July 10, 2020

Thai Enquirer Summary

Political News

 The gang of “4 angels”---comprising Finance Minister , Energy Minister Sontirat Sontijirawong, Higher Education, Science, Research and Innovation Minister and deputy secretary-general of the Prime Minister’s Office Kobsak Pootrakul--- announced surprising resignation from the Phalang Pracharat Party (PPRP).

 The announcement was made at Centara Grand at Central Plaza Ladprao yesterday (July 9).

 Uttama who announced his resignation as the PPRP leader said this is the right time for him to resign after working with the party for 2 years and lead the party to form a coalition government successfully. He said their move is to allow the new executive committee to start its duties.

 Uttama said he has no plans to form a new political group or party for the time being.

 As all 4 members who resigned from PPRP are part of the economic team engineered by Deputy Prime Minister , Uttama ensured the

public that their resignation would have no effect on the performance of the executive branch. The former 4 Phalang Pracharat members said they would continue working in their cabinet portfolios. Uttama said a decision to reshuffle the cabinet is for the prime minister to make.

 Sontirat told reporters that they will continue in our roles in the administration the best we can. What happens next is for the prime minister to decide.

 The 4 men held ministerial posts in the former military government before helping to establish the PPRP to take part in last year’s general election. They announced resignation from the former Prayut cabinet on August 29, 2019 to lead the PPRP’s campaign in the general election, helping the party secure enough votes to form a new government.

 However, the 4 ministers were under pressure from leaders of various factions inside Phalang Pracharatto step down as the party’s executive committee members to pave the way for a revamp of its executive board that eventually led to the appointment of Deputy Prime Minister as new leader on June 27, 2020.

 Reports are emerging that today the new economic team of Prayut would be at the Government House in order to hold a meeting and give advice to the Prime Minister.

 Today, Prayut said, there would be both insiders and outsiders would go to the Government House to discuss.

 Prayut came out to say that ‘he was the true leader of the economic team’ and that all have to listen to him

 This was the headline in ’s leading Newspaper – Thai Rath

 In a related development, Prime Minister and Defence Minister Prayut Chan-o-cha reportedly ordered cancellation of a planned meeting of his economic team scheduled for today (July 10). The order came shortly after the gang of the “4 angels” announced their resignation from the Phalang Pracharat Party.

 The planned meeting was to be attended by executives from the Finance Ministry, the Office of Small and Medium Enterprises Promotion (Osmep), the Thai Bankers’ Association (TBA) and Specialised Financial Institutions (SFIs).

 The meeting is set to discuss the country’s economic outlook after easing of the lockdown and address ways to revitalise the economy battered by COVID-19 with measures to help more than 3 million small and medium-sized enterprises (SMEs).

 It will be interesting to see what will happen next as the next economic cabinet meeting has already been scheduled for July 24 to discuss measures to rehabilitate the tourism industry after the country lost about 40 million foreign tourists during the pandemic.

 Another report said after the resignation of the gang of the “4 angels”, Gen Prayut has called a meeting of his team of economic advisors instead. This team comprises academics and representatives from the private sector to present economic rehabilitation and recovery plans to him before he reschedules a meeting of the economic team again.

 Amid rampant speculation that the resignation of the 4 men will lead to a reshuffle of the economic cabinet, Gen Prayut confirmed that he is seeking the most skilled people to join his cabinet should he decide to reshuffle the cabinet.

 Today is the meeting of the that would select a new executive committee

 There are rumors going around that there would be a major change in the Pheu Thai party although this information could not be verified by anyone in the party.

 Earlier sources had told ‘Thai Enquirer’ that incumbent ‘strategist’ Sudarat Keyuraphan, is set to hand in her resignation from the party’s executive committee and plan her future as a possible candidate for the Bangkok Governor elections.

 This information could not be verified by other sources but if that happens it could be the turning point for Pheu Thai party where the displeasure with the leadership of Sudarat is an open secret in the party.

 More than 100 people from the People Go network, the June 24 Democracy Group and Internet Law Reform Dialogue (iLaw) marched from MRT Lat Phrao station to the Civil

Court to ask the Civil Court on Ratchadaphisek Road to revoke the emergency decree yesterday (July 10).

 The rally-goers gathered in front of the court holding placards calling for the lifting of the state of emergency. Police from Phahonyothin police station and court security officers were deployed to maintain order.

 The People Go network said it planned to hold a gathering next Monday (July 13) in front of the United Nations building on Ratchadamnoen Nok Road to call on the prime minister to endorse a bill on national pensions.

 More than 10,000 people have signed a petition supporting the bill but it has been on hold for almost 5 months, said Nimit Thian-udom, of the People Go network.

 Complainer-in-chief Srisuwan Janya, secretary-general of the Association for the Protection of the Constitution, yesterday (July 9) submitted a petition to the National Anti-Corruption Commission (NACC) asking it to take action against the Cabinet as he cast doubts upon the government’s sincerity over the progress of the implementation of national reform plans.

 Srisuwan’s move came after a lack of quorum of MPs in Parliament at the lower house meeting on national reform.

 Srisuwan also cited the opposition Pheu Thai Party’s suspicion that the Cabinet’s reform on the progress of reforms in accordance to the October-December 2019 blueprint is unconstitutional. Under Section 270 of the constitution, the cabinet is required to report on the progress of reforms to the parliament every 3 months.

 The lack of quorum in the lower house this week raised question on whether the Cabinet has violated Section 270 of the charter, the complainer-in-chief pointed. Srisuwan related the lack of quorum of MPs to the government’s lack of sincerity in pushing national reforms.

 Srisuwan questioned that the Cabinet should be charged with a negligence of duty charge over its role in pushing national reforms. If found guilty, cabinet ministers could be removed from the Cabinet.

Economic News

 Latest upheavals in Phalang Pracharath Party (PPRP) believed to cause the gang of the 4 angels---comprising Finance Minister Uttama Savanayana, Energy Minister Sontirat Sontijirawong, Higher Education, Science, Research and Innovation Minister Suvit Maesincee and deputy secretary-general of the Prime Minister’s Office Kobsak Pootrakul---to resign raised questions about the government’s ability to help Thailand recover from the COVID-19 and its recovery strategies.

 Most academics believed that the 4 men’s resignation will not affect government economic policies to drive economic recover.

 Independent academic in economics and politics Somchai Phagaphasvivat played down concerns that their resignation is unlikely to affect the government’s economic plans. He said anyone tipped to replace the 4 men will have the ability to carry out the current policies. He believed that the government has rolled out most of its economic stimulus policies. Whoever is tipped to take over as new

Finance Minister will have to carry out economic stimulus policies, especially the Finance Ministry’s 400-billion-baht Covid-19 economic recovery spending plan and 600-billion-baht set aside for financial aid for those whose jobs and businesses have been affected. Somchai said these plans have been set in stone.

 “A change that might happen to the Finance Minister’s post should not have any impact on economic policies. The change might have some psychological impact because the business sector is keeping an eye on the person who is given the top job at the Finance portfolio would have the ability to build confidence among businesses,” Somchai said.

 Dr Viroj Na Ranong, a research director at the Thailand Development Research Institute, said it is important for Thailand to ready a fiscal response for a potential 2nd wave of infections.

 Should Mr Prayut decide to relieve the 4 men of their government positions, he would need to find other technocrats to fill their shoes, Dr Viroj said, adding that the party currently has no economists up to the task.

 As the application deadline for the next Bank of Thailand (BoT) governor is due to be closed today (July 10), there are reports that currently 5 candidates have applied to be the next governor of the Central Bank, according to Rangsan Sriworasart, chairman of the selection committee.

 The committee in charge of selecting the governor of the BoT is said to receive interests from outsiders during the extension period of the application, most of whom are executives of major commercial banks.

 Latest report said Asst Prof Anusorn Tamajai, director of the Economic and Business Research Center at Rangsit University, also applied for the job. Anusorn used to hold a position of an independent director at the Central Bank.

 Revenue collection among state-owned enterprises (SOEs) and companies in which the Finance Ministry owns less than a 50% stake in the first 9 months (from October 2019 to June 30, 2020) of fiscal 2020 totalled 156.474 billion baht, with the Government Lottery Office (GLO) topping the chart with a 34.304-billion-baht contribution, according to the State Enterprise Policy Office (Sepo).

 The revenue collection was higher than expected target by 7.012 billion baht in the first 9 months was mainly due to how overall earnings among SOEs improved, said Prapas Kong-Ied, director-general of the State Enterprise Policy Office (Sepo).

 The top 5 SOEs contributing the largest portion of revenue collection in the first 9 months were the GLO (34.304 billion), PTT Plc (PTT) (29.198 billion), the Electricity Generating Authority of Thailand (Egat) (28.619 billion), Government Savings Bank (GSB) (18 billion), and Airports of Thailand (AOT) (10.5 billion).

 The Department of Foreign Trade sees a drop of nearly 10% in Thailand’s overall cross- border trade in the first 5 months (from January to May).

 The department reported the country’s cross-border trade plunged to 524.357 billion baht or 9.7% from the same period of last year.

 Of the total figures, exports from Thailand totalled 305.725 billion baht, down 9.03% from the same period last year, with imports shrinking 10.65% to 218.632 billion, resulting in a trade surplus of 87.093 billion baht.

 In the wake of the fall, the Foreign Trade Department called for the government to reopen 9 border checkpoints closed amid the virus crisis. The move would boost the flow of goods. Director-General Keerati Rushchano said the main hindrance to border trade was Covid-19 which caused the government to close some checkpoints.

 The Department asked the government to reopen the 9 of the 69 border checkpoints that were closed for lockdown. Thailand has a total of 97 checkpoints, but only 28 remain open during the virus crisis.

 The initial 2020 target for border trade of 1.5 trillion baht has been revised to 1 trillion baht-1.1 trillion baht amid the impact of Covid-19.

 Thai Airways International (THAI) Plc has set up the so-called “Survival Team” to work out a business plan to support of the debt rehabilitation of the carrier, according to a source at the airline.

 The formation came from Acting THAI president Chansin Treenuchagron’s order.

 The Survival Team is in charge of producing a business plan, effective from July 9 to October 31.

 The team will be headed by Chai Eamsiri, vice-president for Petroleum, Corporate Insurance and Aviation Environment and comprise 21 members who are executives of various departments of the airline.

 The team will be advised by executive vice-presidents for commerce, corporate strategy and sustainable development, operations, and the technical department.

 Matichon, Khao Sod newspapers and the CARE Group (Creative, Action, Revival, and People Empowerment) will hold a seminar entitled “Rescue Forum: Tourism” at Khao Sod Office Building, Prachaniwet 1 Road on July 11.

 The seminar is to brainstorm ideas on appropriate solutions to help drive Thai businesses and the tourism sector, alleviate impacts of the COVID-19 and increase opportunities for business operators to recover from business impacts of the COVID-19 outbreak. Members of the public who are related to the tourism sector are encouraged to join the seminar to present ideas on how to accelerate a recovery from the economic impact of the pandemic on tourism.

 The seminar will feature key speakers from tourism and financial sectors such as Supawut Saichua, managing director for research of Phatra Securities Plc, hanet Phetsuwan, deputy director for communication and marketing at the Tourism Authority of Thailand (TAT), Surawat Akaraworamat, Secretary-General of the Tourism Council of Thailand (TCT), Sumalee Wongcharoenkul, secretary- general of the Association of Thai Travel Agents, Anita Roth Strategic Engagement and Policy Director at Airbnb, etc.

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General News

 Thailand logged 5 new imported cases of COVID-19 in state quarantine, raising the total cases to 3,202.

 The country marks 45 consecutive days without local transmission, said Centre for COVID-19 Situation Administration (CCSA) spokesman Taweesin Visanuyothin.

 Four of the new cases returned from the United Arab Emirates (UAE) including 3 men and 1 woman. The other case was a Thai student, who returned from Egypt.

 Globally the numbers remained high

 New cases globally rose by 222,825 cases to reach 12,378,854  Death globally reached 556,601 or a rise of 5,404 new deaths yesterday  The United States was the top of the rank with more than 65,000 new cases (the highest ever in the world in a single day)

Political News Headlines in Thai Media

 The former party leader of Thailand’s ruling party and three other senior officials resigned from the party on Thursday signalling a possible cabinet shake up and the consolidation of power by the army wing of the ruling party.

o Link- https://www.thaienquirer.com/15394/former-palang-pracharat-and-three-other- cabinet-ministers-resign-from-ruling-party/

 The establishment of the Care Group as a non-partizan think tank to push forward issues within Thai society is starting to show results with the government implementing recommendations made by the group’s economists.

o Link- https://www.thaienquirer.com/15377/care-groups-influence-starting-to-be-felt- government-says-it-values-all-input/

 The 2019 election was a route for Thailand’s oldest political party. Not only did the Democrat party gain a historically low number of seats but its former base of support in Bangkok had withered, divided between the progressive and the military-aligned .

o Link- https://www.thaienquirer.com/15410/the-democrat-party-is-done-if-it-cannot- keep-its-southern-base/

 “With respect, I must say that if the government is unable to answer my aforementioned questions, I will not be able to support this budget.”

o Link- https://www.thaienquirer.com/15407/analysis-the-decline-of-peu-thai-party/

 The uses of draconian laws to suppress dissidents has been more pronounced during the coronavirus pandemic as dictatorial regimes use the crisis to pass laws that would otherwise be scrutinised by the public and the international community. o Link- https://www.thaienquirer.com/15414/opinion-the-coronavirus-pandemic-has- given-would-be-despots-the-excuse-to-pass-draconian-laws/

 The leader of Kla (bold) Party, Korn Chatikavanij, made an appeal to the new generation to join the newly launched party.

o Link- https://www.nationthailand.com/news/30390998?utm_source=category&utm_mediu m=internal_referral

 The United States army chief, General James C McConville, arrived on Thursday (June 9) on a two-day trip at the invitation of the Army and has granted permission for the publication of the results of his Covid-19 swab test.

o Link- https://www.nationthailand.com/news/30391022?utm_source=category&utm_mediu m=internal_referral

 Thailand’s government said on Thursday that it had discovered five new cases of coronavirus in the last 24 hours, all in state quarantine. This is 45th straight day of no new locally transmitted case in the country.

o Link- https://www.thaienquirer.com/15388/thailand-discovers-five-new-cases-of- coronavirus-in-state-quarantine-on-thursday/

 The Singaporean government has mandated that all Thai arrivals to the city-state must undergo 14-day mandatory state quarantine before being allowed into the city.

o Link- https://www.thaienquirer.com/15384/singapore-mandates-state-quarantine-for- thais-but-not-other-harder-hit-countries/

 Prime Minister Prayut Chan-o-cha said he will reshuffle the Cabinet, after his four economics ministers resigned from the ruling Palang Pracharat Party.

o Link- https://www.nationthailand.com/news/30391033?utm_source=category&utm_mediu m=internal_referral

 A cabinet reshuffle looms after the resignation from the ruling Palang Pracharath Party (PPRP) of three cabinet ministers, including the finance minister.

o Link- https://www.bangkokpost.com/thailand/politics/1948740/cabinet-reshuffle- looms  The ruling Palang Pracharath Party (PPRP) on Thursday admitted that Wednesday's cancellation of a House sitting on national reform for failing to achieve a quorum has damaged parliament's reputation, but added the mistake wasn't that serious.

o Link- https://www.bangkokpost.com/thailand/politics/1948760/pprp-admits-to- quorum-gaffe

 Deputy Prime Minister Prawit Wongsuwan explained that government MPs were busy in a meeting on Wednesday (July 8) and failed to hear the summoning bell for a Lower House debate, causing it to be cancelled as it lacked a quorum.

o Link- https://www.nationthailand.com/news/30391025?utm_source=category&utm_mediu m=internal_referral

Economic News Headlines in Thai Media

 The cross-border trade dropped nearly 10 per cent in the first five months of 2020, the Foreign Trade Department said on Thursday.

o Link- https://www.thaienquirer.com/15402/cross-border-trade-down-but-transit- trade-with-singapore-and-china-up/

 United States ambassador Michael George DeSombre on Thursday pledged to assist Thailand in achieving its goal to be upgraded from Tier 2 in the US Trafficking in Person Report (TIP) to Tier 1.

o Link- https://www.bangkokpost.com/thailand/general/1948756/us-pledges-to-help- deter-trafficking

 The Public Health Ministry has vowed to take criminal action and sue at least 18 clinics which allegedly swindled funds from the gold card universal health insurance scheme.

o Link- https://www.bangkokpost.com/thailand/general/1948748/clinics-face-action- over-health-scam

 An anti-graft petition has been filed against an Environmental Impact Assessment (EIA) committee for allegedly failing to acknowledge calls from residents to amend construction plans for a luxury condominium in the Ekkamai area of Bangkok. o Link- https://www.bangkokpost.com/thailand/general/1948844/srisuwan-takes-aim- at-eia-panel

 Business sentiment picked up for the first time in 14 months in June, boosted by easing of the government's lockdown measures.

o Link- https://www.bangkokpost.com/business/1948864/confidence-edges-higher-in- june-poll

 Thailand's IPO market is expected to become active again in the second half, with 16 companies already approved by the Securities and Exchange Commission (SEC) to raise funds from the public.

o Link- https://www.bangkokpost.com/business/1949116/ipos-to-revive-in-second-half

 Corporate bond issuance is expected to top out at 800 billion baht this year, with the value of debenture rollover estimated at 300 billion baht in the second half, says the Thai Bond Market Association (TBMA).

o Link- https://www.bangkokpost.com/business/1948872/corporate-bond-issues-to-hit- b800bn

 SET-listed IRPC Plc, the petrochemical arm of national energy conglomerate PTT Plc, is slowing investment in new projects, slashing its spending by 27.8 billion baht to maintain liquidity.

o Link- https://www.bangkokpost.com/business/1948956/irpc-slashes-capex-to- maintain-liquidity

 A so-called "Survival Team" has been formed to work out a business plan for Thai Airways International (THAI) to support the debt rehabilitation of the carrier, according to a source at the airline.

o Link- https://www.bangkokpost.com/business/1948692/survival-team-set-up-for-thai- airways

 New technology to collect tax on beer will boost government revenue by Bt6 billion per year, says the Excise Department. The technology will be trialled next year to tax alcohol, before being rolled out to cigarettes, oil and other products.

o Link- https://www.nationthailand.com/business/30391023?utm_source=category&utm_me dium=internal_referral  The price of gold rose by Bt100 per baht weight in morning trade on Thursday (July 9), the Gold Traders Association reported. As of 9.28am, the buying price of a gold bar was Bt26,550 per baht weight and selling price Bt26,650, while gold ornaments cost Bt26,075.20 and Bt27,150, respectively.

o Link- https://www.nationthailand.com/business/30391002?utm_source=category&utm_me dium=internal_referral

Issues to be watched out for

 July 2020 – The Expressway of Thailand (EXAT)’s planned opening schedule of the new Motorway Route 7 Section from Pattaya to Map Ta Phut.

 July 10, 2020 – The new application deadline for the next Bank of Thailand governor extended by the BoT’s selection committee.  July 10, 2020 – The opposition Pheu Thai Party is set to hold an annual general meeting (AGM).  July 19, 2020 – The Democrat Party is set to hold an annual general meeting (AGM).

 July 29, 2020 – The Federation of Thai Industries is set to hold the 2020 annual general meeting (AGM) to pick a new chairman after postponement from March 30 this year.  July 31, 2020 – The government is expected to lift lockdown restrictions imposed under the emergency decree.  August, 17, 2020 – The first day of hearings for Thai Airways International Plc (THAI)’s bankruptcy case.

 August 29, 2020 – The deadline for farmers to return the banned agri-chemicals, paraquat and chlorpyrifos, in their possession to sellers.

 September 2020 – Recruitment of new board members of the National Broadcasting and Telecommunication Commission (NBTC) is set to kick off.

 September 21, 2020 – The National Economic and Social Development Council (NESDC, formerly known as the National Economic and Social Development Board or NESDB) is to revise the 20-year national strategy at an annual meeting to respond to the COVID-19 crisis.

 September 30, 2020 – The Stock Exchange of Thailand (SET) is set to extend the revised equity short-selling regulations from June 30 to September 30 as stock market volatility remains high in the wake of the Covid-19 pandemic.

 October, 2020 – The bidding for construction and operation for the 140-billion-baht Orange Line western extension linking the Thailand Cultural Centre with Bang Khun Non.

 October, 2020 – The Thailand Grand Prix was rescheduled after being postponed due to the coronavirus outbreak.

Key Data

SET Index 1,365.81 +3.35

 Link - https://www.set.or.th/en/company/ipo/upcoming_ipo_set.html

Global Commodities

 Metal -Link http://www.bloomberg.com/markets/commodities/futures/metals/

 Energy -Link - http://www.bloomberg.com/energy/

 Baltic Dry Index (BDI)-Link - http://www.bloomberg.com/quote/BDIY:IND

Global Equity Market’s Movements

 Link - http://www.bloomberg.com/markets/stocks/world-indexes/asia-pacific/

Asian Equity Markets Movement

 Link - http://www.bloomberg.com/markets/stocks/world-indexes/

Information on July 9, 2020

Buying, Selling or Transfer of shares by Owners/Management

Stock Code Volume Value Action

BCPG 11,900 16 Sale BEC 13,666,700 5.2 Purchase BEC 13,666,700 5.2 Purchase BEC 12,666,600 5.2 Purchase BOL 321,200 3.59 Sale BOL 49,500 3.58 Sale BOL 176,700 3.58 Sale CPW 350,000 2.02 Sale EP 21,200 3.72 Purchase LPH 40,000 4.96 Purchase MJD 1,155,300 1.64 Sale MINT 12,400 1.15 Sale MITSIB 21,685 1.07 Purchase NEWS 500,000 0.01 Purchase PLANET 10,000 0.93 Sale PLANET 10,000 0.94 Sale PLANET 10,000 0.97 Sale PLANET 10,000 0.98 Sale PLANET 20,000 0.99 Sale PLANET 20,000 1 Sale PLANET 20,000 1.01 Sale PLANET 20,000 1.09 Sale PLANET 20,000 1.1 Sale PLANET 10,000 1.11 Sale PLANET 10,000 1.12 Sale PLANET 10,000 1.02 Purchase PRIME 6,109,800 0.42 Sale RJH 10,000 21.8 Sale RJH 13,000 21.9 Sale STGT 110,000 69 Sale SUSCO 30,000 2.64 Purchase TRUBB 228,000 1.92 Sale

TRUBB 300,000 1.94 Sale TRUBB 177,000 1.92 Sale TRUBB 300,000 2.02 Sale TRUBB 300,000 2.02 Sale TRUBB 300,000 2.04 Sale KUN 7,000 0.9 Purchase

XD, XE or XM or other notifications

For list of Companies that have dividend payment and AGM meeting schedules click on http://www.set.or.th/set/calendarofevents.do

Trading Breakdown on the Stock Exchange of Thailand

Daily as of 9 Jul 2020 Unit: M.Baht Investor Type Buy Sell Net Value % Value % Value % Local Institutions 3,988.10 5.49 5,698.34 7.84 -1,710.24 - Proprietary 5,773.33 7.94 5,626.19 7.74 147.14 - Trading Foreign Investors 34,670.39 47.7 33,428.97 45.99 1,241.41 - Local Individuals 28,248.25 38.87 27,926.56 38.42 321.69 - Monthly Cumulative between 1 - 9 Jul 2020 Unit: M.Baht Investor Type Buy Sell Net Value % Value % Value % Local Institutions 40,140.30 9.34 33,276.71 7.74 6,863.59 - Proprietary 40,326.21 9.38 37,925.41 8.82 2,400.80 - Trading Foreign Investors 148,938.25 34.65 150,056.17 34.91 -1,117.92 - Local Individuals 200,423.37 46.63 208,569.83 48.52 -8,146.47 - Yearly Cumulative since 1 Jan - 9 Jul 2020 Unit: M.Baht Investor Type Buy Sell Net Value % Value % Value % Local Institutions 1,003,948.77 11.44 922,923.13 10.52 81,025.64 -

Proprietary 882,856.65 10.06 879,928.39 10.03 2,928.26 - Trading Foreign Investors 3,082,765.57 35.13 3,300,529.33 37.61 - - 217,763.76 Local Individuals 3,806,626.99 43.37 3,672,817.13 41.85 133,809.86 -

Total Trading Value 72,680.06 Million Baht

Background Information –

The strength of each party in the Thai Parliament as of May 8, 2019 as per the report by the Election Commission of Thailand. Elections took place on March 24, 2019

 https://www.ect.go.th/ect_th/news_all.php?cid=24

 List of MPs - https://www.ect.go.th/ect_th/download/article/article_20190508184334.pdf

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