The Thai economy grew 4.6 per cent, year on year, in the second quarter.

The second-quarter growth rate was due to rising consumer spending and investment by the private sector, while the government’s investment and tourism business also continued to drive the country’s expansion in the period, he added.

The watchdog would also consider making the terms of payment of the licence upfront fee of these unsold spectrum lots more flexible in order to attract more bidders, NBTC secretary-general Takorn Tantasith said yesterday after the auction of nine lots of the 1800MHz spectrum.

Dtac TriNet (DTN), the subsidiary of Total Access Communication (DTAC), and Advanced Wireless Network (AWN), a subsidiary of Advanced Info Service (AIS), each bid for only one lot of the 1800MHz licence yesterday.

Both proposed the same final total price of Bt12.511 billion to grab the lot, each containing 2x5MHz bandwidth. They were the only two bidders at this auction.

Earlier, the NBTC had planned to auction 5MHz of the 900MHz licence on Saturday but no bidder submitted any application. This prompted the auction to be aborted.

Takorn added that the NBTC office would make reports on how to deal with the unsold spectrum lots.

He said one option was for the NBTC to not reduce the starting bid price of the 1800MHz but to extend the annual upfront fee instalment payment period from five to six years, instead of the three years in yesterday’s auction rules.

Likewise, the NBTC will not reduce the starting bid price of the 900MHz licence but will extend the upfront payment period to eight years, instead of the four years stipulated in the rules of the aborted auction.

The auction yesterday was concluded in around one hour and 15 minutes, after beginning at 10am at the NBTC headquarters on Phaholyothin Road. The bidders raised the price only once.

In the first round of bidding, each of them selected only one spectrum lot against the right to bid for a maximum of four lots. This round confirmed the starting bid price of Bt12.486 billion as required by the auction rules.

In the second round, each of the bidders raised the price of the selected lot to a total of Bt12.511 billion. According to the auction rules, they can raise the price by Bt25 million per round.

In the third and final round, they declined to further raise the price.

DTN selected the 1745MHz-1750MHz paired with 1840MHz-1845MHz.

AWN selected 1740MHz-1745MHz paired with 1835MHz-1840MHz.

In line with advice

AIS chief executive officer Somchai Lertsutiwong said after the bidding that the AWN bidding result was in line with the bid consultant’s advice.

A telecom analyst said that AWN’s existing 1800MHz bandwidth and this newly acquired bandwidth would mean it would have contiguous 2x20MHz bandwidth of the 1800MHz, which will enhance AWN’s 4G network speed and capacity and ensure sufficient spectrum bandwidth for next few years.

As a result of yesterday’s bidding, AWN will have the biggest bandwidth under the NBTC licensing regime, totalling 45MHz.

Currently AWN holds licences to operate the 15MHz bandwidth of the 2.1GHz, 10MHz bandwidth of the 900MHz, and 15MHz bandwidth of the 1800MHz. It will also gain an additional 5MHz of the 1800MHz it won yesterday.

AWN has also roamed some of its subscribers with 15MHz of the TOT’s 2.1GHz under the partnership deal.

When asked if it was enough for DTAC to grab only 5MHz of the 1800MHz, DTAC’s chief corporate affairs and business development officer Rajiv Bawa said that it was enough for now.

As a result of the bidding, DTAC will have a total of 20MHz bandwidth under the NBTC licensing regime. Currently DTAC holds only the licence to operate 15MHz bandwidth of the 2.1GHz.

It recently partnered with TOT to provide wireless service on the state agency’s 60MHz bandwidth of the 2.3GH band.

The 1800MHz band in auction yesterday belonged to CAT Telecom. The state agency has granted the concession to DTAC to operate this 1800MHz band and a 850MHz band. The concession will expire on September 15.

DTAC’s chief executive officer Lars Norling said: “Acquiring the 1800MHz spectrum will not only allow DTAC to maintain the 2G service for a large base of customers but will also provide 4G network capacity to serve the massive growth of data usage.”

The NBTC will convene to officially approve the bid results within the next seven days.

Takorn said that he was satisfied with the bid outcome.

True Corp declined to take part in the bidding, saying it currently had sufficient bandwidth.

True holds a total of 40MHz bandwidth under NBTC licences. It holds licences to operate 15MHz bandwidth of the 2.1GHz, 15MHz bandwidth of the 1800MHz, and 10MHz bandwidth of a 900MHz. The group has partnered with CAT to provide wireless service on the state agency’s 15MHz bandwidth of 850MHz.

Bureau of Foreign Trade (MOEA), Taiwan External Trade Development Council, Thai-Taiwan Business Association and Thailand Convention and Exhibition Bureau (TCEB) are launching Taiwan Expo 2018 under the theme “Let’s Tie Together” to present smart living technology, arts and culture exchanges as well as to promote trade cooperation between Thailand and Taiwan.

The event will be held from August 30 to September 1 at Event Hall 99, Bangkok International Trade and Exhibition Centre (Bitec), Bang Na, Bangkok.

Felix Chiu, executive director of Industry Marketing Department, Taiwan External Trade Development Council (TAITRA), said: “We aim to strengthen relations between Taiwan and Asean. In particular, Thailand has a good relationship with Taiwan and it has a huge potential for business and consumer exposure to new technology and innovation.

“You will find products with technology and innovation to help make your everyday living more convenient. Taiwan in a new perspective is presented through seven highlights showcasing the smart city, green tech, health care, culture, talent and tourism, agricultural tech and good living from 210 exhibitors. Visitors also have the chance to get a souvenir and win two roundtrip tickets from Bangkok to Taipei from the event,” said Felix Shu-Tien Liu, president of Thai-Taiwan Business Association.

“Taiwan Expo 2018 will be a bridge between Thai and Taiwanese investors to exchange views on business and trade opportunities through matchmaking and industry forums. For more information and registration, visit our website,” he said.

The rupee hit a fresh record low of 70.32 against the US dollar in early trade on Thursday. This is Indian currency’s sharpest fall ever amid worries that Turkey’s growing financial crisis could spread to other Asian economies as well.

Financial analysts believe that if the US’s protectionist measures against countries such as China and Turkey, persist, the rupee may fall further against the dollar.

However the Indian government seems still optimistic.

India’s Economic Affairs Secretary Subhash Chander Garg told reporters in Delhi that there was “nothing at this stage to worry” about after the rupee reached 70.1 to the dollar earlier in the day. He said the dip resulted from “external factors.” He said the country had sufficient foreign exchange reserves to weather the downturn.

The economic conditions in India are relatively stable with India having $409 billion in foreign exchange reserves. However the rupee’s performance against the dollar in tandem with rising oil prices will increase India’s import bill, according to strategic forecasting firm, Stratfor.

Since India imports about 80% of its oil needs, it needs to spend more dollars to procure oil. [This will] lead to debt outflows and compel the Reserve Bank to embark on its own phase of monetary tightening while Prime Minister Narendra Modi’s populist spending in support of his 2019 re-election bid is expanding the country’s fiscal deficit.”

The falling value of currency, lack of jobs and low foreign investment is a bad news for Prime Minister Modi who is all set to start campaigning for the 2019 general elections. However, fall of Indian rupee is good news for some Indian exporters such as software companies. They stand to benefit from a weak rupee as they get more rupees while converting their dollar export earnings into Indian currency.

The consensus opinion is that the effects in Thailand will likely be short term, with a limited risk of contagion from Turkey’s troubles.

However, volatility in the short-term for the currency and stock markets in emerging markets is unavoidable as Ankara seeks to stabilise the Turkish lira, said Siam Commercial Bank’s Economic Intelligence Centre (EIC).

Phacharaphot Nuntramas, senior vice president of Krungthai Bank, believed the ructions in the Turkish market will not have a contagious effect, as seen in the 1997 Asian financial crisis, due to Turkey’s limited linkages with other countries.

Phacharaphot expects fluctuations in the Thai bourse and the baht will not persist over a longer time range.

After being in the red since the Turkish currency crisis roiled markets, the Stock Exchange of Thailand (SET) Index yesterday inched up 4.67 points, or 0.28 per cent, to close at 1,680.96. Trading turnover was Bt57.76 billion.

The upheavals in the Turkish market are expected to generate only a limited impact on Thailand due to the low volume of Thai exports to the country and the robust economic fundamentals of the Thai economy, the EIC noted.

In 2017, exports to Turkey accounted for 0.5 per cent of total Thai shipments.

Thailand, with the second-largest economy in Southeast Asia, has a current account surplus of 11 per cent of its gross domestic product (GDP). The ratio of the country’s foreign reserves to its short-term debts is 3.42 times. Holdings of foreign currencies amounted to US$206.95 billion, or 43.52 per cent of the GDP, in March.

Still, Phacharaphot said that sales to Turkey of Thai products such as electrical appliances – air conditioners and refrigerators and the like – should be monitored.

Phacharaphot cautioned that Indonesia’s economic problems – including its deficits in the current account and trade deficit – would be more of a concern.

If Indonesia increased its tariffs on 500 consumer goods, trade and planned foreign direct investment in the Asean region would be affected and a regional trade conflict could ensue, he said.

AEC Securities (AECS) forecasts the SET Index to move with high volatility in a range of 1,675 to 1,715 points, with bouts of profit taking, in mid- August. It urges investors to keep a close watch on the plunge in the Turkish lira and for the impact from the US plan to double import taxes on Turkish steel and aluminium.

Technically, it would be possible for the SET Index to make a correction with a support line of 1,680-1,660 points, it said.

Yesterday, other Asian stock markets were still in red. This was still the case for Hong Kong stocks despite news of fresh US-China trade talks, Agence France-Presse reported.

The Hang Seng Index dropped 0.82 per cent, or 223.53 points, to close at 27,100.06. The gauge tracked losses on Wall Street,

In mainland China, the benchmark Shanghai Composite Index lost 0.66 percent, or 18.07 points, to finish at 2,705.19. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, ended down 0.99 per cent, or 14.7 points, at 1,467.12.

Tokyo’s benchmark stock index closed flat yesterday, trimming early losses after the news that China and the US would hold trade talks.

The Nikkei 225 Index, which dropped 1.2 per cent in early trade, shed 0.05 per cent, or 12.18 points, to finish at 22,192.04. The broader Topix Index lost 0.64 per cent, or 10.88 points, to settle at 1,687.15.

In global markets on Wednesday, stocks fell as investors fled riskier assets amid the renewed worries over Turkey.

In Ankara, the government said it was raising tariffs on imports of several key US products in retaliation for American sanctions, as the bitter dispute between the two allies that has battered the Turkish lira showed no sign of ending.

The US dollar was trading at 110.81 yen, up from 110.73 yen in New York on Wednesday afternoon.

At the level of individual stocks, companies involved in the computer games sector extended declines after China’s regulators reportedly froze approvals of games licences amid a government shake-up.

In the sell-down on Wall Street on Wednesday, technology and energy shares were among the biggest losers on worries about Turkey and the Chinese growth concerns, AFP reported.

The Dow Jones Industrial Average dropped 0.5 per cent to end at 25,162.41 points.

Jack Ablin, of Cresset Wealth Advisors, said the switch from stocks to “safe” assets like the dollar and yen suggested a general risk aversion among investors.

Shawn Cruz, manager of trader strategy, TD Ameritrade, said the greenback was further boosted by strong US retail sales data, which dragged on the shares of US exporters.

The government’s accelerated spending in the country’s infrastructure is also a growth driver, the centre said.

PRIME MINISTER General Prayut Chan-o-cha has urged policymakers and entrepreneurs in Southeast Asia to develop and nurture a digital trade ecosystem as information technology in the region takes off.

Delivering the keynote speech on the topic of “CLMVT Taking-Off Through Technology”, Prayut praised the region’s status as a popular destination for investment and trade. He pointed to the “Look East” policy of the western world and India, along with the “Look South” approach of China, Japan and South Korea.

The immediate challenge for the CLMVT (Cambodia, Laos, Myanmar, Vietnam and Thailand) countries, said Prayut, was to figure out how to utilise new technologies to further share prosperity among the people.

Prayut was addressing the CLMVT Forum 2018 hosted by Thailand’s Ministry of Commerce.

He said that from now on, capacity building for entrepreneurial development must focus on preparation for the new economy and should be provided to all CLMVT entrepreneurs. “A region-wide digital trade ecosystem for CLMVT should be developed and nurtured. This includes the region’s own e-commerce platforms, efficient cross-border transport and logistics, payment systems as well as common standards and interoperability,” he said.

Commerce Minister Sontirat Somtijirawong pointed to the region’s high rate of economic growth and adoption of information technology. The average GDP growth rate of the five countries was 6.28 per cent last year, he said, and there were an estimated 150 million Internet users or 61 per cent of the total population. There were about 120.5 million Facebook accounts in the region. As well, online shopping has been growing rapidly, with Thailand and Vietnam together boasting about 47 million online shoppers, said Sontirat. Each shopper spent $109 (Bt3,620) last year via e-commerce channels, a 10-14 per cent increase from 2016. Online purchases reached $5.1 billion, up 20-22 per cent up from the previous year.

Asked what actions policymakers in the five countries would together pursue to promote a digital economy, Sontirat said the Commerce Ministry will gather information from the two-day forum for future consideration.

Meanwhile, a Myanmar business executive said his country was facing challenges to improve infrastructure and in educating both merchants and consumers about the digital economy.

Htay Aung, the chief executive officer of Aung Chaw Trading Co and Myanmar’s former Hotel and Tourism minister, said his country faced a challenge to improve infrastructure as logistics costs remained high. The government also needed to reform regulations to meet international benchmarks. Moreover the Myanmar government needed to educate both merchants and consumers about e-commerce, said Htay Aung.

Mara Warwick, World Bank country director for Brunei, Malaysia, the Philippines and Thailand, said the challenge of digital technologies was how to make sure everyone benefited from them. She said policymakers should focus on three pillars – inclusion, efficiency and innovation.

Warwick warned that digital technologies could lead to market concentration, so policymakers must ensure there was both competition and transparency in the market. Children should be educated to love lifelong learning, which would help them catch up with fast-changing technology. Also, the development of emotional skills continued to increase in importance for children in the digital economy and would help them to get jobs later, she said.

Several Thai start-ups have opened booths at the forum. Among them is Builkone, which provides software application services for construction material suppliers and contractors. Thitikorn Chanson, who is in charge of business development at Builkone, said the company had expanded its business to Myanmar and Laos and looked forward to expanding to other Asean countries.