Thread: Thai PM Srettha Thavisin receives royal endorsement

• Defence minister to testify to House committee on submarine deal

Thailand’s Defence Minister Sutin Klungsang said today (Monday) that he is ready to explain, to the House Military Affairs Committee, his decision to switch from procuring a submarine from China to a frigate, even though the surface vessel is more expensive.

While admitting that there are reservations about the change, citing the cost of sending Thai naval officers to China for submarine operational training and the cost of building a special wharf for the submarine, he insisted that the decision to opt for a frigate instead is based on careful consideration, including the legal aspect of pressing ahead with the procurement of a submarine fitted with a Chinese-made engine, instead of the specified German model..

He said that he did not make the decision alone, but had consulted the Royal Thai Navy’s commander-in-chief and other naval officers involved in the project.

The defence minister said he does not want to blame China for breach of contract over the submarine engine, after Germany refused to sell it to China, adding that this is not just a business deal, but Thailand has to take into consideration strategic cooperation and friendship between Thailand and China.

Sutin has previously said that the switch from a submarine to a frigate means that the submarine deal has not been scrapped, but must be reviewed.

Thailand had agreed to procure two S26T Yuan-class submarines, to be equipped with German-made engines, from China Shipbuilding and Offshore International Company.

• Thailand's New Year public holidays announced

The Thai cabinet announced four New Year public holidays today (Tuesday), from December 29th through January 1st, 2024, said Dr. Prommin Lertsuridej, secretary-general of the Office of the Prime Minister.

For the following New Year, he said that the cabinet approved a proposal to include Monday December 30th as an extra day off, increasing public holidays to five days, from December 28th through January 1st, 2025.

2023 New Year holidays to run from December 29 to January 1

• Srettha slams Israeli employers for tempting Thai workers to stay with more money

Prime Minister Srettha Thavisin said on Tuesday that he has lodged a complaint with the Israeli ambassador about employers in Israel offering Thai workers more money to tempt them into staying.

Speaking to reporters after the weekly Cabinet meeting, Srettha said he called Ambassador Orna Sagiv on Monday to air his dissatisfaction.

The premier has been calling on all Thai workers to leave Israel, but many have chosen to put their lives at risk for the sake of higher salaries.

“I have aired my dissatisfaction by saying they should not have used money to tempt Thai workers. It is not right for them to do so,” he said.

Srettha said the envoy had responded by saying she did not know about this and would find out more. She has also aired concerns about the safety of Thai workers.

The premier added that he has also informed the ambassador about many workers complaining that the payment of their October salary has been postponed to November 10. The ambassador responded by saying she had not heard about this and would find out more.

• Immigration process eased for Malaysians using Sadao checkpoint

The Thai cabinet decided today (Tuesday) to exempt Malaysian tourists from needing to submit the “tor mor 6” immigration form to enter Thailand through the Sadao border checkpoint, to speed up the immigration process.

The new measure is to start in November and last until April 30, to coincide with the tourism high season for Malaysians.

The normal immigration process at the checkpoint for Malaysians arriving by car takes about two hours, which causes bottlenecks at busy times.

According to the Tourism Authority of Thailand, about 3.1 million Malaysians visited Thailand during the first nine months of this year, generating about Bt52.7 billion in revenue, based on an estimate that each tourist spends about Bt16,588 per trip.

Arrivals from Malaysia through the Sadao checkpoint are about 100,000 per month.

Meanwhile, Tourism and Sports Minister Sudawan Wangsuphakijkosol disclosed that, this year up to October 22, about 21.5 million foreign tourists visited Thailand, generating about Bt904 billion in total revenue.

She noted that tourism recovery in several regions of Thailand in the first week of October was better than expected, which coincided with the arrival of the high tourism season and the vegetarian festival. Tourist arrivals from Europe increased by 19% over the previous week.

Arrivals from the Middle East, however, dropped due to the war between Israel and Hamas, she said.

The top five in terms of foreign arrivals during the first week of October were: 83,028 from Malaysia, up 11.85%; 59,288 from China, down 2.96%; 31,932 from China, up 5.84%; 29,298 from South Korea, up 7.46% and 23,801 from Russia, up 8.10%.

• PM seeks to mitigate potential economic impacts from Israel-Hamas conflict

Prime Minister Srettha Thavisin has instructed his economic agencies to closely monitor the Israel-Hamas conflict and assess the potential economic impacts on Thailand.

Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, said the NESDC is currently assessing the impact of this conflict on the Thai economy, noting that geopolitical situation had not been factored into the risk assessment prepared by NESDC for this year.

A preliminary assessment indicates that the current impact on the Thai economy is primarily seen in the increase in oil prices, although this is not as significant as during the conflict between Russia and Ukraine, which led to a surge in crude oil, natural gas, and fertiliser prices, affecting the global and Thai economies.

One aspect that must be closely monitored is whether the war will escalate and, if it does, to what extent and which countries might join each side. If the conflict expands significantly, it could have substantial impacts on global economies. However, if the conflict does not escalate to any great degree, the economic impact might remain limited, said Danucha.

Deputy Finance Minister Julapun Amornvivat stated that the Prime Minister has assigned the Finance Ministry to assess the economic impact of the conflict in Israel.

Although the Finance Ministry does not have direct jurisdiction over international economics, it has entrusted the Fiscal Policy Office (FPO) to study the impacts on Thailand, including the effects on oil prices. Currently, there are three main concerns: Whether the conflict will escalate further; whether the issue will transform into a regional problem; and the stability of global energy prices.

Any escalation will affect Thailand to some extent, as its economy is relatively vulnerable. While consumption might increase, the rapid growth of the US economy has led to higher interest rates, with the Monetary Policy Committee (MPC) raising the policy rate to 2.50% annually. This has caused the Thai baht to depreciate by 0.3%, indicating that the Thai economy might be slowing down. Therefore, the potential impact of an escalating conflict needs to be analysed closely.

Regarding the significant decline in the Thai stock index, the Finance Ministry has not intervened and is closely monitoring the situation. However, the interest rate differential between Thailand and the US is affecting Thailand, causing capital outflows from both the stock and bond markets. The unstable situation in Israel and Palestine further contributes to this.

As for managing energy prices in the country, extending the diesel tax measure and reducing gasoline tax have been proposed, but if these taxes are reduced, it will undoubtedly impact revenue collection. However, it is believed that if it is necessary, the government can manage it. Currently, the government has exceeded its tax collection targets, so it is unlikely to affect revenue collection at the end of the year.

For his part, Deputy Prime Minister and Energy Minister Peeraphan Salirathvipak stated that the Energy Ministry is closely monitoring the situation but noted that, in any case, the price of Thailand’s imports will follow the global market price.

The structure of oil prices in Thailand is not based on the conflict, but rather on the refinery prices, which are significantly higher than the global market prices. These include taxes, refining costs, and marketing costs. The refinery price is the starting reference point, taking into account the oil companies' cost and the refining cost. Import cost averages must therefore be studied and expenses and profits clearly allocated to the refinery and service stations.

Prasert Sinsukprasert, the Energy Ministry’s Permanent Secretary, added that the ministry is closely monitoring oil and fuel prices. The public does not need to worry about oil shortages because Thailand currently has 70 days' worth of crude oil reserves, divided into 45 days of reserves within the country (3.91billion litres) and another 25 days of crude oil reserves in transit (2.18 billion litres). Thailand currently imports 57% of its crude oil needs from the Middle East and 33% of LNG from various sources.

Industry news suggests that oil traders are closely watching the direction of oil prices under the Israel-Hamas conflict, speculating how much the conflict will escalate. The continuous severity of the situation could escalate into a regional conflict between the Middle East and Israel, as Hamas has many regional allies, including Iran, Syria, and Hezbollah, which do not agree with the policies of the United States towards the Middle East and the support for Israel.

It is believed that if the escalation continues, it will significantly affect the global population because the Middle East is a major producer and exporter of oil globally and controls the oil export routes. It could also impact energy security and lead to higher oil prices. While for now, the conflict is limited to Israel and Palestine, the possibility of escalation cannot be discounted, Prasert said.

I don’t see this going as well as they would like.

• Thailand plans to issue bonds overseas

Thailand's finance ministry plans to issue bonds overseas to create a benchmark for the private sector and to draw foreign investors' attention, a deputy finance minister said on Tuesday.

The ministry, however, has yet to decide when the bonds would be sold, by how much and in what currency, Julapun Amornvivat told reporters.

The government has to look at an appropriate cost and timeline, he said.

"There is no problems with domestic liquidity," Julapun said, adding that issuing bonds overseas was "to test and explore the market and draw more people's attention to Thailand".

The government has already announced sustainability bonds worth $2 billion that have attracted investor interest, he added.

Given higher yields, Julapun said the government's borrowing costs rose to about 3% but were still not too high, following higher interest rates in the United States and Thailand.

A rise in the 10-year bond yield has been driven by global factors, rather than a lack of confidence in the government's policies, he added.

The central bank's rate hikes lately were not mainly because of inflation but to narrow the gap between U.S. and Thai rates, which has caused capital outflows from the stock and bond markets, Julapun said.

https://www.nasdaq.com/articles/thai...-deputy-finmin

• ‘Rich people’ dumped from 10,000-baht digital wallet scheme after criticism

Wealthy people will not be eligible for the 10,000-baht digital wallet scheme, Prime Minister Srettha Thavisin announced on Wednesday.

The move follows criticism of the scheme – including by the central bank – to hand out 10,000-baht digital payments to every Thai citizen aged 16 and over.

The cost of the original scheme was calculated at over 560 billion baht.

Srettha, who doubles as the finance minister, explained that the government took heed of suggestions that rich people should not benefit from the scheme, which was a core policy of his Pheu Thai party’s election campaign.

Pheu Thai now leads the government coalition.

“We will adjust the scheme at this point. We will look for an appropriate and fair definition for ‘rich’ people,” Srettha said.

The PM said he listened to advice from Bank of Thailand Governor Sethaput Suthiwartnarueput, who insisted that the 10,000-baht handout should be limited to those in need and not be extended to wealthy individuals.

The policy had drawn criticism from the current and former central bank governors, as well as economists. They voiced concern that recipients would not spend the 10,000-baht handouts to stimulate the economy as intended.

Srettha also said the scheme might be postponed from its original start date of February 1 due to complications.

“I’m checking it,” Srettha replied when a reporter asked him to confirm or deny speculation that the scheme would be delayed.

Asked whether it would start within the first quarter of next year, Srettha replied: “We’ll try to get it implemented as soon as possible”.

The prime minister declined to elaborate on how the scheme would be funded, saying the matter would be discussed at the next meeting of the digital wallet scheme steering committee.

He said the date of that meeting depended on preparations by Deputy Finance Minister Julapun Amornvivat, who chairs the subcommittee tasked with arranging the scheme’s implementation.

Earlier, Julapun said his subcommittee was waiting for relevant government agencies to file reports that will be compiled for the full committee to consider and approve.

Srettha also dismissed proposals that the government deliver the 10,000-baht payments in instalments.

“We will pay it in one go because we want it to be spent to stimulate the economy,” he explained.

The PM also dismissed claims that the scheme could break the law, as alleged by Move Forward Party MP Sirikanya Tansakul.

“Not at all. I’m not worried,” Srettha replied when a reporter mentioned Sirikanya’s comment.

He also dismissed speculation that Pheu Thai’s coalition partners oppose the digital wallet scheme, insisting they were fully behind the policy.

Srettha added that he had told all Pheu Thai ministers to speed up implementation of so-called “quick win” policies pledged during the election.

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• Thailand's economy needs a major boost : PM

Thailand’s under-performing economy needs to be given a major boost, to increase its growth rate and pull the country out of the middle-income trap, while improving the livelihoods of people at all levels, according to Prime Minister Srettha Thavisin.

In his keynote speech, given at an event hosted by the Economic Reporters Association, the prime minister pointed out that Thailand’s annual growth rate for the past ten years averaged 1.8%, the lowest in this region, while household debt rose from 76% to 90% of GDP, placing Thailand among the world’s top ten countries for household debt.

He cited the case of about 30,000 Thais working in Israel, saying that most of them don’t want to be repatriated, despite the ongoing war between Israel and Hamas, because of the attractive pay and the fact that some Israeli employers have offered to double their wages.

He said that the government’s decision to provide a debt moratorium to farmers, cut power and fuel prices and reduce train fares in Bangkok and its suburbs to 20 baht are just short-term measures to ease the financial burden on the people.

For the middle and long-term, the prime minister said Thailand must negotiate free trade agreements with more countries to find new markets for Thai exports, after the suspension of negotiations for the past ten years.

He explained that his overseas visits in the two months since he assumed the office were not intended to just introduce himself to other leaders, but also to explore new markets for Thai products and to convince foreign investors to invest in Thailand. He added that he does not feel ashamed of taking several Thai businessmen with him on each of his foreign trips, so they could meet with foreign counterparts to explore new business opportunities.

Citing the land bridge mega project in southern Thailand, the prime minister said it will become a major logistics hub, which will cut the transit time for cargo vessels and oil tankers by 6-9 days, instead of going through the congested Straits of Malacca.

He added, however, that he does not want the huge infrastructure project to serve only as a logistics hub, but also as a production base where foreign investors can build factories to produce goods for export.

Endowed with natural resources and its strategic location, he said Thailand is ideal for foreign investment and it has the potential for further development, economically and socially, for the good of the people.

• Thailand sets out to lower PM2.5 pollution in 2024

As the year draws to a close, Thailand is once again struggling with air pollution caused by hazardous PM2.5 particulate matter. These tiny particles are difficult to trap or manage, making them a significant concern.

The Ministry of Natural Resources and Environment is acutely aware of the problem and has prepared and reinforced measures to prevent and address PM2.5 particulate matter problems in 2024, Chai Watcharong, a spokesperson for the Prime Minister's Office, explains.

These measures include defining specific targets, such as reducing areas prone to repeated burning by 50% in conservation and national reserve forests. It also involves collaborative efforts between the government and private sectors, enhancing forest fire situation command, setting up checkpoints, involving the public, and accelerating the implementation of Good Agricultural Practices (GAP PM2.5-free).

A national and provincial-level management mechanism is being developed, encouraging regional cooperation and utilising trade conditions to reduce cross-border haze issues. The private sector is being encouraged to invest in solving the problem through various benefits and incentives. The goals are as follows:

1. Reduce burned areas in conservation and reserve forests by 50%.

2. Decrease agricultural burning areas by 50%.

3. Reduce average PM2.5 particulate matter by 40%.

4. Decrease the number of days when PM2.5 particulate matter exceeds standards by 30%.

Chai stressed that the government is prioritising the health and safety of its citizens. All agencies have been instructed to monitor the situation closely and plan continuous operations, especially during changing weather conditions. Citizens, particularly vulnerable groups such as children, pregnant women, the elderly, and individuals with pre-existing conditions, are urged to take special precautions. People are advised to follow the situation closely and adhere to the recommended courses of action.

During the transition from the rainy season to winter, increasing air pressure tends to trap particulate matter, leading to accumulation. The PM2.5 particulate matter situation, indicated by the Pollution Control Department of the Ministry of Natural Resources and Environment, shows an orange level, which impacts health. This situation is expected to persist for another 1-2 days. Citizens are urged to stay updated.

Since June 1 of this year, the Pollution Control Department has revised the 24-hour average PM2.5 particulate matter standard to 37.5 micrograms per cubic metre (previously 50 micrograms per cubic metre). This enhances the efficiency of the PM2.5 particulate matter alert system.

Citizens can access information about air quality, forecasts, and news through the Air4Thai website and application and are encouraged to follow recommendations from the Department of Disease Control.

A glimmer of hope suggesting that Thailand's air quality might marginally improve is on the horizon, though, with some saying that the PM2.5 issue might not be a seasonal problem anymore due to the increasing popularity of electric vehicles. Although the percentage is still small, the sales of electric cars have risen significantly compared to previous years. However, the overall contribution remains minimal. If the problem is not earnestly addressed and if the goals the government has laid out are not met, this issue will persist in Thai society much to the detriment of the population’s health.

Digital handout scheme could start April/May, may exclude the rich

The government scheme to hand out 10,000 baht in digital money to Thais is expected to start in April or May next year, in line with the period in which the Fiscal 2024 Act will come into effect, Deputy Finance Minister Julapun Amornvivat said on Wednesday.

Julapun, who heads a subcommittee in charge of working out details of the scheme, said after meeting with subcommittee members on Wednesday that several details have been discussed and will be presented to the ministry meeting next week, to be chaired by Prime Minister and Finance Minister Srettha Thavisin.

The scheme, aimed at stimulating the economy, calls for 10,000 baht in digital money to be distributed to all Thais aged 16 and above for them to spend at shops within a 4-kilometre radius of their registered address within a six-month period.

Julapun, however, said that the stipulation on the 4km radius will be replaced by spending within the district of the recipient’s address instead.

He also added that the meeting agreed to narrow down the scope of recipients to only those who need it, which means excluding high-income earners. This is in a bid to save the funding needed for the scheme originally estimated at 560 billion baht if all Thais over 16 were to receive the money.

Three approaches have been proposed under this effort:

- Limiting the handout to 15-16 million state welfare card holders, which would cost 160 billion baht.

- Excluding those who earn more than 25,000 baht per month or have over 100,000 baht in their bank account. This would bring down the eligible recipients to 43 million people and will use 430 billion baht.

- Excluding those who earn more than 50,000 baht per month or have over 500,000 baht in their bank account. This would bring the eligible recipients down to 49 million people and will use 490 billion baht.

The meeting also agreed that the verification method of recipients will follow the regulations laid down by the Bank of Thailand. This means those who have already confirmed their identity via government application to receive benefits under any state campaign need not verify their identity again.

Businesses to participate in the campaign can be either an individual, a juristic person, a village fund, or a community enterprise, Julapun added.

• Srettha promises to deliberate Marriage Equality Bill on Tuesday

Prime Minister Srettha Thavisin on Thursday promised full support for the LGBTQ-focused Marriage Equality Bill, which will be sent for Cabinet approval on Tuesday, a government spokesman said.

Key points:

- Marriage Equality Bill to be tabled at Cabinet on Tuesday

- Govt supports Bangkok’s bid to hold World Pride 2028

- PM reluctant to support decriminalisation of prostitution

Srettha has been criticised by LGBTQ and other rights groups for missing the September 1 deadline to place the bill on the agenda of the current parliamentary session.

On Thursday, Srettha chaired a meeting of government agencies and other organisations on transgender marriage rights, sex-worker rights and Thailand’s bid to organise World Pride 2028.

“The prime minister assured the meeting that the government is ready to support the equal marriage rights bill for transgenders and will also support amendments of other related laws concerned,” spokesman Chai Watcharong said.

Srettha will have the marriage equality bill tabled at Cabinet on Tuesday so that it can go for its first reading in the House when the next parliamentary session begins in early December, he added.

The opposition Move Forward Party sponsored the bill during the previous government of Prayut Chan-o-cha.

However, the government countered that move by putting forward its own Civil Partnership Act, which allowed transgender couples to register their partnerships but not legalise them in marriage. The new bill caused outrage among the LGBTQ and accusations of hypocrisy targeted at Thailand’s supposedly “gay-friendly” authorities.

Srettha asked the LGBTQ community to be patient as he negotiates with concerned agencies to bring down the wall of prejudice and ensure their right to marry, Chai said.

The PM also promised to draw a road map in consultation with all sectors so that the bill will clear Parliament once it is tabled.

The spokesman said Srettha was also concerned that amending the marriage law may have unintended consequences.

For example, if the law was amended to allow women to use the title of “Mr”, they may face conscription to the military.

Srettha also voiced full support for the Bangkok Metropolitan Administration’s bid to hold Bangkok World Pride 2028.

He pledged necessary government funding for the BMA if it wins the right to host the Pride event.

World Pride parades are held every two years in a different city around the globe and attract millions of people from all over the world.

Regarding calls to decriminalise sex work, Srettha told the meeting that the issue was sensitive and could impact society and cultural norms in Thailand. However, he expressed willingness to hold meetings with all agencies concerned to find an acceptable solution, Chai said.

Past efforts by women's rights groups to decriminalise prostitution have met with strong opposition from conservative quarters. But the groups say decriminalisation of what is a large industry in Thailand would protect sex workers against corrupt officials while handing them social welfare rights in line with other professions.

Following Thursday’s meeting, Srettha posed for photos at Government House with representatives of civil groups that support the equality marriage rights bill. He also made a video call to offer moral support to a team of BMA representatives participating in a World Pride meeting in the US.