Two varieties of Thai rice get GI tags in Indonesia, boosting export potential
FRIDAY, JANUARY 20, 2023
Indonesia has listed two varieties of Thai rice as Geographical Indications (GI), Thailand’s Commerce Ministry said on Friday.
The GI listing of Sangyod Muang Phatthalung rice and Thung Kula Rong Hai jasmine rice by Indonesia’s Law and Human Rights Ministry is expected to help boost Thai exports and farmers’ revenue, Deputy Commerce Minister Sinit Lertkrai said. He added that Thai GI products were considered the country’s soft power.
The Department of Intellectual Property (DIP) is working on listing more Thai GI products overseas in a bid to gain intellectual property protection, especially for agricultural products, he said.
He added that Thai GI products had been listed in more than 30 countries, including India, Indonesia, Cambodia and Vietnam.
Thai GI products include Doi Chaang coffee, Isan indigenous Thai silk yarn, Lamphun Yok Dok silk, Phetchabun sweet tamarind and golden dried longan, he explained.
Meanwhile, DIP director-general Wuttikrai Leeveeraphan said Thailand produced more than 8,000 tonnes of Sangyod Muang Phatthalung rice annually, generating more than 104 million baht in revenue for farmers.
The provinces of Roi Et, Surin, Sisaket, Maha Sarakham and Yasothon produced more than 24,500 tonnes of Thung Kula Rong Hai jasmine rice annually, generating more than 266 million baht in revenue for farmers, he added.
Thailand’s deposit protection system will apply to virtual banks, agency says
THURSDAY, JANUARY 19, 2023
Nongluck Ajanapanya
Thailand’s Deposit Protection Agency (DPA) is fully prepared to support virtual banking with advanced systems and processes that will protect all Thai depositors, it announced on Thursday.
The commitment is part of the agency’s five-year plan to improve deposit protection unveiled on Thursday.
DPA president Songpol Chevapanyaroj said the plan was the fourth phase of the agency’s 2023 to 2027 roadmap, which focuses on improving the efficiency of its deposit protection system.
In particular, enhancements are being made to deposit reimbursement and liquidation. The reimbursement process currently takes about 30 days, but the agency’s goal is to complete the process in seven days, Songpol said.
The DPA will prepare tools and regulations to work with licensed virtual banking providers once the Bank of Thailand gives them the green light later this year, Songpol said.
“Our deposit protection regulations will apply to virtual banks,” he said.
Depositors will now be protected up to the legal maximum of 1 million baht per depositor per bank, according to the DPA.
If a financial institution’s license is revoked due to a financial crisis, the depositor reimbursement process must be quick and simple, use modern channels, and comply with all applicable laws and regulations, the agency said.
The DPA announcement came just a few days after the Bank of Thailand unveiled its virtual bank licensing framework, which will allow virtual banks to operate as financial service providers.
The central bank anticipates that Thailand’s first virtual banks will begin operating in 2025, and that they will improve the banking sector’s competitiveness and accessibility.
“DPA is prepared to support Thailand’s virtual bank ecosystem. It is another step in our financial innovation to serve the digital economy’s future,” Songpol said. “Virtual banks will help people in rural areas access legal deposit and loan services while also lowering costs for customers and businesses.”
DPA said its roadmap has four key strategies to support its vision of being a dependable, trustworthy and modern deposit protection organisation. All four strategies will ensure its systems, tools, regulations, governance, communication, and relationships provide assurance to Thai depositors.
“We have adapted our strategic and operational direction to ensure that we are up to date with the latest financial innovations and new forms of financial services, such as the upcoming virtual banks, which will soon emerge in Thailand due to the growth of digital technology and changing consumer behaviour,” Songpol said.
The main challenge the agency faces is collaborating with the 32 traditional domestic and international banks operating in Thailand, as well as non-bank financial service providers, in order to share and develop data analytics, agency officials said.
The goal is to analyse deposit data to ensure the financial system’s stability, they said.
The agency will continue its efforts to increase public and depositor confidence in its protection system, Songpol said.
Deposits are expected to rise this year as expected interest-rate hikes make bank deposits more attractive, according to a DPA report.
The number of protected depositors is expected to rise to 89.66 million, a 3.83 million increase from 2021, representing a 4.46% increase, the report says.
The total amount of deposits protected during the first 10 months of 2022 was 16.12 trillion baht, representing a 3.36% increase over the same period in 2021.
Individuals with deposits of less than one million baht account for the vast majority of all depositors.
Currently, 98.01% (87.88 million) of all depositors are fully protected.
The Deposit Protection Fund has 137 billion baht ready to be used to protect depositors, the DPA report said.
Thai SEC rules crypto exchanges must adopt digital wallets to tighten security
WEDNESDAY, JANUARY 18, 2023
The Securities and Exchange Commission (SEC) has issued new regulations requiring digital asset custodians to establish a digital wallet management system, including key, to ensure security of customers’ assets.
The SEC defines a “key” as a cryptographic key or any other data that must be kept confidential and used for approval of transfers or transactions related to digital wallets.
The new regulations cover the following three requirements:
1. Policy and guidelines for overseeing risk management and management of digital wallets and keys as well as communication to clarify such policy, action plans and procedures, work supervision and internal control to ensure compliance with the policy.
2. Policy and procedures for designing, developing and managing digital wallets as well as creating, maintaining and accessing keys or other related information appropriately, securely and safely.
3. Contingency plan in case of events that may affect the management system of digital wallets and keys. This includes laying out and testing action procedures, designating responsible persons and reporting the event. An audit of system security as well as digital forensic investigation are also required in case the event affects security of systems and clients’ assets.
The new regulations took effect on Monday (January 16). Operators are required to comply with the regulations within six months.
SEC issues rules on management of digital wallets for custody of digital assets and keys
TUESDAY, JANUARY 17, 2023
The Securities and Exchange Commission (SEC) has issued regulations requiring digital asset business operators that provide custody of clients’ digital assets to establish a digital wallet management system to accommodate efficient custody of digital assets and keys* and ensure the safety of clients’ assets.
The regulations cover the following requirements:
(1) Policy and guidelines for overseeing risk management and management of digital wallets and keys as well as communication to clarify such policy, action plans and procedures, work supervision and internal control to ensure compliance with the policy;
(2) Policy and procedures for designing, developing and managing digital wallets as well as creating, maintaining and accessing keys or other related information appropriately, securely and safely;
(3) Contingency plan in case of the occurrence of any event that may affect the management system of digital wallets and keys. This includes laying out and testing action procedures, designating responsible persons and reporting the event. An audit of system security is also required as well as a digital forensic investigation in case of any event affecting the security of systems related to digital asset custody, which could cause significant impacts on clients’ assets.
The regulations have taken effect since 16 January 2023. Pursuant to the transitional provisions, digital asset business operators who had provided custody of clients’ assets prior to the effective date of the regulations are required to fully comply within six months from the effective date.
Remark:
* Key means a cryptographic key or any other data that must be kept confidential in order to be used for approval of transfers or transactions related to digital assets in digital wallets.
Thai lawmakers endorse study on legalising casinos
FRIDAY, JANUARY 13, 2023
Thailand’s lower House endorsed a feasibility study on legalising casinos on Thursday, as the country seeks tax and tourism revenue to boost economic recovery from Covid-19.
The study report was produced by a special House committee and will now be sent to Cabinet for consideration.
Lawmakers debated the report – which covers revenue/tax collection and measures to combat illegal gambling dens – for about two hours on Thursday.
Several MPs asked the committee to beef up the report with measures to combat illegal online gambling and money laundering.
The committee plans to ask the government to legalise casinos in five regions, aiming to increase state income from tax while suppressing illegal gambling dens.
The five locations targeted for legal casinos are:
– North: Chiang Rai or Chiang Mai
– East: Pattaya
– South: Phuket, Phang-nga or Krabi
– Northeast: Ubon Ratchathani, Udon Thani or Khon Kaen
– Greater Bangkok.
Legalisation will be trialled with five casinos nationwide, featuring both traditional and international gambling games as well as gambling via online channels, said the committee’s vice president Phichet Cheumuangphan.
Entry to Thai casinos will reportedly be restricted to wealthy Thais and foreigners.
Underground gambling is endemic in Thailand, with billions of baht estimated to be flowing through illegal dens and websites every year.
Thai gamblers also flock to border casinos in neighbouring countries such as Cambodia, Laos and Singapore, which act as a magnet for foreign tourists.
Thai hotels waiting to see if THB300 tourist fee hits bookings
THURSDAY, JANUARY 12, 2023
Thai tourism operators are waiting anxiously to see whether the 300-baht (US$9) fee collected from tourists from June will hit bookings.
Tourism Minister Phiphat Ratchakitprakarn announced the tourism fee on Wednesday, saying the money collected would fund accident insurance for visitors and development of tourist attractions.
The 300-baht fee, known as the “Kha Yeap Pan Din” (landing fee), will be collected from all foreign visitors who enter the country by land, water or air. It is expected to be integrated into the cost of travel tickets.
The fee will not be collected from foreigners with Thai work permits and border passes, Phiphat said.
The tourism fee, which has been repeatedly postponed over fears it would deter people from visiting Thailand, will be put to the Cabinet for approval in February. It will reportedly fund tourists’ accident coverage of 1 million baht and medical cover of 500,000 baht. The government spent about 300-400 million baht per year treating injured foreign tourists before the pandemic.
Phiphat Ratchakitprakarn
Thailand expects to see 25 million visitors and at least 2.38 trillion baht in tourism revenue this year, Phiphat said.
However, this is still a long way short of the 40 million tourists who visited the country in 2019, when tourism accounted for about 20% of Thailand’s GDP.
That fragile recovery will be tested further from June by the new tourism fee, with both the government and private sector watching closely to see its effect.
The Finance Ministry is considering whether to extend the excise tax cut of 5 baht per litre of diesel, which is due to expire on January 20. The tax cut was originally imposed last year to suppress soaring pump prices during the fuel crisis, which has now eased. However, the ministry said it was still monitoring the price of fuel in the world market closely.
“Even though the global fuel price has dropped, we have to look at the Singapore market diesel price,” said Finance Minister Arkhom Termpittayapaisith.
He added that the public debt management policy committee, which he chairs, has approved increasing the Oil Fuel Fund’s loan guarantee limit to 110 billion baht, which will be put to Cabinet. He said the move would raise the ratio of public debt to GDP this year from 60.43% to 61.42%, well below the ministry’s fiscal limit of 70%.
Arkhom said it would not be necessary to lift the loan limit to the maximum 150-billion-baht set by Cabinet resolution as the global fuel price crisis is easing and the Oil Fuel Fund is now able to generate revenue.
He added that this year’s budget deficit will remain at 695 billion baht or 3.7% of GDP amid economic recovery and the Finance Ministry’s plans to generate revenue.
Fiscal Policy Office director-general Pornchai Thiraveja said the government generated net revenue of 424.73 billion baht in the first two months of fiscal year 2023 (October to November 2022), exceeding its target by 55.41 billion baht.
EV committee meeting this month to consider incentives for battery-makers
TUESDAY, JANUARY 10, 2023
The National Electric Vehicle Policy Committee will meet on January 23 to discuss measures to support manufacturers of batteries for electric vehicles (EVs) in a bid to further accelerate EV adoption in Thailand, the the Industry Ministry said on Tuesday.
The measures that have been proposed by the Excise Department include subsidies for battery raw materials, modular battery in which the deteriorated parts can be replaced, and battery pack that is installed under the vehicle’s chassis.
The amount of subsidy will depend on the wattage capacity and type of batteries, said Natthapol Rangsitpol, the ministry’s permanent secretary.
He added that after the measures were approved by the committee, Energy Minister Supattanapong Punmeechaow, who chairs the EV board, will propose the move for Cabinet approval the following day, so that the measures can be announced as soon as possible.
Domestic battery manufacturers have been waiting for government subsidies since early 2022, but the committee has prioritised approving subsidies for EV manufacturers in a bid to attract vehicle buyers, Natthapol pointed out.
In March last year, the Cabinet approved the reduction of import duties for EV up to 150,000 baht on condition that the EV makers must also make them in Thailand later. The measure has resulted in a spike in new EV registrations at over 29,400 vehicles by the end of November 2022 due to lower prices.
Natthapol added that in the next phase the committee would study the possibility of reducing the tax structure of EV battery, which currently has a flat 8% rate.
“The move aims to reduce battery tax to as low as 1% for manufacturers who have implemented recycling technology in their batteries to minimise environmental impact,” he said. “Since the government aims to have up to 700,000 battery-powered EVs on Thai streets by 2030, Thailand will have hundreds of thousands of battery e-waste to deal with in the future.”
Cabinet gives the nod to 3.35 trillion baht budget for next fiscal year
TUESDAY, JANUARY 10, 2023
The Cabinet on Tuesday approved a budget of 3.35 trillion baht for fiscal year 2024, with a deficit of 593 billion baht.
The 2024 allocations are 165 billion baht higher than the previous year’s budget, but the deficit is lower by 102 billion baht.
“The government expenditure for the next fiscal year was proposed by the Budget Bureau,” a source from the government said.
The source added that Prime Minister Prayut Chan-o-cha would deliver his policy initiatives on expenditure to government agency executives this week.
According to four state economic agencies – the Budget Bureau, the National Economic and Social Development Council, the Bank of Thailand and the Finance Ministry – the government is expected to generate net revenue of 2.75 trillion baht in fiscal year 2024, up 10.7% compared to fiscal year 2023.
The four agencies expect inflation in fiscal year 2024 to be in the range of 1% to 2%, and the ratio of public debt to gross domestic product at 61.35%.
Also on the agenda for the Tuesday Cabinet meeting was a proposal from the Finance Ministry on properties exempt from land and building tax, a draft public-private partnership on improvement of the Songkhla deep-sea port and financial support for the Marine Department in dredging Songkhla waterways.
The National Higher Education, Science, Research and Innovation Policy Council is also scheduled to propose its budget for fiscal 2024, while Justice Ministry will propose draft ministerial regulations on measures to monitor convicts upon their release.
Phiphat Ratchakitprakarn
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