Target headline inflation in Thailand set at 1-3% for 2023
TUESDAY, DECEMBER 27, 2022
The Cabinet has okayed targeted headline inflation in the range of 1-3% for 2023, the same as it did for this year.
A Government House source said on Tuesday that the Cabinet had been informed by a central bank representative that though the actual headline inflation this year was higher than targeted, it was temporary due to rising energy prices.
The source quoted the central bank’s representative as saying that global energy prices had risen due to the Russia-Ukraine war and the global economic fallout of the Covid-19 pandemic.
The Bank of Thailand representative also assured the Cabinet that the situation will improve next year, prompting the decision to set the targeted inflation rate at 1-3%.
The central bank has reported that the headline inflation for November stood at 5.55%. In October, the Commerce Ministry announced that the 12-month average headline inflation from October 2021 to September 2022 was 5.23%.
Headline inflation is a measure of total inflation in an economy, including the price of commodities like food and energy, which are more volatile and prone to inflationary spikes.
Thai exporters warned new EU deforestation edict could lead to bans
TUESDAY, DECEMBER 27, 2022
Thai exports in seven categories could be affected by the European Union’s new law on deforestation-free products, the Department of Trade Negotiations (DTN) warns.
Talks between the European Commission, the European Parliament and the EU Council took place on December 6 to finalise details of the deforestation policy, DTN director-general Auramon Supthaweethum said on Monday.
The DTN expects the new regulations to take effect from June next year, when Thai exports in seven categories could be banned if the EU finds they have contributed to deforestation. Thai exports under the deforestation spotlight are beef, paper for printing, palm oil, soy, coffee, cocoa and rubber.
Auramon said the new regulation will be imposed on EU trade partners at different levels depending on their deforestation risk. The European Union is currently revising its definition of deforestation and classifying trade partners according to three risk levels: high, medium and low, she said.
The regulation will also require EU importers to carry out comprehensive, effective and continuous due diligence to prove that their products are not linked to deforestation or forest degradation.
Auramon advised Thai exporters to follow progress of the regulation closely so they can adjust their practices to avoid impacts on their business.
Last year, Thai rubber exports to the EU were worth US$1.69 billion, or 8% of total rubber exports, while Thai wood exports to the EU were worth $22.6 million, or 9% of the total. Thai export volume of other products on the list – beef, soy, cocoa and palm oil, is relatively low at less than 1% of total exports in each category.
New study finds 8.1 million people in Thailand poor, 4.4 million below poverty line
MONDAY, DECEMBER 26, 2022
As many as 8.1 million Thais are poor and 4.4 million of them are living below the poverty line, the latest National Economic and Social Development Council (NESDC) report shows.
The report on Thailand’s poverty situation in 2021, which was released this year, said that the number of people living below the poverty line had dropped from 4.7 million in 2020 to 4.4 million last year.
“This is all thanks to the government’s economic stimulus measures to ease the financial burden on poor people, such as measures to increase purchasing power and utility bill cuts,” NESDC said.
However, NESDC found that poverty from other dimensions other than just income in Thailand is far more severe.
Citing its Multidimensional Poverty Index (MPI) which identifies four dimensions of poverty, namely education, health, quality of living and financial stability, it said 8.1 million Thais are suffering from poverty.
“As many as 36.9% of them are the elderly, while 51.5% are those who do not contribute to the economy, like children, the mentally ill, the ill or the unemployed,” NESDC said.
In the education sector, it said, more children have dropped out of school, especially those who are not living with their parents.
More than 280,000 students have been recorded as having dropped out of school last year due to poverty, the report said.
In terms of health, it said poor people suffer from the lack of access to clean water and nutrition, adding that people’s access to basic utilities is still limited, especially in remote areas.
When it comes to quality of living, it said 2.8 million people do not have access to the internet as signals do not reach all locations and many people are not able to pay internet fees.
When it comes to financial security, the report said many workers do not have access to social security and their earnings are not enough to make ends meet.
This has resulted in rising debts and problems with saving money, it said.
To solve these issues, NESDC has advised the government to improve information systems and launch policies to boost people’s quality of life.
“Government agencies should come up with policy packages that solve multidimensional poverty, such as improving financial literacy among people,” it added.
Cortina Watch’s Golden Jubilee culminates amid the splendour of love and joy
MONDAY, DECEMBER 26, 2022
2022 marks a monumental year for Cortina Watch as it commemorates its 50th year of becoming one of Asia Pacific’s foremost luxury watch retailers and distributors.
The gala traced the growth and transformation of Cortina Watch over the past half a century, from its humble beginning as a family-run retail store that debuted amid the quartz crisis and subsequently growing from strength to strength to becoming a publicly listed company with over 40 boutiques region, including Singapore, Malaysia, Thailand, Indonesia, Hong Kong, Taiwan, and Australia. Throughout the years, Cortina Watch has stayed true to the vision of its founder, Mr Anthony Lim, by putting the core values of trust, loyalty, and reliability at the heart of the business.
This year, Cortina Watch also marked this epic milestone with a series of commemorative events. Some of them include Patek Philippe’s travelling exhibition showcasing some of Cortina Watch’s collection of unique dome clocks and both past and present anniversary editions from the Swiss watchmaker, the Blancpain Fifty Fathoms Bathyscape exhibition, “Happy Sport – Tale of an Icon” exhibition with Chopard, followed by a Franck Muller exhibition in September. Furthermore, Singapore Heart Foundation’s (SHF) third wellness facility – the SHF-Cortina Watch Heart Wellness Centre, was officially unveiled in August. Cortina Watch also collaborated with eight brand partners to launch exclusive celebratory edition timepieces. Together with Patek Philippe, Blancpain, Cartier, Chopard, Corum, Franck Muller, H. Moser & Cie., and Tag Heuer, a total of 16 limited edition models were presented as part of the golden jubilee festivities. Key management personnel of Cortina Watch’s longstanding brand partners also sent in personal congratulatory messages. Some even flew to convene for Cortina Watch’s monumental celebratory gala dinner at the Ritz-Carlton Millennia Singapore on 19 November.
During the gala dinner, Jeremy Lim, CEO of Cortina Watch & COO of Cortina Holdings, attributed the success of Cortina Watch to the strong foundation laid down by its founder, as well as the passion and steadfastness of its staff. “Had it not for our chairman Mr Anthony Lim, who made a bold decision to start Cortina Watch 50 years ago, we probably would not be here today celebrating our golden jubilee. In our business, trust and passion are always key to our success. And it is the trust that has enabled us to build longstanding relationships with all our brand partners and business associates. Cortina has gone through many ups and downs over the past 50 years, including many recessions and adverse economic situations, not forgetting a pandemic that has made everything even more challenging. However, we have steered through these challenges because of our dedicated and passionate team of employees.”
Since launching its first boutique at the Colombo Court in 1972, Cortina Watch has served customers for half a century. Thanks to close bonds fostered between sales staff and their customers, many of these loyal customers have been with Cortina Watch since the beginning. Some have even progressed to building multi-generational relationships with the watch retailer.
Mr Sunny Lau, Senior Boutique Manager of Cortina Watch Singapore, has even worked at the company since the beginning and gave his best throughout the past five decades. He beams with pride as he looks back on his days starting out, “I started with Cortina Watch in 1972 and personally witnessed our growth from a humble store in Colombo Court to an international corporation. It was definitely not a bed of roses all the way, but as we grew from strength to strength together, I was rewarded with the most wonderful experiences, and I would not have traded them with anything else.”
Cortina Watch’s founder and Chairman, Mr Anthony Lim, also expressed his heartfelt gratitude towards these dedicated staff. He says with great appreciation, “Our employees are a part of our family. We cherish them and their efforts in lifting the company up. Our success is theirs. Loyalty is a two-way street — we need to be as devoted to our staff, partners and customers as much as they are supportive of us.”
In addition, Cortina Watch has always been committed to giving back to the community and championing social responsibility. Donations in the form of cheques totalling S$1.62 million were also presented to several organisations, including the Community Chest (for AWWA), Singapore Heart Foundation, Ren Ci Hospital, Kwong Wai Shiu Hospital, and the Singapore University of Social Sciences (SUSS). S$1 million was channelled through Community Chest to AWWA Ltd. AWWA provides early intervention for pre-schoolers, education and integration support for children and adults with additional needs, social assistance for vulnerable families, and care services for seniors. AWWA’s mission is to empower the disadvantaged to maximise their potential to lead independent and dignified lives.
Mr Raymond Lim, CEO of Cortina Holdings says, “I think the role of the retailer today, at least from my perspective, is to have an active role in helping brands develop their presence in our markets. This effort entails a lot of trust on all sides: the brands, our customers and ourselves. Trust is what has shaped our work and success, from 1972 till today.”
3 trends shaping Thailand’s new condos and housing projects
MONDAY, DECEMBER 26, 2022
New real estate projects must address people’s rising concern over energy prices, the environment, and health issues, a leading property advisory firm cautioned on Monday.
Lumpini Wisdom and Solution Co Ltd, the research arm of SET-listed property developer LPN, said developers need to incorporate energy-saving, eco and health standards in their new housing and condo projects if they want to attract the new generation of buyers.
Praphansak Rakchaiwan, CEO of Lumpini Wisdom, said prospective buyers are increasingly focused on these three standards amid the pandemic and energy price crisis.
LPN expects to see more housing and condo projects adopt energy-saving features, including so-called passive designs to reduce cooling and lighting needs.
The trend for solar-cell panels and construction materials that help cool buildings and save on electricity for air-conditioners will also rise, it said. New projects will come with charging points for electric vehicles, as well as energy monitors to check real-time electricity cost and usage, Praphansak said.
To reduce environmental impacts, real estate developers will turn to eco-friendly and recyclable construction materials and seek to cut their carbon emissions, he added.
A survey by Bangkok’s Baramizi Lab, which researches future trends, found that 85.2% of Thais prefer natural and environment-friendly designs, so developers should increase green areas in their projects, Praphansak said.
And Covid-19 prompted has heightened health concerns among buyers, meaning developers must add facilities that promote healthy living, including furniture and decor, he said.
20 more Kana Pure cannabis outlets to be opened in Thailand next year
MONDAY, DECEMBER 26, 2022
Nongluck Ajanapanya
Bespoke, a subsidiary of Boutique Corporation, is opening 20 more fully licensed Kana Pure cannabis outlets in Thailand next year.
Prab Thakral, president and Group CEO of Boutique Corporation, stated at the opening of the third outlet on Monday that the plan was developed after positive feedback from the two licensed cannabis outlets, giving the company confidence to expand nationwide.
However, the exact location has yet to be determined, but it is likely to be on Boutique’s own property, the parent company of Kana Pure.
The third fully licensed high-grade medical cannabis dispensary shop is located on Sukhumvit Soi 11.
Prab stated that the shop is still focused on growing high-quality medical cannabis for sale at its Kana Pure outlets, with the goal of medical use under expert advice.
Bespoke grows high-quality medical cannabis in environmentally controlled farms in northern Thailand.
Turkish companies see increased trade with Thailand
SUNDAY, DECEMBER 25, 2022
Opal Varunsuda
The Istanbul Chemicals and Chemical Exporters Association said its trade delegation to Thailand earlier this month succeeded in strengthening cooperation between Turkish and Thai companies.
The December 16 event included a business matching meeting at which executives from a wide range of Turkish companies – including chemical, cosmetic, plastic, and medicine – met with their Thai counterparts to discuss opportunities for trade.
Cemil Cakar, who led the delegation, said it paved the way for Thai and Turkish companies to work together to increase their competitiveness.
He described Turkey as a bridge to the European market, saying costs were lower in Turkey while the quality of Turkish products was high enough for them to enter the European market.
Thai companies are eager to take advantage of Turkey’s location and its reputation for quality products, Cakar said.
He also said that Turkish companies, like home appliance maker Beko, are investing in the Thai market and that the delegation led to increased interest in Thailand.
Cemil Cakar
representative of the Istanbul Chemicals and Chemical Exporters Association (IKMIB)
Baht steady against dollar but expert warns of year-end volatility
MONDAY, DECEMBER 26, 2022
The baht opened at 34.76 to the US dollar on Monday, weakening slightly from Friday’s close of 34.73.
The currency will likely move between 34.65 and 34.85 against the greenback during the day and between 34.50 and 35.20 during the week, Krungthai market strategist Poon Panichpibool said.
Poon said that the baht could swing sideways and weaken in the short term due to the strengthening dollar and sales of risky assets.
However, he doubts the Thai currency will breach its resistance level since exporters are waiting to sell the dollar and foreign investors are reluctant to short the baht amid expectations it will strengthen.
Poon cautioned, however, that the low level of year-end transactions in the currency market could see the baht fluctuate heavily or in a wide range.
Meanwhile, lower-than-expected US jobless claims should ease market worries of another US Federal Reserve interest rate hike that would support further dollar strengthening, Poon said.
But he forecast the dollar would be buoyed if investors’ worries over the Covid-19 situation in China eased.
He also advised investors to use hedging tools such as options to manage risks in a highly volatile currency mark.
UTA executives visit Hong Kong International Airport
SATURDAY, DECEMBER 24, 2022
Mr. Keeree moves forward to develop U-Tapao International Airport and the Eastern Aviation City while UTA and leading organizations visit and observe the development of Hong Kong International Airport.
December 21, 2022, Hong Kong – Mr. Keeree Kanjanapas, Chairman of the Executive Committee, U-Tapao International Aviation Company Limited (UTA) led a group of executives from 4 organizations, including UTA, Bangkok Land Public Company Limited, Bangkok Bank Public Company Limited, Architects 49 Limited, which consisted of Mr. Kavin Kanjanapas, Mr. Paul Kanjanapas, CEO of Bangkok Land Public Co. Ltd, Impact Exhibition Management Co., Mr. Wirawat Panthawangkun, and Mr. Chanond Sophonpanich, as well as Mr. Prabhakorn Vadanyakul, Managing Director of Architects 49 Limited, to visit and recognize the Hong Kong International Airport Development Plan.
The plan covers not only the airport, but also the warehouse space and other key service areas, such as the Integrated Airport Center (IAC) and Sky Bridge. The group was welcomed by executives from Hong Kong International Airport, Mr. Jack So, Chairman of Airport Authority Hong Kong (AAHK), Mr. Fred Lam, Chief Executive Officer of AAHK and offered a tour of the airport.
The Hong Kong International Airport is considered an important inter-regional transportation hub, serving as an aviation hub for air travel to other important countries. It is also the airport complete security systems and facilities. In 2019, before the outbreak of COVID-19, the airport serviced 71.5 million passengers, 4.8 million tons of air freight, and had up to 419,795 flights. In addition, it recently won the Cargo Airport of the Year – Asia Pacific title at the 9th Payload Asia Awards ceremony and Airport of the Year title at the World Air Cargo Awards 2022.
In addition, on December 22, 2022, the executives from Hong Kong International Airport took the group to visit the robot-operated Hong Kong Air Cargo Terminals Limited (Hactl), which uses a robotic operating system in transporting containers and products that are not packed in large containers. By enabling the Automated Parts Store (APS) system, technicians simply scan part codes and specify the desired amount. Then, the robot takes the shortest route to deliver the parts to the technician. Through this system, work time can be reduced by more than 50%. In addition, the terminal can also operate 24 hours a day, saving up to 1,500 human work hours annually.
In last-ditch effort to delay power rate hike, business leaders turn to PM
FRIDAY, DECEMBER 23, 2022
Nongluck Ajanapanya
In a last-ditch effort to postpone a rise in electricity rates on January 1, business leaders on Friday urged Prime Minister Prayut Chan-o-cha to intervene and postpone the planned fuel tariff (Ft) rate hike until 2024.
Raising the Ft rate now will force businesses into the red and undermine their competitiveness at a time when they are heavily in debt and still recovering from the pandemic, they told a press conference they described as “urgent” on Friday.
The government plans to increase the rate on January 1 by 93.42 satang, up from its current 4.72 baht to 5.69 baht per unit.
The press conference was organised by the Joint Standing Committee on Commerce, Industry, and Banking – a business lobby group. It wants the Ft rate rise postponed until the second half of 2023 but some business leaders want it delayed until 2024. Sources said the standing committee’s chair, Sanan Angubolkul, was expecting to hear from the prime minister tonight.
Press conference speakers comprised Federation of Thai Industries renewable energy advisor Suwat Kamolpanus, Thai Retailers Association president Yol Phokasub, Thai Hotels Association president MarisaSukosol Nunbhakdi and the chair of the board of directors of Siam Cement, Roongrote Rangsiyopash.
Yol Phokasub
Yol said the retail and service sectors are overburdened due to high wages, interest rates, and other costs, while revenues are low.
“Electricity costs range from 20% to 50% [of all costs] in the retail and service sectors … Electricity costs will rise by more than 20% .. if the Ft is adjusted,” he said. “I’m concerned this will result in negative income and undermine the competitiveness of entrepreneurs.”
Rising electricity costs will damage the hotel industry, Marisa said.
Marisa Sukosol Nunbhakdi
The tourism industry is showing signs of recovery, but not every hotel, particularly medium and small-sized hotels, has recovered to pre-pandemic levels, she said.
The cost of electricity is usually equivalent to 5% of total costs and revenues, but it is now about 11% of total costs and 6-8% of revenue, Marisa added.
“COVID-19 has had the greatest impact on us. Tourist numbers are currently far below what they were. As a result, we require more time and supportive measures to recover. The increase in the Ft fee will cost us more money, which we will be unable to pass on to our customers,” she explained.
Roongrote Rangsiyopash
Roongrote said that if the government insisted on increasing the Ft fee, it would force large manufacturers to relocate their production bases, especially those who use large amounts of electricity like cement, ceramic, metal, and glass-making makers. Mid-sized businesses will take a bigger hit, he said
“Most manufacturers are medium-sized businesses and they might be wiped away [by the Ft rate hike],” he said.
Suwat Kamolpanus
Renewable energy advisor Suwat urged the government to review assumptions made in the new Power Development Plan by reducing the proportion of natural gas, particularly liquefied natural gas (LNG), in order to avoid high electricity costs.
LNG will be imported so controlling its costs will be extremely difficult, Suwat said. However, if the government can reduce the use of LNG by encouraging greater use of renewable energy this problem will be solved in the long run and Thailand will achieve energy security, he said.
Cemil Cakar
Yol Phokasub
Marisa Sukosol Nunbhakdi
Roongrote Rangsiyopash
Suwat Kamolpanus
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