Economy
PM says Thailand must spend in dollars to weaken the baht

PHOTO: Bloomberg
“We have to think how we will spend in dollars in many ways to help weaken the baht.”
Thai PM Prayut Chan-o-cha says the nation should think about ways to spend in US dollars to help weaken Thailand’s booming currency. Speaking in Bangkok the PM said that the private sector also needs to help with the process.
“A current-accounts surplus, capital inflows and high foreign reserves are among the causes of baht strength,” he was quoted in the Bangkok Post.
The comment is a repeat of earlier government calls to increase imports, which require converting baht into dollars, economists say.
Kampon Adireksombat, head of market research at Siam Commercial Bank speculated that the PM may be urging people to spend more by converting baht into dollars.
“He wants people to import more and invest more. If we spend more, we help reduce our trade surplus.”
The baht has risen 8.8% against the dollar during 2019, making it the best performing currency among the world’s emerging markets. The Bank of Thailand relaxed rules on capital outflows in November, its latest effort to slow an appreciation that’s starting to cripple exports and tourism.
Thailand’s National Economic & Social Development Council predicts a final figure of 2.6% GDP growth for 2019, which, if it eventuates, will be the lowest in five years.
SOURCE: Bangkok Post
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Increase agreed for Thailand’s minimum wage

PHOTO: Chiang Mai Citylife
Thailand’s minimum daily wage is going up. But not by much.
The National Wage Committee has singled out nine provinces for a 6 baht increase in the minimum daily wage, while the rest of the country gets an increase of 5 baht. The Permanent Secretary of Labour, Suthi Sukosol, confirms the nine provinces are Chonburi in eastern Thailand, Phuket in the south, and Bangkok, Pathum Thani, Nonthaburi, Samut Prakan, Samut Sakhon and Prachin Buri in central Thailand.
The highest daily minimum wage in the country will now be on offer in Chonburi and Phuket, at 336 baht a day. The lowest is in Narathiwat and Pattani at 313 baht a day.
The increase is being awarded to reflect the economic situation in the country and once approved by Cabinet, should be in place from January 1, 2020.
Don’t spend it all at once!
SOURCE: The Nation
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Thai central bank calms businesses concerns over strong baht

The Bank of Thailand is attempting to quell business concerns over the strong baht, saying the currency will eventually reverse its upward trend and that more two-way movement in relation to the US dollar is expected in 2020.
The central bank’s deputy governor Mathee Supapongse says that investors now see the baht as overvalued, given the kingdoms sluggish economic forecast (much of forecasts connected to the strong local currency), a narrowing current account surplus and a thin spread between Thai and other nations’ rates.
“The baht might no longer be seen as a safe haven. The baht is starting to reverse its upward trend.”
In the last couple of years the baht has strengthened significantly against the US$. It’s gained around 7.5% this year alone, making it Asia’s top performing currency.
“The central bank is not complacent about the recent baht surge. We’ve imposed measures to rein it in, including tightening regulations on non-resident baht accounts and periodically stepping into the foreign exchange market.”
Last month the central bank relaxed rules related to foreign currency profits and foreign securities investment, to encourage capital outflows and limit the baht’s explosive growth.
These included allowing exporters to park foreign currency proceeds abroad without a time limit, enabling retail investors to invest up to US$200,000 per year in foreign securities without the need for a Thai intermediary, and opening up outward transfers, with exceptions for a few specific purposes.
SOURCE: Bangkok Post
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No tax on Chim Shop Chai stimulus package perks

The government will waive personal income tax on the financial privileges given to consumers under the Chim Shop Chai (Eat Shop Spend) economic stimulus programs that have been run over the past two months.
This means the 1000 baht handout and the ‘cash-back’ rebate amounts won’t be subject to tax. The government spent 19 billion baht on the three phases of the campaign, according to a spokeswoman.
In the first two phases, consumers who registered were given 1000 baht and ‘cash back’ rebate perks, while the third phase offered only the rebates. In all cases the packages were designed to encourage locals to travel, outside of their residential province, and spend on a range of food, retail and hospitality options on a specially-designed App.
A Finance Ministry spokesman said recently that from the start of the campaign in September until November 28, nearly twelve million people had registered, with a combined spend of 16.535 billion baht.
SOURCE: The Nation
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