Thailand's Central Bank Cuts Interest Rate to Boost Economic Growth. Thailand’s central bank has surprised markets with an unexpected decision to cut its key interest rate by 25 basis points, reducing it from 2.5% to 2.25%. ASEAN NOW

 

Thailand's central bank has surprised markets with an unexpected decision to cut its key interest rate by 25 basis points, reducing it from 2.5% to 2.25%. The move comes after five consecutive meetings where the rate was held steady, and amid persistent calls from the government for monetary easing to support a sluggish economy. 

 

Despite inflation remaining below target, the decision aims to address the rapid appreciation of the baht and ease the debt burden faced by households.

 

Economic analysts had not widely predicted this change, with only four out of 28 economists anticipating such a reduction. The shift in policy, which last saw a rate increase in September 2023, is part of a strategy aligned with the government's fiscal stimulus efforts.

 

The central bank forecast economic growth improving slightly to 2.7% in 2024, and 2.9% in 2025, although the growth is modest compared to regional peers.

Thailand has been grappling with high household debt and borrowing costs alongside weak export figures. As of June, the country's household debt ratio was 89.6% of GDP, one of the highest in Asia. The latest reduction in the interest rate aims to alleviate some financial pressures by lowering debt servicing costs, potentially spurring more consumer spending and investment.

 

Alongside Thailand, the Philippine central bank also cut its key interest rate by 25 basis points, citing manageable price pressures and aiming to maintain inflation within its 2% to 4% target range. However, the Bank of Indonesia maintained its rates, aligning with analyst predictions.

 

The unexpected rate cuts in both Thailand and the Philippines reflect broader efforts in Southeast Asia to support economic activity amid challenging global conditions. The impact of these monetary policy decisions will likely unfold over the coming months as markets and consumers adapt to the new financial landscape, reported Thai Newsroom, Reuters.

 

-- 2024-10-16

The real deal about the end of one of Thailand’s unpopular address forms - Pattaya Mail

The real deal about the end of one of Thailand's unpopular address forms

Pattaya MailOctober 16, 2024

Cancelling the TM6 arrival form is an initial step to reform paper-based immigration bureaucracy.

The chopping of the Tor Mor 6 small arrival registration form is a staging post to a wholly electronic visitor entry system. Historically, the TM6 was distributed to airline passengers about to land who, always wearily and often unreadably, scribbled their Thai address and local phone number after borrowing their neighbor's pen. It was abolished for airline passengers as early as July 2022, partly out of covid concerns and partly because it was generally pointless.

However, the form survived for some visitors by land and all by sea until now suspended on October 16 by the Cabinet at least until April 2025. By then, according to the interior ministry, the ETA or Electronic Travel Authorization should be in place for all visa-exempt foreigners, the ones from 93 countries who receive 60 days on arrival. These countries include all the nations providing significant numbers of international vacationers.

These guys and gals, probably by Easter next year, have to apply online for permission to enter Thailand and, on permitted arrival, will be able to pass through immigration's electronic gates at entry points with a personally-provided QR code. The individuals will likely be refused boarding at airports or refused entry at seaports and border checkpoints unless the bureaucracy has been successfully completed.

Although the ETA, required for every visit, will be notionally free that's not the end of the story. Thailand will introduce the long-delayed tourist tax of 300 baht by air and 150 baht by land and sea. It has long been argued that collecting cash at entry points would lead to long queues and much frustration by visitors and immigration officers alike. ETA provides the answer by insisting you pay beforehand and electronically by card.

At some stage in 2025 the ETA system will be extended to include all foreigners entering Thailand, including all non-immigrant visa holders such as retirees. Such a system is becoming common worldwide, for example in UK which starts its electronic entry bureaucracy for all visitors next month. Basically, ETA replaces decisions by immigration officers on the ground by prior electronic checking of wannabe entrants.

TM6 forms, previously required for some land and all sea arrivals, have been suspended until at least April 2025. By then, the ETA (Electronic Travel Authorization) system is expected to be implemented for visa-exempt foreigners.

Before that can happen, Thai authorities have to combine several independent data bases which currently check for passport authenticity, prior travel history, criminal history in Thailand and international warrants. The 300-150 baht tourist tax, eventually to be levied on all foreigners except those with a valid work permit or permanent residence status, will be used to update tourist sites and provide limited insurance for tourists including compensation for loss of limbs or death. It is decidedly not comprehensive medical insurance for all.

Once ETA is fully in place, it will be powered by machine learning and the algorithm used will automatically perform all pre-examination tests. Questions often asked such as "How many times can you do a border run with visa exempt?", or "Can I use my Destination Thailand Visa again by leaving Thailand and returning the same day?" will be settled remotely. Where technological advancement leaves traditional visa extensions at local immigration offices, or paper trails such as the "housemaster" TM30 and the 90 days report, can only be deferred to our technological future.



Thai PM Faces Allegations of Media Freedom Breach. Prime Minister Paetongtarn Shinawatra has found herself under scrutiny following a petition filed by Ruangkrai Leekitwattana, a frequent petitioner, accusing her of breaching media freedoms. Mr Ruangkrai has claimed that her recent interactions with the press could result in her removal from office. ASEAN NOW



Picture courtesy: Springnews

 

Prime Minister Paetongtarn Shinawatra has found herself under scrutiny following a petition filed by Ruangkrai Leekitwattana, a frequent petitioner, accusing her of breaching media freedoms. Mr Ruangkrai has claimed that her recent interactions with the press could result in her removal from office.

 

On Monday, Mr Ruangkrai submitted a formal request to the Election Commission (EC), urging an investigation into Ms Paetongtarn's response to a journalist during a press interaction. He argues that her remarks were not befitting a public officeholder, potentially breaching Section 184 of Thailand's Constitution. If verified, this could lead to the prime minister losing her position as dictated by Section 170.

 

The controversy began during a media engagement at Government House. A particular interaction, featured on the ch3plus.com website, captured the prime minister's dissatisfaction with reporting related to the government's stance on constitutional amendments. This stemmed from a query about disagreements with coalition parties regarding proposed amendments perceived as a policy reversal.

Ms Paetongtarn expressed her preference that such questions be avoided, reiterating that coalition consultations on key issues occur regularly. She also noted that current government priorities were focused on flood relief efforts, pushing amendments to a lower priority.

 

The prime minister further suggested that cohesive governance was in the national interest, cautioning against questions that might incite division. Mr Ruangkrai, however, contends that her responses could be seen as infringing on the media's constitutional rights to report on governmental affairs.

 

This is Mr Ruangkrai's second petition against Ms Paetongtarn, the first being an accusation of ethical misconduct related to appointing advisors with criminal records. The EC's findings will dictate whether the matter escalates to the Constitutional Court for a conclusive ruling, reported Bangkok Post.

 

-- 2024-10-15

Phuket Tourism Worries Mount Over Climate Change Impact. Thaneth Tantipiriyakij, president of the Phuket Tourist Association, highlights that flooding has become an annual occurrence in several areas, including Kata, Karon, and Kamala. ASEAN NOW



 

Phuket tourism operators are increasingly anxious about climate change's tangible consequences, affecting both Thailand and key tourist source markets through severe weather and flooding.

 

Thaneth Tantipiriyakij, president of the Phuket Tourist Association, highlights that flooding has become an annual occurrence in several areas, including Kata, Karon, and Kamala.

 

This year, landslides in Kata and Karon tragically resulted in foreign fatalities, while recent floods submerged roads in Kamala, causing inconvenience and traffic disruptions.

 

Thaneth notes that despite anticipating 500 billion baht in tourism revenue, surpassing pre-pandemic levels, Phuket's infrastructure struggles to cope with increasing tourist numbers. He expresses disappointment over the central government's lack of action on improving water management and urban infrastructure.

 

Virintra Papakityotsaphat, president of the Tourism Council of Phuket, underscores the critical risk posed by climate-induced natural disasters. She advocates for enhanced governmental regulations, particularly against illegal constructions obstructing floodways. This would help prepare infrastructure to better withstand such events.

On a broader scale, recent global weather incidents, such as Hurricane Helene and Hurricane Milton, which recently hit Florida, illustrate the wider climate impact.

 

These events disrupt travel plans, with airlines cancelling numerous flights, potentially deterring tourists from travelling to Thailand during peak seasons. However, Virintra remains optimistic about Phuket's diverse tourist base, attracting visitors from Russia, Europe, India, and China.

 

Siripakorn Cheawsamoot, deputy governor for marketing in Europe, the Americas, the Middle East, and Africa at the Tourism Authority of Thailand, adds that while the US travel market might experience short-term effects, Thailand aims to welcome at least 1 million US visitors this year. Furthermore, the Tourism Authority is focusing on promoting Thailand as a sustainable, eco-friendly travel destination, reported Bangkok Post.

 

Picture courtesy: MGR online

 

-- 2024-10-12

Thailand Tightens Airport Screening Amid Afghanistan Health Alert. This decision follows reports of an outbreak of an unidentified illness in Afghanistan, where over 500 people have been infected and two have died. Symptoms include severe fatigue, muscle pain, diarrhea, and high fever. ASEAN NOW



 

On October 9, 2024, Dr. Phanumas Yanwetsakul, Director-General of the Department of Disease Control (DDC) under Thailand's Ministry of Public Health, announced that the country is enhancing health screening measures at all major airports.

 

This decision follows reports of an outbreak of an unidentified illness in Afghanistan, where over 500 people have been infected and two have died. Symptoms include severe fatigue, muscle pain, diarrhea, and high fever.

 

The DDC has instructed the Bureau of International Communicable Disease Control and Quarantine to closely monitor the situation. Airline staff on flights from affected regions are advised to wear masks and gloves while serving food and cleaning restrooms. Crews are also encouraged to watch for symptoms among themselves and passengers.

At Thailand's primary airports, including Suvarnabhumi, Don Mueang, Phuket, U-Tapao, and Hat Yai, heightened screening will focus on travelers arriving from Afghanistan. 

 

Anyone showing symptoms, such as a high fever or other signs related to the illness, will undergo additional screening at international communicable disease control checkpoints.

 

Dr. Phanumas emphasized that these measures aim to prevent any potential spread of the disease into Thailand. The DDC will continue to assess and respond to the evolving situation to protect public health, reported Siam Rath.

 

Picture courtesy: Siam Rath

 

-- 2024-10-10

Bangkok Post - Toxic smog returns to Greater Bangkok. The nationwide peak was outside the Bangkok area, 58.8µg/m3 in Muang district of Kanchanaburi, and the lowest was 3.2µg/m3 in Muang district of Phangnga. The Meteorological Department said the fug was expected to remain over Greater Bangkok until Oct 16.

Toxic smog returns to Greater Bangkok

Smog blankets Bangkok on Tuesday. (Photo: Pattanapong Hirunard) 

Several areas in Bangkok and nearby provinces were blanketed with hazardous levels of smog on Tuesday, the pollution trapped in stagnant air.

The Pollution Control Department reported that levels of particulate matter 2.5 microns and less in diameter (PM2.5) exceeded the safe threshold of 35 microgrammes per cubic metre of air in 24 hours in parts of the capital and in Nakhon Pathom, Nonthaburi, Samut Prakan and Samut Sakhon as of 11am on Tuesday.

In Bangkok, unsafe levels of PM2.5 ranged from 37 to 48.8µg/m3 in parts of Bang Bon, Bang Kholaem, Bang Khunthian, Bang Na, Bang Phlad, Bang Rak, Bangkok Noi, Bangkok Yai, Bung Khum, Chatuchak, Chom Thong, Khlong San, Laksi, Nong Khaem, Pathumwan, Phasicharoen, Pomprap Sattrupai, Rat Burana, Samphanthawong, Sathon, Thon Buri, Thawi Watthana, Thung Khru and Wang Thong Lang districts.

The 48.8µg/m3 peak was in Sathon district.

In provinces near Bangkok, unhealthy levels of PM2.5 were in Krathumbaen and Muang districts of Samut Sakhon (38.3-53.4µg/m3); Muang and Phra Pradaeng districts of Samut Prakan (37.9-46); Pak Kret district of Nonthaburi (45.9); and Muang district of Nakhon Pathom (46.1).

The nationwide peak was outside the Bangkok area, 58.8µg/m3 in Muang district of Kanchanaburi, and the lowest was 3.2µg/m3 in Muang district of Phangnga.

The Meteorological Department said the fug was expected to remain over Greater Bangkok until Oct 16.



Heavy rain triggers flash flooding across Pattaya, authorities provide traffic assistance - Pattaya Mail

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Heavy rain triggers flash flooding across Pattaya, authorities provide traffic assistance

Pattaya MailOctober 7, 2024

Local authorities, including traffic police and special operations teams, quickly deployed to assist residents and manage the situation.

PATTAYA, Thailand – On Sunday, October 6, heavy rain persisted for approximately two hours, leading to flash flooding in multiple areas across Pattaya. Local authorities, including traffic police and special operations teams, quickly deployed to assist residents and manage the situation. At 5:20 PM, officers were seen directing traffic at Wat Tham Samakkhee Intersection towards Khao Talo Junction, preventing vehicles from driving through submerged areas.

In several locations, such as South Pattaya's Sukhumvit Road near the Esso gas station, pumps were activated to drain the floodwaters. By 5:30 PM, water levels had already risen to around 20 centimeters near the "Moom Aroi" intersection at Paniad Chang, while at the Sukhumvit 75 pumping station, water on the road reached heights of 60 to 80 centimeters, stretching for about 400 meters, making it impassable for both small and large vehicles.

As the rain began to ease around 5:47 PM at Sukhumvit 45, authorities noted a flooded stretch approximately 100 meters long, leaving only one lane passable. Pumps continued to operate normally.

By 6:00 PM, water levels had started to decrease at various points, and by 7:23 PM, vehicles were able to resume using both inbound and outbound lanes on Sukhumvit Road, where floodwaters had receded to about 10 centimeters.

Officers were seen directing traffic at Wat Tham Samakkhee Intersection towards Khao Talo Junction, preventing vehicles from driving through submerged areas.

In the recent meeting, District Chief of Banglamung Weekit Manarotkit urged all relevant agencies to closely monitor weather conditions and risk factors such as accumulated rainfall, reservoir water levels, drainage from dams, and upstream water situations. Agencies should also keep a close watch on weather forecasts and warnings from authorities. If there is a risk of flash floods, landslides, waterlogging, or strong winds, local government bodies in at-risk areas must be immediately informed.

Additionally, it was emphasized that alerts should be communicated to local leaders, including village chiefs, community leaders, volunteers, and the public through formal and informal channels. The public should also be encouraged to stay informed of official warnings from government agencies. This proactive approach will help ensure that responses are swift and effective in the event of any emergency.

Water levels had already risen to around 20 centimeters near the "Moom Aroi" intersection at Paniad Chang

The Sukhumvit 75 pumping station, water on the road reached heights of 60 to 80 centimeters, stretching for about 400 meters, making it impassable for both small and large vehicles.

Vehicles were able to resume using both inbound and outbound lanes on Sukhumvit Road, where floodwaters had receded to about 10 centimeters.



Bangkok Post - Finance Ministry pushes higher inflation target. The Finance Ministry has proposed moving the inflation target for next year to 1.5-3.5%, rising from the existing range of 1-3%, to provide the Bank of Thailand more room to lower the policy rate.

Finance Ministry pushes higher inflation target

The Finance Ministry has proposed moving the inflation target for next year to 1.5-3.5%, rising from the existing range of 1-3%, to provide the Bank of Thailand more room to lower the policy rate.

According to a ministry source who requested anonymity, this adjustment to the inflation target would allow the central bank to cut the policy interest rate, stimulating inflation within the new framework.

The source said the ministry wants the central bank lower the policy rate, aligning with the Federal Reserve's rate cut of 50 basis points.

However, the Bank of Thailand may view such a reduction as too aggressive, said the source, adding a cut of 25 basis points should be considered at a minimum.

"The conventional wisdom that interest rate reductions have a slower effect than fiscal policy is inaccurate. When the interest rate is reduced, 84 million loan accounts at Thai financial institutions will immediately experience a decrease in their interest burden," the source said.

Finance Minister Pichai Chunhavajira is scheduled to hold discussions about the inflation management framework for 2025 with the Bank of Thailand in late October, presenting their suggestions to the cabinet for implementation in 2025.

The source said the central bank is likely reluctant to lower the policy rate because of concerns that inflation may rise, even though the general inflation rate is less than the lower limit set by the regulator. The central bank may believe the headline inflation rate will fall within the framework by the end of this year, said the source.

The source believes the Bank of Thailand is unlikely to adjust the inflation target because it considers the existing framework suitable for the recovering economy.

However, a reduced policy interest rate may still be considered, said the source.

The ministry wants the central bank to adjust the inflation target because inflation has been low for an extended period, which is not conducive to an economic recovery, particularly for trade and investment, according to the source.

"The ministry wants a lower policy rate, aligned with the interest rate policies of other countries. Having higher interest rates than other nations leads to inflows of capital seeking higher returns in the domestic market, causing the baht to appreciate, which negatively affects exports and tourism," said the source.

The baht recently strengthened to 32.15 per US dollar, close to a recent high in 2022 of 32.13 to the greenback.

The source said the factors contributing to the baht's appreciation stem from foreign currency inflows, coming from three sources: investments seeking higher domestic returns because of relatively higher Thai interest rates; foreign capital entering the Thai stock market; and revenue generated from exports.



Bangkok Post - Flood warning for lower Chao Phraya River basin provinces including Greater Bangkok

Flood warning for lower Chao Phraya River basin provinces including Greater Bangkok

An embankment was reinforced near the Niwet Woradit pier by the Chao Phraya River in Bangkok last month. (Photo: Apichart Jinakul) 

The Royal Irrigation Department is warning people along waterways in the lower Chao Phraya River basin, including those in Greater Bangkok, of either possible overflow or deeper flood levels due to deluges from the North, heavy rains and high seas later this month.

Lerboon Udomsap, an engineering expert at the department, said on Sunday that due to torrents of water from the North, the discharge rate of the Chao Phraya barrage – which regulates the flow of the Chao Phraya River in Chai Nat province – would gradually be raised from 2,150 cubic metres per second to 2,400 cubic metres per second this week.

According to Mr Lerboon, the faster discharge will affect waterway-adjacent areas from Sapphaya district of Chai Nat downstream to Greater Bangkok, leading to possible overflow and deeper flood levels this week.

Low-lying areas to be affected include:

• In Buri, Muang and Phrom Buri districts of Sing Buri
• Muang and Pa Mok districts of Ang Thong
• vast areas near Phong Pheng and Bang Ban canals and the Noi River in Ayutthaya
• Muang and Sam Khok districts in Pathum Thani
• about 30 riverside communities in Muang and Pak Kret districts of Nonthaburi
• thirty-two flood-prone areas in Bangkok including Song Wat area

Mr Lerboon said that Greater Bangkok could face flooding if there were high tides and heavy rains this month because the levels of waterways would already be high and obstruct the drainage of rainwater. He said high tides would occur from Oct 18 to 22.

Irrigation officials were trying to drain water from Greater Bangkok to the sea through Tha Chin and Bang Pakong rivers so that there would be more room to receive rainwater this month, Mr Lerboon said.

Surasee Kittimonthon, secretary-general of the Office of National Water Resources, said that deluges of water from the Ping River in Chiang Maiwould flow into the Bhumibol dam in Tak province and have no impact on the Chao Phraya River.

Bangkok Post - Floods drown 2 elephants, rescue efforts continue. The park is home to 126 elephants, two of which have been confirmed dead after being swept away by the floodwaters.

Floods drown 2 elephants, rescue efforts continue

Save the animals: Elephants stranded in the Elephant Nature Park in Mae Taeng district of Chiang Mai were rescued on Saturday, along with other animals, including dogs, cats, buffaloes, horses and goats. (Photo: Sumit Athiprom) 

Two elephants have drowned from flooding at Elephant Nature Park in Chiang Mai's Mae Taeng district. An all-out effort is underway to locate animals stranded in rising waters and fast-moving flood currents.

The park is home to 126 elephants, two of which have been confirmed dead after being swept away by the floodwaters.

Phang Fah Sai, a female elephant, was found dead near the Sibsan resort in Mae Taeng district on Saturday morning. The other dead pachyderm is believed to be Plang Mae Khor, who had a disabled leg. However, park staff are still working to confirm the identity.

Conservationist Saengduean Chailert, founder of the Elephant Nature Park, wrote on her Facebook page that Friday was a day of darkness and gloom for the park.

When they received the flood warning on Thursday, staff began evacuating the elephants to higher ground, and the effort continued into Friday night. However, the water kept rising, and even more elevated areas were not spared. The entire elephant village is now severely flooded.

"Our animals are adrift in floodwater. Our elephants are not chained, but remain in fenced enclosures," Ms Saengduean wrote. "The floodwater has risen to over three metres, surpassing the fences of the animals' shelters and almost reaching the roofs."

"Our blind elephant Mae Ploydaeng, Plang Mae Meeboon, and several others were swept away by the severe floods before our eyes."

Many cows and buffalo at the park also went missing during the flooding. All cats and dogs from the compound are safe, she said, though there were no cages for the animals.

She expressed her gratitude to rescue workers, volunteers, and government agencies for their help. Many elephant camps also sent their mahouts to help control the panicked elephants and assist in evacuating them. Ms Saengduean said she was heartbroken when she was informed that two elephants had been found dead.

Meanwhile, helicopters from Wing 41 of the Royal Thai Air Force, led by Gp Capt Phanpaporn Jinawat, Commander of Wing 41, helped track down the missing elephants. He said the aerial search began from the camp and extended to the surrounding area.

During the survey, the aircraft's infrared camera detected what appeared to be three elephants about one kilometre from the camp. These may have been the elephants they were searching for, and they also found a dead elephant.

The helicopter's infrared camera also detected three more elephants: one walking up the mountain and two remaining still. It is believed the elephants were sheltering on the mountain, and the coordinates were given to the mahouts to track them down.

The Department of National Parks, Wildlife and Plant Conservation, along with the Royal Forest Department, a team of vets, officials from the National Elephant Institute, and volunteers, assisted in rescuing the stranded elephants at the park.

Out of a total of 126 elephants, 114 have been moved to safety, while nine male elephants remain stranded, two elephants have died, and one is missing. Other animals, including buffalo, goats, dogs, and cats, have also been moved to safety, according to the Ministry of Natural Resources and Environment.

Bangkok Will Not Flood, PM Paetongtarn Shinawatra Assures. Prime Minister Paetongtarn Shinawatra has assured residents of Bangkok that fears of flooding are unfounded, emphasising that current rainwater levels are significantly lower compared to the devastating 2011 floods. ASEAN NOW



 

Prime Minister Paetongtarn Shinawatra has assured residents of Bangkok that fears of flooding are unfounded, emphasising that current rainwater levels are significantly lower compared to the devastating 2011 floods. On Wednesday, Ms. Paetongtarn reviewed the water situation at the Royal Irrigation Department in Nonthaburi.

 

In 2011, Thailand faced the fury of five storms and saw a rainfall increase of over 25% beyond the average. In contrast, this year's figures show only a 2% rise above usual rainfall levels, and just one storm has struck. Major reservoirs still have room to retain water, unlike in 2011 when they reached capacity, forcing massive water releases.

 

"For those concerned about potential flooding in Bangkok, there is no need to worry. Bangkok will not be flooded," assured Ms. Paetongtarn.

 

Currently, rainfall in northern areas is contributing to water flow from the Ping, Wang, Yom, and Nan rivers into the Chao Phraya River. The Chao Phraya Dam in Chai Nat is releasing water at 1,899 cubic metres per second, a rate comfortably managed by current infrastructure.

The Water Resources Department is closely monitoring at the Bang Sai station to ensure flow rates remain under 3,000 cubic metres per second in Ayutthaya.

 

Local authorities are prepared, deploying drainage and pumping efforts to direct water efficiently to the Gulf of Thailand, managing a daily capacity of about 164 million cubic metres, reported Bangkok Post.

 

Looking ahead, the Meteorological Department forecasts mixed weather, with possible storms and rainfall due to a cold front from China, affecting Bangkok, among other regions.

 

Meanwhile, Jirayu Houngsub, a disaster relief spokesman, warned of potential overflow along Chiang Rai's Kok River due to expected heavy rains, potentially impacting 147 square kilometres across six districts.

 

Picture courtesy: Thai Rath

 

-- 2024-10-04