August 5, 2020

Thai Enquirer Summary

Political News

 Prime Minister and Defence Minister General Prayut Chan-o-cha seems to have given in to the fact that he would have to listen to the demand for changes to the constitution although he came out to warn the student protesters “not to create chaos” after many advocated for reform of ’s constitutional monarchy.

 Gen Prayut has pledged his support for amendments to the current constitution, the move in which his critics say is just an attempt to placate anti-government protesters.

 He told all sides to wait for the House committee studying charter amendments to pass resolutions on the matter.

 He even said the government will prepare its own draft charter as he plans to ask the coalition parties to brainstorm with the core coalition party, according to Thai language Daily News newspaper.

 “I support changes that are needed and I am not in conflict.” He has not stated, though, what possible changes the parliament would discuss.

 There are also reports that Gen Prayut held a closed-door meeting with leaders of the key coalition parties, namely his Deputy Prime Minister and Commerce Minister Jurin Laksanawisit, as the Democrat Party leader, and Deputy Prime Minister and Public Health Minister Anutin Charnveerakul, as the Bhumjai Thai Party leader, to discuss the charter amendment proposals pushed by the opposition.

 Gen Prayut told the coalition parties that the government is ready to support the opposition’s call seeking amendments to the charter but he wants to weigh in on their proposals.

 Juti Krairerk, the Social Development and Human Security Minister and a Democrat Party member, urged the government to hasten the opposition’s call for charter amendments and said the government can claim the credit for initiating the amendments to the charter.

 The call for possible amendment of the charter did not go well with the appointed senators who have a 5-year term and are all selected by the military regime.

 Senate Speaker Pornpetch Wichitcholchai openly opposed growing calls from the government coalition parties and the opposition for the setting up of a new constitution drafting assembly (CDA).

 Pornpetch said he was not against the proposal to seek an amendment to Section 256 but he disagreed with the formation of a new CDA but said there could be many other ways, rather than amending Section 256 to pave the way for the new CDC.

 Pornpetch also insisted that senators do not attempt to block the charter amendment bid but said there are other issues that should be amended such as a provision in the constitution that deals with single ballots for elections.

 When asked about whether the provision that allowed the Senate to join the Lower House in voting for a prime minister should be amended, Pornpetch said he would have to reconsider this provision carefully.

 Prime Minister and Defence Minister Prayut Chan-o-cha said he planned to organise a forum within this month to allow the “young generation” to express their opinions. He said the forum could be in the form of discussions organised by state agencies to address issues or demands of the young generation.

 The non-political CARE group [standing for Creative Action for Revival & People Empowerment] led by Phumtham Wechayachai is also pushing for a constitutional amendment.

 The group plans to hold a seminar group entitled, “CARE inviting to think and drive forward the rewriting of dream charter of the people” on August 8 at LIDO Connect, Siam Square to push for constitutional amendments and the drafting of a true democratic constitution.

 The group expressed a clear stance for its demand for constitutional amendments to be conducted in 3 phases:

 Holding forums to the compiling opinions of academics, tertiary, university students and the general public, starting from August 8;

 Publishing educational tools to educate the public about the history of previous constitutions for a comparative study.

 Laying out the details of the draft charter for the new charter for the public. This draft charter will be called the CARE’s version of the people’s dream charter”.

 Reports of government spokeswoman Narumon Pinyosinwat resigning from her post yesterday (August 4) have fuelled rampant speculation of who will be picked as new government spokesperson.

 Some reports have come out that chances for Phalang Pracharat Party (PPRP) spokesman Thanakorn Wangboonkongchana will be picked as new government spokesman is also highly likely.

 However, when asked about the matter, Prime Minister and Defence Minister Prayut Chan-o-cha told reporters that he had yet to decide on the appointment but said he already had someone in mind and told reporters to wait and see if the person will be an insider or outsider, a man or a woman.

 He said the Cabinet has not put up an agenda to pick a new government spokesperson. Any party can make a nomination but the final decision rests with him.

 The cabinet meeting on Tuesday (August 4) did not talk about the issue, according to deputy government spokeswoman Traisulee Traisoranakul. However, there are reports that Gen Prayut is taking Thanakorn into consideration due to his former experience as former secretary to the finance minister who could immediately provide information and responses to political issues raised by government critics and the opposition.

 The House of Representatives has been asked to pay for 3.5 million baht’s worth of reserved airline tickets by Nok Air after many MPs and former MPs booked flights but failed to take them, Somboon Uthaiweignkul, the secretary to the House Speaker revealed.

 The move was revealed after executives of the airline sought a meeting with House Speaker on the occasion that they offered well wishes to Chuan on his birthday anniversary at Parliament yesterday (August 4).

 Somboon said the Secretariat of the House of Representatives received a letter on June 17 informing it about 3,522,419 baht in bills for collection from Nok Air. The expenses came from reserved tickets booked by 113 MPs and former MPs during 2012-2013. Some of them have reserved tickets worth 200,000- 300,000 baht.

 Initially, Chuan told the airline to send letter to inform MPs and former MPs in question to pay for their unpaid tickets because they are personal matter. The House is not liable to act on behalf of the company to ask for MPs and former MPs to pay for their unpaid bills.

 Political activist Srisuwan Janya, secretary-general of the Association for the Protection of the Constitution, said he will today (August 5) petition the Prime Minister to delay the appointment of new national police chief set for August 7 due to suspicion surrounding deputy national police chief Pol Gen Wirachai Songmetta’s transfer.

 Srisuwan said he would ask the Prime Minister to delay the appointment of new national police chief because there is sufficient ground that the transfer order signed by the national police chief for Pol Gen Wirachai is suspicious.

 He demanded Gen Prayut to halt the appointment of new national police chief until allegations against Pol Gen Wirachai who was accused of breaching serious disciplinary criminal action are resolved to ensure fairness and transparency.

 Prime Minister and Defence Minister Prayut Chan-o-cha yesterday (August 4) issued a stern warning over the shooting incident at an illegal gambling den on Rama III Road in Bangkok’s Yannawa District that he would “spare no one”.

 Four people including a police major were killed in a shooting incident according to Metropolitan Police Bureau commissioner Lt. Gen. Pakapong Pongpetra.

 Police reported that gunshots were fired at the venue in the small casino in Bangkok, the bodies of 2 women and 2 men were located including police Maj. Wathaseth Sumniangprasert, Pol Lt Gen Pakapong said in a news conference yesterday.

 Wathaseth was not on duty Monday night and was taking part in the gambling.

 An initial investigation found that the other dead man had shot the police officer and then turned and fired wildly at the crowd, killing the 2 women. An unknown person then shot and killed the first gunman and fled before police could arrive from a nearby precinct, Pol Lt Gen Pakapong said, adding that it seemed the gunman bore some grudge against the policeman.

 The issue of further investigation into the shooting seems to be taking similar path to the case of Red Bull heir Vorayuth “Boss” Yoovidhya as police is saying that they did not find any close circuit tv cameras when they entered the area. Although pictures from yesterday showed CCTV cameras all over the place.  Take a look for yourself.

The police reached the venue of the shoot out nearly 2 hours after the incident thus giving enough time for the illegal gambling den to clear up the casino and the CCTV cameras.

The Casino before all this with a picture taken some time ago

 On the latest development on the Red Bull heir Vorayuth “Boss” Yoovidhya’s hit-and- run case that killed of a policeman, the Office of Attorney General (OAG) has ordered a new investigation into the case yesterday (August 4).

 Prosecutors said new evidence showed that Vorayuth was driving much faster than first believed and might have had cocaine in his system, allowing them to reopen the case.

 The OAG’s decision comes after previous charges were dropped last month, sparking outrage.

 In a press conference, the OAG said new evidence meant that the case could be reopened.

 It said the speed of the Ferrari at the time of the accident had previously been put at 80km/h (50 mph), but an expert opinion not included in the police report had determined that the speed was closer to 170km/h.

 “This is new evidence according to the law,” said a spokesman for the office.

 Vorayuth could also face a new charge relating to drug use. Blood tests following the accident showed traces of cocaine in his system, but prosecutors say he was not charged at the time because of a possible false positive from medication he had allegedly taken.

 The cabinet meeting yesterday (August 4) approved a budget of 952 million baht earmarked for 2020-2022 to improve capacity of C-130 aircraft.

 The agenda is said to be in the form of a printed classified document that was quickly distributed at the cabinet meeting and was not be publicly disclosed to the media.

Economic News

 The Cabinet yesterday (August 4) approved the Finance Ministry’s proposal to borrow US$1.5 billion (Approx. 48 billion baht) from the Asian Development Bank to finance Covid-19 recovery projects, said Rachada Dhnadirek, deputy government spokeswoman.

 The borrowing scheme is part of the government’s plan to issue a royal decree to borrow 1 trillion baht to revive the virus-hit economy.

 The ADB loan will raise foreign currency debt to 2.46 per cent of total public debt, well within the prudent limit set at 10 per cent, Rachada said.

 The ministry said it needs to borrow to offset a budget deficit in fiscal 2021 and the government is still in dire need of a budget to stimulate and rehabilitate the economy.

 Thailand’s exports may contract by 15% this year as the coronavirus pandemic hits global demand and a stubbornly strong baht adds to pressure, the Thai National Shippers’ Council (TNSC), said yesterday (August 4).

 Exports, a key driver of Thai growth, slumped 15.2 per cent in the second quarter from a year earlier and 7.1 per cent in the January-June period.

 The export picture in the third quarter will be similar to the second period as the global economy has yet to recover, TNSC chairwoman Ghanyapad Tantipipatpong, said.

 “We want to shout to the central bank to help take care of it,” she said. “The Thai economy is not better than the global economy but why the baht keeps strengthening?”

 The Treasury Department is set to decide whether giving a rent waiver for Suvarnabhumi Airport this week – possibly as much as 2.9 billion baht – after Airports of Thailand Plc (AOT) sending a clarification letter for the Covid-19 impact on corporate finance activity. Asia Plus Securities (ASP) has given a target price of AOT at 57 baht per share.

 The AOT has a sent a letter to the Treasury Department to explain impacts of the COVID-19 pandemic on its revenue in the hope that the Department will wave rent for the AOT by 2.9 billion baht.

 The Bank of Thailand (BoT) is expected to hold its key interest rate steady at its meeting today (August 5) and preserve its limited ammunition for later, even as the coronavirus pandemic pushes the economy toward its worst annual performance ever.

 All but two of 26 economists in a Bloomberg survey expect the central bank to keep its key rate unchanged at 0.5%, a historic low after three reductions so far this year. The other two expect a 25 basis-point cut.

 “We expect BOT to keep its policy rate unchanged this week because of its less dovish tone at the previous meeting, despite a sharp downgrade to its growth forecast,” said Euben Paraceulles, an economist at Nomura Holdings Plc. Policy makers “will likely want to assess the impact of already implemented easing measures and the pace of the recovery after the economic re-opening.”

 Tim Leelahaphan, an economist at Standard Chartered Plc, said, “all economic reasons warrant a further rate cut,” said citing the poor economic outlook, negative inflation and high household debt.

 “We’re not certain about the timing, as they may want to wait for the new governor or preserve the limited policy space for later. Zero or negative rates are less likely, but not off the table.”

 The central bank has repeatedly voiced concern about the impact on the economy and said it would assess the need for additional steps to curb baht gains.

 There are reports that Supattra Paopiamsap, deputy group chief executive of Pruksa Holding Plc (PSH), signed her name to appoint Piya Prayong as new chief executive officer of Pruksa Real Estate (PS), taking effect from August 1, 2020

 Mr Piya’s appointment is part of the company’s major restructuring of executives for the second-half of 2020.

 The appointment of Piya as PS’s new CEO is expected to lead to a revision of investment plans in an aggressive manner to keep Pruksa’s position as the leader in residential property development.

 Piya said he is tasked with pushing through 2 urgent missions in the remaining 6 months of the year: one is to review the company’s investment in low-rise projects and push for ownership transfers of condo projects that are set to be completed this year.

 Narai Intertrade Co, a Thai maker of handbags and textile products under the NaRaYa brand, announced the shutdown of its factory in Buri Ram province from August 16 due to the lack of product orders due to the COVID-19 crisis.

 The company said it could not fulfil workers ‘demand to meet their daily rate as required by law.

 More than 300 workers of the company rallied on August 1 this year in front of the factory in Buri Ram’s Lam Plai Mat district, accusing their employer of

underpaying employees after the company reduced their daily income to 198 baht per day earlier this year.

 The company explained on August 4 that it had sent representatives to negotiate with workers asking them to accept cost-cutting measures taken by the factory owner amid Covid-19 lockdowns earlier this year. It claimed that the cost- cutting measures in which workers agreed on is to take a 3-month daily pay cut (from May 1-July 31, 2020) instead of the regular 320 baht per day would allow workers to claim 62% of their daily wage from the Covid-19 business relief programme.

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General News

 Thailand logged 1 new COVID-19 case in the past 24 hours. The new case is a 33-year old woman, who arrived in Thailand from Russia on July 20th and entered state quarantine in Bangkok. She was cleared of the virus in the first test, but the second confirmed her infection, although she remains asymptomatic. Cumulative infections in Thailand, to date, are 3,321, with 3,142 recoveries and 58 deaths. 121 others remain at hospital.

 Globally

 The high numbers are back in the United States with more than 54,000 new cases

 To see a good interview with Donald Trump please click on

 https://t.co/WoqlXCaCI9?amp=1

Political News Headlines in Thai Media

 If you ask the people in Thailand, ‘who is the biggest mafia here?’ The most likely answer will be the Thai police.

o Link- https://www.thaienquirer.com/16500/opinion-cop-casino-death-shows-prayut- government-not-serious-about-police-reform/

 Factionalism within Thailand’s ruling Palang Pracharath Party has led to the a change in party leadership and the reshuffle of the cabinet, with former party leader and Deputy Prime Minister Uttama Savanayana resigning from his post and the party.

o Link- https://www.thaienquirer.com/16491/not-all-is-well-in-thailands-ruling-party- after-cabinet-reshuffle-change-in-leadership/

 Despite a giant foul up that could have resulted in the spread of coronavirus in Rayong involving an Egyptian military officer, the Thai government will, this week, press forward with more military drills involving US and Japanese soldiers.

o Link- https://www.thaienquirer.com/16487/despite-egypt-officer-foul-up-thailand- goes-forward-with-foreign-military-drills/

 The cabinet has approved the Ministry of Public Health’s measures to allow patients with medical certificates and community doctors to produce, import, export, sell and possess medical marijuana, the government said on Tuesday.

o Link- https://www.thaienquirer.com/16524/the-cabinet-approves-medical-marijuana- farming-for-patients-and-community-doctors/

 Prime Minister Prayut Chan-o-cha today said the government will meet with representatives of the young generation this month to listen to their opinions and visions for Thailand’s future.

o Link- https://www.nationthailand.com/news/30392433?utm_source=category&utm_mediu m=internal_referral

 Prime Minister Prayut Chan-o-cha has vowed to push for constitutional amendments, saying the government will present its own version of a charter rewrite bill in the next parliamentary session.

o Link- https://www.bangkokpost.com/thailand/politics/1962675/pm-vows-to-change- charter

 Thai soldiers have been posted at the two hotels in Bangkok where 107 visiting US troops are staying under 14-day quarantine, to ensure no recurrence of the incident in Rayong when an infected Egyptian soldier went out visiting malls.

o Link- https://www.bangkokpost.com/thailand/general/1962571/army-officers-posted- at-quarantine-hotels-for-visiting-us-troops

 Prime Minister Prayut Chan-o-cha has vowed he will "spare no one" if Monday night's shooting in Bangkok involved illegal police activity in connection with underground gambling.

o Link- https://www.bangkokpost.com/thailand/general/1962727/prayut-warns-police- after-den-shootout

 The cabinet has approved a Labour Ministry plan to allow more than half a million foreign workers with proper travel documents to continue their employment until the end of May 2022.

o Link- https://www.bangkokpost.com/thailand/general/1962707/govt-to-grant- migrants-longer-stay

Economic News Headlines in Thai Media

 Next week, the Center for COVID-19 Situation Administration (CCSA) will finalize measures to allow foreign businesspersons entry into Thailand, Prime Minister Prayut Chan-ocha said on Tuesday.

o Link- https://www.thaienquirer.com/16510/ccsa-will-consider-foreign- businesspersons-for-admittance-into-thailand-constitutional-amendment-coming- prayut-says/

 The Asian Development Bank (ADB) is loaning Thailand Bt46.7 billion (US$1.5 billion) to combat the impact of Covid-19.

o Link- https://www.nationthailand.com/business/30392430?utm_source=category&utm_me dium=internal_referral

 An analysis from Kasikorn Securities revealed that it has lowered its suggestion of AOT’s shares from “buy” to “sell” and reduced the target price down to 42.55 per cent, from 70.50 baht to 40.50 baht.

o Link- https://www.thaienquirer.com/16519/kasikorn-abruptly-advises-aot-shares- from-buy-to-sell-dropping-42-55-per-cent-on-target-price/

 Deputy Prime Minister Wissanu Krea-ngam said on Tuesday (August 4) that there will be no Songkran compensation holiday this month because the government needs to consider the option of granting a public holiday from several aspects.

o Link- https://www.nationthailand.com/news/30392416?utm_source=category&utm_mediu m=internal_referral

 Most people are satisfied with the state welfare card scheme introduced by Palang Pracharat Party while urging political parties to focus on solving economic problems, according to an opinion survey.

o Link- https://www.nationthailand.com/news/30392402?utm_source=category&utm_mediu m=internal_referral

 Indorama Ventures Pcl (IVL), a global chemical producer, has entered into a definitive agreement to acquire Industrie Maurizio Peruzzo Polowat (IMP Polowat), a PET recycling facility in Poland.

o Link- https://www.nationthailand.com/business/30392417?utm_source=category&utm_me dium=internal_referral

 Exports may contract by as much as 15% this year if the country averages just US$16.4 billion a month in the second half of the year, according to a group of Thai exporters.

o Link- https://www.bangkokpost.com/business/1962803/tnsc-15-export-decline-if- 2nd-half-rebound-falters

 The banking sector continued to endure transactional crashes in the second quarter, albeit at a lower rate, as transaction volume surged.

o Link- https://www.bangkokpost.com/business/1962827/banks-transaction-crash-rate- down-in-q2

 The cabinet on Tuesday gave its approval for 884.62 million baht to be spent to fund 157 economic recovery projects in 57 provinces around the country that have been hit by the Covid-19 pandemic.

o Link- https://www.bangkokpost.com/thailand/general/1962647/covid-hit-businesses- get-b884m-boost

 SET-listed Energy Absolute (EA) expects 2020 revenue will fall by 25% from an earlier estimation to 15 billion baht, on par with last year's earnings, because of the pandemic.

o Link- https://www.bangkokpost.com/business/1962851/ea-vehicle-deliveries- kneecapped-by-pandemic

 The Government Savings Bank (GSB) is proposing that the Finance Ministry adjust emergency loan conditions to expand the credit line for informal workers after the loan programme received a tepid response.

o Link- https://www.bangkokpost.com/business/1962867/gsb-floats-credit-plan-for- informal-labour

 Aggregate net profit of SET-listed companies likely fell by 40-50% year-on-year to 80-90 billion baht in the second quarter after lockdown measures crippled economic activity, analysts say.

o Link- https://www.bangkokpost.com/business/1962835/tisco-listed-firms-set-for-49- q2-profit-hit

 The company building a high-speed railway line linking Don Mueang, Suvarnabhumi and U-Tapao airports has invited experts from various fields to advise it on the best way forward.

o Link- https://www.bangkokpost.com/business/1962735/the-bullet-trains-to-make- thais-proud

 The Eastern Economic Corridor (EEC) Office of Thailand has recently called on Thai embassies in 30 countries to approach foreign firms to invest in the EEC, the office’s secretary-general Kanit Sangsubhan said.

o Link- https://www.nationthailand.com/business/30392429?utm_source=category&utm_me dium=internal_referral

Issues to be watched out for

 August 17, 2020 – The first day of hearings for Thai Airways International Plc (THAI)’s bankruptcy case.

 August 17, 2020 – The National Economic and Social Development Council (NESDC, formerly known as the National Economic and Social Development Board or NESBD) is scheduled to release 2nd quarter GDP data.

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

 August 31, 2020 – The government is expected to lift lockdown restrictions imposed under the emergency decree.

 September, 2020 – The 3.3-trillion-baht budget for Fiscal Year 2021 proposed by the government is expected to sail through parliament.

 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.

 October 27, 2020 – The Central Bankruptcy Court is set for first hearings for Nok Airlines regarding the rehabilitation process.

Key Data

SET Index 1,330.81 +9.58

 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 August 4, 2020

Buying, Selling or Transfer of shares by Owners/Management

Stock Code Volume Value Action

ASP 4,000,000 1.8 Purchase EP 300,000 0.52 Sale MINT 1,704,348 17.5 Purchase MINT 504,638 17.5 Purchase RAM 60,000 - Transfer SALEE 500 0.65 Purchase GLOBAL 100,100 19.1 Sale

GLOBAL 363,000 19.51 Sale UKEM 3,170,900 0.65 Sale UTP 210,000 11.3 Purchase UTP 100,000 12.5 Sale

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 4 Aug 2020 Unit: M.Baht Investor Type Buy Sell Net Value % Value % Value % Local Institutions 6,735.77 12.22 4,301.35 7.8 2,434.42 - Proprietary 6,008.76 10.9 5,607.11 10.17 401.66 -

Trading Foreign Investors 18,846.45 34.18 20,669.96 37.49 -1,823.50 - Local Individuals 23,544.63 42.7 24,557.20 44.54 -1,012.57 - Monthly Cumulative between 1 - 4 Aug 2020 Unit: M.Baht Investor Type Buy Sell Net Value % Value % Value % Local Institutions 11,622.23 10.58 9,676.87 8.81 1,945.36 - Proprietary 12,578.78 11.45 12,339.81 11.23 238.97 - Trading Foreign Investors 37,891.41 34.49 41,167.81 37.48 -3,276.40 - Local Individuals 47,759.35 43.48 46,667.28 42.48 1,092.06 - Yearly Cumulative since 1 Jan - 4 Aug 2020 Unit: M.Baht Investor Type Buy Sell Net Value % Value % Value % Local Institutions 1,080,502.30 11.13 1,009,084.55 10.4 71,417.75 - Proprietary 980,761.59 10.1 979,503.05 10.09 1,258.54 - Trading Foreign Investors 3,397,017.71 35 3,627,117.65 37.37 - - 230,099.94 Local Individuals 4,248,858.91 43.77 4,091,435.27 42.15 157,423.65 -

Total Trading Value 55,135.61 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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