Thailand Microeconomic Weekly Update #6

  • December 16, 2022
  • Posted by: Julia Garcia
  • Categories: Thailand Weekly Economic Update, Weekly Updates
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MACROECONOMICS WEEKLY UPDATE

NOVEMBER  INDUSTRY SETTLEMENT 

The Federation of Thai Industries (FTI) said its industries sentiment index rose slightly to 93.5 in November from 93.1 in the previous month, at its highest in over 3 years on tourism rebound, despite this there is a labor shortage with high demand for workers in the service sector.

The THB had a volatile week with an expected range of 34.80 to 35.40.

Following key monetary policy meetings the baht had weakened during the week and to remain volatile with the increase of interest rates across the board globally.

WORLD BANK EVENT 

According to the finance minister Arkhom Termpittayapaisith the Thai economy should grow 3.8% next year; however, the World Bank expects the country to grow 3.6% in 2023 due to a faster than expected decline in global demand with the exports expected to contract to 2.1% in 2023.

ASIAN DEVELOPMENT BANK (ADB)

 According to the finance minister Arkhom Termpittayapaisith the Thai economy should grow 3.8% next year; however, the World Bank expects the country to grow 3.6% in 2023 due to a faster than expected decline in global demand with the exports expected to contract to 2.1% in 2023.

LOGISTICS 

The cabinet approved the new national logistics development plan (2023-27), aiming to reduce logistics costs to 5% of the county’s GDP from 13.8% in 2021 with the plan focusing on the development of transport infrastructure and facilities.

POLITICS 

Thailand is expected to hold a general election next year, with political parties kicking off their campaigns offering promises that will affect the fiscal stability and competitiveness in the long term, as Thailand still faces several economic challenges. However, the Thai economy is still on the road to recovery with some concern over the Pheu Thai Party’s pledge to raise the daily minimum wage to 600 thb and to introduce a minimum monthly salary by 25,000 for those holding a bachelor’s degree because it could affect the business sector’s competitiveness.

INDUSTRY   

INFRUSTRUCTURE 

The State Railway of Thailand (SRT) plans to invest another 300 billion baht for the second phase of the Thai-Chinese high-speed railway project

An SRT source said the blueprint of the 356-kilometre section of the second phase of the project, stretching from Nakhon Ratchasima to the border province of Nong Khai, has already been finished.
The proposal for the 300-billion-baht budget is expected to be submitted to the SRT board for consideration during January-February next year before it is handed to the cabinet for approval later.

ENERGY 

Gulf Energy Development Public Company Limited  (GULF)

Gulf Energy Development Public Company Limited (SET: GULF) announced on December 9, 2022, that the company acquired 28.57% of newly issued common shares in Thai Tank Terminal Company Limited, with a total investment amount of THB 2,059.2 million. 

The has a Public Private Partnership (PPP) Contract with the Industrial Estate Authority of Thailand for the Public Terminal management project for the Handling of Liquid products in Map Ta Phut Industrial Estate in Rayong province for a period of 30 years.

PTT Public Company Limited  (PTT )

PTT invested 500 million THB to increase capital in 2 AI & Robotics subsidiaries by allowing Siam Management Holding Company Limited (SMH) to buy all the shares. Of React Co., Ltd (ReAcc) from Alpha Com Co., Ltd. This is because ReAcc and Alpha Com are 100% indirect subsidiaries in which PTT holds shares and has restructured its shareholding. This will support new business investments according to PTT’s strategic directions.

JR 

JR has won a big project worth 3,906 million baht from Sino-Thai Engineering and Construction Public Company Limited (STEC)

The project is to change the aerial cable system to an underground cable project along the Pink Line at Ramkhamhaeng Road with Sino-Thai Engineering and Construction Public Company Limited

TELECOMMUNICATION 

A petition from the Thai Consumer Council TCC seeking an injunction on the planned merger of TRUE & DTAC, has been thrown out by The Central Administrative Court.

TRANSPORTATION 

BEM has reported the November avg MRT ridership increased +89% YoY to 345k trips/d, in which the positive traffic volume carries thru new year from events, more on site classes in school and foreign tourists.

This also means that there is an increase of workers that go back to working in the office.

BTS Sky train BTSGIF: reported 15.1 million trips which is a 91.4% increase YoY change.

        

AUTOMOTIVES  

The Motor Expo in Nonthaburi province on Dec 1-12 took orders for more than 42,700 vehicles, generated 51-billion-baht in transactions and attracted 1.33 million visitors, according to the organizer.

People placed orders for 36,679 cars and 6,089 motorcycles.

Toyota being the most popular with 6,064 units ordered, followed by 3,252 Honda cars, 2,648 Isuzu cars, 2,478 Nissan vehicles and 2,464 Suzuki

The most popular luxury cars were BMW, followed by Mercedes-Benz and Volvo.

The average price of cars ordered at the expo was 1.35 million baht and motorcycles 253,699 baht. About 51 billion baht was spent at the expo, which attracted 1.33 million visitors, Mr Kwanchai said.

FAST MOVING CONSUMER GOODS ( FMCG)

The Board of Charoen Pokphand Foods Public Company Limited (“CPF”) would like to inform that the Board of Directors’ Meeting convened on December 14th, 2022 approved the Share Repurchase Program (Treasury Stock) in the amount not exceeding Baht 5,000 million due to the stock price being under book value. The repurchase will be through 19th of December 2022 to 18th of June 2023

Thailand SET Index

The SET index trade in 1600 – 1640 with PE of 17.62

The returns of YTD as of 15/12/2022 is -2.25%


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