7 Jan 2021
Econ Digest
With exports of non-inverter air conditioners on a decline trend over the past year, Thailand has the opportunity to benefit from the increased demand for general inverter air conditioners in emerging countries. However going forward, in addition to its original competitor China, Thailand may face c... Read more
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14 Dec 2020
KResearch assesses that the Federal Reserve (Fed) will likely keep its policy rate steady at 0.00-0.25% and will not announce additional monetary easing tools during the Federal Open Markets Committee (FOMC) meeting slated for December 15-16, 2020, ... Read more
8 Dec 2020
Gold has been one of the most profitable assets of 2020. On December 4, 2020, the spot gold price in the global market rose 21% from the end of last year to USD1,840 per ounce, while the domestic gold price rose 22% to THB26,250 per Baht(Thai unit of measurement). For new investors interested in inv... Read more
26 Nov 2020
On November 20, 2020, the Bank of Thailand (BOT) issued measures aimed at easing pressure on Baht to help balance the flow of funds into and out of Thailand. One of the measures announced on the same day was regarding BOT’s foreign currency deposit (FCD) account, which allows Thais to deposit funds ... Read more
23 Nov 2020
There was an influx of capital flows in Thai stock and bond markets after the US Presidential election and amid hopes for COVID-19 vaccines. During November 1-19, 2020, such capital flows reached THB69.7 billion, representing the highest level in 17 months, while the Baht hit a new 10-month high of ... Read more
18 Nov 2020
The Thai economy in the third quarter of 2020 contracted at a better-than-market-expected rate of -8.0% YoY as economic activities recovered, partly due to a smaller-than-expected contraction in exports from pent-up demand after the easing of lockdown measures in Thailand and many other countries. M... Read more
Preliminary results show that Joe Biden from the Democratic Party has been elected the 46th President of the US, leading to a major shift in investment portfolios around the world. Thai stock and bond markets are among Asian money and capital markets that benefited from this shift of investment. ... Read more
The KR Household Economic Condition Index (KR-ECI) increased from 38.1 in September 2020 to 39.5 in October of the same year... Read more
17 Nov 2020
KResearch expects that the Monetary Policy Committee (MPC) will keep its policy rate steady at 0.50% during the meeting scheduled for November 18, 2020 ... Read more
11 Nov 2020
In 2020, we have seen fluctuations in asset prices around the world, including gold, stock and alternative assets such as Bitcoin. Although all assets have faced heavy selloffs from investors seeking liquidity during the COVID-19 pandemic, the prices of various assets have gradually recovered after ... Read more
10 Nov 2020
Thailand's domestic tourism market has been continuing to grow after the COVID-19 situation in the country eased and the government launched measures to stimulate domestic tourism. Based on data provided by the Ministry of Tourism and Sports, the number of domestic tourists in the third quarter of 2... Read more
9 Nov 2020
Under the assumptions that there will be no serious resurgence of the coronavirus (COVID-19) pandemic in Thailand, that the majority of people in Thailand will receive COVID-19 vaccines in late 2021, and that the domestic political situation will not significantly impede the government’s budgetary d... Read more
5 Nov 2020
Thai exports to the US in 2021 will mainly benefit from the recovery of the US economy, which is expected to have passed its lowest point this year. Meanwhile, the policies of the new US leader will become another factor that simultaneously drive the US economy and support Thai exports to accelerate... Read more
30 Oct 2020
The hotel and accommodation industries are sectors of the tourism industry that have been hard hit by the coronavirus (COVID-19) pandemic, and especially in the first half of 2020 have suffered a revenue loss of approximately THB256 billion due to the absence of foreign and Thai tourist arrivals. Th... Read more
28 Oct 2020
For the past several years, Thailand's steel industry has encountered challenges that stem from price competition against steel imports from China due mainly to steel oversupply in China’s market. Since 2014, Chinese steel manufacturers have cleared out their excessive stock via exports to markets i... Read more
27 Oct 2020
Regarding the 2020 US presidential election held on November 3, 2020, KResearch views that if Joe Biden becomes the new President, the US economy may grow at least 3.0% in 2021, which would be higher than the projected growth of less than 2.0% in the case where Donald Trump secures his reelection du... Read more
26 Oct 2020
Thai exports in September 2020 stood at USD19.6213 billion, or a contraction of 3.9%YoY, amid a rise in global demand compared to the previous month. Thai exports over the first nine months shrank 7.3%YoY, driven by the exports of electronic products and electrical appliances that grew 11.6% after f... Read more
22 Oct 2020
The Chinese economy in the third quarter of 2020 grew 4.9%YoY, continuing the positive trend from the second quarter of 2020 in which a 3.2% growth YoY was seen. This expansion can be attributed to the gradual recovery of private consumption, particularly retail sales that grew 3.3% YoY in September... Read more
19 Oct 2020
The government has introduced a series of spending stimulus measures. Among them is the “Kon La Khreung” program (Let’s Go Halves or the government’s 3,000-Baht cash handout program) to help small daily necessity product retailers, such as “Blue Flag” stores, groceries and small retail shops. ... Read more
16 Oct 2020
After being hit by the COVID-19 pandemic, especially during the lockdown period, many business organizations in Thailand have implemented work-from-home measures. Therefore, the continuity of business activities has become an urgent task and will support cloud solutions services in 2020 to grow expo... Read more
15 Oct 2020
The KR Household Economic Condition Index (KR-ECI) in September 2020 stood at 38.1, improved slightly over that reported for August 2020, suggesting that Thai households were more optimistic about their living conditions. The 3-month Expected KR-ECI also increased to 39.7 in alignment with the gradu... Read more
14 Oct 2020
Kin Jae (Vegan Food) Festival this year will fall on October 17-25, 2020. Normally, the festival is well received by regular consumers groups including Thai-Chinese people who eat vegan food as a religious practice, and new-generation consumers who eat vegan food for health purposes. However, sluggi... Read more
12 Oct 2020
The coronavirus (COVID-19) pandemic has caused unprecedented losses for tourism activities around the world. In the first half of 2020, the number of international tourists decreased by more than 439 million compared with the same period last year, and the loss in international tourism revenue was a... Read more
9 Oct 2020
The government has launched its “Shop Dee Mee Kuen” program (Shop and Payback), which offers taxpayers income tax deductions when spending up to THB30,000, in order to stimulate consumption over the 70 day period from October 23rd to December 31st 2020. KResearch expects that the program will help b... Read more
8 Oct 2020
Under the Digital Personal Loan Business Rules issued by the Bank of Thailand on September 15, 2020, lenders can use alternative data, e.g. receipts from water bills, electricity bills and telephone bills, as well as online spending information, to assess the borrowers’ ability or willingness to rep... Read more
7 Oct 2020
In September 2020, China sent positive signals regarding its 14th Five-Year Plan for National Economic and Social Development (2021-2025), which will be implemented starting in 2021. In particular, the issue of increasing food reserves as a source of food security again at an accelerated pace may le... Read more
6 Oct 2020
The total market value of Thailand’s medical equipment and device industry in 2019 exceeded THB90 billion. Medical equipment and devices are divided into: 1. Disposable medical supplies such as medical gloves, syringes and catheters; 2. Durable medical supplies such as hospital beds and wheelchairs;... Read more
5 Oct 2020
The Ministry of Commerce has announced the Notification Regarding the Prohibition of the Importation of Electronic Waste into the Kingdom B.E. 2563, effective from September 15, 2020, in an effort to save the environment and protect public safety. ... Read more
The latest report from the Bank of Thailand revealed that Thailand’s 2Q20 household debt had risen following the disruption of economic activities during the COVID-19 pandemic. The outstanding household debt hit an 18-year high of 83.8% of the GDP, rising from 80.1% of the GDP recorded during 1Q20. ... Read more
3 Oct 2020
Money and capital markets fluctuated following the news that US President Donald Trump had been diagnosed with coronavirus (COVID-19). Risky assets experienced sell-offs, while the direction of the US Dollar was mixed (it largely depreciated against the Yen but appreciated against other currencies).... Read more
2 Oct 2020
The new stimulus package called “Kon La Khreung” (Let’s Go Halves or the government’s 3,000-Baht cash handout program), effective October-December 2020, sets conditions that differ from previous spending stimulus measures. In addition to the subsidy that is capped at 10 million people and at THB3,00... Read more
1 Oct 2020
Amid the rising plastic waste crisis, where Thailand is among the countries throwing the most plastic waste into oceans, we have seen cooperation between government agencies and private sectors in launching campaigns and incentive measures to reduce the use of plastics from January 1, 2020, a good s... Read more
30 Sep 2020
Presently, cross-border data flows are imperative for business expansion and global trade as they have driven global economic growth by 0.3%, or around USD2.6 trillion in value, over the past decade. Business organizations must rely on cross-border data flows in order to better understand the market... Read more
25 Sep 2020
Myanmar has recently announced several requirements for truck drivers from Thailand: It is now necessary for drivers crossing the Myanmar border via Chiang Rai’s Mae Sai checkpoint to be replaced with Myanmar nationals. Furthermore, only six vehicles of any kind bearing Thai license plates are allow... Read more
24 Sep 2020
After the 5G spectrum auction took place in early 2020, telecommunications operators have accelerated their investment in 5G networks covering all 77 provinces across the country, especially in cities that are the potential areas for 5G services, in order to compete for leadership within the realm o... Read more
23 Sep 2020
Thailand is a major fruit production base globally; although the world economy is facing a crisis due to the COVID-19 outbreak in 2020, the total value of Thai fruit exports this year should be able to sustain a growth to THB120-150 billion, or 6.1-10.5% year-on-year. Along with the need to accelera... Read more
22 Sep 2020
Animal welfare is becoming a widely discussed topic in the food industry. Eggs produced by cage-free laying-hens, also known as “cage-free eggs”, are one of the products for which the Department of Livestock Development is preparing to set standards for certification, in addition to other production... Read more
KResearch expects that the Monetary Policy Committee (MPC) will keep its policy rate steady at 0.50% at least until the end of this year during its meeting slated for September 23, 2020 to maintain the monetary policy space. The MPC may view that a policy rate cut to near zero is not necessary at th... Read more
21 Sep 2020
Amid the domestic political turmoil that the UK has grappled with since the initiation of the Brexit process in 2016, and based on the approaching time constraint and the latest development whereby the UK government plans to introduce the drafting of the Internal Market Bill which would allow the UK... Read more
18 Sep 2020
The Prime Minister’s Office has issued a proclamation of Prohibition on Sales of Alcoholic Beverages by Electronic Means B.E. 2563 on August 7, 2020, the main contents of which are: 1) It is prohibited for any person to sell alcoholic beverages or provide services related to alcoholic beverages dire... Read more
17 Sep 2020
The KR Household Economic Condition Index (KR-ECI) in August 2020 and the 3-month Expected KR-ECI stood at 36.4 and 38.4 respectively, increased from the survey in July 2020, suggesting that the perception of households towards living conditions improved in line with the relaxation of lockdown measu... Read more
15 Sep 2020
Although Thailand’s beverage business has recently shown a slowing trend, it is expected that healthy beverages will become products that meet the needs of the new generation of consumers. In particular, vitamin water (a category of water plus beverages) has become an interesting new segment of the ... Read more
KResearch expects that the Federal Reserve (Fed) will maintain its policy rate at 0.0-0.25% at its meeting during September 15-16, 2020, ... Read more
14 Sep 2020
The COVID-19 pandemic has been an important catalyst in transforming the way Thai consumers conduct funds transfers and pay for goods and services. Such trends have given rise to the “New Normal”, which is geared towards making money transfers and purchases that do not require physical contact, othe... Read more
11 Sep 2020
The Chinese e-commerce market is the largest in the world with a value of around USD1.5 trillion in 2019, accounting for approximately 55% of the global e-commerce market value, and larger than the value of the US e-commerce market by two times. As the economy grows and purchasing power rises, Chine... Read more
10 Sep 2020
The end of the London Interbank Offered Rate (LIBOR) began about eight years ago when financial regulators in the US and Europe discovered that certain financial institutions deliberately reported distorted and false LIBOR rates for certain benefits. The incident severely damaged the credibility of ... Read more
9 Sep 2020
The Federal Reserve (Fed) Chairman Jerome Powell announced a major adjustment to monetary policy at the Economic Policy Symposium held in Jackson Hole on August 27, 2020. The Federal Open Market Committee (FOMC) has unanimously approved a shift in Longer-Run Goals and Monetary Policy Strategy, by ad... Read more
8 Sep 2020
The influence of the Sin Lagu and Higos storms during July and August caused continuous rain, flash flooding and floodwaters in many areas and resulted in damages in many provinces. KResearch views that the flooding in many of the northern and northeastern provinces of Thailand may not significantly... Read more
3 Sep 2020
The COVID-19 pandemic has affected the global automobile supply chain since the beginning of 2020, leading global automakers and parts manufacturers, especially Japanese automakers, to adopt new business models in order to reduce risks. Production has shifted from lean production that originally foc... Read more
1 Sep 2020
28 Aug 2020
KASIKORN RESEARCH CENTER (KResearch) views that the Thai economy may have seen its trough in the second quarter on a QoQ basis. GDP for 2020 is projected to see a 10-percent contraction. Meanwhile, the Thai economy is likely to show a U-shaped recovery compared to the same period of last year. The f... Read more
27 Aug 2020
In response to the food delivery business in Thailand, a new type of restaurant called Cloud Kitchen is undergoing a growth trend as food delivery becomes popular with consumers. This has been taking place especially during the spread of the COVID-19 pandemic, prompting an approximately 1.5-fold inc... Read more
26 Aug 2020
The “Everything But Arms” (EBA) preferential trade arrangement of the European Union (EU) has played a significant role in changing Cambodia’s trade structure, especially after the year 2011 when the EU relaxed the rules of origin for exports from Cambodia. Thanks to this arrangement, exportation fr... Read more
25 Aug 2020
Thailand’s exports during the first seven months of 2020 contracted 7.7% YoY, while the export value in July alone stood at USD18,819 million, shrinking 11.4% YoY. Excluding oil, gold and arms shipments, Thai exports, however, contracted 13.0% YoY. Gold exports reverted to growth in July in line wit... Read more
20 Aug 2020
Thailand will become a fully aged society [1] in 2024, becoming a super-aged society [2]within the next 12 years or in 2032. There will be a marketplace of products and services designed to make life easy and safe, specifically for those of the aging population with purchasing power or savings. The ... Read more
19 Aug 2020
As the new generation has shifted to a boom in consumption of alternative products in which the carbon dioxide emissions of production processes are reduced in the long term, such as biodegradable plastics and meat substitutes from plants/laboratories, etc., this business model has begun to attract ... Read more
18 Aug 2020
The Thai economy shrank by 12.2%YoY in 2Q20, which is better than the 13.0% to 17.0%YoY contraction projected by the market, thanks to the expansion of government spending and investment under various economic stimulus measures, especially the THB5,000 relief fund per head for 3 consecutive... Read more
14 Aug 2020
The crisis of the COVID-19 pandemic has continuously driven the growth of the number of users of social media applications, which are becoming the main channel for interaction between consumers while maintaining social distancing, and which result in a large amount of consumer information rapidly fl... Read more
13 Aug 2020
At the recent 43rd Session of Codex Alimentarius Commission meeting, the issue of improving food safety management in the food production chain were discussed, for which operators including upstream producers, processing plants, retail stores and restaurants must prepare, as CODEX is preparing to an... Read more
11 Aug 2020
The KR Household Economic Condition Index (KR-ECI) stood at 35.3 in July 2020, declining from 36.0 in June, because households were more concerned about debt burden, expenses and domestic prices of goods and services. Although the Bank of Thailand (BOT) has introduced the second phase of debt relief... Read more
6 Aug 2020
Due to the outbreak of the COVID-19 epidemic in Thailand, the government has imposed stringent measures to temporarily restrict the commercial sector from providing services, severely affecting the restaurant industry, only retaining takeaway channels with food being delivered to residences. As a re... Read more
4 Aug 2020
KResearch estimates that at the Monetary Policy Committee (MPC) Meeting on 5 August, the Committee will put the policy rate on hold at 0.50% to gauge the domestic economic conditions, especially for 2Q20 GDP which is expected to be the largest contraction of the year. If the economic contraction is... Read more
31 Jul 2020
Gluten-free foods are foods that do not contain the gluten protein found in wheat, barley and oats. Gluten ingestion affects the immune system of people who are allergic to this type of protein, known as a gluten allergy or celiac disease, causing abnormalities in the digestion system and in food ab... Read more
30 Jul 2020
Thailand is a major exporter of primary agricultural products in the world, but given the fluctuation of the prices of agricultural products while the global economy adapts to the new normal, the development of added value for agricultural products is an urgent task. The processing of agricultural p... Read more
29 Jul 2020
Thailand’s 2020 Environmental Performance Index (EPI) has risen to 78th in the world, up from 121st in 2018, which is better than the global average and better than similarly ranked countries such as China and the Philippines. However, with the current problems of PM 2.5 particulates, water and drou... Read more
27 Jul 2020
KResearch expects that the Fed will maintain its policy rate at 0.0-0.25 percent during the Monetary Policy Committee Meeting on July 28-29, 2020, as the measures previously implemented by Fed should be sufficient to support a US economy that shows weak tendencies and will take longer to recover. ... Read more
25 Jul 2020
The value of Thai exports in June 2020 stood at USD 16,444 million, shrinking 23.2 percent YoY. As a result, Thai exports contracted by 7.1 percent YoY during the first half of 2020 due to the severe impact of the COVID-19 pandemic and the enforcement of lockdown measures abroad, which resulted in w... Read more
24 Jul 2020
Digital lending is a loan service carried out through online platforms such as applications and websites, and which uses alternative data other than information from bank statements or income for credit approval while using AI technology or Big Data Analytics to speed up the credit approval process.... Read more
21 Jul 2020
The recent revocation of Hong Kong's special status by the United States on July 15, 2020, serves to reignite its ongoing trade feud with China, ahead of the 2020 United States presidential election. KResearch views that the United States has persistently exploited China's sensitive issues, utilizin... Read more
20 Jul 2020
The Chinese economy reverted to a growth of 3.2 percent YoY in 2Q20, versus the 6.8 percent YoY contraction reported for 1Q20, thanks to the government's effective measures in combating the coronavirus (COVID-19) pandemic, thus allowing economic activity in the country to return to normalcy. Its ind... Read more
17 Jul 2020
It has been almost two months since tensions between China and the US in regarding to China’s national security law for Hong Kong surfaced, provoking new global geopolitical risks. Recently, President Donald Trump signed an executive order ending preferential treatment for Hong Kong that had existed... Read more
16 Jul 2020
China’s digital currency development scheme is often viewed as a tool that can be used by Chinese authorities to reduce the influence of the US dollar (USD), while the COVID-19 pandemic has turned contactless payment systems into a factor that is accelerating the adaption of related parties, promoti... Read more
15 Jul 2020
The Ministry of Commerce held a meeting in June 2020 to revise the Announcement of the Ministry of Commerce on the Importing of Rice into the Kingdom of Thailand under the ASEAN Free Trade Agreement B.E. 2553 (2010), aiming to ensure that the import of rice into Thailand properly complies with the A... Read more
14 Jul 2020
KResearch conducted a survey on the living conditions of Thai households in June 2020, at which time the the COVID-19 outbreak in Thailand was continuously improving with no new domestic infection cases reported for months in a row, while the government had relaxed some preventive measures at differ... Read more
13 Jul 2020
The COVID-19 pandemic has not only disrupted the production of auto tires in the U.S., but has also led the affected United Steelworkers union to file anti-dumping petitions against imported tires from Thailand, South Korea, Vietnam and Taiwan, due to a significant increase in the importation of aut... Read more
9 Jul 2020
Although Thailand’s outstanding household debt fell in 1Q20 compared to the previous quarter, the household debt level remains high (80.1% of GDP), as households continue to take on large-sum debts, including loans for house purchases and auto purchases, in line with operators’ marketing campaigns t... Read more
8 Jul 2020
The solar power project for household rooftops is a project to purchase solar power generated by household rooftop solar panels. Excess electricity will be purchased by Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) at a price of THB1.68 per kilowatt-hour (unit) ... Read more