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March 26, 2021 Thai Enquirer Summary Economic News • The March 26, 2021 Thai Enquirer Summary Economic News The Centre for Covid-19 Situation Administration (CCSA)’s meeting will today discuss approaches to accept vaccinated international tourists without having to be quarantined, to facilitate investments to fuel an economic recovery, with a focus on plans to welcome tourists to major tourist cities like Phuket and those along the Andaman Sea Coast. The meeting is expected to discuss Covid-19 prevention measures for foreign tourists in provinces to accommodate the government’s plan to reopen the country to foreign visitors, according to government spokesman Anucha Burapachaisri. Deputy Prime Minister - Supattanapong Punmeechaow, also came out to state that this was the issue that was going to be discussed in today’s meeting. The meeting will also discuss a revamp of regulations to facilitate businesses and attract foreign investors such as the ratification of restrictions on foreign ownership of Thai businesses, targeted tax privileges and a revamp of customs procedures to expedite imports and reduce capital costs. Thailand’s Food & Drug Administration (FDA) took a ‘bold’ step in approving the 3rd Covid-19 vaccine – Johnson & Johnson. The previous 2 approved were AstraZeneca SinoVac The problem with Johnson & Johnson is that the vaccines are not available as it is the latest one to be developed. https://www.thaienquirer.com/25771/johnson-johnson-vaccine-gains-thai- approval-as-inoculation-nears-100k/ Meanwhile, 8 tourism-related associations calling for the government to come up with a concrete vaccination plan and a commitment to expedite the reopening process on July 1 for a quick economic recovery. They submitted a request to the Tourism and Sports Ministry to allocate Covid-19 vaccines for at least 70 per cent of residents in Phuket or Koh Samui from April 15 to June 30. The 8 organisations are the Thai Hotels Association (THA), the Tourism Council of Thailand, the Association of Thai Travel Agents (Atta), the Airlines Association of Thailand, the Thai Spa Association, the Pacific Asia Travel Association, the Board of Airline Representatives Business Association and the International Air Transport Association (IATA). THA President Marisa Sukosol Nunbhakdi said a clear roadmap and conditions for tourists to enter the country need to be announced to prepare for the country’s reopening. Thailand’s exports in February plunged 2.59 per cent from a year earlier, weighed down by lower gold shipments, according to Phusit Rattanakul Sereeruengsit, director-general of the Trade Policy and Strategy Office at the Commerce Ministry. The reading compares with a fall of 1.50 per cent forecast in a Reuters poll and a 0.35 per cent increase in January. Excluding gold, exports would have increased 4.01 per cent in February. Despite the drop, Phusit is upbeat that Thailand’s exports will recovery in the 2nd quarter of this year driven by: 1) The progress of the distribution of Covid-19 jabs to Thai population at a wider range which should help spur economic activities in the regional level; 2) The US $1.9 trillion Covid-19 relief package rolled out by the US Government to bolster the global economy; 3) An anticipation that crude oil prices will go above $60 per barrel. 4) A trend that the baht will depreciate against the US dollar in the 1st quarter. Suphachai Chearavanont, chairman of Charoen Pokphand (CP) Group and chairman of the executive committee of True Corporation, wants Thailand to adjust its “Feng Shui” (literally means changing its energy flow) to drive the country’s economy forward. By Feng Shui adjustments, Suphachai means that Thailand must pushing itself to become global hubs in several aspects to attract investments. Apart from the Eastern Economic Corridor (EEC) scheme, he advised the government to accelerate investment in the South Economic Corridor (SEC) scheme, especially the proposed land bridge project running across Thailand to help logistics from the Indian Ocean to the Pacific Ocean. Suphachai said this mega project proposal will help link Thailand to 2 economic superpowers China and India. This can help put Thailand in the position of a global trade hub and a global financial hub. SET-listed Central Pattana Plc (CPN), a property and retail developer, plans to focus on extending its mixed-use portfolio by opening three new projects in the second half this year and 2022. The expansion is projected to happen in parallel with a recovery of Thailand's 3.6-trillion-baht retail business. Wallaya Chirathivat, CPN's deputy chief executive, said the company wants to open fully integrated mixed-use complexes in cities with high economic potential, including Ayutthaya, Sri Racha in Chon Buri and Chanthaburi, which are scheduled to open in September 2021, October 2021 and the second quarter of 2022, respectively. The total investment of 13.9 billion baht increases the tally of Central malls in Thailand to 36. Krungthai Bank (KTB) is seeking a meeting with the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) to ask it to reassess Thailand’s economic outlook in 2021 at the next JSCCIB meeting scheduled in April. KTB president Payong Srivanich said the bank would ask the joint committee to review its economic outlook forecast at 1.5-3.5 per cent this year despite distribution of the Covid vaccine. KTB sees more positive factors that push Thailand’s economy to grow as much as 4 per cent, although still lower than the global rate of 5.6 per cent. The KTB president cited many factors that may cause Thailand’s economic recovery pace to be slower than the global rate such as its dependence on exports and tourism as well as the country’s household debts that surged to a record high of 86.7 per cent of GDP, from 78 per cent before the Covid-19 outbreak. A move by a electronics firm in Nava Nakorn industrial estate to hire 300-400 new employees saw 1,000’s of people lining up to apply for the job. The company, ROHM Integrated Systems (Thailand), has become the talk of the town due to the sheer number of people lining up to apply for the job openings at the firm at a time when many companies have been laying people off. Media reports suggested that the line went for as much as 3 kilometers https://www.facebook.com/watch/?v=1580612388807220 Political News The Opposition Kao Klai (Move Forward) Party’s bill to seek an amendment to the lese majeste law Section 112 was rejected by the parliament. The party was told that a bill submitted by the party to amend Section 112 of the Criminal Code on lese majeste to promote and protect civil rights and freedom of speech contravenes the constitution. It will be interesting to see if Move Forward will devise other plans to renew its push. An extraordinary parliamentary session scheduled for April 7-8 to deliberate the referendum bill may be postponed as the Council of State has not yet finished its work on the bill. Deputy Prime Minister Wissanu Krea-ngam said he discussed the matter with Parliament President Chuan Leekpai, and they acknowledged the session scheduled for April 7-8 may be too early. Mr Wissanu quoted Mr Chuan as saying it is up to the government to decide on when the session should be held. Senator Poldej Pinprateep, who sits on a committee vetting the bill, said the Council of State, which is the government's legal advisory body, has told the committee that it cannot finish scrutiny of the bill in time for the session as it has to amend several sections related to Section 9. Therefore, the session scheduled for April 7-8 is likely to be postponed until after Songkran when parliament convenes for a special session. The core coalition Phalang Pracharat Party (PPRP) is facing a turmoil ahead of the party’s annual general assembly (AGM) scheduled in April following reports that the faction led by Deputy Agriculture and Cooperatives Minister Thamanat Prompow is lobbying for a replacement of the party’s secretary-general. While an overhaul of the party’s executive committee is expected at the upcoming AGM, it is said that Capt. Thamanat-led faction is seeking to replace Anucha Nakasai, the party’s current secretary-general, with Santi Prompat. This will likely lead to fraction between the Saam Mitr Group and Capt Thamanat’s faction. Another reports said Justice Minister Somsak Thepsutin, as a Saam Mitr key member, has offered himself as a candidate for the party’s secretary-general post to keep Saam Mitr’s leverage. Many PPRP MPs fear that the replacement of the party’s secretary general could fuel a new round of conflict inside the party. The Supreme Court’s Criminal Division for Political Office Holders accepted a case lodged against Phalang Pracharat Party MP (PPRP) for Ratchaburi Pareena Kraikupt who was accused by the National Anti-Corruption Commission (NACC) of holding property in a national forest reserve. At hearing on the case, the court declared that it would take on the matter as filed by the NACC. It also ordered Pareena to immediately suspend her MP duties. Both parties are to convene for a hearing on April 30 at 09:30 hrs. Pareena has been given 14 days to file a response. Pareena has previously filed a request for the court not to accept the case and for her duties not to be suspended. However, the court ruled that in accordance with the Constitution article 235 Section 3, she must be barred from political activities after sufficient evidence for the case was submitted. Public prosecutors postponed until May 13, 2021 the hearing of 13 political activists involved in the protest in front of the German Embassy in Bangkok on October 26, 2020 as the prosecutor has yet to finish the paperwork needed to file the case against the protesters.
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