It could play a similar role as the Eastern Economic Corridor (EEC) office, which coordinates with related parties in hastening the project’s development, while the Board of Investment should offer more tax incentives to companies planning to invest in digital business.

Thailand’s neighbouring countries have set up one-stop centre to draw foreign investment in the sector, Suphachai said.

Moreover, the government should set up a fund worth between US$100 million to US$1 billion in support of digital investment here and to invest in tech startups, following the lead of Singapore and Israel, he added.

Kalin Sarasin, chairman of the Thai Chamber of Commerce and Board of Trade of Thailand, said the council and the chamber were ready to upgrade Thailand to be the hub of digital innovation in Asean.

He added that the chamber recently introduced the TAG THAI application for booking hotel rooms and airline flights. The app provides an alternative to Thai consumers, apart from those of foreign online travel agencies.

The TAG THAI app was a collaboration of 28 tourism related associations.

The Visa Consumer Payment Attitudes Study 2018 was conducted by Intuit Research on behalf of Visa in 2018 across eight Southeast Asian countries – Thailand, Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore and Vietnam. The study was conducted on at least 4,000 consumers, including 500 working adults in Thailand aged 18-65, covering all education groups with a minimum income of Bt15,000.

The study tracks payment habits and attitudes as well as explores emerging topics related to payments in the eight Southeast Asian nations.

According to the study, 65 per cent of Thai consumers are aware of or currently use wearables to make payments, the highest percentage in the region.

Singapore and Indonesia rank second at 60 per cent, followed by Malaysia and Vietnam at 52 per cent, and the Philippines at 44 per cent.

In addition, Thai consumers have also recorded the highest level of awareness – 66 per cent – in Southeast Asia in using biometrics for payment and authentication. Vietnam and Singapore follow close behind with 60 and 55 per cent, respectively.

“We are heartened that Thai consumers recognise the benefits of innovations and how it contributes to making payments more secure, faster and more convenient,” Visa Thailand manager Suripong Tantiyanon said. “The findings can be attributed to how everyone in the payment ecosystems collaborate, make progress and transform the way consumers and businesses in Thailand make payments.”

Thai respondents also displayed the most comfort across the region in using wearables to make payments. More specifically, they include smartwatches (84 per cent versus the regional average of 71 per cent), wrist bands/bracelets (71 per cent vs 59 per cent) and smart rings (66 per cent vs 52 per cent).

When asked about the most preferred wearable option, Thai respondents indicated smartwatches as their top choice (55 per cent), followed by wrist bands/bracelets (22 per cent), microchip implants (11 per cent), rings (8 per cent) and smart glasses (4 per cent).

At the same time, biometrics are becoming a more preferred method for consumers to authenticate themselves for access and payments, in place of a traditional password. For Thai consumers, 2 in 3 (66 per cent) are aware of biometric payments, the highest level in Southeast Asia.

When asked about the comfort level in using biometrics, Thais expressed the most comfort across three categories, including finger scanning (87 per cent vs the regional average of 78 per cent), retina scan (88 per cent vs 61 per cent), and facial recognition (80 per cent vs 65 per cent).

Further findings show Thai respondents most prefer finger scanning as their top option for biometric payments and authentication (56 per cent), followed by retina scan (26 per cent), facial recognition (12 per cent) and voice recognition (6 per cent).

“In Thailand, we have taken the lead in introducing innovative payment solutions, such as Visa QR payments, contactless technology and cross-border business solutions, while working with our clients and partners to expand the adoption of digital payments. While we are proud of the progress, we remain committed to leveraging our global network and payment innovations to contribute to Thailand’s transition towards a cashless future,” Suripong added.

The bank report that global export value has contracted for the first time in three years. In the first half of 2019, global exports shrank by 2.8 per cent or US$268 billion and Thai exports by 2.9 per cent or $3.6 billion, partly as a result of the US-China trade war which has caused a slowdown in exports of most of Thailand’s trade partners in Asia and Europe.

Faced with a sluggish domestic economy, Thai exporters should diversify their export destinations to new market countries or regions with continued economic growth and little dependence on exports to the US and China.

In addition, they should also put in place a long-term plan to invest in S-curve industries which would help add more value and boost competitiveness of Thai exports of goods and services as well as relieving effects of the trade war that may be prolonged.

The bank’s president Pisit Serewiwattana made the point that the extended US-China trade war has resulted in global trade shrinkage for the first time in three years.

According to the World Trade Organization’s recent findings, in the first six months of 2019, overall global exports shrank by 2.8 per cent or $268 billion, representing 0.3 per cent of global GDP.

Thailand’s main export markets, the US and China with 11 per cent and 12 per cent also felt the impact with export contraction of 2.9 per cent or more than $3.6 billion.

In the first half of 2019, US imports from Thailand expanded to substitute for those from China due to higher prices of Chinese goods in the face of import duty hikes, resulting in an increase in Thai exports to the US by 17 per cent.

However, the overall Thai economy, which is driven principally by exports representing more than 55 per cent of GDP, was inevitably affected by the slowing economies of most of Thailand’s trade partners. And Thailand isn’t feeling the impacts as much as many other countries that rely heavily on exports of goods in China’s supply chain.

In addition, countries that rely more on the US market than the Chinese market are less affected, such as Mexico, Canada, Vietnam, India and Philippines, while countries that depend heavily on the Chinese market, especially South Korea with 27 per cent of total exports going to China recorded an $25 billion contraction in export.

A short-term solution for Thai entrepreneurs is to expedite diversification of export markets to new frontiers in Asia, Africa, Middle America and Latin America, particularly the CLMV (Cambodia, Lao PDR, Myanmar and Vietnam) where purchasing power has increased in line with their consistent economic growth.

Pisit further said that in the long run Thai entrepreneurs need to adjust themselves by expanding investment in S-curve industries, such as investing in Eastern Economic Corridor (EEC), or businesses using new innovations, which would enhance Thai entrepreneurs’ competitive advantage on the global market, and enable them to survive and thrive amid global economic uncertainties, be it the prolonged trade war or new forms of trade measures.

The 10 target or S-curve industries promoted by the government to drive the economy comprise next-generation automotive industry, intelligent electronics, health and wellness tourism, advance agriculture and biotechnology, food processing, robotics, and so on.

“The prevailing trade war represents only one aspect of international economic and political uncertainties, which can weigh on several countries including Thailand,”.

“There are ways for Thai entrepreneurs to weather these difficulties such as being forward-looking in terms of product and market development, starting from production technology development, innovation, and increase in product and service value propositions, as well as ongoing exploration and creation of new business opportunities even in new unfamiliar markets,”

“EXIM Thailand is fully equipped to work with both the public and private sectors to create new trade and investment opportunities for Thai entrepreneurs who are ready to compete in the international trade arena,” Pisit added.

If spending levels remain the same, Airbnb guests are estimated to spend more than Bt940 billion at restaurants and cafes in these same locations in 2019.

In Thailand, a country famous for its cuisine and culinary experiences, Airbnb guests spent more than Bt6.8 billion at restaurants and cafes in 2018.

Airbnb’s mission is to create a world where anyone can belong anywhere. For many travellers, belonging means experiencing a place through local foods and flavors by learning to cook a traditional recipe or discovering neighborhood restaurants and cafes, all while creating authentic memories and connections to a destination.

Unique aspects of the Airbnb community are helping to drive this spending to new places, forge offline connections and keep the benefits local.

-84 per cent of hosts say they recommend restaurants and cafes to guests, driving more people to visit places they might not otherwise discover online. Half of guests say they spent the money they saved by staying on Airbnb in the places they visited, multiplying the economic benefits of the Airbnb community beyond the platform.

-On average Airbnb guests say 42 per cent of their spending occurs in the neighborhoods where they stay, keeping the impacts local and expanding the economic benefits of travel and tourism outside of traditional tourism areas where other accommodation options are often concentrated.

-That restaurants and cafes particularly benefit from these dynamics is no surprise: they are community gathering places, and 77 per cent of guests say wanting to live like a local matters in their decision to use Airbnb.

The influx of tourism spending by Airbnb guests at restaurants and cafes is being felt around the world.In Asia, Airbnb guests spent at least an estimated Bt78 billion at restaurants and cafes in 2018, including more than Bt24 billion in Japan and Bt16 billion in China.

Auramon Supthaweethum, director-general of the Department of Trade Negotiations, said a summary of opinions would be submitted to a committee on international economic policy chaired by deputy Prime Minister Somkid Jatusripitak.

Auramon said many parties support the resumption of trade talks, but concerns were expressed over the possible influx into Thailand of products such as wine and liquor on a zero-per-cent tariff

if a trade pact were ultimately to be signed.

Some parties were worried that access to cheaper wine and liquor would have an adverse impact on public health.

She said Thailand would meanwhile hold further free-trade talks with Turkey next month.

The European Free Trade Association (EFTA), which represents Iceland, Liechtenstein, Norway and Switzerland, has yet to be consulted as to whether it wishes to resume talks with Thailand.

Those negotiations have been stalled for more than 13 years since the initial two rounds held in 2005-2006.

Seven European states established the EFTA in 1960 to promote free trade and economic integration, but Britain, Austria, Denmark and Portugal subsequently opted to join the parallel but competing European Union.

Lichtenstein, previously represented by Switzerland, became a fourth member of the EFTA in 1991.

The cut takes effect on November 11

The rate cut is in response to the government policy to help Thai entrepreneurs as well as drive Thai export growth amid a decline in world trade resulting from various trade barriers and the trade war between the US and China.

The bank’s president Pisit Serewiwattana revealed said that, as a state-owned specialised financial institution with a mission to support Thailand’s exports, imports and investment, Exim Thailand welcomed the Monetary Policy Committee (MPC)’s recent rate cut policy and recognised the need to help facilitate Thai entrepreneurs’ business.

“EXIM Thailand is ready to work in collaboration with both the public and private sectors to support Thai entrepreneurs and SMEs in particular so that they can start up or expand their international trade and investment without interruption amid the current global economic uncertainties and continue to drive Thai economic growth and development,” Pisit added.

The country’s trade activities have been dwindling amid slower economic growth in China – its top export destination – that resulted from its prolonged trade war with the world’s biggest economy.

Still, South-east Asia’s largest economy has managed to expand around 5 per cent in the past few years against the backdrop of an unfavourable global environment, thanks largely to its relatively resilient household consumption, which makes up more than half of its gross domestic product.

The government wants to boost its exports to help the economy to grow by between 5.4 per cent and 6 per cent in the next five years, newly appointed Trade Minister Agus Suparmanto said yesterday.

The move will also be expected to narrow the country’s trade deficit, he added.

“To keep the trade balance in check, our strategy is to raise non-oil-and-gas exports,” he told journalists in a press briefing.

From January to September, Indonesia’s non-oil-and-gas outbound shipments, which make up the largest chunk of exports, declined by 6.22 per cent to US$114.75 billion (S$156 billion) on a yearly basis, whereas its inbound shipments, excluding oil and gas, slipped by 5.54 per cent to US$110.25 billion, according to Statistics Indonesia.

Overall exports settled at US$124.17 billion, down 8 per cent from last year, while its total imports were valued at US$126.12 billion, down 9.12 per cent from a year earlier, resulting in a US$1.95 billion deficit.

The ministry also aims to enlarge non-oil and gas exports by 6.88 per cent to 12.23 per cent annually from next year until 2024 to drive total exports to rise by 4.5 per cent to 8.63 per cent, said Mr Agus, a businessman who runs a shipyard company in the province of Bangka Belitung Islands.

Indonesia still sees room to improve its outbound shipments to its two key markets – China and India, its fourth-largest export destination – particularly with commodities such as bird’s nests to China and palm oil to India.

“We see the market access to China is wide open and we are identifying our domestic products to be exported. Basically, they want goods with good quality that can meet their standards,” Mr Agus said.

He added that greater palm oil exports to India will likely be achieved following New Delhi’s recent move to lower its duties on the commodity.

The trade ministry will also encourage the export of products such as food and beverages, textile and textile products, vehicles, pharmaceutical products, fisheries produce, wood and furniture.

The ministry expects total exports to reach at least US$190 billion next year, up from US$175 billion targeted this year.

A trade mission will be sent to the US, Indonesia’s second-biggest export destination after China, this month to discuss the extension of tariff cuts for Indonesian goods under the US generalised system of preference scheme, said Deputy Trade Minister Jerry Sambuaga.

The facility, which Indonesia has enjoyed since 1980, is under review.

During his visit to Indonesia on Wednesday, US Commerce Secretary Wilbur Ross expressed his hope to resolve the issue soon.

To obtain wider market access globally, Indonesia will soon ratify 13 newly concluded agreements, such as the Indonesia-Australia comprehensive economic partnership agreement (Cepa), while also speeding up negotiations on 11 deals, including Cepas with the European Union and Turkey.

Minister-in-charge of Trade Relations S. Iswaran announced this with EU trade commissioner-designate Phil Hogan at a gala dinner on Friday (Nov 8).

Mr Iswaran said the FTA marks a watershed moment in the relationship between them. It is the first such agreement between the EU, which is the world’s largest single market, and an Asean member state.

He also said it will be a step towards a larger relationship between the EU and Asean, which is expected to be the world’s fourth largest market by 2030.

“This is a an excellent opportunity for companies on both sides, in the EU and in Singapore, and in particular for our small and medium enterprises (SMEs),” said Mr Iswaran.

Singapore will continue to ensure its SMEs can benefit from FTAs, he added, citing last month’s FTA symposium here for SMEs to understand specific aspects of such trade agreements.

Enterprise Singapore has also set up a website where SMEs can access a tariff calculator that will tell them what are their preferential margins for particular products or markets based on Singapore’s 24 existing FTAs, Mr Iswaran said.

The EU-Singapore FTA will allow 84 per cent of Singapore exports, including food products and electronics, to enter the EU duty-free, with the rest to follow in the next three to five years.

It also contains strong rules on trade and sustainable development, including the protection of labour rights and the environment, Mr Iswaran said.

“Under the agreement, the EU and Singapore will remove obstacles to trade and investment in green technologies, as well as foster green public tendering and create new opportunities in environmental services.

“These forward-looking provisions recognise the increasing need for trade to contribute positively towards the fight against climate change and reaffirms our commitment to the Paris Agreement.”

Mr Hogan said a “European Green Deal” will be a priority for the next European Commission – the executive arm of the EU – which will take office next month.

“Singapore will be able to tap into the initiatives that will be proposed to ‘green’ business activities across the EU.

“There will be a lot of money invested in new initiatives and opportunities for environmental services, businesses and software industries that Singapore will be able to take advantage of.”

The State Council, China’s Cabinet, released a guideline on further improving the utilization of foreign investment on Thursday, with pledge to continue shortening the national and free trade zone negative lists for foreign investment and to eliminate restrictions outside the negative lists, opening up more sectors to foreign investors.

All restrictions on the business scope for foreign banks, securities firms and fund management companies will be lifted, while an equal treatment in market access to new energy vehicles produced by domestic and foreign automakers will be ensured by refined policies, the document said.

The guideline also made it clear to deepen reforms to facilitate investment, including to lower the cost of cross-border capital use and make it easier for foreigners to work in China. Foreign businesses will be encouraged to use their capital for equity investment in China.

The country will also strengthen the protection of legitimate interests of foreign investors, fully implementing the Foreign Investment Law, the document said.

Authorities will establish and improve institutions for accepting complaints from foreign enterprises, improve the intellectual property rights protection mechanism, and strictly ban forced transfer of technology.