The baht opened at 34.37 to the US dollar on Thursday, skidding slightly from Wednesday’s close of 34.34.
The currency is expected to move in a range between 34.30 and 34.50 on Thursday, predicted Krungthai Bank market strategist Poon Panichpibool.
Poon said the baht might fluctuate and weaken during the day as the dollar strengthens over concern that the US Federal Reserve might increase the interest rate to bludgeon inflation.
Meanwhile, investors have unloaded the baht, recently selling short term bonds worth THB3.8 billion, he noted.
The baht might test its resistance level of 34.40-34.50 to the dollar because of these transactions and stock sales, he added.
However, the baht will not weaken much past its resistance level as exporters are waiting to sell the dollar, Poon said.
China’s Covid-19 situation is also not worrying while the Chinese government eases lockdown measures, keeping EM Asia assets from being sold in large amounts.
Poon said the baht would move between 34 and 34.50 to the dollar until new factors emerge.
He advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.
Thai exporters have begun to feel the impacts of the Russia-Ukraine war and several economic woes, including a Chinese economic slowdown, the chairman of the Thai Chamber of Commerce (TCC) said on Wednesday.
Sanan Angubolkul said Thai exports are starting to be affected by the global economic slowdown caused by headwinds from the protracted Russian-Ukraine conflict.
He pointed out that the rising cost of consumer goods, high inflation rates, inadequate key materials in supply chains, policy rate hikes by several central banks and China’s economic slowdown coupled with only 4.5 per cent projected growth in its GDP this year were causing the global economic slump.
Sanan said the worldwide slowdown and other problems would definitely affect Thai exports for the remainder of the year.
He noted that warning signs have already emerged with shrinking year-on-year exports to China and Japan in April. He did not elaborate.
However, overall exports in April still enjoyed 9.9 per cent year-on-year growth, Sanan added.
The TCC chairman said exporters had also been hit by rising transportation costs due to soaring oil prices amid the war.
Anyway, he said, Thai exporters of food and agricultural products could actually stand to gain from the global fear of food shortages owing to the war.
Sanan said such fears had prompted a number of countries to stop exporting agricultural products, especially wheat, sugar and vegetable oil.
Since Thailand has not encountered any food shortage and with production far outstripping domestic demand, Thai exporters can grab the opportunity to export agricultural products to world markets, Sanan pointed out.
However, he advised, food stocks and agricultural products must be managed well so the government ensures there is no shortage of necessary materials, including fertiliser and animal feed.
Despite the impact from global woes, the chamber expects export growth of 3 to 6 per cent this year and inflation in the range of 3.5 to 5.5 per cent.
The TCC also believes tourism would be the main economic driver this year and expects 6 million to 8 million foreign arrivals, Sanan added.
Foreign countries are still interested in investing in Thailand, government deputy spokeswoman Ratchada Thanadirek said on Wednesday.
Her statement came after the opposition rejected the fiscal 2023 budget bill on Tuesday, claiming that factories had relocated as they could not trust a government that was the result of the coup d’etat and succession.
Ratchada said foreign investors continued to trust Thailand even in the present Covid-19 situation. She backed up her statement with statistics, saying 196 foreign investors applied for business licences in the first four months of 2022, resulting in investments of THB36 billion.
Most businesses are part of the new S-curve industries in the fields of application platforms, petroleum drilling, examining and repairing medical equipment, charging stations, automobile manufacturers and assemblers, Ratchada explained.
According to her, as many as 28,083 newly listed companies have been established with an authorised capital of THB245.49 billion.
Ratchada said these numbers reflected the confidence of Thai and foreign investors in the country’s economic recovery and long-term growth opportunities from economic stimulus measures.
She revealed the government had requested THB396 billion to increase the country’s competitive capability and detailed some of the projects the money would be used for:
THB80 billion to help the country become a leader in agricultural and high-value processed agricultural products;
THB118 billion to develop Thailand as a gateway for trade, investment, and logistics;
THB11 billion for the Eastern Economic Corridor;
THB7.27 billion to develop tourist destinations that focus on quality and sustainability.
Ratchada hoped MPs would approve the fiscal 2023 budget bill “to drive the country forward at a significant moment”.
The Tourism Authority of Thailand has gone in for two roadshows abroad, hoping to attract 2.5 million European visitors who could generate THB200 billion in much-needed income for the country this year.
The first roadshow in two years following the Covid-19 pandemic was held late last month and the second is planned for August, said Chattan Kunjara Na Ayudhya, TAT deputy governor for Europe, Africa, the Middle East and America.
Chattan termed the roadshow in Paris on May 23, 24 and 25 a success.
TAT led a delegation of representatives from 13 Thai tour businesses to conduct negotiations with 171 tourism firms from France, the Netherlands and Belgium.
Chattan said the roadshow prompted 2,000 tourists from the three countries to book 4,000 room nights in Thailand valued at THB144 million.
TAT promoted the popular tourist destinations of Koh Kood, Koh Chang, Hua Hin and Pattaya.
Chattan said the roadshow came in time, drawing European interest well before winter season when tourists want to visit warmer countries. So winter in the West is normally high season for Thailand.
TAT aims to draw some 478,000 tourists from France, the Netherlands and Belgium to Thailand this year and expects the kingdom to earn THB34.8 billion in revenue, Chattan said, adding that this would be 50 per cent of the number and income from tourists from the three countries in 2019.
By country, TAT hopes to lure 300,000 tourists from France with THB21 billion in income, compared to 710,000 visitors and revenue of THB42 billion in 2019; 120,000 Dutch tourists with THB9.6 billion in income, compared to 230,000 and THB16 billion revenue in 2019; and 58,000 Belgian tourists with THB4.2 billion in income, compared to 114,000 and THB7.3 billion revenue in 2019, he explained.
“The first roadshow was crucial. TAT had to sell our destinations and services for the winter season in Europe that starts from October,” the deputy governor said. “It’s high season for Thailand because Europeans leave their countries in high numbers at that time.”
He said European tourists have become more interested in visiting Thailand after seeing the Thai government relax its Covid travel restrictions.
“Had we not carried out the roadshow in Paris, we would have missed a huge opportunity to win over European tourists because our rivals are also pushing their destinations with the Covid situation improving,” Chattan pointed out.
He said Thailand’s rivals are countries with Mediterranean seasides, which include Greece, Italy, Spain, Turkey and Egypt, besides a handful of Asian countries including Japan, Vietnam and Indonesia’s Bali.
Chattan said tour operators in the three European countries asked about travel rules and were pleased to know that the Thai government does not require foreign tourists to be quarantined anymore.
He added that a current obstacle was the lack of enough direct flights because airlines have resumed only 40 per cent of services compared to pre-Covid levels and some tourists had to take lengthy transit flights via the Middle East.
Another obstacle was soaring airfare prices – by 15 to 20 per cent – because of the fallout from the Russia-Ukraine war.
Chattan said TAT would hold its second roadshow in Sweden and Denmark in August.
TAT hopes to attract 250,000 tourists from Europe and THB200 billion in income as a result of this roadshow, compared to 8.2 million European visitors and THB500 billion in revenue in 2019, Chattan concluded.
Popular low-cost coffee franchise Muanchon Coffee is being closed permanently from Wednesday to become Bellinee’s Bake & Brew.
Franchise operator CP Retailink explained that the company decided to change its business model to bring it in line with consumer demand because customer behaviour has changed in this Covid-19 situation.
The company said Muanchon Coffee would become a premium bakery and coffee shop called Bellinee’s Bake & Brew so it could better compete in both present and future market environments.
CP Retailink said customer behaviour and tastes have changed significantly while the coffee market is extremely competitive in every customer segment.
Also, the new generation has more methods to access goods and services. Therefore, the company has decided to change its business model to focus on the bakery business, which is currently popular, it said.
Muanchon is a brand that offered coffee for the masses via small operators. It found strength in meeting Thai tastes with prices starting from THB25.
Not surprisingly, it became highly popular with workers and low-income earners. It expanded to more than 1,000 branches in almost ten years, becoming a prototype for CP All’s coffee shops.
The US will become an important market for Thai exports of edible insects, Department of International Trade Promotion director-general Phusit Ratanakul Sereroengrit said on Wednesday.
The US Meticulous Market Research expected the United States’ edible insect market to expand by as much as 28 per cent between 2022 and 2030 and be worth $9.6 billion (THB329.3 billion) in value as these insects are an alternative source of high-nutrient protein, he said, citing the commerce ambassador’s report.
Phusit said the insects, such as crickets, black soldier flies, mealworm, grasshoppers, ants, silkworms and cicadas, are commonly used to produce alternative proteins.
These proteins are mostly used in the food and beverage industry, followed by the animal feed sector, he said, adding that there are various types of edible insect products, such as powders, protein bars, snacks, pastries, confectionery, processed insects and beverages.
Phusit also expected higher demand for edible powder products in line with fitness trends.
He suggested Thai enterpreneurs develop edible insect products for the US market and use packaging that will attract consumers. Phusit also wanted businesses to develop frozen insects as these have an extended shelf life.
Meanwhile, marketing should target Hispanic consumers, especially Mexicans who love to consume insects, he added.
The baht opened at 34.31 to the US dollar on Wednesday, heading south from Tuesday’s close of 34.24.
The currency is expected to move in a range between 34.20 and 34.40 on Wednesday, predicted Krungthai Bank market strategist Poon Panichpibool.
Poon said currency market volatility might increase due to uncertainty whether the US Federal Reserve would increase the interest rate amid inflation worries, causing the dollar to strengthen and the baht to weaken.
He said some investors have unloaded the baht so it might test its resistance level of 34.40 to the dollar.
However, it will not weaken past the resistance level much as exporters are waiting to sell the dollar.
Moreover, foreign transactions have not flown out of Thailand in large amounts as both the Thai and Chinese economies are improving, which will decrease the pressure on EM Asia assets if the market goes into a risk-off state, he noted.
Poon said the baht would move between 34 and 34.40 to the dollar until new factors emerge.
He advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.
Thailand’s outstanding public debt as of March 31 stands at 9.95 trillion baht or 60.58 per cent of the gross domestic product, a report from the Finance Ministry shows.
“Outstanding public debt is still in compliance with the State Fiscal and Financial Disciplines Act of 2018, which stipulates that outstanding public debt should not exceed 70 per cent of the GDP,” government spokesman Thanakorn Wangboonkongchana said on Monday.
On April 1, the Finance Ministry reported that the outstanding public debt as of February 28 was 9.8 trillion baht or 60.17 per cent of the GDP.
The ministry attributed the rise in public debt to the Covid-19 fallout, which prompted the government to issue measures to help affected people and stimulate the economy.
The ministry added that since the global Covid-19 situation began improving in March and economic activities started recovering, foreign currency revenue from exports kept the ratio of public debt low.
Key points in the public debt report as of March 31, 2022, are as follows:
60.58% of GDP (cannot exceed 70% as per the State Fiscal and Financial Disciplines Act)
9.95 trillion baht: Total outstanding public debt
16.42 trillion baht: Thailand’s GDP
26.77%: Ratio of government debt per fiscal year’s estimated revenue (cannot exceed 35%)
653.76 billion baht: Total government debt
2.44 trillion baht: Estimated revenue
1.79%: Ratio of debt in foreign currency against total public debt (must not exceed 10%)
178.11 billion baht: Total debt in foreign currency
0.07%: Ratio of debt in foreign currency against revenue from exports
The baht opened at 34.09 to the US dollar on Tuesday, unchanged from Monday’s closing rate.
The currency is expected to move in a range between 34 and 34.15 on Tuesday, said Krungthai Bank market strategist Poon Panichpibool.
Poon said the baht might fluctuate and strengthen during the day as the market opens to more risks and foreign investors return to the Thai stock market.
However, any rise would be limited as importers are waiting to buy the dollar at the support level, expected to be 34 to the dollar.
Poon said that the baht will move between 34 to 34.40 to the dollar until new factors emerge.
He advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.
The retail price of diesel will rise by one baht to 33 baht per litre as of Tuesday, the Fuel Fund Executive Committee announced on Monday.
The committee announced it was raising the price in line with the price of crude oil, which rose in the Dubai market from $138 to US$149 per barrel late last week.
As of Sunday, the Oil Fuel Fund is in a deficit of 81 billion baht, of which 45.9 billion baht deficit is in the oil subsidy and 35.4 billion baht in the LPG subsidy.
The fund’s liquidity stands at 9.7 billion baht, 3.2 billion baht of which is in the fund’s bank account and 6.5 billion baht deposited with the Finance Ministry.
Sanan said such fears had prompted a number of countries to stop exporting agricultural products, especially wheat, sugar and vegetable oil.
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