Recently, Mr Sornchai Kusanjai (2nd row, 3rd from left), Director and representative of Ajinomoto Co., (Thailand) Ltd., as a member of Thailand Business Council for Sustainable Development (TBCSD) and PPP Plastics Institute, announced the company’s commitment to support and drive for sustainable plastic and waste management to moving towards a low-carbon society of Thailand in the press conference joined by all members.
The press conference took place at Centra by Centara Hotel, Government Complex and Convention Center, Chaeng Watthana.
Mr Sornchai Kusanjai stated that “The Ajinomoto Group globally is committed to achieving a 50% reduction of environmental impact by 2030. In Thailand, we strongly intend to uphold global sustainability by setting a target of 100% no plastic waste generated by our products, which we will strive to achieve with our sustainable management.”
PPP Plastics or cooperation projects for government, business, and civil sectors for sustainable plastic and waste management is the project under Thailand Business Council for Sustainable Development (TBCSD) in collaboration with Plastics Industry Club, The Federation of Thai Industries and corporate partners from all sectors who are leaders in policy-making and activities related to plastic management in Thailand. The objective is to join forces in driving the project in accordance with plastic waste management roadmap in order to achieve the goal of reducing the amount of plastic waste in Thailand’s seas by at least 50% by 2027 on the basis of sustainable waste management following the principles of Circular Economy.
The Ajinomoto Group globally aims to become a “Solution-providing Group of Companies for Food and Health Issues” by concentrating our management resources, working to reduce environmental impacts and regenerate the environment sustainably driven through business activities in every establishment. This reflects our core of business operation, which we commonly call “the Ajinomoto Group Creating Shared Value: ASV)”.
PTT Group board of directors and Foxconn Technology Group executives recently met the Prime Minister to discuss the future of EV industry and investment opportunities.
BANGKOK, June 28, 2022, PTT Group board of directors, including Prof Dr Thosaporn Sirisumphand, Chairman of PTT Public Company Limited (PTT) and ARUN PLUS Co., Ltd. (ARUN PLUS), Mr Danucha Pichayanan, Secretary-General, Office of the National Economic and Social Development Council, M.L. Chayotid Kridakon, Thai Trade Representative and Advisor to Prime Minister, and Mr Auttapol Rerkpiboon, President and Chief Executive Officer of PTT, together with the top executives from Foxconn Technology Group, Mr Young Liu, Chairman and CEO of Foxconn, paid a courtesy visit to H.E. General Prayut Chan-o-cha, Prime Minister of Thailand, and Mr Supattanapong Punmeechaow, the Deputy Prime Minister and Minister of Energy of Thailand.
The objectives of the visit were to express the strong determination and solid collaboration of Foxconn Group and PTT Group to strengthen Thailand’s EV industry and investment opportunities. Also, some key discussion topics including relevant operations, to monitor the progress of cooperation between PTT Group and Foxconn joint venture, and to create comprehensive EV ecosystem in Thailand were highlighted.
PTT CEO, Mr Rerkpiboon, revealed that the highlights of this visit had covered the construction of the EV production plant, the newly established HORIZON PLUS Co., Ltd. (HORIZON PLUS), jointly owned by ARUN PLUS, and Foxconn, to serve as an EV OEM for car companies, both in Thailand and in ASEAN region. With the beginning of construction work within the third quarter of 2022, the factory is scheduled to be completed by early 2024.
In this occasion, both parties have also exchanged views on further business opportunities and investment in Thailand’s other targeted industries in which Foxconn have expertise. In particular, the investments in the smart electronics, semiconductors, as well as the manufacturing of various components which are the upstream industry of electric vehicle production. Having responded to the government policy and its direction to promote electric vehicles in Thailand, this joint effort also drives the country to further achieve a low carbon society target. In addition, this partnership will help prepare and develop the skilled labors for the future-oriented industries especially in electronic component while providing advanced technology solutions to cover all levels, which will also support the direction of the industry towards sustainable innovation of the future.
Volvo has vowed an aggressive marketing plan this year as the Swedish automaker launches Southeast Asia’s first Volvo Studio.
According to Chris Wailes, managing director of Volvo Car (Thailand), the Kingdom’s automotive industry is on the upswing thanks to exponential growth of the electric vehicle (EV) market. He promises bold plans for the country over the next few years, with all marketing efforts focusing solely on Volvo EVs and plug-in hybrids.
He said the company intends to release a new EV model every year for the next four years.
In his opinion, EV production and delivery for Thailand will suffer no direct impact from the Russia-Ukraine conflict either this year or next. However, some issues with shipping remain, which the company is closely monitoring.
To support its aggressive marketing, Volvo has opened Volvo Studio Bangkok, Southeast Asia’s first “brand experience centre”, where customers can learn about the iconic Swedish vehicles. The location also serves as a showcase for Volvo’s new technology, such as batteries and integrated software that works with Google Maps.
Wailes said the centre is not a showroom for selling cars but a space to explore Volvo vehicles and technology. The 226-square-metre Volvo Studio Bangkok is located on the third floor of Iconsiam on the Bangkok riverside.
“We believe the opening of Volvo Studio Bangkok will change how people think about viewing a car,” said Wailes. The choice of Thailand’s capital for the first Volvo Studio in the region was testament to the Kingdom’s significance as a market in Southeast Asia as well as Volvo Car’s success here, he added.
Aside from the showcase area, the studio has a café and bar as well as a multipurpose area for customers to hang out. The location can be used to meet up with friends or to attend regular Studio events such as mini-workshops, which Volvo plans to hold at least three times per month.
Pattarapong Ahapalasiri, head of Commercial Operations, Volvo Cars (Thailand), added that customer feedback on Volvo’s sales of 100-per-cent EV cars has been positive.
Volvo has suspended sales of all-electric vehicles in order to complete remaining orders this year. He predicted the next round of orders would be opened in Q4.
Although the global economy has been slowed by high inflation, Pattarapong believes that Thailand’s EV market – particularly the premium segment – can continue to grow. Sales growth of Volvo EVs should match the low double-digit rate seen last year, he said.
Thanomsak Santanaprasit, head of Business Development and Customer Experience, added that beginning next month, Volvo will upgrade the battery system used in all of its plug-in hybrid models, allowing the cars to travel faster and further. This would be another exclusive technology experience for Volvo customers only, he boasted.
Household debt is a ticking time bomb for Thailand’s economy and everyone must tackle the problem urgently, Palang Pracharath accountant Narumon Pinyosinwat said on Wednesday.
She pointed out that Thailand’s household debt to gross domestic product has risen to 90.1 per cent, the 12th highest among 70 countries worldwide and the second most in Asia.
The country’s debt service ratio has hit 34 per cent, she warned.
“This proves household debt is obstructing consumption and economic recovery instead of stimulating consumption,” she said.
Narumon said the Bank of Thailand’s move to raise the interest rate to 0.75 per cent coupled with the high cost of living would cause household debt to increase and affect the repayment potential.
She advised lenders to pay attention to the debt repayment potential of borrowers as household debt came from banks, savings cooperatives, hire purchase and leasing firms, as well as loan sharks.
“Lenders must grant loans responsibly and not just concentrate on interests or collateral value,” she advised.
Many borrowers don’t fully understand the interest mechanism until they suffer from debt burden or even lose their homes, Narumon said.
Borrowers must possess basic financial literacy and be able to draw up easy repayment/financial plans on how much they can borrow, so they will not suffer from an overwhelming debt burden in the future, she said.
The government shouldn’t use state banks to grant loans with low interest rates as this would encourage households to borrow more money.
“The government would gain political benefits in the short term, but it will cause trouble for citizens and the economy in the long term,” she said.
Government and private sectors must cooperate to boost public income, Narumon said.
She also advised the honing of skills among 10 per cent of labourers in the agriculture sector before moving them to industries, which would enable the workers to generate more income.
“Meanwhile, government and private sectors must come out with innovations to boost agriculture sector revenue,” she said.
“Most importantly, they must develop worker skills to meet labour market demand.”
There are many ways to tackle informal and household debt, including debt restructuring, Narumon added.
“Everyone must help combat household debt together before it’s too late,” she warned.
Thailand is holding a year-end exhibition to highlight hemp and cannabis production. The event will also enlighten visitors about the technology used for manufacturing products from the two plants.
The Asia International Hemp and Cannabis Expo 2022 will be held from November 30 to December 3 at Queen Sirikit National Convention Centre.
The “Hemp for All” exhibition aims to offer opportunities to all sectors.
The event is possible after Thailand legalised the two plants on June 9 and is promoting them as cash crops.
The legalisation of hemp and cannabis is a milestone for the medical sector and the economy as it offers new opportunities for businesses.
Thailand has the advantage of turning hemp and cannabis into cash crops as it has built a comprehensive process of developing products from the plants.
There are several marijuana and hemp species in the country. These plants flourish thanks to climate and soil conditions.
Labs and factories have been set up to extract substances from the two plants for use in consumer products.
With a fairly large local market, businesses entering the industry can be assured of success. International investors have also shown an interest.
The government has set up the Thai Industrial Hemp Trade Association (TIHTA) to facilitate businesses entering the industry.
The association has members in 16 provinces. It has also teamed up with state agencies and private firms. Its aim is to develop a new, sustainable industry.
TIHTA is holding the expo in collaboration with NCC Exhibition Organiser Co Ltd.
Some 300 businesses from 12 key industries have registered for the expo so far. They include medical, cosmetics, food and beverage, spa therapy, herbs and health tourism firms.
The expo will also include a seminar titled the 2nd International Hemp Environmental Forum 2022 featuring 25 foreign experts.
Thailand exported 550,848 tonnes of durian in the past five months, an adviser to the agriculture minister said on Wednesday.
Alongkorn Ponlaboot, who is also a member of a committee on fruit development and management, boasted that durian exports from February 1 to June 24 were higher than the same period last year. He did not provide any numbers for last year.
Alongkorn said durian exports tasted success because of effective supply and demand management by his committee, which is chaired by Agriculture and Cooperatives Minister Chalermchai Sri-on.
Alongkorn was speaking at a press conference with Nawanit Polken, Agriculture Extension Department deputy director-general, who is secretary-general of the fruit committee.
Nawanit said the committee had been working with government agencies concerned in all provinces to draft operation plans for each province in accordance with the committee’s master development plan, resulting in greater fruit exports.
The committee found that more fruits would be harvested this year because of better production and larger orchards.
“For example, the total area for growing durian grew by 15 per cent compared to five years ago and production rose 7 per cent,” Nawanit pointed out.
He said Thailand has about 7.3 million rai of cash fruits, which are durian, mangosteen, rambutan, longan, southern langsat and lychee.
In 2021, the six fruits had a combined production of 3.44 million tonnes – a 7.9 per cent increase year-on-year – while 2 million tonnes were exported, generating revenue of 168.54 million baht.
The committee will try its best to prevent a lot of fruits being harvested at the same time because such a situation would affect market prices, Nawanit added.
Thai employers have been urged by an international recruitment services firm to consider hybrid work arrangements because its survey has found that most Thai employees prefer a hybrid working environment for better work-life balance.
The Talent Trends 2022 Report survey was carried out by Michael Page Thailand. The recruitment services firm issued an insight summary report titled “The Great X” on June 21.
The Great X report stated that the survey found “a swing towards non-monetary benefits” although salaries and bonuses are still top motivators for Thai job applicants.
“A significant 69 per cent of respondents in Thailand are willing to forgo pay rise and/or promotion for better work-life balance, overall well-being, and happiness,” The Great X report states.
It added that 82 per cent of respondents want a hybrid arrangement between working from home and office.
“As economies improve, companies cannot underestimate the psychological effect that merging ‘work’ and ‘personal’ life has had over the past two years. Some 82 per cent of respondents want a hybrid work arrangement between working from home and the office,” the report recommended.
The Great X report stated that the Great Resignation has been happening in Thailand for the past two years and will only intensify in 2022.
“There has been a wave of resignations in Thailand with a large portion [37 per cent] of employees who have been at their current jobs for not more than two years and a significant 81 per cent of employees looking for new career prospects over the next six months,” the report said.
It added that 70 per cent of candidates believe that mental health and well-being should play a part in employee performance and appraisals. Companies must create a positive culture in which employees at all levels feel appreciated.
The report said a significant number of employees has been found to not feel supported at work.
It said 52 per cent of respondents say that their workload has increased compared to before Covid-19. Some 86 per cent believe that their company does not take active steps to ensure work-life balance. Companies need to change things and help employees efficiently.
The report also quoted Kristoffer Paludan, regional director of Michael Page Thailand, as urging Thai companies to start digital transformation.
“Companies starting their digital transformation may find the learning curve steep,” Paludan said. “However, the pay-off is worth it in the long run. Embracing digital tools will be crucial in a world where remote-working has become the norm. Companies that have embraced digitisation have the advantage in a competitive talent landscape, as they will no longer be restricted by geography when hiring.”
High inflation and household debt would be key risks in hindering the expansion of Thailand’s economy this year and circular economy would play a vital role to sustain the country’s growth, the World Bank has said.
According to the Thailand Economic Monitor 2022 published on Wednesday, World Bank projected that Thailand’s economy would expand by 2.9 per cent this year, as the tourism industry and private consumption show positive signs of recovery.
However, there are some areas of concern, which are the rapid price surge and household debt. Meanwhile, global tensions from the Russia-Ukraine conflict and the uncertainty of the pandemic in China need to be closely monitored as well since these two scenarios affect Thailand’s oil dependence and vulnerability to supply chain disruptions.
To maintain domestic consumption, Kiatipong Ariyapruchya, World Bank senior economist for Thailand, said the country requires some measures to control the price. Meanwhile, although the financial system remains stable overall, risks associated with increased levels of corporate and household debt persist.
World Bank projected that the country’s headline inflation would stay at a 14-year high of 5.2 per cent this year with core inflation at 2.3 per cent before decreasing to 2.2 per cent next year. Export of goods are expected to grow at 4.1 per cent in 2022, slowing down after a strong outcome in 2021 at 18.8 per cent, reflecting the softening global demand, and the prolonged global supply chain disruptions.
Besides, the war in Ukraine may aggravate debt and poverty in Thailand through high food and energy prices. The World Bank estimates that a 10 per cent increase in the global prices of food would raise the poverty rate by 1.4 per cent, and an increase of 10 per cent in energyprices would raise the poverty rate by 0.2 per cent. Overall public debt has risen to 61.5 per cent this year and will grow to 62.5 per cent next year.
“Poverty and unemployment are estimated to have declined over the past year but labour incomes have fallen and household debt has increased to meet expenditure needs,” said Kiatipong.
To combat high inflation, Kiatipong suggested that the Monetary Policy Committee of the Bank of Thailand (BOT) gradually raise interest rates. If the committee can raise interest rates in each round of meetings throughout the rest of this year, interest rates are expected to return to near-normal levels by 2023, when Thailand’s economy recovers fully.
He added that the main objective of monetary policy is to stabilise the economy and inflation while supporting expansion. Hence, the interest rate hike requires to be adjusted at a gradual rate in line with the recovery stage so that the decision will not affect the growth.
Also, given the decline in Covid-19 cases and the further relaxation of border restrictions in Thailand and other countries, there are some encouraging signs that the country’s economy will pick up steam in the second half and reach pre-pandemic levels in the fourth quarter of 2022.
Tourist arrivals are expected to reach 6 million in 2022, up from 0.4 million in 2021, and 24 million, or roughly 60 per cent of pre-pandemic levels, by 2024. As a result, 4.3 per cent and 3.9 per cent growth are projected for 2023 and 2024, respectively.
As the country moves into the recovery phase, it will be important to make progress on fiscal consolidation while rebalancing public spending towards public investment to help support the government’s vision to build back better and greener. Kiatipong suggest.
He stated that the BCG (Bio, Circular, Green) economy model could increase GDP by about 1.2 per cent and create nearly 160,000 new jobs by 2030, accounting for about 0.3 per cent of total employment. It can also help to stabilise volatile commodity prices and cut greenhouse gas emissions by about 5 per cent by 2030.
The World Bank has suggested several actions that the Thai government can take to support the circular economy. The first step is to create strong circular economy policies, legal frameworks, and institutional frameworks. Then, both the government and the private sector must work together to build institutional capacity and inter- and intra-agency coordination. Next, implement concerted action and targeted measures to enable missing complementarities, and finally, advocate for circular economy and raise awareness about resource intensity, pollution, and resource degradation.
According to Jaime Frias, senior economist at the World Bank, with rising domestic demand for resources, Thailand could add the circular economy approach to the pool of policy solutions that can decouple growth from a resource-intensive economy. He believes that unlocking Thailand’s potential in this area will require a coordinated public and private response, as well as targeted reforms.
Finance Minister Arkhom Termpittayapaisith said on Wednesday that he plans to use the government’s central emergency fund to provide more economic mitigation measures in the second half of this year.
Arkhom said the Finance Ministry is still discussing with the Office of the National Economic and Social Development Council about possible measures to mitigate economic grievances and reduce the cost of living for the poor.
The two agencies are still discussing which measures will be appropriate to be launched during the second half of the year with money from the central fund, Arkhom added.
Apart from new measures, the government will also extend existing measures to help the poor cope with rising cost of living, he said.
“For example, the government has extended the measures to subsidise the prices of NGV gas for vehicles and cooking gas for household use,” Arkhom said.
He added that the Finance Ministry still has time to consider whether to extend the reduction of excise tax on diesel oil. The current tax reduction period for diesel oil will end on July 20.
The finance minister said the government would have to be more selective to subsidise oil prices because the government has a limited budget and the central fund is also dwindling.
Arkhom expressed confidence that the country’s gross domestic product (GDP) would still expand by 3.5 per cent this year, which would be in the estimated range of 3 to 4 per cent.
He said the GDP would grow within the targeted range because Thailand has been fully opened, allowing more foreign tourists to visit the kingdom.
Arkhom said the Tourism and Sports Ministry has adjusted its projection of foreign arrivals from 7 million to at least 9.5 million.
The finance minister said Thailand’s exports were still growing and during the first four months of this year, exports had expanded by 14 per cent year on year.
“With more foreign arrivals and growing exports, I’m confident the country’s GDP will reach the target,” Arkhom said.
The baht opened at 35.16 to the US dollar on Wednesday, weakening from Tuesday’s close of 35.08.
The currency is expected to move between 35.05 and 35.25 during the day, predicted Krungthai Bank market strategist Poon Panichpibool.
He said the currency market is fluctuating widely due to concerns that the economy might shrink or even enter a recession, increasing demand for the dollar and pressuring the Thai currency to weaken.
However, the baht may strengthen on hopes that the Thai economy would recover soon after China eases Covid-19 prevention measures. Also investors’ hopes that Chinese tourists would be able to travel to Thailand might help the baht to advance.
However, Poon said, a strengthening of the baht is not sustainable as investors are waiting to sell the currency when it reaches the support level of 35-35.10 to the dollar.
Moreover, he speculated, it is too fast for the Chinese government to allow travel abroad right now. He expected the country to allow international travel only at the year-end.
Poon advised investors to use hedging tools such as options to manage their risks in the highly volatile currency market.
He said Thailand has about 7.3 million rai of cash fruits, which are durian, mangosteen, rambutan, longan, southern langsat and lychee.
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