Thailand 20241004: Abbreviated, Diffuse, Dilatory
Mekong Memo Thailand Weekly: Business, politics, finance, trade & legal news.
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Here is your Mekong Memo Thailand for this week.
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Headlines:
Seawall Project Sparks Environmental Concerns
BOT Launches Open Banking Data Initiative
Mass Transit Expansion Fails to Alleviate Traffic
Private Sector R&D Gives Lift in Innovation Index
Solar Power Boost with Rooftop Panel Incentives
Household Debt Eases as Loan Growth Slows
Stock Market Chief Focuses on Confidence
Google’s $1 Billion for Digital Infrastructure
Exports Expected to Grow 2% Despite Strong Baht
Thailand Tops for SEA Mobile Banking App Use
Airbnb Reports 30% Growth in Thailand Bookings
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Seawall Project Sparks Environmental Concerns
A Pheu Thai Party-backed proposal to build a seawall composed of nine artificial islands in the Gulf of Thailand has raised environmental concerns. The project, intended to protect Bangkok from rising sea levels and to create smart green communities, faces criticism for its potential impact on mangrove forests, marine biodiversity, and local livelihoods. Experts are arguing for nature-based solutions over physical infrastructure to address climate change. While the project promises economic benefits, many remain skeptical of its feasibility and environmental costs.
Read more: Bangkok Post
BOT Launches Open Banking Data Initiative
The Bank of Thailand (BOT) has introduced the "Your Data" initiative, an open banking program that allows individuals and SMEs to share personal data with financial institutions to improve access to financial services. The platform, set to be fully operational by 2026, is said to reduce borrowing costs, improve loan accessibility, and support a digital economy while protecting consumer data under the Personal Data Protection Act.
Read more: Bangkok Post
Mass Transit Expansion Fails to Alleviate Traffic
Despite the expansion of Bangkok's BTS and MRT systems, traffic congestion remains a major issue. Rising land prices near transit lines are pushing residents farther away, leading to longer commutes and increased reliance on private vehicles. The lack of integration between transit lines and housing planning exacerbates this problem. While mass transit systems boost land values, they fail to offer effective solutions to congestion, leaving many dependent on less efficient and affordable transport options.
Read more: Prachatai
Private Sector R&D Gives Lift in Innovation Index
Thailand has climbed to 41st in the 2024 Global Innovation Index, up from 43rd, thanks to increased private sector investment in research and development (R&D). This is the fifth consecutive year that Thailand leads in GDP share spent on R&D. The country is also amending laws on intellectual property to align with international standards and boost innovation.
Read more: Bangkok Post
Solar Power Boost with Rooftop Panel Incentives
Energy authorities are considering increasing the amount of solar power purchased from households to promote clean energy and rooftop solar installations. Under the new Power Development Plan (PDP), renewable energy will make up 51% of total energy use by 2037. A tax reduction scheme aims to incentivize 90,000 households to install solar panels by 2027. Solar power capacity is expected to rise significantly as part of the government's push to reduce reliance on fossil fuels.
Read more: Bangkok Post
Household Debt Eases as Loan Growth Slows
Household debt saw a slight reduction, thanks to slower loan growth driven by tighter financial regulations and the Bank of Thailand's efforts to curb risky lending and control rising debt levels. Household debt remains a concern, as many families still struggle with the long-term impacts of the pandemic.
Read more: Bangkok Post
Stock Market Chief Focuses on Confidence
Asadej Kongsiri, the new president of the Stock Exchange of Thailand (SET), intends to rebuild investor confidence after a series of corporate scandals and political turmoil have impacted the market. Measures have already been taken to address issues like illegal short selling and corporate fraud. Kongsiri plans to accelerate the implementation of these reforms, focusing on investor trust as trading volumes show signs of recovery, following a rally driven by the recent appointment of Paetongtarn Shinawatra as prime minister.
Read more: Bangkok Post
Google’s $1 Billion for Digital Infrastructure
Google is set to invest $1 billion in Thailand to develop a data center and expand its cloud infrastructure. The investment will support Thailand’s digital economy and create roughly 14,000 jobs annually until 2029. The new data center will also improve AI-driven services like search, maps, and Google Workspace.
Read more: Reuters (Announcement), Thai Examiner (Government Support), Bangkok Post (Analysts' Perspectives)
Exports Expected to Grow 2% Despite Strong Baht
Thailand’s exports are projected to increase by 2% in 2024, the upper end of the initial forecast. However, the rapidly strengthening baht, which has risen 5.2% against the dollar, will be a challenge for the remainder of the year. The baht is expected to negatively impact agriculture and food shipments. Despite a 7% export rise in August, exporters are cautious on fourth-quarter performance.
Read more: Bangkok Post
Thailand Tops for SEA Mobile Banking App Use
A recent study shows that 97% of Thai consumers use mobile banking apps at least once a week, making Thailand the leader in Southeast Asia for mobile banking frequency. Vietnam (95%) and Indonesia (90%) follow closely behind. Digital payments are becoming a part of daily life, with contactless payments, smartphones, and QR codes increasing usage. Real-time payments are also growing fast, with Thailand ranking highest in frequency of usage.
Read more: Nation Thailand
Airbnb Reports 30% Growth in Thailand Bookings
Airbnb reported a 30% increase in bookings in Thailand during the first half of 2024, thanks to growing demand from international travelers. Main destinations such as Bangkok, Phuket, and Chiang Mai were top choices for tourists, with a notable rise in long-term stays.
Read more: Travel Daily News Asia
That’s it for this week, thanks for reading!
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