THAILAND – ECONOMY: Thailand’s economy dashboard as of January 5
Gavroche has selected for you some economic news from Thailand last week. An overview of important news for those interested in the Kingdom’s economy.
According to a survey of CEOs of companies listed on the Stock Exchange of Thailand (SET) on economic outlook for 2023,he majority of CEOs expect the Thai economy to improve. The main factors supporting Thailand’s economic growth in 2023 are tourism, exports and economic recovery after COVID-19, while the main risk factors are the growth trend, high oil prices, oil and geopolitical uncertainties. However, Thailand’s economy is expected to continue to grow by 3% to 4% in 2023.
Thai household debt
Thailand’s household debt-to-gross domestic product ratio fell to 86.8% in the third quarter from 88.1% in the previous quarter as the economy continued to recover. Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput said high levels of household debt could undermine economic recovery and should be brought down to sustainable levels.
Arincare raises $4 million in Series B
Arincare, a Thai startup that provides digital platforms for pharmacists and pharmacies, has announced its expansion strategies to meet growing demand in Thailand. The startup aims to go public (IPO) and list on the Stock Exchange of Thailand (SET) by 2026. The listing on SET follows 4 successful Series B fundings from the company in a US$ million round with two new investors — Chularat Hospital Group (CHG) and PTG Energy Pcl.
Launch of Saksiam TC Energy Co Ltd
Thai personal loan provider Saksiam Leasing (SAK) has formed a joint venture with TC Renewable Energy to enter the business of installing rooftop solar panel systems and provide financing to Thai households. The joint venture, Saksiam TC Energy Co Ltd, will have an authorized capital of 50 million baht, with SAK and TC Renewable Energy Co Ltd holding 35% and 65% respectively. This joint venture is expected to be launched in January 2023.
The Petroleum Fund Office (Offo) plans to take additional loans of 30 billion baht in March to pay off debts incurred using the fund to subsidize diesel and liquefied petroleum gas (LPG) prices. This will be Offo’s second loan application after receiving an initial loan of 30 billion baht to pay off oil traders.
Introduction of bio-circular-Green rice cultivation model in Thailand
Four Thai agricultural associations have joined forces to promote the Bio-Round Green (BCG) rice farming model, covering 50,000 rai of paddy land in ten provinces. Participating associations are Save Planet Agro-Economic Development Association, Community Rice Centers Association of Thailand, Farmers Association and Thai Rice Mills Association.
More than 20 million tourists in 2023 in the Land of Smiles
Thailand’s tourism sector is expected to experience a strong revival this year, with the government now expecting around 20 million international visitors this year. The capital, Bangkok, continues to grow in popularity among tourists, with the city recently ranking as the third most popular Asian destination for North American travelers.
Merger of Truecorp and DTAC
NewCo, the entity formed from the proposed merger of Thai telecom operators True Corp and DTAC, is to be renamed ThaiCo. Manat Manavutiveth, who is currently the co-chairman of True Corp, will also serve as the new CEO of ThaiCo after the merger is completed.