WHTW Top 10: 22/07 – 26/07
- Chinese EV makers urged to use locally sourced parts: The Industry Ministry is requesting Chinese electric vehicle manufacturers assemble their EVs with at least 40% of parts sourced locally in a move to support the automotive supply chain in Thailand. Bangkok Post
- Banks h1 profits up 3.7%: Smaller banks record decrease in earnings. The 10 SET-listed banks reported a combined profit of 126.4 billion baht for the first half (H1), marking a 3.7% rise year-on-year. The 10 SET-listed banks reported a combined net profit of 126.4 billion baht for the first half of this year, marking a 3.7% increase year-on-year. This growth was primarily driven by large banks, while smaller banks experienced a decline in earnings. Bangkok Post
- Index advances 3.8% in Q2: The price index of standard home construction in the second quarter of 2024 rose 3.8%, with the biggest increases seen in the prices of wood and wooden products, as well as labour wages. Vichai Viratkapan, acting directorgeneral of the Real Estate Information Center (REIC), said while home construction prices continued to rise, the increase in the second quarter was not significant. Bangkok Post
- KKP: Potential growth rate below 2%: Kiatnakin Phatra Research (KKP Research) forecasts that Thailand’s potential economic growth rate will be below 2% for the next five years due to weaker productivity and competitiveness. Bangkok Post
- Foreign tourist arrivals +4.1% mom in June, +22.3% yoy to 2.74m, with arrivals from China -5.6% mom to 528,112, Malaysia -4.3% to 423,554, India -0.8% to 197,489.
- Motorbike sales -10% yoy in 1H24 on sluggish economy growth, stricter banks’ criteria in granting auto loans and unhealthy exports, Honda
- EA reschedules bills of exchange payment: Ailing Energy Absolute (EA), which has been under investigation over alleged fraud involving former executives, has rescheduled payment of two of its tranches of short-term bills of exchange (B/E) due to tight liquidity. Bangkok Post
- Ministry to divest from 25 companies: The State Enterprise Policy Office (Sepo) looks set to divest Finance Ministry shares in 25 non-listed firms, with a total estimated value of 20 billion baht. According to Tibordee Wattanakul, Sepo’s director-general, the plan to dispose of the Finance Ministry’s shares held in non-listed companies by Sepo is expected to be completed by the end of this year. Bangkok Post
- New body to regulate energy prices: Commission will set taxes and subsidies. Energy authorities will be given more power to regulate domestic oil and cooking gas prices through taxes and subsidies under a new law, says Energy Minister Pirapan Salirathavibhaga. Bangkok Post
- State urged to boost Chinese market: Tourism operators are urging the government to boost the Chinese market as Beijing continues to support domestic tourism, with some key cities even banning overseas chartered flights. Bangkok Post
Bonus 5
- FTI cuts this year car production estimate to 1.7m from 1.9m, by adjusting production for domestic sale from 750K to 550K.
- Household debt pressures growth: Issue causes investors to delay decisions. The high level of household debt has continued to pressure economic growth and is holding back investors’ decision on whether or not to invest more, a recent survey conducted by the Association of Investment Management Companies (AIMC) has found. Bangkok Post
- Price index of vacant land dips in Q2: The price index of vacant land in Greater Bangkok declined in the second quarter of this year compared to the first quarter, primarily due to the slow economic recovery and a downturn in the residential market. Bangkok Post
- FTI adjusts car production goal: Sluggish car sales have caused the FTI to reduce its car manufacturing target for 2024 to 1.7 million units, down from 1.9 million. From January to June this year, total car sales in the country fell by 24.1% year-on-year to 308,027 units. Months-long sluggish car sales have caused the Federation of Thai Industries (FTI) to reduce its car manufacturing target for 2024 to 1.7 million units, down from 1.9 million units. Bangkok Post
- Surge in investment project proposals during first half: Thailand saw a surge in investment project proposals, led by electrical appliances and electronics, during the first half of 2024, with total proposals soaring by 64% year-on-year, worth 458 billion baht, says the Board of Investment (BoI). From January to June, the number of investment applications submitted to the board stood at 1,412, up from 863 applications in the same period last year. Bangkok Post
peter satrapa-binder
regarding KKP: Potential growth rate below 2%: it seems to me that this is the first time anybody has issued a realistic estimate regarding thailand’s future GDP growth.
Pon
More like they cocked up their own business and need to justify the bad financial figures with a negative outlook for the country.
peter satrapa-binder
maybe that too, but weak gdp growth had been a problem for thailand since at least 2-3 years prior to covid and i really don’t know what i’d base optimism for the future on. tourism? maybe. exports? a big maybe. domestic consumption? rather not. government infrastructure spending? also a big maybe.
Pon
Nothing great. Trading market environment. Thailand as an economic engine is done. It’ll be up to companies to capture demand from their neighbours and for some to focus on the key strengths of the country to export overseas or to attract customers to the country. Whether this be in specialised manufacturing, food-related, services (hospitals and hotels), auto, electronics, petrochemicals, banking etc…
peter satrapa-binder
yes, agreed. sure, there will always be a few companies being able to shine even in an overall bad environment but whether that’ll be enough? demographics don’t look so good either,thailand being the first and until now only country in ASEAN which has already passed it’s point of the highest population.
Pon
demographics hasn’t mattered for manufacturing or services for 2 decades, Thailand has relied upon the incompentence of governments in myanmar laos and cambodia which have ensured a continued stream of migrants to Thailand.
Peter Satrapa-Binder
True, that mitigates it somewhat, especially regarding cheap labour. But how on the consumption side? Sure, migrant workers do consume too but surely not any higher priced goods that much. And in the last two decades thailand’s population was still increasing – until last year.
Pon
Yes on the consumer side their impact is perhaps relatively minimal in dollar/baht value compared to what the rest spend in the 3S’s (sukhumvit, silom, sathorn).
what is more amusing is that when thailand’s manufacturing and services sector does well, and the immigrants benefit from a wage increase – it’s the neighbouring countries economies that benefit as money is sent home.
Consumption – Thailand? Domestic consumption has been rubbish for years, even pre wuflu, thats why the prayuth government had the year end shopping stimulus programs for multiple years in a row.
peter satrapa-binder
yes agreed. considerable parts of thailand’s economy had been weak already for several years pre-wuflu. of course wu-flu had been a good excuse, at least to be used to people who didn’t have long memories. 🙂