Chai Eamsiri, chief executive officer of Thai Airways International PLC (THAI), said he was confident that the recovery in the travel and tourism sectors would help the national flag carrier complete its rehabilitation conditions and exit the plan earlier than late 2024.

He said that an early exit would allow THAI shares to resume trading on the Stock Exchange of Thailand in 2025.

“The crisis is now over for Thai Airways. We are now in the phase of making money continuously for sustainable development of the organisation,” said Chai, who took charge only on February 1.

THAI has resumed flights on 65% of its pre-Covid routes and its cabin factor was a healthy 85% last year, the CEO said, adding that the airline has made profits since May last year, with a “very good” cash flow of 30 billion baht at present.

The airline earned about 90 billion baht in revenue last year and the figure was estimated to rise by 40% this year, according to the CEO.

He said Thai Airways’ earnings would grow strongly for another year, thanks to the return of Chinese tourists and increased demand for air travel.

According to the CEO, THAI has met most conditions in the business rehabilitation plan quicker than expected.

The airline also has begun its long-term growth programme that includes procurement of new planes and fleet modernisation. With 49 planes at present, THAI aims to expand its fleet to meet rising demand for air transport, taking delivery of six rented Airbus A350 jets in April and planning to lease three more wide-body planes within this year or early next year, according to the CEO.

In September 2020, the Central Bankruptcy Court approved THAI’s recovery plan after the Covid-19 pandemic paralysed global air travel. The airline’s debts stood at 338.9 billion baht against total assets of 298.9 billion baht as of September 30 that year.

 

source THE NATION THAILAND

A memorandum of understanding has been signed between Indonesia and 14 international institutions to accelerate the energy transition. Indonesia is now the world's leading country in preparing affordable clean energy. Indonesia is also discussing opportunities for the Just Energy Transition Partnership (JETP) with ten developed countries that are members of the International Partner Group (IPG). In the energy transition sector, the Presidential Regulation No. 112/2022 encourages global collaboration with Indonesia and investment.

Based on preliminary figures of 2022, ASEAN saw about 1,700 per cent year-on-year increase in tourism receipts. ASEAN also recorded almost 1,300 per cent year-on-year increase in international arrivals with the relaxation of ASEAN member states’ travel restrictions. Hotel rate occupancy also increased by 16 per cent compared to that in 2021.

The massive growth in the ASEAN’s tourism industry was highlighted during the 26th Meeting of ASEAN Tourism Ministers (26th M-ATM) and the related meetings with Plus Three (22nd M-ATM Plus Three), India (10th Meeting of ASEAN-India) and Russia (2nd Meeting of ASEAN-Russia Tourism Ministers) in conjunction with the ASEAN Tourism Forum 2023 (ATF 2023) held on February 4 in Yogyakarta, Indonesia.

The meeting acknowledged the need to embrace and utilise new technologies to overcome challenges and build a more resilient society. In this regard, the meeting encouraged both sides to strengthen collaboration through exchanging expertise and best practices in utilising digital technology, reducing the digital divide by facilitating access to information and communication technologies, as well as developing skills to thrive in the digital economy within ASEAN and Russia.
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Source: Borneo Bulletin

Ongoing supply chain disruptions in the ASEAN region, caused by various factors including China's COVID-19 strategy and global geopolitical tensions, are costing the region a staggering $17.01b annually, as per the analysis by business transformation consultancy TMX Global.

TMX Global Asia Managing Director Dean Jones highlighted that these disruptions are affecting an average of 0.47% of business revenue worldwide.

The research revealed that Singapore, Malaysia, and Thailand were adversely affected by negative supply and demand shocks compared to smaller economies like Brunei and Myanmar.

Despite this, ASEAN’s gross domestic product is forecasted to more than quadruple over the next two decades, increasing to $13.3t by 2040 driven by both exports and domestic demand.

According to Jones, the reopening of China in December has provided significant relief to global brands that are still manufacturing out of Asia. It is perceived as a positive sign of further easing from the immense pressure faced by global supply chains. 

The supply chain disruptions, particularly in 2022, have resulted in increased consideration of ASEAN's role in anticipating future volatilities in the global supply chain landscape. As a result, businesses are increasingly adopting a 'China Plus One' strategy by diversifying their operations, such as production centres and warehouses outside of China. 

Malaysia, India, Thailand, and Vietnam are now the top choices for businesses to set up their operations as they witness opportunities to become global manufacturing and shipping centres.

“Whilst all these put the region at an advantage, it also means that businesses in the region should all the more not let their guard down when it comes to ensuring supply chain resilience,” Jones warned.

“ASEAN cannot afford to rest on the laurels of its geographic, regulatory, economic, and demographic advantages if it wants to continue the fast track to lead on global trade. Supply chains thrive on predictability, and so the ability to take away as much of the uncertainty as possible through a resilient supply chain is crucial,” he said.

Source: Asian Business Review. Link Here. 

Thailand's retail industry is expected to grow by 6-8% this year, double the rate of the GDP, helped by the recovery of tourism, according to the Thai Retailers Association (TRA).

Yol Phokasub, president of the TRA, said the retail industry has been improving, particularly in destinations reliant on tourism such as Phuket, Samui and Pattaya.

"Tourism makes up a vital portion of the Thai economy, in addition to exports," said Mr Yol.

"Although consumer sentiment early this year remains fragile, it is better than expected."

Thailand's retail industry grew by 2-3 times the GDP rate over the past several years, but stumbled during the Covid-19 outbreaks as many countries closed their borders.

He said to stimulate retail market expansion and overall economic growth, the association is calling on the government to enact more measures and incentives for the retail and service sectors.

The government is also being urged to promote Phuket as a tax-free province to draw foreign tourists to spend more there.

Tareetip Wongsaengpaiboon, senior vice-president of Kasikorn Securities Plc, said most retailers are expected to resume their investment, upgrade stores and expand their business abroad this year after foreign tourists returned to Thailand faster than expected, while inflationary pressure is easing.

"Electricity bills are likely the only concern for consumers, but we hope that situation will not worsen," Ms Tareetip said.

Siam Makro Plc, the operator of Makro cash-and-carry stores and Lotus's hypermarkets, allocated a combined 22.7-24.9 billion baht this year to expand its retail and wholesale business.

Half of the budget is to expand Makro and Lotus's outlets. Between 10-11 billion baht is allotted for store expansion, with 4 billion for digital, 3-4 billion for new businesses, 2.2 billion for store refreshment, 1.8 billion for IT and the remainder for capital maintenance and energy-saving schemes.

Meanwhile, Central Retail Corporation (CRC), the country's biggest retailer, plans to invest 28 billion baht to expand its business in Thailand and Vietnam this year.

The budget covers all core business groups, comprising food, fashion, consumer durables, property, and health and wellness.

Of the total investment, 70-75% is to expand CRC's business in Thailand, with the rest allocated to operations in Vietnam, which will focus largely on the food and property business.

The majority of the budget is to open new stores or renovate and remodel existing stores, while 20% of the outlay is for information technology.

The investment is part of CRC's five-year business plan, spanning 2023-27 and totalling 150 billion baht, excluding budgets for mergers and acquisitions, to increase the firm's revenue and market capitalisation by 2.5 times and increase its earnings before interest, taxes, depreciation and amortisation by 3.5 times by 2027.

 

Source : Bangkok Post

Huawei Technologies (Thailand) Co., Ltd. has announced continuation and expansion of its “Digital Bus” project in 2023. The project aims to foster a strong foundation for Thailand’s future digital personnel ecosystem.

Huawei kicked off the year by using the Digital Bus to equip ICT personnel in Prachuap Khiri Khan Province. The initiative aims to lay a strong foundation for empowers Thai talent by helping people apply digital technologies into their daily lives. Going forward, Huawei plans to combine its Digital Bus project with the company’s other flagship digital talent training and competition programs to further enhance Thailand’s digital capabilities.

 In 2022, Huawei’s Digital Bus project successfully provided basic digital skills and hands-on training to more than 3,000 individuals across eight provinces. Those attending included students, vulnerable groups, workforces, SMEs, and local farmers in Singburi, Songkhla, Phra Nakhon Si Ayutthaya, Chachoengsao, Chiang Mai, Phichit, Chon Buri and Nakhon Ratchasima. Huawei also accelerated ICT personnel development among SMEs and startups in Phayao province and developed digital skills for workers in Phetchabun. The Digital Bus itself is powered by Huawei’s proprietary Fusion Solar Residential Smart PV technology, thereby helping to promote use of clean energy generated from solar power technology.

Moreover, Huawei will adjust its training courses and add more learning materials in intensive courses that can be accessed through Huawei Matepad tablets, empowering students to self-learn. The courses will cover topics such as how to utilise technology to improve daily life, cyber security and clean energy. Plus special content for vulnerable groups, including Braille Solution. With Huawei’s ‘Grow in Thailand, Contribute to Thailand’ mission, it is committed to bringing technology to every person, home and organisation to help drive Thailand into the next fully connected intelligent era.

 

Source : Bangkok Post

With the restoration of outbound group travel to 20 nations, including Thailand, starting on February 6, 2023, Thailand is welcoming the arrival of Chinese group tours.

High-ranking TAT executives, Chinese officials, and members of the Thai public and business sectors all attended a welcoming ceremony on February 6th. The first group of tour travelers touched down on a Spring Airlines aircraft from Guangzhou with plans for a 6-day tour that will include some of the most well-known sights of Bangkok and Pattaya. They are expected to visit places like Bangkok’s Wat Phra Kaew (the Temple of the Emerald Buddha), Pattaya’s Nong Nooch Tropical Garden, Yaowarat (Chinatown), and Wat Paknam Phasi Charoen, which is famous for its giant seated Buddha figure.

14 flights from China will arrive in Thailand each day delivering group tours. These flights, operate by different airlines, are set to leave from Guangzhou as well as Xiamen, Beijing, Shanghai, Nanjing, Chengdu and Nanning before landing in Bangkok and Phuket.

Aeronautical Radio of Thailand estimates that there will be 36,896 flights between China and Thailand in 2023, a 227.6% increase over the previous year and more than twice as many as there were in 2022. In the second half of the year, the number of flights is anticipated to progressively rise, reaching the pre-COVID record level in 2024.

Thailand saw a significant increase in foreign visitors, with a total of 11.15 million people traveling to the kingdom. This was a significant jump from the previous year, when just 428,000 visitors were recorded due to pandemic-related travel restrictions. Thailand is aiming to attract 25 million international visitors this year, with a focus on attracting at least five million visitors from China.

The reopening of China is expected to further boost Thailand’s vital tourism sector, which before the pandemic accounted for about 12% of the gross domestic product in Southeast Asia’s second-largest economy.

 

Source : Thailand Business News