Thai Airways International (THAI) has delayed the relaunch of its Bangkok-Chiang Mai and Bangkok-Phuket services to January 1 after a fresh Covid-19 scare. The flights were originally due to restart on December 25 for the festive season.
The move is in response to the discovery of new coronavirus cases in Chiang Mai, Chiang Rai, Bangkok and other provinces.
“After Covid-19 was found in many provinces, we have postponed the plan to restore these flights to January 1 next year,” THAI officials said, adding that pre-booked passengers can postpone or cancel their trips.
Earlier this month THAI said it was restoring domestic services that have been suspended for more than eight months, since April 1, due to the Covid-19 outbreak.
The airline will operate round-trip flights from Bangkok to Chiang Mai and Bangkok to Phuket three times a week – on Friday, Saturday and Sunday. The Boeing 777-200ER service will run from January 1 to February 28.
GSB launches project to help revive Koh Samui’s economy
Dec 10. 2020
By THE NATION
The Government Savings Bank (GSB) has injected more than Bt1.5 billion in Koh Samui’s economy during the December 8-9 “GSB for Samui” fair, which was held to help the island’s badly affected tourism sector.
“About two months before the fair, more than 500 GSB executives and staff visited tourism-related businesses on Koh Samui to survey their financial needs and design suitable products,” GSB president Withai Ratanakorn said.
“This project, called ‘GSB’s Samui Model’, aims to help stimulate the island’s economy, which relies heavily on tourism, by providing funds to large corporations, SME operators as well as people at the grassroots level to help them overcome this economic recession.
“The fair itself was a huge success with more than 2,500 applicants seeking financial products from the bank,” he said. “We provided soft loans totalling more than Bt1.5 billion to boost the liquidity of some 2,000 businesses, and also provided debt-restructuring services to 500 customers with a combined debt worth Bt446 million and debt negotiation services with the Legal Execution Department for 30 customers.”
Withai said apart from financial services, GSB also offered help in the form of:
• Scholarships for 320 students whose families are suffering adversely from the fallout of Covid-19.
• Building chicken coops, mushroom growing barns and vegetable gardens at local schools to promote students’ agricultural skills.
• Buying community products such as fish, eggs, and vegetables to stimulate local economy and donating these products to low-income earners.
• Providing vehicles to 10 street food vendors and career-training courses to 300 people.
“The GSB for Samui fair and Samui Model project are products of GSB’s commitment in helping local communities overcome the hardship from the impact of Covid-19 outbreak,” Withai said. “In the next phase, GSB will organise ‘Travel Samui with GSB’ to promote tourism on the island by offering special discounts on hotel packages for holders of GSB credit cards.
“We also hope that the Samui Model will serve as a pilot framework for other agencies who are interested in organising similar campaigns to boost local economy in other provinces.”
Chevron (Thailand) will roll out more Caltex petrol stations in Thailand to meet its target of 500 next year, up from over 400 at present, said Alice Potter, country chair and general manager.
Chevron said it will also upgrade existing stations with smart designs at a rate of 50 per year to cater to new-generation lifestyles.
Meanwhile the company is joining with partners to open food and coffee shops in the stations to strengthen its non-oil business.
She added that the company has continued to invest in Thailand given its growth potential in terms of oil consumption and the economy.
By Syndication Washington Post, Bloomberg · Rita Nazareth, Claire Ballentine
A sell-off in some of the world’s biggest technology companies weighed heavily on the equity market, dragging down stocks amid dimming prospects for fresh stimulus.
The S&P 500 slid from a record, while the Nasdaq 100 had its biggest slump in a month. Facebook Inc. sank after being sued by U.S. antitrust officials, while Tesla Inc. tumbled as JPMorgan Chase & Co. called it “dramatically” overvalued. Zoom Video Communications Inc., one of the biggest stay-at-home winners, plunged after an analyst downgrade. The Russell 2000 index of smaller companies was down half as much as the tech-heavy gauge. DoorDash Inc. defied the market weakness — almost doubling in its debut — before Airbnb Inc.’s initial public offering.
Stocks took a nosedive Wednesday as it became clear that a stimulus deal remains elusive amid the most-intense negotiations over a covid-19 package since Election Day. The Democratic and Republican lawmakers working on a relief plan delivered a more-detailed summary of their proposal, but haven’t yet resolved the deadlock over a business liability shield as well as aid to state and local governments.
“To the extent they can’t come to an agreement on stimulus given the heightened urgency, given the recent outbreak, that’s a bad message,” said Mark Heppenstall, chief investment officer for Penn Mutual Asset Management. “I do think stimulus is coming and I think the market was more prepared for it to be this year than next year.
These are some of the main moves in markets:
Stocks
– The S&P 500 declined 0.8% as of 4 p.m. EST.
– The Stoxx Europe 600 Index advanced 0.3%.
– The MSCI Asia Pacific Index climbed 0.5%.
Currencies
– The Bloomberg Dollar Spot Index increased 0.1%.
– The euro dipped 0.2% to $1.2082.
– The British pound gained 0.3% to $1.3401.
– The Japanese yen was little changed at 104.21 per dollar.
Bonds
– The yield on 10-year Treasurys increased two basis points to 0.93%.
– Germany’s 10-year yield rose less than one basis point to -0.61%.
– Britain’s 10-year yield climbed less than one basis point to 0.261%.
Commodities
– West Texas Intermediate crude was little changed at $45.57 a barrel.
By Syndication Washington Post, Bloomberg · Ranjeetha Pakiam, Eddie Spence
Gold declined from a two-week high as investors weighed vaccine roll-outs against surging covid-19 cases and fresh hopes for a U.S. stimulus deal.
U.S. regulators gave early indications they may grant emergency-use authorization to Pfizer Inc.’s shot, calling it highly effective with no safety concerns, although the U.K. said those with a significant history of allergies shouldn’t take it. Trial results found that the vaccine developed by the University of Oxford and AstraZeneca Plc is safe and effective, though more analysis will be required to see how well it works in people over 55.
On the stimulus front, Treasury Secretary Steven Mnuchin presented a $916 billion coronavirus relief proposal to House Speaker Nancy Pelosi, opening up a potential new path to a year-end deal. The offer crucially has the support of Senate Majority Leader Mitch McConnell, though its omission of supplementary jobless benefits remains a sticking point with Democrat leaders.
While vaccine developments have curbed haven demand, bullion is still heading for the biggest annual gain in a decade amid unprecedented amounts of stimulus to prop up economies. Top central banks are embarking on fresh waves of bond-buying, with the European Central Bank expected to increase its purchase plans when it meets on Thursday.
“The gold price is likely to close 2020 with a notable plus, despite the sizable losses in autumn,” Carsten Fritsch, an analyst at Commerzbank AG, wrote in a note. “We do not expect a change in the ultra-expansionary monetary and fiscal policy despite the upcoming vaccinations.”
Spot gold declined 0.7% to $1,857.10 an ounce by 12:43 p.m. in London, after touching the highest since Nov. 23 on Tuesday. Silver dropped 1.5%, platinum fell 1.1% and palladium was little changed. The Bloomberg Dollar Spot Index fell 0.2%.
Thailand’s rubber glove industry is aiming to expand its slice of the global market from 15 per cent to 20 per cent in the next five years.
To meet that target, the Thai Rubber Glove Manufacturers Association (TRGMA) is pushing for increased investment and improved overall competitiveness in the industry.
Association president Veerasith Sinchareonkul said the long-term aim was to grab a 40-per-cent share of the world market.
The move follows a 20-per-cent jump in global demand for rubber gloves to 3.6 million amid the Covid-19 pandemic. Demand is expected to rise by another 10 per cent next year.
Veerasith urged the government to provide more financial support to help manufacturers expand investment. It should also streamline regulations to ease the launch of new factories, he added.
Thailand is the world’s second largest exporter of rubber gloves, driven by 19 manufacturers with combined production capacity of 46 billion per year. Of that total, 90 per cent is exported. Medical rubber gloves account for 88 per cent of total production.
“We want to see Thailand become the world’s production hub of natural-rubber gloves,” he said.
China and Malaysia, the world’s major rubber glove makers, have already expanded their production capacity, he added.
The weakening dollar has seen regional currencies appreciate quickly, with China’s yuan its highest for two and half years, the Korean won and Singaporean dollar strongest in three years, and the new Taiwan dollar at a 23-year high.
Availability of Covid-19 vaccine coupled with signs of global economic recovery in November have caused the US dollar to weaken rapidly, Bank of Thailand (BOT) assistant governor Vachira Arromdee said on Wednesday. The dollar fell to a two-year low against the baht of Bt30.023 on Wednesday, according to BOT figures.Since November, the baht has risen 3.5 per cent, the won 4.5 per cent and Indonesia’s rupiah 3.9 per cent.
Year-to-date, the baht had actually weakened slightly, Vachira noted.
The central bank was closely monitoring currency rates and it would prevent the baht’s value from impacting the economic recovery, she added.
The central bank has introduced a slew of measures to encourage capital outflow in order to balance increasing capital inflows that are driving the baht up.
Thai exporters are complaining that the strong baht makes their products more expensive and less competitive in the global market.
World’s largest rubber glove maker posts record profit
InternationalDec 10. 2020Latex gloves are displayed on hand-shaped molds at the Top Glove Corp. headquarters in Setia Alam, Malaysia, on Feb. 18, 2020. MUST CREDIT: Bloomberg photo by Samsul Said.
By Syndication Washington Post, Bloomberg · Yantoultra Ngui
Top Glove Corp., the world’s largest rubber gloves maker, posted a record first-quarter profit as the coronavirus pandemic continued to drive demand for protective equipment.
Net income jumped to 2.38 billion ringgit ($584 million) in the three months ended November, from 111.4 million ringgit in the year-ago period. Revenue almost quadrupled to 4.76 billion ringgit, according to an exchange filing on Wednesday.
Top Glove and its peers have been one of the hottest pandemic trades of 2020, with their shares scaling to records as they rode on an extraordinary boom in demand for protective gear amid the pandemic. The rollout of covid-19 vaccines next year won’t hurt demand for medical gloves as people administering the shots will need protection, the company said, as it set aside 10 billion ringgit to expand capacity by 100 billion pieces over five years.
Top Glove also allocated 100 million ringgit for workers’ housing following the spread of infections at its plants last month that prompted the government to order the company to shut 28 of its factories. The outbreak capped Top Glove’s gains this year, with the stock tumbling 17% in November, the biggest monthly drop since January 2016, as the company said some deliveries could be delayed by up to four weeks.
“In the short run, investors will need to be pay attention to the impact of the closures of factories and potential fines or penalties for living conditions of their workers on the company’s earnings,” said Chua Zhu Lian, investment director at Fortress Capital Asset Management Sdn. in Kuala Lumpur. “Overall, Top Glove should continue benefiting from the higher average selling prices,” he said, adding new entrants into the business will eventually increase supply.
The company proposed an interim dividend of 16.5 sen per share. The stock slid 3.5% to end at 6.84 ringgit as investors including Chua said the record earnings had already been factored into the price. The shares have surged more than 300% this year.
Markets around the world have been given a series of boosts in recent weeks by vaccine news from pharmaceutical firms including Pfizer Inc., Moderna Inc. and AstraZeneca Plc. Top Glove said demand for gloves won’t revert to pre-pandemic level because of rising awareness of hygiene.
“In the weeks to come, a lot of people will be watching the trend and if some of these vaccine don’t prove to be effective, there will be a pullback and scientists will continue to look for the correct vaccine,” Managing Director Lee Kim Meow said at a virtual briefing. “It also takes time to manufacture these vaccines.”
The outsized gains in glove producers’ shares this year have altered the composition of Malaysia’s stock market. Supermax Corp. is set to join rivals Top Glove and Hartalega Holdings Bhd. in the benchmark FTSE Bursa Malaysia Index on Dec. 21. The addition will take the sector’s weighting in the gauge to 13.6% from 11%, according to Smartkarma.
Supermax has rallied more than 1,000% this year, while Hartalega has more than doubled. Meantime, Top Glove is “still working” on its plan to list in Hong Kong, Chairman Lim Wee Chai said the virtual briefing.
The Siam Commercial Bank’s Economic Intelligence Centre (EIC) expects the Thai gross domestic product (GDP) next year to expand by 3.8 per cent on the back of improving global growth, fiscal stimulus packages and vaccine progress.
Global growth, however, is likely to get worse due to recent Covid-19 resurgences before improving. The recovery in 2021 is likely to be gradual, supported by vaccine progress, stimulus packages and less severe scarring effects.
However, most key economies (except China) in 2021 should remain below their pre-Covid levels in 2019. In late 2020, the Covid-19 resurgences in several countries should result in the tightening of lockdown measures and hence slow economic recovery in the near-term.
Looking forward, global economic recovery in 2021 will likely be gradual and uneven across countries and industries. Developed countries, which are expected to be vaccinated in the first half of the year, should recover faster compared to developing countries.
In Thailand, better-than-expected private consumption recovery in the third quarter of this year should result in smaller-than-expected GDP contraction in 2020.
In the third quarter of this year, Thailand’s GDP fell by -6.4 per cent year on year, supported by faster recovery in private consumption on the back of more holidays and stimulus packages.
However, recovery in the fourth quarter will likely slowdown somewhat due to Covid-19 resurgences in several countries, which should affect consumer confidence and domestic tourism. As a result, EIC expects Thai GDP growth this year to fall by -6.5 per cent versus its previous forecast of -7.8 per cent.
Looking forward, EIC expects the Thai economy next year to grow by 3.8 per cent due to the low base effect, global recovery, fiscal spending and additional stimulus packages as well as Covid-19 vaccine, which is expected to be distributed in the second half of 2021.
However, scarring effects should continue to pressure private domestic demand recovery. Public spending is likely to be a key supportive factor, especially public investment spending.
In addition, the Bt1-trillion recovery package still has about Bt500 billion ready to be disbursed in 2021.
Recently, the government also extended some co-pay measures, suggesting their ready stance to continue fiscal policy easing to support private consumption.
Thai exports in 2021 is expected to rebound and grow by 4.7per cent on the back of global economic and trade recovery. However, the severe shortage and hence rising cost on freight containers in late 2020 and early 2021 as well as strong baht due to weakening dollar should remain key headwinds for export recovery.
The progress in high efficacy rate vaccines, combined with Thailand as a production base for AstraZeneca, should support Thailand’s tourism recovery in the second half of next year, when both key foreign tourists’ countries and Thailand have been widely vaccinated.
On tourist arrival forecasts, EIC expects around 8 million foreign tourists in 2021, which remains significantly lower than the foreign tourist arrivals in 2019 (around 40 million).
Meanwhile, with material scarring effects on Thai economy, the effects should continue to pressure private consumption and investment recovery through:
• Fragile labour markets on the back of elevated unemployment, rising underemployment, and income slowdown,
• Bleak business registration and dissolution expected to continue, and
• Rising household debt to income ratio.
On monetary policy, EIC expects the Bank of Thailand to keep its policy rate at 0.5 per cent throughout 2021.
EIC expects strengthening Thai baht pressure to continue with the baht coming in the range of Bt29.5-Bt30.5 against the dollar at end-2021, mainly due to a weak greenback, resulting from global economic recovery, less volatile global trade tensions, larger US budget deficit, and hence capital inflows to emerging markets, including Thailand.
The key downside risks on the Thai economy in 2021 include Covid-19 resurgences and delay in wide vaccine distribution, and issues on political stability, which could impact investors’ confidence. The other risk is stronger Thai baht, compared with key trading partners, to impact external demand’s recovery.
The Stock Exchange of Thailand (SET) Index closed at 1,482.67 on Wednesday, up 3.75 points or 0.25 per cent. Total transactions amounted to Bt123.39 billion with an index high of 1,503.89 and a low of 1,474.83.
In the morning session, an analyst at Krungsri Securities expected the day’s index to rise to between 1,490 and 1,500 points on the influx of foreign funds in response to positive news of Covid-19 vaccines, adding that the positive sentiment was also benefiting large-cap stocks.
“However, we still advise investors to stick to short-term speculation as the SET will come under pressure from its tight valuation and mass sell-offs to reduce risks during the upcoming long holiday,” he said.
The 10 stocks with the highest trade value today were SAK, KBANK, DELTA, IRPC, ADVANC, PTT, SCB, SCGP, AOT and CPF.
As of 5pm, the price of oil rose by US$0.61 or 1.34 per cent to $46.21 per barrel, while gold dropped by $8.50 or 0.45 per cent, to $1,866.40 per ounce.
Other Asian indices were on the rise, except for Chinese indices:
Japan’s Nikkei Index closed at 26,817.94, up 350.86 points or 1.33 per cent.
China’s Shang Hai SE Composite Index closed at 3,371.96, down 38.21 points or 1.12 per cent, while Shenzhen SE Component Index closed at 13,716.53, down 257.36 points or 1.84 per cent.
Hong Kong’s Hang Seng Index closed at 26,502.84, up 198.28 points or 0.75 per cent.
South Korea’s KOSPI Index closed at 2,755.47, up 54.54 points or 2.02 per cent.
Taiwan’s TAIEX Index closed at 14,390.14, up 29.74 points or 0.21 per cent.
Latex gloves are displayed on hand-shaped molds at the Top Glove Corp. headquarters in Setia Alam, Malaysia, on Feb. 18, 2020. MUST CREDIT: Bloomberg photo by Samsul Said. 
