Baht opens stronger but Covid-19 situation could determine direction
The baht opened at 31.06 to the US dollar on Monday, strengthening from its previous close of 31.17 on Friday. The Thai currency is likely to move between 31 and 31.15 during the day and between 31 and 31.15 this week, Krungthai Bank market strategist Poon Panichpibool said.
He suggested that investors monitor the dollar’s movements, as the US currency could be stable or weak, if the market is ready for risk.
The market strategist said that the baht would not weaken sharply, and predicted resistance for the currency at 31 to the dollar.
However, Poon warned investors to beware of possible fluctuation of the baht caused by the Covid-19 situation in Thailand.
CBRE ties up with Thailand Elite Card to offer one-stop services to foreign property buyers
Leading international property consultant, CBRE, which has been operating in Thailand for over 33 years, is joining up with Thailand Elite Card to help stimulate the economy by providing advice on investment opportunities.
It will also provide comprehensive services to foreign investors in the Thai real estate market.
Charinya Youngprapakorn, chief of advisory and transaction services in CBRE Thailand’s Residential Project Marketing Department, said CBRE Thailand has signed a memorandum of understanding with Thailand Privilege Card (TPC) to extend one-stop services to Thailand Elite members and stimulate foreign investment in Thailand’s real estate market.
CBRE ties up with Thailand Elite Card to offer one-stop services to foreign property buyers
Thailand Privilege Card has top-tier clients from China, Japan, the United Kingdom and the United States, some of whom are interested in buying property in Thailand but lack knowledge about the rules and regulations and reliable market information that can help them make the right decision.
CBRE will offer one-stop consulting services to foreign investors including representing them in buying, selling, leasing all types of properties as well as providing investment consultancy, market research, valuation and advisory services. CBRE will also provide guidance on buying and investing in residential projects, resort homes and other types of properties that meet the investment needs of each Thailand Elite member.
“CBRE experts are equipped with extensive knowledge of property investment in Thailand, in-depth market data from CBRE Research, and over 33 years of experience in the market. On top of these, we have a large selection of premium properties in Bangkok and resort destinations which can be matched with client’s needs whether for investment, vacation home or retirement home purposes,” Charinya added.
Somchai Sungsawang, president of Thailand Privilege Card, said: “This partnership is another important step forward for Thailand Privilege Card as it will help expand our range of services for Thailand Elite members which currently number over 13,600 members worldwide, especially in real estate investment. In addition, it will boost the domestic economy and enhance Thailand’s image as one of the most investable and attractive living locations. We have chosen CBRE as our partner in real-estate consultancy for our members because of its rich experience, world-class reputation, and leadership position as a sales representative for numerous residential properties priced at over THB10 million. This could also contribute to the targeted increase in the number of our members for this year.”
CBRE ties up with Thailand Elite Card to offer one-stop services to foreign property buyers
Though the Covid-19 situation in Thailand has not eased, CBRE believes that when the situation returns to a controllable state coupled with an effective vaccination drive and the country’s reopening in the second half of this year, tourists will start returning to Thailand and the real estate market will gain interest from foreign investors again, especially the high-end market which usually bounces back faster than other segments.
CBRE has been preparing a marketing strategy and building an integrated platform to accommodate the return of high-purchasing-power foreign investors.
It said it is confident that, in the long run, Thailand’s potential and effective government measures will help stimulate the economy and bring back more foreign investors within this year.
Nearly half of Thai consumers plan to avoid using cash after pandemic ends: study
A study on consumer payment attitudes by Visa showed nearly half of all Thai consumers (45 per cent) were likely to avoid using cash after the Covid-19 pandemic ends.
The study also delves into which activities Thai consumers are looking forward to spending on when recovery is underway.
The top three activities are: travelling within Thailand (35 per cent), travelling abroad to Covid-safe destinations (29 per cent) and taking small get-away trips in their own city (19 per cent).
Suripong Tantiyanon, country manager, Visa Thailand, said: “The pandemic has had a massive impact on how people live, work and shop both in Thailand and globally.
As we have crossed the one-year mark since the pandemic hit, we are taking a look at how events in the past are shaping our future. We are privileged to be able to conduct this study and share findings that we believe will help everyone prepare for back-to-business scenarios.”
According to the study, other behaviours that are likely to become a new normal post-Covid are wearing a mask (62 per cent) and avoiding crowds (43 per cent).
The situation has also prompted many Thai consumers to explore different shopping channels.
The most popular channels used for the first time during Covid are shopping on apps and websites (65 per cent), using direct delivery at home after ordering by phone from local shops (47 per cent), and shopping on social media channels (44 per cent).
Thai consumers were forced to rethink spending priorities. According to the respondents, spending categories that experienced the largest reduction were international trips (63 per cent), going to cinemas or events (60 per cent), buying luxury items like bags, watches and jewellery (60 per cent), fine-dining (58 per cent), well-being treatment (57 per cent) and buying new clothes (54 per cent).
Looking ahead, in addition to domestic, international and small get-away trips, Thai consumers are preparing to resume spending on gadgets (16 per cent), groceries and personal care items (15 per cent), and going out to enjoy fine-dining and out-of-home entertainment (10 per cent).
Less than 1 in 10 plans to upgrade home appliances (9 per cent) and spend on fashion and clothing (8 per cent).
Oil palm growers in Krabi to protest over falling price
A group of oil palm growers vowed to hold an anti-government protest at Krabi Provincial Hall on Tuesday as the price of oil palm in Thailand is likely to drop further.
Chayodom Suwanwattana, chairman of the oil palm growers of Thailand group, said the price of oil palm was currently at THB4 per kilogram compared to THB7.60-7.80 per kg in Malaysia.
He also said that the price of 46-0-0 fertiliser for oil palm had increased from THB550 on August 28 last year to THB750 on April 15 this year.
“Meanwhile, the price of 18-46-0 fertiliser had increased from THB760 on August 28 last year to THB1,080 on April 15 this year,” he said.
“Therefore, we will gather at Krabi Provincial Hall on Tuesday to pour oil palm fertiliser and submit a letter to the government.”
He added that the rise in fertiliser price had increased farming cost to THB4 per kg.
“It would be better if the oil palm price increases,” he added.
Some e-commerce categories raking it in amid Covid-19 outbreak
Digital Vouchers saw a whopping 1,237 per cent growth year on year in Thailand amid changing shopping trends in the aftermath of the pandemic, a study by aCommerce highlights.
BrandIQ Flash Insights report by aCommerce, an end-to-end e-commerce platform and solutions provider in Southeast Asia, reveals the 100 fastest-growing e-commerce categories after the Covid-19 outbreak.
The company says it launched BrandIQ in 2018 to help brands understand online shopper trends and apply data analytics to increase e-commerce sales.
BrandIQ is the first software as a solution that assists retailers and brands in consolidating product and channel information and getting granular views on sellers’ activities, brands’ share of shelf, share of categories, and market share comparison, aCommerce said. Flash Insights provides a quick overview of trends that are growing in the Thai e-commerce landscape.
Because of the restrictions and Covid-19 preventive measures, Thai people have been avoiding visiting offline stores. They stay home and order goods from stores and retailers to fulfil their needs. This “new normal” way of living persuaded brands to start investing in online marketplaces to drive store visits.
BrandIQ’s Flash Insights report confirms that in addition to driving sales, voucher programmes present a solution for brands to optimise their inventory amid the Covid-19 crisis, the company said.
Another trend that surged during the pandemic was cooking at home. As the coronavirus pandemic continues to cause disruptions, many Thais have settled into a routine that involves a lot more home cooking, increasing the demand for refrigerators and cookware. Online groceries also surged with dairy and chilled products growing 2,637 per cent, dry and packaged goods by 389 per cent and breakfast cereals and spreads by 271 per cent, the report showed. This shift in behaviour is not only because consumers working from home no longer stop by for breakfast or coffee on their commute, but also because they feel unsafe going to restaurants.
Some e-commerce categories raking it in amid Covid-19 outbreak
Last year’s report revealed a surge in food supplements and furniture categories, and with many people in the country still working from home this year, the trend has continued, the company said.
The pandemic highlighted the need for comfortable and productive spaces during quarantine whilst creating a growing demand for supplements as consumers prioritised wellness and health, the company said.
The report also shows a significant increase in demand for arts and crafts for kids. This category includes activities and products which enable kids to learn while they are at home studying.
BrandIQ explains the overall increase across these categories due to the restrictions on out-of-home activities on the one hand, and retailers’ need to sell their products on the other. As a result, businesses had to adjust their strategies, and the changes in consumer behaviour have accelerated the speed with which companies have to undergo a digital and ecommerce transformation.
“Granular data and analytics of your e-commerce business is important for brands, but getting access to real-time data on your competitors’ sales, promotions, and orders is a game-changer,” said Paul Srivorakul, Group CEO of aCommerce.
“Providing brands with end-to-end data is important in optimising their e-commerce business and automating processes that help save costs and grow sales. For example when a particular brand or product starts selling well, our system immediately alerts marketing to increase advertising spending, then triggers customer service to increase support, then contacts the supplier to place a larger order and alerts logistics to prepare for increase in orders,” he added.
aCommerce has added regional platforms such as Shopee and Lazada, including local marketplaces such as Tokopedia in Indonesia, Qoo10 in Singapore, and soon Sendo and Tiki in Vietnam.
SCG Dow Completes MOCD, Ready to Accelerate Growth and Meet Global Demands
SCG’s Chemicals Business and Dow Thailand Group (Dow) announced the success of Map Ta Phut Olefins (MOC) Debottleneck Project (MOC Debottleneck or MOCD), which was completed ahead of plan and has started initial production. Production is expected to reach full capacity in May 2021.
The MOCD will expand the MOC’s olefins production capacity by 350,000 tons per year, strengthening its capability and competitive advantage, meeting the globally growing demand from industries, and enhancing Thailand’s petrochemical industry potentiality. State-of-the-art technology of MOC Debottleneck project enables the production process to have a lower investment cost, promotes energy saving, and is environmentally-friendly (Green Process).
Roongrote Rangsiyopash, President and CEO of SCG, said, “The MOCD is the MOC’s largest project in terms of investment and technological challenges. The project was completed earlier than planned despite being amid the COVID-19 pandemic thanks to the stringent and continuous implementation of COVID-19 response measures and our professionals’ capability and expertise to ensure safe and coherent project progress. The project is now ready to meet the demands of the domestic and international markets.”
Roongrote Rangsiyopash, President and CEO of SCG
Tanawong Areeratchakul, President of Chemicals Business, SCG, said, “The MOCD is another significant collaborative milestone between SCG’s Chemicals Business and Dow which work together to build growth and improve potentiality and competitive advantage at a global scale. This project will add MOC’s olefins production capacity by 350,000 tons per year and increase flexibility in feedstock selection, harnessing advanced production technologies that can lower costs and support energy-saving and green process. The full commercial production is expected to be ready in May 2021.”
Mr. Tanawong Areeratchakul, President of Chemicals Business, SCG
Bambang Candra, Asia Pacific Commercial Vice President of Dow Packaging and Specialty Plastics, revealed, “Dow’s differentiated offerings in packaging and specialty plastics applications have seen exceptional growth and traction in the Asia Pacific driven by megatrends including sustainability, industry 4.0, and healthcare. The successful completion of the debottlenecking delivers welcomed capacity expansion that helps position Dow well to continue to capture this growth.”
Chatchai Luanpolcharoenchai, Dow Thailand President, concluded, “Dow’s collaboration with SCG to invest and bring in state-of-the-art technology to this project demonstrates our commitment to customers in the Asia Pacific and the growth of their businesses. It also strengthens Thai industries’ technology and competitiveness, which will help drive the country’s economy.”
Chatchai Luanpolcharoenchai, Dow Thailand President
Map Ta Phut Olefins Company Limited (MOC) is a joint venture between SCG Chemicals Company Limited (a wholly-owned subsidiary of SCG) and Dow. Currently, SCG holds an indirect stake of 67% in MOC while Dow owns the remaining 33% of both direct and indirect shares. In 2018, SCG and Dow approved the MOC Debottleneck project with an investment of approximately 15.5 billion baht.
About Map Ta Phut Olefins Company Limited
Map Ta Phut Olefins Company Limited (MOC) is a world-scale upstream petrochemical plant with a comprehensive production range that links to downstream petrochemical activities. Located in Map Ta Phut Sub-district, Rayong Province, the plant has commenced its operations since April 2010 and completed a debottlenecking project or MOCD to start a full commercial operation in May 2021.
About SCG, Chemicals Business
Chemicals Business, SCG, is one of the largest integrated petrochemical companies in Thailand and a key industry leader in Asia offers a full range of petrochemical products ranging from upstream production of olefins to downstream production of 3 main plastics resins: polyethylene, polypropylene, and polyvinyl chloride. Chemicals Business is committed to conducting business in line with Environmental, Social and Governance (ESG) and achieving Sustainable Development Goals (SDGs). Chemicals Business on developing new technology and innovation to create high value-added products (HVA) and holistic service solutions concerning areas on the rise such as circular economy, medical & healthcare, electric vehicle (EV) to better meet diverse places emphasis demands and sustainable environmental stewardship. For more information, please visit www.scgchemicals.com.
About Dow
Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation, and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer-centric, inclusive, and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow’s portfolio of plastics, industrial intermediates, coatings, and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility, and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $39 billion in 2020. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit http://www.dow.com or follow @DowNewsroom on Twitter.
The Stock Exchange of Thailand (SET) Index closed at 1,585.03 on Friday, up 13.12 points or 0.83 per cent. Total transactions amounted to THB93.87 billion with an index high of 1,589.21 and a low of 1,577.19.
In the morning session, Krungsri Securities forecast the SET Index on Friday would fluctuate between 1,565 and 1,585 points amid the fall in US jobless claims, US stimulus measures and mass buy-ups of Thai shares whose first-quarter performance is likely to improve.
It added that US jobless claims had dropped to the lowest in a year.
“However, uncertainty over Thailand’s higher Covid-19 cases and volatility in foreign fund flows would pressure the day’s index,” Krungsri Securities said.
The 10 stocks with the highest trade value today were DMT, DELTA, KBANK, PTTGC, SCC, IVL, CPALL, PTT, COTTO and COM7.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 29,357.82, up 26.45 points or 0.090 per cent.
China’s Shanghai SE Composite Index closed at 3,418.87, down 22.41 points or 0.65 per cent, while the Shenzhen SE Component Index closed at 13,933.81, down 276.79 points or 1.95 per cent.
Hong Kong’s Hang Seng Index closed at 28,610.65, down 26.81 points or 0.094 per cent.
South Korea’s KOSPI closed at 3,197.20, up 18.46 points or 0.58 per cent.
Taiwan’s TAIEX Index closed at 17,285.00, up 290.64 points or 1.71 per cent.
DITP tightens safety standards for Thai frozen food export
Department of International Trade Promotion (DITP) has tightened its measures for Thai frozen food exporters by launching Thailand Delivers with Safety campaign to boost confidence among global consumers in COVID-19-free safety food product from Thailand.
DITP also joins forces with partner organizations in implementing COVID-19 Prevention Measures in food production, which the exporters promptly and responsively comply with to enhance consumers’ safety, as well as boosting the confidence for global trade partners. As for the market outlook, Thai frozen food market is expected to grow this year, demonstrating Thailand’s potential as the major food manufacturer with advanced manufacturing technology that meets international standards.
DITP tightens safety standards for Thai frozen food export
Somdet Susomboon, Director-General of the Department of International Trade Promotion (DITP) revealed that the market outlook for Thai frozen food in 2021 is expected to grow continuously, targeting to reach 140,256.75 million baht in export value, accounting 2% expansion, despite the fact that Thailand has been affected by the COVID-19 pandemic, which results in the slowdown of the purchase orders and delivery of Thai products overseas.
DITP tightens safety standards for Thai frozen food export
DITP has collaborated with Thailand’s public and private sector in elevating the manufacturing procedure by issuing COVID-19 Prevention Measures in food production for export, to enable manufacturers, exporters, business operators, fruit and vegetable suppliers, as well as logistics operators to strictly follow the standard guidelines. The goal is to enhance safety for consumers and strengthen confidence among global trade partners.
For this safety measures, business operators and suppliers in ingredient shipping from ships and piers must intensify their effort to reduce the risk of contamination from ingredients and containers. Manufacturers must implement strict quality and safety controls throughout the production line, from receiving ingredients from ships and piers, storing in chilled room, processing, and packing in compliance with Good Manufacturing Practice (GMP) and Hazard Analysis Critical Control Point (HACCP). Besides, they shall maintain preventive measures for transporting goods by cleaning and disinfecting the interior of the vehicle containers as well as the personal hygiene of employees. To monitor personal hygiene, work environment as well as location and manufacturing building, manufacturers shall prioritize sanitation and strictly clean and disinfect the machinery, manufacturing buildings, floors, walls, as well as common areas which are prone to contact in appropriate frequency. As for personal hygiene of workers, workers must be trained to protect themselves from COVID-19 to properly prevent any contaminations during operation.
DITP tightens safety standards for Thai frozen food export
These measures will go hand in hand with the strategy for frozen food export, including identifying new sources of ingredients, setting up internationally accepted standards, as well as focusing more on making an agreement with neighboring countries in providing labor through the clear guidelines for migrant worker management while effectively establishing the labor management best practices.
Meanwhile, the private sector related to Thai Frozen Foods Association has responded positively to this and is ready to implement strict measures. The cooperation among members of the Association has been reached to strictly adhere to these preventive measures from COVID-19, ensuring the confidence among consumers.
Although many countries around the world are facing the spread of COVID-19 pandemic, Thailand still retains its potential as the world’s major food producer with advanced manufacturing technology for products that best cater to different market demands and meet international quality standards. DITP has launched “Thailand Delivers with Safety” campaign along with the preventive measures for Thai manufacturers, exporters, business operators, frozen food suppliers and logistics operators to follow the same standards. This is to enhance confidence among buyers and trade partners around the world, highlighting the strong potential and finest quality of Thai products in every procedure from sourcing ingredients, harvesting, transporting, manufacturing with high level of personal safety, packaging to delivering at the consumers’ doorsteps,” Mr. Somdet affirmed.
As for the market overview of the frozen food export in January 2021, Thailand exported fresh, chilled, frozen, canned and processed seafood (including canned and processed tuna, excluding fresh, chilled, frozen and processed shrimp) totaling 9,480.46 million baht, a 1.59 percent drop from the same period last year. The major export products under this category were canned tuna, amounting to 4,557.11 million baht, or 1.07 percent decrease. The total seafood export volume was 78,056 tons, divided into 18,217 tons of fresh, chilled and frozen seafood, or 16.48 percent decrease, 9,453 tons of processed seafood, 19.25 percent increase and 50,386 tons of canned seafood or 1.85 percent increase, the majority of which are canned tuna with 38,990 tons in volume, an increase of 0.48 percent compared to the same period last year.
The largest importer countries of frozen food from Thailand were the United States, Japan, Australia, Egypt and Canada, accounting for 57.37%. In addition, the markets with a high growth rate were Argentina which grew up to 194.18 percent, followed by Egypt, United Arab Emirates, Israel and Taiwan with the growth rate of 80.90%, 45.13%, 42.11% and 40.56%, respectively. Thai frozen food products with the highest export value in 2020 are: 1. Canned tuna 2. Processed fish (tuna + other fish) 3. Canned shrimp 4. Other canned seafood 5. Live, chilled and frozen squid.
15 foreign companies investing over Bt3 billion get FBA approval in April
The governments Business Development Department gave approvals to 15 foreign companies under the Foreign Business Act (FBA) in April this year.
“These companies, most of them from Hong Kong, Singapore and Japan, were bringing in more than Bt3.08 billion in investment capital into the country and generating jobs for 227 Thais,” department director-general Tossapon Tangsubut said. “These foreign companies have also transferred their technology and business know-how to Thailand, which will be beneficial for our industrial development.”
Tossapon said the sectors that received significant foreign investment in April were petroleum extraction, logistics services, mass transit services, advertising and marketing.
“In the first four months of 2021, 75 foreign companies were approved under the FBA with combined investment value of Bt7.96 billion,” he added.
“Most of the businesses being approved are either directly related to the government’s investment promotion plan or support the country’s infrastructure system, such as the construction of high-speed train routes connecting the three airports.”
Thailands Covid-19 situation, volatile funds flows expected to pressure SET
The Stock Exchange of Thailand (SET) Index rose by 9.34 points, or 0.59 per cent, to 1,581.25 at 10.04am on Friday. The volume of total transactions was THB7.31 billion with an index high of 1,584.42 and a low of 1,581.15.
Krungsri Securities forecast that the SET Index would fluctuate between 1,565 and 1,585 points despite the decline in US jobless claims, US economic stimulus measures and mass buy-ups of shares whose first-quarter performance is likely to improve.
It added that US jobless claims had dropped to the lowest in a year.
“However, uncertainty over Thailand’s higher Covid-19 cases and volatility in foreign fund flows would pressure the day’s index,” Krungsri Securities predicted.
It recommended that investors buy:
▪︎ PSL, TTA and RCL, which would benefit from a rise in the freight rate.
▪︎ BDMS, BCH and CHG, which gained positive sentiment from the import of Covid-19 vaccine.
▪︎ PTTGC, IVL, EPG, CPF, BCH, CHG, STGT, DOHOME, COM7, SYNEX, STARK, TWPC, TNP and WICE, whose first-quarter turnover is expected to improve.
The SET Index closed at 1,571.91 on Thursday, up 22.69 points or 1.46 per cent. The volume of total transactions was THB91.32 billion with an index high of 1,575.37 and a low of 1,551.42.
CBRE ties up with Thailand Elite Card to offer one-stop services to foreign property buyers
CBRE ties up with Thailand Elite Card to offer one-stop services to foreign property buyers
Some e-commerce categories raking it in amid Covid-19 outbreak
Roongrote Rangsiyopash, President and CEO of SCG
Mr. Tanawong Areeratchakul, President of Chemicals Business, SCG
Chatchai Luanpolcharoenchai, Dow Thailand President
DITP tightens safety standards for Thai frozen food export
DITP tightens safety standards for Thai frozen food export
DITP tightens safety standards for Thai frozen food export
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