Thailand 20241011: Minimalist, Hedonistic, Arabesque
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:
Thailand Looking for ASEAN Economic Integration
Central Bank Independence Under Pressure
‘Helicopter Money’ Raises Concerns
EV Manufacturers Face Production Challenges
Smart Cities Development Gathers Momentum
P2P Lending Gains Traction in Fintech Landscape
Thailand Wins UN Human Rights Council Seat
Infrastructure Investment Writ Large
Thailand-Laos Cooperation in Rude Health
Crypto Hub Status in the Crosshairs
SET Bullish on Q4 Market Outlook
Tourism, Consumer Confidence Craters
Thailand Restarts Offshore Oil Talks with Cambodia
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Thailand Looking for ASEAN Economic Integration
Prime Minister Paetongtarn Shinawatra outlined her vision for a Thai economy powered by ASEAN. She talked specifically about improved transport connectivity, unified standards, and people flows as keys to increasing global trade and investment in the region. Paetongtarn emphasized four pillars for unlocking ASEAN's potential: improving the common market, presenting ASEAN as a global 'neutral zone', developing a better logistics network, and collaborating on environmental problems.
Read more: Nation Thailand
Central Bank Independence Under Pressure
The government's attempts to influence the appointment of a new central bank chairman could lead to "disastrous consequences" for Thailand's economy, according to a former Bank of Thailand governor. Economists and executives are calling on the new BoT board chairman to maintain stability of the financial system and ensure the country can tackle its economic challenges. The ongoing spat between the central bank governor and politicians over interest rate cuts has laid bare issues about the bank's independence.
Read more: Bangkok Post (Ex-Governor Warning), Bangkok Post (Stability Calls)
‘Helicopter Money’ Raises Concerns
The Thai government's US$13.8 billion "digital wallet" stimulus package is still causing worries about its economic impact. The scheme is interned to provide support for 45 million people suffering from Asia's highest level of consumer debt. Critics argue the program resembles previous populist measures and is a vote-buying tactic in disguise. The economy's sluggish performance and high debt levels have prompted the government to take action, but the long-term effects of such stimulus remain uncertain.
Read more: Asia Sentinel
EV Manufacturers Face Production Challenges
Chinese EV manufacturers in Thailand are facing a crisis with a glut of unsold cars. They are demanding government intervention to revise production quotas and subsidy conditions. The National Electric Vehicle Policy Committee, chaired by the Prime Minister is being asked to consider easing EV manufacturing requirements due to sluggish sales. At least eight Chinese EV makers are waiting to have talks with the government, all reportedly worried about oversupply.
Read more: Thai Examiner (EV Crisis), Bangkok Post (Manufacturing Requirements)
Smart Cities Development Gathers Momentum
Engineers and developers of smart cities worldwide will gather in Pattaya for the 10th IEEE International Smart Cities Conference. The event is in line with Thailand's plan to develop smart cities around the country, including the Samyan Smart City project in Bangkok. Experts will swap views and share ideas on revolutionizing urban development for sustainable living, particularly putting Thailand's commitment to modernizing its urban landscapes at the forefront.
Read more: Bangkok Post
P2P Lending Gains Traction in Fintech Landscape
Peer-to-peer (P2P) lending is emerging as an additional option in Thailand's fintech landscape. The Bank of Thailand has established a regulatory framework for P2P lending platforms, including a unique requirement to participate in a regulatory sandbox before applying for a license. The introduction of P2P lending is expected to provide new investment opportunities for lenders and additional funding sources for borrowers, but the shift does not come without presenting some regulatory challenges.
Read more: Tilleke & Gibbins
Thailand Wins UN Human Rights Council Seat
Thailand has won a seat on the UN Human Rights Council for the 2025-2027 term with the highest number of votes. Foreign Minister Maris Sangiampongsa pledged to improve the country's human rights record and provide humanitarian aid to allies and neighboring countries. The government promises to adopt international democratic and human rights principles, citing recent laws ensuring equal marital rights for the LGBTQ+ community. Critics remain concerned about ongoing human rights issues.
Read more: Nation Thailand (UN Seat), Radio Free Asia (Human Rights Concerns)
Infrastructure Investment Writ Large
The Ministry of Transport is launching a 2.68 trillion baht (US$80.5 billion) investment program to revitalize transportation infrastructure. The project focuses on expanding rail networks, upgrading airports, and promoting green logistics. The initiative is expected to reduce road congestion and lower greenhouse gas emissions by 45.6 million tonnes by 2030 in support of climate objectives under the Paris Agreement.
Read more: VnExpress
Thailand-Laos Cooperation in Rude Health
Thailand and Laos have signed six cooperation agreements during Prime Minister Paetongtarn Shinawatra's official visit to Laos. The agreements cover various aspects of relations and are expected to boost bilateral trade value to US$11 billion by next year. Both countries agreed to strengthen economic and trade cooperation, particularly on cross-border trade.
Read more: Asian News Network (Cooperation Agreements), Bangkok Post (Trade Target)
Crypto Hub Status in the Crosshairs
Thailand is trying to position itself to become a digital asset hub through supportive policies and clearer regulations. The Thai Digital Asset Association believes the country has the potential to lead in this sector if proper support is put in place. Increased institutional investment is driving the cryptocurrency market to new highs this year, and there is a sense that developing the digital asset industry more broadly will support the government with its broader economic diversification efforts.
Read more: Bangkok Post
SET Bullish on Q4 Market Outlook
The Stock Exchange of Thailand (SET) is optimistic about the fourth quarter, citing gradual investment in the state-run Vayupak Fund and various tax-saving Thai ESG funds. These investments are expected to drive market growth towards the year-end. The SET's positive outlook comes against a backdrop of broader economic challenges, including a crisis of confidence (see next summary), but these headwinds are priced in to the market, potentially offering opportunities for forward-looking investors in the Thai bourse.
Read more: Bangkok Post
Tourism, Consumer Confidence Craters
The tourism confidence index in the third quarter plunged year-on-year and remained below the benchmark. Sluggish spending from factory closures, unemployment, rising non-performing loans, and severe flooding in Thailand and abroad have hampered recovery. The Tourism Council of Thailand is discussing increasing subsidies for the next phase of the proposed co-payment travel scheme, focusing on second-tier provinces. Consumer confidence also dropped for a seventh consecutive month in September to a 14-month low.
Read more: Bangkok Post (Tourism Confidence), Bangkok Post (Consumer Confidence)
Thailand Restarts Offshore Oil Talks with Cambodia
Thailand is set to reinitiate discussions with Cambodia over a lucrative offshore oil and gas field worth potentially $300 billion. The field has been at the center of a territorial dispute since the 1970s, but Thailand's new administration has prioritized joint exploration as a top urgent goal to shore up depleting gas reserves and manage rising electricity costs and fuel import bills. The move could have reverberating implications for regional energy cooperation, and economic development and regional relations.
Read more: Offshore Technology
That’s it for this week, thanks for reading!
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