THAILAND MACROECONOMICS WEEKLY UPDATE

Thailand’s exports continued their decline for the seventh consecutive month in April, contracting by 7.6% YoY to reach a value of US$21.723 billion (737.788 baht). The main factor behind this contraction was the global economic slowdown.On a positive note, the Thaifex-Anuga Asia 2023 trade show exceeded expectations, generating deals worth a staggering 120 billion baht, surpassing the initial target of 70 billion baht. 

In response to economic and inflation outlooks, the Monetary Policy Committee decided to raise the policy rate by 0.25%, bringing it from 1.75% to 2.00% per year. The manufacturing production index also experienced a larger-than-expected contraction of 8.14% YoY in April, attributed to slower exports and increased production costs.Additionally, Thailand’s carbonated soft drinks industry is predicted to grow by over 7% this year, reaching 59.9 billion baht, thanks to increased consumer spending and hot weather conditions, according to Coca-Cola .

FOOD AND BEVERAGES 

Khon Kaen Sugar Industry Public Company Limited (KSL)

Khon Kaen Sugar Industry Public Company Limited, a prominent sugar producer and distributor, has announced that the current period presents a favorable opportunity for the sugar industry. The price of raw sugar has reached its highest level in the past 10 years, with prices ranging from 25 to 26 cents per pound. The company foresees a continued upward trend in raw sugar prices until 2024, driven by factors such as limited supply and reduced exports from India.

FOOD AND BEVERAGES 

Moshi Moshi Retail Corporation Public Company Limited (MOSHI)

Moshi Moshi Retail Corporation Public Company Limited has unveiled its strategy to capitalize on the growing trend of “Pet Humanization” by expanding its product line. Mr. Sanga Boonsongkor, the Chief Executive Officer of MOSHI, highlighted the sustained popularity and continuous growth of this trend. In response, the company has decided to broaden its product portfolio for pet accessories, with a particular focus on dogs and cats, offering affordable options for pet owners.

BANKING

SCB X Public Company Limited (SCB).

SCB 10X, a subsidiary of SCB X Group, has partnered with Vidyasirimedhi Institute of Science (VISTEC) to collaborate on the research and development of WangChanGLM. This language model is designed specifically for the Thai language and possesses the capability to support other languages. WangChanGLM operates as a commercial license and falls under the domains of Generative AI and Large Language Model. The AI features of this model include summarization, idea generation, and the ability to write Thai articles. The ultimate goal of this collaboration is to enhance accessibility and effective utilization of AI technology for the Thai population.

FINANCE AND SECURITIES 

Bangkok Commercial Asset Management Public Company Limited (BAM)

Bangkok Commercial Asset Management Public Company Limited, a company specializing in the management of non-performing loans (NPLs) and non-performing assets (NPAs), has partnered with Bangkok Bank Public Company Limited to launch the “Bualuang Home Loan Project for BAM Property Buyers.” This initiative aims to cater to individuals seeking affordable second-hand houses. The project offers an attractive interest rate of only 1.95% for the first year, with a minimum monthly installment of THB 3,000 per million baht. Additionally, the project provides a collateral evaluation service free of charge.

PROPERTY DEVELOPMENT

Origin Property Public Company Limited (ORI)

Origin Property Public Company Limited has announced its strategic expansion into the pet lover market with the upcoming launch of a new condominium project for pet lovers  in the first half of 2023. This project will encompass three distinct brands: Origin Place, The Origin, and Origin Play, with a combined value of THB 9,360. Notably, the project’s strategic location will span across multiple transportation lines, including the green line, blue line, orange line, and yellow line, ensuring extensive coverage throughout Bangkok and its surrounding areas.

ENERGY AND UTILITIES

Gulf Energy Development Public Company Limited (GULF)

Gulf Energy Development Public Company Limited has been granted licenses by the Ministry of Finance through the Securities and Exchange Commission (SEC) to operate a digital asset exchange and digital asset broker business in Thailand. The platform will provide a trading engine, digital token wallets, and cryptocurrency wallets, expected to be launched in the fourth quarter of this year.

B.Grimm Power Public Company Limited (BGRIM)

B.Grimm Power Korea Limited, a wholly-owned subsidiary of B.Grimm Power, has successfully acquired shares in Saemangeum Sebit Power Co., Ltd., based in the Republic of Korea. This strategic move aims to expand investments in solar PV projects, specifically targeting an installed capacity of 98.99 MW. Saemangeum Sebit Power Co., Ltd. has secured a 20-year power purchase agreement with Korea Electric Power Corporation (“KEPCO”) through the Korean Power Exchange. The agreed electricity rate stands at 144.31 South Korean won (equivalent to approximately 3.8 baht) per kilowatt-hour (kWh). It is worth noting that the solar power plant project has been operating commercially since March 2022.

TECHNOLOGY

Ditto (Thailand) Public Company Limited (DITTO)

Ditto (Thailand) Public Company Limited has been appointed to Token X, an ICO portal, issued digital tokens related to mangrove carbon credit.  Planned to launch the ICO in early 2024, after granting the right to allocate mangrove forests for carbon credit benefit with a total area of 48 thousand rai.

TOURISIM 

The Economics, Tourism, and Sports Division has released its weekly tourism statistics for the period of 15th May to 21st May. During this time, an estimated 10 million foreign tourists visited Thailand, contributing to a total income of over THB 400 billion. On average, this translates to approximately 62,082 visitors per day. The top five countries of origin for these tourists, accounting for 48 percent of the total foreign tourism, are as follows: Malaysia (65,935 people), China (64,650 people), India (34,473 people), South Korea (22,426 people), and Vietnam (21,199 people). These numbers have been bolstered by the occurrence of a continuous holiday and the commencement of the seasonal holiday period in ASEAN and East Asia. The positive trend is expected to continue in the upcoming week, further driving growth in the Thai tourism industry.

TRANSPORTATION AND LOGISTIC

The Civil Aviation Authority of Thailand (CAAT) has granted permission to a Chinese airline to resume 100% of its flight slots on the China-Thailand route. The airline has submitted its intention to resume flying on all routes as allocated in the Summer Schedule, which has been effective since April 2023 and will continue until September 2023. This development is expected to significantly increase the number of direct China-Thailand flights by over 100% throughout the remaining four months of the summer flight schedule, with further acceleration anticipated as the winter schedule begins.

CONSTRUCTION MATERIALS 

Siam Cement Public Company Limited (SCC)

Siam Cement Public Company Limited, a leading holding company in the industrial supplies and construction sectors, has unveiled its intentions to venture into the Saudi market by establishing a trading company in Riyadh. This strategic move aligns with the company’s vision of integrated supply chain solutions, exemplified by the Line megaproject valued at 500 billion baht. Siam Cement aims to enhance its capabilities by forging strong partnerships with business alliances from over 50 countries worldwide. The company’s focus lies in supplying four key product categories: cement, building materials, paper and packaging, and industrial raw materials.

SECTORAL UPDATE