May 20, 2020

Thai Enquirer Summary

Economic News

Today the Monetary Policy Committee (MPC) is set to hold a meeting to review the

rates.

Currently the rates are at 0.75% and expectations are that the MPC will cut the

rates by at least 25 basis points (0.25%) to stimulate the economy after the Thai

economy contracted by 1.8% during the 1st quarter of this year and the

expectations are that the economy will shrink by at least 5.3%

With inflation in negative territory, Thailand’s real interest rate stands at 3.74%,

among the highest in the world, Bloomberg reported, giving the central bank

scope to ease.

The Cabinet gave the greenlight to a plan for Thai Airways International Plc (THAI) to

seek rehabilitation through the Central Bankruptcy Court.

The Cabinet approval of THAI’s plan to file a rehabilitation plan with the Central

Bankruptcy Court comes as the government decided against a bailout loan amid

growing public resistance to the measure.

Prime Minister Prayut Chan-o-cha described the Cabinet’s decision to allow

THAI to go through rehabilitation via the bankruptcy courts as difficult but

necessary for the best interests of the country.

Under the court-supervised rehabilitation process, THAI will continue to fly and

its more than 20,000 staff will still be employed, but, importantly, it can now start

a much-delayed restructuring of the airline, Gen Prayut said.

Chakkrit Parapuntakul, THAI acting president, said the airline is committed to do

everything possible to emerge from the crisis situation and will resume full

operations once the COVID-19 situation subsides.

THAI workers’ union who had come out to oppose a reduction of the Finance

Ministry’s stake in THAI as it feared a change to the airline’s state-enterprise

status would impact its benefits and the airline, have come out to accept the

decision by Gen. Prayut.

In a related development, Transport Minister Saksayam Chidchob said he plans to seek

Prime Minister Prayut Chan-o-cha’s approval for the nomination of 15 candidates for

Thai Airways International Plc (THAI)’s new board member next week.

The bankruptcy procedure, starting with seeking approval from the cabinet to

enable THAI to file a bankruptcy petition, followed by the Finance Ministry

reducing its stake in the airline to below 50%, which will deprive THAI of its

status as a state enterprise, to facilitate the bankruptcy proceedings, Mr Saksayam

said as he explained a timeline for the process.

It is said that high-profile executives and former executives of the country’s

conglomerate and financial institution have been approached by the ministry to sit

as THAI new board members, replacing 3 current board members.

The list includes

Government Savings Bank President Chatchai Payuhanaveechai

PTT Exploration and Production Plc’s President and CEO - Tevin

Wongwanich

Former THAI president and SET President - Charamporn Jotikasthira

Former PTT CEO - Chansin Treenuchagron.

Tris Rating has downgraded its rating on THAI and the ratings on THAI’s senior

unsecured debentures to “C” from “BBB” and maintains Credit Alert with

negative implications. The downgrade reflects the anticipation of a standstill on

all debt obligations of THAI under the bankruptcy law, following the

government’s resolution on 19 May 2020 for THAI to file a rehabilitation petition

to the Bankruptcy Court.

A proposal for Thailand to join the Comprehensive and Progressive Agreement for

Trans-Pacific Partnership (CPTPP) is unlikely to make further progress amid oppositions

from many parties and reports that Deputy Prime Minister Somkid Jatusripitak will not

join the Cabinet for a meeting to discuss the proposal after he was taken to hospital for

his diabetes. At the same time, Deputy Agriculture Minister Chalermchai Sri-on is said to

have taken leave due to high blood pressure.

The proposal is being pushed by the economic cabinet to the cabinet in April but

face oppositions from many parties including Deputy Prime Minister Anutin

Charnvirakul.

The Revenue Department launched the “Tax from Home” programme to allow the public

and private sectors to file tax from home via the electronic channel.

Taxpayers can claim tax returns and make payments through e-registration via the

Revenue Department’s website www.rd.go.th. The Revenue Department

encouraged people to use the electric channel during the spread of COVID-19 to

comply with social distancing rules.

The COVID-19 pandemic continues to cause a shortfall of 100 million condoms across

the globe following a recent shutdown of 3 Malaysian factories due to a lockdown

imposed by the Malaysian government.

Somdet Susomboon, Director-General of the International Trade Promotion

Department, said it is a chance for Thai Nippon Rubber Industry Plc (TNR), a

Thai maker and distributor of condoms, to ramp up production of condoms to 1.9

billion pieces this year or by 27% in the face of the current shortage due to

Malaysian plants’ temporarily shutdown of operations.

The Thai condom maker sees an increase in purchasing orders to 90% from 27%

from the US, Japan and China all together. This is a good chance for Thai

exporters to expand markets, Mr Somdet said.

During the ongoing COVID-19 outbreak, demand for condom from the Chinese

market rose to 2-digit figures. It is forecast that the value of the condom market in

2021 will stand at US$9.410 billion, up 18.07% from this year.

The Stock Exchange of Thailand (SET) Index closed 23.42 points or 1.82% higher at

1,309.95 points yesterday (May 19), with a trading value of 78.863 million baht.

The report of positive results from a vaccine against COVID-19 is believed to

help lift the market sentiment along with higher oil demand that sent energy

stocks to perform well, coupled with a rise in oil prices.

Analysts advised investors to keep a close watch on the Bank of Thailand

(BOT)’s monetary policy committee (MPC) meeting today (May 20) as 80% of

economists forecast that the MPC is likely to slash the key policy rate further.

Political News

The rift in the ruling coalition – Phalang Pracharat party (PPRP) seems to be heading

towards a new low after reports came out that there was a meeting held in Hansar Hotel

on Ratchadamri road yesterday.

The meeting was reportedly held by people close to the faction in the party that is

being pushed out.

Those reportedly attending the meeting were

Deputy Prime Minister - Somkid Jatusripitak.

Finance Minister - Uttama Savanayana

Energy Minister - Sontirat Sontijirawong

PPRP party list MP -

Ms. Watanya Wongopasi (Madam Dear)

President & CEO of Samart Corporation Plc

- Watchai Vilailuck

The meeting was held to break away from PPRP and set up a new political party –

Saang Thai (Build Thailand)

This meeting comes on the heels of Mr. Somkid calling in sick at yesterday’s

Cabinet meeting which was crucial to the decision making of Thai Airways

International Plc., a decision that relates to the Economic Ministry (of which Dr

Somkid is the head).

Dr Somkid had opposed the idea of pushing Thai Airways into bankruptcy

court but instead had pushed for a guarantee of 54 billion baht to the

airline to pull itself out of the current mess.

The meeting being held was denied by Ms Watanya (whose unregistered husband

or what people call as live in partner) owns Nation Multimedia Plc

“There was no such discussion neither today nor the day before nor before

that” she said in an early morning TV interview today.

“The current environment is not conducive to such actions of meetings

and even trying to think about these things and the party is strong enough

and we have not even thought about this issue at all and don’t even know

if Dr Somkid is even thinking about this issue,” she added.

Deputy Prime Minister Prawit Wongsuwan, as the Phalang Pracharat Party (PPRP)’s

chief strategist, voiced his confidence in an election re-run in Lampang province

scheduled on June 20.

Gen Prawit is confident that PPRP candidate Wattana Sitthiwan will secure

victory in this coming election re-run in Lampang’s Constituency 4. The seat was

left vacant by the Pheu Thai Party’s late MP Itthirat Chantarasurin.

When asked about speculation that he plans to take over the PPRP’s helm, Gen

Prawit said, “No idea”.

House Speaker Chuan Leekpai gave the go ahead for a planned House session to debate

on 3 executive decrees on borrowing on May 27.

Mr Chuan said he had no problem with allowing 10 days of debate on the 3

executive decrees on borrowing as requested by the Opposition given that the new

House session will be run within a 120-day time frame.

Prime Minister Prayut Chan-o-cha issued an order to reinstate Whichai Pochanakij as

Director-General of the Department of Internal Trade.

Mr Whichai was transferred on March 15 over allegations of hoarding face

masks. He had tried to resign the day after he was transferred to the Office of

Prime Minister but his resignation was rejected by Commerce Minister Jurin

Laksanawisit.

Mr Whichai was reinstated to his post after 2 investigative committees set up by

the Commerce Minister found no evidence over the alleged hoarding of masks

under the DIT’s management.

Amnesty International called on the government to bring the culprits behind the 2010

army crackdown on United front for Democracy against Dictatorship (UDD) protestors to

justice.

“While protest leaders and demonstrators have faced criminal

prosecutions, no justice, truth or reparation has been served to families of

those killed during the violence,” the rights group said in its statement.

“On the 10th

anniversary of the last day of the violent crackdowns,

Amnesty International calls on the Thai authorities to immediately bring

all those suspected of criminal responsibility to justice in fair trials before

civilian courts, and provide effective remedies for families of those who

were killed”.

Yesterday marked the 10th

anniversary of the crackdown of the ‘Red Shirt’ movement

that killed 99 people on the streets of Bangkok.

Thai Enquirer has done a package of nearly 10-stories to try to give a clearer

picture of what happened on those 9-days that lead to the bloodbath a decade ago.

https://www.thaienquirer.com/13158/an-oral-history-of-the-red-shirt-protests/

To mark the anniversary some ‘Red Shirt’ gathered around Ratchaprasong to

commemorate the day although there were more police officers in the area than

those there to commemorate.

The National Anti-Corruption Commission (NACC) has revealed lists of assets and

liabilities declared by 9 MPs and senators in the NACC’s documents which will be made

public from May 19 to June 17 this year.

The latest NACC revelation Interesting names on the list are 6 former executive

members of the now-defunct Future Forward Party (FFP) who left office at the

same time on February 21, 2020.

Interestingly, Pannika Wanich, former FFP executive and list MP, reported

3,326.293 baht in assets, divided into 104,045 baht in bank deposits, 857,748

baht investment, 2 vehicles, worth 1.4 million baht and other assets worth

964,500 baht. Ms Pannika reported an increase of 6,726 baht in assets when she

left office.

Former FFP’s deputy leader Lt Gen Pongsakorn Rodchompu reported total

assets of 10,936,970 baht, with 12,658,503 baht more assets than liabilities.

Other ex-FFP executive members Piyabutr Saengkanokkul, Surachai

Srisarakham, Janevit Kraisin and Jaruwan Saranket requested an extension for

the disclosure of their assets and liabilities with the NACC.

Meanwhile, former FFP leader Thanathorn Juangroonruangkit is not required to

reveal his lists of assets and liabilities because he was disqualified as an MP by

the Constitutional Court for having shares in V-Luck Media Co, a media

company, when applying to become MP.

General News

The Centre for COVID-19 Situation Administration (CCSA) reported 2 new COVID-19

cases and no fatalities, bringing its tally to 3,033 cases with the death toll remaining at

56.

The 2 cases --a 36-year-old woman and a 42-year-old man---are family members

of a confirmed patient in the southern province of Narathiwat, said CCSA

spokesman Thaweesilp Wissanuyothin.

Globally the number of cases are set to reach 5 million mark in an hour or so as the

current number stands at 4,985,982 and death has reached 324,890

The hype of Modena that had possibly found some positive signs from the testing

on human was shot down by lack of data that prompted the stock market around

the world to go down.

Political News Headlines in Thai Media

In early 2010, the political situation in Thailand was growing untenable. Supporters of

deposed Prime Minister Thaksin Shinawatra grew more discontent with the government

of Abhisit Vejjajiva. The Thaksin supporters accused Mr Abhisit of colluding with the

military and the courts to disqualify several Thaksin-aligned prime ministers and dissolve

the People’s Power Party (PPP) on technicalities.

o Link- https://www.thaienquirer.com/13160/part-1-the-coming-storm/

By the end of March 2010, the Red Shirt protesters were fully entrenched in their

Rajdamnern protest site. Speeches and concerts continued throughout the entire month

with protesters holding mobile rallies around the city on motorcycles and pick up trucks.

o Link- https://www.thaienquirer.com/13167/part-2-momentum-gathers-and-a-clash-at-

khok-wua/

24 people died on the night of April 10. Sensing that the area around Rajdamnern had

become impossible to defend, the Red Shirt protest leaders moved the protests to

Rajprasong intersection in the heart of downtown Bangkok.

o Link- https://www.thaienquirer.com/13171/part-3-standoff-at-rajprasong-and-failed-

negotiations/

After the negotiations between the two sides failed, the military took a more central role

in operations. A crackdown seemed the most likely outcome as May began.

o Link- https://www.thaienquirer.com/13178/part-4-violence-and-crackdown-in-

bangkok/

Here is a brief video of the red shirt protests from March – May 2010.

o Link- https://www.thaienquirer.com/13258/a-brief-video-history-of-the-red-shirt-

protest/

“Thailand needs to heal.” Those were the words that I clearly remember one of my

teachers saying, 10 years ago after the end of the red shirt protest, leaving death,

destruction, and a fragmented society in its wake.

o Link- https://www.thaienquirer.com/13215/opinion-unforgetting-and-confronting-

the-truth-of-state-sanctioned-violence/

The Thai government said on Tuesday that it had discovered two new coronavirus cases

in the last 24 hours. Both cases were in Narathiwat Province.

o Link- https://www.thaienquirer.com/13256/two-new-coronavirus-cases-discovered-

in-last-24-hours/

The United Front for Democracy against Dictatorship (UDD) on Tuesday marked the

tenth anniversary of the 2010 political clashes with a vow to never let the red-shirt

movement die.

o Link- https://www.bangkokpost.com/thailand/politics/1920948/udd-marks-10-years-

since-deadly-unrest

Thailand marked the 10th anniversary of a bloody army crackdown on protesters on

Tuesday, with a banned opposition politician saying anger was unabated, especially after

last year's disputed election that kept a coup leader in power.

o Link- https://www.bangkokpost.com/thailand/politics/1920868/thanathorn-anger-

unabated-10-years-on

Economic News Headlines in Thai Media

Thai netizens on Tuesday called for a boycott on an American doughnut chain after one

of its employees was reportedly sacked over his critical remarks about the monarchy.

o Link- https://www.khaosodenglish.com/politics/2020/05/19/krispy-kreme-fires-man-

who-posts-about-rama-ix/

The cabinet on Tuesday approved the submission of Thai Airways International (THAI)’s

rehabilitation plan to a bankruptcy court, Prime Minister Prayut Chan-ocha said.

o Link- https://www.thaienquirer.com/13262/thai-to-submit-rehabilitation-plan-to-a-

bankruptcy-court-will-no-longer-be-state-owned/

Travel Agency Agoda will cut 1,500 staff in Asia as part of its cost cutting measures,

industry media reported this week.

o Link- https://www.thaienquirer.com/13273/agoda-to-axe-1500-staff-in-asia-ceo-

promises-it-will-be-companys-only-cut/

Prime Minister Prayut Chan-o-cha has signed an order reinstating Wichai Phochanakij as

director-general of the Department of Internal Trade (DIT).

o Link- https://www.bangkokpost.com/thailand/general/1920916/wichai-set-to-return-

as-trade-chief

A House sub-committee on kanchong, or hemp, is moving forward with its proposal to

allocate 20 rai of land to farmers nationwide to commercialise the plants.

o Link- https://www.bangkokpost.com/thailand/general/1920944/kanchong-panel-

wants-20-rai-to-commercialise-crop

The Education Ministry will offer jobs to 10,000 assistant teachers to staff smaller

classrooms post-Covid-19 lockdown as classes are to be split.

o Link- https://www.bangkokpost.com/thailand/general/1921016/post-covid-teachers-

wanted

The Education Ministry has called on the Digital Economy and Society (DES) Ministry

to provide internet connections to underprivileged students so they can study online via

channels provided by the government during the Covid-19 crisis period.

o Link-

https://www.nationthailand.com/news/30388156?utm_source=category&utm_mediu

m=internal_referral

A combined 89% of the 621 SET-listed firms reported a 58% year-on-year dip in net

profit in the first quarter against the backdrop of the coronavirus crisis, says Tisco

Securities.

o Link- https://www.bangkokpost.com/business/1920968/listed-firms-see-big-dip-in-q1

The cabinet has agreed to postpone the enforcement of most chapters of the Personal

Data Protection Act (PDPA) by a year to give the public and private sectors time to

prepare their internal processes and ease the financial burden they are shouldering during

the coronavirus pandemic.

o Link- https://www.bangkokpost.com/business/1920972/most-parts-of-pdpa-to-be-

deferred-by-a-year

As most of its new projects launched this year will be low-rise houses, SET-listed

developer Origin Property Plc is maintaining the same presales and revenue targets for

this year.

o Link- https://www.bangkokpost.com/business/1920988/origin-keeps-presales-

revenue-targets

Telecom giant True Group reported first-quarter service revenue of 26.6 billion baht, up

3% from the same period a year earlier, supported by firm earnings from mobile and

fixed internet broadband services.

o Link- https://www.bangkokpost.com/business/1921100/broadband-lifts-trues-q1-

revenue

Minor International launches strategy to raise Bt25 billion in capital

o Link-

https://www.nationthailand.com/business/30388136?utm_source=category&utm_me

dium=internal_referral

Issues to be watched out for

May 14-20, 2020 – The government’s “Rao Mai Thing Kun” bond sale will be made

available to people aged 60 and over.

May 21-27, 2020 – The government’s “Rao Mai Thing Kun” bond sale will be made

available to retail investors.

May 28-June 10, 2020 – The government’s “Rao Mai Thing Kun” bond sale will be made

available to the general public and non-profit entities.

May 22, 2020 – The House is set to reconvene.

May 26, 2020 – Prosecutors has delayed a decision on charges against Piyabutr

Saengkanokkul, former secretary-general of the now-defunct Future Forward Party, for

alleged contempt of court after he criticized the Constitutional Court’s decision to dissolve

the Thai Raksa Chart Party.

May 27-28, 2020 – The House is set to deliberate on government-sponsored executive

decrees on borrowing.

May 29, 2020 - The deadline for those who missed out on the government’s 5,000-baht

cash handout scheme who wish to appeal their case to the Finance Ministry.

May 31, 2020 – The government is expected to lift lockdown restrictions imposed under

the emergency decree.

June, 2020 - The Phalang Pracharat Party (PPRP) is set to hold a general assembly to

select a new executive board after the House’s reading on 3 executive decrees on

borrowing to fight COVID-19.

June 20, 2020 – The Election Commission scheduled a by-election in Lampang.

June 30, 2020 – The Civil Aviation Authority of Thailand (CAAT) is expected to lift ban

on incoming flights.

July 2020 – The Expressway of Thailand (EXAT)’s planned opening schedule of the new

Motorway Route 7 Section from Pattaya to Map Ta Phut.

July 15, 2020 – The House is set to deliberate on the draft budget bill for the 2021 fiscal

year.

October, 2020 – The bidding for construction and operation for the 140-billion-baht

Orange Line western extension linking the Thailand Cultural Centre with Bang Khun

Non.

October, 2020 – The Thailand Grand Prix was rescheduled after being postponed due to

the coronavirus outbreak.

Key Data

SET Index 1,309.95 +23.42

Link - https://www.set.or.th/en/company/ipo/upcoming_ipo_set.html

Global Commodities

Metal -Link http://www.bloomberg.com/markets/commodities/futures/metals/

Energy -Link - http://www.bloomberg.com/energy/

Baltic Dry Index (BDI)-Link - http://www.bloomberg.com/quote/BDIY:IND

Global Equity Market’s Movements

Link - http://www.bloomberg.com/markets/stocks/world-indexes/asia-pacific/

Asian Equity Markets Movement

Link - http://www.bloomberg.com/markets/stocks/world-indexes/

Information on May 19, 2020

Buying, Selling or Transfer of shares by Owners/Management

Stock Code Volume Value Action

AIMIRT 100 12.5 Purchase

ASEFA 65,000 3.08 Purchase

ASEFA 32,000 3.08 Purchase

CPT 1,000,000 0.69 Purchase

DDD 6,700 17 Sale

DDD 11,000 17.09 Sale

DDD 4,300 17.02 Sale

EASON 42,600 1.13 Purchase

EP 1,976,100 3.67 Purchase

EKH 30,000 4.12 Purchase

JCK 9,000,000 0.02 Sale

JCK 32,531,000 0.01 Sale

KWM 100,000 0.76 Purchase

MJD 1,000,000 1.7 Sale

OSP 116,700 41.5 Sale

OSP 2,183,300 41.83 Sale

OSP 1,000,000 41.92 Sale

PR9 10,000 6.65 Sale

SMIT 73,900 3.1 Purchase

SF 4,800,000 4.08 Purchase

SKY 10,000 14.9 Sale

SMART 50,000 1.04 Purchase

SFLEX 1,000 7.4 Purchase

SUSCO 50,000 2.06 Purchase

TKN 130,000 8.5 Sale

TU 100,000 12.4 Purchase

TWPC 100,000 3.34 Purchase

TWPC 100,000 3.38 Purchase

TPBI 5,000 3.08 Purchase

AUCT 100,000 6.7 Purchase

XD, XE or XM or other notifications

For list of Companies that have dividend payment and AGM meeting schedules click on

http://www.set.or.th/set/calendarofevents.do

Trading Breakdown on the Stock Exchange of Thailand

Daily as of 19 May 2020 Unit: M.Baht

Investor Type Buy Sell Net

Value % Value % Value %

Local Institutions 12,073.95 15.31 7,662.89 9.72 4,411.05 -

Proprietary

Trading

7,029.44 8.91 6,756.93 8.57 272.52 -

Foreign Investors 25,106.63 31.84 25,998.59 32.97 -891.96 -

Local Individuals 34,653.54 43.94 38,445.14 48.75 -3,791.61 -

Monthly Cumulative between 1 - 19 May 2020

Unit: M.Baht

Investor Type Buy Sell Net

Value % Value % Value %

Local Institutions 65,235.30 11.6 56,983.19 10.13 8,252.11 -

Proprietary

Trading

47,154.94 8.39 47,268.22 8.41 -113.29 -

Foreign Investors 184,778.75 32.86 209,873.50 37.33 -25,094.75 -

Local Individuals 265,075.28 47.15 248,119.35 44.13 16,955.93 -

Yearly Cumulative since 1 Jan - 19 May 2020

Unit: M.Baht

Investor Type Buy Sell Net

Value % Value % Value %

Local Institutions 747,420.86 12.13 689,420.67 11.19 58,000.19 -

Proprietary

Trading

639,001.89 10.37 641,952.81 10.42 -2,950.92 -

Foreign Investors 2,216,611.54 35.98 2,404,037.06 39.02 -

187,425.52

-

Local Individuals 2,558,178.76 41.52 2,425,802.50 39.37 132,376.26 -

Total Trading Value 78,863.55 Million Baht.

Background Information –  

The strength of each party in the Thai Parliament as of May 8, 2019 as per the report by the

Election Commission of Thailand. Elections took place on March 24, 2019

https://www.ect.go.th/ect_th/news_all.php?cid=24

List of MPs - https://www.ect.go.th/ect_th/download/article/article_20190508184334.pdf

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