Thread: Thailand and the new coalition government

• PM hits back at Move Forward deputy leader over digital wallet

Prime Minister Srettha Thavisin has hit back at Move Forward deputy leader Sirikanya Tansakul, who said that the government’s decision to resort to a loan bill to procure funding for the digital wallet may be a desperate attempt to scuttle the scheme by using the Constitutional Court, because the loan bill may be deemed unconstitutional and contravene the fiscal discipline law.

“Do not judge other people by your standards. Do not politicise the honest intention and determination of the government to improve the living conditions of the people just to cause public confusion,” wrote the prime minister in his X post on Saturday morning, in response to Sirikanya’s criticism.

Sirikanya predicted that, in the end, the Thai people will not receive the 10,000 baht promised by the government, because the proposed loan bill will be struck down by the Constitutional Court. The Yingluck Shinawatra administration’s two trillion baht loan bill, to fund the high-speed electric train project, was previously struck down on the grounds that the project was not urgent enough to justify the promulgation of such a bill.

Meanwhile, serial petitioner and political activist Srisuwan Janya said that he will lodge a petition with the Constitutional Court, through the ombudsman, on Monday, seeking a decision on whether the planned 500 billion baht loan bill would be a violation of Section 140 of the Constitution and Section 53 of the Fiscal Discipline Act.

Senator Kamnoon Sidhisamarn said in his Facebook post today that the government’s proposed loan bill does not meet the requirements of the fiscal discipline law, because the scheme is not urgent, will not be implemented continuously, does not address a national crisis or budget cannot be allocated in time for its implementation, which are criteria to support a loan bill..

Srettha slams Sirikanya for airing ‘personal thoughts’ on 10,000 baht scheme

• Critics slam Srettha for relying on loans to fund 10,000-baht giveaway promise

Prime Minister Srettha Thavisin has been widely slammed for resolving to fund his party’s controversial 10,000-baht digital wallet scheme with loans.

Last week, Srettha announced that loans under a royal decree would fund the scheme, which will now only be applicable to Thai citizens aged 16 and above who earn less than 70,000 baht per month and have less than 500,000 baht in their bank accounts.

In a comment on X (formerly Twitter), opposition Thai Sang Thai Party leader Khunying Sudarat Keyuraphan said: “[I] agree with economy stimulus to help people. However, the decision to borrow, despite the premier’s prior assurances against it, raises concerns about the burden on the Thai people, particularly in terms of the substantial debt that will need to be repaid.

“Taking loans can be done by anybody, without requiring management abilities, much like [the government’s actions] to reduce electricity and train fares, which do not result from structural changes.”

Srettha said on Friday that in the revised iteration of the 10,000-baht digital wallet handout, the budget has risen from 560 billion to 600 billion baht, and legislation would have to be enacted to seek parliamentary approval for borrowing it.

Meanwhile, former commerce minister Jurin Laksanawisit said the policy deviates from the government’s pre-election promises, especially assurances that no loans will be taken to finance this policy.

“The prime minister emphatically reiterated his commitment not to borrow money, yet resorted to borrowing through the drafting of an act. This is an act of backsliding,” Jurin said in his capacity as caretaker leader of the opposition Democrat Party.

He said this step has hurt the government’s credibility, adding “nobody will believe what the government says anymore”.

Jurin also said he sees this giveaway as a purely populist policy.

Srettha, meanwhile, has said this 10,000-baht giveaway will not breach Thailand’s fiscal discipline and instead will elevate the GDP by 5% over the next four years. It will also reduce the country’s public debt, he said, which currently stands at 91% of the GDP.

• Cabinet approval to be sought for Thai delegation, framework for upcoming Mekong meet

The Cabinet will be asked to approve a framework for the next Mekong River Commission (MRC) meeting, as well as who will be part of the Thai delegation attending it.

Deputy Prime Minister Somsak Thepsutin said the Cabinet will be asked to give the go-ahead in time for the 30th MRC meeting and the 28th Development Partners Consultative Group Meeting to be held in Cambodia’s Seim Reap on November 24.

Somsak also chaired a meeting with the Thai National Mekong Committee last Wednesday to prepare for the upcoming MRC meeting.

At the meeting, the committee discussed the composition of the Thai delegation and the terms of reference for the selection of the MRC Secretariat’s new CEO.

Somsak said the meeting resolved to have the Office of the National Water Resources (ONWR) propose a framework and composition of the Thai delegation to the Cabinet for approval.

Somsak said the meeting also resolved to add representatives from the Hydro Informatics Institute and the Department of Climate Change and Environment to the delegation.

Meanwhile, ONWR secretary-general Dr Surasee Kittimongkol said the current and expected state of the Mekong River was also on last week’s meeting’s agenda.

The meeting was informed of the progress of the memorandum of understanding that is being drafted regarding water resources management between the ONWR and Laos’ Natural Resources and Environment Ministry.

The meeting was informed that the MoU has not been drafted yet but the process is being expedited.

• Land bridge project to attract foreign investors: Transport Ministry

Permanent Secretary to the Transport Ministry, Chayatham Phromsorn, believes that foreigners are interested in Thailand’s land bridge project and says that the government is ready to enact special laws to attract investors.

Chayatham was speaking during the participation of Prime Minister Srettha Thavisin in the APEC Economic Leaders’ Meeting 2023 in San Francisco. He discussed the preparation for showcasing the land nridge project, emphasising that it is not a newly conceived project, but has been under discussion for the past 20-30 years. The previous government also studied the Land Bridge project, he pointed out, taking full account of Thailand’s advantageous location between the South China Sea and the Andaman Sea.

The project involves transporting oil from the Middle East to manufacturing facilities in China, Japan, Korea, and Taiwan. Once the products are manufactured, they will be shipped across the Pacific Ocean. Chayatham mentioned that another part of the route would loop back through the Malacca Strait towards Europe, Central Asia, and South Asia. Thailand’s central location positions it advantageously, and a land bridge could significantly reduce transportation time, benefiting the country.

Chayatham stressed the benefits that would accrue if Thailand were to attract global shipping traffic through its territory. The land bridge could shorten the transportation route by 5-10 days, making Thailand an attractive investment destination. He urged showcasing the project to attract investments and emphasised the need for legal frameworks similar to the Eastern Economic Corridor (EEC) for the project’s development.

Chayatham suggested discussing the intentions of potential visitors prior to committing to tax incentives, noting that besides bringing cargo ships to Thailand, the project aims to attract investments for export, reducing costs and transportation time.

When asked about the percentage of foreign investors, Chayatham stressed the importance of creating infrastructure that people will use. The focus should be on attracting investors already engaged in the business rather than setting a specific foreign investment target.

Regarding the timeline for the project, Chayatham noted that a legal framework would first need to be established. This will involve creating agencies and committees responsible for the project, with clear progress expected within two years. The land bridge project is of interest to various ministries, and a direct report to the Prime Minister is planned. The targeted countries for investment include those in the Asia-Pacific region, China, Europe and the US.

• Srettha to meet executives of Tesla, HP and leading corporations during US visit

Prime Minister Srettha Thavisin will hold meetings with top executives of several leading US technology firms and manufacturers including Tesla and Meta, during his US visit to attend the APEC CEO summit 2023.

Srettha and his delegation arrived in San Francisco at 2pm on Sunday local time and were received by Thani Saengrat, Thailand’s ambassador to the US, and Tor Sornlum, the Thai consul-general.

The group was then taken to The Ritz Carlton Hotel to allow Srettha to rest before starting his official duties on Monday.

At 1pm on Monday local time, Srettha will lead his delegation to visit Tesla then return to the hotel for meetings with executives of HP and Analog Devices.

At 4pm on Monday, Srettha will open a seminar on the southern economic land bridge to link two deep seaports in Chumphon and Ranong.

Transport Minister Suriya Juangroongruangkit will try to sell the project to US investors by providing them with an overall picture of the project.

Srettha and his delegation will meet and exchange views with Thai expatriates at a dinner at 8pm.

On Tuesday US time, the prime minister will meet executives of Stanford University and Thai students at 9am. From 10.30am onwards, Srettha will receive executives from five giant US corporations, namely Walmart, Western Digital, Amazon Web Services, Google and Microsoft Inc.

At 5pm, Srettha will meet with John Kerry, the US special presidential envoy on climate, at the Moscone Centre where they will discuss climate change.

In the evening, Srettha will receive executives from Open AI at his hotel.

Then at 10 am on Wednesday US time, Srettha will hold a teleconference with Intel executive before receiving Citi executives at his hotel.

The prime minister will then participate in the CEO summit of the Asia-Pacific Economic Cooperation at the Muscone Centre. Srettha will deliver a speech and will later meet representatives from leading US firms as well as hold discussions with Japanese Prime Minister Fumio Kichida.

On return to the hotel, he will meet representatives of the TikTok platform before joining a dinner hosted by US President Joe Biden for APEC CEOs at the Exploratorium.

After the dinner, Srettha will visit Jean-Pierre Conte, CEO of Genster Capital at his house before giving a speech at a dinner for private firms from the APEC nations.

On Thursday, Srettha will hold discussions with US Secretary of Commerce Gina M Raimondo. then go on to meet with representatives from several leading US firms, including Meta and Nvidia, a leading chip maker.

Srettha will visit the Thai expat community in San Francisco before boarding flight TG8839 back to Thailand. He is scheduled to arrive in Bangkok at 7am on Sunday (November 19).

• PM Srettha calls urgent meeting on free-falling SET index

Prime Minister Srettha Thavisin ordered an urgent meeting on Monday to discuss measures to halt the slide in the Thai stock market.

Representatives from the Finance Ministry, Stock Exchange of Thailand (SET) and Securities and Exchange Commission were due to meet at Government House at 1pm as the SET Index continued to fall on Monday.

PM Srettha will be represented at the meeting by his adviser, Kittiratt Na-Ranong, according to a Government House source.

Srettha, who doubles as finance minister, has asked the three agencies to come up with urgent measures to prop up the SET index, which has fallen by some 120 points since his government was formed in late August.

The SET Index was hovering around 1,500 points before the Pheu Thai-led administration came to power. It fell to a three-year low of 1,371.22 on October 26.

It is now hovering around the resistance line of 1,380 points.

As of 1pm today (Monday), it had fallen six points on the day to 1,383.39.

On October 26, the SET fell by 30.48 points to close at its lowest in three years.

The SET recently issued two statements assuring investors that the stock market outlook remains healthy, but they failed to revive share prices.

• PM believes coalition will support funding of digital wallet

Prime Minister Srettha Thavisin believes he can count on 320 votes from the coalition to push the bill needed to borrow money to distribute the 10,000 baht digital payments through the parliament.

In an interview yesterday (November 12) in San Francisco where he is attending the APEC meeting, the PM made the point that society includes people with different opinions and support and stressed the importance of providing clear information. He expressed the desire for Thai society including opposing factions, the government, and the opposition, to avoid division and engage in discussions about the benefits and drawbacks of the project.

When asked about the possibility that the project might not materialise and may not pass through the parliament, leading to the public not receiving the funds, Srettha stated: “I am confident that my coalition government has 320 votes. I believe my votes are stable, and we work as a team. I am confident it will pass.” When asked again if the Thai people would have the opportunity to receive the 10,000 baht, he reiterated his confidence, stating that the government leader must listen to the people. “The delay in the project announcement is because the team needs to consider all opinions, including discussions and objections about such issues as the proposed law to define the rich and the debate about income limits.”

Srettha stressed that the policy is sound, appropriate, and unrelated to technical or legal matters. The government confirms that everything is done correctly, and the committee will provide positive feedback. The only concern is whether the country is currently in a crisis that requires action. If there is a crisis and a necessity to act, it would be done; otherwise, if there is no crisis, it may not be necessary. Srettha highlighted the economic growth challenges faced by Thailand compared to other countries in the region.

He believes that the country needs stimulation and investment, and the government is confident of the necessity of the proposed project, despite differing opinions.

The news reporter asked whether some Pheu Thai voters would feel disappointed for not meeting the criteria to receive the money, as they have savings exceeding 500,000 baht, amassed through disciplined saving, yet have an income of less than 70,000 baht. Srettha responded that he understands and sympathises, but stresses the need to listen to all perspectives. Both the National Economic and Social Development Council and the Bank of Thailand have made it clear that the handouts should not be distributed to the wealthy and have enquired about defining the criteria for the wealthy.

The government has introduced the “e-refund” project (a tax refund programme that offers rebates on personal income tax) for the well-to-do, under which by shopping for goods up to a certain value, individuals can receive a refund of approximately 10,000 baht, equivalent to the Digital Wallet project that the team has proposed. This includes long-term projects in the fund to promote competition in new industries, such as electric vehicles and microchips, with a budget of 100 billion baht, starting in June 2024.

PM confident that loan bill for "digital wallet" will be fully supported by coalition

*​sigh*

• Tourism authorities eye 60-day visa exemption for Europeans

The Tourism and Sports Ministry is planning to propose to the Cabinet that the visa exemption period for visitors from over 50 countries be extended from 30 days to 60 days.

The measure would help further boost the tourism industry on top of the visa-free policy currently granted to visitors from China and Kazakhstan for five months, or until February 2024, minister Sudawan Wangsuphakijkosol said on Monday.

In the first phase, the extension will cover mainly countries in and around Europe such as the UK, Germany, Scandinavian nations, and the Commonwealth of Independent States (CIS), which include Kazakhstan, Uzbekistan and Turkmenistan.

“The visa-free policy has provided unprecedented opportunity for Thailand to attract foreign tourists,” she said. “The ministry together with the Tourism Authority of Thailand (TAT) are discussing plans to extend the visa waiver period to European countries, from where most high- spending visitors come, in a bid to motivate them to stay in Thailand longer."

Sudawan added that European visitors make up about 20% of foreign tourists and are the second largest group after visitors from Asia. Last year the average stay period among Europeans was 18.55 nights per person with average spending of 66,000 baht per trip.

“This year, the spending among European visitors shows a rising trend to around 80,000 baht per trip,” she said.

The TAT has set a target revenue from foreign visitors at 2.5 billion baht in 2024, while Thai tourists will contribute another 1 trillion baht to the industry, making up a total 3.5 trillion baht of tourism revenue next year.

“We aim to further increase revenue from foreign visitors in 2025 to 3 trillion baht,” said Sudawan. “This is achievable as the airline industry worldwide is expected to have fully recovered by mid-2024, restoring flights from European countries to Thailand.”

Earlier this month, Scandinavian Airlines (SAS) reopened the Copenhagen-Bangkok route after a 10-year hiatus, revitalising Thailand’s hopes of penetrating the long-haul tourism market from Scandinavia.

• Idea of joint patrol with Chinese police a miscommunication : PM

Prime Minister Srettha Thavisin says he has never talked about inviting Chinese police to come to Thailand to join their Thai counterparts on patrols in tourist destinations, to boost the confidence of Chinese tourists about their safety in the kingdom.

In an interview from San Francisco in the United States, where he was attending the APEC conference on Monday evening local time, the prime minister said it was a miscommunication on the part of the governor of the Tourism Authority of Thailand, Thapanee Kiatphaibool.

The TAT governor told the Thai media that the prime minister floated the idea of the presence of Chinese police in tourist provinces popular with Chinese visitors.

The prime minister explained that what he actually meant about cooperation between Thai and Chinese police is the sharing of information, to boost the confidence of Chinese tourists visiting Thailand, because of the concerns over the “grey businesses” of some Chinese businessmen.

He insists that it is the duty of the Thai police to provide protection to all foreign tourists, including the Chinese, as he pleaded for understanding over the miscommunication.

The idea of joint patrols by Thai and Chinese police sparked widespread and strong opposition from critics, claiming that it would infringe on Thai sovereignty and would be tantamount to a slap in the face to the Thai police.

The national police chief, Pol Gen Torsak Sukvimol also voiced his strong opposition to the idea.

Chinese police have, however, been invited to some countries, such as Italy and Croatia, reportedly to conduct joint patrols to ensure safety for Chinese tourists.

• No naked short-selling of Thai stocks: PM advisor

Kittirat Na-Ranong, the Prime Minister's advisor, has insisted that there is no “naked short-selling” in the Thai stock market and stressed that proactive measures to control individual investors are in place.

He was speaking after a meeting between representatives of the Finance Ministry, the Stock Exchange of Thailand, and the Securities and Exchange Commission at the Government House. He acknowledged concerns about the market’s vulnerability, attributed in part to Thailand's initially high market base and various factors like Thai and foreign investors, business performance, economic expansion, and short selling transactions.

Kittirat expressed confidence in the government's economic growth projections and also touched on the upcoming release of clear economic figures expected today (November 14) at 5pm, which will address household debt concerns. Regarding “naked short-selling”, he noted that the Securities Exchange Commission (SEC) is strictly monitoring any signs of this practice, which is considered illegal. Pointing to the complexity of today's investment world, he confirmed that there is no naked short-selling, urging investors to trust this assurance.

Naked short-selling refers to the practice of selling shares that an investor does not own and has not borrowed. This practice can be highly risky and lead to excessive stock market manipulation and volatility through speculation.

Speaking of the Finance Ministry’s plan to encourage funds for institutional and public investors, focusing on environmentally friendly ESG funds, Kittirat suggested these funds would attract significant interest. He clarified that the fund’s size would be discussed at a later date, emphasising that its purpose is not to manipulate falling stocks but to increase long-term investments in ESG group stocks.

Responding to questions about a sharp stock decline, Kittirat admitted a significant drop, but would not comment on whether it was felt to be excessive. He added that addressing household debt should boost market confidence.

When pressed on the absence of naked short-selling, Kittirat said he was confident this was the case and again stressed that the issue was not being ignored. The SEC adheres to international standards and intends to strengthen monitoring, he said. While complying with legal standards is straightforward, catching determined investors is SEC’s responsibility, he noted, adding that he had complete confidence in the SEC’s audit standards.

• PM seeks to boost trade and investment on US visit

Thailand’s prime minister yesterday held discussions with leading US private sector executives, emphasising Thailand's readiness as a production base and in developing the supply chain.

Since arriving in San Francisco on Sunday (November 12) to participate in the APEC CEO Summit 2023, PM Srettha Thavisin had held a series meetings with private sector leaders to support collaboration, trade, and investment.

One of the first calls made by the PM and his delegation was to Tesla’s production facility in Fremont, California. The world leader in electric cars and energy registered Tesla (Thailand) on April 25, 2022, and is currently exploring investment opportunities in the Asian region.

The prime minister expressed satisfaction with the meeting with Tesla executives and the visit, saying that collaboration towards mutual creativity and future benefits, particularly in electric cars and clean energy, had been discussed with the aim of reinforcing Thailand’s position as a centre for electric vehicles (EVs) and alternative energy in the future. He also expressed the hope that Tesla would increase its investment in Thailand.

In the afternoon, Srettha held discussions with top executives of HP, a global company in the personal computer and laptop industry. The Prime Minister invited HP to turn Thailand into a production base, develop the supply chain, and establish regional offices. He stressed Thailand's readiness in terms of infrastructure and policies to facilitate business operations and invited HP to collaborate in the education sector to develop a skilled workforce.

Later in the day, the prime minister met with executives from Analog Devices, Inc (ADI), a major global integrated circuit (IC) manufacturer. Srettha supported ADI's expansion in Thailand, particularly in clean energy infrastructure, and assured them of the government's full support. He encouraged ADI to invest more in Thailand, emphasising the country's potential in clean energy.

In the evening, the Prime Minister Srettha attended a seminar on the Land Bridge project, held discussions with Thai private sector leaders, and participated in a networking reception at the Ritz-Carlton hotel.

• PM’s adviser fears for economy as Thailand slips into deflation

Figures showing the first negative inflation in 25 months signal deflation that could hit economic growth this year, an adviser to the prime minister warned on Wednesday.

Pichai Naripthaphan, deputy chairman of Pheu Thai Party’s strategies and politics committee and adviser to PM Srettha Thavisin, said the negative inflation rate in October was a bad sign that warranted the delivery of an economic stimulus package.

October saw inflation at minus 0.31%, the first negative rate in 25 months.

Pichai noted that inflation had been very low for five consecutive months before plunging into negative territory last month. Inflation was low in May at 0.53%, followed by 0.23% in June, 0.35% in July, 0.88% in August and 0.30% in September.

Pichai said Thai inflation rates were low despite high oil prices.

He predicted that inflation in November and December would remain negative at about minus 0.35% and minus 0.42% respectively.

The negative Thai inflation comes despite high inflation rates elsewhere, including 4.3% in Europe and 3.7% in the US.

Pichai said negative inflation was a sign that Thai consumers had low purchasing power, signalling the danger of deflation and a shrinking economy.

He cited China as an example, saying it recorded inflation of minus 0.2% in October because Chinese people had low purchasing power due to the debt crisis in the property sector. This had also reduced the number of Chinese tourists visiting Thailand and cut Thai exports to China, he said.

PM’s adviser fears for economy as Thailand slips into deflationCurrent inflation figures indicated that Thailand’s economic growth this year would fall below 2% from the initial projection of 3.5%, he added.

The global economic slowdown and ongoing wars in Europe and the Middle East would aggravate Thailand’s economic situation.

“So, I would like all sides to brainstorm ideas on how to stimulate the economy before the situation gets too serious,” Pichai said.

Pheu Thai’s plan to stimulate the economy by borrowing 500 billion baht to hand out 10,000-baht payments to some 50 million people has come under strong criticism from all sides. Pichai stopped short of mentioning the digital wallet handout scheme.

• PM has backup plan should digital wallet loan bill be rejected by Council of State

Prime Minister Srettha Thavisin said that the Pheu Thai party has prepared a Plan B to enable it to implement the controversial digital wallet scheme, in the event the government’s 500 billion baht loan bill to fund the scheme is ruled unconstitutional by the Council of State.

In his interview from San Francisco on Tuesday (local time), the prime minister emphasised that the Thai economy is in crisis and, therefore, it is absolutely necessary that a huge amount of money be injected into the system to stimulate it, citing the digital wallet scheme.

Declining to elaborate on the backup plan, he said that the ruling Pheu Thai party has developed several measures to stimulate the economy, including the digital wallet scheme.

Meanwhile, Dr. Surapong Suebwonglee, former finance minister and a member of the National Soft Power Strategic Committee, equates Thailand’s economy to a bleeding patient.

In his Facebook post, he said that he is deeply concerned about liquidity, which will worsen and have serious impacts on the Thai economy unless there is a huge amount of new money being injected into the economic system.

Capital outflows and the refusal of commercial banks to extend loans are contributing to the negative liquidity, he said, noting that, in August alone, liquidity amounted to one trillion baht.

According to Credit Bureau, Dr. Surapong said household debt amounts to 90.6% of GDP and 7.4% of that debt are non-performing loans (NPLs).

He also said the growth rate for the whole year is expected to be lower than 2%, an indicator of a worse economic situation to come.

• Commerce Ministry agrees to 2 baht per kilo increase on white sugar

Thailand’s Central Committee on the Price of Goods and Services (CCP) has agreed to allow the ex-refinery price of white sugar to increase by two baht per kilogram and is lifting the control on the wholesale and retail prices of sugar.

Wattanasak Sua-iam, director-general of the Internal Trade Department, said that the CCP did, however, agree to keep white sugar in the list of controlled goods.

The ex-refinery price of white sugar will be adjusted from 19 baht to 21 baht per kilogram while pure while sugar will now be priced at 22 baht, up from 20 baht/kg, in line with the sugarcane price structure agreed by the Sugarcane and Sugar Committee, he said.

• Now is the time to invest in Thailand, PM tells APEC summit

Prime Minister and Finance Minister Srettha Thavisin on Wednesday told the world and business leaders attending the APEC CEO Summit 2023 that now is the time to invest in Thailand. The Thai PM noted that the government is ready to work with all partners, old or new, public or private, to push economic development under the Asia-Pacific Economic Cooperation (APEC).

Srettha is in the US this week for the 30th APEC Economic Leaders’ Meeting in San Franciso, being held from November 11-17.

Government spokesperson Chai Wacharonke on Thursday reported the gist of the PM’s address to the summit, which opened with Srettha emphasising Thailand’s readiness to be back in business.

Srettha told the summit that with a stable political climate, the Thai government is pushing ahead with various economic policies. The priorities are to amplify growth, boost competitiveness and elevate Thailand’s position as a prominent destination for trade and investment.

Great importance is also placed on creating a conducive and enabling environment that attracts investment, and encouraging innovation and entrepreneurship, while fostering collaborations for sustainable growth and development, he added.

Srettha mentioned APEC’s achievements over the years, especially in successfully lifting millions out of poverty through open trade and investment among partners and business communities in the Asia-Pacific region, which is home to one-third of the world’s population and contributes to almost half of the global trade.

The Thai PM then shared his vision of how APEC and the business community should work together for further success, with emphasis on sustainability, technologies and innovation, and trade and investment.

On the issue of sustainability, Srettha pointed out that the Bangkok Goals on BCG (bio-circular-green) Economy adopted last year by all APEC leaders provided the much-needed pathway for sustainability actions. He applauded the launch of the BCG Pledge by the APEC Business Advisory Council (ABAC), and urged all companies to sign on and contribute to it.

As for technologies and innovation, Srettha said the rapid emergence of ground-breaking technologies, such as generative AI, blockchain, and the Internet of Things (IoT), is profoundly reshaping the business landscape, manufacturing processes, and daily lives. As APEC economies navigate the transition to this new paradigm, close cooperation and exchange of relevant knowledge and technologies is increasingly crucial if all economies, particularly developing economies, are to access the opportunities in an affordable manner and equitably reap the benefits.

Srettha also urged APEC to invest in and enhance education systems to equip its citizens with the skills needed to thrive in this fast-evolving digital age.

Lastly, on the issue of trade and investment, Srettha highlighted the importance of the Free Trade Area of the Asia-Pacific (FTAAP), which helped increase trade across APEC from US$7.5 trillion in 2001 to about US$27 trillion in 2021. He added that Thailand will work on upgrading existing FTAs to reinforce the interconnectedness of APEC economies while opening up new trade and investment opportunities for the partners.

Srettha said Thailand also recognises the need to keep supply chains open and resilient against potential future shocks. For this reason, the country has prioritised improving physical connectivity and investing in infrastructure. This includes upgrading airports throughout the country and embarking on a mega project to develop a land bridge to connect the Andaman Sea to the Gulf of Thailand.

“This land bridge will considerably reduce the commute time between the Indian and Pacific oceans and mitigate the constraints faced in the area. The vision is for Thailand to become a regional hub for commerce and logistics within this decade,” Srettha said.

• Microsoft signs MoU to help create a digital-first, AI-powered Thailand

Microsoft has agreed to collaborate with the Thai government to drive the country's national digital development, skilling the work force and sustainability efforts to pave the way for digital infrastructure investments centred on artificial intelligence and cloud.

The company signed a memorandum of understanding (MoU) on Thursday in San Francisco with the Thai government to pursue the vision of a digital-first, AI-powered Thailand.

The partnership aims to strengthen Thailand's economic competitiveness, create high-value jobs that enable Thais to achieve more, and position Thailand as a regional leader in digital innovation and sustainability, Microsoft said.

Thai Prime Minister Srettha Thavisin, who is currently attending the Asia Pacific Economic Cooperation Summit in San Francisco, met with CEO Satya Nadella and discussed the key objectives of the MoU.

He stated Thailand's commitment to a sustainable future and renewable energy, which aligns with Microsoft's vision.

"This collaboration will strengthen our country’s economy while enhancing our digital capability,” Srettha said.

Among the topics discussed were building a digital-first Thailand, shaping the country's AI-powered future, preparing Thais for the future of work and life, and elevating Thailand to green growth leadership.

Microsoft said that, in accordance with the Ministry of Digital Economy and Society's "digital government" and "cloud first" policies, the company would collaborate closely with Thai government agencies to drive the development of smart digital infrastructure in areas such as agriculture, healthcare, tourism, and education.

Both parties agreed to find a path towards data centre investment to boost cloud and AI use in Thailand. Microsoft said it would work to improve the Thai government's cybersecurity posture with industry-leading best practices and expertise.

Meanwhile, Microsoft will work with the ministry to develop and integrate AI into e-government projects and public services for Thai citizens.

Both parties intend to establish a strategic AI Centre of Excellence to accelerate existing public-sector AI projects, define a clear roadmap for AI implementation, and foster innovation across multiple sectors and industries.

The ministry and Microsoft agreed to collaborate on policy and regulatory frameworks to ensure the responsible and productive use of AI in Thailand.

In addition, the company pledged to continue its mission of developing future-ready skills for 10 million Thais by collaborating with the ministry and other stakeholders to provide Thais with critical skills.

Microsoft signs MoU to help create a digital-first, AI-powered Thailand

"From building second-language proficiency and advancing digital literacy to developing the next generation of citizen developers, this collaboration seeks to provide underserved communities across the country with access to more learning opportunities and materials," Microsoft said in a press release.

Besides, Thai government agencies will work with Microsoft to create a sustainability sandbox for the development of environmental innovations in order to accelerate Thailand's journey to net-zero greenhouse gas emissions by 2065.

The move will allow the investigation of effective and scalable initiatives for the public sector, large enterprises, and small businesses alike.

Microsoft said it also would work to achieve 100% renewable energy usage for potential investments in the country.

Ahmed Mazhari, president, Microsoft Asia said that with Thailand already targeting 48 billion baht (approximately $1.33 billion) in business and social impact through AI by 2027, Microsoft was excited to be working more closely with the Thai government in bringing this vision of AI-powered Thailand to life.

• Repayments under Student Loan Fund to be recalculated

Thailand has begun to address the issue of household debt, starting with monies owed under the Student Loan Fund (SLF).

Kittirat Na Ranong, chief advisor to the Prime Minister and chairman of the committee overseeing the resolution of debt, said on Tuesday that the approach to addressing the debt issues of the Student Loan Fund (SLF) had been approved at the committee’s first meeting and that the debt burden of current borrowers would be calculated in line with the provisions of the Student Loan Fund Act (No 2) of 2023, which has been in effect since March 20, 2023.

“The SLF group will be the first group to receive assistance in resolving their debt burden. Assistance will then be expanded to cover borrowers from other groups throughout the entire system,” Kittirat said.

Lavaron Saengsnit, undersecretary of the Ministry of Finance, stated that under the new law, the debt burden of SLF borrowers would be newly calculated and the sequence of interest deductions adjusted, starting with deducting the loan principal for those who have been making repayments.

Subsequently, the newly accrued interest will be deducted, followed by overdue interest. This adjustment will result in a faster reduction of the principal compared to the previous method.

This round of debt calculations is expected to cover approximately 3.5 million borrowers who are still in debt to the SLF after the enforcement of the Student Loan Fund Act (No. 2) of 2023,

“With these recalculations, the debt burden for borrowers who have been making repayments will significantly decrease. Some borrowers who are still in the process of repayment may have their debts fully cleared and closed after the recalculation,” Lavaron said.

SLF debt has been a significant factor contributing to the rise in household debt in Thailand.

The group of borrowers under the age of 30 still carries a concerning debt burden, as evidenced by household debt figures for the first quarter of 2023 from the Bank of Thailand.

It was found that outstanding debt amounted to 16 trillion baht, equivalent to 90.6% of the GDP. Of this, SLF debts accounted for approximately 4.83 trillion baht or around 4% of total household debt.

The groups experiencing increased debt repayment challenges after COVID-19 include individuals aged 50-60 and those below 30. Within the latter group, some may still have outstanding debts, including SLF debts.

Data also reveals that individuals under the age of 30 fall into the Special Mention Loans (SML) category, which refers to debts that are overdue for 1-3 months, with a high non-performing loan (NPL) ratio of up to 20.8% of total credit.

These debts are often associated with consumer spending, contributing little to no income generation.

On June 6, 2023, the Commerce Ministry’s Economic and Trade Index Office released a report on household expenditures for May 2023. The report revealed that the overall household expenditure averaged 18,023 baht per month.

At the same time, according to the National Economic and Social Development Council, the average wage for the second quarter of 2023 was 15,412 baht per person per month.

This implies that the average monthly income is lower than household expenditures by over 2,600 baht per month, and this does not even include the burden of debt.

• Only ID cards will be needed to access free medical services next year : Cholnan

Starting on January 8, Thai nationals will be able to access free medical services, at government and selected private hospitals contracted by the government, in Phrae, Roi-et, Phetchaburi and Narathiwat provinces by just producing their ID cards.

Public Health Minister Cholnan Srikaew said that Prime Minister Srettha Thavisin will preside over the launch of this Phase I universal healthcare program, an extension of the Bt30 health program initiated by the now defunct Thai Rak Thai party.

Phase II of the program is scheduled to be launched in March in Phetchabun, Nakhon Sawan, Sing Buri, Phang-nga, Nong Bua Lamphu, Amnat Charoen, Nakhon Ratchasima and Sa Kaeo.

Phase III will be launched in April, said the minister, adding that he expects that the program will be implemented nationwide within the next year.

Last week, the cabinet approved a Bt217 billion budget to fund the universal health care program, which is also accessible by migrant workers, but they will be required to show their passports or social security cards.

The average medical coverage for each Thai national under this program is set at Bt3,472.24.

Dr Cholnan said that this program will have to be approved by parliament before it comes into effect. “However, that disbursement of the budget will not be affected, even though there may be a delay in the parliamentary process.”

• PM Serttha showcases Thailand's economic potential and confidence at APEC

Prime Minister Serttha Thavisin taunted Thailand as the hub of the regional economy with new potential for trade and investment in multifaceted fields.

In his keynote speech yesterday at the APEC CEO summit in San Francisco, Serttha declared that it is now the time to invest in Thailand as the country is fully back in business. “With a stable political climate, we are pushing full steam ahead. Various economic policies and investment incentives are now taking center stage and being vigorously implemented.”

The prime minister, who is attending the Asia Pacific Economic Cooperation Leaders Meeting, reiterated that Thailand attaches great importance to creating an enabling environment that attracts investment, encourages innovation, while fostering collaborations for sustainable growth.

Serttha was also satisfied that the Bangkok Goals on Bio-Circular-Green Economy (BCG), adopted last year by all APEC Leaders, has now become an important guidelines for the APEC members towards the pathway for such actions. “Thailand is pleased to play a leading role towards this landmark document,” he added.

As part of the BCG efforts, he pointed out that Thailand has actively promoted green finance through the issuance of Sustainability-Linked Bonds to stimulate the growth of the Green Bond market, which will be announced next year.

Furthermore, he said that Thailand is focusing on reducing fossil energy use and investing in renewable energy. Last year, he added from the baseline, Thailand was able to cut at least 15% of greenhouse gases in the energy and transportation sectors.

“This will make Thailand the hub for renewable energy. It will also ensure that all companies investing in Thailand in the future have access to renewable energy,” he declared.

Thailand is also championing the development of the EV industry, Serttha said that Thailand’s goal is to establish a comprehensive EV supply chain that includes all types of electric vehicles and components.

The prime minister also invites protection investor to put money in the EV sector as the government will provide investment privileges in the special economic zones, offering labor development courses, and expanding charging infrastructure.

In addition, toward the end of his speech, he said that Thailand is embarking on a mega project to develop a land bridge, connecting the Andaman SEATO to the Gulf of Thailand. “It will considerably reduce the commute time between the Indian and Pacific oceans and mitigate the constraints faced in the area. This is an important project, not just for Thailand, but also for the world. Since this will provide an alternative connecting point between the east and the west,” he concluded.

• PM urges business leaders at APEC to invest in Thailand now

Prime Minister Srettha Thavisin has suggested to business leaders in the United States that it is the right time for them to invest in or expand their investments in Thailand, as he pledged full cooperation, according to Government spokesman Chai Wacharonke.

Addressing attendees at the APEC-CEO Summit 2023, at the Moscone Centre in San Francisco yesterday, the prime minister said that Thailand is politically stable and that the government has been implementing economic policies to stimulate growth, sustainability and competitiveness.

He described APEC as a powerful forum for growth, with its member countries being home to a third of the world’s population who generate half of the world’s trade volume, adding that, in the past several years, APEC has succeeded in lifting millions of people out of poverty through openness in trade and investment.

The prime minister highlighted sustainability, technology, innovations, trade and investment as key areas of economic cooperation.

On sustainability, he mentioned the Bangkok Goals on the Bio-Circular-Green Economy (BCG), which was introduced by Thailand in 2021, adopted at the APEC Summit in Bangkok last November and continued at the APEC Summit this year in the United States. He said he is encouraged that the National Centre for APEC has agreed to hold a Sustainable Future Forum for the first time.

On technology and innovation, the prime minister told the conference that the Thai government plans to introduce blockchain technology for the “digital wallet” scheme which, he said, will not only stimulate the Thai economy, but will also improve the digital technology skills of Thai people.

The Thai government, according to the prime minister, also aims to migrate to digital government in the long run, to improve the effectiveness of public services with the help of technology, and welcomes foreign investment in digital technology.

On trade and investment, the prime minister stressed the importance of maintaining a flexible supply chain, to cope with changes which may occur in the future, and the importance of improving physical connectivity and investment in infrastructure, such as the land bridge mega project in southern Thailand to facilitate the movement of cargo between the Indian and the Pacific oceans, bypassing the Straits of Malacca, which will transform Thailand into a logistics hub in Southeast Asia.

• Thailand and Canada boost ties and cooperation at APEC Summit

Prime Minister Srettha Thavisin told Canada’s PM, Justin Trudeau, that Thailand is open and ready for investment as the two leaders met during APEC summit week in San Francisco on Thursday, said government spokesperson Chai Watcharong.

A self-declared “salesman” for Thailand, Srettha is on a mission to attract investment as world leaders attend a series of summits in the US city during APEC week.

Trudeau told Srettha at the 30th APEC Economic Leaders’ Meeting on Wednesday that Canada is ready to strengthen relations and cooperation with Thailand in various sectors at the regional and provincial level, Chai said. Canada aimed to boost ties under its Indo-Pacific strategy, he added.

Both sides agreed that a free-trade agreement (FTA) currently being negotiated between Thailand and Canada would be beneficial to both countries.

Srettha has met with several leading corporations considering using Thailand as a production base, amid a global trend for business relocation to the ASEAN region. The Thai government said Google, Microsoft and Amazon have pledged to invest a total of around 300 billion in Thailand as the country transitions to a digital economy.

• Closer ties, greater cooperation discussed at Srettha's meeting with Australian PM

Prime Minister Srettha Thavisin and his Australian counterpart Anthony Albanese have expressed their resolve to enhance cooperation at multiple levels at the upcoming special summit to celebrate the 50th anniversary of ASEAN-Australia relations next year.

The two leaders met on November 16 in San Francisco during the 30th Asia Pacific Economic Cooperations Economic Leaders' Meeting in the US.

Thai government spokesperson Chai Watcharong said Srettha had told Albanese that Thailand would be participating in the event in Australia and also intended to bring private sector representatives.

The two leaders acknowledged that significant progress had been made towards an advanced Free Trade Agreement (FTA), as well as closer people-to-people exchanges, Chai said.

Chai said the leaders highlighted tourism as a pivotal policy for both governments. Srettha briefed Albanese about numerous leading companies relocating their production bases to Thailand, particularly for the manufacturing of electric vehicles and the establishment of data centres. This aligned with Thailand's beneficial investment policies for the private sector, Chai said.

The Australian PM expressed delight and confidence in Thailand's participation at the special summit in March 2024, marking 50 years of ASEAN-Australia relations.

Chai said a large number of Thai nationals reside across various sectors in Australia, such as business and culinary ventures. Both nations have a strong collaboration in education. However, due to the high inflation rate resulting from international circumstances, local products in Australia have seen price hikes, affecting the citizens.

Albanese laid emphasis on the ASEAN-Australia relationship, particularly in economic aspects.

Albanese said the special summit to celebrate 50 years of ASEAN-Australia relations was crucial, and Australia welcomed the participation of ASEAN leaders. He said economic ties between Australia and ASEAN were mutually supportive. Albanese also commended the successful hosting of the APEC 2022 meeting by Thailand as the host nation.

• PM Serttha showcases Thailand's economic potential and confidence at APEC

Prime Minister Serttha Thavisin taunted Thailand as the hub of the regional economy with new potential for trade and investment in multifaceted fields.

In his keynote speech yesterday at the APEC CEO summit in San Francisco, Serttha declared that it is now the time to invest in Thailand as the country is fully back in business. “With a stable political climate, we are pushing full steam ahead. Various economic policies and investment incentives are now taking center stage and being vigorously implemented.”

The prime minister, who is attending the Asia Pacific Economic Cooperation Leaders Meeting, reiterated that Thailand attaches great importance to creating an enabling environment that attracts investment, encourages innovation, while fostering collaborations for sustainable growth.

Serttha was also satisfied that the Bangkok Goals on Bio-Circular-Green Economy (BCG), adopted last year by all APEC Leaders, has now become an important guidelines for the APEC members towards the pathway for such actions. “Thailand is pleased to play a leading role towards this landmark document,” he added.

As part of the BCG efforts, he pointed out that Thailand has actively promoted green finance through the issuance of Sustainability-Linked Bonds to stimulate the growth of the Green Bond market, which will be announced next year.

Furthermore, he said that Thailand is focusing on reducing fossil energy use and investing in renewable energy. Last year, he added from the baseline, Thailand was able to cut at least 15% of greenhouse gases in the energy and transportation sectors.

“This will make Thailand the hub for renewable energy. It will also ensure that all companies investing in Thailand in the future have access to renewable energy,” he declared.

Thailand is also championing the development of the EV industry, Serttha said that Thailand’s goal is to establish a comprehensive EV supply chain that includes all types of electric vehicles and components.

The prime minister also invites protection investor to put money in the EV sector as the government will provide investment privileges in the special economic zones, offering labor development courses, and expanding charging infrastructure.

In addition, toward the end of his speech, he said that Thailand is embarking on a mega project to develop a land bridge, connecting the Andaman SEATO to the Gulf of Thailand. “It will considerably reduce the commute time between the Indian and Pacific oceans and mitigate the constraints faced in the area. This is an important project, not just for Thailand, but also for the world. Since this will provide an alternative connecting point between the east and the west,” he concluded.