Tourism

Thailand’s tourism industry is demonstrating encouraging signs of revival, with the nation welcoming over 5.2 million international visitors from January 1 to February 18, 2024, as announced by Sudawan Wangsupakitkosol, the Minister of Tourism and Sports. Tourists have spent a total of 254.69 billion Baht during this period. China remains the predominant source of these tourists, accounting for nearly one million (987,941) of the arrivals in the timeframe. Despite a minor setback in the last week, which saw arrivals drop to 831,989—a 4.61% fall from the week before—there are optimistic indicators from various regions. Specifically, Malaysia recorded a 10.22% rise in its tourists to Thailand, numbering 138,536, and Russia saw a slight increase of 1.65%, bringing their total to 49,634 visitors. Minister Sudawan anticipates a normalization in tourist arrivals by next week, reflecting confidence in the sector’s ongoing recovery.

The Civil Aviation Authority of Thailand (CAAT)

The Civil Aviation Authority of Thailand (CAAT) is actively engaging with the country’s six major airlines to expand flight services during peak holiday periods and to lower the ceiling on flight prices. This initiative is aimed at making air travel more accessible and affordable, addressing concerns over high fares, especially during peak seasons. The CAAT’s efforts include both short-term measures to increase flight availability and long-term strategies to adjust pricing ceilings, reflecting changes in passenger travel habits and the aim to ease the financial burden on travelers.

Local Car Output

In January, Thailand’s car production saw a 12.46% decrease compared to the previous year, dropping to 142,102 units. This decline was attributed mainly to a 16.4% fall in domestic car sales, exacerbated by stricter auto loan conditions. While car exports experienced a marginal decrease of 0.1%, the Federation of Thai Industries (FTI) remains optimistic, forecasting a slight increase in car production to 1.9 million units for the current year, up from 1.84 million units the previous year. This outlook is set against the backdrop of Thailand’s role as Southeast Asia’s largest auto production hub and a key export base for global carmakers.

Sugar cane price

The Thai government approved the final price for sugar cane for the 2022/2023 season at 1,197 baht per ton, reflecting an increase from the initial set price, and established the initial price for the 2023/2024 season at 1,420 baht per ton. These adjustments are made according to the commercial cane sugar (CCS) sweetness level, with specific rates for increase or decrease per CCS unit. Moreover, Thailand has repealed its domestic sugar pricing mechanism by revising Section 17 of the Sugar and Cane Act of 1984. This change also involves modifying the financial support framework that previously allowed the state to subsidize sugar mills when the actual sugar cane price was lower than the initial projected price. Consequently, this subsidy support from the government has been eliminated.

Overseas bonds

Thailand’s plan to issue overseas bonds worth up to USD 1 billion, marking the country’s first such initiative in over two decades, is led by Patchara Anuntasilpa of the Public Debt Management Office. This effort aims to establish a reference yield for Thai companies seeking funding in foreign markets. The ministry is currently reviewing the bond plan, with results expected in March. Despite the higher costs associated with foreign borrowing, the strategy includes selling savings bonds and is part of a comprehensive fiscal plan to manage the budget deficit and finance sustainable projects. Additionally, the ministry plans further borrowing of more than 200 billion baht (USD 5.58 billion) for the fiscal year ending September 30, 2024, in addition to the 754 billion baht (USD 21.05 billion) previously approved.

Banking

The Bangkok Post reports that Thai borrowers are highly vulnerable globally, with those under the Bank of Thailand’s debt assistance measures constituting 11% of all borrowers—significantly higher than in countries like Indonesia, Malaysia, India, and China with a range of around 1-5%. This vulnerability reflects the severe impact of the pandemic and Thailand’s high household debt-to-GDP ratio, which has been slow to recover compared to regional counterparts. With consumer loan non-performing loans (NPLs) rising and recent interest rate hikes affecting borrowers’ repayment capacity, the Bank of Thailand and other institutions are taking steps to address these challenges.

Healthcare

The Thai cabinet has given the green light a significant investment of 37 billion baht (USD 1.03 billion) to significantly expand the country’s healthcare workforce. Over the next decade, this initiative aims to train 62,000 professionals in family medicine, including doctors, nurses, and other healthcare workers, to enhance primary care services. This project, proposed by the Public Health Ministry, addresses the need to improve the primary healthcare system from 2025 to 2034.

SECTORAL UPDATE 

SET closed the week  today at 1,398.14 points, down 4.33 points (-0.31%), trading value 48,385.71 million baht. ($US 1340.30 million)

Local individuals are Net Buyers with foreign investors as Net sellers.