Prayut appoints Ruam Thai Sang Chart leader as PM’s secretary-general
TUESDAY, DECEMBER 20, 2022
Prime Minister General Prayut Chan-o-cha appointed the leader of Ruam Thai Sang Chart (RTSC) – the party expected to nominate him as PM candidate at the upcoming election – as his new permanent secretary on Tuesday.
Prayut signed an order to appoint RTSC leader Pirapan Salirathavibhaga, replacing Distat Hotrakitya, who resigned from the post to become Prayut’s adviser on December 16.
Speaking to reporters after the weekly Cabinet meeting, Deputy Prime Minister Wissanu Krea-ngam said the Cabinet approved Pirapan’s appointment with immediate effect.
The PM’s secretary-general is a crucial post in the government, responsible for supervising the PM’s Office and preparing documents to be signed by the prime minister. The secretary-general also coordinates between the prime minister and other senior figures to ensure that government work runs smoothly.
The post usually goes to someone strongly trusted by the premier, as the PM’s secretary-general gives orders to government agencies in the name of the prime minister. This has earned the PM’s secretary-general the nickname “little prime minister”.
Past PM’s secretary-generals who played crucial political roles include Sqd Ldr Prasong Soonsiri (for late former PM Prem Tinsulanonda), Niphon Promphan (Chuan Leekpai), and Prommin Lertsuriyadej (Thaksin Shinawatra).
Pirapan resigned as a member of the Democrat Party on December 9, 2019 to become an adviser to Prayut and a member of the ruling Palang Pracharath Party.
Pirapan left the PPRP to help set up the RTSC, which is expected to be the political vehicle for Prayut’s bid to retain his premiership at the next general election, tentatively scheduled for May 7.
Pirapan has confirmed that RTSC will nominate Prayut as its prime ministerial candidate for the next election if he decides to join.
Earlier this month, PPRP leader and Deputy PM Gen Prawit Wongsuwan told reporters tongue-in-cheek that the RTSC was actually the same party as the PPRP. Wissanu said the next day that Prawit had only been joking.
Political observers see Pirapan appointment to the crucial post as a strong sign that Prayut will contest the next election under the RTSC banner.
The move was also seen as a signal to reluctant MPs and politicians to join the RTSC before the next election, especially those in southern provinces where Prayut still enjoys popularity.
It has been reported that two advisers to the prime minister, Trairong Suwankhiri and Chatchawal Kong-udom, will join the RTSC next week.
Govt launches cashback scheme as New Year’s gift for Thai taxpayers
TUESDAY, DECEMBER 20, 2022
The Cabinet approved a new phase of the “Shop Dee Mee Kuen” (Shop and Payback) scheme as a New Year’s gift to the public and an economic stimulus.
The new phase, given the go-ahead on Tuesday, will give individuals tax deductions of up to 40,000 baht per person.
The scheme will run from January 1 to February 15.
Of the total deductions, 30,000 baht can be taken from products and services bought from normal stores, and 10,000 baht from products and services purchased online via platforms that provide electronic tax invoices.
Products and services not included are spirits, beer, wine, tobacco, cars, motorcycles, boats, hotel costs, tour guide fees, utility bills including telephone and internet as well as insurance premiums.
The Cabinet expects this scheme to circulate 56 billion baht in the Thai economy.
Tourism minister wants THB8.7bn, 4am closing for night venues next year
TUESDAY, DECEMBER 20, 2022
Tourism and Sports Minister Phiphat Ratchakitprakarn will ask the Cabinet for 8.7 billion baht to boost next year’s tourism industry with two campaigns in Thailand and overseas.
The first campaign will use 5.4 billion baht to fund phase 5 of the “Rao Tiew Duay Kan” (We Travel Together) subsidy scheme, which is expected to start before New Year. The campaign will offer 1.5 million Thai registrants a 40% discount on hotel rooms in Thailand, capped at 3,000 baht per room per night, and 600-baht e-coupons to spend at restaurants and attractions.
The second will use 3.3 billion baht to fund tourism promotion campaigns in Thailand and overseas markets with high potential.
Tourism and Sports Minister Phiphat Ratchakitprakarn
Phiphat said he will also ask the Cabinet to extend opening hours of entertainment venues until 4am. The extended opening hours will be piloted on Bangla Walking Street in Phuket’s Krathu district for six months from January.
Bangla Walking Street was chosen because over 70% of its visitors are foreign tourists and therefore have higher spending potential, he added.
“Preliminary studies estimate that allowing Phuket pubs to open until 4am instead of 2am will generate 25% more tourism income,” Phiphat said.
However, the proposal has met with firm opposition from other government agencies including the Public Health Ministry, as well as civic groups. It is due to be reviewed by the National Alcoholic Beverage Policy Committee headed by PM Prayut Chan-o-cha on Thursday.
BMA staring at huge losses from Green Line train operations in years ahead, Chadchart warns
TUESDAY, DECEMBER 20, 2022
Bangkok may have to bear an estimated total loss of 85.7 billion baht from the Green Line train operations during 2030 to 2041, Governor Chadchart Sittipunt said on Tuesday, painting a grim picture of the capital’s finances in the coming years.
Chadchart was speaking at a seminar titled “Survive or Sustain”, hosted by the Alumni Association of Faculty of Engineering at Chulalongkorn University.
Chadchart said the concession for operating the Green Line extension routes (Mo Chit – On Nut and Saphan Taksin – National Stadium), currently held by Bangkok Mass Transit System, will expire at the end of 2029. These sections would have been transferred to the Bangkok Metropolitan Administration (BMA) from 2030.
However, back in 2012, former BMA executives had signed a contract that stipulates the Green Line operation must be awarded to private companies from 2016 to 2041, which means the city would need to pay private operators until 2041, said Chadchart.
“The BMA estimates that the cost of operation and maintenance of Green Line trains from 2030 to 2041 would be around 239 billion baht, while the revenue from train fare will be around 153 billion baht,” he said. “That means the BMA will have to shoulder a loss of 85.7 billion baht over the 12 years, or an average of over 7 billion baht loss per year.”
Chadchart added that this calculation is based on a fare of 30 baht per person for the extension sections, and it already factors in a 3% increase in number of passengers each year.
The governor said a 7-billion-baht loss per year is a heavy burden for the BMA. It is higher than the city’s public health budget (6.6 billion baht per year) and almost double the 3.6 billion baht per year it allocates for schoolchildren’s lunch.
“I’m not saying it’s anybody’s fault, as the contract was already signed and approved,” Chadchart said. “I brought this up because it is an important issue that the new generation must be responsible for. After all, the money to pay for the loss will come from taxes that we all have to pay.”
7 Thais escape slave conditions at call centre in Cambodia
TUESDAY, DECEMBER 20, 2022
Seven Thai nationals managed to break out of the clutches of a Chinese call-centre gang in the Cambodian border town of Krong Bavet on Tuesday.
The victims said they were allowed out of their detention facility at 5am after their Chinese bosses learned that they had sought help via Facebook.
The victims then took a tuk-tuk to the Thai Embassy in Phnom Penh to seek help to return home.
On a Facebook Live clip posted at 1am, a woman can be seen asking for help, saying they were being held against their will by security guards and electric fencing.
She said she and other victims had been forced to work for more than 15 hours daily without a break, and their employers had also confiscated their passports and ID cards.
“The call-centre gang demanded up to 100,000 baht in exchange for our freedom,” she said.
The seven Thai victims, who have only been identified by their first names, are Wanvisa, Apinan, Chantima, Saitarn, Kritsadaporn, Prayoon and Anocha.
Feeder train service to connect Lat Krabang and Phra Chom Klao from Jan 3
TUESDAY, DECEMBER 20, 2022
The State Railway of Thailand (SRT) is launching a new feeder train service between Lat Krabang station on the Airport Rail Link and Phra Chom Klao train stop from January 3.
In the pilot phase, which will last three months, the train will run 22 return trips per day from Monday to Friday, with fare set at 10 baht per person, SRT public relations centre director Ekarat Sriarayanphong said on Tuesday.
The first train will leave Lat Krabang station at 7.10am while the last train will arrive at Phra Chom Klao at 8pm.
The feeder train will use diesel engine locomotives and is expected to transport more than 1,000 people per day, he added.
Phra Chom Klao train stop is located within King Mongkut’s Institute of Technology in Bangkok’s Lat Krabang district. The stop has been serving institute students and locals in the area who commute by train.
SRT expects the new feeder train to help commuters in the inner Bangkok area use the Airport Rail Link to reach Suvarnabhumi Airport as well as other destinations in the outer city.
Coffee can pile-up brings traffic to a halt in Pathum Thani
TUESDAY, DECEMBER 20, 2022
Traffic was brought to a halt when some 120,000 cans of coffee fell off a trailer truck on a flyover in Pathum Thani’s Sam Khok district on Monday evening.
The accident took place on the flyover going across the Pathum Thani-Bang Pahan road in Chian Rak Yai subdistrict.
The driver, Saran (surname withheld), 58, said the rope holding the 4,032 boxes together had split, sending the shipment flying off the truck’s rear on to the road.
It took police officers and volunteers several hours to clear the road and get the traffic moving again.
The secretary-general of the Anti-Money Laundering Office Piyapan Pingmuang has reportedly resigned following an allegation he is involved with Chinese triads in Thailand.
News of Pol Maj-General Piyapan’s resignation was made public by former massage parlour tycoon and politician Chuwit Kamolvisit in a Facebook post on Monday.
Chuwit also attached a photo of Piyapan’s resignation letter to the post.
Chuwit said the resignation came after former Democrat MP Watchara Phetthong urged the Senate to investigate Piyapan and his deputy Theppasu Bavornchotidara for allegedly assisting members of Chinese triad criminal gangs in various illegal operations in Thailand.
However, the letter posted by Chuwit cited Piyapan’s reason for quitting as “health problem”.
Chuwit said he admired Piyapan for his swift decision to resign to ensure a transparent investigation rather than using his position as a shield.
“It is a rare sight among those in power nowadays,” he said. “I hope that his action will become a new standard for all government agencies that fall under scrutiny.”
Last month, Chuwit handed the police information on alleged Chinese triads operating in Thailand. The tip-off quickly led to an arrest warrant being issued for alleged triad kingpin Chaiyanat “Tuhao” Kornchayanant.
Chaiyanat is married to a senior Thai police officer and gained Thai citizenship through the marriage.
He surrendered to police on November 23 and was charged with drug-trafficking. He has denied all charges. On December 9, police seized 3 billion baht in assets allegedly belonging to Chaiyanat, including land, luxury cars and a resort hotel.
Dr Bordin Vongvitayapirom, Senior Manager – Sustainability & Climate Centre of Excellence (S&C COE) at Deloitte Thailand, shares his insights regarding the latest climate change conference.
At the 27th session of the Conference of the Parties of the UNFCCC (COP27) held last month in Egypt, many expected to see the development of mechanisms under the Paris Agreement in continuation of COP26, and the progress of countries against their climate commitments. Meanwhile, severe climate impacts around the world in the past year, such as the major flood in Pakistan and devastating wildfires in many countries, heightened the focus of world leaders on damage and loss recovery. These climate crises highlighted the increased pressure for governments to act on their prior commitments in keeping a 1.5°C scenario alive and the urgency to unlock financial support to address its major impacts on developing economies.
Key developments at COP27 can be summed up in 3 main areas: (1) climate finance, which centered around the creation of a “Loss and Damage Fund” and continuing discussions on climate financing under the Paris Agreement; (2) increased emphasis on private actors, especially in the Energy and Carbon Market and; (3) the critical role of new and emerging technologies in green transitions.
Climate Finance as key support for developing countries
The Loss and Damage Fund, with the objective to aid vulnerable countries facing severe climate related impacts, took center stage of COP27. The Loss and Damage finance mechanism will be discussed at the new transitional committee meeting by March 2023. As a developing country, Thailand agrees with the establishment of the fund but still expects to see progress on the previous financial commitment of US$100 billion mobilized by developed countries for climate action in developing countries.
As one of the ten most flood-affected countries in the world, Thailand will need to rely on global funding to absorb the high economic impacts of climate change and to develop infrastructure for climate mitigation and adaptation. Meanwhile, we see a growing domestic ecosystem of private sustainable financing which will be strengthened once the Bank of Thailand’s Green Taxonomy is enforced next year. This will support financial institutions to embed sustainability and encourage the distribution of funds and financial products for energy transition, climate actions, and sustainability-linked projects. The use of these sustainable finance products and loans is an opportunity for private sector to fund their transition to low carbon organization.
Carbon Market Mechanism may become more stringent in the future
COP27 saw some developments in carbon markets, such as on the governing the use of Internationally Transferred Mitigation Outcomes (ITMOs) with Article 6.2, and clarifications on trading of carbon credits under Article 6.4. At the conference, Thailand highlighted that it is among the first countries to tackle climate change under Article 6.2, through cooperation with Switzerland.
Thailand recently launched its first carbon credit exchange operated by the Federation of Thai Industries with the aim to accelerate the adoption of carbon credits, encourage innovation in emission reduction initiatives and enhance the quality of carbon credits to meet international standards. Companies will need to pay greater attention to the carbon market as the pressure and regulations around carbon neutrality has tightened significantly in the recent years, particularly among buyer countries such as Europe (e.g., CBAM) and other countries with mandatory carbon markets.
Phasing down of all fossil fuels may come sooner than expected
In the past year, unpredictable events such as the Russia-Ukraine war has led to fluctuations in commodity prices and fueled energy crises globally. As an impact of this uncertainty, countries attempted to prioritize their economic and energy security, which stagnated the phasing down of fossil fuels. At COP27, the UN Chief highlighted the need for just energy transition partnerships to accelerate the phasing out of coal and scaling up renewables (UN News, 2022). The proposal for a full phase down of all fossil fuel was not adopted at COP27; however, we can expect further and deeper discussions on this topic in the next COPs. Shifting from fossil fuels to renewables are key solution today; however, the lack of stability and efficiency of renewable resources compared to fossil fuels is the main hindrance for many countries to increase renewable energy production.
Thailand continues to maintain reliance on fossil fuels in power generation to ensure its energy security. However, transition to renewable resources is necessary in the near future as Thailand is depleting its oil and gas reserves and aiming to achieve the Net Zero target. The Alternative Energy Development Plan (AEDP) 2015-2036 expects to see an increase in renewable energy share, with a target to increase the proportion of renewable energy to 30% of total energy consumption by 2036. Many companies that invest in power utilities are aiming to be part of this energy transition, which will see significant business opportunities in the years to come.
Green technology solution breakthroughs are vital to achieve Net Zero
Scaling up technology solutions for decarbonization and energy transition also took central stage at COP27. It was agreed that actualization of green technology will require components vital to unlock climate finance, stakeholders and partners in green technology development, and pathways for sectoral transformation (Deloitte, 2022).
To achieve carbon neutrality by 2050, Thailand needs new decarbonization technology. Climate technology solutions such as green hydrogen and Carbon Capture, Utilization, and Storage (CCUS) which developed significantly over the past years. There are now several key developments in Thailand. For example, EGCO has recently signed an MoU on clean energy with Saudi Arabia’s Ministry of Investment and PTTEP has initiated the country’s first CCS project which is expected to commence operations by 2026.
Currently, Thailand has progress in its climate change efforts, but we need more cooperation across sectors, with support from the government on policies and regulatory framework. Meanwhile, Thailand will need to increase its technical capability to unlock climate financing, enhance its market mechanism to match international standards, and develop green solution technologies. The roles of the private sector are more crucial than ever in this transition. Companies should start today by taking actions to understanding their footprint, plan to decarbonize, and explore sustainable finance products to fund the transition. All have a part to play in achieving our climate ambition, and the time to start is now.
Pirapan left the PPRP to help set up the RTSC, which is expected to be the political vehicle for Prayut’s bid to retain his premiership at the next general election, tentatively scheduled for May 7.
Tourism and Sports Minister Phiphat Ratchakitprakarn
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