BANDAR SERI BEGAWAN – Brunei will introduce a new minimum wage policy across all industries in the private sector, His Majesty announced on Saturday.

In his customary address to mark his 77th birthday, Sultan Haji Hassanal Bolkiah said the move was “a step towards strengthening the lives and well-being of the people”, and urged the business sector to support the new policy.

Minimum wage policy will be implemented in two phases and will apply to both local and foreign workers, whether they are working full-time or part-time.

The first phase will cover the banking and finance sector and the ICT sector, while minimum wage for other sectors will be announced at a later date, the Labour Department said in a statement issued to media.

Full-time workers in banking, finance and ICT are entitled to a minimum salary of $500 per month, while part-time workers are entitled to at least $2.62 per hour.

Source: The Scoop

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The International Monetary Fund (IMF) projected global growth for 2023 to be slower at 2.8 per cent compared to 3.4 per cent in 2022, before rising to three per cent in 2024, the  Brunei Darussalam Central Bank (BDCB) noted in its Policy Statement 1/2023.

Meanwhile, the domestic economy contracted by 1.6 per cent in 2022, largely driven by a contraction in the oil and gas sector. The domestic economy is expected to improve this year mainly contributed by ongoing foreign direct investments projects. However, downside risks remain with expectations of slower global demand, lower crude oil and liquefied natural gas production levels, and uncertainty in the crude oil market.

As central banks globally are still attempting to tame inflation, the Monetary Authority of Singapore in its April 2023 Monetary Policy Statement, decided to maintain its latest policy stance as the effects of its monetary policy tightening are still working through the economy and is expected to continue to lower inflation further.

Taking this and available Consumer Price Index data into consideration, BDCB’s inflation forecast for the Sultanate for 2023 is expected to be within the range of one per cent to two per cent. BDCB noted that there was a slight decline in the financial sector’s total assets of 0.3 per cent year-on-year with total asset value of BND23.9 billion as of Q1 2023, of which BND14.1 billion (59.1 per cent) was held by the Islamic finance sector. Deposit-taking institutions made up 91.9 per cent of the total financial sector assets with an asset base of BND21.9 billion. The banking industry continues to remain resilient with an aggregate Capital Adequacy Ratio of 21.3 per cent as of Q1 2023. Additionally, in line with the increasing interest/profit rate environment an upward trend was recorded in the banking sector’s profitability.

A new report from Krungthai Bank shows that the number of internet users in Thailand has grown by 13.7 million people in the past five years, reaching a total of 61.2 million users.

Social media use is also on the rise, with Facebook and Line being the most popular platforms.

Key Takeaways

- Online shopping is projected to soar this year and next, with an estimated value of 634-694 billion baht, growing at an average rate of 6% per year, with personal and household care products, beverages, and food being the popular product categories.

- The number of Thais accessing the internet has increased by 13.7 million people in 5 years, reaching a total of 61.2 million users, with social media usage surging to 52.3 million people, dominated by Facebook and Line.

- Various businesses have increasingly prioritised online channels, evident from the average 12.4% yearly expansion of online advertising expenditure over the past five years, while offline advertising has experienced a 3% decline annually.

The growth in internet use is attributed to private sector service providers expanding their coverage nationwide and the government’s policies to improve internet accessibility since 2019. Thailand ranks fourth for fixed broadband internet speed and 15th for mobile internet, with nearly 70% of Thais using mobile phones for web browsing.

Google, YouTube, and Facebook are the top three most visited sites in Thailand. Thai consumers prefer online purchasing of goods and services, particularly personal and household care products, beverages, and food.

Source : Thailand Business News

Thailand's economy is projected to grow 3.9% this year, up from a previous forecast of 3.6%, helped by private consumption growth and a recovery in tourism, the World Bank said on Wednesday.

Southeast Asia's second-largest economy expanded 2.6% in 2022, when its tourism sector began to rebound after broad pandemic-related travel curbs were eased.

Growth is expected at 3.6% in 2024 and 3.4% in 2025, with tourism and private consumption remaining the primary drivers of growth as external demand weakens, the bank said in a statement.

The return of tourists, particularly from China, has strengthened the tourism outlook. Arrivals are projected to reach a greater-than-expected 28.5 million this year, 84% of the pre-pandemic 2019 level, it said.

However, downside risks remain as weaker-than-expected global growth and political uncertainty pose key challenges to the near-term growth outlook, the bank said.

Thailand is in the process of forming a new government after May's election, but doubts linger whether the leader of the winning Move Forward party has enough support to be voted prime minister.

Source : REUTERS

Thailand's business sentiment improved in June as confidence among manufacturing and non-manufacturing sectors increased, data released by the central bank showed Monday.

According to the Bank of Thailand (BOT), the country's business sentiment index rose to 51.0 last month from 49.7 in May as most sub-indices increased, led by performance and production.

The manufacturing index rose particularly in the automotive, steel and petroleum-related industries due to significantly higher confidence in performance and production, the BOT said in a statement.

Respondents in the hotel and restaurant sectors reported increased confidence because of the tourism recovery, whereas respondents in other non-manufacturing sectors reported roughly stable confidence, the statement said.

The reading was based on a survey of 509 respondents from large- and medium-sized firms, the central bank said.

Source : The Manila Times

Thailand’s Government Pharmaceutical Organization (GPO) has established a cooperation with a South Korean biotech company to improve the manufacturing of influenza vaccines in the country.

The GPO signed a Memorandum of Understanding with South Korea’s biopharmaceutical firm SK Bioscience on the development of a new technology for the production of influenza vaccine, using a cell-based technique. This cooperation is to replace the traditional manufacturing method of inactivated influenza vaccine using eggs with the cell-based technique, also called cell culture, where flu viruses are grown in cultured cells instead of chicken eggs.

Dr. Mingkwan Suphannaphong, Managing Director at the GPO, said this cooperation will see SK Bioscience transfer its technology on the bottling process for future vaccines to the GPO. The South Korean company is a manufacturer of pre-filled and ready-to-use influenza vaccines, covering 3 or 4 strains of the virus.

The second phase of this technological transfer will cover all aspects of manufacturing, allowing the GPO to be able to produce flu shots using this new technique on its own.

The GPO is expected to introduce this new product in Thailand next year, with the product fully manufactured domestically to be introduced in 2 years. The GPO and SK Bioscience also have plans to co-develop several new vaccines, including the PPV vaccine and vaccines against shingles.

Source : NATIONAL NEWS BUREAU OF THAILAND

Thailand's digital asset market is expected to grow further thanks to the efforts being made by government agencies to keep up with global trends, experts said during a roundtable discussion on Wednesday.

Brooks Entwistle, senior vice president and managing director of crypto solution provider Ripple, noted that Thailand's digital asset market had grown significantly and advised the related sectors to work together on developing a regulatory framework to allow the ecosystem to further expand.

He explained that a clear regulatory framework is necessary to earn the confidence of consumers and investors.

Ripple's policy director for Asia-Pacific, Rahul Advani, said one of the reasons behind the growth of the digital asset market in the region is the ease and convenience it has brought to international money transfers. Old-fashioned transfers are slow and expensive, especially in terms of foreign currency where losses are usually experienced in exchange rate variations.

He added that Thailand's digital asset market has grown exponentially despite the Bank of Thailand (BOT) and Securities and Exchange Commission (SEC)'s focus on consumer protection. “Thai government agencies are good partners in digital asset market development,” he said, adding that he expected the market to evolve further as government agencies openly engage in the technology.

Angela Ang, senior policy adviser of blockchain intelligence company TRM Labs, said Thailand had been among the early adopters of digital assets.

This has allowed the country to improve its regulatory framework to meet consumers’ and investors' needs, she said, adding that the country's clear regulations have helped boost confidence among consumers and investors.

Expressing the hope that Thailand's market would expand further to meet the next age of digital assets, she said compliance in this second age will be influenced by three key themes:

• Adapting regulatory and compliant approaches to decentralised finance (DeFi)
• Rise of supervisory transparency
• Moving from technical compliance to effectiveness

Source : THE NATION THAILAND

Thailand's business sentiment improved in June as confidence among manufacturing and non-manufacturing sectors increased, data released by the central bank showed Monday.

According to the Bank of Thailand (BOT), the country's business sentiment index (BSI) rose to 51.0 last month from 49.7 in May as most sub-indices increased, led by performance and production.

The manufacturing index rose particularly in the automotive, steel, and petroleum-related industries due to significantly higher confidence in performance and production, the BOT said in a statement.

Respondents in the hotel and restaurant sectors reported increased confidence because of the tourism recovery, whereas respondents in other non-manufacturing sectors reported roughly stable confidence, the statement said.

The reading was based on a survey of 509 respondents from large and medium-sized firms, the central bank said.

Source : Xinhua

"TikTok Thailand pledged more active collaboration with local Thai agencies and businesses in order to help promote Thai brands and products throughout Southeast Asia, a senior executive from the video-sharing application told a press conference on Wednesday."

The remarks came just a few weeks after TikTok chief executive Chew Shou Zi announced an ambitious billion-dollar investment to support regional businesses, particularly small and medium-sized enterprises.

Sirinit Viriyasiri, TikTok Thailand's head of business marketing, said it is still too early to tell what new partnerships or features will be added. TikTok Thailand, however, can assure Thai users that the country is a part of this massive investment.

Sirinit then gave an example of an upcoming project in which TikTok collaborated with a public agency to promote the One Tambon One Product project, which stimulates entrepreneurship at the local level.

She said that additional tools and functions will appear on TikTok Shop. Most tools will help business owners run their businesses more smoothly as well as create creative and fun content to promote products.

"Our features, such as video shopping ads, live shopping ads, and reach and frequency are helping to maintain users' good experience alongside the ‘shoppertainment’ trend," she said.

‘Shoppertainment’ is a buzzword for an online shopping trend in which users want to have fun and be entertained while searching for a product to buy, Sirinit explained.

According to TikTok, amusing content influences more than 77 percent of consumers' purchasing decisions, while two of three new buyers of a brand complete their purchase based on emotional demands.

To respond to and meaningfully connect with consumers, brands must stress shoppertainment on TikTok, Sirinit said, adding that 70 percent of consumers trust TikTok content when making purchasing decisions.

Furthermore, one-fourth of TikTok users consider buying on the TikTok Shop due to entertaining content from creators, celebrities, and brands.

Sirinit said that TikTok Shop in Thailand will be the home of a new kind of shopping culture, where a single piece of content can quickly go viral and create demand globally, and where consumers can quickly discover promotional campaigns, content linked to shopping, and access to a variety of product assortments.

"We redefine Thais' shopping experience through shoppertainment – combining TikTok's unique fun and entertaining content, followed by commerce," she said.

According to a recent study by TikTok and Boston Consulting Group, the "shoppertainment" trend will usher in a staggering US$1 trillion in business opportunities across the Asia Pacific region by 2025, with Thailand seeing $12.4 billion in growth. The study also found that 81% of Asia Pacific TikTok users admitted that video content influenced their recent purchases.

In Thailand, 97% of TikTok users took action after watching ads on TikTok during the sale season, according to Toluna's findings.

When compared to non-TikTok users, TikTok users are 3.5 times more willing to spend 10,000 - 17,600 baht during a mega sale.

Sirinit pointed out that the findings could ensure that business owners get discovered and sell their products to TikTok users.

More than 325 million consumers in Southeast Asia and more than 15 million businesses in the region use TikTok each month.

Wednesday’s press conference took place on the same day as TikTok's “Shoppertainment Summit” in Jakarta. The summit promotes TikTok's as a platform where content and commerce meet. Its tools and experiences deliver a commerce experience that is led by entertainment.

Source :  THE NATION THAILAND

The United States has for the first time allowed Thailand to export its pomelo to the country, as Thailand eyes more markets for its delicious fruit.

Thailand has shipped its first batch of pomelo to the United States, following a new agreement allowing the export of four pomelo varieties from Thailand to the United States.

The first batch, which included the Thong Dee, Khao Yai, Khao Namphueng, and Khao Tangkwa varieties will be featured at Sawasdee DC Thai Festival on 2-4 July in Washington DC, to celebrate the U.S. Independence Day and the Thailand-U.S. diplomatic relations. The fruit was shipped together with other Thai fruits such as mango and mangosteen, weighing 864 kilograms in total. This shipment was dispatched on 26 June.

Government Spokesman Anucha Burapachaisri said caretaker Prime Minister Gen Prayut Chan-o-cha admired this success, which helps broaden international markets for Thai produce.

The United States Department of Agriculture requires pomelo exported from Thailand to be treated with gamma irradiation at the dosage of 400 Gray for 3 hours. This process is performed at Thailand Institute of Nuclear Technology. The exported fruits are also required to be sorted and processed at authorized facilities.

Thailand is currently allowed to export 8 kinds of fruits to the United States, namely mango, lychee, longan, pineapple, mangosteen, dragonfruit, rambutan, and pomelo. The Department of Agriculture currently has a guideline to help private firms reduce cost and increase the volume of each batch of export. If successful, this guideline could be a tool for businesses to apply commercially.

Source NATIONAL NEWS BUREAU OF THAILAND

Airports of Thailand is confident that its passenger target for 2023 at 95 million will be achieved, thanks to a swift recovery in the tourism sector.

Airports of Thailand (AOT) has announced that the country is on track to hit the 95 million passenger number across all of its 6 airports this year. AOT’s Chief Executive Officer Kirati Kitmanawat said 66.38 million passengers traveled through AOT-managed airports in the first 8 months of the 2023 fiscal year, starting October 2022.

This figure reflects a 170.4% year-on-year growth, with most being international passengers at 34.31 million, representing a 635.7% expansion. The number of domestic passengers in the same period was logged at 32.06 million, showing a 61.3% growth.

The AOT has set the annual passenger number target at 95 million for 2023, and at 142 million next year, which will be comparable to the pre-pandemic level.

The AOT is expected to start trialing the new satellite concourse (SAT-1) at Bangkok Suvarnabhumi Airport this September, which will provide 216,000 extra square kilometers of passenger area. The company also reported some 2 billion baht profit in the first half of this year.

Source : NATIONAL NEWS BUREAU OF THAILAND

Bangkok Governor Chadchart Sittipunt has announced that the capital city is now being promoted as an ideal destination for the regional headquarters of foreign companies, emphasizing the economic potential and opportunities the city is capable of offering.

Speaking at the “Bangkok as Regional Headquarters Symposium” held at the Bangkok Art and Culture Center, Chadchart highlighted that it was the first time city executives had invited investors to discuss the establishment of regional headquarters in Bangkok. He highlighted the abundance of skilled labor seeking new career opportunities, making Bangkok a favorable labor hub for several industrialized nations, especially Japan.

The symposium, co-hosted by the BOI and the Japan External Trade Organization (JETRO Bangkok), provides Japanese investors an opportunity to explore business opportunities and challenges while presenting the Bangkok Metropolitan Administration’s policies to attract foreign companies.

Chadchart stressed that attracting talent and enhancing the workforce, along with addressing issues such as cleanliness and traffic congestion, were top priorities for Bangkok. The governor expressed the city’s readiness to support foreign investors by facilitating business operations and offering promotional privileges.

Asst Prof Kessara Thanyalakpark, an advisor to Chadchart, mentioned that Bangkok welcomed corporations of all scales and had adhered to regulations set by the Board of Investment (BOI) to ensure efficient operations for foreign companies. She added that the city’s comparatively low cost of living compared to other metropolises in the region makes it even more appealing for foreign firms to consider setting up their headquarters.

The Bangkok governor affirmed the city’s commitment to improving infrastructure and policies to create an optimal business environment for investors, announcing plans to establish One Stop Service centers to ensure a smooth transition and convenience for foreign investors and workers.

Source : Thailand Business News