Prime Minister Prayut Chan-o-cha on Wednesday invited the US private sector to invest more in Thailand’s Eastern Economic Corridor (EEC).
The premier met with representatives of 28 companies under the US-Asean Business Council (USABC) at the Foreign Affairs Ministry. He also also spoke to another 11 USABC members via video, said government spokesman Anucha Burapachaisri.
Prayut hailed the EEC as a key engine driving the Thai economy.
He also told US company representatives that the government was focusing on boosting public health security and economic recovery from the impact of Covid-19.
The council’s president, Alexander C Feldman, praised the government for its effective control of the outbreak, which he said was helping to support a favourable investment climate.
The Stock Exchange of Thailand (SET) Index closed at 1,415.72 on Wednesday, up 14.09 points or 1.01 per cent. Total transactions amounted to Bt117 billion with an index high of 1,428.36 and a low of 1,392.42.
In the morning session, an analyst at Krungsri Securities expected the day’s index to fluctuate between 1,390 and 1,415 points amid forecasts of a smooth US presidential transition, progress on Covid-19 vaccines and the rising oil price.
“However, mass selloffs to reduce risk caused by pro-democracy protesters’ anti-government rally [today] will pressure the index,” he said.
The 10 stocks with the highest trade value today were PTT, KBANK, PTTEP, AOT, SAWAD, ADVANC, MINT, CPALL, PTTGC and CPF.
As of 4.30pm, the price of oil rose by US$0.35 or 0.78 per cent to $45.26 per barrel, while gold rose by $4.60 or 0.25 per cent, to $1,809.20 per ounce.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 26,296.86, up 131.27 points or 0.50 per cent.
China’s Shang Hai SE Composite Index closed at 3,362.33, down 40.50 points or 1.19 per cent, while the Shenzhen SE Component Index closed at 13,656.10, down 246.44 points or 1.77 per cent.
Hong Kong’s Hang Seng Index closed at 26,669.75, up 81.55 points or 0.31 per cent.
South Korea’s KOSPI Index closed at 2,601.54, down 16.22 points or 0.62 per cent.
Taiwan’s TAIEX Index closed at 13,738.83, down 68.30 points or 0.49 per cent.
Finance minister orders shake up in Customs Dept after receiving complaints
EconNov 25. 2020Finance Minister Arkhom Termpittayapaisith
By The Nation
After visiting the Customs Department on Wednesday, Finance Minister Arkhom Termpittayapaisith said he has instructed officials to use technology to reduce the time spent on inspection so goods can be released quickly as well as to ensure transparency.
“The department’s job has shifted from collecting revenue to making import-export easier for business operators. Recently there have been many complaints about the department taking too long to release cargo. Hence, my policy is to introduce technology, so the process can become faster and more transparent,” Arkhom said.
He also followed up on the National Single Window system, which is meant to connect Thailand with Asean countries but is not working effectively. Arkhom said the licensing system and database should be completed by 2021, so demands from local and foreign businesses can be met.
He has also ordered stricter controls on illegal imports and has instructed officials to ensure cargo is sanitised before release to prevent the spread of Covid-19.
The minister went on to say that in a bid to make Thailand a hub for international shipping, the Map Ta Phut checkpoint in the Eastern Economic Corridor will be used as another shipping centre.
Exports are driving the gradual recovery of Thailand’s economy, says Krungsri Research, but it warns that foreign tourists will not return in the large numbers of previous years.
The research house has raised its 2020 GDP forecast to contraction of 6.4 per cent from 10.3 per cent.
It projects 2021 growth at 3.3 per cent, citing both challenges and opportunities ahead.
The upward revision for 2020 reflects better-than-expected third quarter GDP data, accelerating public spending, and stronger merchandise exports, Krungsri Research’s chief economist Somprawin Manprasert said on Wednesday.
Thailand’s economic growth is expected to turn positive from the second quarter of 2021, supported by the low-base effect, government spending and a cyclical rebound of external demand.
“We see challenges ahead with domestic headwinds. Tourism recovery is lagging behind other economic growth drivers, leaving large excess capacity in several services sectors. Job losses will continue to weigh on income and consumer spending,” Somprawin said.
Domestic political unrest could undermine economic growth and trigger concern over continuity of policy. Historically, political disruption reduces growth by 0.6 to 1 percentage point, he said.
However, exports will become an engine of growth, with private investment in export-related sectors expected to improve moderately. Economic opportunities will also arise from growing regionalisation, which could support Thai exports and domestic production in the medium term, he said.
Meanwhile new US policy under Joe Biden’s administration would only slightly benefit Thailand, as the US would maintain trade protectionism, according to Krungsri Research.
Krungsri Research’s key revisions:
• Foreign tourist arrivals to decline to 4 million in 2021 from 6.7 million in 2020.
• 2020 private consumption forecast raised from -4.2 per cent to -1.1 per cent. Growth of 2.5 per cent expected in 2021.
• 2020 exports forecast raised from -12.5 per cent to -7.5 per cent, and 2021 exports forecast to expand 4.5 per cent..
• 2020 private investment forecast raised to -11 per cent. Forecast of 3.2 per cent growth in 2021.
• 2020 public investment forecast growth of 12.5 per cent, followed by 10.5 per cent in 2021.
The Securities and Exchange Commission (SEC) has said it will improve regulations, so local investors have the opportunity to investing overseas.
The Bank of Thailand (BOT) recently eased regulations on investing in foreign securities by increasing investment limits and expanding financial products, among others. The move aims to offer more investment opportunities to the public and help them diversify their portfolios.
SEC secretary-general Ruenvadee Suwanmongkol said based on the Foreign Investment Allotment System, the commission will allow investors to seek credit for investment from BOT directly.
“To register for bond trading, SEC is preparing circulars for brokerage firms and dealers, but we have to wait for BOT guidelines first,” she added.
She said she expected BOT’s decision to ease measures will encourage people to invest in foreign securities.
“However, it depends on the investment situation and investors’ ability to tolerate risks as well,” she added.
As the Year of the Rat scurries towards the Year of the Ox, people are starting to look around for special presents to express their feelings for family, friends and loved ones.
Lotus Arts de Vivre has a portfolio of elegantly designed jewellery and home decor to suit every taste and feeling.
“Love” comes in the form of a necklace, bracelet and earrings shaped as a Crown Flower, representing affection for parents, elders, or the special person in your life.
The Crown Flower ruby necklace boasts 24K gold decorated with black agate to symbolise prosperity, plus 12.87-carat pink-red Burmese ruby and pearl. The price is Bt75,000.
The bracelet has 16 crown flowers made from 24K gold decorated with black agate and 7.695-carat pink-red Burmese ruby at and pearl. The jewels are set in white gold. The price is Bt50,000.
Meanwhile the unique gooseberry-inspired design of the Hop and Crown Flower Earrings with pearl and agate are priced at Bt59,000.
“Strength” and “success” are symbolised by the “elephant” earrings of silver set in 18K gold decorated with 0.072-carat diamonds and a coiled-clam “trunk” of black horn. The price is Bt99,000.
Those looking for something to add style at home could plump for the trendy Porcupine Toothpick Holder. Crafted from pure silver and anchored with black onyx meant to dispel bad fortune, it carries a price tag of Bt21,000.
Or there’s the Abalone Shell Tray with Peacock made from Mother of Pearl. The rainbow-coloured shell is adorned with a silver peacock representing elegance, power, and good fortune. The price is Bt58,000.
By The NationEnergy firm Banpu Plc expects to set aside at least US$1 billion (Bt30.4 billion) for its five-year investment plan (2021-2025), said chief executive officer Somrudee Chaimongkol.
The budget would be spent on business expansion through joint investment, takeovers, and boosting existing production capacity, she added.
She said the company expects continued growth of Ebitda ( Earnings before Interest, Tax, Depreciation and Amortisation) from the fourth quarter this year into next year, thanks to improving gas and coal prices in the fourth quarter. The advent of winter has triggered higher energy demand, especially in China and India.
Banpu’s completed acquisition of a gas-producing operation in the Barnett Shale in Texas in the third quarter will enable realisation of its new production capacity in the fourth quarter this year.
The Mass Rapid Transit Authority of Thailand (MRTA) is expected to call for bids to construct the Purple Line southern extension in February next year, said governor Pakapong Sirikantaramas.
Construction of the extension from Tao Poon to Rat Burana is expected to start in September 2021 and take six years to complete at a cost of Bt124.959 billion.
The project will be financed by a public-private partnership.
Of the total cost, Bt80 billion will be for civil works, Bt16 billion for land expropriation and Bt23 billion for the train system.
The Asian Development Bank (ADB) and Indorama Ventures (IVL) Plc have signed a $100-million (Bt3.04 billion) financing package to reduce the environmental impact of plastic by boosting the capacity of IVL’s plastic recycling plants in Thailand, India, Indonesia, and the Philippines.
The plants will recycle polyethylene terephthalate (PET) plastics widely used in bottles. The finance package comprises $50 million from ADB and $50 million from the ADB-administered Leading Asia’s Private Infrastructure Fund (LEAP). A $150 million loan will be provided by the International Finance Corporation, and $50 million from Germany’s DEG.
“The recycling of plastics like PET is a must for healthier oceans, and this initiative will help to achieve that objective by partnering with IVL, which is the global leader of PET production and recycling,” said vice-president for Private Sector Operations and Public–Private Partnerships Ashok Lavasa. “There is a rising global demand for recycled plastic packaging. ADB’s support will help IVL to meet this demand by collecting and treating plastic waste that would otherwise have been released into the oceans.”
Said chief Sustainability Officer at Indorama Ventures Yashovardhan Lohia: “By using post-consumer PET bottles as a feedstock for new bottles, we give value to waste. This drives improvements in waste collection systems, meaning less waste and cleaner oceans.”
It is estimated that Asia accounts for more than 80 per cent of all plastics released into the ocean. Globally around half of PET is recycled. In a circular economy, products and materials are redesigned, recovered, and recycled to divert plastic waste from landfills and oceans. The plants to be built under the project are expected to be fully operational by 2022, and will ensure that nearly 5 billion additional bottles are diverted from waste annually.
IVL is a Thailand-listed, global business committed to develop technologies and processes that use post-consumer PET and polyester waste materials as feedstock for the future. As the largest producer of 100 per cent recyclable PET in the world, IVL supports all aspects of the circular economy to reduce the amount of waste entering the environment. IVL is listed on the Dow Jones Sustainability Index and operates 125 manufacturing facilities in 33 countries across five continents.
Electricity Generating Plc (Egco) applied for a licence to procure and trade liquified natural gas (LNG) with the Energy Regulatory Commission last week, said the company’s president Thepparat Theppitak.
Egco plans to import 250,000 tonnes of LNG per year to feed its Banpong power plant in Ratchaburi and Klongluang plant in Pathum Thani.
The shipment will also be used to fuel its Egco Cogen power plant in Rayong.
He added that the company was closely monitoring LNG markets to identify the right time to import the gas.
Five companies already hold LNG import and trade licences: PTT, the Electricity Generating Authority of Thailand, Gulf Energy Development, B Grimm LNG, and Hin Kong Power Holding (HKH), in which Gulf Energy Development holds a 49-per-cent stake.
(Photo credit: Government House) 
Finance Minister Arkhom Termpittayapaisith 
Krungsri Research’s chief economist Somprawin Manprasert 
CEO Somrudee Chaimongkol 
