The Bank of Thailand (BOT) has told a committee of lawmakers to consider the fiscal 2023 budget bill as the country’s economy is showing steady improvement and the trend was likely to continue in 2023.
The BOT cited major contributions to the economic recovery from increasing domestic demand and revival of tourism.
The House of Representatives committee held a meeting with officials from the central bank and related agencies on Tuesday after the first reading of fiscal 2023 budget bill had been approved in principle by the House of Representatives during voting last Friday (June 3).
“The BOT estimated that the total number of foreign tourists in 2022 would reach 5.6 million people, while Thailand’s gross domestic product would bounce back to the same level as before the Covid-19 outbreak by the first quarter of 2023,” the committee’s spokesman, Paopoom Rojanasakul, said on Wednesday as he summarised Tuesday’s meeting.
“Negative factors that could hinder economic recovery include the impact of the Russia-Ukraine war, which has affected global consumption and investment, and the rising inflation,” he added.
“Meanwhile, the BOT estimated that the impact from the Omicron wave will be significantly smaller than that of the Delta wave last year.”
Agencies that participated in the meeting also notified the committee that in the rest of 2022, Thailand would face two major risk factors, namely rising domestic cost of living and shortage of foods, raw materials and fuel in the manufacturing sectors. These factors will further increase the inflation rate and will continue to rise until next year, when it is expected to gradually come down.
The committee also noted that the US Federal Reserve’s aggressive increasing of interest rate by half a percentage point on May 4 in an effort to slow inflation, which is considered the highest in 40 years, is having an impact on Thailand’s export sector.
The Monetary Policy Committee (MPC) has decided to keep the policy interest rate at 0.50 per cent per year.
MPC secretary Piti Disyatat said on Wednesday after the meeting that four members voted to maintain the policy rate at 0.50 per cent while three members voted to raise the policy rate by 25 basis points.
The committee speculated that the Thai economy could grow continuously and has a chance to recover better than expected because domestic demand and foreign tourist arrivals were picking up.
The committee forecast that headline inflation was likely to increase and stay at a high level longer than previously expected due to the increasing oil price and higher costs being passed on. The MPC deemed that a very accommodative monetary policy would be less needed going forward.
However, to ensure that the economy would be able to recover as expected, a majority of members voted to maintain the policy rate in this meeting and would monitor the development of economic recovery and inflation risks closely.
Meanwhile, three members viewed the information on economic recovery and inflation risk as already clear enough to raise the policy interest rate in this meeting.
The committee also speculated that the Thai economy would grow by 3.3 per cent in 2022 and 4.2 per cent in 2023 as domestic consumption has recovered better than expected, especially in the services sector.
Moreover, the number of foreign tourists is expected to increase continuously due to the relaxation of border controls in Thailand and other countries.
Moreover, the labour market and household incomes showed signs of improvement after the easing of prevention measures and the economic recovery.
Meanwhile, the impact of the Covid-19 situation and the Ukraine-Russia conflict on the Thai economy will be limited.
However, the committee said it would continue to monitor risk factors for economic recovery in the later phase, especially the impact of higher prices on the cost of living for households.
Global Compact Network Thailand (GCNT) together with the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) and the UN Country Team Thailand are empowering sustainability leaders across Southeast Asia at “UNGC Leaders Summit 2022” with more than 10,000 multi-sector partners around the world. The event highlight 3 sustainability: Climate Change, Biodiversity, and Social Development including engaging with SMEs to take part in driving the Sustainable Development Goals (SDGs) into ASEAN and into the Asia-Pacific region.
The Global Compact Network Association of Thailand (GCNT), together with the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) and the UN Country Team Thailand, co-hosted the “UNGC Leaders Summit 2022: Sustainability in ASEAN” to drive sustainability on the global stage Sustainability leaders from business, civil society, Government, Global Compact Local Networks Thailand, Indonesia, the Philippines, Singapore, Malaysia and Brunei. This year’s #LeadersSummit, inspired and catalyzed local and regional solutions for advancing policies that not only drive economic growth but accelerate progress towards the objectives of Sustainable Development Goals and the Paris Agreement in the ASEAN region with live broadcasts from Thailand around the world with over 10,000 attendees.
“The ESCAP Sustainable Business Network (ESBN), consisting of representatives of the private sector from the Asia-Pacific region, has adopted the Asia Pacific Green Deal for Business Declaration as a roadmap for companies to take the lead on climate action. ESBN, through this Green Deal, will lead private sector sustainability efforts to accelerate a green transformation in the region” said the Under-Secretary-General of United Nations and Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), H.E. Armida Salsiah Alisjahbana in her opening remark.
Sanda Ojiambo, Assistant Secretary-General and CEO of the UN Global Compact, spoke about the challenges facing the world today: “Today the world is still struggling to emerge from the coronavirus pandemic – a battle that will only be won when vaccines reach everyone – and remedy the disruptions it has set off in the global economy. Earlier this year, the IPCC published its gloomiest report yet, warning that time is no longer on our side to prevent a climate change catastrophe. And on top of these disasters, the war in Ukraine is posing a direct systemic and persisting threat to global security on three fronts: food, energy and human. In times such as these, business is called upon to act. A reason for optimism is that we are seeing businesses taking action; providing solutions; forming coalitions of the willing. Nevertheless there is still more that needs to be done, particularly with regards to mobilizing the financing and investments required for delivery of the Sustainable Development Goals”
Mr Noppadol Dej-Udom, Chief Sustainability Officer of Chareon Pokphand Group and Secretary General, Global Compact Network Thailand announced that “The UN Global Compact was set up to direct the power of business as a force for good. It started with the recognition that businesses have contributed significantly to create and intensify most of the world’s major problems: climate change, biodiversity loss, air and water pollution, inequality, and violation of human rights.
At the same time, businesses possess the resources and capabilities to help solve these problems. As business leaders, we must shoulder the responsibility of not only addressing our own negative impacts on environment and society – or the ‘do no harm’ approach, but also go further to utilize our energy and expertise to actively help solve those problems.”
Ms Ruenvadee Suwanmongkol, Secretary-General of Security and Exchange Commission Thailand said that “As the Thai capital market regulator, SEC is committed to promoting the development of sustainable investment climate and responsible investment business in line with the UN SDGs. In so doing, we aim to enhance competitiveness, ensure inclusiveness, and strengthen trust and confidence in the Thai capital market. We also seek to increase the knowledge and the sense of ownership of the SDGs with support from the government, businesses, and international organizations. We are driving all our efforts to build the capital market as a key engine for restructuring and digitizing the Thai economy. We believe our continuing efforts will help the economy adapt to the changing landscape and be recognized in the international arena.”
The meeting beginning with the SDGs Ambition session discussing the importance and value of defining and integrating SDGs through supply chain operations. Especially in the past two years, due to the coronavirus situation, plans to achieve net zero have required technology, investment, collaboration, and commitment from top management. In other words, the cost of not initiating anything. The value is higher than the adjustment of each industry. which is unique from different problems.
Gloyta Nathalang, Executive Vice President, Bangchak Corporation Public Company Limited, one of the Thai business leaders who shared the vision and goals of the organization in this session said that it was a great opportunity to exchange experiences and learn about the Sustainable Development Goals with business leaders from other countries in the ASEAN region. Everyone agreed that there must be a clear, achievable goal, giving importance and understanding to this matter from the level of directors, executives, to employees and business stakeholders. UNGC has the SDG Ambition Guide and SDG Tools as tools that make it easier to set clear goals and follow up. Moreover, The cooperation with various partners is also important that the Bangchak Group has set targets for carbon neutrality in 2030 and net zero in 2050, which are unable to achieve these goals on their own. Therefore, the principle of “Leading Inclusively” is applied to lead all stakeholders to achieve this goal together.
The next session was SMEs ASEAN which SMEs leaders discussed the integration of sustainability in SMEs’ operations to create their contributions to the Sustainable Development Goals and unlock market opportunities. It starts with understanding and motivational benefits along with enhancing knowledge and concrete examples, for example, using customer pain points as ideas to develop possible solutions to reach the new generation. And finally, there must be a network or ecosystem, which will allow the exchange of knowledge between each other and easy to cooperate which creates new opportunities business and enable sustainable growth.
The afternoon session started with three key sustainability agendas: Climate emergency & Biodiversity and social development that started with a discussion on how businesses are dealing with climate change and preserving biodiversity that are like two sides of the same crisis and that it is therefore important that these crises are addressed in an integrated manner. The meeting ended with the issue of Social Sustainability. It discusses trends in social investment which will see businesses increase their investment and commitment to social sustainability issues like never before. to create thriving communities and ecosystems.
Mr Peerapong Krinchai, Executive Vice President, Corporate Engineering, CPF Thailand shared that CPF is moving towards cost-effective rotation of natural resources throughout the value chain and zero greenhouse gas emissions. by developing standards for sustainable sourcing of raw materials throughout the supply chain It has set a goal that by 2030, the procurement of 100% of key agricultural raw materials must be traceable and come from areas that do not deforestation and biodiversity. In addition, CPF has also upgraded its data management to connect to the manufacturing process with Blockchain technology to make traceability more accurate and faster.
Mrs Gita Sabharwal the UN Resident Coordinator in Thailand has closed the meeting saying The private sector will play an important role in supporting the country’s aspirations under the UN Sustainable Development Cooperation Framework (UNSDCF) over the next five years. on climate change and promote biodiversity.
UNGC Leaders Summit 2022 : sustainability in ASEAN has underscored how the ASEAN region has been a torch-bearer in the wider Asia-Pacific region in ‘building back better, together.
Thai Airways International will soon sell more seats from its decommissioned Boeing 747 planes to boost its liquidity, the airline announced.
The “TG Warehouse Sale” Facebook page of THAI posted on its wall on Monday that the second round of live sale of Boeing 747 seats might be held on Friday but the schedule is yet to be confirmed.
It said both first-class and economy-class seats of Koito and Recaro brands will be put on sale in the second live session.
It said the number of available seats will be limited like in the first live session.
The page explained that it cannot sell a higher number of seats from the decommissioned planes because the goods have to pass complicated clearance steps and it would require cooperation from its limited number of staff.
The page said THAI plans to sell goods from its non-profit assets to boost its liquidity and the sale will also provide a chance for customers to get rare and impressive items.
The TG Warehouse Sale page opened the first live session on March 29 to sell 30 pairs of seats from its decommissioned planes. The seats were sold at THB35,000 per a pair and each customer was allowed to buy a maximum of three pairs.
The live session managed to sell the 30 pairs of seats within a minute and THAI earned Bt1.05 million. The seats were delivered to buyers in early May.
The baht opened at 34.42 to the US dollar on Wednesday, strengthening from Tuesday’s close of 34.47.
The currency is expected to move in a range between 34.35 and 34.55 on Wednesday, predicted Krungthai Bank market strategist Poon Panichpibool.
Poon said the baht might fluctuate and weaken during the day, especially before and after a key Monetary Policy Committee (MPC) meeting. If the MPC does not provide any signal that it would gradually increase the interest rate even if inflation rises, investors might still feel it will increase the rate eventually and this may force them to offload their bonds, Poon said.
However, whether the baht strengthens or weakens, it may not be by too much especially if the MPC thinks the economy might be improving and the tourism sector recovering better than expected.
Poon said the baht’s resistance level is 34.50 to 34.60 to the dollar – the level at which exporters are waiting to sell the US currency.
He added that the baht might not weaken heavily if investors do not view EM Asia assets as risky.
Poon advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.
Thailand’s rice exports are expected to reach 600,000 to 650,000 tonnes in May on pending delivery contracts, following higher rice demand and the weakening baht, the Thai Rice Exporters Association (TREA) said on Tuesday.
TREA President Charoen Laothamatas said Thailand exported 2,291,916 tonnes of rice worth THB39.44 billion in the past four months (January-April), up 52.7 per cent and 36.4 per cent year on year, respectively.
However, in April alone, Thailand exported 548,636 tonnes of rice worth THB9.97 billion, down 15.3 per cent and 10.0 per cent month on month, he said.
He said the decline in April rice exports were due to rising domestic prices, which led to a hike in the export prices as a result rice importers delayed purchase and delivery.
Charoen Laothamatas
Charoen added that Thailand exported 199,939 tonnes of white rice and 94,572 tonnes of steamed rice in April, down 35 per cent and 18.9 per cent month on month, respectively, due to the aforementioned issues.
However, the export of jasmine rice was up 4.6 per cent compared to the previous month, to 149,594 tonnes, thanks to an increase in export to countries in the Middle East, he said.
As of June 1, the price of 5 per cent white rice in Thailand was US$465 per tonne compared to $423-$427 in Vietnam, $338-$342 in India and $373-$377 in Pakistan.
Meanwhile, Thailand’s price of steamed rice was $480 per tonne compared to $348-$352 in India and $392-$396 in Pakistan.
The government will exempt 60,344 factories from the annual factory licence fee to help operators recover in the aftermath of Covid-19, Industry Minister Suriya Juangroongruangkit said.
Suriya said on Tuesday that he had told the Industrial Works Department to exempt the annual factory licence fee for factories under Category 2 and Category 3. The fees were scheduled to be collected on Thursday. The fee exemption has been granted for three consecutive years.
He explained that it was one of the measures to help recovery for operators who were affected by the pandemic.
Meanwhile, the department’s director-general, Wanchai Phanomchai, said that the Cabinet has approved the decision and it will be published in the Royal Gazette, to be enforced from June 10, 2022, to June 9, 2023.
He said that there are 60,344 Category 2 and 3 factories this year while the total annual factory licence fee collection amounts to THB280 million.
Wanchai said that there is a growing investment trend. The number of factories has grown by 3.5 per cent in fiscal 2022, with an investment budget of THB45.477 billion.
The top three industries with the most number of new factories are: food, metal, and electric appliances and devices.
The Finance Ministry said a move to borrow 30 billion baht to boost liquidity of the Oil Fuel Fund is on hold as the fund is not a juristic entity so cannot apply for the loan itself.
Finance Minister Arkhom Termpittayapaisith said the ministry would submit the issue to the Council of State for legal advice on the fund’s status as a borrower.
“Meanwhile, the Oil Fuel Fund can ask the government to boost its liquidity via the central budget, which would require approval from the Energy Ministry,” Arkhom added.
The diesel price rose today from 32.94 to 33.94 baht per litre, on instructions from the Oil Fuel Fund executive committee.
The Oil Fuel Fund Office says the fund is 86.02 billion in debt – 40.14 billion from subsidising fuel and 35.88 billion baht from subsidising LPG – and only has liquidity of about 10 billion baht.
Thai Chamber of Commerce (TCC) chairman Sanan Angubolkul says a diesel price rise to 35 baht per litre would impact people’s living costs. However, the private sector believes the 35-baht price point is still “manageable” as they have adjusted strategies to cope with the global energy price crisis, he added.
Sanan said 35 baht per litre was still lower than in neighbouring countries, adding that the actual market price was higher.
Federation of Thai Industries (FTI) president Kriangkrai Thianukul said the private sector was more worried about the shortage of raw materials than the rising prices of fuel or products. He explained that global demand for Thai exports remained high, but rising costs could disrupt supply chains in certain industries.
With 20 million Marriott Bonvoy points up for grabs, Westin and Strava kick off month-long global ‘RunWESTIN Challenge’ beginning June 1.
[Bangkok] – A champion of Global Running Day, Westin Hotels & Resorts – part of Marriott Bonvoy’s portfolio of 30 extraordinary hotel brands – today announced it has joined forces with Strava, the leading social platform for athletes and the largest sports community in the world, to reward fitness enthusiasts of all types for getting their hearts rates up beginning June 1. Through this new collaboration, 500 Marriott Bonvoy members will have the chance to earn 40,000 Marriott Bonvoy points each by completing the month-long global ‘RunWESTIN Challenge’ using the Strava app.
As the preeminent well-being brand in hospitality, Westin has consistently supported Global Running Day for more than five years as a means to further encourage guests to stay active while on the road. Westin empowers guests to transcend the rigors of travel through its Six Pillars of well-being: Sleep Well, Eat Well, Move Well, Feel Well, Work Well, and Play Well. Inspired by the brand’s Move Well pillar, this new collaboration with Strava continues to build on the industry-leading programming by Westin.
“The philosophy of Westin has always been rooted in empowering our guests to maintain, and even enhance, their well-being while traveling, so they leave feeling better than when they arrived,” said Jennifer Connell, Global Brand Leader, Westin Hotels & Resorts and Vice President, Distinctive Premium Brands, Marriott International. “With this in mind, and inspired by our foundational Move Well pillar, our unique partnership with Strava aims to motivate a global community of fitness enthusiasts and Marriott Bonvoy members to make wellness a priority and get rewarded for doing so.”
The ‘RunWESTIN Challenge’
Marriott Bonvoy members participating in the Challenge must complete 10 hours of physical activity within the month of June by running, in addition to other types of exercise including walking, biking, wheelchair, and hiking. The challenge of 600 minutes or 10 hours of activity for the month is informed by the American Heart Association’s recommendation of at least 150 minutes – roughly 2.5 hours – of physical activity per week . Upon completion of the Challenge at the end of the month, 500 participating members will then be selected at random to receive 40,000 Marriott Bonvoy points each.
How to Participate
Marriott Bonvoy members can begin registering for the ‘RunWESTIN Challenge’ on May 25 via the Strava app. The Challenge kicks off June 1 and closes June 30 at 11:59 p.m. in each participant’s respective time zone. Members can register at any point throughout June and complete their 10 hours of activity throughout the month in order to be eligible for the 40,000 points.
“Strava empowers athletes everywhere to find joy through movement,” said David Lorsch, Chief Revenue Officer, Strava. “We’re excited to celebrate Global Running Day with Westin and inspire Marriott Bonvoy members around the world to stay active with the power of Strava Challenges this June.”
To learn more about well-being at Westin, please visit www.westin.marriott.com and join the conversation @westin and #runwestin. To download the free Strava app on your smartphone, visit the App store and search for Strava. To download Strava on your desktop, visit https://www.strava.com.
Provide 7 supports for Thai innovative entrepreneurs to conquer the crisis.
The National Innovation Agency (Public Organization) or NIA, Ministry of Higher Education, Science, Research and Innovation launched the project “Tiger Warrior” and sign cooperation agreements for “Non-financial support Mechanism in innovation” with 15 alliances from public sector, private sector and institutions to support innovative entrepreneurs to access to services and benefits from consultants/service providers. The supports cover the entire value chain in 7 areas including innovation manufacturing, innovation management, and innovation for growth. These are like the weapons for Thai entrepreneurs to fight in this crisis era.
Assoc. Prof. Dr. Soranit Siltham, Chairman of the National Innovation Board, said, “Amid challenges and changes in the economy, society and environment, Thailand needs to find new solutions in order to adapt to the new situation. NIA as the main agency for promoting and developing innovation of the country, aims to strengthen open innovation systems through connecting investment and growth opportunities for innovative businesses. Therefore, NIA has developed non-financial support tool called “Tiger Warrior” which is a pilot project to build innovative network and offer access to the services and benefits of 15 alliances. NIA play a role as “Focal Facilitator” to coordinate collaboration between sectors.”
Dr. Pun-Arj Chairatana, Executive Director of the National Innovation Agency (Public Organization) said, “Over the past three years, the global economy has faced three major threats: economic crisis, climate change & pandemic, and extreme inequality which affect entrepreneurs who do not have a plan to encounter difficulties in doing business. Therefore, NIA aim at encouraging entrepreneurs to have knowledge innovation capability and transform them into Innovation Based Enterprise : IBE. Tiger Warrior is one of the projects that support the entire value chain including innovation manufacturing, innovation management, and innovation for growth through services and benefits access from allied agencies which are leading organization in public sector, private sector, and institution. This could be considered as one of pilot mechanism in building. “Innovation Thailand” brand in terms of building a network of entrepreneurs and partner agencies.”
Dr. Krithpaka Boonfueng, Deputy Executive Director (Innovation System) of the National Innovation Agency (Public Organization), said, “Tiger Warrior are NIA’s new support mechanism that focuses on promoting business capabilities of SMEs. NIA supports potential innovative entrepreneurs who are like “tigers” to sharpen their claws from using the services and special privileges which will turn them to the “warrior” who can compete in the changing and uncertain situations. The services are divided into 3 groups, 7 service areas, which are: Innovation Manufacturing: 1) Product/Packaging Design/ Prototype Factory (OEM) 2) Industry Standards Innovation Management: 3) Finance and Accounting 4) Business/Marketing Plan 5) Business Law and Intellectual Property Innovation for Growth: 6) Logistics Management and 7) International Trade”
“Innovative entrepreneurs can get access to services and benefits from 15 partner agencies, including Science and Technology Park, Chiang Mai University (STeP), Food Innovation and Packaging Center (FIN), Thailand Institute of Scientific and Technological Research (TISTR), UIC CERTIFICATION SERVICES COMPANY LIMITED, Accounting Transformation Co., Ltd. (AccRevo), YES YOU CAN Co., Ltd., Builk One Group Co., Ltd., BAKER & MCKENZIE LTD., Intellectual Property Consultoria Office (IP CO) Company, TV DIRECT PUBLIC Co., Ltd., Fast Chip Co., Ltd., CHANWANICH Co., Ltd., Thailand Smart Trade Center (TSTC), eTouch Co.,Ltd. and Thai Business Incubators and Science Parks Association (Thai-BISPA). NIA hopes that “Tiger Warrior” participant entrepreneurs will be able to strongly grow in the business world.”
Charoen Laothamatas
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