The changes will take place on October 1, 2018.

According to a resolution at yesterday’s Cabinet meeting, Kulit Sombatsiri is being promoted to Energy Ministry permanent secretary from his current post as the Custom Department’s director-general.

The Excise Department’s director-general Kritsada Jinavijarana is being promoted to replace Kulit at the Customs Department. The Treasury Department’s director-general Pajara Anantasilpa will replace Kritsada at the Excise Department.

Amnuay Preemonwong, the deputy director-general of the Finance Ministry, is tipped to become the Treasury Department’s director-general.

The new appointments will take effect on October 1.

Another change affects the Energy Ministry’s permanent secretary Thammayot Srichuai, who said this would be the third time that he has moved from executive management in the Finance Ministry to the Energy Ministry. The change would not affect the management of the Energy Ministry because the ministry has a system to accommodate a smooth transfer of officials, he said.

“Meanwhile, we will do everything to follow the Energy Minister’s policy,” he said.

He said that Kulit also has experience in the energy industry from a period working at PTT Exploration and Production Plc.

The Cabinet also yesterday approved a plan by the Bangkok Mass Transit Authority to apply for a new loan of Bt15.37 billion to pay back existing loans worth Bt19.01 billion that come due in October 2018 and September 30, 2019.

Nattaporn Jatusripitak, minister adviser to Prime Minister’s office, said the new loan would serve the Transport Ministry’s purposes.

He said that the Bangkok Mass Transit Authority is revising its financial results for 2018-19 as the agency does not have income enough to pay back the Bt19.01 billion in borrowings. The agency’s accounts thus required the new Bt15.37 billion loan.

The transit authority estimates its financial results for fiscal 2018-19 (October 1, 2018-September 30, 2019) will show a net loss of Bt24.59 billion. The agency forecasts its total revenue will be about Bt6.68 billion and a expansion of about Bt31.27 billion is targeted.

On December 31, 2017, the transit authority had a total debt of Bt107.86 billion. The agency is undergoing a restructuring, Nattaporn said.

The move would boost confidence of bank clients as it currently takes up to three days for the refund, he said.

He added that for transfer system error occuring in the same bank, with the sender’s and receiver’s accounts in one bank, the amount will be returned to the sender on the same day of the transaction error.

The figures were released on Tuesday by the National Broadcasting and Telecommunications Commission.

The economy could be in deep trouble, if the exchange rate continues to appreciate against the US dollar, said U Myint, who served as the chief presidential economic adviser in the previous government

On Sunday, the market rate set one US dollar at 1,462 kyats, 120 kyats higher than the currency was trading in July.

“When earnings from exports in local currency are no longer able to cover the costs of production, huge losses are incurred and enterprises have to close down,” U Myint told a public forum.

“When enterprises close down, workers lose jobs, farmers and fishermen cannot sell their products. When they cannot sell their products this year, they will not produce them next year. The economic, social and political consequences of this chain of events can be serious.”

He foresees a decline in the manufacturing and agricultural sectors if the government cannot exert some control over the volatility in foreign exchange.

“Import-substituting industries will suffer because they have to compete with cheaper imports coming into the domestic market,” he said.

According to the economist, a sharp rise in the exchange rate reduces the competitiveness of manufactured and agricultural exports as well as export earnings. As production costs of local manufacturers, including wages and raw materials, have to be met in local currency, Kyat appreciation will lead to a large fall in the earnings of the enterprises.

He considers that the rise in the exchange rate is associated with the so-called Dutch disease, which can turn agriculture and manufacturing into lagging sectors

“With exports in decline and with resources moving away from us, it can cause serious harm to a developing country. There are indications that Myanmar may be suffering from this [Dutch] disease,” he said.

U Myint called for timely action to address the problem by utilising more effective tax collection systems.

“With no proper accounting system for business firms and rampant corruption, the normal way to collect commercial and income tax was impractical,” he said.

“Once normalcy is restored in the exchange market, tax reforms can be carried out so that businesses are appropriately taxed through the normal tax system.”

He wants the authorities to increase transaction demand for dollars by liberalising licensing requirements in trade to bring down the exchange rate. He urges the government to build up its exchange reserves by buying dollars in the domestic market.

He also suggests reducing high interest rates “slowly and cautiously” because an abrupt, big change may lead to large cash withdrawals from banks, resulting in a banking crisis.

He also advises that the government seek technical assistance from the International Monetary Fund (IMF), which is experienced in addressing complex technical issues caused by exchange rate volatility. He urges the government’s cooperation with the IMF to resolve the problem of the kyat’s appreciation against many foreign currencies.

“With large foreign exchange inflows causing exchange rate appreciation, it may be prudent to reduce the frequency of holding gem and jade emporiums,” he said.

In currency and financial crises, rumours, lack of information and deliberate dissemination of misinformation create an atmosphere of confusion and uncertainty in which speculators thrive. It will therefore be helpful if some key macroeconomic data are officially released and published regularly, he added.

These include data relating to inflation, foreign exchange reserves, the balance of payments, the national budget, money supply, growth rate, results of household income and expenditures surveys, foreign direct investment inflows, and foreign trade statistics.

At the event, U Myint stressed the importance of two things essential to reform Myanmar’s exchange rate system: multiple exchange rates should be unified and restrictions removed on the current account transactions of the country’s balance of payments.

He said the central bank should set its reference dollar exchange rate closer to the market rate, by allowing it to have access to 57 per cent of export earnings of the public sector.

“Setting the reference rate, say, at 1,200 kyat per dollar may be a good start to achieve this objective,” U Myint said.

He said Maharashtra produces millions of tonnes of milk but there is inadequate processing in the dairy sector.

Maharashtra has diverse climatic conditions favourable for producing a large variety of crops.

“Farmers in Maharashtra are growing high-quality crops supported by substantial research and development. We look for Thailand’s partnership in secondary treatment of these foods, which include preservation, processing, packaging and export,” he said.

Desai said he also expects Thailand’s support for value addition in the textile sector. Maharashtra has set up a dedicated textile park and nine more are in the process of being developed.

“My dream is to see a majority of garments in the world market to be labelled as ‘Made in India’ products.”

He said Maharashtra accounts for 15 per cent of India’s GDP, more than 40 per cent of exports and attracted 50 per cent of India’s total foreign direct investment last year. This proves Maharashtra is the most investment-friendly state in India, he said.

Speaking about government support to SMEs, the minister added: “Maharashtra has a special policy for SMEs and the government supports SMEs in land allotment, licensing, reservation and procurement so that they do not have to compete with large enterprises.”

During the event, Dr Wimonkarn Kosumas, deputy director general of Thai SME promotion, told the event: “There is tremendous potential to enhance the partnership between Thailand and Maharashtra. The OSMEP [Office of Small and Medium Enterprises Promotion] has set up a dedicated desk to promote SME collaboration with Italy and Japan.

“We can set up similar dedicated desk for Maharashtra as well.”

Kosumas invited SMEs from Maharashtra to trade events in Thailand such as Propak Asia on June 12-15, Food Pack Asia 2019.

Thailand’s growing consumer market and overall investment climate are driving the expansion plans.

The HSBC-commissioned report by the Singapore Business Federation sought the insights of 1,036 Singapore-based companies on their interest in overseas expansion. Around 86 per cent of those surveyed were considered small- or medium-sized enterprises (SMEs), defined as those with an annual turnover of S$100million or fewer than 200 staff.

Thailand is a popular destination for internationally oriented Singapore-based companies expecting to expand.

Of the surveyed companies, 80 per cent said they already had operations in Thailand, the highest except for Malaysia at 87 per cent and Indonesia 81 per cent, and 29 per cent expect to further expand there in the next two years, behind only Indonesia, Malaysia and Vietnam.

Increased trade and investment from Singapore is good news for Thailand given Singapore is already Thailand’s third largest source of investment behind China and Japan.

In 2017, Singapore invested US$4.3 billion into Thailand compared to $9.5 billion from Japan and $7.4 billion from China, according to the Bank of Thailand.

Singapore’s inbound investment into Thailand includes companies founded in the city-state as well as many international firms. Of the 37,400 international companies in Singapore, 7,000 are multinationals and 60 per cent have regional responsibilities.

Krisda Phatcharoen, head of commercial banking at HSBC Thailand, said: “Whilst Thailand’s growing consumer base is already well recognised by Singapore corporates, the report shows that many businesses are looking to double down on our demographic dividend.

“Beyond the consumer piece, Thailand’s manufacturing – whilst already strong – is now entering into the higher-end space. So while many corporates may base their treasury and other back-office functions in Singapore, a lot of revenue-making operations are being driven out of Thailand. This is only expected to ramp up with Thailand’s widening along the supply and value chain.”

Chairman Krisada Chinavicharana said on Friday that over the past decade, the DPA has been fully aware of the fact that depositor confidence lays the foundations for its success.

As a result, the DPA has continually made significant progress in key developments.

These include the reform of the laws pertaining to DPA providing compensation to each depositor in 30 days without the need for the depositor filing an application requesting compensation. Other key changes include the development of a depositors’ database and systems for providing compensation to depositors.

Krisada said: “The second decade will bring about a mission to tackle real challenges because the period marks a fundamental transformation in currency and the economic system that’s becoming more reliant on digital data.

“These issues are of grave concern in the Thai financial system as well as the general public. They would do well to prepare for technological change, especially the changing financial sector that will have repercussions the world over.

“So building depositor confidence in using the services of financial institutions is a mission that the DPA is committed to in an attempt to bring stability to the systems of Thai financial institutions,” he said.