The government is now trying to balance both epidemic prevention and economic measures and if the epidemic situation worsens, at least THB250 billion will be borrowed under a special loan decree to tackle the crisis, Finance Minister Arkhom Termpittayapaisith said on Thursday.
He said information about the new Covid-19 Omicron variant is very sketchy and the first move by the government is to prevent the virus from entering the country and spreading.
Prime Minister General Prayut Chan-o-cha has urged more intensive measures, such as screening tourists entering Thailand by using the RT-PCR method instead of antigen test kits.
The Stock Exchange of Thailand (SET) Index closed at 1,591.84 on Thursday, up 1.03 points or 0.06 per cent. Transactions totalled 67.06 billion baht with an index high of 1,592.00 and a low of 1,580.08.
The index rose for two consecutive days after rising by 22.12 points or 1.41 per cent on Wednesday.
The 10 stocks with the highest trade value today were KBANK, SCB, PTT, ADVANC, AOT, CPALL, EA, SABUY, BBL and PTTEP.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 27,753.37, down 182.25 points or 0.65 per cent.
China’s Shanghai SE Composite closed at 3,573.84, down 3.05 points or 0.085 per cent, while the Shenzhen SE Component closed at 14,765.56, down 28.69 points or 0.19 per cent.
Hong Kong’s Hang Seng Index closed at 23,788.93, up 130.01 points or 0.55 per cent.
South Korea’s KOSPI Index closed at 2,945.27, up 45.55 points or 1.57 per cent.
Taiwan’s TAIEX Index closed at 17,724.88, up 138.89 points or 0.79 per cent.
Fifth-generation technology would be a game-changer and enabler for the Thai economy, Total Access Communication (Dtac) CEO Sharad Mehrotra said at the seminar “5G Thailand Big Move” at Siam Kempinski Hotel Bangkok on Thursday.
Mehrotra said he was amazed with how Thailand adopted new technology so quickly. He gave an example, saying the government introduced the “Paotang” application two years ago and gained 40 million users.
He said many countries that adopt 5G still do not adopt QR-code technology.
Public-private partnership is extremely important for the success of 5G, he said.
Mehrotra pointed out that 5G is built on 4G because 5G is more than just a network, it is a platform.
He said 5G brings the fastest computing power, devices, network services and cloudification into one ecosystem. 5G could also supercharge innovation and transformation in Thailand.
He mentioned that 5G is used differently from 4G. 5G has the highest value in industrial applications such as manufacturing. Dtac is not focusing only on commercial 5G to address this opportunity. Dtac is also using industry partners to develop and adopt 5G.
Mehrotra said that 5G will be a game-changer for many industrial applications, especially manufacturing. He said it needs vision and all types of businesses to think “very big”. 5G also needs expertise or a skillset, which Telenor possesses.
According to him, Telenor was named by the European Union as the leader in public-private partnership in 5G innovation with major global partners such as Ericsson, Google, Amazon, and Microsoft.
He said Telenor is a global leader of IoT and smart services, adding that Dtac has teamed up with ABB in automation, WHA Group in smart water management, ASEFA in smart energy and PTT in smart surveillance.
Dtac has also built Thailand’s first private network for analysing Covid-19 risk at its corporate headquarters Dtac House in real-time with Amazon Web Services.
The Total Access CEO said Dtac believes these solutions will be critical in lifting the Thai economy from the current situation: “We are already seeing it start to happen.”
Mehrotra said this ecosystem would have a shorter delivery time, faster manufacturing and reduced energy costs. More new products and services will also be needed post-pandemic and even during lockdowns.
He believed that private networks are the most exciting cases for 5G. It guarantees stable speed because there is no impact from public usage. It also enables edge computing and archives real-time latency within as little as one millisecond.
Mehrotra said 5G private networks have a lot of benefits, especially safety. There have been more cyberattacks during the Covid-19 crisis and 5G private networks offer an air-tight environment, being safer than 4G and WiFi.
He mentioned that the Norwegian armed forces and Atlas Copco use Telenor’s private network because of the firm’s expertise and connection services.
He said 5G adoption depends on mobile services and Thailand’s public-private ecosystem, adding that there is an opportunity to encourage network sharing to increase 5G coverage even faster.
Mehrotra said we need to continue building across the region so Thailand can achieve digital business success on solid ground. He said we need to consider 5G for sustainable development.
The CEO said a great challenge for Thailand in the next 10 years would be climate change. Dtac itself has committed to reducing greenhouse carbon emissions by 50 per cent by 2030. Meanwhile, 5G is 90 per cent more efficient than 4G in Mbps per watt.
Furthermore, 5G’s greatest potential is when it is used as an enabler. 4G can enable a 2.1-billion-tonne reduction in greenhouse gas, 5G could achieve much more, he added.
We are entering a totally digital world, Huawei Technologies (Thailand) CEO Abel Deng told the seminar “5G Thailand Big Move” at Siam Kempinski Hotel Bangkok on Thursday.
Deng said new technologies are forming the foundation of the digital world. It has various characteristics, which are: – All things sensing – All things connected – All things intelligent
He said the Covid-19 pandemic brought about massive disruption and impacts. People had to work, learn, and shop from home in the past one-and-a-half years. Meanwhile, companies and individuals who used the cloud have increased from 26 per cent to as much as 70 per cent.
Deng mentioned that the pandemic has disrupted industries, especially in manufacturing, due to a limited workforce. Companies in every industry have to adopt automation with artificial intelligence and robots to reduce their human workforce and costs while improving efficiency, he added.
He said the pandemic was a crisis but has also brought us opportunities, helping to accelerate the digital transformation.
Deng pointed out that 5G is the cornerstone of digital transformation, especially a digital economy, saying that the formula of connection density (5G+IoT) multiplied with computation power (AI+cloud) is equal to the strength of the digital economy.
He said 5G is not only for telecommunications but is becoming a key driver for economic resilience and economic development. More than 1.2 million base stations have been set up to support 5G, with China being the leader, building almost 900,000 stations in 18 months.
The CEO said countries with a better global connectivity index (GCI) score or relatively better digital infrastructure accommodating especially 5G suffered much less from the pandemic. For example, he claimed China’s GDP would benefit to the tune of €1.9 trillion from 5G within four years.
Deng said 5G is changing the role of new infrastructure. Every industry will come to be empowered by 5G. Massive download and upload speeds will allow smooth transportation of big data by 5G.
He said 5G will redefine digital services including messaging. We will soon be able to use a message to send multimedia or pay bills. 5G will also allow us to see a 360 degree view of competitions and performances. Moreover, 5G with AR technology will provide better navigation, education and shopping experience.
Deng revealed that in Huawei’s factory, all 500 machines and robots have been connected with a 5G network in the production line. It improves production efficiency by 300 per cent while reducing 80 per cent of the human workforce. The production yield has reached 99.05 per cent, which reduces the inspection time from two minutes to a mere six seconds.
The Huawei CEO noted that 5G is leading digital transformation in many sectors, adding that manufacturing, financial, retail, healthcare, oil and gas, agriculture, and mining are major pillars of Thailand’s GDP growth.
According to the Office of the National Digital Economy and Society Commission, 5G will account for 10 per cent of GDP, or THB2.3 trillion, by 2035.
Deng mentioned that Thailand is one of the leaders in 5G infrastructure globally. Bangkok has ranked in the top ten of 5G experience. The country has set up more than 20,000 base stations and over 4.3 million subscribers have adopted 5G. At the industrial level, Thailand has launched a host of pilot projects.
He said the following steps would make 5G successful: – Infrastructure first: infrastructure is always the first step – Public empowerment: make technology accessible and affordable – Policy & investment: for example, 5G is one of China’s national strategies. The Asian giant will invest CNY17 trillion, or US$2.6 trillion, in five years for infrastructure. The EU, and South Korea are also heavily adopting 5G. – Ecosystem & platforms.
Deng proposed the setting up of a national 5G alliance. The goal is to reach people with more skills, train people for increased digital talent, share ideas and inspiration, and support each other for more technology and innovation for future 5G development.
Digital Economy and Society Minister Chaiwut Thanakamanusorn had previously mentioned that Huawei officials held a meeting with Prime Minister Prayut Chan-o-cha, aiming to improve the capability to develop the country’s digital economy and propel Thailand forward digitally.
KPMG in Thailand signed an MOU to support SET in developing an online learning platform for entrepreneurs who wants to grow and expand their business.
SMEs and start-ups are one of the most significant drivers of the Thai economy, contributing to approximately one-third of the country’s GDP. It is undeniable that COVID-19 have had a significant impact on the economy, with SMEs and start-ups facing substantial effects. More than 60% of SMEs faced less income as a direct result of the pandemic.
Charoen Phosamritlert, Chief Executive Officer, KPMG in Thailand, Myanmar and Laos said: “At KPMG, we strongly believe that SMEs and start-ups are one of the major foundation of our economy. Therefore, it is important that we build upon that foundation and strengthen it. This is why KPMG in Thailand’s KPMG Private Enterprise, headed by Sasithorn Pongadisak, has committed to supporting Thai start-ups and SMEs. Moreover, we have signed an MOU with The Federation of Thai Industries (FTI) and the Stock Exchange of Thailand (SET) to provide the foundation, knowledge and tools that these businesses need in order to survive, thrive and expand.”
KPMG in Thailand signed an MOU to support SET in developing an online learning platform for entrepreneurs who wants to grow and expand their business. Moreover, an additional platform to help SMEs and start-ups raise capital was created by SET, called LiVE Exchange. LiVE Exchange is another option for SMEs and start-ups to raise fund in the capital market. KPMG in Thailand believes that this will bring great benefit to the businesses in Thailand.
Today’s business climate is increasingly competitive with many factors that can contribute to the success – or failure – of businesses. KPMG in Thailand has the capability, experts and the conviction to play a part in helping to move the Thai economy forward by guiding start-ups and SMEs through all stages of the business, whether starting the business, growing the business, transitioning the business and strengthening the business.
Through this online learning platform, we will help to equip Thai businesses with the right tools for success.
Sasithorn Pongadisak, Partner and Head of Private Enterprise, KPMG in Thailand said: “All companies have a business cycle – from a start-up to a mature company, and each stage presents its own set of opportunities and challenges. It is important that SMEs and start-ups are aware of these opportunities and challenges and can make strategic decisions that will affect them positively. Equipping SMEs and start-ups with the knowledge and know-how, whether in terms of developing business strategies, business plan or managing their business, will allow them to scale up their business and be more competitive in the market. KPMG also understands that fund raising is an important step to business expansion and growth. And we, the KPMG in Thailand’s Private Enterprise team, is ready to help Thai businesses with this.”
Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Thursday (December 2) would fluctuate between 1,580-1,600 points.
It said the index would be under pressure due to news of the first Covid-19 patient who has been infected with Omicron variant in the US, the Federal Reserve’s signal it would end its quantitative easing programme soon and Bank of Thailand (BOT)’s move against using digital currency for purchasing goods.
However, mass buy-ups of shares which price dropped sharply would help boost the index, Krungsri Securities said.
It also recommended buying of the following companies’ shares as an investment strategy:
▪︎ COM7, SYNEX, BCH, CHG and MEGA, which benefit from the Covid-19 crisis.
▪︎ HANA, KCE, TU, ASIAN, EPG and XO, which benefit from the weakening baht.
Meanwhile, it asked people to beware of mass sell-offs of JMART, RS and XPG due to BOT’s move against using digital currency for purchasing goods.
The price of gold rose by THB50 in morning trade on Thursday.
AGold Traders Association report at 9.26am said the buying price of a gold bar was THB28,400 per baht weight and selling price THB28,500, while the buying and selling price of gold ornaments is THB27,894.40 and THB29,000, respectively.
At close on Wednesday, the buying price of a gold bar was THB28,350 per baht weight and selling price THB28,450, while gold ornaments were THB27,833.76 and THB28,950, respectively.
The spot gold price on Thursday morning hovered around US$1,782 (THB60,272) per ounce after Comex gold at close on Wednesday rose by $7.8 to $1,784.3 per ounce due to support for buying gold as a safe-haven asset after the fall of the US stock market and concerns about the Covid-19 Omicron variant outbreak.
The baht opened at 33.74 to the US dollar on Thursday, weakening from Wednesday’s closing rate of 33.72.
The Thai currency is likely to move between 33.60 and 33.80 to the greenback during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said that the baht is weakening as investors sell Thai stocks or short term bonds. Poon said that the baht will be pressured during the day from the worry of the Omicron variant.
Moreover, the technical signs revealed that the baht is still pressured by weakening factors which cause foreign investors to not invest back in the baht. However, Poon said that the gold price rebound and exporters selling the dollar support the baht to not weaken much more.
According to the technical sign, Poon believed that the baht might strengthen in the next two or three weeks if the scientific research revealed that the vaccine distribution could prevent the spread of the Omicron variant which the economic recovery will not affect much.
The key resistance level for the baht would be from 33.80 to 34 to the dollar, which is the level at which exporters might sell the US currency.
The baht’s key support level would be at 33.40, the level some importers are waiting for so they can buy dollars, he added.
Poon said that the currency market will be highly volatile in this period. Business operators should be cautious and use hedging tools to manage the risk.
The return of stricter covid restrictions to fight the latest variant, omicron, has already left some travelers stranded. For many tourism businesses, its also threatening hopes of an upcoming holiday boost this year – especially after last years shutdowns emptied out popular destinations from the Colosseum in Rome to the resort island of Bali.
“There was a kind of sunrise on the horizon” earlier this year, said Tobias Warnecke, the German hotel association’s economic adviser. Now, thanks to infections and rule changes roaring back, and fears over omicron, “we have a lot of cancellations, and we’re on our way down.”
With scientists rushing to better understand the variant and its high number of mutations, governments including in the United States have started tightening masking, quarantine or travel rules. Many have closed their borders to the southern region of Africa where scientists first detected the variant, though it has since popped up in more than a dozen countries, from Canada to Japan.
The timing also has the aviation industry worried. The president of Emirates airline has noted that a hit to the peak travel season in December could cause “significant traumas in the business,” which had been seeing a recovery.
The pandemic was already projected to cost the world’s tourism sector a loss of $1.6 trillion in 2021, the U.N. tourism body said, an estimate it made shortly before the discovery of the omicron variant, which the World Health Organization warns poses a “very high” global risk.
Revenue from global tourism and arrivals rebounded this year to some extent from 2020, while remaining below 2019 levels before the pandemic battered the sector, the United Nations World Tourism Organization said in a report published this week. Last year, the direct economic loss in tourism was about $2.0 trillion.
“Uneven vaccination rates around the world and new Covid-19 strains could impact the already slow and fragile recovery,” the U.N. body also warned.
Weeks before the spread of omicron, a wave of coronavirus infections had already prompted closures and curfews in much of Europe. Warnecke, from the German hotel association, described the new variant as “another bad news,” although he added it was too early to predict its full impact on hotels before it is clear how it interacts with existing vaccines.
For Golden Tours, a London tour operator that takes visitors to the Warner Bros. Studio Tour – where fans can see the sets from the Harry Potter films – trips are still going ahead but cancellations have started streaming in, according to office supervisor Frank Jacobs.
Britain’s high vaccination rates and the lifting of restrictions – including a mask mandate that has just come back – led to a rise in bookings since the summer and an expectation of booming business for the Christmas holidays, he added. “We had December completely booked up,” he said. “But now since last week, everything is changing.”
Berlin also saw “massive cancellations” in the last two weeks, according to Thomas Lengfelder, head of the city’s hotel and restaurant association. Employees were “once again very unsettled” about the possibility of a new lockdown cutting back work, he said, and called for the ramping up of vaccinations.
Still, some businesses remain optimistic about their Christmas prospects.
For Le Meurice hotel in Paris, as well as others the Dorchester Collection oversees in Rome, London and Los Angeles, omicron has yet to hit holiday bookings beyond a “slight” uptick in cancellations. “So far, despite news of the new variant, the end of this year is still looking positive for us,” the hotel operator said in an email. “2021 has definitely been a better year than 2020 and should remain so.”
The European Central Banks insistence that surging consumer prices wont endure is being tested so repeatedly that inflation now threatens to overshadow a meeting in two weeks time to revamp pandemic stimulus.
That decision was meant to ease the path away from emergency bond-buying while reassuring investors that support won’t be abruptly removed. Instead, President Christine Lagarde may find the focus has switched to when the ECB may tighten monetary policy, just as other major central banks signal they’ll need to act to curb inflation.
She and her colleagues have insisted soaring prices are fueled by temporary factors such as energy costs that will soon start to fade. In contrast, Federal Reserve Chair Jerome Powell enacted a hawkish pivot on Tuesday, suggesting the word “transitory” should no longer be used to describe what’s happening.
Hours earlier, euro-zone inflation exceeded all forecasts to reach 4.9%, with a core gauge stripping out volatile components also at a record for the era of the single currency. Meanwhile, the omicron coronavirus variant is feeding fears of further price-stoking supply bottlenecks, even before scientists determine its health risks.
“Lagarde’s insistence that inflation is a temporary phenomenon is under severe strain,” said Steen Jakobsen, chief investment officer at Saxo Bank. “The political pressure on the ECB to act is ratcheting higher.”
That pressure is on full view in Germany, the region’s largest and probably most inflation-averse economy, where price growth is outstripping the euro region. If it doesn’t ease as expected, “we have to do something,” Chancellor-designate Olaf Scholz told Bild TV in an interview, without specifying what any action may entail.
In the wake of price data this week, money markets have raised bets on the ECB tightening monetary policy, wagering the deposit rate will be lifted by 10 basis points by end-2022, compared with 5 points on Monday.
While the ECB acknowledges inflation will take longer than originally expected to dip back below its 2% target, it maintains that action isn’t needed for now, and argues that Europe is in a different position to the U.S.
About four-fifths of the region’s price pressures reflect shocks generated abroad, Executive Board member Fabio Panetta said in a recent speech. Spending on services remains well below pre-crisis levels, durable-goods consumption is showing “nothing like the boom” seen in the U.S. and core inflation is much lower too, he said.
“The ECB can afford to wait much longer than the Fed to confirm that we’re moving in the same direction,” said Anatoli Annenkov, an economist at Societe Generale in London. “Should we see inflation accelerating more sustainably — with real evidence of wage pressures — that’s when the ECB would need to start worrying.”
The latest bargaining rounds on salaries don’t offer particular reason for concern. Germany’s second-largest union won a 2.8% raise this week in a deal that will affect about 3.5 million people.
Indeed, central bankers should hold their nerve as they watch the global economic recovery slowing and a stronger and longer-than-expected bout of elevated inflation cast a shadow over the outlook, the OECD said Wednesday in a report.
Omicron, however, may pose the greatest uncertainty. There are fears it will tilt consumers further toward goods purchases and away from services, potentially worsening supply snarls and boosting prices.
“There’s a risk that inflation will not go down as quickly and as much as we predicted,” Lagarde’s deputy, Vice President Luis de Guindos, told French newspaper Les Echos in an interview published Tuesday.
A week earlier, before the discovery of the new strain jolted global markets, his Executive Board colleague Isabel Schnabel suggested the price outlook was shifting by describing risks as “skewed to the upside.”
Before omicron’s heath dangers are fully understood, it’s Powell’s pivot in testimony to Congress that’s most likely to put the ECB on the spot.
At their December meeting, policy makers are set to determine the future course of bond-buying following the scheduled end of its pandemic program in March. That judgment was seen as tricky and controversial even before the latest developments.
If inflation is strong enough to change the mind of the world’s most powerful central bank, investors may expect the ECB to follow suit. The task of Lagarde, who’s struggled to snuff out market bets for an interest-rate hike in 2022, may have just got harder.
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