Navigating Thailand Towards the New Horizon

[snoop1130]

Numerous unprecedented business opportunities are emerging within the Thai economy that will further propel growth, persistent global challenges notwithstanding, said panelists at Thailand Focus 2023, the annual investment conference hosted by the Stock Exchange of Thailand (SET) during August 23–25, 2023.

 

The conference attracted over 200 global institutional investors from 96 leading institutions, as well as representatives from government, financial and capital markets, and senior business executives, both domestic and international.

 

 

In his welcome address, SET President Pakorn Peetathawatchai invited all participants to explore the “uncharted territories” at the 17th Thailand Focus, held under the theme of “The New Horizon,” and witness the continuing robustness of the Thai economy and capital market, which has rebounded and surpassed the pre-COVID era, thanks to strong macroeconomic foundations, advancements in technology, and evolutions in the financial landscape. 

 

 

In his opening address, SET Chairman Dr. Prasarn Trairatvorakul said the Thai economy presents numerous advantages including the robust and diversified existing sectors and new sectors for growth, as well as a strong culture and hospitality-driven tourism sector. This is reflected in the huge value of initial public offerings (IPOs) worth US$3.5 billion and secondary offerings worth US$3.8 billion in 2022, and more IPOs in the pipeline for 2023 and 2024. 

 

SET supports future growth with continuous infrastructure improvement, with Thai Digital Assets Exchange (TDX) and depositary receipts (DRs) for investment in global trading stocks. To demonstrate Thai companies’ efforts on sustainability, 26 companies are listed on the Dow Jones Sustainability (DJSI) and 42 on FTSE4Good indices, while SET itself is launching ESG instruments, the carbon market, and ESG rating, as profitability is no longer the sole measurement of success. 

 

“The ongoing global shift in supply chains presents certain opportunities. Thailand’s geographical location, infrastructure, and expertise in high-value sectors place it in a strategic position,” he said.

 

 

In the session titled “Laying the foundations for sustainable recovery,”

 

Bank of Thailand Governor Dr. Sethaput Suthiwartnarueput highlighted medium-term plans to get Thailand’s economic growth back to its long-term potential (3-4 percent, from 2.6 percent in 2022), keep inflation within the target range of 1-3 percent, and limit financial imbalances to lessen the chance of high debt and risk-taking activities that may be caused by the policy rate rise. 

 

He expressed concerns about household debt, which is “too high” at 90.6 percent of GDP and should be brought down to 80 percent or lower.

 

“We are now at a more advanced stage of normalization. As a result, our policy objective has changed – from trying to ensure a smooth take-off, now the focus is on getting the landing right,” he said.

 

 

In the following session, on “Thai capital market towards the new horizon,”

 

Federation of Thai Capital Market Organizations Chairman Dr. Kobsak Pootrakool expressed his confidence that Thailand’s massive investments in infrastructure, subways, ports, amongst others, would fuel economic growth, coupled with its standing in ASEAN. 

 

He urged the Government to come up with four sets of policies concerning: technology that supports Thailand’s ‘Soft Power’; building new industries on top of present strengths such as medical tourism, logistics, and digital animation; support for Thai companies’ expansion into the wider region; and refocusing infrastructure investments to particular areas such as the coastal areas, both eastern and western.

 

JP Morgan Asset Management Portfolio Manager Chate Benchavitvilai compared Thailand to an aging athlete that still can remain competitive if she knows how and where to compete and how to enhance the value of her strengths, which are focused on the services sector, such as medical tourism.

 

Likewise, concerning Thai listed companies, investors still see selective, not broad-based, opportunity sets. On the radar are companies that focus on sound investment choices, maximize returns, and prudent resource allocation, he said, adding that corporate governance (CG) is as important as profitability and business longevity when the companies interact with stakeholders. CG – fairness, transparency, and accountability – is more important than ever as more Thai companies invest abroad and seek to better allocate resources.

 

“This is not just about calling for better rules and regulations… but I believe it’s the responsibility of collective stakeholders to create the culture where we ask the right questions, to be more demanding than other stakeholders in order to capitalise on opportunities,” he said. 

 

On governance, Kiatnakin Phatra Securities PCL President Supachoke Supabundit said that both preventive and deterrent measures should be applied when handling wrongdoing.“On the preventive side, we cannot overreact because all preventive measures have costs,” he said, adding that Thailand needs to deter prohibited acts with effective, quick, and severe repercussions. The legal process should be expedited and punishment should be more severe. He cited KKP Research which compared that a person convicted of insider trading in the United States could receive up to 20 years’ imprisonment, whereas in Thailand, the sentence would be a maximum of two years.

 

 

During the session on “The next S-curve of Thai tourism,”

 

Airports of Thailand PCL (AOT) Executive Vice President Latchida Apaphant called for the Thai government to support expanding the main gateways and provincial airports as well as rail and road connectivity so as to promote travel in main and second-tier cities. Government support is also needed in expanding bilateral flight quotas with countries such as India and Saudi Arabia as well as data analytics to assist with planning. The AOT’s six airports accommodated more than 143 million visitors in 2019 and expected the numbers to surpass the pre-COVID era in 2024. 

 

BDMS Wellness Clinic Chief Executive Officer Dr.Tanupol Virunhagarun expressed confidence that Thailand would benefit from the boom in the global wellness economy following the rapid rise in non-communicable diseases, with various selling points like nature, food, hospitality, and medical infrastructure. When the global wellness economy hit US$4.9 trillion in 2019 (expecting to hit US$6.9 trillion in 2025), Thailand received 7.3 million inbound wellness trips and expenditure averaged US$15,054 in 2019. With wellness clinics at 50 hospitals, BDMS Wellness Clinic is on its path to being a jigsaw piece in stimulating Thailand’s medical tourism.

 

Designated Areas for Sustainable Tourism Administration (DASTA) Deputy Director-General Dr. Chuwit Mitrchob said Thailand places globally recognized sustainability standards like the UN’s Sustainable Development Goals and the Global Sustainable Tourism Council (GSTC) Criteria as top priorities, as the country targets 30 million inbound visitors and 200 million domestic trips in 2023, in line with global travellers’ willingness to pay more for sustainable options. Thailand’s Sustainable Tourism Management Standard, Sustainable Tourism Goals, and zero carbon application are also in place to ensure the sustainability of listed tourist attractions. 

 

During the Session, Electric Vehicle (EV) industries were also highlighted as another promising industry for Thailand, the largest auto exporter in ASEAN, and the 15th in the world. 

 

 

At the session titled “Benefits from supply chain relocation and renewed investments: EV industries,”

 

Thailand Board of Investment (BOI) Secretary-General Narit Therdsteerasukdi revealed that in the first half of this year, 891 applications for investment promotion worth US$10.72 billion* were submitted to the BOI, an 18 percent increase from the same period last year, thanks to relocations in light of geopolitical risks. While big names including Pringles and Agoda are among the newcomers, in total, 80 projects worth US$577.32 million* belonged to the auto industry. 

 

In the EV arena, investors granted approvals in the past three years included the projects of automakers MG, Great Wall Motor, and BYD,and 13 battery-manufacturing projects.

 

He foresees a bright outlook for EV, given the initiatives to introduce the complete ecosystem for all types of EVs from parts, components, batteries, and charging stations to swapping stations as well as subsidies for domestic sales, which has boosted the number of registered EVs to more than 70,000 as of June 2023.

 

“Thailand is the right place for EV in the next decade,” he said. 

 

Pratarnporn Phornprapha, Vice Chief Executive Officer, Rever Automotive Co., Ltd. – the sole distributor of BYD in Thailand – said her company sold 22,000 EVs in 2022 and expected to close 2023 with a 400 percent-plus increase as global EV market will grow 30 percent to 14 million units. She attributed the brisk sales to government subsidies, consumers’ commitment to help fight climate change in light of natural disasters globally, as well as persistently high oil prices.

 

 

In the following session: “The potential of Thailand’s thriving Soft Power,”

 

Narun Wiwattanakrai, Chief Marketing Officer, Siam Wellness Group PCL a company which has operated the spa business for 25 years, stressed the importance of unique concepts, deeper customer experiences, and varieties of services to remain appealing to both local and foreign customers. At present, foreign customers contribute toward 60 percent of the company’s revenue, and the group eyes further expansion through joint ventures and partnerships. At the end, Narun expressed his wish that Thai massage, listed as one of the Intangible Cultural Heritage of Humanity by UNESCO, lives up to its standards and become more famous globally. 

 

S&P Syndicate PCL Chief Executive Officer Vitoon Sila-On attributed S&P’s five-decade-long success story to authentic ingredients and readiness to adjust operations to suit customer preferences. Wherever it goes, menus are designed according to customer research, and adjustments are considered based on customer feedback. Looking forward, Thailand’s food industry could benefit from improvements in the ecosystem that encompasses standards, and an academy for training chefs.

 

Global Sport Ventures Chief Executive Officer and Co-founder Thainchai Pisitwuttinan charted an active plan to make Rajadamnern Stadium the global Muay Thai hub. The stadium business, consisting of ticketing, food & beverages, and merchandising, now earns 80 percent of revenue from foreigners, drawn to the Stadium by Muay Thai’s core identity and its architectural appeal. Growth is expected once the museum and training academy are completed, along with minor changes — including easier-to-understand rules and an open scoring system — that will make Rajadamnern a world-class stadium where people can come and learn about the globally-renowned sport.

 

 

For the final session, on “World-class practices in sustainability,”

 

Thai Union Group PCL (TU), SCG Group, and PTT Global Chemical PCL (PTTGC) showcased their sustainability initiatives that will not only help the environment, but also ensure sustainable growth for their companies. 

 

TU Chief Sustainability Officer Adam Brennan described the SeaChange 2030 Strategy that binds the US$200 million investment over an eight-year period to “bring unified solutions for people and the planet.” The strategy is shaped around the group’s commitment towards net zero emissions by 2050, reduction in ocean plastics, ecosystem restoration, and responsible wild-caught seafood. That demands engagement through NGOs with all vessels in the supply chain, outsiders, and global universities. 

 

At SCG Group, ESG4Plus is the mantra, to achieve net zero emissions, green products and production processes, reduced inequality, collaboration, and eventually trust through transparency in all operations. According to SCG Group Chief Sustainability Officer Chana Poomee, the transition can be faster with the introduction of low-carbon technology and improvement in ESG standards. 

 

SCG Group has joined a public-private sandbox project in Saraburi province where initiatives are tested to improve cross-ministerial cooperation and prepare Thailand for the green funding pool offered by developed-country partners. 

 

PTTGC Executive Vice President – Sustainability Dr. Chaya Chandavasu said ESG has been integrated into the company’s operations for 10 years, and climate change has been the company’s emphasis. PTTGC has set out to achieve net zero emissions by 2050, and short-term, medium-term, and long-term processes have been laid out. Investors can lend support through financial products for ESG investment that help companies achieve smooth transitions and engagement with ecosystem improvements.

 

“Hydrocarbons will stay for a long time, but we have to find ways to reduce emissions.” Due to carbon offsetting, PTTGC is eyeing the adoption of carbon capture, storage, and utilization, he said.

 

Full story: THAILAND NOW 2023-09-26

 

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[retarius]

Well here's me thinking a horizon is a horizon is a horizon......but apparently no, there's a new horizon now. Maybe the horizon has moved further away that it used to be, or nearer than it used to be, or maybe it is on an angle now. 

Maybe it is me, but seriously what is this BS? It's a nonsense wrapping in a stupidity covered up with meaningless buzz words. If this is really the plan what hope is there? In my day, plans had actions clearly defined and metrics to measure them. Critical actions had peoples' names next to them to denote who was responsible for completing the action with a d ate by which they had to be completed. eg 'Household debt is too high and should be brought down'. Without saying how it is to be brought down, by whom and to what level and how it will be measured, this clown will be saying the same thing next year. Incompetence on a grand scale.

[bignok]

No line on the horizon, u2

[Dogmatix]

Sounds like total hot air. Thai market is way below where it was nearly 10 years ago and Thai GDP growth now less than developed economies.  All they can come up with is soft power.

[Celsius]

Yea, that's great.

 

Meanwhile it is raining and my brand new shiny condo in Ekkamai is flooding.

[khunjake]

45 minutes ago, Celsius said:

Yea, that's great.

 

Meanwhile it is raining and my brand new shiny condo in Ekkamai is flooding.

After renting several condos all over the Kingdom the last 15 years, no way would I ever purchase one. After being able to hear the tenant next to me rip farts all night, we build our own house on our own  land well far from any further farters. 

[Pouatchee]

who the he11 is gonna read this article?  yawn, burp, fart

[klauskunkel]

12 hours ago, snoop1130 said:

“The next S-curve of Thai tourism,”

"will become a U-Turn after government initiatives"

[2baht]

11 hours ago, khunjake said:

After being able to hear the tenant next to me rip farts all night, we build our own house on our own  land well far from any further farters. 

It's better to fart and stink a little than hold it in and be a cripple! 

[PETERTHEEATER]

????.....(perpetrates a histrionic effect)

[spidermike007]

I hate to rain on their parade, but realistically speaking, there is room for improvement, when it comes to the foreign investment angle. Though that is not something the goons like to talk about. Thailand ranks 131st in freedom of speech, 127th in freedom of assembly, 114th in governance, 136th in institutional trust, 102nd in executive constraints, 84th in contract enforcement, 84th in adult skills, 116th in emissions, 118th in the protection of forests, land and soil, 82nd in restrictions on international investment, according to the The 2023 Legatum Prosperity Index?

 

Thailand’s economic freedom score is 60.6, making its economy the 80th freest in the 2023 Index. The trade-weighted average tariff rate is 7.1 percent, but onerous nontariff barriers add to the cost of trade. Although foreign direct investment is officially welcome, the overall investment frameworks lacks efficiency and transparency. 

 

https://www.heritage.org/index/country/thailand

 

 

The one principal here, that they have still not come to grips with, is that Thailand needs the world, 100x more than the world needs Thailand. Covid could have been a great opportunity for a reset. There is nothing to suggest anything like that happened, to address the dozen or so major problems what have existed for a decade or longer. If anything, Thailand is moving backwards, from being the tiger of SE Asia, which was once in 22nd place worldwide, to the current position of to bring a pathetic, sickly, anemic alley cat, begging for scraps.

https://docs.prosperity.com/3716/7689/5368/Thailand_2023_Picountryprofile.pdf

Edited September 27, 2023 by spidermike007

[spidermike007]

Thailand should be referred to as a 3rd world nation. Granted, the telecom infrastructure is very good. And public transport options in Bangkok are very good. But, beyond that, what would be 1st world about the place?

1. No high speed rail transport.
2. No ability to hire a helicopter for quick transport.
3. Massively over clogged highways, due to the lack of planning, and inability to find any alternative to truck transport of cargo.
4. A minimum number of well placed regional airports, and many like Hua Hin, which are barely used at all.
5. Very poor environmental safeguards. Air, land and sea are all abused and nothing is being done to improve that. Less than zero.
6. A terrible record when it comes to tackling human trafficking, slave trading, fishing industry violations, and treatment of migrant workers.
7. A horrific and totally ineffective job of battling corruption. A highly corrupt police, customs, immigration, and border patrol.
8. A health ministry which was incapable of responding to a pandemic.

9. A horrible, unjust, nonsensical, and prohibitive tariff system, especially as it applies to many foreign parts, products, and equipment.

10. A government that does not respect democracy, the free press, the right of the people to protest or criticize, and other issues.

 

One could go on all day.

Edited September 27, 2023 by spidermike007