10 July 2020
FPO notes signs of uptick, acceleration since April
After the government managed to keep the Covid-19 situation in Thailand under control since April, the nation’s economic sentiment recovery has gained steam, according to the Fiscal Policy Office (FPO).
Businesses across Thailand felt positive about the nation’s economic outlook. Even though the economy has not bounced back to pre-Covid-19 levels, it has bottomed out. According to the FPO’s Macroeconomic Policy Bureau, Thailand’s economic growth is expected to be seen on a quarterly basis.
Thailand’s bond market recovers as the the country’s Covid-19 situation is kept under control.
As Thailand is showing signs of containing the Covid-19 spread, investors are beginning to go back to the bond market. The Thai Bond Market Association said that signs of a bond market recovery have arisen as the country has kept the number of Covid-19 cases comparatively low.
Thai industrial investment tipped to recover strongly
The Industrial Estate Authority of Thailand (IEAT) said that investment in Thailand’s industrial estates will go back to normal after the Covid-19 era as many companies from China and Taiwan may relocate their production bases to Thailand due to the US-China trade war.
Relaxation of lockdown measures are expected to bring new investment in the estates. The IEAT has also launched campaigns to attract more investment to Thailand.
Business confidence perked up in June
On Thursday, the University of the Thai Chamber of Commerce (UTCC) reported that business confidence improved for the first time in June after 14 months, thanks to the relaxation of lockdown measures.
Business confidence is expected to improve if the government speeds up stimulating the economy as quickly as possible. According to the UTCC, spending in the first phase of rehabilitation budget is estimated to stimulate growth by 0.3-0.5% points.
9 July 2020
State agencies’ revenue near the target
State enterprises and agencies, which the Ministry of Finance own less than 50 percent stake, have contributed 156 billion Baht to the state revenue from October 2019 to June 2020. This makes up 83 percent of the total targeted earnings of 188 billion Baht.
Promoting Thailand as top food exporter
The Ministry of Agriculture and Cooperatives, together with the Federation of Thai Industries (FTI), agreed to promote Thailand as one of the world’s top 10 food exporters with the “Modern Industrial Agriculture” development model.
What’s in Thailand’s economic stimulus package?
The Cabinet agreed in principle to approve the first batch of economic stimulus projects under the 400-billion Baht emergency package. The cost of the first batch is 92.4 billion Baht. These projects aim to boost three areas: grass roots economy; sustainable development projects; and consumption and tourism.
The Cabinet has also agreed to allocate 15.5 billion Baht for five projects that are planned to create jobs and promote tourism.
The Coronavirus Redraws the Car Market’s World Map
The auto market in post-lockdown China shows a sign of recovering. In the United States, sales are reported to drop in the second quarter. Europe performs poorest in the global auto market.
8 July 2020
New regulations on tax collection in 5 businesses
Excise department is issuing new regulations deducting tax in 5 businesses to alleviate Covid-19 crisis
1. Tax on tobacco sales which is planned to increase to 60% will be postponed and remains at 40% until October 2021.
2. Tax on fruit juice sales will be reduced to 3% from 10%.
3. Excise tax on electric Tuk Tuk will be halved to 10%.
4. Tax exemption for goods sold at airport which now is tax free for items stored at shops for 15 days. The exemption period will be extended to 30 days.
5. Entertainment venues will benefit from tax waiver until September 2020.
Travel Bubble will be put on hold
Civil Aviation Authority of Thailand (CAAT) said that the travel bubble with low risk countries, China, South Korea and Japan will be frozen due to concerns about public safety.
Soft loans for SMEs
On Friday, 3 July, the cabinet discussed extending the soft loans to be more accessible for 3 million SMEs, including adding more than 500 million baht loan especially for SMEs.
The soft loan scheme is a two-year scheme. The central bank will charge 0.01% interest to commercial bank re-lending to SMEs, and the government will absorb interest costs for six months.
7 July 2020
Depa proposes 100 smart cities
The Digital Economy Promotion Agency (Depa) is aiming to turn 100 cities across nation into smart cities in two years.
Applications from 39 cities have already been submitted to The National Steering Committee on Smart City Development. If approved, these cities would be allowed to use the Smart City Thailand logo as well as apply for special investment privileges from Board of Investment.
Tax breaks to ease coronavirus stress
Ministry of Finance offers a tax deduction, tax waiver and postponing of tax raise.
Sales tax on tricycles electric has been halved to 2% and fruit and vegetable juices to 10 %. Tourism and hospitality industries are offered tax waiver until the end of September. Plan to increase tax on tobacco and cigarette sales will also be postponed to October 2021.
6 July 2020
Central bank not ruling out further easing
Bank of Thailand has cut the key rate three times recording the lowest at 0.05% in order to help the economic.
Monetary Policy Committee (MPC) told that the bank has not stop cutting the key rate yet but further cutting will affect in both positive and negative way and needed to be weighted by committee first.
Tourism aid to spur domestic spending
The 22.4-billion-baht in aid promotions will generate 30-50 billion in economy. It is forecast that 20 million Thais will travel domestically in the second half of this year. The package will encourage them to spend more than normal.