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Thai Chamber of Commerce warns 10 million jobs in peril if lock-down persists

Maya Taylor

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Thai Chamber of Commerce warns 10 million jobs in peril if lock-down persists | The Thaiger
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The Thai Chamber of Commerce is appealing for businesses to be allowed to reopen ASAP, warning that if the lock-down goes on much longer, an estimated 10 million people could lose their jobs. The Pattaya News reports that TCC Chairman, Kalin Sarasin, says businesses should be allowed to reopen provided they abide by new public health measures.

He says the world’s financial systems have been devastated, citing the Asian Development Bank’s view that between US$5.8-$8.8 trillion will be wiped off the global economy and the pandemic is expected to shrink global GDP by between 6.4% and 9.7%.

He warns that while around 7 million Thais are already expected to lose their jobs, any prolonged business closures may result in this number growing to 10 million. This doesn’t include undocumented workers, with some experts saying their numbers could be as high as 14 million to add to the human misery.

Meanwhile, the Thailand Development Research Institute says all businesses will have to change how they operate, promoting social distancing and allowing employees to work from home where this is possible. TDRI President Somkiat Tangkitvanich says such a measure could save businesses 2 million baht a month.

However, the institute says it’s not expecting Thailand’s economy to return to normal any time soon, saying the effects of Covid-19 are expected to linger for the next 3 years.

SOURCE: The Pattaya News| National News Bureau of Thailand

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2 Comments

2 Comments

  1. Avatar

    Phil

    May 22, 2020 at 12:06 pm

    Much more of a crisis, and will kill far more people than this so-called virus pandemic! Thailand government needs to get off its hands right now and take some decisive action, rather than tickling the issue as they are doing!

    • Avatar

      Brian Dunbar

      May 24, 2020 at 12:06 pm

      Here is a thought. Since so many Thai’s have been put out of work because of this pandemic and therefore have no money, how about all the government officials have their salaries cut off and we will see how quickly things will get back to normal, i.e going to the mall, eating in restaurants, no curfew. Bet it wouldn’t take long.

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Politics

Government to provide more financial aid to small and medium-sized businesses

Jack Burton

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Government to provide more financial aid to small and medium-sized businesses | The Thaiger
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Thailand’s Ministry of Finance has been tasked with coming up with plans for additional financial aid to small and medium-sized enterprises affected by the Covid-19 crisis. Government Spokesperson Narumon Pinyosinwat made the announcement yesterday.

“The Ministry of Finance will estimate the budget to be used as well as the loan limit and interest rate, and will present to the Cabinet again in the next meeting.”

A source told Nation Thailand the ministry’s survey revealed that SME operators, who couldn’t get loans at the height of the crisis, were mostly those who had never applied for a loan before and so had no record of their repayment ability. They were refused loans to avoid risk. Furthermore, some SMEs were rejected loans because their status was listed under “non-performing loans,” even though they still have the capacity to continue operating.

The source says the Ministry of Finance has assigned the Office of Small and Medium Enterprises Promotion to come up with measures tailored specifically to help SMEs in the above 2 groups, such as providing loans from the OSMEP’s fund instead of relying on financial institutions. The measures are expected to be ready by the end of July.

SOURCE: Nation Thailand

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Business

4 new board members for THAI restructure, 1 has airline experience

The Thaiger

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4 new board members for THAI restructure, 1 has airline experience | The Thaiger

Four new board members for Thai Airways are the face of hope for the national airline as it addresses massive losses and restructuring. The airline’s business is now being addressed under the country’s Bankruptcy Act.

Piyasvasti Amranand, Pirapan Salirathavibhaga, Boontuck Wungcharoen and Pailin Chuchottaworn have joined the Thai Airways executive board. Piyasvasti served as the airline’s president from June 2009 to June 2012.

The four board members were hand-picked by Thai PM Prayut Chan-o-cha, who said he needed “trustworthy people” to help guide the national airline to a more profitable future.

Last week the Thai cabinet approved a plan for the 60 year old airline to enter a court-sanctioned restructuring scheme under the country’s bankruptcy law. The plan for Thai Airways to borrow 54 billion baht to stay afloat in another government ‘bail out’ was met with widespread opposition, from government ministers, prominent businesspeople and social media. The airline has accumulated debts of 244 billion baht. The Covid-19 pandemic has also grounded most of its fleet, massively compounding the airlines’ already complex problems.

Also last week, the Stock Exchange of Thailand listed airline informed the SET that the Finance Ministry had sold 3.17% of its majority shareholding in the airline to the state-backed Vayupak Fund on May 22. This reduced the ministry’s stake from 51.03% to 47.86% control, stripping Thai Airways of its status as a state enterprise, providing more scope for the new board to restructure the airline and seek private financial assistance.

But the government technically retains a majority stake in the airline if the shares of the Finance Ministry, Vayupak Fund and Government Savings Bank are combined.

2 days ago the PM appointed a 9 member committee to handle the restructuring plan for the ailing airline, chaired by trusted sidekick Deputy PM Wissanu Krea-ngam. The other members are mostly state officials, including the permanent secretaries of the Finance, Transport and Justice ministries as well as the secretary-general of the Securities and Exchange Commission. The four additional board members will help draw up a restructuring plan for the airline.

But critics are warning of potential built-in pitfalls stemming from numerous conflicts of interest. There is no ‘aviation’ expertise and the “jobs for the boys” criticism will not go away with the new board. They all have impressive backgrounds as senior executives in the private and public sectors.

The airline was already swimming in debt when one of the new board members, Piyasvasti Amranand, became Thai Airways president in 2009. He cut costs at the time by slashing salaries and jobs and reducing unnecessary expenditure. At the same time he was the person responsible for locking the airline into a major aircraft acquisition and starting up the subsidiary Thai Smile – originally meant to be competition for regional low-cost carriers but eventually morphed into a domestic offshoot for Thai Airways leaving the parent company mostly with the international routes.

The other new board members are all politically connected with Prayut and have served in his cabinets or as political advisors. They have all had extensive public service experience heading up multiple Thai enterprises.

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Business

No role for Transport Ministry in Thai Airways rehab plan

Maya Taylor

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No role for Transport Ministry in Thai Airways rehab plan | The Thaiger
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After initially insisting on having a say in the management of the rehabilitation plan for the beleaguered Thai Airways, the Ministry of Transport has conceded that, with its holding in the airline reduced to less than 50%, it no longer has any jurisdiction over what is now a listed public company.

Deputy Transport Minister Thaworn Senneam says the struggling carrier is no longer a state organisation under its control and administration of the court-approved rehabilitation plan now sits with the Finance Ministry.

Thai PBS World reports that both ministries had clashed over who would oversee the plan as, until filing for bankruptcy protection, the airline was both a listed public company with the Finance Ministry as its largest shareholder, and a state enterprise under the Transport Ministry.

The Transport Ministry had hoped to recommend 4 people as members of a “super board” that would oversee the administration of the airline’s rehabilitation plan, with other members to be nominated by the Finance Ministry.

The jockeying for position of the ‘super board’ has already begun with prominent names publicly putting themselves forward.

SOURCE: Thai PBS World

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