June 5, 2020

Thai Enquirer Summary

Political News

Following the recent upheaval inside the Phalang Pracharat Party (PPPR) which

prompted 18 members of the party’s executive board to resign, PPRP senior members

have sent a strong signal that a cabinet reshuffle must be completed by July 5, according

to a source with the PPRP.

The news came with speculation that those to be excluded from the line-up

would be

Deputy Prime Minister Somkid Jatusripitak,

Finance Minister Uttama Savanayana,

Minister of Higher Education, Science, Research and Innovation Suvit

Maesincee,

Energy Minister Sontirat Sontijirawong

It is said that the PPRP will allocate cabinet seats to prospective ministers

according to support of MPs in their group. Under this new formula, a minister

must have support of 10 MPs to secure a cabinet seat while a deputy minister

must gain support of 7 MPs.

“Thai Rath” newspaper reported that the position of the Minister of Finance may

be allocated to one of the following 2 candidates

Pailin Chuchottaworn, the former CEO of PTT Plc and also a minister in

the Prayut government that was installed after the 2014 coup he

undertook.

Prasarn Trairatvorakul, the former governor of Bank of Thailand

Hence, this formula is likely to pose problems for the Bangkok Faction led by

Digital Economy and Society (DES) Minister Buddhipongse Punnakanta and

Education Minister Nataphol Teepsuwan after 9 out of 13 MPs in their faction

left to join other groups. It is said that 2 Bangkok Faction MPs have left to join

the group led by chief government whip Wirat Rattanaset while 5 others left to

join an independent group.

Sira Janejakha went to join the Saam Mitr Group. As a result, the

Bangkok Faction will not enough leverage to secure 2 cabinet seats.

In response to wide speculation that General Prawit Wongsuwan is tipped to lead the

Phalang Pracharat Party next month following the mass resignation of 18 executive

members on Monday (June 1) to pave the way for the election of a new party leadership,

Gen Prawit told the Thai media that he is not ready to take the top job.

The Deputy Prime Minister denied involvement in the move in Phalang

Pracharat. When asked by reporters about the support of several committee

members for him to become the new party leader, he said, “It has not happened

yet. You should not ask. Everything depends on party members.”

He also refused to comment on whether he may take up the leadership of the

party which has been speculated on now since April.

In a related issue about rumoured conflict between Gen Prawit and Deputy

Prime Minister Somkid Jatusripitak, the 2 figures put on smiley faces as they

were chatting to each other, painting a calm atmosphere between them during

the House debate on the budget transfer draft bill yesterday (June 4).

Meanwhile, Industry Minister Suriya Juangroongruangkit, a PPRP executive

committee, said the majority of the executive board has no objection to Gen

Prawit to become the party new leader, replacing outgoing party leader Uttama

Savanayana.

When asked whether he is tipped to become the new energy minister, replacing

incumbent energy minister Sontirat Sontijirawong in a new cabinet line-up, Mr

Suriya denied that he had ever said anything about becoming the new energy

minister, claiming he is happy with his current job as the industry minister.

The Parliament voted to pass the 1st reading of the budget transfer draft bill yesterday

(June 4), with 264-4 votes and 185 abstentions while the opposition called on fellow MPs

to reject the bill, saying it contained no detail about how the money would be spent and

approving it would be tantamount to issuing a blank cheque to the prime minister.

Progressive Movement core leader Piyabutr Saengkanokkul resumed the movement’s

campaign against appointed senators.

The movement plans to launch a campaign against appointed senators entitled,

“why should there be senators” today (June 5) followed by an online seminar

tomorrow (June 6) on the webpage New Consensus. The online platform will be

joined by Mr Piyabutr, former senator and academic Jermsak Pinthong and former

Democrat Party MP Parit Wacharasindhu as keynote speakers. The online forum

will allow the public to express opinion on how to address the issue related to

appointed senators after 1-year in office. The Progressive Movement viewed

appointed senators to help secure Prime Minister Prayut Chan-o-cha’s smooth

transition of power.

Human Rights Watch called on army chief Gen Apirat Kongsompong to protect whistle-

blowers, as soldiers who spoke out against wrongdoing and now faces vicious retaliation.

The call came in response to the case of Sgt. Narongchai Intharakawi who filed several

complaints to the House about alleged corruption involving staff allowances at the Army

Ordnance Materiel Rebuild Centre where he worked as a clerk.

Gen Apirat has promised repeatedly to crack down on abuse, corruption, and

exploitation in the military’s ranks. To make good on that pledge, a 24-hour

hotline with the slogan “Everything is secret, everything reaches the army chief”

was set up, the Human Rights Watch said on its website.

Not only did he see no action taken on his complaints, he received death threats

and faced a disciplinary inquiry for allegedly undermining unity within the army

and damaging his unit’s reputation. Leaked video footage from the inquiry

showed Sgt. Narongchai’s superior telling him that, “You may be able to get

away this time, but there is no next time for you. … Reporting this and that will

only get you in trouble.”

Fearing for his safety, Sgt. Narongchai fled his barracks and sought protection

from the House committee on Legal Affairs, Justice, and Human Rights. He also

publicized his plight by sharing information with the media, arguing that other

ways of disclosing wrongdoing had proved ineffective. But those steps have not

stopped the army from going after him, the website said.

While denying allegations about mistreatment of Sgt. Narongchai, the army

sought a military court warrant to arrest him for being absent from his duties for

more than 15 days. Sgt. Narongchai faces up to 7 years in prison and a

dishonourable discharge.

Human Rights Watch Asia director Brad Adams said in a statement: Gen. Apirat

took a bold step by personally vowing to take charge of efforts to clean up

wrongdoing in the barracks. Done properly, this could have been a major part of

the army chief’s legacy when he retires later this year. But the army’s internal

complaint mechanism is failing and Gen. Apirat’s promises now ring hollow.

Gen. Apirat should act now to end the heavy-handed retaliation against whistle-

blower Sgt. Narongchai.

In a separate Development, army chief Gen Apirat Kongsompong ordered all members of

the army committee responsible for the management and organisation of Muay Thai

bouts on March 6 to be transferred to inactive posts after the management ignored a

cabinet resolution on March 3 calling for the suspension of sports events on worries about

the spread of the disease among crowds.

Among those being removed is Maj Gen Rachit Arunrangsee, director-general of

the Army Welfare Department and director of the Lumpinee boxing stadium. In

fact, Maj Gen Rachit who has now been transferred to an inactive post at the

Army headquarters is due for a mandatory retirement in September this year.

Economic News

Reports have come out that Transport Minister Saksayam Chidchob has put the brakes on

bonuses for employees and executives of all state enterprises under the control of the

Transport Ministry.

Mr Saksayam’s move came after a state enterprise under his ministry presented its

financial statements which included a bonus-payment proposal for staff,

prompting Mr Saksayam to order this agency in question to revise its financial

statements in the wake of the current COVID-19 crisis.

Mr Saksayam reportedly threatened to review positions of executives of this state

enterprise in question after the bonus-payment proposal.

Former international crime prosecutor Wanchai Roujanavong took to his Facebook page

to liken a proposed rehabilitation plan for Thai Airways International Plc (THAI) to the

opening of a Pandora’s Box, which will expose extensive corruption in the ailing national

flag carrier which has been hidden from the public.

Mr Wanchai pointed that the rehabilitation process will likely reveal that THAI

paid prohibitively high fees for the rental of aircraft which is believed to be one of

the reasons for the airline’s heavy losses. He said the airline’s fleet was leased to

THAI through several agents, allegedly with the consent of the airline’s board.

Without the proposed rehabilitation plan, Mr Wanchai said that that the public

would probably never know the truth “while the parasites carried on sucking the

blood out of the airline.”

THAI has also filed for Chapter 11 bankruptcy protection the US courts and has

accumulated debts estimated at about 200 billion baht.

At the end, Mr Wanchai said the loss-ridden State Railway of Thailand (SRT) is

likely to file for bankruptcy protection as well.

On the latest development on Thai Airways International Plc (THAI), a probe committee

led by Pol Lt Gen Charnthep Sesaves, a former Metropolitan Police Bureau

commissioner, found information that could point to irregularities in the management of

the national carrier. This latest information involves annual payments of more than 20

billion baht to maintenance staff, excluding overtime payments of more than 20 billion

baht per year.

In related news, police have launched an investigation into allegations of

discrepancies in THAI ticket sales last year, according to an unnamed source.

THAI’s ticket sales and freight revenues last year totalled 140 billion baht while

there were 25.4 million passengers who flew with THAI, as reported by a source

with the Transport Ministry. Such revenues raised questions of irregularities

involved as the revenues were significantly lower and not consistent with the rates

charged to customers, the source said.

The Trade Policy and Strategy Office reported a 3.44% drop in the consumer price index,

a gauge of headline inflation, in May, driven by lower prices for energy and fresh

produce and the government’s efforts to reduce living costs.

It was a 3rd

straight month of declines after prices fell 2.99% in April and 0.54%

in March, which saw the first contraction in 33 months, according to Pimchanok

Vonkorpon, the office’s director-general.

Ms Pimchanok cited 3 main causes of the drop: low global energy prices, which

constricted domestic prices; a 8.8% year-on-year decrease in prices for fresh

vegetables and fruits, partly from a high-base effect; and the government’s

measures to reduce living costs through temporary cuts in monthly electric and

water bills, as well as for particular consumer products.

The University of the Thai Chamber of Commerce (UTCC) reported yesterday (June 4)

that the consumer confidence index for May 2020 increased to 48.2, from 47.2 in the

previous month after the government eased lockdown restrictions in the 3rd

phase. The

April confidence index is the first improvement in 15 months after the 1st and 2

nd phases

of lockdown easing in May.

The Stock Exchange of Thailand (SET) Index rose 36.83 points or 2.68% to close at

1,411.01 yesterday (June 4), with a total trading value of 122.562 billion baht.

The Thai stock market outperformed the regional markets due to the fund inflow

in hopes of reopening the economy after a lockdown while more easing is

expected to come.

The Thai stock market was buoyed by the banking sector as the share prices were

still laggard, while being big cap stocks, targeting by returning foreign investors,

a stock analyst said. However, the energy sector is still volatile given many

uncertainties surrounding the oil market due to OPEC and allies’ decision on

extending the output cut.

The index was also supported by the China’s service-sector purchasing managers

index (PMI) and US employment numbers amid the unrest in the U.S. which had

halted the dispute between Washington and Beijing. Both counties also posted

positive economic data.

The support level for today (June 5)’s session is predicted at 1,400-1,395 points

and resistance at 1,410-1,430 points.

The Scala Cinema, the remaining standalone single-screen cinema in Bangkok’s Siam

Square which has stood the test of time for more than 50 years, announced its permanent

shutdown due to a devastating impact of the COVID-19 catastrophe.

However, the iconic Cinema said it will continue to lease commercial spaces to

organisations and businesses. The Cinema plans to screen films until its contracts

ends at the end of this year.

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General News

The Centre of Covid-19 Situation Administration (CCSA) reported 17 new COVID-19

cases in the past 24 hours, bringing the total cases in the country to 3,101.

All of the new cases were Thais staying in quarantine after returning from the

Middle East.

The death toll remains at 58, and 2,968 patients have recovered. Among the new

cases, 13 were Thais returning from Kuwait, two returning from Qatar, and two

from Saudi Arabia, according to CCSA spokesman Dr Taweesin Visanuyothin.

Globally the infection rate has reached 6.7 million with nearly 400,000 deaths. The active

cases globally stand at around 3.06 million.

The United States leads in every which way with total cases close to 2 million and

active cases at around 1.1 million.

Political News Headlines in Thai Media

The hashtag #นิรนามตอ้งไดก้ลบัมา (Anonymous must come home) was trending early on

Thursday morning as a 20-year-old twitter user, accused of insulting the country’s

monarchy, was set to go on trial in a court in Pattaya.

o Link- https://www.thaienquirer.com/13969/anonymous-must-come-home-trends-on-

twitter-as-20-year-old-internet-user-set-to-go-on-trial/

Thailand’s government said on Thursday that it had discovered 17 new coronavirus cases,

the largest increase in confirmed cases in over a month.

o Link- https://www.thaienquirer.com/13978/thailand-discovers-17-more-coronavirus-

cases-all-in-state-quarantine/

A student activist group issued a statement Thursday expressing solidarity with protesters

in Hong Kong on the anniversary of China’s crackdown on demonstrators 31 years ago.

o Link- https://www.khaosodenglish.com/politics/2020/06/04/activists-condemn-

tiananmen-killings-give-away-cookies/

Army spokesman Col Winthai Suvaree has denied reports that a sergeant is facing

punishment for exposing alleged graft in an army unit.

o Link- https://www.bangkokpost.com/thailand/general/1929512/army-rejects-

punishment-claim

Breaking his long silence about speculation that he might be elected the new leader of the

ruling Palang Pracharat party, Deputy Prime Minister Prawit Wongsuwan told the Thai

media that he is not ready to take the job.

o Link- https://www.thaipbsworld.com/general-prawit-says-he-is-not-ready-yet-to-

become-palang-pracharat-party-leader/

The Khon Kaen Provincial Hospital Director has threatened to sue Public Health

Permanent Secretary, Dr. Sukhum Kanchanapimai, after he was transferred to

Chanthaburi province over alleged corruption in connection with donations to the

Hospital Development Fund.

o Link- https://www.thaipbsworld.com/public-health-perm-sec-threatened-with-a-

malfeasance-lawsuit/

The House of Representatives on Thursday kicked off a debate on a bill seeking to

transfer about 88 billion baht from the fiscal 2020 budgets of each ministry to a central

fund to fight the Covid-19 pandemic and rehabilitate the economy.

o Link- https://www.bangkokpost.com/thailand/general/1929508/covid-19-fund-bill-

passes-first-reading

Officials from the Natural Resources and Environmental Crime Division (NRECD)

yesterday inspected close to 400 rai of forest land in Ratchaburi province which has

allegedly been encroached on by Thawee Kraikupt, a former deputy transport minister

and father of Palang Pracharath MP Pareena Kraikupt.

o Link- https://www.bangkokpost.com/thailand/general/1929532/team-probes-forest-

land-in-ratchaburi

Public Health Minister Anutin Charnvirakul has become the focus of netizens’ anger after

he and his entourage flouted social distancing rules while eating at a restaurant.

o Link-

https://www.nationthailand.com/news/30389046?utm_source=category&utm_medium

=internal_referral

Economic News Headlines in Thai Media

Despite inflation dropping to an 11-month low, the Bank of Thailand (BOT) said on

Thursday that the current situation cannot be defined as “deflation.”

o Link- https://www.thaienquirer.com/13998/bot-says-that-the-current-economic-

climate-cannot-be-defined-as-deflation-yet/

The Bank of Thailand’s Monetary Policy Committee (MPC) are worried about rising

non-performing loans and urge for more adequate and timely fiscal policies.

o Link- https://www.thaienquirer.com/13989/mpc-worried-about-rising-npl-pointed-

out-real-estate-as-one-of-the-most-vulnerable-sectors/

Just a few weeks ago, it was the coronavirus that filled my Instagram feed—today, it is

Black Lives Matter. And while Thailand’s population isn’t split into black and white, we

stand in solidarity with them in this uprising to no longer accept racism as a norm.

o Link- https://www.thaienquirer.com/13964/opinion-some-reflection-is-required-for-

blacklivesmatter-to-truly-make-a-difference-in-thailand/

Nissan Motor Thailand confirmed to Thai Enquirer this week that it will be letting go of

staff after rumours had been circulating for months that it would be closing some of its

operations in Thailand.

o Link- https://www.thaienquirer.com/13980/exclusive-nissan-will-begin-letting-

people-go-in-thailand/

A cybersecurity expert has warned users of messaging app Line about the risk of having

their accounts hacked.

o Link- https://www.bangkokpost.com/business/1929636/line-users-alerted-to-hacking-

risk

Domestic tourism stimulus measures, including proposals for gift vouchers and cash

handouts, are expected to be concluded next week, says Tourism Authority of Thailand

(TAT) governor Yuthasak Supasorn.

o Link- https://www.bangkokpost.com/business/1929700/tat-readies-local-tourism-

stimulus

Exporters are being urged to make more use of free trade agreement (FTA) privileges and

the Generalized System of Preferences (GSP) during the coronavirus crisis, especially in

high-demand categories like food, drinks and processed farm products.

o Link- https://www.bangkokpost.com/business/1929624/exporters-urged-to-use-

privileges

A government panel is stepping up to help debt-ridden Thai Airways International Plc

(THAI) pass any regulatory and contractual hurdles ahead of the national carrier's

planned debt rehabilitation, according to Prapas Kong-Ied, director-general of the State

Enterprise Policy Office (Sepo).

o Link- https://www.bangkokpost.com/business/1929496/more-help-for-thai-airways

SET-listed AEC Securities has resolved its net capital rule problem by obtaining funding

from a juristic person and has opted for a capital increase by allotting new ordinary

shares to reduce future investment risk.

o Link- https://www.bangkokpost.com/business/1929588/aec-gets-juristic-person-

funding-avoids-capital-rule-snag

SET-listed BCPG, a renewable power generation arm under Bangchak Corporation, has

cut capital expenditures for this year to between 8-15 billion baht, says president and

chief executive Bundit Sapianchai.

o Link- https://www.bangkokpost.com/business/1929648/bcpg-cuts-capital-spending-

for-2020

The consumer price index, a gauge of headline inflation, fell 3.44% year-on-year in May,

the biggest decline in nearly 11 years, led by lower prices for energy and fresh produce

and the government's efforts to reduce living costs.

o Link- https://www.bangkokpost.com/business/1929664/may-prices-down-3-4-led-by-

oil-slump

The BBS Joint Venture Group, which won the bid to develop U-Tapao Airport and the

adjoining airport city, has established Utapao International Aviation Co to act as a

Special Purpose Vehicle (SPV) in the signing of a joint investment pact with the Eastern

Special Development Zone Policy Committee on June 19.

o Link-

https://www.nationthailand.com/business/30389066?utm_source=category&utm_me

dium=internal_referral

Govt mulling which ‘red’ businesses can reopen in phase 4 easing

o Link-

https://www.nationthailand.com/news/30389056?utm_source=category&utm_mediu

m=internal_referral

Issues to be watched out for

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 26-June 16, 2020 – The application period for the next governor of the Bank of

Thailand (BoT).

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.

June 20, 2020 – A by-election on the Constituency 4 of Lampang is expected to be held.

June 25, 2020 – The deadline for the Office of Attorney General (OAG) whether to appeal

or not appeal the lower court’s acquittal of Panthongtae “Oak” Shinawatra, son of former

prime minister Thaksin Shinawatra, for alleged money laundering.

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

on incoming flights.

June 30, 2020 – The government is expected to lift lockdown restrictions imposed under

the emergency decree.

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 2, 2020 – The shortlist of candidates for the new governor of the Bank of Thailand

(BoT) will be concluded.

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

year.

July 16, 2020 – The deadline set for the Phalang Pracharat Party (PPRP) to hold a general

assembly to select a new executive board.

August, 17, 2020 – The first day of hearings for Thai Airways International Plc (THAI)’s

bankruptcy case.

August 29, 2020 – The deadline for farmers to return the banned agri-chemicals, paraquat

and chlorpyrifos, in their possession to sellers.

September 21, 2020 – The National Economic and Social Development Council (NESDC,

formerly known as the National Economic and Social Development Board or NESDB) is

to revise the 20-year national strategy at an annual meeting to respond to the COVID-19

crisis.

September 30, 2020 – The Stock Exchange of Thailand (SET) is set to extend the revised

equity short-selling regulations from June 30 to September 30 as stock market volatility

remains high in the wake of the Covid-19 pandemic.

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 1,411.01 +36.83

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 June 4, 2020

Buying, Selling or Transfer of shares by Owners/Management

Stock Code Volume Value Action

ADB 58,300 0.67 Sale

CMO 6,100 1.03 Sale

LPH 20,000 4.36 Purchase

MBK 20,000 15.1 Sale

MODERN 194,400 2.42 Purchase

PRINC 25,000 2.86 Sale

RJH 31,000 22.76 Sale

SNP 20,000 10.5 Purchase

SKR 830,000 4.8 Sale

TSTE 4,000 7.05 Purchase

TASCO 50,000 23.4 Sale

KUN 15,000 0.89 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 4 Jun 2020

Unit: M.Baht

Investor Type Buy Sell Net

Value % Value % Value %

Local Institutions 13,914.23 11.35 10,034.28 8.19 3,879.95 -

Proprietary

Trading

11,430.99 9.33 9,954.28 8.12 1,476.71 -

Foreign Investors 41,024.45 33.47 38,554.88 31.46 2,469.57 -

Local Individuals 56,192.50 45.85 64,018.73 52.23 -7,826.23 -

Monthly Cumulative between 1 - 4 Jun 2020

Unit: M.Baht

Investor Type Buy Sell Net

Value % Value % Value %

Local Institutions 30,551.67 11.81 24,223.69 9.36 6,327.98 -

Proprietary

Trading

23,811.95 9.2 20,945.90 8.1 2,866.05 -

Foreign Investors 86,045.43 33.26 80,092.43 30.96 5,953.00 -

Local Individuals 118,294.86 45.73 133,441.89 51.58 -15,147.03 -

Yearly Cumulative since 1 Jan - 4 Jun 2020

Unit: M.Baht

Investor Type Buy Sell Net

Value % Value % Value %

Local Institutions 839,653.16 11.98 765,739.09 10.92 73,914.07 -

Proprietary 711,912.62 10.15 711,576.08 10.15 336.54 -

Trading

Foreign Investors 2,505,181.52 35.73 2,693,157.62 38.41 -

187,976.10

-

Local Individuals 2,953,967.40 42.14 2,840,241.90 40.51 113,725.50 -

Total Trading Value 122,562.18 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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