Thread: Thailand and the new coalition government

• Govt plans short-term stimulus measure until budget bill is passed

The Finance Ministry is drafting a short-term plan to stimulate the economy, to be implemented before the Budget Bill for fiscal 2024 takes effect, permanent secretary Lavaron Sangsnit said on Thursday.

Parliament is currently deliberating the first reading of the government’s proposed 3.48-trillion-baht budget in the first reading, which concludes on Friday.

Lavaron said the stimulus plan aims to “keep the economy afloat”, as well as ensure that government agencies and state enterprises could start disbursing their investment budget as planned. It would be especially useful for those planning to invite bids for government projects, so that the contracts could be signed as soon as the bill was passed.

Lavaron pointed out that the economy required a stimulus as the fiscal budget was not yet available.

He added that Thailand was expecting a spike in foreign arrivals from previously announced tourism promotion policies, as well as the tax exemption on imported alcoholic beverages.

“These measures would also help stimulate the domestic economy and consumption, enabling the government to collect more revenue from value added tax,” he said.

Lavaron did not disclose the amount for the short-term stimulus or how it will be funded.

The government’s revenue collection in fiscal 2023, which ended on September 30, 2023, amounted to 2.66 trillion baht, exceeding the target by 174 billion baht, or 7%. The Revenue Department alone contributed 2.21 trillion baht to the total revenue.

The proposed 2024 fiscal budget of 3.48 trillion baht is 9.3% higher than that of the previous year, with the government expecting 2.78 trillion baht in revenue. Thailand expects to run a deficit of 693 billion baht, or 3.6% of the GDP, in fiscal 2024.

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• Corrections panel to consider rules for convicts to serve terms outside prison

The Justice Ministry will call a meeting of the corrections committee on January 11th, to consider the rules for screening convicts who are qualified to serve their remaining terms outside a prison, according to a well-informed source in the Justice Ministry.

The rules were drafted by an 8-member panel, led by Chutarut Chintakanon, deputy director-general of the Corrections Department.

The source disclosed that the panel has come under pressure, through political interference, to draft the rules in the favour of individuals, forcing some panel members to take leave.

The source said that the rules will be in line international standards, similar to those applicable to pro-democracy Myanmar leader Aung San Suu-Kyi, who was moved from prison to house arrest in Myanmar, wearing a monitoring ankle bracelet.

The Corrections Department has come under heavy criticism for the issuance of a regulation, allowing convicts to serve their terms outside prison, allegedly designed to benefit convicted former prime minister Thaksin Shinawatra.

It is also criticised for allowing Thaksin to serve his time at the Police General Hospital since his arrival back in Thailand in August, on the grounds that he is suffering from several illnesses requiring treatment at a hospital outside the prison.

Thaksin has already been staying at the Police General Hospital for more than the 120-day limit.

• Interior minister promises to spend budget wisely

Interior Minister Anutin Charnvirakul has told parliament that the bulk of the 460 billion baht allocated to the Interior Ministry in the 2024 fiscal year will be used to increase opportunities, improve social equality and eradicate poverty.

The budget also includes money for the Bangkok Metropolitan Administration and Pattaya City, which are two semi-independent agencies under the Interior Ministry.

Anutin said that the allocation of budget within the ministry is in line with national strategies, the government’s policies and the United Nations’ objectives for sustainable development, eradication of poverty and environmental protection.

He said some of the major projects to be implemented by the ministry this year include the construction of new civic centres, improvement of public services and digital identity certification.

He also said that the ministry will help promote tourism in communities, create more jobs, enhance public safety and provide utilities, such as tap water and electricity supplies.

He assured parliament that all the ministry’s budget will be spent wisely and for the utmost benefit of the people.

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• Defence minister briefs MPs on Chinese submarine deal

Thailand’s 13.5-billion baht deal to buy a submarine from China should soon reach a conclusion, Defence Minister Sutin Klungsang told the Parliament on Thursday, noting that the Office of the Attorney General is expected to provide an instruction to either proceed with or back out of the deal over the weekend.

Sutin was explaining the use of the defence budget to the Parliament during the deliberations on the Budget Bill for fiscal 2024. The government has proposed a total budget of 3.48 trillion baht. The 3-day session is scheduled to end today (January 5).

Sutin pointed out that the deal was initiated by the Prayuth administration back in 2017, and has since faced several problems, notably that China was unable to supply an S26T Yuan-class submarine fitted with a German-made diesel engine as per the contract.

As Germany prohibits such engines from being used in Chinese military hardware, Beijing proposed to use a Chinese-made engine for the submarine instead, an offer later rejected by the Royal Thai Navy (RTN).

Instead, the Thai navy proposed to buy a frigate from China in place of the submarine. However, the new frigate project would cost 1 billion baht more than the original submarine procurement so has been shelved.

Sutin added that if Thailand were to back out of the deal now, it could lose the 6 billion-baht already paid to China if it were unable to prove that China violated the contract. This prompted the ministry to seek advice from the Office of the Attorney General.

“China could use the fact that we missed the payment schedule once during Covid-19 to conclude that it is Thailand that broke the contract,” he said.

Suthin also responded to criticisms that the Defence Ministry was being allocated a budget almost 2% or 3.8 billion baht higher than in the previous year, arguing that that this increment was minor compared to the inflation rate.

“The ministry is working to reduce the size of the armed forces, but this will take time if we are not to affect the efficiency and morale of the personnel,” he said. “One of the measures is to offer early retirement programme for high-ranking officials, which should reduce the number of generals from around 700 to 380 by 2027.”

The Defence Minister also reported the progress of the salvage mission of HTMS Sukhothai from the seabed, explaining that mud is now being removed from the wreckage to allow the whole ship to be hoisted to the surface rather than in parts.

He said this process is necessary to determine why the ship sunk, adding that washing off the mud will not destroy any evidence.

The HTMS Sukhothai corvette warship went down on December 18, 2022 about 20 nautical miles off Prachuap Khiri Khan province after high winds and strong waves caused seawater to flow into the warship, flooding the engines.

76 of the ship’s 105 personnel were rescued, 24 bodies were found, and five that were missing were later declared presumed dead.

• Budget bill sails through its first reading in the House

The House of Representatives passed the first reading of the budget bill for the 2024 fiscal year tonight, after three days of debate. The bill was approved by 311:177 votes, with four abstentions.

After the successful first reading, Prime Minister Srettha Thavisin thanked all MPs, from both sides of the house, and promised to spend the budget wisely and effectively.

He also said that the government will consider the recommendations made during the debate by opposition MPs.

• Leadership of Thai budget review panel may go to Commerce Minister Phumtham

Commerce Minister Phumtham Wechayachai will likely chair the House committee tasked with reviewing the government’s 3.48-trillion-baht budget after it sailed through the first reading.

The three-day House of Representatives debate on the bill concluded with a 311:177 vote, with four abstentions.

The budget review committee comprises 72 members, of whom 18 are Cabinet members. The remainder are leading opposition party Move Forward (16), coalition leader Pheu Thai Party (15), Bhumjaithai (8), Palang Pracharath (5), United Thai Nation (4), Democrat (3), and smaller parties (3).

Prominent members of the committee include former finance minister Kittiratt Na-Ranong, current Deputy Finance Minister Julapun Amornvivat, Move Forward deputy leader Sirikanya Tansakul, Move Forward party-list MP Wayo Assawarungruang and Deputy Interior Minister Chada Thaiseth.

This will be the first time for anyone other than the country’s finance minister to chair the committee if the job is given to Phumtham.

Prime Minister Srettha Thavisin holds the Finance portfolio.

Apart from holding the Commerce portfolio, Phumtham also doubles as deputy prime minister.

The panel will be in charge of reviewing and amending the bill before sending it to the House for a second reading. It will hold its first meeting at 1.30pm on Monday.

This year’s budget, worth 3.48 trillion baht, is 9.3% or 265 billion baht higher than that of the previous year.

Before the Parliament began voting for the bill, Srettha explained that the legislation follows the “four up and one down” principle.

The “four up” stands for an increase in investment funds, an augmentation of the budget, a boost in the treasury reserve, and a rise in revenue, while the “one down” aspect signifies a reduction in the government's deficit.

However, opposition parties slammed the bill, with Move Forward leader Chaithawat Tulathon calling it “old wine in a new bottle”. The opposition leader said the new budget bill is no different from the one put forward by 2014 coup leader General Prayut Chan-o-cha’s government.

Chaithawat also pointed out that the new budget bill lacks clear objectives and is fairly unreasonable.

Separately, despite the opposition’s united stance against the bill, three MPs from Thai Sang Thai surprisingly voted in favour of the government. This prompted a public apology from Thai Sang Thai leader Sudarat Keyuraphan.

The party’s secretary-general Takorn Tantasith stepped down to take responsibility for the wayward voting.

• Paetongtarn, Cholnan in Roi Et to launch expanded 30-baht healthcare scheme

Pheu Thai Party leader Paetongtarn Shinawatra, accompanied by Public Health Minister Cholnan Srikaew, visited Roi Et province on Sunday to initiate an extended version of the 30-baht universal healthcare scheme.

The extended version of the scheme, known colloquially as the gold card, was launched as a pilot project on Sunday in four provinces: Roi Et, Phetchaburi, Narathiwat and Phrae.

A flagship election campaign policy of the Pheu Thai Party, the “30-baht healthcare for treatment anywhere with one ID card” offers an innovative approach to the universal healthcare scheme.

Under the extended version, those eligible for free universal healthcare can receive treatment outside the hospitals they are assigned to, but still within the same province. The pilot project aims to alleviate congestion at public hospitals and reduce travel costs for those in need.

Accompanying Paetongtarn and Cholnan were other prominent figures like PM’s secretary-general Prommin Lertsuridej, Public Health Ministry’s permanent secretary Dr Opas Karnkawinpong and secretary to the national health committee Dr Surapong Suebwonglee as well as many Pheu Thai MPs.

The four provinces were chosen for the pilot project because they are 100% ready to link the healthcare information of provincial residents across all levels of health service units within the province.

The implementation of the Provider ID system for medical personnel also enables them to issue electronic health records and digital medical certificates.

The Provider ID system facilitates the issuance of universal healthcare recipient rights, allowing individuals to receive treatment from various healthcare units, including health clinics, dental clinics, laboratories, and private pharmacies that have joined the programme.

The extended version also introduces the use of the Mor Prompt app, enabling patients to access their health and treatment records, schedule appointments, request telemedicine and avail the health rider services for medicine delivery.

Paetongtarn, deputy chair of the healthcare development committee, inspected the readiness of the one-ID healthcare system at Chaturaphak Phiman District Hospital, where she also greeted patients.

In a speech to officials at the hospital, Paetongtarn commended them for their efforts in advancing the 30-baht universal healthcare initiative launched 22 years ago by the Thai Rak Thai government led by her father, Thaksin Shinawatra.

Cholnan said the extended healthcare system is a promise delivered by Pheu Thai within the first 100 days of its government. He said in the second phase, the project will be expanded to another eight provinces in March, including Phetchabun, Nakhon Sawan, Singburi, Sa Kaew, Nong Bua Lamphu, Nakhon Ratchasima, Amnat Charoen, and Phang Nga.

The third stage aims to cover all provinces nationwide within a year, he added.

After the kick-off ceremony, Paetongtarn’s delegation visited pharmacies, private health clinics and dental clinics to assess their readiness before the official linkage at 5pm.

Paetongtarn will also make a formal announcement of the launch of the project at 5pm from the main grounds in Roi Et’s Muang district.

"30-baht Plus" health care scheme to start in eight more provinces in March

• Senate to vet budget bill in parallel with House panel

The Senate will set up a special committee to vet the budget bill in parallel with the House budget panel instead of waiting for the House to pass the bill to the upper chamber.

Senator Lertrat Ratanawanit said the Senate will set up a 46-member budget panel, which will start meeting on January 15 and work in parallel with the House panel.

The fiscal 2024 budget bill was passed in the first reading by the House last week and a special House panel was set up to vet it.

Lertrat said the bill is scheduled to be approved in final readings by the House in early April and the Senate is scheduled to finish its deliberations by April 10 before the bill is sent for royal endorsement on April 17.

He said that because this timetable would give the Senate only six or seven days to study the bill, it would work in parallel with the Houe to study the bill in advance.

Lertrat said the special Senate budget panel will have both senators and specialist outsiders as members.

Lertrat noted that the bill would seek investment allocations for just 20% of the overall budget, which he said would not be sufficient to tackle the economic crisis.

Senate to vet budget bill in parallel with House panel

Senator Sathit Limpongphan said the Pheu Thai-led government did not include key policies in projects to be financed by allocations of the fiscal 2024 budget bill.

Sathit said he estimated that the allocations sought would not boost the country’s GDP to grow by at least 5%, a minimum requirement for Thailand to reach the status of a developed nation by 2037.

“The budget bill doesn’t show any potential for the requested budget to contribute to economic recovery and growth,” Sathit added.

• Council of State sanctions Bt500 billion loan bill to fund 'Digital Wallet' with three conditions

The Council of State says the government can proceed with promulgating a loan bill to borrow Bt500 billion to fund the digital wallet scheme, Deputy Finance Minister Julapun Amornvivat said today.

He said the Council ruled that the cabinet and the digital wallet policy committee are authorised to implement the digital wallet scheme through such a bill.

He noted that the council had, however, warned that the government must strictly comply with the Fiscal Discipline Act, citing Section 53, which states that a loan bill can be issued only when there is a crisis or an urgent necessity, and Section 57, which states that the borrowing must be spent on a plan or project which is economically or socially worthwhile.

He also said that the council stated that the government must gauge the views of all stakeholders or hold public hearings.

Despite these three caveats, Julapun said he believes that the digital wallet scheme should be implemented, as the economic situation is fragile. People in general are suffering economic hardships and are expecting an economic stimulus package from the government.

“For the time being, no one can say with certainty that the country is actually in economic crisis or not,” said Julapun, adding that the Finance Ministry and the digital wallet committee must come up with a “scientific answer” to the economic situation in Thailand.

• Council of State refutes minister’s claim, says no go-ahead for digital wallet yet

The Council of State’s secretary-general rejected claims that the government’s advisory board has given the go-ahead to legislation allowing a 500- billion-baht loan to finance the digital wallet scheme.

Pakorn Nilprapunt, secretary-general of the Council of State office, told reporters on Tuesday that the council’s response to the Finance Ministry was confidential and only the ministry could disclose the details.

“However, it definitely does not contain any indication of a 'greenlight’,” Pakorn added.

He was apparently responding to a claim by Deputy Finance Minister Julapun Amornvivat, who said on Monday that the Council of State has endorsed the government’s plan to enact a bill to borrow 500 billion baht and the scheme would kick off on May 1.

Julapun’s statement contradicts reports posted on several websites and television stations that the Council of State had advised against the enactment of the bill to borrow 500 billion baht to finance the digital wallet scheme.

Pakorn explained that the Council of State had only based its reply on a legal technicality as it primarily serves as a legal advisory body.

He said the council focused on the legal provisions of Article 53 of the 2018 State Fiscal and Financial Discipline Act.

“We simply stated what conditions under Article 53 are. The conditions will tell which ware emergency cases,” Pakorn added.

He said relevant government agencies should evaluate whether the proposed 500 billion baht borrowing aligns with the conditions specified in Article 53.

“If the ministry asks whether the government can enact a law to borrow money to resolve the country’s crises, we will say it can. But it will depend on the government to decide whether it should enact it as a bill or a decree, as both tools are law. That’s it, nothing more,” Pakorn said.

As for whether the Council of State had given any advice to the government, he said: “Nothing at all. We just explained Article 53 and said the government should listen to the opinions of government agencies concerned, and there must be clear information to substantiate [the claim of economic emergency situation]”.

When asked what the government should do if the council did not provide advice, Pakorn said the council comprises legal experts who cannot give any advice on subjects that require “scientific data”.

“But if the government follows our advice, it will be safe,” Pakorn added.

He also said that the Council of State could not provide opinions on economic matters, only legal considerations.

Responding to inquiries about the safer option between an executive decree and a bill, Pakorn said either would be fine as long as the government adheres to the conditions outlined in the Financial Discipline Act.

Council of State denies approving loan bill to fund digital wallet

• Government in difficulty over loan bill for digital wallet scheme

Senator Tuang Untachai said today he wonders how the government can tell the Thai people that Thailand is currently in a crisis, to justify a loan bill to fund its digital wallet scheme, while Prime Minister Srettha Thavisin, during his recent overseas trips to woo foreign investors, was telling foreign investors that the Thai economy is healthy.

After the Council of State made its legal observations about the plan to issue a loan bill, for the 500 billion baht needed for the digital wallet scheme, Tuang said that the government should now be aware that it will be very difficult to press ahead with such a funding method.

He recalled that the previous Abhisit and Yingluck governments had tried to issue similar bills to borrow for its major projects, but they ended up in the Constitutional Court which ruled against such bills.

If the government goes ahead with the loan bill, he said someone will inevitably take the matter to the Constitutional Court and it will probably suffer the same fate, said Tuang.

The senator said he has sympathy for the government, because it has promised the people that each of them will receive 10,000 baht from the scheme, but now it may not be able to realise the scheme and may try to find a soft landing.

Regarding the council’s response, Tuang said, in the past, the council had never given a binary answer as to whether a project can be done or not, but has made legal observations, leaving it to the government to judge whether to proceed with such project.

• Agricultural land title deeds to be offered to farmers on January 15

A total of 25,000 agriculture land title deeds will be offered to farmers nationwide on Monday (January 15), Agriculture Minister Thamanat Prompow confirmed on Wednesday.

Some 1,000 deeds will be offered during the programme’s launch at the Centre for the promotion and development of additional careers outside of agriculture in Ayutthaya's Bang Sai district. Prime Minister Srettha Thavisin will preside over the event.

The remainder will be offered at Pirunraj Agricultural Centres nationwide.

This move is a part of the policy to change Sor Por Kor 4-01 documents into agricultural land title deeds to offer more benefits to farmers who have rights to government land.

Eligible farmers were invited to register for this change via the Agriculture Land Reform Office (ALRO) nationwide or the agency's website from November 15 last year. The office will gradually change documents from January 15 onwards.

As many as 1.62 million farmers are eligible for the programme.

The benefits farmers will obtain from land title deeds are:

▪︎ Land can be transferred wholly or partly to ALRO or among eligible farmers.

▪︎ Land can be used as collateral for loans or by persons entering the judicial process.

▪︎ Farmers can generate more income by growing valuable plants or selling carbon credits.

▪︎ Farmers can receive government support for the development of infrastructure and utilities, as well as compensation for disasters.

"Changing Sor Por Kor 4-01 documents into agricultural land title deeds aims to increase benefits from owning land, and allow farmers to use it as collateral when asking for loans from financial institutions," Thamanat said.

ALRO and the Agriculture Ministry say the programme will help stimulate the grassroots economy and boost income among farmers and other citizens.

• PM signs Move Forward Party’s draft on Clean Air Act

Prime Minister and Finance Minister Srettha Thavisin on Thursday signed the draft of the Clean Air Act proposed by a task force of the Move Forward Party while he was visiting the government’s transport projects in Chiang Mai province.

After the draft was signed by the premier at the Royal Thai Air Force’s Wing 41 base in Suthep district, the task force said it would forward the document to Parliament for the next step in deliberating on the law aimed at ensuring people’s right to clean air and reducing PM2.5 air pollution from various sources.

Originally Posted by S Landreth

Prime Minister and Finance Minister Srettha Thavisin on Thursday signed the draft of the Clean Air Act

After the draft .

looks like he let one go as he was signing

• Nakhon Si Thammarat MP red-carded for buying votes

The Election Commission (EC) has given Nakhon Si Thammarat’s Constituency 8 MP Mukdawan Leungsinin a red card, withdrawing her election rights and banning her from politics, a news source said on Thursday.

The commission ruled that Mukdawan was guilty of paying supporters to vote for her in the May 14 general election at 500 baht per person, totalling 25,000 baht.

Mukdawan won over Democrat candidate Punsiri Boonyakiat and contributed one MP seat to the Bhumjaithai Party, a coalition member, which won 71 seats nationwide in the general election.

Since Mukdawan has already been sworn in as an MP, the EC has ordered her to stop all her duties until the Supreme Court pronounces its verdict on her case. Normally, red-carded individuals are banned from politics for 10 years, the source added.

The election watchdog also ordered Mukdawan to pay for the by-election to elect a new MP in her place.

The Democrat Party dominated the southern province in last year's election, winning in six out of 10 constituencies of Nakhon Si Thammarat. Bhumjaithai won two seats, while Palang Pracharat and United Thai Nation parties won one MP seat apiece.

Mukdawan is the first MP to be red-carded by the EC in the 2023 election. The EC previously said it received complaints in 71 constituencies but did not have enough time to investigate all the cases before the swearing-in of MPs, which must take place 60 days after an election.

The EC however has one year, or until May 2024, to investigate the complaints and submit its ruling on those suspected of breaking election laws to the court.

• Thailand well on the way to becoming EV manufacturing hub: PM

Prime Minister and Finance Minister Srettha Thavisin is confident in Thailand’s potential to become a regional hub for electric vehicle (EV) manufacturing and other industries related to the EV ecosystem, government spokesperson Chai Wacharonke said on Monday.

Chai quoted Srettha as saying that Thailand has the advantage of a comprehensive supply chain, infrastructure as well as supporting policies that will help boost the country’s EV manufacturing and export to global markets.

He also cited statistics from the Board of Investment of Thailand (BOI), which so far has approved investment privileges to 16 manufacturers of battery electric vehicles (BEVs), with a combined investment value of over 39.5 billion baht.

These companies include existing Japanese automakers in Thailand who are transitioning from internal combustion engines to EVs, and new manufacturers from Europe, China, and other countries, he said, adding that most of these manufacturers are currently setting up their factories in Thailand and are slated to commence operations this year.

Chai noted that BOI has also granted promotions to 17 manufacturers of EV batteries, 14 manufacturers of high-density batteries, and 18 manufacturers of EV components with combined investment values of 11.7 billion baht, 12 billion baht and 5.97 billion baht respectively.

For EV infrastructure, the BOI has approved investment privileges for 11 companies to establish EV charging stations in Thailand, with a combined investment value of over 5.1 billion baht.

Chai said the government is working with the BOI to attract more EV manufacturers to invest in Thailand, especially those from the US, Europe and South Korea.

“The Prime Minister has been leading Thai representatives to meet major manufacturers overseas to demonstrate Thailand’s potential as an EV hub in the region,” said Chai. “Meanwhile, the government also continues to promote the use of renewable energy to further boost the EV market while also responding to environmental challenges.”

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• Ora Good Cat EV becomes first Chinese brand to be assembled in Thailand

Automaker Great Wall Motors (GWM) has started assembling the Ora Good Cat electric vehicle (EV) — the first Chinese brand to be made in Thailand — with the first units set to be delivered this month.

Prices for the models to be assembled in Thailand start at 799,000 baht.

Investment in EV production in Thailand has continued to expand, with the Board of Investment (BOI) having approved 23 EV projects from 16 companies. By 2030, electric vehicles are projected to account for 30% of the total vehicle production in Thailand, or approximately 725,000 units per year.

Currently, six Chinese EV companies with revenues ranking in the top 10 in China in 2022 have entered, or planned to enter the Thai market, with GWM announcing an investment plan of 22.6 billion baht for EV production, components, and EV infrastructure.

Industry Minister Pimpattra Wichaikul presided over the opening ceremony for the production line of the New GWM Ora Good Cat electric vehicle at the GWM plant in the Eastern Seaboard Industrial Estate, Rayong, on Saturday (January 12).

A report from the Board of Investment (BOI) indicated that Ora Good Cat would be the first Chinese brand to commence EV production in Thailand, in line with the government's EV 3.0 support measures.

Thailand is the first country outside China where Ora electric vehicles will be manufactured for the international market, making the kingdom an EV hub in ASEAN.

Additionally, starting from March, the company plans to use battery packs produced by the SVOLT battery factory, a subsidiary that has invested in and established a battery production facility in Thailand since July 2023.

A report from GWM stated that its plant in Rayong would produce three sub-models:

Pro priced at 799,000 baht; Ultra priced at 899,000 baht and GT priced at 1,099,000 baht.

These prices are lower than those of the previous models by 29,000 to 187,000 baht for each sub-model. The previous prices for the Good Cat were: 400 Pro - 828,000 baht; 500 Ultra - 959,000 baht; GT - 1,286,000 baht

The local production of Ora Good Cat in Thailand is a significant milestone for the Thai automotive industry and proof that Thailand is becoming a more attractive destination for EV production.

The local assembly of Ora Good Cat is also expected to help boost the Thai economy by creating jobs and generating revenue for the Thai government.

• Thai govt seeks Saudi investment to revive stalled potash mining projects

With Thailand’s three concessionaires facing setbacks in starting their potash mining projects, the government is exploring collaboration with Saudi fertiliser manufacturers to expedite the initiative.

Prime Minister Srettha Thavisin recently instructed the Industry Ministry to speed up potash mining projects after the concessionaires failed to kick off their mining operations despite holding concessions for many years.

Srettha noted that one of them has held the rights for eight years without progress, while the other two appear to have difficulties in securing funds for mining operations.

Meanwhile, Deputy Industry Minister Pimpatra Wichaikul told Krungthep Thurakij recently that her ministry had invited Saudi investors interested in potash mining to visit Thailand next month to assess the prospects.

The current potash mining concessions were given to three companies after their environment impact assessment studies had been approved by the Policy and Planning Office of the Natural Resources and Environment Ministry.

The concessionaires are:

• Asean Potash Chaiyaphum Plc: It is allowed to mine in Chaiyaphum’s Bamnet Narong district
• Asia Pacific Potash Corporation: It is allowed to mine in Udon Thani
• Thai Kali Co Ltd: It is allowed to mine in Nakhon Ratchasima’s Dan Khunthod district.

A reliable source from the Industry Ministry revealed that Thailand is believed to possess the fourth-largest potash reserves globally, approximately 100 billion tonnes, after Canada, Belarus and Germany.

Two areas in Thailand are richest in potash, namely:

• Sakhon Nakhon Basin, encompassing Sakhon Nakhon, Nong Khai, Udon Thani and Nakhon Phanom provinces
• Korat Basin, covering Khon Kaen, Kalasin, Mahasarakham, Roi Et, Yasothon, Ubon Ratchathani, Si Sa Ket, Nakhon Ratchasima and Chiayaphum

Fertiliser shortages during the Covid-19 pandemic pushed up the prices to unprecedented levels, prompting Srettha to call for the concessionaires to speed up their operations. If the current concession holders continue facing challenges with funding, the Industry Ministry may consider issuing concessions to new firms.

Pimpatra said Saudi Arabia had expressed interest in Thailand’s potash mining projects while she was attending the Future Minerals Forum in Riyadh from January 9 to 11.

She said she briefed the Saudi industry minister about potash mining in Thailand, as well as the estimated amount of the mineral and by-products from mining.

She said Saudi Arabia was very interested in mining for potash in Thailand to complement its own urea mines.

Potash is a key ingredient for making fertiliser because it is the third major plant nutrient after nitrogen and phosphorus.

“Saudi authorities asked a lot of questions, including the expected potash reserves and by-products of mining,” Pimpatra said. “Thailand will be happy if Saudi Arabia invests in potash mining.”

She added that Saudi Arabia could use Thailand as a base for making fertiliser to export to other Southeast Asian nations.

The minister added that since Saudi already exports nitrogen and phosphorus, it could use potash produced in Thailand to strengthen and complement its fertiliser industry.

• Pheu Thai’s promise comes true with distribution of 25,000 land deeds to farmers

Agriculture Minister Thammanat Prompao oversaw the distribution of the first 25,000 title deeds to farmers in 57 provinces on Monday.
This distribution marks the fulfilment of one of the Pheu Thai Party’s election campaign promises, aiming to convert non-tradeable farmland under Sor Por Kor 4-01 documents into special title deeds that can change hands and be used as loan collateral.

Thammanat, accompanied by Deputy Agriculture Minister Chaiya Promma, went to the Bangsai Arts and Crafts Centre in Ayutthaya province to personally hand out title deeds to 1,000 recipients. The recipients were selected from 11 provinces.

Similar ceremonies were held simultaneously in the remaining 56 provinces.

The ceremony commenced with a pre-recorded video speech from Prime Minister Srettha Thavisin, who is on an official trip to Switzerland.

Congratulating farmers who received the title deeds, Srettha emphasised the government’s commitment to enabling farmers to use their farmland as assets for obtaining loans and ultimately enhancing their career and life security.

He said he hoped to see farmers leverage the special title deeds to secure loans, promoting long-term farm development for an improved quality of life.

Similar to standard title deeds, those designated for agricultural purposes can change hands on condition that the buyers are farmers certified by the Agricultural Land Reform Office.

The title deeds can also be used as collaterals for loans from the Bank for Agriculture and Agricultural Cooperatives or other state banks.

The government also plans to negotiate with other financial institutions to accept the special deeds as collaterals.

Moreover, these title deeds can serve various purposes, including acting as collateral for the temporary release of criminal suspects. They can also be employed as documentation for farmers looking to sell carbon credits for trees planted on their land.

Addressing the recipients, Thammanat expressed happiness at seeing his dream to help farmers come true. He acknowledged the collaborative efforts of the two deputy ministers along with ministry officials and other government agencies.

Thammanat said Ayutthaya was chosen as the ceremony location because it is the ancient capital of Thailand and holds a rich history intertwined with the country’s farming heritage.

The minister said he hoped to see a three-fold improvement in farmers’ lives during his four-year tenure.

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• Thailand is joining OECD

Thailand has submitted a letter of intent to join the Paris-based Organization for Economic Cooperation and Development (OECD), according to a highly placed source.

The Cabinet recently approved the letter of intent, paving the way for Thailand to begin negotiations with the Organization for Economic Cooperation and Development, the source said. In Davos, Switzerland, during the scheduled meetings between Prime Minister Srettha Thavisin and OECD Secretary General Mathias Corman, the membership negotiation will be at the top of the agenda.

After the submission of the letter, the approval process is expected to take 5-7 years. Japan and South Korea are the only two Asian permanent members of the organization of developed countries.

The OECD is an international organization with 38 member countries founded back in 1961 to promote economic progress, world trade, and good governance. Thailand and the OECD have very close ties with the ongoing Phase 2 country program, which aims to assist Thailand in proceeding with reforms and moving closer to OECD overall standards.

According to the source, Phase 2 is made up of 20 projects organized under four key pillars: 1) good governance, 2) business climate and competitiveness, 3) social inclusion and human capital development, and 4) green recovery.

Indonesia submitted the letter of intent last year. Among the ASEAN members, both countries have been more enthusiastic about joining the OECD as the most efficient way to increase confidence among foreign investors and promote economic standards.

Originally Posted by S Landreth

Prime Minister Srettha Thavisin recently instructed the Industry Ministry to speed up potash mining projects after the concessionaires failed to kick off their mining operations despite holding concessions for many years.

Srettha noted that one of them has held the rights for eight years without progress, while the other two appear to have difficulties in securing funds for mining operations.

so these investment opportunties aren't that great judging by the above, what can we do?

Originally Posted by S Landreth

With Thailand’s three concessionaires facing setbacks in starting their potash mining projects, the government is exploring collaboration with Saudi fertiliser manufacturers to expedite the initiative.

Hmm set backs.... i know, those Alabs have loadsamoney lets persuade them to invest in a project no one else wants now we've put that little jewellery misunderstanding behind us

Originally Posted by malmomike77

so these investment opportunties aren't that great judging by the above, what can we do?

Advertise.

Might not be able to convince any responsible contractor, but it’s an attempt.

• House passes seven clean air bills in their first readings

Following their debate yesterday, the House of Representatives passed seven air cleanliness bills in their first readings, by 443 votes with one abstention.

The seven bills were proposed by government and opposition parties and a civil society organisation.

A 39-member committee, comprised of both government and opposition MPs, was set up by the House to scrutinise all the seven bills, with the government-sponsored version to be used as the basis.

After the completion of the scrutiny process, the seven bills will be merged into one and then submitted to the House for the second and final readings.

The government-sponsored bill seeks the creation of an air cleanliness policy committee, to be chaired by the prime minister, which will be tasked with drawing up a master plan for clean and safe air and setting out economic, financial and tax measures in the management of air quality.

The bill also seeks to impose penalties on polluters, including 50,000 baht fines for those who cause air pollution and those who burn waste outdoors.

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• Commerce Ministry to boost rice exports

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai is aggressively promoting the sale of rice, leading the way with a government-to-government deal of 1 million tonnes with Indonesia, as well as another 1 million tons with the private sector.

The aim is to achieve total exports of no less than 8.5 million tons by the end of this year.

The Commerce Minister expressed concern about the perception of government-to-government sales, fearing that people may cling to the old image of the government selling rice at low prices. However, he urged a fresh perspective, as the state will now act as a guarantor for both government and private sector sales. Furthermore, negotiations for rice sales with other countries, such as Saudi Arabia, Africa, and Iran, are also in the pipeline.

Phumtham will be in the US from today (January 17) until January 22 to negotiate the expansion of the rice market, promote trade and investment relations and seek new rice importers in the U.S. market.

From January to November last year, Thailand exported 7.94 million tonnes of rice, a 14.7% increase from the same period the previous year. The value of these exports amounted to 159.55 billion baht, marking a 28.9% increase.

Thailand's top rice export markets were Indonesia with 1.27 million tonnes, followed by Africa with 876,184 tonnes, Iraq at 814,805 tonnes, the US at 648,946 tonnes and China at 367,204 tonnes.

Originally Posted by S Landreth

has announced its transformation into an electronic department this year, Krungthep Thurakij local news media reports.

Whatshername went to the site mentioned above and read it.

What they are announcing is…..

Originally Posted by S Landreth

By early 2024, it will expand to 11 more offices in 9 countries and support an additional 15 languages to accommodate global embassy coverage.

Nothing more. No changes to the consular's office where you received your last e-visa.

• Court orders government to form urgent plan to address PM2.5

The Administrative Court in Chiang Mai today ordered Prime Minister Srettha Thavisin and the National Environment Board to draw up an emergency plan within 90 days, to deal with PM2.5 pollution problem in northern provinces and to develop short- and long-term plans to deal with it.

The court’s ruling marks a rare victory for civil society in the northern region, putting pressure on the government to take concrete action to deal with PM2.5 pollution, which has been a threat to the health of people in the region for many years.

In the ruling, the court said that it had received information from several state agencies, among them the Geo-Informatics and Space Technology Development Agency and the Pollution Control Department, stating that the levels of PM2.5 in the atmosphere in numerous northern provinces, including Chiang Mai, Chiang Mai, Mae Hong Son, Nan, Lampang, Lamphun, Sukhothai and Phitsanuloke, has exceeded 100 microns per cubic metre during the dry season since 2017.

The information obtained from the Faculty of Medicine at Chiang Mai University also shows that more people are falling ill due to the effects of PM2.5 since 2018.

The court noted that neither the prime minister nor the National Environment Board have called urgent meetings to address the problem since 2017.

The prime minister, during most of that period, was General Prayut Chan-o-cha.

• Thai PM stays busy in Switzerland

Thai Prime Minister Srettha Thavisin has kept Thais well-informed about his activities in Switzerland through numerous messages on his X account. He left Thailand for Davos to attend the World Economic Forum (WEF) on Monday and, as of Thursday, had posted nearly 20 messages and images.

In the messages, he shared details of his discussions with other guests, including executives of international organisations and companies, as well as leaders of participating countries, on the side lines of the WEF meetings.

Srettha promoted his government’s ambitious “land-bridge” mega project, in southern Thailand, as a major selling point. Notably, one of his key conversations on this matter was with top executives from the Adani Group, a prominent Indian firm specialising in port and airport development, who expressed interest in the project, he said.

He mentioned that Dubai Port World, an Emirati multinational logistics company, also wants to visit the site and study the details of the project soon.

Another of the highlights was a meeting with Microsoft co-founder Bill Gates, who was also in Davos to attend the WEF.

“My hope is to have a mega company invest and open a data centre in Thailand, to make it a regional data centre. Therefore, I would not miss an opportunity to present Thailand’s potential and the possibility of opening a Microsoft data centre in Thailand to Gates,” he wrote.

His trip to Davos ends tomorrow and and it is certain that he will write more X messages to keep Thais informed before returning home.

_________

• PM holds bilateral meetings with EU on economic cooperation

Prime Minister and Finance Minister Srettha Thavisin on Thursday attended bilateral meetings with European Union representatives and business leaders on the sidelines of the 54th World Economic Forum (WEF) in Davos, Switzerland, to discuss economic cooperation in Thailand and overseas.

The Davos 2024 event started on Monday and will conclude today (January 19).

According to a Thai government press release, on Thursday morning Srettha met with Ursula Von der Leyen, president of the European Commission at the Congress Centre in Davos. Both parties exchanged views on the conflicts and unrest in various parts of the globe and emphasized the importance of promoting positive relationships and connectivity among countries at the government, economic, and community levels.

The Thai PM and EC president also agreed to continue negotiating more free trade agreements (FTAs) between Thailand and members of the European Union to boost international trade.

Srettha’s next meeting was with Christian Fischer, deputy chairman of the board of management at Robert Bosch, a world leader in automotive, industrial, building and energy technology, and consumer products with a presence in 60 countries.

Srettha and Fischer discussed investment opportunities in Thailand in both automotive and non-automotive industries. The company is interested in establishing manufacturing facilities in Thailand to export products to countries in the Southeast Asian region and Japan.

Srettha invited Bosch to set up a regional headquarters in Thailand and promised to provide supporting measures, especially in the industries related to electric vehicles.

Next on Srettha’s meeting schedule on Thursday was Ruth Porat, chief financial officer of Alphabet, the parent company of Google.

Topics discussed included Google’s investment in the cloud centre business in Thailand and the use of technology to improve public health services and boost the income of Thai farmers. The company highlighted the importance of technological advancement that would benefit everyone in society under the government’s “Leave no one behind” policy.

Srettha’s last meeting was with Remy Ejel, chief executive officer for Asia, Oceania and Africa at Nestlé, the world’s largest food and beverage company with factories around the world, including in Thailand.

After the meeting, Srettha said that after operating in Thailand for several years, Nestlé has expanded to the animal feed business and will continue to use Thailand as a hub for manufacturing and exporting, thanks to the advantages of its location and logistics.

The Nestlé CEO pointed out obstacles in Thailand’s import and export sector, noting that the existing FTAs with trade partners were not comprehensive enough, as well as the overlapping customs procedures.

Srettha promised the government’s full efforts to improve the ease of doing business for foreign companies, including the use of a single-form system among import-export authorities and the Board of Investment (BOI).

• Industry Ministry affirms Phang Nga can produce 14.8 million tonnes of lithium

The Industry Ministry has affirmed that two large prospective mineral sites in Phang Nga province could produce up to 14.8 million tonnes of lithium, which would support Thailand’s goal to become an EV hub of the region.

Radklao Inthawong Suwankiri, a deputy government spokeswoman, said the Industry Ministry had confirmed the capacities of the Ruangkiat and Bang Etu sites in Phang Nga.

Lithium mineral is the key component for making batteries for electric vehicles and the EV batteries are known to be a major cost for the production of EVs.

Radklao said the finding of high lithium content in Phang Nga makes Thailand the country with the third largest lithium resources after Bolivia and Argentina.

Moreover, she said, a large resource of sodium has been found in the Northeast of Thailand. Sodium could also be used in making cheaper version of EV batteries.

The finding of large resources of lithium and sodium has boosted Thailand’s readiness to achieve its goal of becoming an EV hub for the Southeast Asia, the spokeswoman added.

She said the large resources of lithium would convince more EV manufacturers to use Thailand as their manufacturing base for exports.

After several large Chinese EV manufacturers have agreed to set up EV factories in Thailand, the government of Prime Minister Srettha Thavisin is now courting Tesla to set up a plant in Thailand.

Two major lithium deposits discovered in Phang-nga province