by wilbersuen | Aug 20, 2024 | News
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
by Willie Tan | Aug 19, 2024 | News
Paetongtarn Shinawatra was officially confirmed as Thailand’s prime minister by the king on Sunday, August 18, following her election by parliament two days earlier. This sets the stage for her to form a new Cabinet in the coming weeks.
At 37 years old, Paetongtarn is Thailand’s youngest prime minister, succeeding Srettha Thavisin, who was removed by the Constitutional Court, an institution often at the centre of the country’s ongoing political unrest. Paetongtarn is the daughter of Thaksin Shinawatra, a prominent and polarizing political figure, and she secured the position after receiving 319 votes in the House of Representatives, making her Thailand’s second female prime minister and the third member of the Shinawatra family to hold the office, following her father and aunt Yingluck Shinawatra.
The king’s approval, a formal requirement, was announced during a ceremony in Bangkok by the House Secretary, Apat Sukhanand. Paetongtarn, dressed in official attire, knelt before a portrait of King Vajiralongkorn to pay her respects and delivered a brief speech expressing gratitude to the king and parliament. She emphasized her commitment to working with legislators openly and listening to all viewpoints to ensure the country progresses with stability.
Despite her lack of previous government experience, Paetongtarn faces significant challenges, including a struggling economy and declining support for her Pheu Thai Party, which has yet to fulfil its promise of a 500 billion baht (approximately $14.46 billion) digital wallet program.
After receiving the royal endorsement, Paetongtarn embraced her father and family members. In her initial press conference, she pledged to continue the policies of her predecessor, Srettha, focusing on economic stimulus, drug enforcement, healthcare improvement, and promoting gender diversity. She reaffirmed her commitment to the digital wallet policy, although she intends to review it to ensure fiscal responsibility.
Paetongtarn stated she has no plans to appoint her father, Thaksin, to any government position but will seek his counsel. She also mentioned that her government’s policies will be presented to parliament next month.
The recent dismissal of Srettha after less than a year in office serves as a warning of the risks Paetongtarn faces in a political environment characterized by coups and court rulings that have repeatedly disrupted governments. The Shinawatra family’s political legacy and future are also at risk, as their once-dominant influence suffered a setback in the last election, forcing them to collaborate with their long-time adversaries in the military to form a government.
Recent events suggest a breakdown in the fragile agreement between Thaksin and the royalist establishment. This facilitated his return from 15 years of self-exile in 2023 and Srettha’s brief tenure as prime minister. A week earlier, the court that removed Srettha also disbanded the Move Forward Party, which had won the 2023 election, over its campaign to amend a royal defamation law, arguing it threatened the constitutional monarchy. The popular opposition party has since reorganized under a new banner, the People’s Party.
Source: CNA
by Daryl Lum | Aug 14, 2024 | News
Clients often ask us whether developers will increase their prices as time passes. The answer in most cases is yes. If you made a purchase during launch, the price which you paid for that development is typically lower than what you would pay if you bought into the development after a few years.
An example of this:
Let us take a look at a very popular project in the Rama 9 area. This project is Nue District R9. It is located next to Jodd Fairs, behind Grand Central Rama 9. This area is often heralded as the second central business district with the Sathorn Financial District being the first. Companies like Unilever and Huawei are in this area. So are the Stock Exchange of Thailand and the Chinese Embassy.
Back in 2022, the per square meter of a unit in Nue District R9 was about THB 130,000 to just above THB 140,000 per square meter.
Fast forward to July 2024.
This is the current pricing for the last eight units in the development. The per square meter pricing, before discount, has gone up to about THB 200,000 per square meter. After the discount, the per square meter pricing is averaging at just under THB 200,000 per square meter.
The increase in pricing is more than 30% from the launch.
We make this comparison because we sold units in Nue District R9 in 2022 and today in 2024, a client wants to purchase a unit in the same development.
To summarise, buying a development during launch is advantageous for two main reasons.
- Prices are cheaper during launch.
- You have more choices when choosing a unit.
To ensure this, may we suggest a few pointers.
- Always buy from a reputable developer.
A large local Thai developer that is listed on the Stock Exchange of Thailand. Such developers have holding power and have reputations to maintain. They will not slash prices and will gradually sell units at higher prices over time. There is no time limit for Thai developers to sell out their stock. Nue District R9 is by Noble Development. Noble Development was the developer behind Noble Ploenchit. Noble Ploenchit was completed in 2016. The development was sold out only this year. The developer took their time selling their unsold stock.
- Buy a development in a prime location.
The reason why Nue District R9’s pricing increased is because it is located in the Rama 9 financial district. It is within walking distance of Phra Ram 9 MRT Station. There are development plans in the area moving forward. The land that Jodd Fairs is sitting on will eventually become a mixed development with offices and hotels. Yes, we agree that there is a lot of vacant land in Thailand. However, land is extremely limited in the core regions of Bangkok like Siam, Ratchathewi, Ploenchit, Rama 9, Sathorn, Silom, Thong Lor and Ekkamai.
There is a new development in the Rama 9 area called Nue Epic Asok-Rama 9. Prices start from about THB125,000 per square meter. This is significantly lower than the current price of Nue District R9.
Here is a review of Nue Epic Asok-Rama 9: https://daryllum.com/my-review-of-nue-epic-asok-rama-9/
Yours sincerely,
The editorial team at Invest Bangkok Property
by Willie Tan | Aug 14, 2024 | News
The government is advancing a bill to legalise casinos within entertainment complexes across the country. According to sources, the Finance Ministry has completed drafting the Entertainment Complex Act. The bill will undergo a public hearing as required by Section 77 of the constitution, ensuring public input before being presented to the cabinet for review.
Why the move?
Deputy Prime Minister and Commerce Minister Phumtham Wechayachai confirmed that coalition party leaders will meet today to discuss the bill, which aims to legalise and regulate casinos as part of the broader entertainment industry. The bill argues that such complexes can significantly boost tourism revenue and domestic investment.
How does it work?
Under the proposed legislation, entertainment complexes must obtain a license valid for up to 30 years, with an initial registration fee of 5 billion baht and an annual payment of 1 billion baht. The license can be renewed for an additional 10 years after the initial period. Entry to these complexes is restricted to individuals over 20 years old, with Thai citizens required to pay a 5,000 baht entrance fee.
The bill also establishes a policy board, chaired by the prime minister, to oversee regulations governing these complexes. According to Mr. Chai, the project could have a substantial economic impact, with the global casino-based entertainment complex industry projected to grow from $1.5 trillion in 2022 to $2.2 trillion by 2028. He emphasised the need for Thailand to expedite its plans to capture a share of this lucrative market.
A House committee report estimates that the project could generate at least 12 billion baht in taxes in its first year. The report examined the economic, social, cultural, and legal implications of the initiative, identifying five potential locations: two in Bangkok, and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket.
However, Pariyes Angkurakitti, a spokesman for the opposition Thai Sang Thai Party, criticised the project, warning that lax law enforcement could undermine efforts to properly regulate the casino industry.
Source: Bangkok Post
by Willie Tan | Aug 14, 2024 | News
Thailand has launched new visa programs designed to facilitate extended stays and remote work, aligning with a global trend of attracting higher-spending visitors with a smaller impact.
Content Creator Steve Lim’s Unexpected Journey to Thailand
Steve Lim, a content creator from New Zealand, never intended to settle in Thailand; his original destination was New York. However, during a brief stopover in Bangkok in 2022, his U.S. visa fell through, forcing him to reconsider his plans. Despite initial uncertainties, the Thai capital, once unfamiliar and emerging from the pandemic, became his home. Now, at 27, Mr. Lim works remotely in business development for a Chinese firm, thriving in what he describes as Southeast Asia’s “hub of creativity.”
‘Ignite Thailand’s Tourism’ campaign
Recognising the growing appeal to digital nomads like Lim, the Thai government has introduced new visa schemes under the ‘Ignite Thailand’s Tourism’ campaign to make extended stays easier. Mr Nithee Seeprae, a deputy governor at the Tourism Authority of Thailand (TAT), emphasised that these policies are designed to boost tourism revenue, enhance regional competitiveness, and attract business investors. Among the new offerings is the Destination Thailand Visa (DTV), which allows remote workers, freelancers, and digital nomads to stay in Thailand for up to five years, with multiple entries and an application fee of 10,000 Thai baht (US$285). Other visa changes include expanded visa-free entry for nationals of 93 countries and extended stay options for graduates of Thai universities.
For Lim, who has dealt with short-term visas throughout his time in Bangkok, the new DTV is a welcome relief. He initially relied on a holiday visa, frequently leaving and re-entering the country to renew his stay, which led to burnout. Eventually, he switched to an education visa to study the Thai language remotely, though he knew this was only temporary. With the new DTV, Lim and others in his network see a chance to secure their future in Thailand.
What is the current travel trend?
The travel industry is seeing a trend towards longer stays and higher spending, with Thailand experiencing a shift in visitor behaviour. According to Olivier Ponti, director of intelligence and marketing at ForwardKeys, 25% of visitors to Thailand now stay for over two weeks, and stays of 22 nights or more have fully recovered to pre-pandemic levels.
In response to this trend, other Southeast Asian countries like Indonesia and Malaysia have also introduced long-term visa options for digital nomads. Peter Guis, owner of TMT Visa Service Phuket, noted the immediate interest in Thailand’s DTV, though he acknowledged uncertainties about its long-term impact. Stephen Noton, international marketing advisor for Tourism.co.th, added that broader economic factors, such as global inflation and airline prices, will influence the success of these initiatives.
Quality Over Quantity
Thailand’s focus on attracting “quality over quantity” tourists aims to bring both economic and social benefits, according to Paul Pruangkarn, chief of staff at the Pacific Asia Travel Association (PATA). He emphasised the need for balance, as the government targets 40 million visitors in 2024 while ensuring sustainable industry growth and social harmony. Infrastructure improvements, including airport expansions and a high-speed rail network, are planned to support this growth and enhance the tourist experience.
In the competitive tourism landscape, Pruangkarn expects continued adaptation of immigration policies. Although Thailand may have been slower to welcome this new wave of remote workers, the country now recognises their value. “You have to stay competitive,” he said, “and ensure you’re one step ahead of your neighbours.”
Source: CNA
by Willie Tan | Aug 14, 2024 | News
Bangkok Shopping Centers Report Strong Recovery in H2 2023, Driven by Foreign Tourism
The Bangkok shopping centre sector has shown a robust recovery in the second half of 2023, largely fueled by an influx of international tourists, according to RETalk Asia. Despite challenges from e-commerce competition and the COVID-19 crisis, shopping centres, including those managed by Central and Robinson groups, now hold about 27% of the market. Hypermarkets account for 28%, while The Mall Group, Siam Piwat, LH Group, Seacon Square, and Future Park hold smaller shares.
Real Estate Careers in Malaysia Surge Amid Market Recovery
Malaysia’s real estate sector is witnessing significant career growth as the market recovers, reports Bernama. AFZ Realty Sdn Bhd Managing Director, Afizan Mohktar, highlighted the rising demand for real estate consultants, who are crucial in sustaining property development and driving industry progress.
Indian Developer Zoya Developments to Invest AED2 Billion in UAE Market
Indian real estate developer Zoya Developments has announced its entry into the UAE market, with plans to invest over AED2 billion in the next three years, as reported by PropertyNews.ae. Their first Dubai project, located in the Furjan area, is set for completion by 2026 and aims to set new benchmarks in residential living with modern design and smart home technology. Zoya Developments, renowned in India for delivering over 100,000 units and developing more than two million square feet of prime real estate, will focus on prime locations in Dubai, including Furjan, Dubai Islands, and JVT.
Source: PropertyGuru Asia Property Awards
