overcome the challenges related to global demographic changes.

The company said in a press release on Thursday that this is because they are automatically turning to younger family members for all forms of tech support, leading to cries of “Can you just… fix the internet?”, “… show me how to upload to the cloud?” or “… secure my online banking app?”.

But at a time when the younger generation is trying to buy houses, have children and advance their careers, the demands from overwhelmed and uninformed family members to provide free technical support can be a step too far.

Whilst more than half of millennials (55 per cent) feel duty-bound to provide on-demand tech support to older relatives, a quarter (25 per cent) say that they actively avoid family members who they think will ask for help.

With half (52 per cent) of over 55s admitting they are not knowledgeable about tech, four-in-ten (41 per cent) phone their children or other younger family members for remote IT support. An astonishing 18 per cent miss their children’s tech support more than their company when they are not around. And, in their desire to get help from family members, 15 per cent of over 55s have even bribed them for support.

Alexander Moiseev, Chief Business Officer, Kaspersky, said: “Not everyone has grown up with technology – and the older generation may therefore not feel as comfortable using it as millennials, or tech natives, do. But we want everyone to enjoy the opportunities that technologies can and do bring to our lives – and we are committed to empowering everyone with the information to do so. The right knowledge will enable users of all ages to conduct their online activities with confidence – and look forward to what the future could bring.”

The over-reliance on millennials to be tech support heroes is affecting family relationships, and even their gifting habits. Nearly a third (30 per cent) avoid buying older family members technology presents, because they know they will be the ones lumbered with having to set it up.

“The dramatic rise of technology within our cars, offices and social environments has challenged all generations to continually learn how to benefit from them. Those in the second half of their lives can find the changes overwhelming and often fear being duped, exposed or targeted via them – and it is often millennials who are forced to come to the rescue. Being armed with knowledge may mean we all feel a little less of an existential crisis and a little more attached to our inner Bill Gates,” adds Kathleen Saxton, psychotherapist.

Kaspersky is committed to breaking the cycle of ‘Can you just’ and giving time back to millennials who are having to increasingly provide ongoing tech support for family members, as well as arming the older generation with the tools to help themselves.

Bangkok: Technology has transformed how we live our lives, but it has come at more than just a financial cost for many of us. A new Kaspersky survey has found that more than a third (35%) of over 55s would struggle with daily technology challenges if it wasn’t for support from their children. Due to this, they are automatically turning to younger family members for all forms of tech support, leading to cries of ‘Can you just… fix the internet?’, ‘… show me how to upload to the cloud?’ or ‘… secure my online banking app?’.

But at a time when the younger generation is trying to buy houses, have children and advance their careers, the demands from overwhelmed and uninformed family members to provide free technical support can be a step too far. Whilst more than half of millennials (55%) feel duty-bound to provide on-demand tech support to older relatives, a quarter (25%) say that they actively avoid family members who they think will ask for help.

With half (52%) of over 55s admitting they are not knowledgeable about tech, four-in-ten (41%) phone their children or other younger family members for remote IT support. An astonishing 18% miss their children’s tech support more than their company when they are not around. And, in their desire to get help from family members, 15% of over 55s have even bribed them for support.

“Not everyone has grown up with technology – and the older generation may therefore not feel as comfortable using it as millennials, or tech natives, do. But we want everyone to enjoy the opportunities that technologies can and do bring to our lives – and we are committed to empowering everyone with the information to do so. The right knowledge will enable users of all ages to conduct their online activities with confidence – and look forward to what the future could bring,” explains Alexander Moiseev, Chief Business Officer, Kaspersky.

The over-reliance on millennials to be tech support heroes is affecting family relationships, and even their gifting habits. Nearly a third (30%) avoid buying older family members technology presents, because they know they will be the ones lumbered with having to set it up.

“The dramatic rise of technology within our cars, offices and social environments has challenged all generations to continually learn how to benefit from them. Those in the second half of their lives can find the changes overwhelming and often fear being duped, exposed or targeted via them – and it is often millennials who are forced to come to the rescue. Being armed with knowledge may mean we all feel a little less of an existential crisis and a little more attached to our inner Bill Gates,” adds Kathleen Saxton, psychotherapist.

Kaspersky is committed to breaking the cycle of ‘Can you just’ and giving time back to millennials who are having to increasingly provide ongoing tech support for family members, as well as arming the older generation with the tools to help themselves.