Economics
Restoring Confidence in Thailand after the Flood Crisis
Following the flood crisis in Thailand, the Government is starting to restore confidence among foreign investors and tourists, with emphasis on the country’s flood prevention and control
Following the flood crisis in Thailand, the Government is starting to restore confidence among foreign investors and tourists, with emphasis on the country’s flood prevention and control, as well as comprehensive water resource management.Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong will visit Japan on November 28 to explain the Thai government’s post-flood recovery plan to Japanese investors and business people.
He will be accompanied by the Chairman of the Strategic Committee for Reconstruction and Future Development, Dr. Virabongsa Ramangkula.They are also scheduled to meet Japanese Prime Minister Yoshihiko Noda to discuss plans to assist flooded factories and protect them from inundation. Japan has contributed significantly to flood recovery in Thailand.
Mr. Kittiratt earlier stated that he would invite the Japan International Cooperation Agency JICA to serve as the advisor of Thailand for water management planning on a long-term basis. Dr. Virabongsa said that JICA stood ready to cooperate with Thailand in providing technical assistance, as it had experience in dealing with both flooding and tsunami.
Following the flood crisis in Thailand, the Government is starting to restore confidence among foreign investors and tourists, with emphasis on the country’s flood prevention and control
The flood crisis in Thailand and the recent tsunami in Japan made both countries realize the urgency for disaster management
In his discussion with the Japan External Trade Organization, Dr. Virabongsa was told that despite this severe flood, Japan would not relocate its production base from Thailand, as Thailand has infrastructure and labor force of good quality. This shows that foreign investors remain confident in the country’s investment situation.
Dr. Virabongsa said that he would meet executives of the European Chamber of Commerce on December 7 to explain the Government’s guidelines for tackling the flood problem and various phases of rehabilitation, both short-tem and long-term.
Meanwhile, Governor of the Tourism Authority of Thailand TAT, Suraphon Svetasreni, said that TAT is launching a new campaign, as part of its plan to restore tourist confidence after the flood crisis. He said that the campaign, “Beautiful Thailand,” would provide a good opportunity for the country to revive its tourism during the upcoming Christmas in December and the universal New Year and the Chinese New Year celebrations in January.In the overall picture, the flooding situation is now improving, and life in many flooded areas is returning to normal.
via Inside Thailand — Restoring Confidence in Thailand’s Investment and Tourism after the Flood Crisis.
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.
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