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https://www.nationthailand.com/business/40016104

The Fiscal Policy Office (FPO) will hold discussions with the Interior Ministry to follow up on a request from the private sector for a review of the land and building tax.

Finance Minister Arkhom Termpittayapaisith said on Monday that he had told the FPO to analyse the land and building tax collection. His response followed a letter from the private sector to the Finance Ministry, seeking a postponement and reduction of the tax to ease the burden on citizens and operators amid the Covid-19 situation and the Ukraine-Russia conflict.

The government has already implemented the tax.

Arkhom said the FPO will have to find guidelines to help citizens because the land and building tax is a part of local revenue, which will be used for local development.

According to Thansettakij media, it would be hard to reduce the land and building tax in this fiscal year as tax collections had started in April.

However, local authorities could use their power to postpone the tax collection. For example, the Bangkok Metropolitan Administration could defer the tax collection from April to July.

In the past two years, the government has reduced the land tax by 90 per cent to reduce the impact from the Covid-19 situation, as a result local revenue slumped by THB30 billion, while the government could not find alternate sources of revenue to compensate for the loss, Thansettakij said.

The government had offered THB10 billion assistance in fiscal year 2019-20, but it could not offer a similar support in 2020-21 as it lacked a budget. If the government postpones or reduces the tax collection, it might have a problem in finding a revenue source to make up the shortfall, Thansettakij said.

However, there are some ways to reduce the tax. For example, tax on agricultural land or building owned by an individual person could be exempted or reduced.

Published : May 30, 2022

By : THE NATION

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https://www.nationthailand.com/business/40016097

Digital content created by 53 Thai companies fetched some THB690.65 million from foreign buyers in the latest fair organised by the Department of International Trade Promotion (DITP).

The department’s director-general, Phusit Ratanakul, said the DITP had recently organised the Bangkok International Digital Content Festival 2022 (BIDC 2022) with cooperation from eight private and state partners to help Thai digital content producers sell their products.

He said the fair successfully matched 46 leading global firms from 12 countries with the 53 Thai digital content makers.

The matchings led to 266 online negotiating partners and helped the Thai firms sell products worth THB690.65 million, Phusit added.

Animations accounted for THB412.9 million, digital characters for THB150 million, games THB103.9 million and e-learning courses THB23.6 million.

The foreign firms were mostly interested in Thailand’s animation outsourcing services, followed by game outsourcing service, game development and animation co-production, Phusit added.

It was the ninth time that the DITP had held the fair with cooperation from the Thai Game Software Industry Association, the ACM SIGGRAPH Bangkok Chapter, the Digital Content Association of Thailand, the E-Learning Association of Thailand, and the Thai Animation and Computer Graphics Association, Phusit said.

Three public organisations — Thailand Convention and Exhibition Bureau, the Digital Economy Promotion Agency and the Creative Economy Agency — supported the fair.

Phusit said the DITP and its partners wanted to promote digital content as one of key industries for steering the country’s economy in line with the government’s creative economy policy and plan to promote Thailand as digital content hub that will also become the country’s soft power.

Published : May 30, 2022

By : THE NATION

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https://www.nationthailand.com/business/40016087

The baht opened at 34.09 to the US dollar on Monday, strengthening from Friday’s close of 34.18.

The Thai currency is expected to move between 34 and 34.20 per dollar during the day and between 34 and 34.40 during the week, Krungthai market strategist Poon Panichpibool said.

The baht might rise in value past the support level of 34/dollar if the market continues to open to risks, he added. However, any rise would be limited as importers are waiting to buy the dollar at the support level.

Moreover, foreign investor inflows to Thailand may sluggish until new factors emerge.

Poon said that the dollar could face pressure if the market opens to more risk and the US Federal Reserve does not hasten to increase the interest rate. Meanwhile, the European Central Bank’s signal it will hike the interest rate could pressure the dollar as the euro is strengthening.

He said the currency market is highly volatile due to several factors, including the Russia-Ukraine conflict, the Covid-19 situation in China, and concern about the Fed’s financial direction.

He advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.

Published : May 30, 2022

By : THE NATION

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https://www.nationthailand.com/business/40016078

The price of Pepsi in shops is set to rise by up to 2 baht per bottle/can due to increasing packaging costs, the manufacturer said on Sunday.

The move will add to rising living costs that the Bangkok of Thailand blames for slowing economic activity. April saw inflation hit 4.7 per cent, breaching the central bank’s 1-3 per cent target for the fourth month in a row.

Suntory PepsiCo Beverage (Thailand) explained the decision to raise the price of Pepsi was made after the cost of plastic bottles and aluminium cans rose.

The price hike officially becomes effective from June 1 (Wednesday) but will hit shops in July.

The company said the price of a small Pepsi bottle or can will rise by 1 baht, from 10-15 baht to 11-16 baht per item. Meanwhile the retail price of a large bottle will go up by 2 baht, while the wholesale price will increase by 20-24 baht per pack.

The company said the price of its other soft-drink brands, including 7-Up and Mirinda, would remain the same.

It said it will offer discounts so retailers could maintain the price of Pepsi throughout June before the hike hits shops in July.

Published : May 29, 2022

By : THE NATION

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https://www.nationthailand.com/business/40016040

The Thai Chamber of Commerce (TCC) says new trade channels opened with China have helped solve an oversupply crisis by lifting Thai fruit exports to 60 per cent of capacity.

The export boon comes despite China’s “zero-Covid” policy, which saw Beijing temporarily suspend imports of Thai durian last month after traces of the virus were found in a shipment.

The TCC thanked the Foreign Ministry for persuading China to open more trade channels and the Commerce Ministry for tapping new overseas export markets to prevent oversupply of Thai fruit.

“This has resulted in over 200 billion baht of fruit exports so far this year,” said TCC vice chairman Pratya Samalapa, who also chairs the chamber’s committee on the eastern region, Thailand’s “fruit basket”.

He thanked the government for its efforts in tackling what he called the “fruit oversupply crisis”.

Along with agriculture, other economic sectors in eastern provinces seeing recovery include gems and jewellery manufacturing and tourism, Pratya added.

“We are confident that more foreign tourists will visit eastern provinces thanks to easing of travel arrangements, including the cancellation of the Thailand Pass next month,” he said.

The tourism revival would have a knock-on effect in other sectors and bring more jobs to the eastern region, he said.

Thailand’s cross-border and international border trade in April totalled 127.1 billion baht, down 10.8 per cent from the same period last year. China’s strict zero-Covid policy has been blamed for the drop.

Published : May 28, 2022

By : THE NATION

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https://www.nationthailand.com/business/40016025

Thailand’s exports grew almost 10 per cent in April, showing signs of a slowdown from the 13.7 per cent expansion in the first four months of the year.

The country’s export value totalled US$23.5 billion (THB799 billion) last month, a 9.9 per cent increase from the same period last year.

However, imports climbed to US$25.4 billion (THB863.6 billion), a 21.5 per cent growth, resulting in a trade deficit of $1.9 billion (THB64.6 billion), Commerce Minister Jurin Laksanawisit said on Friday.

Thai exports from January to April totalled $97.1 billion (THB3.30 trillion), a 13.7 per cent increase, while imports were recorded at $99.9 billion (THB3.39 trillion), growing as much as 19.2 per cent, a trade deficit of $2.8 billion (THB95.2 billion), according to the commerce minister.

Jurin, who also serves as deputy prime minister, said most export growth was seen in agricultural and industrial goods, including fresh farm produce and processed products, aluminium products, gems and jewellery, and electrical circuits.

Exports of agricultural products saw a growth of 10.8 per cent, with total value of $4.3 billion, while industrial goods had an 8.3 per cent expansion in exports totalling $17.9 billion.

The commerce minister expected rice exports to reach 7-8 million tonnes this year, surpassing the target of 6.1 million achieved last year.

Jurin attributed the increase in Thai exports partially to the weakening baht, in addition to other positive factors, including the country’s free trade agreements with many states that serve as new markets for Thai products.

The Thai currency traded above 34 a dollar on Friday, depreciating from the 33 range seen earlier this year.

Published : May 27, 2022

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https://www.nationthailand.com/business/40016019

China’s strict “zero Covid” policy has been blamed for a drop in Thailand’s cross-border and international border trade in April, which totalled 127.1 billion baht, down 10.8 per cent from the same period last year.

In April, Thai exports through cross-border trade and international trade across borders totalled 74.2 billion baht, down 15.7 per cent, while imports were recorded at 52.9 billion baht, down almost 3 per cent, Commerce Minister Jurin Laksanawisit said on Friday.

He said the decline resulted from reduced exports to Vietnam and also to China, which has frequently closed its border to inbound cargo as part of its “zero Covid” policy.

Jurin, who doubles as deputy prime minister, added that Thailand has responded by shifting its China exports from land transport to air and sea routes.

Thailand’s border trade with its four direct neighbours – Malaysia, Laos, Myanmar and Cambodia – totalled 81.5 billion baht in April, up by 12.3 per cent from a year earlier.

Exports were recorded at 47.5 billion baht and imports 33.9 billion, up 7.8 and 19 per cent, respectively.

Malaysia remained Thailand’s largest cross-border trade partner, with 13.7 billion baht in exports, followed by Cambodia (12.4 billion), and Laos (10.5 billion).

Thailand’s international trade across borders with China, Singapore, Vietnam and others totalled 45.6 billion baht in April, down 34.8 per cent. Exports were 26.7 billion baht and imports 18.9 billion, down by 39.2 and 27.2 per cent, respectively.

China remained the largest market for international trade across borders, with exports totalling 11.9 billion baht, down as much as 45 per cent.

Singapore was second with 4.2 billion baht of exports, up 5.9 per cent, followed by Vietnam with 3.2 billion baht, down 24.7 per cent.

Published : May 27, 2022

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40016013

Syn Mun Kong Insurance Plc (SMK) on Thursday confirmed it will continue to pay out on ordinary policy claims and is studying guidelines to compensate Covid-19 insurance policyholders as part of its business rehab plan.

SET-listed SMK made the announcement a day after reporting a loss of 29 billion baht in the first quarter, sending its share price plummeting by more than 23 per cent to 6.40 baht as of press time on Friday.

The company applied to the bankruptcy court seeking business rehabilitation on May 17, saying it was unable to honour about 30 billion baht in Covid-19 policy claims.

The court accepted the application, granting a stay on having to make further payouts until the rehab plan is in place. The date for hearings on the plan was set for August 15.

SMK Covid-policy holders voiced their frustration with the stay on payouts via Facebook and other platforms, demanding immediate compensation.

The company said in a statement on Thursday that it was in discussions with the Office of Insurance Commission (OIC) over how to take care of policyholders during the business rehab process.

It assured holders of SMK non-Covid policies that it would continue to honour their contracts.

SMK said it was seeking sources of funds from investors to pay compensation and/or turn debt into equity and/or amortisation.

However, the ability to pay compensation depended on the company’s future performance, it added.

SMK said its performance in non-Covid performance in the first quarter remained strong with a profit of 292.42 million baht, while it retained the support of Covid-19 insurance creditors, investors, and the OIC.

Published : May 27, 2022

By : THE NATION

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https://www.nationthailand.com/business/40015992

The baht opened at 34.20 to the US dollar on Friday, unchanged from Thursday’s closing rate.

The currency is expected to move in a range between 34.10 and 34.30 on Friday, 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.

However, any rise in the baht’s value would be limited by importers buying dollars at the end of the month.

US inflation data may also cause fluctuation in the currency market. The market is worried the US Federal Reserve might increase the interest rate to rein in inflation, causing the dollar to strengthen and placing downward pressure on the baht.

Poon forecast the baht could swing in a range of 34 to 34.40 until new market factors arise.

He advises businesses to use hedging tools such as options to manage risks in the highly volatile currency market.

Published : May 27, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40015983

The chairman of the Thai central bank’s board said on Thursday that the policy interest rate would have to rise from the current 0.5 per cent, but he could not tell how soon.

Porametee Vimolsiri, chairman of the Bank of Thailand’s board of directors, was speaking at the “New Chapter of Thai Economy” seminar held by Prachachart Turakij.

He said the policy rate, which has been kept at 0.5 per cent since May 20 2020, is likely to be increased. The Monetary Policy Committee will decide when to raise it.

He said the policy rate had been reduced to very low levels so it would have to rise.

Porametee told the seminar that the Thai economy is still being affected by external uncertainties, including the protracted Russia-Ukraine war and the decision by the United States to adjust its monetary policy.

Porametee said a country that still needs to achieve economic strength, like Thailand, needs to have a balance between economic stimulus measures and inflation control.

He said the economic recovery of the country is still uncertain and economic growth may be lower than the projection and the inflation rate may be higher than what is predicted.

He explained that although the BOT and the National Economic and Social Development Board expected some 5 million to 6 million foreign tourists to visit Thailand this year, it is yet to be seen whether the goal would be met.

Porametee said the post-Covid economy of Thailand would face five challenges.

First, the government would have few remaining fiscal mechanisms to help the economy because the public debt ratio has risen from 40 per cent to 58 per cent of GDP.

Since the government plans a deficit budget for fiscal 2023, the public debt ratio may rise to 67 per cent in 2026. He said the government should try to bring the public debt down to the 60 per cent level after the country’s economy has revived.

Porametee said the government’s main challenge is to earn more revenue and manage the restricted budget. The increase of the policy rate would have to be at the right time.

Second, the country’s economic inequality would widen and there could be more social conflicts. Porametee explained that the Covid-19 crisis has severely affected low-income people and SMEs, causing household debt to rise as well, severely affecting vulnerable groups. As a result, the economic disparity is likely to widen and become a cause for more social division.

Third, the quality of human resources has become lower. Porametee said the Covid-19 crisis had forced students to miss onsite classes for two years, thus affecting their skills and knowledge. He added that new graduates also find it harder to get jobs thus affecting their employment in the long run.

Fourth, the Thai economic growth is still lower than stable level. He said it would take years before foreign tourists would return to the pre-Covid level of 40 million a year.

He added that the growth of the manufacturing sector was also lower than what it should be.

The fifth challenge was a good point of the Covid crisis because it prompted the country to adopt new technologies faster.

The BOT chairman added that from now on, Thailand would face the issue of an ageing society and the government would also be required to implement the Zero Carbon policy to stay competitive.

Regarding the “New Chapter of Thai Economy”, Porametee said he would like to see more human security in Thai society and he would like the government to reallocate budget for new economies rather than focus on old economies.

Published : May 26, 2022

By : THE NATION