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Here is your Mekong Memo Thailand for this week.
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Headlines:
Government Launches Cybercrime Offensive
Former Chief and 200 Officers Guilty of Bribery
Investment Applications Almost Double
Exports Beat Forecasts by Almost a Fifth
Prime Minister at SK APEC Summit
ASEAN-China Trade Pact Upgraded to V3
Pheu Thai to Choose New Leadership
Finance Proposes Savings Account Reform
Crackdown On Vaping and E-Cigs
Planes, Trains, and Drones
Tourism Challenges and Opportunities
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Government Launches Cybercrime Offensive
Prime Minister Anutin Charnvirakul signed an executive order that sets up three subcommittees to tackle “cybercrime and online scams”. The first one, chaired by Justice Minister Pol Gen Rutthaphon Naowarat, is going to work on enforcement, particularly money laundering. The second, led by Digital Economy Minister Chaiyachanok Chidchob, will run analyses of trends and come up with prevention ideas. The third will deal with public education. Thailand joined the UN Cybercrime Convention this week, joining 68 other countries, and has made online fraud a “National Agenda,” issue - let’s see if it makes a difference. More than a thousand online fraud cases are reported daily. New restrictions on SIM cards and bank accounts have come into effect as part of the crackdown. Individuals are now limited to a maximum of five SIM cards across all mobile operators to reduce untraceable numbers used by scammers. The Bank of Thailand is being required to enforce new rules restricting bank account numbers, targeting mule accounts, and limiting some fund transfers to 50,000 baht daily.
Read more: Bangkok Post (Subcommittees), Nation Thailand (UN Convention), Nation Thailand (Crackdown Results), Nation Thailand (SIM and Bank Limits), Bangkok Post (NESDC Monitoring)
Former Chief and 200 Officers Guilty of Bribery
The Police Complaint Review Committee confirmed that the former Commissioner of the Royal Thai Police and 200 other officers have been found guilty of accepting bribes from online gambling website operators. Allegations were first brought by lawyer Sitta Biabangkerd in March last year. Sitta brought forward evidence, including money transfer receipts and chat messages, that connected officers to a network of mule accounts that distributed bribes. After nearly seven months of sleuthing, the committee found the claims credible and called for a disciplinary review. The implicated officers are going to be allowed to present “clarifications” before any disciplinary actions are handed down. The case is currently under review by the Office of the National Anti-Corruption Commission. While the retired former RTP Commissioner is likely to face minimal consequences, the remaining officers could be suspended or dismissed.
Read more: The Thaiger,
Investment Applications Almost Double
The Board of Investment says that investment applications have risen by 94% so far this year to 1.37 trillion baht ($41.8 billion). Foreign projects made up 985 billion baht ($30 billion), with the largest commitments coming from Singapore (360 billion baht), Hong Kong (237 billion baht), and China (143 billion baht). The BOI says it’ll fast-track 70 projects worth 300 billion baht (USD 9.22 billion) over the next four months to try and get the cash into the economy as quickly as possible.
Read more: TradingView (BOI Data), Prop News Time (Fast-Track Projects)
Exports Beat Forecasts by Almost a Fifth
Exports increase by 19.0% in September, the highest rate in 42 months, mostly because of strong shipments to the US (tailwinds: clearer trade conditions and competitive tariff rates). The Commerce Ministry moved its FY export forecast up a little to as high as 10.4%, handily beating the original 2% to 3% target. In September, Thailand and the U.S. formalized a trade framework agreement to get rid of tariffs on nearly all U.S. goods. KResearch revised Thailand’s 2025 export growth forecast to 11.0% from 5.7%, but has kept its GDP FY forecast at 1.8%.
Read more: TradingView (Export Growth), Kasikorn Research (KResearch), TradingView (Trade Surplus)
Prime Minister at SK APEC Summit
The Prime Minister arrived in Gyeongju two days ago for the 32nd APEC Economic Leaders’ Meeting. He is expected to be there until November 1 and to meet with leaders from (at least) China, Canada, South Korea, Japan, and the U.S. The PM wants to use APEC to show that Thailand continues to commit to multilateralism, especially via the WTO, and to improve confidence in Thailand’s potential. He is scheduled to give a keynote presentation at the APEC CEO Summit titled “Bridge. Business. Beyond.”
Read more: OAN
ASEAN-China Trade Pact Upgraded to V3
Commerce Minister Suphajee Suthumpun seemed pleased to announce that an upgrade to the way the ASEAN-China Free Trade Area works was agreed to on Tuesday. The Ministry of Commerce will run a road show to explain new features of ACFTA and to educate stakeholders on the benefits of the revised deal. The agreement requires member countries to finish up their own internal process improvements before letting the ASEAN Secretariat know they’re ready for enforcement. After the public hearings, the agreement will be sent to parliament for approval. Among other upgrades, the ACFTA 3.0 includes improvements in customs procedures and industrial standards. So far this year, bilateral trade between ASEAN and China has risen by 18.7%; Thailand’s trade is up 28.1%.
Read more: Bangkok Post
Pheu Thai to Choose New Leadership
The Pheu Thai Party is expected to elect Julapun Amornvivat as party leader and Prasert Chanruangthong as secretary-general during an extraordinary party meeting today. Julapun, a 50-year-old Chiang Mai MP, has reportedly earned the support of his colleagues because of his calm temperament, economic expertise, and ability to bring the party’s senior and younger members together. The leadership transition comes after the resignation of former leader (and former PM) Paetongtarn Shinawatra earlier this month. The new leadership is expected to put forward a reinvention story to try to refresh the party’s image as well as to distance itself from the Shinawatra family. The outcome of today’s meeting will certainly have an impact on the Shinawatra family’s role in Thai politics as the nation looks forward to the next general election, which is expected in late March next year.
Read more: Nation Thailand (Leadership Race), Bangkok Post (Julapun Expected), Nation Thailand (Roles Confirmed)
Finance Proposes Savings Account Reform
Finance Minister Ekniti Nitithanprapas wants to see a new individual savings account (ISA) option as a tax-deductible savings instrument to replace the deprecated retirement mutual funds (RMF) and long-term equity funds (LTF). The ISA is being touted as a benefit to a wider range of savers beyond high-income earners who currently benefit from the favorable treatment of LTF investments, which are said to cost the Revenue Department about 20 billion baht annually. The ISA would allow taxpayers more flexibility in making investment choices while still improving security for retirees.
Read more: Bangkok Post
Crackdown On Vaping and E-Cigs
The Cabinet wants to revamp the Tobacco Products Control Act to reduce e-cigarette use after the reported number of users exploded from ~78k in 2021 to more than 400,000 last year. The Ministry of Public Health says it’s going to make changes to rules on e-cigarette production, import, sales, advertising, and use. A campaign for children and teenagers is also expected to try to raise awareness about vaping’s dangers. The government also wants to fast-track rules intended to keep industry interference in tobacco policy at bay.
Read more: The Star
Planes, Trains, and Drones
The Transport Ministry still wants more regional aviation love, and is (again) trying to tout the benefits of Thailand as a maintenance, repair, and overhaul facility center (the word “hub” is soooo overused). Transport Minister Phiphat Ratchakitprakarn said the nation needed a full-scale MRO in Thailand to prevent losing its current aviation advantages to its neighbors. Thailand’s recently improved aviation ranking (back to Category 1!) by the U.S. FAA allows Thai carriers and pilots to operate in the U.S. again. United Airlines relaunched daily flights connecting Los Angeles to Bangkok (but NOT non-stop) on October 24, ending an 11-year drought. Beginning December 1, commuters will be able to have unlimited rides on the Red and Purple train lines for a flat daily fare of 40 baht, in a deal that’s expected to run through November 30 next year. The government is also working to promote commercial use of drones for air transport and delivery, and it has launched “The New Era of Drone Delivery” project.
Read more: Bangkok Post (Aviation Hub), Fox LA (LAX Flights), Bangkok Post (Train Fare), Bangkok Post (Drone Delivery)
Tourism Challenges and Opportunities
Former Prime Minister Abhisit Vejjajiva gave a speech this week in which he warned that the nation wouldn’t be able to meet its economic improvement potential if it can’t breaking what he calls the “slow-growth cycle.” He shared his concern about the drop in the number of Chinese tourists, saying it came because of fears of violence and scams on safety, not because of Chinese government policy (in other words, an own-goal). He proposed five fixes: more inbound tourism market diversification, better support for tourism SMEs, improved infrastructure/ connectivity, and better marketing. The future of rules about how, when, and where alcohol can be sold are still bizarre and unclear. the Centre for Alcohol Studies says the removal of zoning restrictions on alcohol sales and extension of nightlife opening hours to 4am would result in more (~12%) accidents and death. The bizarre rules around what time alcohol can be sold during the day are also getting renewed attention from restauranteurs who continue to be baffled about the ham-fistedness of the whole thing. Truly. If you are not familiar with the situation, read the Bangkok Post article and scratch your head.
Read more: Nation Thailand (Abhisit Proposals), Bangkok Post (Health Concerns), Bangkok Post (Restaurant Concerns)
That’s it for this week, thanks for reading!
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