Economics
Jobless Thais queue for food as pandemic hits economy
Thais are becoming increasingly desperate as the pandemic destroys the economy and the government struggles to respond.
Long lines of unemployed relying on free food across Bangkok, scrambles for cash handouts and fishing in fetid canals — Thais are getting increasingly desperate as the pandemic destroys the economy and the government struggles to respond.
Some 27 million informal workers — who lost their jobs in the tourism, entertainment, food and service sectors — have applied for a monthly cash handout from the government, though only half have received approval.
Premier Prayut Chan-O-Cha has also issued conflicting information on how long the state can afford to give people 5,000 baht ($150) a month.
A spirit of volunteerism has filled the gaps left by the state.
“The government hasn’t helped me with anything,” said Chare Kunwong, a 46-year-old masseur who caters to tourists — a revenue stream that dried up with COVID-19’s stranglehold on global travel.
He stood in line alongside hundreds on Wednesday in Bangkok’s historic quarter, waiting to receive food donations of rice, noodles, milk and curry packets.
“If I wait for the government’s aid then I’ll be dead first,” he told AFP.
An hour north of Bangkok in Pathum Thani province, a growing number of locals are fishing in a murky canal in the hopes of easing food shortages, Thai media reported.
The tanking economy has also led to Thais flocking to sell their gold jewellery, as the price for the precious metal spikes across the world.
Angry scenes have erupted at the finance ministry in recent days, as protesters demanded answers on being shut out of the government’s cash handout scheme.
Thailand’s export- and tourism-reliant economy is forecast to see a contraction of 6.7 percent this year, its lowest GDP figure since 1998.
Photo : Lillian SUWANRUMPHA © Agence France-Presse
What measures has SET taken to support listed companies’ compliance with ESG standards?
PAKORN PEETATHAWATCHAI:
PAKORN: When we first began promoting ESG-compliant investments, we were met with little interest. We attributed this to a lack of clear data to showcase the economic benefits of ESG investment, and perhaps limited clarity as to what constitutes a sustainable or ESG-compliant investment. The launch of the THSI list and, subsequently, the SETTHSI Index, was designed to address this. Our most recent data, comparing returns for the SETTHSI Index with the broader SET and SET100 indices from April 2020 to April 2021, underscores the economic benefits of these investments: the group compliant with ESG standards outperformed the other two indices on every data point.
As of May 2021 Thailand was home to CG and ESG assets under management totalling BT54.8bn ($1.7bn) across 50 funds – up from 23 funds in 2019. Meanwhile, of the BT187.1bn ($5.9bn) raised in green, social and sustainability bonds since 2018, BT136.4bn ($4.3bn) was raised in 2020 – 83% from the government and the remainder from development banks and private players. This rising demand, in a move to manage risk and generate returns, has been complemented by growing supply and promotion: supply from ESG-compliant businesses aiming for resiliency and sustainable growth, as well as promotion from regulators highlighting investment opportunities with good CG and SD practices. Indeed, the pandemic has been a catalyst in shifting the view of ESG compliance from a luxury to a requirement in the new normal.
In what ways can enhanced standard-setting and regulatory mechanisms overcome the remaining barriers to improved ESG performance?
PAKORN: A multi-stakeholder approach is crucial for enhanced ESG performance – not only in Thailand, but around much of the globe. This can also help to address the standout incumbent challenge: access to reliable, wide-ranging ESG data. For example, the 2020 update to the 56-1 One Report established clear ESG standards and triggered online and offline capacity-building programmes to support listed firms’ compliance. SET is developing an ESG data platform with a structured template to promote the availability of comparable data, maximise value added from corporate sustainability disclosures, and foster collaboration between the business value chain and stakeholders. This is expected to support Thai companies along their ESG journey in an economically sustainable way, result in a greater number of sustainability-focused products and services, drive sustainable investing in the Thai investment community and ultimately “make the capital market work for everyone”, as outlined in the SET’s vision.
Economics
Youth unemployment hits new highs in Thailand due to COVID-19 restrictions
BANGKOK, Thailand (ILO news) – Joblessness among young men and women in Thailand has reached a level unseen in recent years due to the impact of the COVID-19 pandemic, according to a new brief from the International Labour Organization (ILO).
The Thailand labour market update found that youth employment fell by 7 per cent in the first quarter of 2021 (from the fourth quarter 2019). The youth unemployment rate increased by 3 percentage points for both men and women, reaching a high of 6 per cent and 8 per cent, respectively.
(more…)
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