MACROECONOMICS WEEKLY UPDATE

Headline CPI up 3.79% y/y in Feb, less than analysts’ forecasts of 4.18% rise because of lower energy and food prices. The core CPI index was up 1.93% in February from a year ago, vs a forecast of 2.10%.

 Finance Minister Arkhom Termpittayapaisith revealed that the Cabinet meeting has approved the extension of the zero-rate excise tax collection on diesel (B0) and fuel oil used in electricity generation for another six months. From March 16 to September 15,

  FETCO reveals investor confidence index for the next 3 months (Feb-April) is down 24.3% with survey results in February 2023 revealing that all investor groups decreased this is because most of the investors are worried about the pace of interest rate increases by the FED, the lingering Russia-Ukraine war and the Chinese balloon crisis. However, local investors are following the trend of tourism.

The Thai cabinet has approved 3.19 billion baht to subsidize electricity bills of households that consume no more than 300 units or less of electricity per month from January to April

 The Budget is divided into 2.67 billion baht for the Provincial Electricity Authority (PEA) and the remainder for the Metropolitan Electricity Administration (MEA).

The index of economic and business confidence of SMEs entrepreneurs in the first quarter of 2023 was at 65.09, slightly slowing down compared to the previous quarter, which was at 65.66 due to receiving the impact of concerns of SME entrepreneurs in terms of costs. especially energy costs both electricity and fuel

There will be no increase in electricity rates from May to August this year for both the household and industrial sectors said on Thursday, currently at 4.72 baht per unit for the household sector and at 5.33 baht per unit for the industrial sector. 

” The electricity bill should not rise further as natural gas production cost is likely to drop” – Energy Minister Supattanapong Punmeechaow

INDUSTRY

CONSUMER AND RETAIL

Consumer Confidence Index (JTS)

The Consumer Confidence Index in Thailand has risen in February to reach a three-year high of 52.6 from 51.7 in January which has been supported by a recovery in the tourism sector, government stimulus measures and a weaker baht.

CP ALLPublic Company Limited (CP ALL)

KCPALL invests 1.2-1.3 billion baht this year to expand new branches. renovate the existing branches and invest in new projects aiming to open a total of 700 7-Eleven stores. It is expected to grow no lower than GDP growth of 3-4% after the number of foreign tourists increases , also preparing to grow 30-40 branches in Cambodia.

Central Pattana Public Company Limited   (CPN)

Central Pattana unveils a 5-year investment plan between 2023-2027 worth 135,000 million baht. With a total of more than 200 projects covering 30 cities in Thailand and the ASEAN region, consisting of 50 shopping centers, 17 community malls, 90 residential properties, 37 hotels, 13 office buildings, 4 new Flex Offices.

ENERGY

Grimm Power Plc (BGRIM)

The Energy Policy Administrative Committee recently resolved to fix the price of liquefied petroleum gas (LPG) at a wholesale price of 20.9179 Baht per kg, in order to keep the retail price of LPG at around 423 Baht per 15-kg cylinder, with an effect taking place from April 1, 2023, to June 30, 2023.

Ptt Exploration and production Plc (PTTEP)

PTT Exploration and production Plc was awarded exploration and production licences at two of three new petroleum blocks in the Gulf of Thailand. The company was awarded the rights for blocks G1.65 and G3/65 with US-based Chevron Offshore awarded a licence for block G2/65, according to the Department of Mineral Fuels.

Thai Oil  Plc (TOP)

Thai Oil Plc which is the country’s largest oil refinery by capacity, plans to allocate capital spending worth US$1 billion to expand its businesses between 2023 and 2025 with over half the budget going to the Clean Fuel Project (CFP), the company wants to increase its oil refinery capacity to 400,000 barrels a day an increase from the current 280,000, and upgrade fuel oil to higher value products such as diesel and jet fuel.

TECHNOLOGY 

XSpring Digital Co Ltd (XSPRING)

Xspring Digital Co., Ltd. (XD) pointed out that in 2023, the digital token market is bustling with positive factors. Cabinet exempts corporate income tax – VAT on sale of digital tokens Pinned as a leader in the ICO Portal business, aiming to attract more than double the amount of customers entering the portfolio this year.

TOURISM

Tourist numbers and Hotel Subsidy programme

The Bank of Thailand (BOT) revealed the confidence index for accommodation operators in February 2023, found that the average occupancy rate was 66%, an increase from the previous month. However, labor shortages still persist with original workers changing occupations

Tourist numbers and Hotel Subsidy programme

A report from the provincial Public-Private Economic Development Committee and the Provincial Tourism Authority of Thailand (TAT) Office on Monday discussed plans to bring 2.38 trillion baht in tourism revenue this year. According to data from the provincial TAT office, Chiang Mai received at least 60 million baht from visitors last year. The TAT expects 6 million tourists from Europe this year, which is about 80% of pre-pandemic total.Currently, the TAT expects 25 to 30 million foreign tourists this year according to Sports Minister Phiphat Ratchakitprakarn with 4.2 million foreign visitors in January and February so far this year.

 

FINANCIAL

Bank Deposits 

Total bank deposits in Thailand increased 4.3% in 2022 year on year, though 98.52 million accounts or 88.88% have less than 50,000 baht, the central bank revealed on Tuesday with 121.40 million deposit accounts, with 110.84 million of them being saving accounts, the BOT said.

Bank of Thailand to regulate auto leasing

The cabinet had approved a law that allows the Bank of Thailand to regulate the business of leasing cars and motorcycles to protect the consumer and reduce household debt. This was because transactions in the auto leasing sector accounted for 12.4% of total household debt, which had been growing due to the new law’s requirement that consumers be treated more fairly.

Krungsri & Nomura Transfer

Nomura Holdings, Inc. announced that it has completed the transfer of the entire stake Nomura Asia Investment (Singapore) Pte. Ltd. holds in Capital Nomura Securities Public Company Limited (99.1% of outstanding shares). Such change has been registered with the Ministry of Commerce and Krungsri Capital Securities Public Company Limited changed its English name from “Capital Nomura Securities Public Company Limited” to “Krungsri Capital Securities Public Company Limited”.

Krungsri Consumers

Krungsri consumer, the unsecured loan unit under Bank of Ayudhya, aims to increase its customer base by 20% by year-end, aided by new digital service offerings. The company plans to boost new customers for both credit card and personal loan services by 600,000 this year. Moreover, the company expects outstanding loans to total 155 billion baht in 2023. It also aims to keep credit card and personal loans’ non-performing loan ratios at around 1% and 2.5%, respectively, by end-2019.

Allianz and Aetna Merger

Mr. Lars Haibutski, Chief Executive Officer and President of Allianz Ayudhya Insurance Public Company Limited or AAGI, revealed that the company and Aetna Thailand (Aetna) have successfully completed the merger and have It has been approved by the Office of Insurance Commission (OIC). Since March 1, 2023, it is the first day that we have operated under the new company. It has a combined customer base of 1.1 million and employs 1,500 people.

INDUSTRIAL

Amata

Amata is confident that land sales in 2023 will reach 2.5 thousand rai, a 100% growth from the previous year, revealing that there is a backlog of 6.6 billion Thai baht, and 60% of transfers are expected this year if sales and transfers meet targets with this year’s investment budget set to 4,000-5,000 million baht.

 

INFRASTRUCTURE 

Bangkok- Chiang Mai rail project

Thailand and Japan are beginning the first phase of a high-speed rail line between Bangkok and Phitsanulok. The 688km line will have 12 stations. The project is divided into two phases: Bangkok to Phitsanulok (380km) and further to ChiangMai (288km). Japan proposed Shinkansen-style trains, which can reach speeds of 300 kilometers per hour. Other aspects include Thailand’s request that Japan conduct another study on the economic benefits for surrounding areas in which the high-speed railway will be constructed along with other transport and tourism facilities.