Thailand Microeconomic Weekly Update #28

THAILAND MACROECONOMICS WEEKLY UPDATE

 Wan Muhamad Noor Matha, leader of the Prachachart Party, was elected as the House Speaker by the House of Representatives. Thailand’s business sentiment improved in June with increased confidence in the manufacturing and non-manufacturing sectors, rising to 51.0 from 49.7 in May. The Hotel Business Operator Sentiment Index for June showed a decrease in average occupancy rate to 46% compared to the previous month due to low season. Thailand’s consumer price index (CPI) rose by 0.23% in June, down from the 0.53% increase in May, while the core CPI increased by 1.32% year over year in June. The JSCCIB maintained its forecast of 3.0% to 3.5% economic growth for Thailand in 2023. The International Finance Corp (IFC) provided a US$105-million loan to Thai Credit Retail Bank Plc (Thai Credit) to support female entrepreneurs. The Retail sentiment index for the second quarter was below 50 for the first time in 15 months. The FETCO Investor Confidence Index (FETCO ICI) for June improved to 81.62, entering the “neutral” zone.

     

INDUSTRY

INDUSTRIAL

Chang’an Automobile Co., Ltd. has announced their investment plan to establish an EV car factory in Thailand, with an initial investment of approximately 9,000 million baht. They recognize the promising opportunities in the Thai market and aim to launch EV cars by the end of this year. Progress on establishing the factory is nearly complete, pending final approval from the Chinese government. The company also has future plans for research and development in Thailand, acknowledging the country’s potential beyond being a production base.

Panasonic Solution (Thailand) Co.,Ltd.

Panasonic is adjusting its global strategy to increase investment in Thailand by relocating the production base of automatic equipment from China and Japan. Mr. Narit Terdsathirasak, Secretary-General of the Board of Investment (BOI), revealed this development following the news of Panasonic Ecology Systems in Samut Prakan Province. Recently, Panasonic Industrial Devices Corporation, a manufacturer of Electronic Measuring Instrument parts and automation equipment such as Programmable Logic Controllers (PLC), known for its advanced technology and reliance on skilled workers, has shifted its production base to Thailand. This move has resulted in the utilization of local raw materials and the employment of a significant number of Thai workers.

FOOD AND BEVERAGES

Thaifoods Group Public Company Limited (TFG)

Ms. Phatraphan Rungcharoen, the Assistant Vice President of New Product Development Business Group at Thaifoods Group Public Company Limited (TFG), recently participated in the grand opening event of “bokStudio by tinybok.” This establishment marks the first dog shop and pet shop located at Sukhumvit 71 and is operated by My Pet Co., Ltd., a subsidiary of TFG. My Pet Co., Ltd. is extensively involved in various aspects of the dog industry in Thailand, including farming, importing dogs from abroad, operating a dog community, managing a grooming salon, and selling dog-related products like food, snacks, and shampoo. The primary objective of this endeavor is to expand the bokStudio franchise and establish a dog farm to better cater to a broader customer base in the near future.

TRANSPORTATION AND LOGISTICS 

Thai Airways International Public Company Limited (THAI)

Thai Airways International Public Company Limited, the national flag carrier of Thailand operating both domestic and international flights, has initiated the merger process of Thai Smile, a subsidiary under its ownership. Thai Airways, being a state enterprise primarily engaged in the aviation business and related support services, has commenced the implementation of the merger plan for Thai Smile Airways. Following the approval from the Board of Creditors of Thai Airways International Public Company Limited and in accordance with the guidelines proposed by the business rehabilitation plan administrators and management, Thai Airways will integrate the aviation business group by merging Thai Smile Airways Co., Ltd., of which Thai Airways currently holds a 99.99% stake. Consequently, the management of the existing aircraft under Thai Smile will be transferred to Thai Airways. The objective is to finalize the integration of Thai Smile Airways by the end of this year, enabling all 20 leased aircraft to operate under Thai Airways and cover the entire range of routes previously served by THAI Smile.

 

ENERGIES AND UTILITIES 

PTT Public Company Limited (PTT)

Dr. Kongkrapan Intarajang, the CEO of PTT Global Chemical Public Company Limited (GC), recently announced the signing of a shareholders agreement with Dynachem (Hong Kong) Limited (Dynachem). Dynachem is a distributor and manufacturer of compound engineering plastic resins. Under this agreement, GC will acquire a 41.5% stake in Dynachisso Thai Co., Ltd. (DYCT). This strategic move is in line with GC’s ‘Step Change’ strategy, which aims to enhance the company’s competitiveness in the Southeast Asian region. The focus is on delivering value-added products that cater to the diverse needs of customers. Furthermore, this collaboration aligns with GC’s commitment to sustainable growth through valuable partnerships with strategic allies.

TECHNOLOGY

Asphere Innovations Public Company Limited 

Asphere Innovations Public Company Limited, a prominent provider of online entertainment services operating as an online game and mobile game operator in various Southeast Asian countries including Thailand, Singapore, Malaysia, Vietnam, Indonesia, and the Philippines, has recently made a noteworthy investment of 600 million baht. This substantial investment is aimed at acquiring a 9.22% stake in “Bitkub Online,” a renowned digital asset exchange in Thailand. By strategically investing in Bitkub Online, Asphere Innovations anticipates numerous benefits, including income diversification, ecosystem fortification, and revenue growth.

INFORMATION  TECHNOLOGY

Humanica Public Company Limited (HUMAN)

Humanica Public Company Limited, a software development company that specializes in providing human resource management services, payroll outsourcing, accounting, and finance outsourcing, has recently established a new subsidiary in Thailand and an associated company in the Philippines. The subsidiary, known as Humanica Consulting Services Co., Ltd. in Thailand, has been established to offer business consulting and technology consulting services to organizations. In parallel, the associated company, Sunfish DataOn Philippines Inc., operates in the distribution and sales of human resource information system applications, as well as engaging in project execution and other related businesses within the Philippines. This associated company aims to expand Humanica’s presence in the human resource management market within the Philippines.

SECTORAL UPDATE

The SET closed the week today at 1,490.51 points, an increase of 0.05 points (+0.00%), trading value of 35,227.98 million baht.
 
                                                                                          
The Set index will move sideways with support and resistance 1460 to 1500.The USD/THB has range of support and resistance at 35.00 and 35.50  due to concern from FED I/R hike
 
 
Local Investors have been net buyers as opposed to foreign investors in the beginning of the month.

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