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Firemen battle the blaze at the Holiday Inn Express in Soi Bua Khao, Pattaya, early Friday morning. (Capture from a video clip)
CHON BURI: Hundreds of guests fled to safety as fire raced through a hotel in Pattaya early on Friday morning. There were no injuries reported. Damage was estimated at 3 million baht.
The fire was reported at the Holiday Inn Express on Soi Bua Khao in tambon Nong Phrue, Bang Lamung district, about 4.30am, said Pol Capt Chainarong Chaiya-in, deputy investigation chief of Pattaya city police.
Three fire trucks and crews were deployed to the scene. Flames destroyed the third floor of the eight-storey hotel. As thick smoke billowed from the front of the building, more than 400 guests staying there were hurriedly evacuated - including children, elderly and disabled people.
Firemen took about 30 minutes to bring the fire under control, Thai media reported.
Supatchai Panwilai, a security guard at the hotel, said he first saw smoke coming from a room balcony on the third floor, and then flames that were quickly spread by the strong wind.
There no reports if people being injured. Damage was initially estimated at 3 milion baht or more.
Police were investigating the cause of the blaze.
Guests flee as flames ravage the Holiday Inn Express in Pattaya in the early hours of Friday. Firemen took 30 minutes to put out the blaze. No casualties were reported. (Clip taken from Pattaya Message Facebook page)
Workers gather for activities marking Labour Day near the Port Authority of Thailand in Bangkok on May 1. Unskilled workers will get a small rise from Jan 1. (File photo)
The national wage committee agreed on Friday to increase the minimum daily wage by 5-6 baht, from 308-330 baht to 313-336 baht, and will propose the rise to cabinet for effect from Jan 1.
Unskilled workers in most provinces will be entitled to 315-320 baht a day.
Suthi Sukosol, permanent secretary for labour, said the committee made its decision after careful consideration of factors including employees' cost of living, employers' ability to pay, and local and global economic conditions.
"We believe that the increment will enable workers to survive and also support national growth. The impact will be minimal. Investment can be promoted and the economy can grow," he said.
The 6-baht increment will apply in Bangkok, Chon Buri, Phuket, Prachin Buri, Samut Prakan and Samut Sakhon. The 5-baht rise will apply in the other provinces.
The new wage structure would be proposed to the cabinet by Dec 17 so that it could take effect on Jan 1, 2020, Mr Suthi said.
Suchart Thailuan, president of the National Congress of Thai Labour (NCTL), said the raise was appropriate and would not affect employment and the overall economy.
"The rise is acceptable for employers and employees. The prior closure of about 3,000 factories is irrelevant to a change in the minimum daily wage. That resulted from management problems and overall economic conditions. Wages have not changed for two years," he said.
Pichit Deesui, secretary-general of NCTL, said the raise was for unskilled labour. The national wage committee would meet again on Jan 9 to discuss wages for skilled workers.
Friday's resolution means there will be 10 new wage levels. The highest, 336-baht a day, will be for Chon Buri and Phuket provinces, and the lowest rate of 313 baht for the three southern border provinces of Narathiwat, Pattani and Yala.
The 335-baht wage will be for Rayong; 331 baht for Bangkok, Pathum Thani, Nakhon Pathom, Nonthaburi, Samut Prakan and Samut Sakhon; 330 baht for Chachoengsao; 325 baht for Ayutthaya, Chiang Mai, Khon Kaen, Krabi, Lop Buri, Nakhon Ratchasima, Nong Khai, Phangnga, Saraburi, Songkhla, Suphan Buri, Surat Thani, Trat and Ubon Ratchathani.
The 324-baht wage is designated for Prachin Buri; and 323 baht for Chanthaburi, Kalasin, Mukdahan, Nakhon Nayok, Sakon Nakhon and Samut Songkhram.
The 320-baht rate is for 21 provinces, namely Ang Thong, Bung Kan, Buri Ram, Chai Nat, Kanchanaburi, Loei, Nakhon Phanom, Nakhon Sawan, Nan, Phatthalung, Phayao, Phetchabun, Phetchaburi, Phitsanulok, Prachuap Khiri Khan, Roi Et, Sa Kaeo, Surin, Udon Thani, Uttaradit and Yasothon.
The 315-baht wage is for 22 provinces: Amnat Charoen, Chaiyaphum, Chiang Rai, Chumphon, Kamphaeng Phet, Lampang, Lamphun, Mae Hong Son, Maha Sarakham, Nakhon Si Thammarat, Nong Bua Lam Phu, Phichit, Phrae, Ranong, Ratchaburi, Satun, Si Sa Ket, Sing Buri, Sukhothai, Tak, Trang and Uthai Thani.
This shd improve the (lousy) accessibility to DM airport
New bus route to Don Mueang launched
A new airport bus route links Don Mueang airport and Ratchayothin and Sena Nikhom stations BTS stations. (Photo by Patipat Janthong)
A new bus route linking Don Mueang airport and two new BTS skytrain stations near Kasetsart University is now running.
The Bangkok Mass Transit Authority said its new A1 bus route begins at Don Mueang with stops at Ratchayothin and Sena Nikhom stations of the BTS Green Line as well as Vibhavadi Hospital, before it heads back to the airport.
The service will run along the Don Muang Elevated Tollway to avoid traffic along Vibhavadi Rangsit Road. Passengers can hail the bus at Gate 6 in Terminal 1 or Gate 12 in Terminal 2.
Prime Minister Prayut Chan-o-cha delivers a policy speech at the Asia Society, during his visit to the United Nations General Assembly, Sept 25, 2019, in New York. (AP Photo)
Prime Minister Prayut Chan-o-cha has received a poor rating after six months as head of an elected government, according to the result of an opinion survey by the National Institute for Development Administration, or Nida Poll.
The poll was conducted on Nov 29-Dec 3 on 1,278 people aged 18 and over of various levels of education and occupations throughout the country to gauge their satisfaction with the performance of Gen Prayut and members of his cabinet since the election.
Asked to rate Gen Prayut's overall performance, 33.72% of respondents said he has fared poorly in handling the country's administration because his government has not been able to solve economic problems, the people have not been well taken care of, justice has been overlooked and actions have been taken only to protect his cronies. A further 25.98% said his performance has not been satisfactory in various fields.
On the positive side, only 8.92% said Gen Prayut has performed very well and his decisiveness, determination to work and honesty are beyond doubt, while 30.13% said he has performed fairly well, especially in the area of maintaining peace and order in the country.
The remaining 1.25% were not interested or had no comment.
In terms of ideology, 47.73% said he is a man with a strong determination to work for the country and the people; 47.34% said he has only tried to maintain power for himself and his cronies; and 4.93% were not interested or had no comment.
Regarding decisiveness, 48.12% said he is capable of making important polical and administrative decisions; 46.32% said he lacks decisiveness; and 5.56% were not interested or had no comment.
Regarding personality, 62.36% said he is a military-style leader; 29.26% thought he has hybrid military-democratic style of leadership; 6.73% thought he has the personality of a democratic leader; and 1.65% were not interested or had no comment.
Concerning efficiency and ability to solve problems, 61.19% said Gen Prayut lacks the competence to solve the country's problems; 34.35% said he has the necessary competence to solve the country's problems; and 4.46% were not interested or had no comment.
In terms of transparency, 51.49% believed Gen Prayut lacks transparency and accountability; 35.45% thought he performs his duties transparently; and 13.06% were not interested or had no comment.
Prime Minister Prayut Chan-o-cha delivers a policy speech at the Asia Society, during his visit to the United Nations General Assembly, Sept 25, 2019, in New York. (AP Photo)
Prime Minister Prayut Chan-o-cha has received a poor rating after six months as head of an elected government, according to the result of an opinion survey by the National Institute for Development Administration, or Nida Poll.
The poll was conducted on Nov 29-Dec 3 on 1,278 people aged 18 and over of various levels of education and occupations throughout the country to gauge their satisfaction with the performance of Gen Prayut and members of his cabinet since the election.
Asked to rate Gen Prayut's overall performance, 33.72% of respondents said he has fared poorly in handling the country's administration because his government has not been able to solve economic problems, the people have not been well taken care of, justice has been overlooked and actions have been taken only to protect his cronies. A further 25.98% said his performance has not been satisfactory in various fields.
On the positive side, only 8.92% said Gen Prayut has performed very well and his decisiveness, determination to work and honesty are beyond doubt, while 30.13% said he has performed fairly well, especially in the area of maintaining peace and order in the country.
The remaining 1.25% were not interested or had no comment.
In terms of ideology, 47.73% said he is a man with a strong determination to work for the country and the people; 47.34% said he has only tried to maintain power for himself and his cronies; and 4.93% were not interested or had no comment.
Regarding decisiveness, 48.12% said he is capable of making important polical and administrative decisions; 46.32% said he lacks decisiveness; and 5.56% were not interested or had no comment.
Regarding personality, 62.36% said he is a military-style leader; 29.26% thought he has hybrid military-democratic style of leadership; 6.73% thought he has the personality of a democratic leader; and 1.65% were not interested or had no comment.
Concerning efficiency and ability to solve problems, 61.19% said Gen Prayut lacks the competence to solve the country's problems; 34.35% said he has the necessary competence to solve the country's problems; and 4.46% were not interested or had no comment.
In terms of transparency, 51.49% believed Gen Prayut lacks transparency and accountability; 35.45% thought he performs his duties transparently; and 13.06% were not interested or had no comment.
For a person whom days ago blamed the woes of the Thailand economy to Thais spending too much money on nose jobs you can tell how fucked up this person is and worst how fucked Thais are.
Netizens offer moral support to Thai beauty queen over tough question National
Dec 09. 2019
By The Nation
Thai Miss Universe contestant Paweensuda “Fahsai” Drouin, who finished in the top five, got the sympathy of netizens after being asked what they thought was a tough question by a pageant judge.
Miss South Africa, Zozibini Tunzi, was crowned Miss Universe.
In the question and answer round, a judge asked Paweensuda: "Government surveillance is used to keep many nations and their people safe. But some believe this invades our right to privacy. What is more important to you, privacy or security?"
The Thai beauty queen answered: “I believe that every country has their own government policy to keep us safe, and I believe that it shouldn't cross a line of going into our privacy because we have a right to privacy. But security is also very important, so I believe that in order to live in a better society, we should also have the government look into a line – a middle ground as to where they can come and live together with society.”
Many netizens shared the opinion that the question was quite hard because of the current government and political situation in Thailand. They posted comments offering her moral support and thanking her for her efforts.
“I cried. I feel sorry for Fahsai since she has been in pageant stages for seven years preparing for Miss Universe. However, we have to move on. She is a fighter. Never seen an ambitious woman like this before,” one of her fans posted on social media.
For a person whom days ago blamed the woes of the Thailand economy to Thais spending too much money on nose jobs you can tell how fucked up this person is and worst how fucked Thais are.
The big social divide speaks largely for itself. 2/3 assets are in hands of just 1% of the populace. Interesting commentary here by UN rep
More efforts needed to tackle Thailand's stark inequality Columns
Dec 10. 2019
Renaud Meyer, UNDP Resident Representative
By Renaud Meyer, UNDP Resident Representative
Special to The Nation
How sustainable is development when more than two-thirds of the assets of a country is controlled by 1 per cent of its people?
Moreover, inequality in Thailand, like in many countries, is today exacerbated by climate change, economic downturn, and technological transformation.
This situation reported by Credit Suisse in its latest Global Wealth Report reflects the stark wealth disparity prevailing in Thailand, representing one of the root causes of entrenched inequality – a key impediment for any country to achieve the Sustainable Development Goals (SDGs).
How do we compare the life of a young boy born in a wealthy family in Bangkok, with his family endowment opening the door to high-paying jobs through quality education in the country’s best school and accessing information and technologies that being fully digitally literate allows, to that of a young girl born in a hilltribe in northern Thailand or a LGBTI person from a rural area struggling to find a decent job after attending the local public school and too often still victim of discrimination, significantly limiting opportunities to fulfil their life aspirations?
It is evident that circumstances almost entirely beyond their control have already set them on unequal – and likely irreversible – courses in life.
Moreover, inequality in Thailand, like in many countries, is today exacerbated by climate change, economic downturn, and technological transformation. Increasing incidents of floods and droughts destroy crops and depress the income of farmers who take to the street to seek government assistance. In addition, the lacklustre economic growth together with looming disruptions in various industries have led to factories shutting down and workers losing their jobs. Such a situation results in growing frustration, as more people feel that economic and political structures are rigged against them.
These challenges to sustainable and inclusive development support the core analysis of the new UNDP’s Global Human Development Report entitled “Beyond income, beyond averages, beyond today: inequalities in human development in the 21st century” launched on December 9.
In addition to strong analyses of issues, it presents decision-makers with the choice to overturn deep-rooted systemic drivers of inequality. In doing so, there is the opportunity to simultaneously eliminate extreme deprivation while equipping everyone to live with dignity, manage the fallout of our planet heating up and benefit from modern breakthroughs in artificial intelligence and robotics.
According to the 2019 Human Development Report, Thailand achieves a Human Development Index (HDI) of 0.765, an improvement compared to previous years. Featuring at 77th place in world rankings (out of 189 economies), Thailand is the developing country that has progressed the most in the world in its HDI over the period 2013-2018, up by 12 ranks. This shows the country’s remarkable progress in laying the foundation for human development, as indicated in the continued improvement in life expectancy at birth, years of schooling, and income per capita.
However, when discounted for inequality, Thailand’s HDI declines by 16.9 per cent to 0.635. If not addressed, it will only get harder to correct the widening trajectory of inequality as the climate crisis and technological disruptions are already hitting the poorest population the hardest and earliest. This calls for urgent action.
The United Nations Development Programme acknowledges the efforts of the Thai government and other development actors in adopting policies and taking initiatives to address inequalities. An elected parliament and expected local elections indicate commitment to enhance people’s participation and support local authorities in the delivery of better targeted public services. The private sector’s active engagement is reflected in their strong mobilisation for the sustainable development goals with the recent launch of the Thailand Responsible Business Network. Thailand is also the first Asian country to formally adopt a National Action Plan on Business and Human Rights. These are just a few but critical tools endorsed by Thailand to foster sustainable human development.
That said, more steps need to be taken. To effectively reduce inequality within the country, the right policy mix should be complemented with greater decentralisation of public administration for those policies to translate into action at local level. Enabling the citizens, particularly those that are marginalised by geography, income or disability, to thrive rather than just survive in an era of climate crisis and technological transformation should be at the forefront of inequality reduction strategies. In addition, the private sectors’ initiatives to support sustainable development should go beyond tackling environmental problems and encompass social dimensions and inclusion.
On gender inequality, policies should seek to change social norms and eliminate discrimination, including against LGBT, through education, awareness and changing incentives.
Most of all, to tackle the sense of disenchantment and dispossession underpinning the discontent of many, leaders must redouble their efforts to remove the alienating, insurmountable and unfair obstacles their citizens face in achieving the life they want for themselves. If not, the growing resentment and frustration may weaken social cohesion and people’s trust in government, institutions, and each other.
Inequality in Thailand is not inevitable. The UNDP is committed to continue its support to the government and other development actors to make the difficult choices needed to provide all citizens – now and in the future – with a fair and dignified lot in life, powered by technology, shielded from prejudice and protected from an increasingly unforgiving climate.
Auto firms ahead of state units in bonus payments National
Dec 17. 2019
By The Nation
Ten giant companies announced their annual bonus payments to employees this year, led by companies in the automotive industries, state enterprises and agricultural businesses.
President of Personnel Management Association of Thailand (PMAT) Borwornnant Thongkallaya said that a survey of entrepreneurs in various industries found that although Thai economic growth had fallen below target, companies would still raise employees' salaries by 5.07 per cent in 2020, while the average bonus payment for 2019 was set at four times the last monthly salary.
Airports of Thailand (AOT) will pay a year-end bonus 7.25 times the monthly salary, a slight drop from 7.75 times last year. The company managed to generate over Bt62 billion in revenue in the last three quarters of 2019, up Bt2 billion year on year.
Furthermore, AOT is expected to pay bonus again next year, given the likelihood of an increase in revenue from Phase 2 and 3 of the airport's expansion project and duty free shop concessions at four airports (Suvarnabhumi, Chiang Mai, Phuket, Hat Yai). It will also take control of four additional airports (Udon Thani, Buri Ram, Chumphon, Tak) from the Department of Airports.
The Expressway Authority of Thailand (EXAT) will pay a bonus equivalent to 5 times the monthly salary, the same as last year's. The company has generated up to Bt18 billion in revenue as car usage rises.
The Government Housing Bank (GH Bank) and the Government Savings Bank (GSB) will both pay 7 times the salary. The two banks have implemented a series of financial measures this year.
In automotive industry, Honda Automobile (Thailand) will pay the highest bonus of 8.45 times the salary plus a handout of Bt40,000 to each employee.
AutoAlliance (Thailand) or AAT, a joint venture company between Ford Motor Company and Mazda Motor Corporation, will pay bonus at 8.05 times the salary with a special handout of Bt22,000 to each worker.
Toyota Motor Thailand will pay bonus 8 times the salary and a handout of Bt24,000, a rise of 0.5 times in salary and Bt4,000 in extra money.
Mitsubishi Electric Thai Auto-Parts will reduce this year's bonus to 7.5 times the salary from 8.5 times last year, with a special handout of Bt7,000.
In agriculture, Thai Hua Rubber will pay bonus 2.5 times the salary, thanks to higher demand from the world market and relief measures launched by the government.
Charoen Pokphand Foods (CPF), a large company involved in food business in Thailand and abroad, will pay a bonus equivalent to 2 times of an employee's last monthly salary.
BOT cuts growth forecast amid falling exports, delay to recovery Dec 18. 2019
By The Nation
The Bank of Thailand today (December 18) lowered its GDP forecast for this year and 2020, due largely to continuous export contractions and slower economic recovery than previously expected.
The central bank revised downward its forecast of economic growth to 2.5 per cent this year from 2.8 per cent while the forecast for next year was cut to 2.8 per cent from 3.3 per cent.
The central bank cited deeper export contractions and delay to an economic recovery for the lower projections. Headline inflation rate is expected to remain at a low level of 0.7 and 0.8 per cent for this year and next.
Thai exports were hit by the global slowdown and impact from the US-China trade war, in addition to structural changes in production which have eroded the competitiveness of Thai products.
Exports are expected to drop by 4.8 per cent this year, down from the previous projection of 2.3 per cent while a mild growth of 1.4 per cent is seen for next year, compared to an earlier forecast of 2.3 per cent.
Expansion of public investment at 1.7 per cent also fell below the previous projection of 2.5 per cent for this year.
With regard to private investment, it is expected to post growth of 2.5% this year, down from the earlier estimate of 3 per cent. Growth forecast for next year has been cut to 3.4 per cent from 4.8 per cent.
Meanwhile, growth in household consumption this year is expected at 4.4 per cent, up from the previous forecast of 3.8 per cent, but an expansion of just 3 per cent is projected for next year, down from 3.1 per cent. High household debts, less employment opportunities especially in the manufacturing sector and a drop in incomes would combine to make consumers more cautious on spending.
The central bank foresees continuous expansion in tourist arrivals, estimated at 39.9 million and 41.7 million for this year and 2020, up from 38.3 million last year.
The central bank expected Dubai’s oil price to stay at $63.4 per barrel this year before dropping to $ 62.5 next year, down from an average of $69.6/barrel last year.
Thailand's current account surplus is estimated to remain at a high level of $35.2 billion this year and $30 billion in 2020, up from $28.5 billion last year.
Rocker 'Toon' starts new run, raising funds for northern hospitals
Artiwara "Toon" Kongmalai receives donations on the first day of his latest charity run, from Uttaradit to Chiang Mai, on Thursday. (Photo by Boonmum Kerdkaew)
UTTARADIT: Bodyslam singer Artiwara "Toon" Kongmalai was back on the road on Thursday, beginning another charity run that drew 10 million baht on donations to help hospitals in the northern region on the first day.
His 300-kilometre campaign started in Uttaradit municipality. The rocker and his friends will lead runners through Phrae, Lampang and Lamphun provinces before reaching the finish line at the 700th Anniversary Chiang Mai Stadium on Sunday. (continues below)
Thousands of runners joined him in the first leg on Thursday morning, with donations from residents of Uttaradit reaching 10 million baht even before the starting gun.
Toon said he was overwhelmed by the response. The money would go to improve medical equipment at seven hospitals in the northern region. He repeated his message, promoting exercise as the best means to prevent illness.
His last run was in the southern region in October, raising 26 million baht for seven hospitals.
Interesting and enlightening piece on stagflation in Thailand.
From price of a bowl of noodles to haircut
Stagflation is now a reality for Thailand CHARTCHAI PARASUKCOLUMNIST
Customers sit at eateries on Bangkok's Bantadthong Road. Thailand is undergoing stagflation, with its economy suffering both a slowdown and high inflation at the same time, says economist Chartchai Parasuk.
I first encountered this word, a combination of "stagnation" and "inflation", in an economics textbook. Stagflation depicts an unusual situation whereby an economy experiences both a slowdown and high inflation at the same time. A textbook example is the US economy of the early 1970s, which suffered 9% unemployment along with 12% inflation. The culprit was a doubling of world oil prices which pushed the US economy into a recession and raised the cost of goods and services.
Fast forward 50 years and, believe it or not, stagflation is now being experienced in Thailand.
The stagnation needs no explanation, but the inflation sure does. The reason being official inflation figures are in sharp contrast with everyday price pressures that Thai consumers are experiencing. According to government statistics, the consumer price index rose a mere 0.1% in October this year. Food prices increased by an average 2.2% while non-food-product prices fell by 1.1%. If you trust these numbers, Thailand has practically no inflation.
We consumers would wholeheartedly disagree. In a survey conducted by Suan Dusit Rajabhat University (Suan Dusit Poll) in November this year, 65.5% of respondents identified the high cost of living as Thailand's most troubling economic problem. Surprisingly, only 39.2% chose the sluggish economy as the most serious problem. The respondents were not wrong. The slowing economy is affecting individual consumers differently, but the higher cost of living hits everybody (hard) every time they pull out their wallets.
The explanation of why official inflation figures are amazingly low is rather technical. However, I can assure you the price of lunch at the Ministry of Commerce or Bank of Thailand's cafeterias has not increased by 0.1%, as their own inflation numbers indicate. When the price of a bowl of noodles or plate of khao kang (rice with curry) jumps from 35 to 40 baht, that is a 14.3% increase. Whatever the government data is showing, Thai consumers, including employees at the ministry and central bank, are not paying that price.
Let's put the issue of government data versus consumer reality aside. The big question for economists and policy-makers is why prices are rising in a slowing economy. Why is the sacred law of supply and demand not working? US stagflation in 1974 can be explained by the external oil price shock. But how do we explain Thailand's case now?
I could be mean and say that it's not my job to find the answer. It's the job of the government to find the answer to this crucial economic question and to fix the problem fast. Failure to do so increases the risk of dissatisfied Thai consumers coming out to protest on the streets. In Chile, over one million of Santiago's 5.4-million population have joined anti-government protests over the high cost of living. If you think Chilean inflation figures must be high to warrant such mass protests, you couldn't be more wrong. Chile's inflation rate is only 2.5%. Again, government statistics must not be reflecting the real situation.
This is a technical problem with aggregated macroeconomic data like gross domestic product and inflation. Current methods of data compilation are okay for simple and static economies. But nowadays economies around the world are too complex and dynamic for these aggregates to accurately capture the real situation. New economic indicators must be devised to reflect the "real" economy. Without them, you have a situation like Thailand's, where the government cites official data to say the economy is doing okay but the people cry they are suffering.
I spent the last few days thinking up sensible explanations for high living costs. My first thought was the internal supply disruption in Latin American countries. Venezuela is one example. In many countries -- particularly after wars -- prices rise quickly due to shortages of supplies. But in Thailand there is no supply disruption of any kind. The Thai production system is intact, and the distribution network is working fine. If anything, Thailand's production system is running at 20% below its potential since the current capacity utilisation is a mere 62.8%. There is plenty of room to produce more, if the market demand grows. But if supply shortage is not the cause of rising prices, what is?
Another possible explanation is import-driven inflation. But with a strong baht, there is no possibility of higher-priced imports. In fact, the strong baht is helping to lower domestic prices.
I finally got the answer yesterday while I was having my hair cut. My barber raised his fee from 180 baht to 200 baht, citing the higher living cost. Of course, the 11.1% jump in haircut price bears no correspondence with the official 0.1% inflation rate. But I doubt that his cost of living has actually risen 11.1%. So, I gently questioned him further, concerned just a little that my haircut might turn out terrible. Well, it emerged that higher living costs were not the real reason for the fee hike. He, like other Thai consumers, has absorbed higher prices by lowering his consumption in order to keep his budget fixed. For instance, when the price of khao kang topped with a fried egg rose from 40 baht to 50 baht, he skipped the egg in order to keep his outlay at the 40-baht level. Smart consumer!
The necessity for the fee increase arises from higher fixed costs per customer. But if the number of customers decline by 20-30%, the fixed cost per customer automatically increases by 20-30% as well. With higher costs of production per unit, my hairdresser -- along with aunties at the Commerce Ministry and Bank of Thailand's cafeterias plus other producers in Thailand -- have to raise the price of their products. Hence, the higher cost of living for all citizens.
What items come under the "fixed cost" column? Rent, employee salaries, utilities, and necessary business expenses like monthly loan repayments. Therefore, we could conclude that, in today's world -- not the textbook world -- a sluggish economy will bring higher inflation.
So, what economic policies should be imposed to combat "effective" inflation stemming from the fixed cost problem, before we see Chilean-style protests on the streets of Bangkok? Thankfully, it is not my responsibility to answer that question.
CHARTCHAI PARASUK
FREELANCE ECONOMIST
Chartchai Parasuk, PhD, is a freelance economist.
The Thai baht, Asia's best-performing currency, faces reversal
The baht has defied the broad weakness in regional currencies as investors sought refuge in Thailand's safe but low-yielding debt. BLOOMBERG PUBLISHED DEC 23, 2019, 10:00 AM SGT
SINGAPORE (BLOOMBERG) - The Thai baht's heady gains are petering out, thanks to slowing growth and a central bank that's bent on taming the currency's strength.
After clocking an 8 per cent rise this year, Asia's best-performing currency is losing momentum as easing United States-China trade tensions damp its appeal as a haven. Falling yields on local bonds and equity outflows are adding to the pressure.
The baht has defied the broad weakness in regional currencies as investors sought refuge in Thailand's safe but low-yielding debt. A hefty current account surplus and a sizeable pile of foreign reserves helped reel in global funds.
But, the tide has started to turn. The baht has climbed just 0.1 per cent in December, making it the region's worst-performing currency. It has dropped 0.2 per cent to around 30.2 per US dollar since rallying to the strongest in more than six years in October.
The baht may continue this under performance if US-China trade relations improve further as Bloomberg's analysis of 19 emerging-market currencies shows it's among those that are least responsive to the yuan's move.
The baht's retreat in December came as the central bank lowered its economic growth forecasts, citing global risks.
November trade data due Monday may confirm the slowing trend, with the nation forecast to have recorded its first trade deficit since April as both exports and imports shrank.
The baht is expected to decline 1 per cent to 30.5 per US dollar by end-2020, a performance that would put it behind all but three of its Asian peers, according to a Bloomberg survey of analysts.
If Thailand's growth weakens, this could fuel further selling in Thai stocks and weigh on the baht. The 12-month foreign outflow from domestic equities is already above the five-year average.
Bonds may also fall out of favour as yields decline after the central bank slashed the policy rate to a record low this year. Ten-year Thai sovereign debt yield about 1.6 per cent, less than similar-maturity US Treasuries.
Should the baht defy expectations for a drop, the central bank may step in again to check its strength. Policy makers have rolled out a slew of measures including cutting the supply of short-term bonds and easing rules on outflows to rein in the currency's advance.
Nicknames resurface for government and ministers Politics
Dec 23. 2019
By THE NATION
It is an year-end tradition for the press corps at Government House to come up with nicknames for the government and the ministers in an expression of collective opinions towards those in power, based on what they have achieved in the course of the year.
However, it took a long pause for the past six years in the absence of an elected government until now.
For the first time in several years, nicknames have again been assigned to the administration and ministers.
Government’s nickname: Sieng Kong government
Sieng Kong is a well-known shopping district in Bangkok that sells second-hand automotive parts at cheap prices, therefore the nickname reflects the current status of the government coalition comprising old-timer politicians and state officials from previous governments who were stitched together to form a new team but unlikely to work well together.
Prime Minister Gen Prayut Chan-o-cha’s nickname: The Drunken Boxer
In the eyes of the press, Prayut seems like a confused boxer especially when he condemned certain policies but ended up embracing them, such as the populist policy, attracting MPs from other parties, appointing ministers who were involved in past political rallies, and raising the minimum wages. Prayut also seems confused when facing questions from the opposition and on many occasions simply changed the subjects.
Deputy PM Gen Prawit Wongsuwan: Big Bro The Entertainer
As the oldest member of the 3P gang (Prawit, Prayut and Pok Anupong), Prawit is the big brother who needs to look after his little siblings as well as entertain members of government coalition when they run into problems, from international conflicts to chicken farm scandal.
Deputy PM Somkid Jatusripitak: Mr. Pracharat
Somkid initiated several state welfare or “Pracharat” projects over the past years but most of them were unsuccessful while new projects have failed to gain support, even among members of the government parties. He is now left holding his pet Pracharat projects.
Deputy PM Wissanu Krea-ngam: Sri Thanonchai
The government’s legal guru was compared to Sri Thanonchai, a trickster and antihero in Thai folklore, famous for his skills in finding loopholes in rules and regulations to get himself out of hot water.
Deputy PM and Minister of Commerce Jurin Laksanawisit: Independent State
Jurin got this nickname from his working style that mainly compliments the policies of his Democrat Party while ignoring the opinions of its coalition partners, as if he is operating independently from the government.
Deputy PM and Minister of Public Health Anutin Charnvirakul: Rat Poison
Anutin became famous for the ban of toxic agrochemicals which caused widespread criticism from several parties, coupled with the fact that his real nickname is “Noo” or rat in Thai.
Deputy Agriculture and Cooperative Minister Capt Thamanat Prompow: Mr Grey Area
Thammanat got his nickname from being involved in many scandals including the shady validity of his academic qualifications, having been convicted and jailed in Australia for drug offense, and making an under the table deal with an opposition party.
Deputy Agriculture and Cooperative Minister Mananya Thaiset: Madame Awkward
Mananya was in the spotlights when she joined Anutin in spearheading the ban of three toxic chemicals, only to face opposition from the public. The proposed ban of two of the chemicals were delayed while the useage of glyphosate, was allowed to continue.
Transport Minister Saksyam Chidchob: The Demolisher
Not only he is the owner of controversial ideas such as forcing all personal cars to install GPS, Saksyam is also famous for his penchant to dismante existing projects including the lowering of skytrain’s fee, driver's licence tests and construction of train-crossing gates.
Natural Resources and Environment Minister Warawut Silpa-archa: The Undertaker
Ever since he took office, all we heard on the natural front were bad news: deaths of rare wild animals such as Mariam the dugong, Chuang Chuang the panda, wild elephants at Khao Yai’s Hell Abyss Waterfall. The press however applauded Warawut’s effort in cleaning up the mess and urging people to take better care of nature.
Quote of the year “Don’t get sick of me just yet, for I will be here for quite a while”
Gen Prayut Chan-o-cha said to the athletes and staff of the national team before thier departure to the 30th SEA Games in the Philippines, at Government House on November 13.
Thai cave rescuer dies from year-long blood infection
A member of the rescue team that saved 12 boys and their football coach from a flooded cave in Thailand last year has died from an infection he picked up during the operation, officials said.
Petty Officer Beirut Pakbara, a Thai Navy Seal, contracted a blood infection during the rescue at Tham Luang cave.
Beirut was under medical supervision but his condition worsened and he died on Friday, a statement said.
Another rescuer, Saman Gunan, died during the operation.
