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World Bank outlines key reform priorities for Thailand’s economic growth

The report underscores the importance of improving education outcomes, enhancing tech competitiveness, promoting sustainable practices, and strengthening fiscal institutions for Thailand's economic advancement.
The World Bank has launched its Systematic Country Diagnostic (SCD) Update for Thailand, outlining five reform priorities for the country to boost growth during a sustained economic downturn.
- The World Bank’s Systematic Country Diagnostic Update for Thailand emphasizes five key reform priorities to drive sustainable growth and inclusive prosperity in the country.
- Thailand needs to focus on building strong human capital, creating a competitive and innovative economy, and ensuring sustainable and climate-resilient development to achieve economic prosperity and societal equity.
- The report underscores the importance of improving education outcomes, enhancing tech competitiveness, promoting sustainable practices, and strengthening fiscal institutions for Thailand’s economic advancement.
The priorities include building strong human capital, fostering a competitive and innovative economy, unlocking growth in secondary cities, ensuring sustainable and climate-resilient development, and strengthening fiscal institutions and public finance.
The report highlights the importance of Thailand’s efforts to enhance education outcomes, particularly in the areas of science, technology, engineering, and mathematics (STEM) fields. It also emphasizes the need for the country to improve its technological competitiveness in the global market by investing in research and development, innovation, and digital infrastructure.
Furthermore, the report underscores the significance of promoting sustainable practices across various sectors such as agriculture, manufacturing, and energy production. This includes initiatives to reduce carbon emissions, increase energy efficiency, and promote renewable energy sources.
In addition, the report addresses the challenges posed by climate change and the need for Thailand to develop strategies to mitigate its impact. This includes measures to adapt to changing weather patterns, protect natural resources, and reduce vulnerability to extreme weather events.
The Stakeholder Consultation and Dialogue (SCD) Update involved input from a diverse range of stakeholders including government agencies, private sector representatives, non-governmental organizations, and academic institutions. The aim of the update is to provide support for Thailand’s transition towards greater economic prosperity while maintaining environmental integrity. This involves a balanced approach that considers both economic growth and environmental sustainability.
 

Thailand smiles at both Taiwan and China as it courts EV investment

Thailand has seen a rise in investment from Taiwan as the Southeast Asian nation seeks to build up its electric-vehicle and chip industries, even as it stays open for business with mainland China.

One of the newest symbols of this expansion is a plant by Taiwan's Delta Electronics in an industrial park in Samut Prakan province, east of Bangkok.

During a visit last moth, Prime Minister Srettha Thavisin said his government was happy to support the project, which is in line with the Ignite Thailand vision to promote the domestic EV industry in Southeast Asia's top auto producer. The government has offered tax incentives and other attractions for investment.

Delta's new plant will make equipment for vehicles and EV chargers. The roughly 3 billion baht ($82 million) facility includes a research and development center.

Delta's Thai subsidiary is listed on the Bangkok stock market and ranks among the top three companies in market capitalization. Growing geopolitical risks have pushed the Delta group to scale down production in China and expand investment in Thailand.

Srettha credited Delta for "bolstering Thailand's supply chain ecosystem" for EVs and said that the government will continue to provide support.

Elsewhere in Thailand's EV sector, iPhone assembler Hon Hai Precision Industry, also known as Foxconn, has joined forces with state-owned energy group PTT to build a plant that will manufacture EVs on contract. Taiwan's Kymco has partnered with PTT to roll out electric motorcycles in the Thai market.

Taiwanese companies are investing in Thailand's semiconductor industry as well. Circuit board maker Zhen Ding Technology and Thai conglomerate Saha Group will build a plant in Thailand's east. The first phase of the project is expected to cost 10 billion baht, with operations slated to begin next year.

 

Source : NIKKEI ASIA

Thailand Strengthens EV Support Program to Promote Battery Innovation

The EV Board approved measures to promote investment in battery cell production and energy storage systems, attracting leading battery manufacturers to invest in Thailand.
Thailand’s National Electric Vehicle Policy Committee has approved new measures to promote the adoption of electric buses, trucks, and the establishment of battery bases.
Thailand’s EV Board approved measures to support the uptake of electric buses and trucks, aiming to make the country a regional EV hub and achieve carbon neutrality goals.
Companies can now deduct expenses for e-bus and e-truck purchases from their corporate income tax, incentivizing the transition from fossil fuel vehicles to EVs.
The EV Board also approved measures to promote investment in battery cell production and energy storage systems, attracting leading battery manufacturers to invest in Thailand.
These measures aim to make Thailand a regional electric vehicle hub and help the country achieve its carbon neutrality goals. The incentives include subsidies for the production of electric vehicles and tax deductions for companies purchasing electric buses and trucks.
Additionally, the government has approved measures to attract investment in battery cell production and energy storage systems, with support provided through the Competitiveness Enhancement Fund. The goal is to attract leading battery manufacturers to invest in Thailand. These initiatives are expected to accelerate the transition from fossil fuel vehicles to electric ones, and have already contributed to significant growth in Thailand’s EV market.
The EV Board has approved measures to promote investment in battery cell production and energy storage systems by providing financial support through the country’s Competitiveness Enhancement Fund. The support scheme may also offer additional benefits to eligible companies under Thailand’s Competitiveness Enhancement Act. These measures aim to attract more leading battery manufacturers with advanced technology to invest in Thailand.
Under these measures, investors can apply for benefits and financial support from the BOI’s Competitive Enhancement Fund. The initial criteria for investors to apply are as follows:
1. The investor must be a leading battery manufacturer used by EV manufacturers;
2. The investor must have a plan to produce battery cells for EVs and ESS;
3. The battery cells must have an energy density of at least 150 Wh/kg; and
4. The battery must have a minimum life cycle of 1,000 cycles.
Project investment proposals must be submitted by the end of 2027.
The EV Board’s approval of measures to promote investment in battery cell production and energy storage systems is aimed at attracting leading battery manufacturers to invest in Thailand. This initiative is part of the country’s efforts to position itself as a hub for electric vehicle (EV) production and related technologies.
By encouraging investment in battery cell production and energy storage systems, Thailand aims to strengthen its position in the global EV market and contribute to the development of sustainable transportation solutions. This move also reflects the growing importance of energy storage systems in supporting the widespread adoption of EVs and renewable energy sources. Overall, the approval of these measures signals Thailand’s commitment to fostering a conducive environment for investment in the EV and energy storage sectors.
 

Timor-Leste Launches Information Portal to Boost Trade

DILI, Timor-Leste, April 9, 2024 — To facilitate cross-border trade and provide more transparent and predictable trade information for businesses, the Timor-Leste Ministry of Commerce and Industry today launched the Timor-Leste Trade Information Portal (www.tip.mci.gov.tl), which has been supported by the World Bank.

Through the portal, the government aims to make import and export activity easier and less costly. The portal is also intended to reinforce the country’s efforts to integrate into regional and global markets.

"The Timor-Leste Trade Information Portal aims to improve the country's business environment,” said Timor-Leste Deputy Prime Minister Francisco Kalbuadi Lay. “With access to the right information at the right time, local businesses will be able to confidently venture into regional and international markets —helping to diversify the economy and improve the life of our people through trade."

The web-based system provides a single source for all cross-border trade information. Over 165 laws, regulations, procedures, and other trade-related measures from 22 different government agencies are now accessible online. Businesses can also find licenses, permits, and applicable fees through the portal.

The portal is the latest government initiative to improve cross-border trade and create a conducive business environment and follows Timor-Leste's accession to the World Trade Organization (WTO) in February. The development of the portal complies with the WTO Trade Facilitation Agreement and is aligned with the country’s post-accession strategy. Once launched, the portal will also meet ASEAN National Trade Repository (NTR) requirements for transparency on trade laws and procedures in line with the ASEAN Trade in Goods Agreement (ATIGA) by providing.

"Trade is an important engine of growth for Timor-Leste," said World Bank Country Manager for Timor-Leste Bernard Harborne. " Having fast and easy access to trade information and procedures is crucial for traders and investors. The Timor-Leste Trade Information Portal is an essential piece of a larger, on-going effort by Timor-Leste to grow its private sector and create jobs and opportunities. The World Bank firmly supports these efforts."

It is hoped that a single, easily searchable platform containing all trade regulations and procedures will be especially useful to smaller enterprises interested in or involved in the import, export, and transit businesses. Another anticipated benefit from greater transparency is expected to be feedback from stakeholders about ways government could modernize and simplify regulations and procedures.

“The portal is an active response towards meeting the needs of the private sector,” said Chairman, Timor-Leste Chamber of Commerce – Jorge Serano. “We anticipate that it will greatly contribute to the ease of doing business and our members will be active users of the platform.”

As part of the World Bank’s engagement in Timor-Leste, the creation of the portal was supported by the Trade Facilitation Support Program, which is managed by the World Bank and funded by nine donor partners:

Australia, Canada, the European Commission, the Netherlands, Norway, Sweden, Switzerland, the United States, and the United Kingdom.

 

Visit: https://timor-lestetradeportal.com to find out more

Source: here

Healthy alliance: Thai-US partnership to inject vitality into EEC healthcare

A joint venture is underway between Thailand and the United States, aimed at boosting investments within the healthcare and medical sectors in the Eastern Economic Corridor (EEC). This initiative is designed to support healthcare services for both ageing and young populations while promoting targeted industries.
Forecasts from the Thai Health Promotion Foundation indicate a rapid growth trajectory for the medical equipment market. This is due to Thailand’s shift into an aged society in 2022, where individuals over 60 years old make up over 20% of the country’s 71 million populace.
Chula Sukmanop, the EEC Office’s secretary-general, highlighted the need for increased investment and the incorporation of new technological advancements for medical examinations and treatments to guarantee sustainable medical services. Sukmanop’s statement was made during the two-day US-Thailand Healthcare Workshop, an event co-organised by the American Chamber of Commerce and the US Trade and Development Agency.
The workshop, which concluded on April 4, was designed to foster the development of the healthcare industry in Thailand. Robert Godec, the US ambassador to Thailand, stated that the organising entities aim to assist American healthcare companies in expanding their investments within the region, with a particular focus on Thailand.
The US currently holds the position of the third-largest investor within the EEC in terms of value. The total investment from American entrepreneurs across all industries amounts to 44 billion baht, as stated by Chula.
“We are preparing to offer investment incentive packages to attract new investors, especially in the medical and healthcare industry.”
Several US healthcare and pharmaceutical companies, including Baxter, Johnson & Johnson, and Organon, have already invested in Thailand. Organon (Thailand), which commenced operations in 2021, specialises in the production of medical products for women, including reproductive medicine.
The Thai Health Promotion Foundation reported in 2020 that Thai girls typically begin menstruating at the age of 11, with the youngest recorded age being seven.
This data was derived from a survey conducted by the foundation in collaboration with Thammasat and Chulalongkorn universities, covering 8,161 samples from 95 schools. The results have raised concerns regarding precocious puberty and its association with health issues, particularly those related to reproductive health.
 
Source : Thaiger

Nusantara Smart City as Indonesia's Big Strategy for Digitalization

The Indonesian government is actively working on developing Nusantara, the new capital city, as part of its strategy to achieve the 2045 Golden Indonesia vision. This vision, spanning from 2015 to 2085, prioritizes human resource development and positions Indonesia as a global economic indicator. The 2045 vision focuses on human development, technological mastery, and sustainable economic growth, aligning with global trends like rapid technological advancement and the demand for digital talent.

Indonesia faces a digital talent gap, estimated at nine million by 2035, with only 200 thousand to 400 thousand talents produced annually. This mismatch affects the IT sector's growth and hampers businesses' ability to find skilled local resources. Digital nomads further complicate this challenge, highlighting the need for strategies like smart cities to address evolving industry needs and talent requirements.

Nusantara's smart city concept emphasizes preparing international-quality digital talents through technology-driven industry and workforce development. This initiative aims to bridge the gap between education and industry demands, benefiting not just Nusantara but potentially attracting businesses from other regions and globally. Additionally, the focus on digitizing micro, small, and medium enterprises (MSMEs) aligns with global shifts towards online commerce and digital platforms for business growth.

The multi-utility tunnel (MUT) technology, integrated into Nusantara's smart city infrastructure, exemplifies Indonesia's innovative approach to smart city development. This technology not only accommodates various utility networks but also supports internet connectivity and efficient monitoring systems. Overall, Nusantara's smart city development is part of Indonesia's strategy to excel in the digital sector, aligning with its long-term vision of global economic leadership and human resource excellence.

Source: click here

Indonesia, Vietnam Explore Agriculture, Aquaculture Cooperation

 Indonesia explores agricultural and aquaculture cooperation with Vietnam to solidify their positions in Southeast Asia, according to Minister of Cooperatives and Small and Medium Enterprises (SMEs), Teten Masduki.

During a meeting with the chairperson of the People's Committee of Vietnam's Dak Lak province, Hyim Kdoh, on Friday, Masduki said that the two countries have an important role in the agricultural and aquaculture sectors in the region.

He said that Indonesia and Vietnam will explore the potential for cooperation in agriculture and aquaculture business modernization through digitalization, as well as research and development to improve the quality and competitiveness of agricultural and fishery products in the global market.

The two countries will also collaborate in the development of business models and partnerships in fisheries and agricultural supply chains in the region.

Masduki also said that several commodities are being developed in Indonesia, such as seaweed, shrimp, eel, palm oil, coconut, red ginger, rice, fruits, bamboo, and rattan. Vietnam is focusing on developing barramundi fish, shrimp, and lobster.

Agricultural commodities such as durian, mango, and jackfruit are widely grown in Indonesia; thus, there are promising cooperation opportunities for Indonesia and Vietnam, he said.

Source: click here

Some Infrastructure Projects Ready to be Launched in 2024: Minister

Jakarta (ANTARA) - Transportation Minister Budi Karya Sumadi revealed that several infrastructure projects are ready to be inaugurated this year to support smooth domestic transportation. There are 21 projects that will be inaugurated in 2024 that include the construction of six ports for crossing ship and one for motor ship, another eight ports, five airports, and a double railway track.

Sumadi spoke about the transportation projects during a working meeting with the House of Representatives (DPR) in Jakarta on Tuesday (April 2). He stated that the presence of transportation infrastructure is expected to have a positive impact on the community in increasing mobility and connectivity between regions, so that it can increase overall economic growth.

He said that the ministry is committed to boosting the development of transportation infrastructure through its policy and budget priorities in 2024. This commitment is realized through developing productive connectivity infrastructure, improving safety and security and human resources of the transportation sector, and conducting equitable distribution of national development.

It also focuses on implementing pro-people programs, the sustainable Multi-Year Contract (MYC) program, the national fulfillment, national strategic projects (PSN), planning and development of the Nusantara Capital City, urban mass transportation, as well as encouraging the use of new and renewable energy.

Source: click here

Indonesia's Financial System Stays Strong Amid Global Uncertainties

Amid global uncertainties, the United States' inflation rate declined, albeit still far from the preferred two percent rate, exacerbating doubts and uncertainty over the reduction in the Fed Funds Rate (FFR). The FFR, or the rate at which depository institutions lend money to one another, that is currently high, in the range of 5.25-5.50 percent, is forecast to last at least until the first half of this year. Geopolitical tensions globally remain unresolved, adding another layer of uncertainty to economic forecasts and financial markets.

China's economic growth had yet to reach the expected level on account of a property crisis and weakening consumption power. This trend will also contribute to the slowing down of the global economy and threaten the stability of the global financial system. Notably, China's GDP growth rate in 2023 was below target at 5.6%, reflecting the challenges faced by its economy. This has led to concerns among investors and policymakers about the broader implications for global economic performance.

Amid global uncertainties, Indonesia's financial system remains resilient and stable. This financial resilience is reflected in several aspects, including adequate liquidity, decreasing credit risks, potent capital, and a sound level of corporate resilience. Indonesia's banking sector, for instance, reported a non-performing loan (NPL) ratio of just 2.19 percent as of December 2023, marking a significant decline from the previous year. These indicators point to the effectiveness of Indonesia's financial policies in managing risk and maintaining stability.

In 2023, Indonesia's economy stood strong despite facing threats posed by global economic slowdown and rising global inflationary pressure, as evidenced by the country's success in achieving an economic growth rate of 5.05 percent. This feat was a result of the intensification of government spending at the end of the year as well as the acceleration of the development of several national strategic projects. Additionally, Indonesia's debt-to-GDP ratio remained manageable at 41.8% in 2023, reflecting prudent fiscal management amidst challenging economic conditions.

Source: click here

Government Announces 14 New National Strategic Projects

The Indonesian Government has determined 14 new national strategic projects (PSNs) in a range of sectors in a bid to actualize equitable development in the country.

Spokesperson of the Economic Affairs Coordinating Ministry Haryo Limanseto noted that the 14 projects are of enormous investment value and will bring about far-reaching economic impacts through the sectors of transportation, infrastructure, energy, health, and telecommunication. 

He also stated that the PSNs encompass not only physical infrastructure, as the projects are also meant to ensure an equitable economy, ample food stocks, as well as developments in border regions, technology, tourism, and education. He underlined that the development of the 14 new PSNs is fully funded by capital invested by private actors. The official also noted that the government had initially coordinated with relevant stakeholders and conducted thorough studies before determining the new PSNs.

According to Limanseto, the 14 newly announced projects are scattered in several provinces, namely Riau Islands, Banten, Jakarta, West Java, East Java, East Kalimantan, Central Sulawesi, and Southeast Sulawesi. In detail, the projects involve eight industrial zones; two tourism zones; two toll roads; one educational, research, technology and health zone; and one offshore oil and gas project.

Among the 14 projects is the development of an area of 1,756 hectares of land envisioned as a green tourism destination called Tropical Coastland in Pantai Indah Kapuk 2 area in Banten Province. The tourism project is worth Rp65 trillion (US$4.1 billion) of investment and is projected to absorb almost 20,000 workers.

Another newly announced PSN is the development of a special economic zone (SEZ) on 59.6 hectares of land situated within Bumi Serpong Damai (BSD) satellite city in the same province. The project is expected to draw investment worth Rp18.54 trillion (US$1.1 billion). The planned SEZ, expected to empower 10,000 workers, is designed as a center for education, medical research, digital economy, technological developments, and healthcare.

In terms of healthcare, the zone will drive developments in medical and biomedical services forecast to generate Rp5.6 trillion (US$350 million) of foreign exchange.

Source: click here

Apple, Microsoft Keen to Invest in Indonesia: Deputy Minister

Tech giants Microsoft and Apple have expressed their interest in investing in Indonesia, according to Deputy Minister of Communications and Informatics Nezar Patria. He stated at a public discussion that they have informed him by letter and expressed their intention to invest in Indonesia as well. Satya Nadella of Microsoft and Tim Cook of Apple, CEOs of the two tech giants, seek to meet President Joko Widodo during their visit to Indonesia, he remarked.

The authority seeks to focus the collaboration on the development of human resources and manufacturing sectors, he noted. Investments from the two tech giants in Indonesia will also open up greater opportunities for the country and the people, Patria added. The deputy minister expressed hope that collaboration with the two tech giants would bolster Indonesia's efforts to develop its digital talent capacity and competency.

On Thursday (March 21), Minister of Communication and Informatics Budi Arie Setiadi stated that his side is preparing to meet representatives of tech giants Microsoft and Apple to accelerate Indonesia's digital transformation. Microsoft (representative) will visit in mid-April, while Apple CEO Tim Cook will visit on April 20. He intends to establish the Apple Academy, which we will observe and study during his visit as Setiadi remarked.

The minister said his side plans to discuss the development of digital talents and artificial intelligence (AI) technology in Indonesia with Microsoft. Meanwhile, the ministry seeks to focus the discussion with Apple on professional digital talent development.

Source: click here

ASEAN for Business Mar 2024: A Business-Friendly ASEAN Guide for AI Ethics and Governance

ASEAN recently endorsed a business-friendly ASEAN Guide for Artificial Intelligence (AI) Ethics and Governance that is crucial for the region's technological development and allows companies to confidently invest in AI while ensuring responsible development.

Access the full publication here.

The Guide is nominated for the United Nations (UN) World Summit on the Information Society (WSIS) Prizes 2024. The WSIS Prize is an international award to recognise projects and activities by individuals, governments, private sector, academia, international and regional organisations, and civil society for their success in implementing projects and activities that leverage the power of ICT to advance sustainable development. 

Vote the Guide to win the prize at this link.

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