Gold faces downward pressure after weeks riding high
The price of gold in Thailand was unchanged from Saturday close on Monday morning.
The Gold Traders Association report at 9.31am showed the buying price of a gold bar at THB28,200 per baht weight and selling price at THB28,300, while gold ornaments were priced at THB27,697.32 and THB28,800, respectively.
Gold price rose by THB200 per baht weight last week and by THB1,600 per baht weight in July, with the year’s highest price at THB28,400 per baht weight.
ADVERTISEMENTx
Spot gold on Monday was US$1,812 (THB59,696) per ounce after Comex gold on Friday dropped by $18.6 to $1,817.2 per ounce due to mass sell-offs of the precious metal after its price rose to the highest in six weeks.
Hong Kong gold price, meanwhile, dropped by HK$130 to $16,830 (THB71,321) per tael, the Chinese Gold and Silver Exchange Society reported.
Singapore expat angst forces simmering political debate
Singapore success as a financial hub has long been tied to its openness to global talent. But as the city-state battles to recover from its worst recession, a backlash in some quarters against overseas workers has again forced its way up the political agenda.
Opposition politicians are stepping up scrutiny of jobs taken up by expats, as this perennial debate about Singapore’s reliance on foreign labor sharpens. Some 70% of residents called for strict limits on the number of foreigners coming into the country, according to a survey by the Institute of Policy Studies released earlier this year, even as ministers have recently tried to drive home the importance of attracting talent. More debate in parliament is expected in the coming months.
“We have about four to five local universities that produce so many graduates every year. Things aren’t like 60 years ago,” said Kian Peng, a freelance photographer. “Is the government sure that we still need so many foreign PMEs?” he said, using a common abbreviation for white-collar workers including professionals, managers and executives.
For many foreign companies, Singapore’s low taxes and modern infrastructure make it one of the most attractive places in Asia to do business – particularly as Hong Kong gets caught in the crossfire of U.S.-China tensions. But Singapore’s growing angst about foreign workers, an issue that’s particularly heated in the local press and social media, is putting the government under pressure to explain its approach and could complicate hiring decisions, right as the country is trying to stoke post-pandemic growth.
In response to the backlash, two top ministers issued statements in parliament last month, defending the government’s balancing act of promoting local jobs while ensuring international talent can help the economy thrive.
“We must not inadvertently shake the bedrock that has enabled Singapore to succeed,” Health Minister Ong Ye Kung, a former trade negotiator, told lawmakers. “We cannot survive, we cannot earn a living, without being connected to the world, without being welcoming to the world.”
Singapore’s central bank chief has also weighed in on this debate. In a series of lectures that ended last week, Ravi Menon, the managing director of the Monetary Authority of Singapore, said Wednesday that even though net jobs for locals rose and there were plenty of vacancies during the first quarter, there are still many others who are unemployed. While that feeds into concerns over jobs, he also noted that the economy has benefited from the contributions of foreign talent.
“We are a labor short economy facing acute skills shortages that we have had to rely on well-qualified foreigners to fill,” said Menon, who was speaking in a personal capacity. “Let us also acknowledge that many foreigners who come here to work are highly qualified, passionate about their work, and decent people. They work hard, keep late nights, deliver good products and services, and contribute to our society.”
Still, the environment has undeniably shifted.
Banks, fund managers and consulting firms are among companies that have come under heightened scrutiny as the government cracks down on suspected pre-selection of foreigners for jobs or not giving Singaporeans a fair chance.
The framework for granting employment passes has been tightened, with the minimum qualifying salary threshold for executive and mid-level roles rising in the past year.
Unlike before, foreigners living as dependents now need a company sponsored visa to work – a contrast to employment rules in Hong Kong where dependents of permanent residents and foreign professionals face no prohibitions. And while the government introduced a two-year visa to attract global technology professionals last year, the program is not open to mid-career talent that could compete against locals for jobs.
The shift is also being felt in blue-collar industries. The government said during the budget in February it will reduce the proportion of foreign workers in the manufacturing sector to 15% by 2023 from the current 20%. Two years ago, it announced it would reduce foreign-worker quotas for the service industry to 35% by 2021 from 40% in 2019.
“To an extent, the economic effects of the pandemic have muted the effects of these restrictions,” said Devadas Krishnadas, CEO of Future-Moves Group, a boutique consultancy focused on public policy and corporate strategy. “However, should these restrictions remain in place during the economic recovery, it will be a cause of frustration in the sourcing of the best available talent from a global hinterland.”
ADVERTISEMENTx
Covid-related travel restrictions, including delays in processing entry permits, are compounding hiring challenges, according to the Singapore International Chamber of Commerce.
“City-states are fragile economic units, they need a vibrant economy to survive,” said Victor Mills, the chamber’s chief executive officer. “We all need to recognize that this is about team work, local and foreign talent working together for the benefit of their companies, their customers and for society at large.”
Nevertheless, foreign labor has long been a flash point in Singaporean politics. A decade ago, discontent over immigration saw the ruling party get 60.1% of the popular vote, its worst ever election result.
In last year’s general election, the leading opposition party, the Workers’ Party, which secured its best-ever performance with 10 out of 93 parliamentary seats, published a manifesto that included tightening employment pass approvals and giving firms incentives for hiring citizens.
Foreign labor has been a hot button issue during elections “due to their far-reaching impact, including contributing toward increasing perceptions of unfair job opportunities for locals, an overcrowded transport system as well as rising property prices,” said Nydia Ngiow, Singapore-based senior director at BowerGroupAsia, a strategic policy advisory firm.
ADVERTISEMENT
The number of permanent residency visas granted – an immigration status that is second to full citizenship – has been falling, hovering around 30,000 since 2010 from a high of 79,167 in 2008.
The number of employment passes – issued for professional roles that pay at least S$4,500 ($3,323) per month – fell 8.6% in 2020 from the previous year, according to Ministry of Manpower data. That’s in part due to the pandemic-induced recession and the tighter restrictions.
According to a mid-year business sentiment survey by the British Chamber of Commerce Singapore, the number of foreigners working in the city state contracted by 18% in the first half of 2021.
The decline isn’t enough for some.
“While it’s undeniable that there is a need for foreign workers in a lot of industries and jobs, it’s inevitable that they have replaced Singaporeans in some sectors such as technology,” said Ethan Tan, a fresh graduate looking to pursue postgraduate studies, summing up the view of those in his social circle. “The government must accept that what they thought was balancing, is obviously not working as well as it should.”
ADVERTISEMENT
According to the study released in March by the Institute of Policy Studies, some 43.6% of the 2,012 Singapore residents said they believed immigration increases unemployment, though this was lower than those polled in Hong Kong, Malaysia and Taiwan. As for the 70% in Singapore who sought strict entry limits for foreigners, this figure was higher only in Malaysia and Taiwan, out of nine countries polled.
In the July 6 parliamentary debate, Health Minister Ong said foreign professionals “help cushion the impact on the local workforce when times are bad” and “bear the brunt of job losses” during a downturn. During the pandemic for the 12 months to April this year, the number of employment pass holders dropped by about 21,600, he added.
Even so, the country’s citizen unemployment rate hit 4.9% in the third quarter of 2020, the highest since the same period in 2009, government data show. This rate fell to 3.8% in the second quarter, according to preliminary data on Friday from the manpower ministry. It said that tightened virus measures and flare up in Covid-19 cases globally had “dampened hiring sentiments among companies.”
Mustafa Izzuddin, a senior international affairs analyst at consultancy firm Solaris Strategies Singapore, said the tightening of rules around foreign labor shouldn’t be read as the country closing its doors.
The government maintains a “delicate balancing act, between people and businesses” and such policy tweaks would remain necessary as it seeks to find common ground, he said.
Published : August 02, 2021
By : Syndication Washington Post, Bloomberg · Kwan Wei Kevin Tan
THAI sells prime properties in bid to generate cash flow
Thai Airways International (THAI) on Saturday announced the sale of its assets at prime locations, such as Lan Luang, Si Lom, Don Mueang and Phuket, to boost cash flow.
The announcement was made via “TG Property For Sale” Facebook page, which posts properties for sale at several locations in Bangkok, Phuket, Khon Kaen, Udon Thani, and Phitsanulok provinces.
THAI had sought permission from the bankruptcy court to sell the assets. The company’s crew centre in Lak Si, in Bangkok’s Don Muang district, was sold in an auction to Energy Complex, a subsidiary of PTT, for THB1.81 billion.
The flight prohibition order in the “dark red” zones due to the new Covid-19 wave has forced THAI to further curtail its flights. The company is only allowed to operate special flights to transport Thai citizens back to Thailand, cargo flights, and five international flights to Phuket, routing from Frankfurt, Paris, London, Zurich, and Copenhagen. International flights from Copenhagen to Phuket will be temporarily paused from August 1 to September 30.
Thai Airways is currently in the process of financial sourcing under its business rehabilitation plan, which is time consuming, as a result the company is unable to generate enough cash flow. It has had to put its assets up for sale in a bid to stay solvent.
For information on THAI properties on sale, call (02) 545 2176, (081) 813 5968 or email Propertyforsale@thaiairways.com.
Thai AirAsia shuts operations in August due to domestic flight ban
Thai AirAsia will temporarily cease all operations in August, due to zero revenue following the ban on domestic flights in the “dark red” provinces, in order to meet the conditions of social security assistance.
Employees were paid 50 per cent of their salary in July and the balance payment is postponed to September.
Thai AirAsia Co Ltd announced on Sunday that the company’s board had approved a temporary closure of operations at a meeting on July 29.
At the meeting, the management team explained to the employees that the company had always done its best to manage and seek funds to mitigate the impact. But, due to the third wave of the pandemic since April and the flight prohibition order in the “dark red” zones since July 21, the company has encountered a lack of cash flow and the situation was worse than expected. Therefore, it became necessary to announce short-term measures to postpone employees’ salaries for July-August.
In July, Thai AirAsia’s active employees were to be paid 50 per cent of their salary and another 50 per cent in September, while all managers and senior executives’ payments are postponed to September. In August, the company will be temporary closed for all operations in order to receive social security compensation. The situation is expected to ease in September which will allow the company to receive funds, be able to operate flights, and pay its staff full salary, the compantly said.
At the end of the meeting, Thai AirAsia executives thanked the employees for their understanding, sacrifice, and cooperation. The management team promised to continue to resolve the issues and apologised for any impact they might have caused by not handling the situation well enough.
Thai aviation industry sinking deeper as Covid shuts down travel and tourism: CAAT
Thailands aviation industry is still moving in a downward trajectory due to uncertainty over the Covid-19 outbreak among Thai and foreign tourists, the Civil Aviation Authority of Thailand (CAAT) said on Saturday.
It said the volume of passengers and flights in the second quarter of this year dropped by 35.5 per cent and 27.8 per cent year on year, respectively.
Meanwhile, the volume of air freight has slightly risen by 0.01 per cent compared to the same period last year, it added.
Citing the Bank of Thailand’s forecast, the CAAT said many negative sentiments pressured the aviation industry, such as the vaccination rate and sluggish recovery in the tourism sector’s recovery.
“If the government can procure and distribute 100 million doses of Covid-19 vaccines within this year, herd immunity is expected to be created within the first quarter of next year which is too late because the country’s tourism season will begin from October this year,” the CAAT explained.
The CAAT said the slowdown in the tourism sector’s recovery also affected the aviation industry because Thailand was unable to ease quarantine measures within the second quarter of this year, while the crisis is likely to prolong.
It added that the number of foreign tourists visiting Thailand this year is expected to drop to 700,000 people and 10 million people next year, compared to the previous forecast of 3 million people this year and 21.5 million people in 2022.
“The authority does not expect the aviation industry to recover significantly this year as the Covid-19 crisis is becoming more severe, while Thailand has imposed travel restrictions which directly affect the tourism sector,” the CAAT said.
ADVERTISEMENT
Meanwhile, Airports of Thailand president Nitinai Sirismatthakarn said that the six airports in July saw 10,000 travellers per day, down 80 per cent year on year.
BTS Group Holdings wins Transport Deal of the Year award
BTS Group Holdings has bagged the “Transport Deal of the Year” title at The Asset Triple A Infrastructure Awards 2021 held by The Asset, an Asian financial magazine, the company said in a press release.
BTS Group Holdings has bagged the “Transport Deal of the Year” title at The Asset Triple A Infrastructure Awards 2021 held by The Asset, an Asian financial magazine, the company said in a press release.
The award was given to the firm after it issued green bonds in November 2020 to raise funds for investment in sustainable infrastructure, such as the MRT Yellow and Pink lines.
This underlines the fact that BTS Group is running its business with an eye on the environment.
HKTDC’s twin jewellery shows conclude today Nearly 30% of public visitors spend more than HK$10,000
HKTDC’s twin jewellery shows conclude today Nearly 30% of public visitors spend more than HK$10,000 each Jewellers see travel restrictions as key business challenge
The 37th HKTDC Hong Kong International Jewellery Show and 7th HKTDC Hong Kong International Diamond, Gem & Pearl Show, organised by the Hong Kong Trade Development Council (HKTDC), concluded today. In addition to trade buyers, the twin shows were also open to jewellery-loving public visitors for the first time this year. The five-day shows attracted more than 13,700 industry buyers and over 17,000 public visitors who came to explore and purchase a wide array of jewellery products. The twin shows also run online until 5 August to enable global jewellers and traders to engage in business talks via video conferencing, with more than 1,200 online meetings between exhibitors and buyers arranged. As of 29 July, the online edition of the shows recorded some 2,500 buyers exploring products and conducting business discussions online.
Recovering purchasing power creates new opportunities
With the pandemic changing the global economy and international travel restrictions disrupting regular business travel, enterprises are looking to conduct cross-border business through both online and physical channels. Benjamin Chau, Acting Executive Director of the HKTDC, said: “An independent survey conducted on-site found that 44% of the interviewed exhibitors and buyers considered business travel restrictions during the pandemic as the biggest current challenge. On a more positive note, 31% and 19% of respondents respectively believed that the recovering purchasing power of customers and business leads driven by e-tailing would be the main source of new business opportunities this year.”
Mr Chau continued: “The HKTDC is adopting a strategy that clearly aligns with the survey results. Addressing both exhibitors’ needs and market trends, we made a swift decision to open the twin shows to public visitors for the first time. This has enabled exhibitors to reach out to more retail clients and broaden their customer base. Also, the fact that the two shows run in a unique physical and online format for the first time has helped to create more business opportunities for traders.”
During the shows, the HKTDC conducted an on-site survey in which more than 800 exhibitors and buyers were interviewed. The survey found that buyers and exhibitors remain cautious regarding the market outlook, with 54% of respondents expecting overall sales to decrease this year and only 29% expected sales to remain unchanged. In terms of sourcing prices and production costs, 45% of respondents said they were under more pressure. Despite this, more than half of them (54%) expected that retail prices will remain unchanged.
ADVERTISEMENTx
HKTDC’s twin jewellery shows conclude today Nearly 30% of public visitors spend more than HK$10,000
Diamond jewellery items were the most popular products purchased at the shows
Regarding the growth prospects for jewellery products in major countries and regions over the next two years, respondents considered that North America (41%), Western Europe (33%) and Hong Kong (31%) were the most promising traditional markets, while Mainland China was considered by 51% as the most promising emerging market. Hong Kong was recognised by interviewed buyers as an ideal sourcing hub, with quality (75%), use of material (73%) and services (71%) being the three most appreciated aspects.
In terms of popular product categories, the survey found that nearly half (49%) of the respondents favoured karat-white gold, followed by karat-rose gold (42%) and karat-yellow gold (38%). Diamonds remained the most popular (54%) among all gemstones.
HKTDC’s twin jewellery shows conclude today Nearly 30% of public visitors spend more than HK$10,000Half of the respondents expected trendy fashion jewellery to have the greatest market potential. The survey also found that 28% of public visitors interviewed had spent more than HK$10,000 each on-site and that diamond jewellery items were the most popular products (51%) purchased at the shows.
ADVERTISEMENT
Exhibitors value jewellery shows as effective business platforms
The twin shows were the first two physical trade fairs staged by the HKTDC since the pandemic began, creating business opportunities for exhibitors and buyers alike.
A Hong Kong exhibitor, Just Gold Company Limited, joined the Jewellery Show for the first time this year. Arthur Tang, the company’s Managing Director, Greater China, shared that the show was an effective business platform that helped their company enhance its branding and increase market exposure. “We promoted our new designs as well as special collections for our 30th anniversary. A number of buyers approached us to enquire more about our products. We’ve already concluded some business deals and the response has been encouraging,” said Mr Tang.
Another exhibitor, Yvonne Pong, Director, Wing Hang South Sea Pearl Company Limited, considered the Jewellery Show as the perfect place to promote their pearl jewellery collections and drive new business. “Customers love our classic designs, and jewellery with gold-coloured pearls is particularly sought after. The response has been better than expected. We’ve met some quality buyers, including a number of new customers,” she said. “The HKTDC has done an excellent job making the show a success despite the pandemic. I am confident the show will get even better, with more overseas buyers coming to source products once travel restrictions are lifted.”
HKTDC’s twin jewellery shows conclude today Nearly 30% of public visitors spend more than HK$10,000A local buyer, Edmond Chan, Head of Jewelry Asia, Luxeford Hong Kong Limited, was pleased to see the Jewellery Show being staged again. “We specialise in purchasing high-end jewellery and watches. I am here looking for partners and to find suitable products. I’ve already found an exhibitor to explore cooperation with whose jewellery collection boasts some outstanding designs,” he said.
ADVERTISEMENT
A host of activities were held during the two shows, including seminars on changes that the pandemic and online marketing have brought to the jewellery industry supply chain, a series of expert talks tailor-made to guide the public on the appreciation of rare-colour diamonds and pearl evaluation methods, jewellery smart bidding session, workshop, lucky draws and jewellery parades. These events not only facilitated the exchange of market intelligence among industry players, but also enhanced public knowledge about gemstones and jewellery products.
HKTDC’s twin jewellery shows conclude today Nearly 30% of public visitors spend more than HK$10,000Physical edition of International Sourcing Show ends concurrently
The physical edition of the HKTDC International Sourcing Show also ended today, the 4-day show attracted over 14,000 buyers to attend or explore products online. To help local small and medium-sized enterprises (SMEs) grasp business opportunities, the HKTDC contacted quality buyers through its network of 50 offices worldwide and arranged close to 1,100 business matching meetings during the physical show.
This physical edition of the International Sourcing Show was complemented by an online element, which started in March, enabling traders to stay connected both online and offline and boosting business opportunities during the pandemic.
Fully booked Sansiri projects show property demand in tourism provinces still high
Property company Sansiri (SIRI) says demand for properties in Thailand’s tourism provinces remains high, after its “1517 NIMMAN” project sold out within three weeks of opening.
Uthai Uthaisangsuk, SIRI chief operating officer, explained that the mixed project comprises business and residential units nestled amid Chiang Mai’s trendy Nimman business district and shopping zone.
He said the sold-out units were a strong sign that tourism and the economy are recovering in the northern province.
The roaring success of 1517 NIMMAN comes after two Sansiri condominiums in Chiang Mai – D condo Rin and D condo Ping – sold out in the past year.
As well as Chiang Mai, Sansiri also sees potential for growth in Phuket following the return of foreign tourists in the Sandbox scheme launched in the province on July 1.
ADVERTISEMENTx
Fully booked Sansiri projects show property demand in tourism provinces still highUthai said Sansiri has organised the promotion #โปรSAVEทั้งเกาะ (#save all the island) to showcase two projects – the Anasiri Paklok and Siri Place Airport Phuket.
Meanwhile, over 80 per cent of units at “The Base Central Phuket” condominium have already been transferred to their new owners, the chief operating officer added.
For safety and convenience during the Covid-19 situation, Sansiri has introduced a virtual sales gallery, online booking and booked private tours for those interested in its properties. Meanwhile, all of its staff have been vaccinated and the company is continuing to help people suffering Covid-19 impacts, Uthai said.
The Stock Exchange of Thailand (SET) Index closed at 1,521.92 on Friday, down 15.86 points or 1.03 per cent. Transactions totalled THB87.72 billion with an index high of 1,539.03 and a low of 1,516.77.
In the morning session, Krungsri Securities predicted the index would fluctuate between 1,530 and 1,550 points after the US Federal Reserve kept its interest rate at 0.25 per cent and maintained quantitative easing, while the oil price rose.
It also said the index would be under pressure from rising domestic Covid-19 cases and volatility in foreign fund flows.
ADVERTISEMENTx
The 10 stocks with the highest trade value today were DTAC, TOP, PTT, KBANK, SCC, 7UP, ADVANC, PTTEP, GPSC and SCGP.
Other Asian indices were on the slide:
Japan’s Nikkei Index closed at 27,283.59, down 498.83 points or 1.80 per cent.
China’s Shanghai SE Composite Index closed at 3,397.36, down 14.37 points or 0.42 per cent, while the Shenzhen SE Component Index closed at 14,473.21, down 42.11 points or 0.29 per cent.
Hong Kong’s Hang Seng Index closed at 25,961.03, down 354.29 points or 1.35 per cent.
South Korea’s KOSPI closed at 3,202.32, down 40.33 points or 1.24 per cent.
Taiwan’s TAIEX closed at 17,247.41, down 155.40 points or 0.89 per cent.
Streaming trend driving 6% rise in Thai entertainment-media revenue this year: PwC
Thai entertainment and media (E&M) revenues are forecast to climb above 500 billion baht this year, bouncing back from a drop of 6 per cent last year (484 billion baht) during the Covid-19 crisis. The forecast comes from PwC’s Global Entertainment & Media Outlook 2021-2025, which estimates E&M revenues will grow by 4.45 per cent to hit 601 billion baht in 2025.
Driving this year’s revenue rise is the resurgence of cinema, music, radio and podcasts and out-of-home advertising businesses, PwC said.
“While the Entertainment and Media outlook in Thailand will continue to be impacted by the pandemic this year, some E&M segments have benefited from a consumer shift toward digital platforms. This has helped offset the slower growth in other major segments that we saw a year earlier. We expect to see average growth over the next five years to be around 4 to 5 per cent per year,” said Tithinun Vankeo, assurance partner and entertainment & media leader for PwC Thailand.
PwC’s Outlook forecasts the top three fastest-growing segments this year will be cinema (growing at 47% from last year to 7.8 billion baht), followed by music, radio and podcasts (27% to 11.9 billion baht) and finally out-of-home advertising (24% to 5 billion baht).
In contrast, the traditional TV-and-home video segment and the books segment will be the most vulnerable, shrinking 3 per cent and 2 per cent respectively.
The spending rebound for Thai E&M is in line with global spending, which is expected to grow 7 per cent from last year to 68 trillion baht (US$2 trillion) with 4.61 per cent annual growth across the next five years. This growth is fuelled by strong demand for digital content and advertising.
ADVERTISEMENTx
Streaming a game-changer for Thai E&M
Outlook shows that Covid-19 is driving shifts in the E&M industry as a whole. Cinema visits have dropped in favour of streaming platforms. And since they’re stuck inside, many younger consumers immerse themselves in their mobile devices, searching for content and playing games.
“As long as consumers spend more and more time on online platforms, over-the-top video and streaming video businesses will keep up their pace and continue to grow,” Tithinun said.
“We’re seeing the rising trend of competitiveness in OTT video and subscription video-on-demand business, both in terms of price and promotion. Video games and e-sports is another segment that has been growing continuously for many years, and according to the study, Thailand has the highest number of people who play video games in the world,” she said.
According to the Digital 2021: Thailand report by DataReportal, there were 48.59 million internet users in Thailand in January 2021. Internet penetration stood at 69.5 per cent and the country also had 90.66 million mobile connections in the same period. These statistics indicate an increasing demand for media and entertainment.
“The popularity of OTT and video streaming will create more opportunities, but also more challenges. Operators will see more and more competition and will have to formulate strategies to penetrate the growing market and generate sales.
“Choosing the right platforms and content customised for each target audience, together with understanding the external and internal context and market factors, will help operators to adapt and offer services or content at the expected speed. These will help create a competitive advantage as well,” Tithinun said.