Kuraray, a Japanese plastics manufacturer, recently inaugurated its first production plant in Thailand, as part of a joint venture with local petrochemical giant PTT Global Chemical and Japanese trading house Sumitomo Corp. The plant, which is one of several EV-related investments in Thailand, produces Kuraray’s high-performance Genestar resin. The resin has a higher heat resistance than standard resins and is used for high-voltage parts around vehicle batteries. The new plant is expected to double the annual production of Genestar to 26,000 tonnes.

Kuraray President Hitoshi Kawahara has announced that the company will consider further investments in Thailand by around 2026, of roughly the same scale as the new plant. The project received a whopping US$520 million in investment, demonstrating the level of interest that the EV market is generating in the region.

Thailand is the largest auto producer in Southeast Asia but has only recently entered the EV market. South Korea’s Hyundai Motor started EV production in Thailand in 2022, and Chinese EV giant BYD is planning to start assembling vehicles in the country in 2024. With Kuraray’s latest investment, Thailand is set to further cement its position as a key player in the EV parts and materials market.

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It was predicted that around 300,000 international tourists would visit Thailand during the extended holiday period, accounting for approximately 60% of all visitors to the country during the same period in 2019. The TAT is optimistic about the future, estimating that the overall tourism revenue for 2023 will be around 2.38 trillion baht. This includes 1.5 trillion baht from up to 30 million international arrivals, while Thai tourists are expected to generate roughly 800 million baht.

The Economic and Business Forecast Centre of the Thai Chamber of Commerce University has also released a report on pre-pandemic consumer spending behavior during the 2019 Songkran celebrations. The report estimated that overall spending during that year’s Songkran festivities was approximately 135 billion baht. However, due to the economic uncertainty caused by the pandemic, the TAT predicted that consumer spending for this year’s celebrations would be slightly lower, at an estimated 125 billion baht.

The Songkran festival is a significant event in Thailand and is celebrated with much fervor and enthusiasm. The festival marks the Thai New Year and is a time for family gatherings, religious ceremonies, and water fights. The festivities are spread over several days and involve various traditions, such as the pouring of water on Buddha images and the visiting of temples.

In conclusion, the Songkran festival is not only an important cultural event in Thailand but also a major source of revenue for the country’s tourism industry. The estimated 18.5 billion baht spent during the 2023 celebrations highlights the significance of the event in boosting the country’s economy. Despite the pandemic’s impact, the TAT remains optimistic about the future and expects the festival to continue to attract large numbers of domestic and international tourists in the years to come.

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According to the projections made by the ADB, headline inflation is anticipated to decline from 6.1% in 2022 to 2.9% in 2023 and 2.3% in 2024. This is despite the fact that the Government Spokesperson Anucha Burapachaisri has ascribed the growth to the revival of the tourism sector and the consumption of the private sector.

Both the JCER and the Nikkei have identified the continuous recovery of the tourism sector as a crucial driver for Thailand’s expected growth. Both organizations predict that the country will see a growth rate of 3.7% in both 2023 and 2024.

In light of these encouraging assessments, Thai Prime Minister Gen. Prayut Chan-o-cha has voiced his conviction that the economy would continue to make progress toward full recovery. According to the statements made by Spokesperson Anucha, the evaluations have also been seen as a positive indicator for the confidence that international investors have in the economy of the country.

These evaluations, taken as a whole, point to the robustness and stability of Thailand’s economy, and they anticipate the country will experience positive growth in the years to come.

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The Bank of Thailand (BoT) has recently stated that the Thai economy is expected to grow in 2023, supported by increased tourism and domestic consumption. This is an encouraging development for the country, which has been significantly impacted by the Covid-19 pandemic.

BoT Assistant Governor Piti Disyatat explained that the Ministry of Finance and the central bank have gradually begun phasing out stimulus measures that were implemented to support the economy during the pandemic. Despite various challenges, the outlook for the economy remains optimistic, with domestic consumption and the tourism sector driving economic growth.

According to a BoT forecast, domestic products in 2023 will increase by 3.6%, while domestic consumption growth will be at 4%. Meanwhile, international arrivals are expected to reach 28 million visitors in 2023 and increase to 35 million in 2024.

The assistant governor also stated that the agency is keeping a close eye on the risk of inflation due to global trends, as well as food and service price increases resulting from improved domestic consumption and tourist arrivals. He expects headline inflation to average 2.9% for this year, while core inflation, which excludes food and energy prices, is forecast to be at 2.4% for 2023.

The central bank is also committed to collaborating with the new government on post-Covid-19 fiscal and monetary policies to ensure a full economic recovery for Thailand. This cooperation will help to continue the positive trend of economic growth.

The anticipated growth in the economy will have a significant impact on various sectors, especially those that have been most affected by the pandemic. An increase in domestic consumption and tourist arrivals will benefit many industries, including hospitality, travel, and retail. It will also provide opportunities for businesses to expand their operations and create more job opportunities for the country’s workforce.

Overall, the BoT’s positive outlook for the Thai economy in 2023 is a promising sign, and the gradual withdrawal of stimulus measures reflects the country’s steady recovery from the impact of the pandemic. As long as the country continues to prioritize public health and safety, this optimistic trend is likely to continue, providing hope for a brighter future.

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UTCC President Thanavath Phonvichai said that all indices continued to grow in March, reaching their highest levels in three years, suggesting that the economy is approaching pre-pandemic levels. Consumers showed the most willingness to spend on tourism, as the sector remains the country’s main driver of growth. Additionally, consumers were willing to spend on durable goods such as vehicles and real estate.

“Consumers in the middle- and high-income groups are more willing to spend and would further drive the economy,” Thanavath said during a news conference.

The resurgence of tourism has had a significant impact on the Thai economy, which saw a massive drop in revenue due to travel restrictions during the COVID-19 pandemic. The Thai government has introduced several stimulus measures to help revive the economy and support businesses affected by the pandemic.

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Governor Sethaput Suthiwartnarueput of the Bank of Thailand (BOT) announced that the country’s economy is expected to grow by 3.6% this year, with fiscal and monetary policies emphasizing stability over economic stimulus. Suthiwartnarueput stated that “The economy is resilient and is able to withstand multiple shocks,” after the country’s economy grew by 2.6% in 2021. The BOT has raised its key rate by 125 basis points since August, less aggressively than many of its regional peers.

Sethaput assured that the central bank has the tools to support the financial system in case of any issues. He added that economic stimulus is not necessary at the moment, prioritizing normalization of fiscal and monetary policies that would ensure market stability. He further stated that “Markets are ready to punish policies that don’t make sense, that upset stability.”

Many political parties have promised giveaways and handouts, such as cash transfers and raising the minimum wage, ahead of the May elections.

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According to Nattapol Rangsitpol, the Industry Ministry Permanent Secretary, the rise in EV orders can be attributed to the government’s supportive measures, which have brought down EV prices and increased consumer confidence in EV standards. Additionally, automakers have been launching a diverse range of new EV models and carrying out sales promotion campaigns for EVs.

The Ministry of Industry has also provided the EV industry with supportive factors, including the establishment of standards associated with all types of EVs, such as those for cars, pickup trucks, buses, cargo trucks, motorcycles, and tricycles. In total, 128 standards were established, including those for batteries and charging stations. The Automotive and Tyre Testing, Research and Innovation Center (ATTRIC) was also developed to improve automobile standards, facilitate research on automobile performance, and support the testing of prototypes.

Mr. Nattapol said the ministry has also worked with relevant agencies to lay down a vision for Thailand to become a major EV and parts manufacturing center. The target is for Thailand to produce 725,000 electric automobiles per year by 2030, which amounts to 30% of the country’s automobile production. Mr. Nattapol added that this target would add no less than 200 billion baht of value to the economy.

In conclusion, the rise in EV orders in Thailand reflects the growing popularity of EVs in the country, driven by government support and rising oil prices. With the establishment of standards and the development of testing facilities, Thailand is well-positioned to become a major player in the EV industry.

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Yuthasak Supasorn, the Governor of TAT, has stated that around 3.8 million trips are expected to be made by locals during the festival, along with 300,000 trips by foreign tourists.

One of the major events taking place this year is the Yen Tua La Maha Songkran event and the International Amazing Splash 2023 event, both being held in Bangkok’s Soi Chulalongkorn 5 from April 13th to 15th. Additionally, the TAT will host Water Festival 2023 events in various locations across the country from April 13th to 16th.

Numerous temples across Bangkok, including Wat Pho, Wat Arun, and Wat Rakhang, will organize traditional activities for the Thai New Year, along with major events at Tha Maharaj, Iconsiam shopping mall, and Asiatique.

Various provinces in Thailand will also host their key events, such as the Old House of Chiang Mai, Ban Chiang World Heritage Cultural Square in Udon Thani, the Andamanda water park in Phuket, and a traditional Songkran event in Phra Pradaeng district of Samut Prakan, being held from April 21st to 23rd.

To boost confidence among domestic and international visitors, the TAT will be working closely with the Tourist Police Bureau to enforce safety measures throughout the entire festival.

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Despite the increase in revenue, the report highlights the continued minor income risk posed by the pandemic. The expenditure budget for the 2022 fiscal year is projected to be 3.1 trillion baht, which represents a 5.66% decrease from the previous year.

The country’s fiscal reserve is expected to total around 624 billion baht at the end of the 2022 fiscal year. This increase from the previous year reflects the government’s flexible spending capability.

However, the trend of public debt risk is estimated to be nearly 10.4 trillion baht, which accounts for 60.41% of GDP at the end of fiscal 2022. This increase has been attributed to the government’s expansionary fiscal policy during the pandemic.

The spokesperson stated that the government could use the financial risk as a guideline for its fiscal policy in the next fiscal year. In the past, the government has used its fiscal policy and budget to alleviate the burden on people and businesses stemming from the pandemic.

It is worth noting that although the debt level remains over 70%, it is primarily used for investment purposes, particularly in the nation’s infrastructure, to allow sustainable growth. The Thai government’s approach has been adopted as a model for other countries’ national development.

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The government said the move, although having raised both consumer and business concerns about rising power bills, particularly during the summer months when electricity consumption soars, is necessary to ensure continued stability and growth in the economy, and it will help to maintain its commitment to ensuring a sustainable future for all citizens. 

Government Spokesperson Anucha Burapachaisri stated that the ERC meeting has agreed on the resolution to raise the Ft price after assessing costs in accordance with the current global and domestic situation. He explained that the ERC reference the rates from data from January 2023 as its framework for making its decision.

Anucha further stated that the Ft rate is adjusted every four months to align electricity prices with the production budget. He mentioned that since energy costs are declining globally, this could result in lowered electricity prices in the future. 

The spokesperson also highlighted the authorization of a 3.2-billion-baht subsidy to help vulnerable groups whose households used less than 300 units of electricity per month from January to April 2023, noting the subsidy is a clear example of the government’s dedication to supporting those in need, and it demonstrates its commitment to creating a more equitable and prosperous society for all.

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