Expansion of Thailand-Malaysia Rail Cooperation: Bangkok to Penang Route Officially Approved

Expansion of Thailand-Malaysia Rail Cooperation: Bangkok to Penang Route Officially Approved

The State Railway of Thailand (SRT) has announced that a new train service from Bangkok’s Bang Sue Grand Terminal to Penang, Malaysia, will commence within two to three months.

 

On August 20, Mr. Ekkarat Sri-arayangpong, Chief of the Office of the Governor of SRT, confirmed this development. It was endorsed by Mr. Awirut Thongnet, Deputy Governor of SRT, during the 42nd KTMB – SRT Joint Conference held in Kota Kinabalu, Sabah, Malaysia, from August 13-16.

 

The initiative aims to strengthen bilateral rail cooperation, improve passenger travel, and enhance cross-border goods transportation between Thailand and Malaysia. It aligns with the broader policy of Mr. Surapong Piyachot, Deputy Minister of Transport, to stimulate economic growth and boost tourism for both nations.

 

The conference approved the Bangkok Grand Station – Padang Besar – Butterworth, Penang, route in principle, which is expected to enhance travel connectivity and promote tourism and trade between Thailand and Malaysia.

 

The agreement also includes extending the MySawasdee tourist train service from Hat Yai Junction in Thailand to Surat Thani Station, following positive feedback and full occupancy rates on all trips.

 

This extension is anticipated to further stimulate tourism and generate increased revenue for both nations. Further discussions will focus on finalizing operational details and implementation timelines.

 

A joint working group will be formed to advance the launch of the extended Bangkok-Padang Besar-Butterworth service, expected to commence within the next 2-3 months, with an initial 6-month trial period.

 

Mr. Ekkarat also highlighted that the meeting explored further freight transport cooperation, with the SRT expressing readiness to support cross-border goods transportation through routes such as Padang Besar – Hat Yai Junction, Hat Yai Junction – Bang Klam/Ban Thung Pho Junction/Kantang, and Padang Besar – Bangkok/Sapli/Na Pradu.

 

In addition, the success of the ASEAN Express train service connecting Malaysia, Thailand, Laos, and China was recognized, and plans to increase its frequency from once a week to twice a week were discussed.

 

This collaboration marks a significant expansion in Thailand-Malaysia rail connectivity, promoting seamless travel, trade, and tourism while reinforcing Thailand’s ambition to become a regional hub for tourism and logistics.

 

Source: Khaosod English

 

Yours sincerely,

The editorial team at Invest Bangkok Property

Thai Finance Minister: Digital Wallets Set to Ignite Economic Transformation

Thai Finance Minister: Digital Wallets Set to Ignite Economic Transformation

The registration process for the 10,000-baht stipend under the Digital Wallet program commenced on August 1st, with funds expected to be accessible in the fourth quarter of this year to stimulate economic activity. The initiative is projected to inject 450 billion baht into Thailand’s economy, benefiting 45 million Digital Wallet users nationwide.

 

This program is anticipated to generate four significant economic “whirlwinds,” revitalizing the manufacturing sector and bolstering confidence in Thailand’s economy. The disbursement of funds will drive consumer spending, encourage transactions in both small and large businesses, create new investment opportunities, and boost purchasing power, ultimately doubling economic activity and reviving the production sector.

 

Key Highlights

 

Overview of the Digital Wallet Initiative

  • The Digital Wallet initiative is a 450-billion baht program launched by the Thai government.
  • It aims to increase monetary circulation, reduce living costs, improve quality of life, strengthen economic resilience, create job opportunities, and support the advancement of digital technology and innovation.
  • The program commenced on August 1, with registration open until September 15 for eligible Thai citizens.
  • Eligible participants include those not serving prison sentences, not required to refund previous government assistance, and not disqualified from other governmental programs.

 

Economic Impact of the Initiative

  • The initiative is expected to generate four key economic “whirlwinds”:
    • The first “whirlwind” will boost consumer spending and support grassroots economic growth.
    • The second will promote spending at both small and large businesses.
    • The third will encourage spending between major retailers, fostering investment opportunities.
    • The fourth will temporarily increase purchasing power, leading to doubled economic activity, a revived production sector, and renewed confidence in Thailand’s economy.

 

Registration and Disbursement Details

  • Participants can register via the Thang Raj app or through personal registration from September 16 to October 15 for those without smartphones.
  • Businesses interested in participating can begin registering on October 1, with around two million stores expected to join.
  • Funds will be disbursed in the fourth quarter, with spending restrictions for those without smartphones, who must present their ID cards for in-person purchases.
  • Purchases are limited to goods or services within the recipient’s registered district, excluding items on a designated “Negative List.”

 

Funding for the Initiative

  • The program will be funded through multiple sources:
    • 165 billion baht from the 2024 fiscal budget, including a 122 billion baht supplementary budget and 43 billion baht from budgetary management.
    • 285 billion baht from the 2025 fiscal year budget.
  • The Deputy Finance Minister has confirmed that funding the initiative poses no issues.

 

The Growing Influence of Digital Wallets

 

Digital wallets are rapidly transforming the financial sector, revolutionizing how consumers and businesses handle transactions. Finance ministers globally are increasingly acknowledging the potential of these digital payment systems to enhance economic efficiency, improve transaction security, and foster financial inclusion. As more people adopt digital wallets for their convenience and accessibility, governments are beginning to observe changes in spending behaviors and economic dynamics.

 

Digital wallets have the power to significantly increase consumer spending by removing the need for physical cash and offering easy access to funds. This convenience encourages spontaneous purchases and smooth transactions, leading to heightened economic activity. Additionally, digital wallets often include budgeting tools that help users manage their finances better, boosting overall economic confidence.

 

For businesses, digital wallets streamline transactions and reduce the costs associated with handling cash. Small and medium enterprises, in particular, can benefit from faster transaction times, allowing them to serve customers more efficiently. The integration of digital wallets with loyalty programs and targeted promotions also enables businesses to collect valuable customer data, enhancing personalized marketing efforts and fostering customer loyalty, which is crucial in a competitive market.

 

On a broader scale, digital wallets can play a critical role in financial inclusion, especially in regions with limited banking infrastructure. By providing a platform for unbanked populations to participate in the economy, these wallets can stimulate local businesses and contribute to economic stability. As finance ministers recognize the potential of digital payment solutions, they are likely to implement supportive policies, creating conditions for economic “whirlwind” effects that benefit both consumers and businesses.

 

 

Source: Thailand Business News

 

Yours sincerely,

The editorial team at Invest Bangkok Property

Projected Condo Launches in Greater Bangkok to Fall Short

Projected Condo Launches in Greater Bangkok to Fall Short

The number of new condominium launches in Greater Bangkok is anticipated to be below expectations this year, mainly due to subdued demand amidst an economic downturn, as reported by Colliers Thailand.

 

Phattarachai Taweewong, Director of Research at Colliers Thailand, highlighted that the condominium market in Greater Bangkok experienced a slowdown in the second quarter of this year, driven by sluggish economic growth in Thailand and a weakening global economy.

 

“The overall condominium market in Bangkok has decelerated, with a lack of significant demand drivers,” Mr. Phattarachai explained.

 

“In the mid to lower-end market segment, buyers are grappling with high household debt, elevated interest rates, and a high rate of mortgage rejections from banks.”

 

Colliers’ market analysis revealed that in the second quarter, 5,386 new condominium units were launched across 15 projects in Greater Bangkok, with a combined value of 35.6 billion baht.

 

Of these, approximately 1,000 units from four projects were in the high-end segment, located in inner-city areas, and achieved a sales rate of 65%. The remaining units, situated outside the city center, saw a sales rate of only 30%.

 

In total, the first half of 2024 saw 8,674 new condominium units launched in Greater Bangkok, with a combined value of 49.3 billion baht. This represents nearly a 50% decline compared to the 15,413 units launched in the same period last year.

 

Despite the significant drop in the number of units, the sales value for the first half of 2024 showed a slight increase from 48.6 billion baht in the first half of 2023. This was primarily due to the fact that the majority of units launched in the first half of 2023 were in the lower-priced segment.

 

Mr. Phattarachai anticipates that new condominium launches in Greater Bangkok will not exceed 25,000 units this year, falling short of the 30,000-35,000 units projected in the first quarter.

 

“Developers observed that sales in the second quarter did not meet expectations,” he said.

 

“Even with property tax incentives in place, the transfer of residential units is expected to decline this year compared to last year due to banks’ mortgage rejections.”

 

These incentives include reducing transfer and mortgage fees to 0.01% each, down from 2% and 1% respectively, for residential units priced below 7 million baht. These measures will remain effective until the end of this year.

 

As of the end of the first half of 2024, the condominium inventory in Greater Bangkok stood at approximately 56,800 units.

 

Given the current weak demand, it is estimated that it will take 84 months to clear this inventory, compared to 60 months under more favorable economic conditions, Mr. Phattarachai noted.

 

Source: Bangkok Post

 

Yours sincerely,

The editorial team at Invest Bangkok Property

Thailand anticipates welcoming 1 million Japanese visitors by year-end

Thailand anticipates welcoming 1 million Japanese visitors by year-end

The Ministry of Tourism and Sports aims to attract at least 1 million Japanese tourists to Thailand by the end of this year, an official has stated.

 

Polphum Wipatphumiprathet, an aide to Tourism and Sports Minister Sermsak Pongpanich, mentioned on Sunday that the ministry is actively seeking ways to increase Japanese tourist numbers and plans to discuss enhancing tourism cooperation with relevant Japanese authorities.

 

Mr. Polphum highlighted that Japan, with a population of 124 million and being the world’s fourth-largest economy, represents a significant market. Japanese tourists are also regarded as high-quality visitors.

 

“Japan is a crucial tourist market that we must sustain and expand,” Mr. Polphum stated during his visit to the Tourism Authority of Thailand’s office in Japan.

 

Last year, around 800,000 Japanese tourists visited Thailand, and the ministry aims to increase this figure to 1 million by the end of this year. Achieving this target is expected to contribute to the ministry’s goal of generating 3.5 trillion baht in tourism revenue.

 

From January to June this year, out of 17.5 million foreign arrivals, 470,789 were Japanese tourists. The top five foreign arrivals during the first half of the year were from China (3.43 million), Malaysia (2.43 million), India (1 million), South Korea (934,983), and Russia (920,989).

 

Mr. Polphum emphasized that tourists prioritize safety, hygiene, and convenience. The ministry is committed to developing and promoting tourism to attract more international visitors, thereby boosting the country’s economic growth.

 

Source: Bangkok Post

 

Yours sincerely,

The editorial team at Invest Bangkok Property

First Train Through Thailand’s Longest Railway Tunnel to Run on Sunday

First Train Through Thailand’s Longest Railway Tunnel to Run on Sunday

The State Railway of Thailand (SRT) is set to launch the first train on the Northeast dual-track route on Sunday, July 28. This route extends from Mab Kabao to Muak Lek stations in Saraburi province, covering a distance of 13.2 kilometers.

 

This section is part of the larger 42.9-kilometer dual-track route that runs from Mab Kabao to Khlong Khanan Chit station in Nakhon Ratchasima province. Pichet Kunadhamraks, the director-general of the Department of Rail Transport, shared this development.

 

The inaugural train will pass through the Pha Sadet tunnel, situated between Mab Kabao and Hin Lab station. The dual tunnel is notable for its dimensions: 7.5 meters wide, 7 meters high for each side, and 5.41 kilometers long, making it the longest railway tunnel in Thailand.

 

Between Hin Lab and Muak Lek stations lies the Hin Lab tunnel. This double-track tunnel is 11 meters wide, 7.3 meters high, and stretches 265 meters long. It further enhances the efficiency and safety of the route.

 

Pichet highlighted that the Pha Sadet tunnel is fully equipped with essential safety equipment, including ventilation and lighting systems, a supervisory control and data acquisition system, fire extinguishers, CCTV surveillance, emergency telephones, and backup generators. The tunnel also features sensors that detect unauthorized personnel, heat, and levels of oxygen, carbon monoxide, and sulfur dioxide, adhering to the National Fire Protection Association 130 standard for transit and passenger rail.

 

There are 11 cross passages between the tracks in the Pha Sadet tunnel, located every 500 meters. These passages are designed to facilitate the evacuation of passengers in the event of an accident or other emergencies.

 

“The two new tunnels will help cut travel time to the northeastern region by rail by about 20 minutes,” Pichet stated. This improvement is a significant step towards enhancing the efficiency of Thailand’s railway network.

 

The entire route, from Saraburi to Nakhon Ratchasima, terminating at Thanon Chira junction, covers a total distance of 134 kilometers. It is scheduled to be fully operational by 2025, marking a new era in Thai rail transport.

 

With these advancements, Thailand is poised to offer faster, safer, and more efficient rail travel, benefiting both residents and tourists. The launch this Sunday is just the beginning of an exciting journey towards modernized rail infrastructure in the country.

 

Source: The Nation

 

Yours sincerely,

The editorial team at Invest Bangkok Property

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