Tag: Business

Thailand’s former finance minister and Kla Party Leader Korn Chatikavanij has strongly advised the Thai government to take precautionary steps to protect against any fallout from China’s Evergrande crisis.

In his Facebook post today, he said that, for the past several weeks, the government has been busy dealing with the floods, while foreign media and economists have been closely monitoring Evergrande.

The Chinese property giant is the most indebted developer in the world at present, reportedly in the hole by as much as US$305 billion due to its heavy investment in real estate projects in China and a wide range of other industries, including electric cars, health care services, consumer products and even a theme park.

Its share price has plunged nearly 80% this year and trading of its bonds have been repeatedly halted by Chinese stock exchanges. It has defaulted on payments to several creditors and is on the brink of collapse.

Korn recalled that, during the subprime mortgage crisis in the US, which contributed to the global financial crisis from 2007 to 2010, when he was the finance minister, he and his economic team had closely monitored the situation and had taken precautionary steps to cushion the impacts on the Thai economy, resulting in the country having recovered from the crisis faster than many others.

“My question is, is Thailand prepared to cope with the Evergrande crisis?” he asked.

The Kla party leader said the Chinese property development giant’s insatiable appetite for debt has led the company to the brink, with its inevitable impacts on the Chinese banking system and the political establishment.

Although the Chinese government has defined three “redline” benchmarks for Evergrande, to cushion the impacts on the real estate business in China, Korn said that the company has failed to meet all the three, adding that he does not think that the Chinese government will help the company’s shareholders.

Although the company’s financial crisis is yet to affect Thailand, Korn warned that, because of Thailand’s partial economic dependency on the Chinese market, more so than on the US, “when we were struck by the crisis, we must have a plan in place to cushion the impacts and must not be complacent because it is far away.”

Source: Thai Public Broadcasting Service

Today (Tuesday) Thailand’s cabinet approved, in principle, a measure to attract “high potential” foreigners, including wealthy retirees and specialists, to stay long term in the country in a bid to promote foreign investment and to improve the struggling economy.

Government spokesman Thanakorn Wangboonkongchana said that Thailand has set a target to attract as many as one million of these classes of foreigners in the next five years, with an expectation that their spending and investments during a five-year period will inject one trillion baht into the Thai economy, including about 800 billion baht in foreign investment and 270 billion baht in taxes.

He also said that the arrival of foreign experts, attracted by this measure, will help strengthen the private business sector, which the government aims to promote, including industry, services, infrastructure and logistics, in line with the 20-year national strategic plan.

The four groups the government would like to lure to Thailand include high-income earners, foreign retirees, experts in various fields and those who want to use Thailand as their base for work.

To attract these high potential individuals, a new long-term resident visa or smart visa will be issued, under which they will be granted some privileges, such as not being required to notify Thai authorities every 90 days.

Thanakorn said that laws and regulations regarding land ownership will also be amended to attract foreign investors, adding that other incentives include tax exemptions and allowing foreigners who want to use Thailand as their workplace to work for their employers abroad or here in Thailand.

The requirement that four Thai nationals will have to be employed for every foreigner hired will also be lifted, he added.

The Board of Investment, the Interior and Labour ministries, the Royal Thai Police, the Finance Ministry and National Economic and Social Development Council (NESDC) have been assigned by the cabinet to develop a detailed plan for the implementation of this ambitious scheme.

The NESDC has also been assigned to assess this scheme every five years, including all the incentives, and consider extending any of the incentives as it thinks fit.

Source: Thai Public Broadcasting Service

Thailand’s Prime Minister Prayuth Chan-o-cha has refuted the Opposition’s claim that his government should be held accountable for all the COVID-19 deaths, as a result of its failures in managing the pandemic, but has vowed to navigate the country through the crises and to rebuild the economy during the last four months of this year.

In his final statement, before the end of the four-day censure debate Friday, the prime minister told parliament that it is unfair to be accused of “trading in the deaths” of people.

He told the opposition to acknowledge the vast number of people recovering from the contagion, claiming that the recoveries are accounting for 85% of those infected, thanks to everyone’s cooperation in the joint efforts to contain the disease.

He, nevertheless, thanked opposition MPs for the criticisms made during the debate and promised to consider their recommendations.

He vowed to work with all stakeholders and to do his best to move Thailand forward into a better future, adding that the government will, for the rest of the year, try to continue stimulating the struggling economy with populist packages such as the 50:50 co-payment scheme and the state welfare cards.

The prime minister also took the opportunity to announce the government’s six-point strategy, aimed at driving the country forward, economically, environmentally and socially.

He said the government will continue to invest in infrastructure development projects, such as road building, airport and rail projects and development of the eastern economic corridor project.

The government will push for 30% electric vehicle use by the year 2030, 50% alternative energy production and increased forestation.

Development of future industries, development and support of SMEs and reforms of state agencies are also on the government’s drawing board for implementation, he said.

In his closing statement, opposition chief whip Suthin Klangsaeng insisted that the government had failed miserably in the fight against the COVID pandemic and that the accusation that the government was “trading in death” was not an overstatement.

“Everyone is afraid of death. Therefore, anyone who causes the death of other people through their mismanagement should be regarded as complete failure,” said Suthin.

He also said he was not surprised when the prime minister claimed that the COVID infection rate in Thailand is lower than in the UK, because Britain screened about 700,000 people a day, compared to only 40,000 people a day in Thailand, or just 6% of the number.

Source: Thai Public Broadcasting Service (Thai PBS)

The call would go out the moment officials were spotted nearing the informal market. Vendors would quickly unfurl the parasols and hide them under the mats before quickly walking away, leaving the stalls unattended. Some even forgot to douse the fires used for cooking before leaving.

This was a common scene on weekend mornings at Thai Park, the so-called Thai market at Preussen Park in Berlin, Germany, for several years. Now the days when undocumented vendors had to run away from their own stalls to avoid being arrested are over.

For several years, the Thai Park was threatened with closure, the victim of what many called its annoying, illegal operation. The market had taken over public space, disturbing nearby residents and leaving them unable to freely use the community park.

This year, at the beginning of August, Thai Park was finally allowed to return with a new look and proper management and is now legally operated by Thailandische Verein in Berlin, a Thai association in Berlin. Earlier this year, the association coordinated with the Charlottenburg-Wilmersdorf district office to allow a weekend food market in the park. The agreement was reached and the concept was implemented, allowing the market to soft-launch on August 1.

“Many of the [documented] vendors used to be regular vendors in previous years,” said Thatsawan Koophimai Te Gude, the association’s co-president. There are 30 stalls, shared by 52 registered vendors. To be able to sell at the market, every vendor has to meet the cooking and hygiene standards as well as pay tax.

Yet, no matter how much the appearance and management have improved or changed, the taste of the food sold at the park remains unchanged. Just ask any visitor to the market. Local residents too would probably give a positive answer, noting that the food offered at the park is original and affordable. Thais would go a step further, saying that the dishes are even more original than those available in Thailand, where tastes are constantly evolving to meet changing trends and the use of mass-produced ingredients.

Thousands of miles away from its home country, taste in this tiny corner of Berlin isn’t something to worry about.

“I’ve never had deep-fried pork rinds this good,” said a Thai tourist from Bangkok who visited the market a few years ago.“Somtam [Northeastern-style spicy papaya salad] is even more original than many offered in Bangkok,” said another.

The market has been affected by the Covid-19 pandemic, making the market less active over the past year. But its return doesn’t disappoint. Despite a smaller number of stalls, there’s still a wide range of popular dishes. The list ranges from Pad Thai to somtam and from noodles to pork skewers. Laab moo(Northeastern-style minced pork salad) and naem (Northeastern-style sausage) are regular menu items.

Simple snacks and desserts, which are becoming harder to find in Bangkok because they are too simple, such as kai-hia (deep-fried donut stuffed with mungbean paste) or gluay-kaek (deep-fried battered banana) are available here too. Lodchong (pandan-flavoured rice flour droplets in sweetened coconut cream syrup), itim kati (coconut cream ice cream) are also on sale. Ever bubble tea is on offer this summer.

Some have interpreted the legalization of the market as meaning a loss of charm and uniqueness. But the new management definitely means an improvement in cleanliness, hygiene and in environmental friendliness. Food stalls, 2.5m by 2m each, are arranged in a designated area; a flexi-glass panel is installed to maintain hygiene; all Styrofoam containers are gone and plastics are gradually being replaced by paper containers and wooden utensils; and there’s no more cleaning in the park grounds. Next year, all containers will be reusable.

To meet the requirements of the city, Thatsawan and the other five members of the management team will take turns to check with vendors to ensure all cooking ingredients are properly stored in the fridge. This is to avoid any possible rotten food, risk in the heat of summer.

According to its official website, www.thaiparkberlin.de, the market started off in the early 1990s as a picnic site for a group of German-Thai families where they shared time and food. Food sharing soon became food selling when some wanted to come but didn’t want to prepare the food. Before they knew it, it grew into an informal market where not only Thais but Germans and tourists would drop by for food and desserts that had a reputation of being affordable and authentic.

Barbecuing is allowed in a designated area of some parks in Berlin for family picnics, however, cooking and selling food in the middle of Preussen Park has always been illegal. In the past decades, Thai Park has received mixed reviews. Some loved the market for its unique charm and authentic Thai food at affordable prices; others hated it because they were being deprived of their public space in the summer and were disturbed by the food smell.

IF YOU’RE GOING

Soft-launched on August 1, the market now operates from Fridays to Sundays, between 10am and 8pm. This year, will be opened until October 31. Currently, there are 30 stalls, shared by 52 vendors.

Source: Thai Public Broadcasting Service (Thai PBS)

The 21st Meeting of the ASEAN Trade Facilitation Joint Consultative Committee (21st ATF-JCC) was held on 26th and 28th July 2021, via video conferencing at the International Convention Centre, Brunei Darussalam. The meeting was chaired by Yang Mulia Dr. Hajah May Fa’ezah binti Haji Ahmad Ariffin, Permanent Secretary (Economy) at the Ministry of Finance and Economy, Brunei Darussalam as the Chair of ATF-JCC for 2021.

The meeting was also attended by representatives of the ASEAN Member States, Chairpersons or representatives of the relevant ASEAN sectoral bodies as well as external parties such as the ASEAN Business Council, Joint Business Councils (JBCs), Asian Trade Centre (ATC), Economic Research Institute for ASEAN and East Asia (ERIA) and Enhanced ASEAN Regional Integration Support by the EU (ARISE) Plus.

Following the 20th ATF-JCC meeting held in May 2021, the two-day meeting discussed the latest updates on the ASEAN Work Programme on Trade Facilitation which included updates on the Non-Tariff Measures Cost Effectiveness Toolkit (NTM Toolkit), which is one of Brunei Darussalam’s Priority Economic Deliverables for 2021; the progress on the Implementation Plan of the ASEAN Comprehensive Recovery Framework (ACRF); updates on the 2021 ASEAN Trade Facilitation Work Programme and Priorities; proposed ASEAN Trade Facilitation Work Programme and Priorities for 2022; expansion of the list of essential goods for the Memorandum of Understanding on the Implementation of Non-Tariff Measures on Essential Goods under the Hanoi Plan of Action on Strengthening ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the COVID-19 Pandemic; and the Mid-Term Review of AEC 2025.

The meeting also held engagements with the external parties from private sectors, ERIA, ATC, and ARISE Plus to discuss areas for technical cooperation and assistance. One of the notable developments is the publication of the ASEAN Seamless Trade Facilitation Indicators (ASTFI I) Baseline Study which can be publicly accessed online. The ASTFI Report provides the status and progress of the trade facilitation environment in ASEAN and in ASEAN Member States, highlighting trade facilitation efforts and best practices in ASEAN, as well as in each ASEAN Member States.

Source: The Government Public Relations Department

With regard to the official visit to Thailand on 26-28 August 2021 by Mr. Chung Eui-yong, Minister of Foreign Affairs of the Republic of Korea (ROK), Mr. Tanee Sangrat, Director-General and Spokesperson for the Ministry of Foreign Affairs of Thailand, shared some details of the talks that took place between Mr. Chung Eui-Yong and Mr. Don Pramudwinai, Deputy Prime Minister and Minister of Foreign Affairs of Thailand on 27 August 2021.

Foreign Minister Chung stressed that President Moon Jae-in personally instructed him to visit Thailand, given President Moon’s good relations with the Prime Minister of Thailand. This is Foreign Minister Chung’s first visit to Thailand in his capacity as Foreign Minister. Moreover, it is also the first visit to Thailand by any foreign minister from the ROK in three years.

To Foreign Minister Chung, Thailand has held a special place in his family’s heart since his posting in Thailand 37 years ago. Today, he has witnessed Thailand’s impressive advancements from his posting till the present, and is confident that Thailand will once again become “the miracle on the Chao Phraya River” in the post COVID-19 period.

On the ROK’s cooperation with Thailand on vaccines, which is now the Thai government’s top priority, Foreign Minister Chung informed that the ROK is now vaccinating her people and aims to vaccinate 70 percent of her population by September, in time to celebrate the big autumnal festival in the country. At the end of September, the ROK will also be able to cooperate with Thailand on vaccines.

Foreign Minister Chung said that he had met Korean businessmen and investors in Thailand on 27 August before his meeting with Mr. Don Pramudwinai. During this meeting, he expressed his full confidence in the Thai government’s stability and noted that the ROK had reached top ranking for foreign direct investment in Thailand in the first quarter of this year.

The Deputy Prime Minister and Minister of Foreign Affairs of Thailand emphasized strategic cooperation between the strong sectors of both countries, particularly the service sector, which is currently a priority for the ROK, as well as design capabilities. The ROK also has strong potential and best practices in the areas of research and incubation centers for new businesses. Both sides agreed to expand cooperation on AI, technology related to robotics, IoT, cyber security, the green industry, the electric vehicles industry, the construction industry, and cooperation on smart cities.

The ROK proposed a 2+2 meeting between the Foreign and Health Ministers, as well as a summit on industrial cooperation, which the ROK would host.

In addition, both sides discussed ways to enhance Thailand-ROK cooperation under bilateral and multilateral frameworks, as well as military and security cooperation.

The ROK agrees with, and fully supports Thailand’s BCG (Bio-Circular-Green Economy) concept. The ROK stands ready to cooperate with Thailand in all dimensions and also has a new policy, known as the Green New Deal, and the Partnering for Green Growth and Global Goals 2030 Summit (P4G), which is aligned with Thailand’s BCG concept.

Source: The Government Public Relations Department

The Philippines said on Wednesday it has approved the commercial propagation of genetically modified Golden Rice after more than a decade of field tests that drew strong opposition from anti-GMO activists.

The Southeast Asian country, which is one of the world’s biggest rice importers, is the first nation to approve the Vitamin A-enriched grain for commercial cultivation, according to the Philippines-based International Rice Research Institute (IRRI), which helped develop Golden Rice.

Formal biosafety approval was issued last month, the Department of Agriculture (DA) and its attached agency, Philippine Rice Research Institute (PhilRice), said in a statement.

“With the biosafety permit, DA-PhilRice has now commenced producing seeds for cultivation, which usually takes 3-4 cropping seasons,” said Ronan Zagado, the government spokesman for the Golden Rice initiative.

Golden Rice will be initially deployed in areas with a high prevalence of Vitamin A deficiency by the third quarter of 2022, before it can become commercially available for public consumption, he told Reuters.

The Philippines had been expected to approve the widespread planting of Golden Rice as early as 2011, but faced public concerns over health risks and opposition from various sectors.

Greenpeace has denounced the approval and called on the agriculture department to reverse the decision.

“The DA needs to ensure that farmers are central in a green and just recovery from the pandemic, and are supported by resilient food and farm systems in the face of the climate emergency,” said Wilhelmina Pelegrina, senior campaigner for Greenpeace Southeast Asia.

PhilRice Executive Director John de Leon, however, allayed health risk concerns.

“We have generated extensive data on the safety (of Golden Rice) in terms of national and international safety standards,” he said.

Golden Rice has received food safety approvals from regulators in Australia, New Zealand, Canada, and the United States, and is undergoing final regulatory review in Bangladesh, according to IRRI.

Source: Thai Public Broadcasting Service (Thai PBS)

Permanent Secretary at the Ministry of Transport and Infocommunications (MTIC), Haji Mohammad Nazri bin Haji Mohammad Yusof attended the 51st ASEAN Senior Transport Officials Meeting (51st STOM) on 8 – 9 June 2021 via video conference.

The 51st STOM was chaired by Mr. Chheing Pich, Director-General, General Department of Logistics, Ministry of Public Works and Transport of Cambodia in his capacity as Chairman of the ASEAN Senior Transport Officials Meeting (STOM) in 2021.

The STOM discussed on the progress and status of programmes, activities and projects under the Kuala Lumpur Transport Strategic Plan (KLTSP) 2016-2025, which are implemented by the ASEAN Transport Working Groups. The STOM highlighted the successful conclusion of the ASEAN-EU Comprehensive Air Transport Agreement (ASEAN-EU CATA), the world’s first bloc-to-bloc air services agreement, during the Extraordinary ASEAN-EU Senior Transport Officials Meeting on the ASEAN-EU CATA held on 2 June 2021. ASEAN and EU will now submit the ASEAN-EU CATA for legal scrubbing in preparation for signing at a date to be confirmed later.

The STOM also exchanged views on the progress of implementation of transport-related initiatives under the ASEAN Comprehensive Recovery Framework (ACRF) as well as cooperation with STOM dialogue partners. The outcomes of the 51st STOM would be followed by the 52nd STOM to finalise the Annual Priorities/Key Deliverables for Transport in 2021 for the consideration of the 27th ASEAN Transport Ministers (ATM) Meeting, which is scheduled to take place in November 2021.

Also present at the meeting were senior officials from the Ministry of Transport and Infocommunications (MTIC) as well as relevant departments and authority under MTIC.

The ASEAN Senior Transport Officials Meeting (STOM) convenes twice a year to review and coordinate transport-related programmes, activities and projects for the consideration of the ASEAN Transport Ministers.

Source: Ministry of Transport and Infocommunications

Source: The Government Public Relations Department

The Thai government’s 3.1 trillion baht spending budget for the 2022 fiscal year passed its second and third readings in the House of Representatives late Saturday night, with 257 in favour and 180 against, following five days of debate. Four MPs voted to abstain and one did not cast a vote.

The bill will now move to the Senate, which is scheduled to debate it on August 30th.

During the debate last night, Move Forward party’s MP Natthapong Ruangpanyavuth said he disagrees with the decision, by the majority of the House budget scrutiny committees, to slash the budget allocated to local administration organizations and to put them under the Central Fund, adding that he does not trust Prime Minister Prayut Chan-o-cha, who is authorized to disburse money from the fund.

Defending the cuts, Palang Pracharat MP Wichien Chavalit, representing the majority of the House panel, said the 16.3 billion baht in cuts are residual budgets which are not expected to be spent during the current fiscal year.

Speaking on behalf of Prime Minister Prayut Chan-o-cha, at the end of the vote, Energy Minister Supattanapong Punmeechaow thanked all MPs for endorsing the budget bill, as he pledged that the government will take their observations, made during the debate, into consideration and will utilise the budget with utmost efficiency and in the public interest.

House Speaker Chuan Leekpai also thanked the MPs and adjourned the House session at about 1.20am.

Source: Thai Public Broadcasting Service (Thai PBS)

From August 24th, Kratom plants (Mitragyna speciosa) can be cultivated legally and its leaves, which contain psychotropic alkaloids, may be sold commercially in Thailand with impunity, while those being detained over Kratom-related offences, will also be released as their charges will null and void.

1,038 people serving prison terms for offences related to Kratom plants or leaves will be released, as a result of the enactment of the country’s amended narcotics law, published in the Royal Gazette on May 26th, deleting Kratom from the list of Category 5 controlled narcotics.

Government Spokesman Anucha Burapachaisri said today (Friday) that the amended law will also be applied to other alleged offenders, related to Kratom, who have been arrested, are being tried in court or are pending prosecution.

He warned, however, that even though planting Kratom or selling the leaves will no longer be an offence, mixing the leaves with other addictive substances, such as cough syrup, to produce a cocktail, known as 4 x 100, remains prohibited, adding that the import and export of Kratom leaves or products on commercial scale require a license.

According a study, conducted by the Thailand Development Research Institute (TDRI), decriminalization of Kratom will save the state about 1.69 billion baht a year, incurred by the arrest, prosecution and imprisonment, when found guilty, of offenders.

The TDRI estimates the cost of the legal process for each case at about 76,000 baht. There were 22,076 cases related to Kratom filed between January last year and the end of June this year.

Kratom leaves have properties, similar to those of morphine, which affect brain receptors and which can be addictive, subject to abuse and lead to dependence. Some Thai youths in southern provinces abuse the cocktail of Kratom leaves and cough syrup to get high.

Native to Southeast Asia, Kratom has been used for hundreds of years as a natural home remedy for fatigue, pain, diarrhea and muscle cramps. Its two most active compounds, mitragynine and 7-hydroxymitragynine, work on opioid receptors, but with fewer side effects than some other alkaloids.

Source: Thai Public Broadcasting Service (Thai PBS)