Thai farmers use derelict Cold War airbase to dry rice crop
MONDAY, NOVEMBER 21, 2022
Farmers in the northeastern province of Yasothon province are drying their rice harvest on an abandoned Royal Thai Army airbase runway in a bid to prevent road accidents.
At least 100 farmers from Loeng Nok Tha district are turning up each day at the disused airstrip with loads of freshly cut rice.
Rice harvesting season often brings traffic accidents in rural areas as farmers have little choice but to use roads to dry their paddy.
Farmers at the old airbase are reportedly guarding their drying paddy at night to prevent it from being stolen.
Prayad Samerphak, head of Ban Khok Samran village, said farmers in Loeng Nok Tha district were lucky to have an old airbase in the area.
The Loeng Nok Tha airbase was built with the help of the British in 1967 as Cold War tensions mounted in Southeast Asia.
“Many farmers gather at the airport to dry their paddy during harvest season every year,” she said.
She also thanked soldiers at the airport for allowing them to dry their rice crop for free.
AOT’s losses drop this year as Thailand reopens to tourists
TUESDAY, NOVEMBER 22, 2022
As per data provided to the Stock Exchange of Thailand (SET), the Airports of Thailand (AOT) recorded a net loss of 11.09 billion baht for the 2022 fiscal year ending on September 30.
However, AOT said losses this year had dropped from 16.32 billion baht recorded in the last fiscal year.
In its filing to the SET, AOT said its earnings had increased because flights and passengers were returning to Thailand now that it has fully reopened.
The AOT reported an income of 17.89 billion baht, up 131.17% or 10.35 billion baht from the previous fiscal year.
The AOT said its main cost was the salaries paid to its employees, adding that the revenue could be divided into three main categories:
• 7.29 billion baht from flights, up 213.05% or 4.96 billion from last year
• 9.27 billion baht from sources other than flights, up 94.87% or 4.51 billion baht
• 13.33 billion baht from unrelated sources, up 190.56% or 873 million baht. The largest revenue in this group was profit from exchange rates.
During the 2022 fiscal year, 394,469 flights landed in AOT’s six airports marking a surge of 60.84%, compared to the 2021 fiscal year. The number of passengers, meanwhile, came in at 46.69 million, up 133.35%.
The AOT said its overall expenses in the 2022 fiscal year stood at 28.825 billion baht, up 14.77% or 3.71 billion baht from the previous year. It said salaries accounted for 7.78 billion baht of the expenses.
As of September 30, AOT’s assets stood at 183.81 billion baht, down by 5.78% year on year, while its liabilities dropped by 0.45% to 81.29 billion baht.
148 foreign firms under scrutiny as Thailand cracks down on illegal businesses
TUESDAY, NOVEMBER 22, 2022
148 foreign companies are being investigated for using Thai nominees to register as juristic entities in Thailand.
This is part of the Commerce Ministry’s campaign launched last year to prevent the use of Thailand as a base for illegal business operations.
Of the 148 firms under scrutiny, 140 are in Phuket, four in Chiang Mai, three in Surat Thani and one in Bangkok, Deputy Commerce Minister Sinit Lertkrai said on Tuesday.
He added that the DSI is studying these companies in detail and will take legal action if there is evidence of the law being broken in the registration or share-transferring processes.
The department has called on all foreign-owned businesses to submit a bank statement detailing the financial status of all shareholders, both Thai and foreign, before and after the business was registered to check for any unusual transfer of shares to and from nominees.
Sinit said the campaign will continue into next year, while the Department of Business Development will also educate the business sector about the business registration process, prohibitions and other regulations under the 1999 Foreign Business Act, to ensure all foreign businesses comply with Thai laws.
He warned that any companies caught using nominees as shareholders will face a fine of up to 1 million baht as well as a penalty of 50,000 baht per day until the issue is fixed. The company’s director and the nominee too will be hit with a maximum of 1 million baht fine and/or up to three years in prison.
Baht slide slows on Tuesday opening after Monday dive
TUESDAY, NOVEMBER 22, 2022
The baht opened at 36.29 to the US dollar on Tuesday, weakening slightly from Monday’s close of 36.23.
The currency will likely move between 36.15 and 36.45 against the greenback during the day, Krungthai market strategist Poon Panichpibool said.
Poon said that the baht is being pressured as the currency market is in a risk-off state, which supports dollar strengthening and is pushing the gold price lower.
Moreover, concern about China’s Covid-19 situation is prompting foreign investors to sell more assets in emerging markets, potentially weakening Asian currencies including the yuan.
He advised keeping a watch on US Federal Reserve statements as these could trigger currency market volatility. Important moves to monitor were whether and how much the Fed slows its interest rate rises, and the projected ceiling (terminal rate) of the rises.
The market’s view on the Fed’s rate ceiling will affect the US 10-year bond yield. If the market is concerned that the ceiling will rise beyond 5%, both the US and Thai 10-year bond yields will increase, which will prompt foreign investors to sell Thai long-term bonds and pressure the baht to weaken.
Poon said the baht’s weakening on Monday was a lot faster and more severe than he expected, but he predicted that baht weakening may now slow with the resistance level at 36.30 to 36.40.
If that level is breached, the baht’s resistance level would drop to 36.50 to the dollar, he added.
He also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
Thailand’s Hom Mali dethroned as World’s Best Rice after losing fragrance, exporters warn
TUESDAY, NOVEMBER 22, 2022
The Thai Rice Exporters Association (TREA) has urged farmers and researchers to improve their strains after Thailand lost its crown to Cambodia in the World’s Best Rice Awards 2022.
Cambodia’s Phka Rumduol jasmine variety was crowned the World’s Best Rice at the World Rice Conference in Phuket on November 17. Thailand’s Hom Mali rice, which had come top for the previous two years, fell to second. Fragrant rice varieties from Vietnam and Laos were awarded third and fourth, respectively.
Cambodia’s Phka Rumduol won for the fifth time, while Hom Mali holds the record with seven awards.
“The final round between Thailand and Cambodia was neck-and-neck and Hom Mali lost by only one point,” said TREA honorary president Chukiat Opaswong on Monday.
“I asked one of the judges who is a professional chef from the United States why we lost, and he said the Hom Mali rice this year is not as fragrance as it used to be.”
Chukiat said the rice that TREA sent to the competition was grown in Northeast, which received too much rain this year. This might have diluted the rice’s fragrance when it was cooked.
To win back the crown next year, Thai rice growers and researchers must improve their Hom Mali strains to preserve its signature fragrance and make it resistant to weather conditions, he added. Growers must also reduce the use of chemical fertiliser and insecticide that could affect the fragrance.
Chukiat predicted the competition between Hom Mali and Phka Rumduol in the global market will be fiercer, as Cambodia is likely to raise the price for its newly crowned rice. Hom Mali is still slightly more expensive, at US$750 per tonne versus Phka Rumduol at $720.
“Also, soft white rice from Vietnam is becoming more popular in markets like the Philippines, Malaysia and China, while very little has been done to improve Thailand’s white rice strain over the years,” he added. “It is time we focused on breeding to produce better rice instead of using a price mechanism to fight rival rice-producing countries.”
TREA expects rice exports this year to reach 7.5 million tonnes, driven by demand from Iraq which will import over one million tonnes. Exports next year are estimated to rise to 8 million tonnes if the crop is not hit by drought and the baht does not strengthen beyond 35 to the US dollar.
Amid looming recession, investors advised to give greater weightage to bonds over equities
TUESDAY, NOVEMBER 22, 2022
Nongluck Ajanapanya
Experts recommend fixed income and bonds as the primary investment theme amid the looming recession next year.
The advice was given at the third “Wealth Forum”, hosted jointly by The Nation Group and 12 business alliances on Monday at Conrad Hotel in Bangkok.
Danucha Pichayanan, secretary-general of the Office of the National Economic and Social Development Council, delivered the keynote address. He shared his opinion on the overall Thai and global economic trends for 2023.
He predicted a mild recession next year, but said Thailand’s economy would continue to grow, as tourism, private consumption expenditure, public investment, and service exports accelerate.
He said the Thai economy had expanded by 4.5% in the third quarter of 2022, up from 2.3% and 2.5% in the first and second quarters, respectively. After adjusting for seasonal factors, the economy grew by 1.2% in the third quarter.
Meanwhile, the Thai economy is expected to expand by 3.2% in 2022, up from 1.5% in 2021. The headline inflation rate is expected to be 6.3%, and the current account deficit is expected to be 3.6% of gross domestic product (GDP).
However, he predicts that as the global economy slows, Thailand’s growth will slow as well, although it will still expand when compared to other developed and emerging markets.
He stated that in this scenario, it would be best to carefully plan investments, closely monitor market and global movement, and consider your risk tolerance.
A year of bonds
Sornchai Suneta, Siam Commercial Bank’s chief investment officer, wealth segment, Sorrabhol Virameteekul, senior vice president of Kasikorn Securities, Jitipol Puksamatanan, UOB’s investment strategist, and Pramukh Malasit, Krungthai Bank’s head of CIO office all agreed on a strategy of investing 60% in bonds and 40% in equity.
They explained that given the inflationary environment, rising interest rates, and geopolitical tensions, it is preferable to invest in the bond market because it provides observable returns, as evidenced by the current two-digit yields on bonds.
They recommended purchasing Investment Grade bonds. However, they suggested that investors who are just starting out could put their money into mutual funds.
In the coming six months, stocks will continue to be very interesting for some investors who can afford to take a little risk. For long-term holdings, investors are advised to seek out stocks with solid fundamentals, such as those in the pet food, power plant, and beauty and wellness industries.
Alternative Assets
Properties, gold and digital assets remain alternative assets for investors to diversify their risk.
Tipa Nawawattanasub, executive of YLG Group, a family-owned company that provides a fully integrated one-stop investment service in the gold industry, strongly advised investors to include a 5-10% stake in gold in their portfolio.
She noted that gold is a safe haven and a hedge asset against inflation and recession. According to the World Gold Council, 5-10% of gold investment over the last decade has helped save investors receive average returns of 1.69%.
However, she insisted on not investing more than 10% in gold because doing so does not help generate more returns and reduces the opportunity to profit from investing in other assets.
Warangkana Akharathaphon, president of XSpring Capital, explained that digital assets included more than just cryptocurrencies. They also include digital tokens.
She defined digital tokens as a digital representation of securities that can be electronically received and stored using distributed ledger technology. The market continues to offer opportunities for expansion.
She encouraged Thai investors to research the market and try to invest in it.
Regarding cryptocurrency, Jirayut Srupsrisopa, founder and Group CEO of Bitkub Capital Group Holdings, Thailand’s largest digital asset exchange, suggested taking a break and returning to the market in 2024.
He stated that it is preferable to hold cash over the next two years, particularly for retail investors with limited funds. He emphasised the importance of not taking risks and incurring debt.
He said his suggestions were the result of attending several international conferences and forums, such as World Economic Forum and the recent G20 summit.
He said that he has noticed that no one is talking about investing in 2023. They simply skipped the year and plan to start their business in 2024. Climate technology and breakthrough green premium will be the rising star industries for the years after 2024.
Meanwhile, Woradech Rukkhaphan, CEO of VBeyound Development, Kavin Eiamsakulrat, managing director of Ally Global Management, and Surachet Kongcheep, managing director of Property DNA, three of Thailand’s leading property developers, all agreed that real estate prices have already reached their bottom.
The coming years will be the ideal time to invest in real estate. However, banks who serve as lenders rather than developers, are what will actually alter the playing field. Ordinary people with limited financial resources are advised to purchase a low-cost condominium near a skytrain or subway line.
Real estate is a long-term investment, so investors must be patient and understand that investing in real estate is risk-free if they do not speculate, they said.
Jurin cranks open southern border gates as Malay tourists, trade surge
MONDAY, NOVEMBER 21, 2022
The gates at Thailand’s southern border are opening wider as Commerce Minister Jurin Laksanawisit seeks to restore trade and tourism with Malaysia to pre-Covid-19 levels.
Narathiwat’s Sungai Kolok checkpoint has deployed more immigration officials from Thursday to Saturday to speed entry for Malaysian tourists, said Jurin as he visited the border province on Monday.
“We have also asked Malaysia to extend opening hours on their side of the checkpoint to 5am to 9pm daily [from 7am to 7pm] to cope with the heavier flow of travellers,” he said.
The Commerce and Transport ministries would also join hands to streamline screening for tour buses and freight trucks entering Narathiwat.
Thailand exported 1.23 billion baht of goods via Sungai Kolok in the first nine months of 2022. The ministry is confident the tally for the whole year will exceed the 1.5 billion baht exported via the checkpoint last year.
Jurin said he also visited Tak Bai checkpoint on Monday morning and found that one of its traffic lanes was blocked, preventing Malaysian tourists from visiting Thai border markets. He asked Narathiwat’s governor to open the lane as soon as possible.
He also urged the province to restore the Tak Bai car ferry service, which was suspended during Covid-19, to full capacity by year-end.
Suspension of the service had caused trade volume to drop to around 1 million baht per year from the pre-Covid level of around 1 billion baht, said Jurin.
Best Thai restaurants in US list inspires DITP to hunt for new trade opportunities
MONDAY, NOVEMBER 21, 2022
The latest list of 35 best Thai restaurants in the United States has inspired the Department of International Trade Promotion (DITP) to start looking for new business opportunities.
The “Best Thai Restaurants in America” released by the 24/7 Wall Street website lists 35 top Thai eateries in the country. Thai is the third most popular cuisine in the US after Chinese and Mexican.
“With their unabashed use of fish sauce, chillies, vibrant herbs and a remarkable knack for fusing sweet with bitter or sour with spice, Thai chefs have doubtless expanded the palates of those tentative gourmands who were first drawn in by the comforting nuttiness of a mild pad Thai,” the article reads.
Phusit Ratanakul Sereroengrit, DITP director-general, said on Monday that Suprattana Gamolvej, director of the Thai Trade Centre in Chicago, believes there are great opportunities waiting for Thai cuisine in the US market.
Phusit said Thai cuisine is popular in the US because the flavours of each dish are unique and perfectly balanced. Also, he said, most dishes feature herbs, which respond to the demands of health-conscious consumers.
Besides, Thai restaurants in the US have also developed interesting versions of classic dishes like som tam, larb, nam tok, nam prik ong and kaeng tai pla, he added.
“There are currently more than 5,000 Thai restaurants in the US and they will become better known now that the list has been published,” Phusit said. “This list will offer us an opportunity to distribute Thai raw materials like jasmine rice, noodles, sauces, spices, Thai tea and coffee.”
The export value of Thai food products to the US in the first nine months of 2022 came in at US$3.09 billion (111.86 billion baht), up by 8.65% year-on-year, he said, adding that this number is likely to rise further.
Suprattana, meanwhile, said 125 Thai restaurants in the US had been given the Thai Trade Centre’s “Thai Select” certification.
Of the 125 restaurants, four are featured in the list, including Aroi Thai, Arun’s Thai Restaurant and Sticky Rice in Chicago and Chao Baan in St Louis, Missouri.
She added that Thai trade agencies should use this as an opportunity to publicise Thai cuisine, especially via online media, so it wins fans among the younger generation.
She too believes that Thai food is more attractive to health-conscious people because it uses a lot of vegetables and herbs. She also said that this popularity will give Thai restaurant owners an opportunity to introduce plant-based foods manufactured in Thailand.
The 35 “best” Thai restaurants list included 10 in California, 10 in New York, three in Illinois and Washington DC each, two each in Oregon and Massachusetts and one each in Missouri, Colorado, Maryland, Nevada, and Texas.
Thailand’s economy maintains growth momentum, GDP expands 4.5% in Q3
MONDAY, NOVEMBER 21, 2022
Thailand’s gross domestic product (GDP) expanded by 4.5 per cent in the third quarter, pointing to a continuous economic revival, the Office of the National Economic and Social Development Council (NESDC) said on Monday.
NESDC secretary-general Danucha Pichayanan said several economic indicators improved in the third quarter, pushing GDP growth to be higher than the second quarter when GDP expansion was 2.5%.
“The Thai economy has been expanding since the fourth quarter of 2021 until the third quarter this year,” Danucha said.
“Almost all indicators increased, including consumption and spending by the private sector, exports, and investments as well as tourism that expanded after the country fully reopened.”
The growth of GDP in the third quarter prompted the NESDC to revise up its GDP forecast for the 2022 from 2.7-3.2% to at least 3.2%, Danucha said.
He said the NESDC forecasts Thailand’s economic growth in 2023 at 3.5%, in the range of 3% to 4%.
German stadium lights 20,000 candles for Qatar migrant worker fatalities
MONDAY, NOVEMBER 21, 2022
Reuters
20,000 candles flickered in the stands of a German football stadium on Sunday (November 20) as part of a protest against Qatar’s human rights record, organised by the German labour welfare organisation AWO and artist Volker-Johannes Trieb.
Hundreds of volunteers lit the candles on Germany’s Day of the Dead that also coincides with the start of the World Cup in Qatar.
6,500 footballs filled with sand were also laid out in the stadium, to commemorate the thousands of migrant labourers killed on World Cup construction sites in Qatar, according to an AWO press release.
“There is no exact figure available of those who have died and there probably never will be. I don’t have the words. Slavery that ends in death and grief is disgusting. The games that are starting today have been bought with pain and death. This is the bloodiest World Cup there has ever been,” said artist and protest initiator, Trieb.
Hundreds of volunteers including school pupils spent the day setting up the protest in the stadium at Castle Struenkede in Herne.
According to an AWO press release, more than 15,000 migrant labourers have been killed whilst building Qatar stadiums for the tournament.
“We are here because we want to protest against the World Cup in Qatar and we think it is unacceptable to break human rights like this and that’s why we had to do something,” said one of the unnamed volunteers.
Artist Volker-Johannes Trieb poses for the photographers holding a soccer ball filled with sand and one of a total of 20,000 candles set at stadium Struenkede Castle during the opening game of the 2022 FIFA World Cup to commemorate what the event organizers say are deaths of thousands of workers who lost their lives to build the stadiums for the tournament in Qatar, a claim disputed by Qatar, in Herne, Germany,
“It is outrageous that FIFA puts on a World Cup in winter and even though they have known what has been going on there over the last years insisted on sticking to the plan. It’s outrageous!”, another volunteer added.
Sunday’s protest was the second event organised by AWO and Trieb. In April, the group deposited sand-filled footballs outside the FIFA headquarters in Zurich, Switzerland.
Qatar, the first Middle Eastern country to host the World Cup, has come under intense international pressure for its treatment of foreign workers and restrictive social laws on homosexuality and women’s rights.
Disquiet over the country’s human rights record has led to calls for teams and officials to boycott the games at the Nov. 20-Dec. 18 tournament.
He said the NESDC forecasts Thailand’s economic growth in 2023 at 3.5%, in the range of 3% to 4%.
Artist Volker-Johannes Trieb poses for the photographers holding a soccer ball filled with sand and one of a total of 20,000 candles set at stadium Struenkede Castle during the opening game of the 2022 FIFA World Cup to commemorate what the event organizers say are deaths of thousands of workers who lost their lives to build the stadiums for the tournament in Qatar, a claim disputed by Qatar, in Herne, Germany,
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