The SET Index was boosted by a clearer picture of the new government, said analysts, after media reported that the launch of a new Cabinet led by Prime Minister Gen Prayut Chan-o-cha was imminent. The Royal endorsement of the Cabinet list came after the market closed, but the daily Index had already risen more than 20 points. Foreign investors maintained their bullish stance, making a net buy of Bt3.3 billion. Institutional investors and brokerage firms bought Bt861 million and Bt58.8 million respectively. But retail investors sold Bt4.2 billion. Total trade volume was Bt73.6 billion, with rise in value led by retail, communication and energy stocks.

He said the Thai workforce was facing digital disruption, and if skills are not developed in time to serve the new system, the workers will end up having to move out of the labour market. He also said that the new government needs to develop the skills of the national workforce so it is ready to serve the Eastern Economic Corridor (EEC).

From 2015 to 2018, investments in the EEC worth Bt1.014 trillion have been approved and most of them are in the sectors of petrochemical, auto, agriculture, bio technology, robotics and aviation.

Most of these industries require workers who have high expertise and the ability to learn quickly. Hence, it should be the government’s top priority to prepare manpower so it can serve the new economy and help push the country towards digital economy in line with the Thailand 4.0 strategy, he said.

Somkiat added that though the new government will continue to drive the EEC in order to boost aggressive investments from the private sector, it should also seek a way of collaborating with neighbouring communities and addressing concerns, especially those related to the environment.

Though Prime Minister General Prayut Chan-o-cha achieved some success in pushing for a digital economy over the past five years, his government also failed in several categories, such has addressing the inherent problem of corruption. He also had to rely on the special powers granted to him by Article 44.

However, as leader of the new government, Prayut will no longer have Article 44 to rely on, which means he will have to manage the country in line with law and by collaborating and communicating with the people.

“It will not be easy for the new government to run the country like it has in the past five years, but if it listens to the people and does what they want, then I believe the administration will be stable,” he said.

Meanwhile, Preedee Daochai, chairman of the Thailand Bankers’ Association, said at a press conference held by the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) on Wednesday that the new government will also have to boost the ease of doing business for Thai exporters and that the Bank of Thailand will have to bring down interest rates as soon as possible to make Thai exports more competitive.

“The Bt10-billion economic stimulus that the new government is expected to implement will not be enough to cushion the decline in Thai exports,” Preedee said.

“The government will have to be more proactive in supporting Thai exporters by implementing short-term measures to boost shipments,” added Kalin Sarasin, chairman of the Board of Trade of Thailand. The short-term measures can include things such as improving logistics infrastructure at Thailand’s borders to cut down on the transportation costs for business, he said.

Kalin also suggested that Thai authorities talk to neighbouring countries about making their customs formalities available 24 hours so the flow of goods within the region can be improved. He cited the 24-hour customs facilities already available at Songkhla’s Sadao district.

He also said Thailand should be allowed to trade in the Thai currency with other countries in order to minimise the risks associated with foreign-exchange volatility.

Another factor having a negative impact on Thai exports is the strong baht, said Supant Mongkolsuthree, chairman of the Thai Federation of Industries.

Since January, the baht has appreciated 5.7 per cent, valuing at Bt30.8 against the US dollar on July 8, which marked the highest level of currency appreciation against the greenback in the Asia-Pacific region, according to Kasikorn Research.

“The baht’s strength against the dollar compared to the currencies of its competitors such as Vietnam makes Thai exports a lot less competitive in international markets,” Supant added.

Hence, he said, it is necessary that the Bank of Thailand immediately implement measures like lowering policy interest rates by at least 0.25 per cent to slow the pace of the baht’s appreciation.

He added that the JSCCIB is looking to set up a meeting by the end of next week with the central bank to address this issue.

The committee has predicted that exports this year will contract 1 per cent from 2018. It had earlier this year projected an export growth of 3 to 5 per cent.

The committee has also brought its earlier forecast for GDP growth this year from 3 per cent to 2.9 per cent.

The US-China trade war continues being a key factor damaging exports, especially in the agriculture and manufacturing sectors, the JSCCIB said.

Banjongjitt Angsusingh, Director-General, revealed that 70 companies in Oman and 67 in Bahrain attended the campaign. Notable attendees included Galfar Engineering & Contracting SAOG, Oman’s largest engineering and construction company, Khimji Ramdas Group (KR), and Nass Commercial, Bahrain’s top distributor of imported products and services.

Thai business operators were able to secure immediate orders of Bt8,58 million and future orders of Bt191.73 million in Oman, while in Bahrain they secured immediate orders of Bt14.52 million and future orders of Bt296.67 million. Product groups that earned the most interest were security equipment, furniture components, building materials, and plants.

“This campaign was a huge success as Thai business operators secured more than Bt500 million in orders from both countries,” she said.

He told The Nation on Wednesday that the third round of issuances of licences for foreign banks would be opened by the end of this year.

On Tuesday, the CBM’s foreign banks selection committee met to approve 15 criteria for the selection of an eligible consulting firm to provide advisory services for the process of awarding licences to foreign banks that already have a representative office in Myanmar.

Soe Thein said the CBM would finalise the selection of the consultancy firm by early next month. Myanmar will select only one consultancy firm among the four finalists: Deloitte Touche Myanmar Vigour Advisory Ltd, PricewaterhouseCoopers (PWC) Myanmar Co, EY UTW Advisory Ltd and Roland Berger Co.

“In late May, we invited a total of eight consultancy services to submit proposals for providing advice on the selection of foreign banks. Half of them submitted RFP [request for proposal] on June 24,” he said.

Firms that did not apply for the CBM’s offer included big names such as KPMG Advisory (Myanmar) Ltd, Baker & Mckenzie Co, Allen & Gledhill Co and Rajah & Tann NK Legal Co.

The deputy governor said the CBM is reviewing the applications to score each of the firms depending on the selection criteria, which include consultancy fees, payment terms, professional background, experience and the academic qualifications of team members.

“The majority of the criteria largely depend on the quality and capability of the consulting firms. We will systematically assess how they’ve formed their teams and how they support us in this selection process,” he said.

“This is the very first stage of the next round of foreign banks licences that we expect to open later this year. We will choose the eligible consulting firm in the next meeting of the foreign banks selection committee, which is expected in the last week of July.”

Myanmar has yet to decide how many foreign banks will be awarded the licences in the next round, the official said.

“First, we [CBM officials] need to discuss with the selected consultancy firm. Later on, we will finalise the details,” he said.

Currently, 13 foreign banks have been awarded licences to open a branch in Myanmar. In 2014, the CBM granted a provisional licence to nine bidders from Australia, Japan, Singapore, China, Thailand and Malaysia. Two years later, four more overseas banks – from Vietnam, South Korea, Taiwan and India – were also awarded permits.

Soe Thein said Myanmar has relaxed restrictions on the licensed foreign banks to some extent. Last November, the CBM allowed the banks to provide import financing and other banking services to local businesses.

“They can provide loans to local enterprises with the same value as local banks,” he said.

“When it comes to providing credits in local currency, we apply the same conditions for both local and foreign banks. It means we ensure there is no discrimination.”

To date, Bangkok Bank is the only Thai bank that has been awarded a foreign banking licence in Myanmar. Having operated in Myanmar for more than two decades, the bank was granted the licence in 2014 and opened its Yangon branch in June 2015.

Four other Thai banks – Siam Commercial (SCB), Krung Thai, Kasikornbank and Export-Import Bank of Thailand, along with BOT Lease (Thailand) Co – are among the 53 foreign banks and finance companies that have a representative office in the country.

Three other Thai banks are likely to apply for the licence when the next round opens, while EXIM Thailand has not yet shown interest.

“In the second round, the selection committee decided to give preference to banks from the countries which were not selected in the first bidding,” said Soe Thein.

“It is still too early to finalise the conditions for the third round but there may be a chance for the banks that are well-prepared,” he added.

Pisit Serewiwattana, the president of EXIM Thailand, said in an earlier interview with The Nation that the bank prefers supporting state-owned banks that are vying for a foreign banking licence rather than establishing a branch in Myanmar.

Kamalkant Agarwal, first executive vice president at SCB, told The Nation earlier that the bank would again apply for the licence in the next round.

“Regarding the licence, we remain hopeful and will definitely keep trying … It is up to the central bank. On our side, we are very keen and whenever there is a new round, we will definitely apply for it,” he said.