KBank Subsidiaries and ASEAN Economic Strategy slide image

KBank Subsidiaries and ASEAN Economic Strategy

K KASIKORNTHAI Government Policy: Long-term and Short-term Policies Long-term Policies ■Transport Infrastructure Development Plan: ➤ Project will reduce logistical costs, increase transportation speed of goods and people, as well as connect Thailand to neighbors along the East-West and North-South Economic Corridors ➤ Transport Action Plan Year 2016, worth Bt1.796trn, approved by Cabinet in November 2015; Transport Action Plan Year 2017, worth Bt1.318trn, approved by Cabinet in December 2016 ■Digital Economy: ➤ NBTC plans to award mobile licenses in various spectrums and launch 5G in near future Government plans to adapt National Digital ID to speed up the process towards digital economy ■ BOI Measures for Supporting Private Investment: Cabinet approved tax and non-tax incentive measures to support private investment, such as Special Economic Zones (SEZS) and ten targeted industries as new engines of growth ■ Eastern Economic Corridor (EEC): Area for facilitating and attracting investment in 10 innovative target industries to transform Thailand into Thailand 4.0 ■ Promote Establishment of International Headquarters (IHQ) and an International Trading Center (ITC) in Thailand: Help Thailand become a key trading nation in the region ■ Join the Regional Comprehensive Economic Partnership (RCEP): Deepen economic cooperation among sixteen countries and promote export sector ■ Energy Policy: Reform petroleum concessions and energy price structures, including an LPG subsidy ■Tax Reform: Reform tax collection, generate sufficient revenue for the government, and boost competitiveness for local businesses, especially SMEs Note: NBTC National Broadcasting and Telecommunications Commission; SOE = State Owned Enterprise; GSB = Gvernment Saving Bank SSF Super Saving Fund Sources: Newspaper and KResearch (as of January 2020) ■Government Budget: ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Short-term Policies ➤ Fiscal budget deficit in FY2020: plans for Bt469bn deficit to provide additional supports to Thai economy amid global uncertainties ■ Short-term Stimuli: ➤ Mid-2019 stimulus plan (Bt21.8bn): Give Bt13.2bn directly to people with disabilities, farmers, and other holders of welfare cards to help people with low incomes; tax measures worth Bt8.6bn, supporting property markets, tourism, education, etc ➤ Thailand Plus Package: attract foreign investment, especially to expedite investments from companies seeking to relocate as a result of ongoing trade war ➤ Cash handout for workers not covered by the SSF: 3-month Bt5,000 monthly payments to informal workers affected by COVID-19 ➤ Measures to help farmers: 2019/2020 rice and palm oil price insurance scheme, drought-afflicted relief program, and easing production costs; 3-month Bt5,000 monthly payments to farmers (May-July 2020) ➤ Supporting tourism: Subsidies for domestic tourists (Moral Support & We Travel Together campaigns) ➤ Property stimulus package: Offer Bt50,000 cash-back per buyer on down payment; reduce property transfer and mortgage fees ➤ 2020 SMEs aid program: Offer credit guarantee facility, liquidity aids, soft loans, and assistance in debt restructuring processes for SMES บริการทุกระดับประทับใจ 145 K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Transport Infrastructure Development Plan ■The Transport Infrastructure Development Plan is aimed at facilitating social stability and economic growth Transport Action Plan Year 2016, worth Bt1.796trn*, approved by the Cabinet in 2015 ➤ Transport Action Plan Year 2017, worth Bt1.318trn, approved by the Cabinet in 2016 Transport Action Plan Year 2016 (Bt1.796trn) Transport Action Plan Year 2017 (Bt1.318trn) Source of Fund Type of Projects Project Details Motorway Fund, Regular Investment 0.8% Budget, 4.7% SOE, 3.1% PPP, 21.0% Dual-Track Trains, 6.6% Marine Transport, 0.3% Air Transport, 2.7% Motorway, 8.9% 1. Bangkok and Vicinity Mass-Transit System (Bt368bn) 4. Rail Transportation Cooperation (Bt1,096bn) Transportation Cooperation Plan 61% Government Borrowing, 70.5% Bangkok and Vicinity Mass-Transit System 20.5% 2 Motorway (Bt160bn) 5. Air Transport (Bt49bn) Source of Fund Type of Projects Others 1.9% Bangkok and Vicinity mass 3. Dual-Track Trains (Bt118bn) 6. Marine Transport (Bt5bn) Project Details Government Marine Transport Transit system 1. Bangkok and Vicinity Mass-Transit System (Bt248bn) 12.8% PPP 54.1% Borrowing 33.9% Air Transport 22.8% Regular Investment Budget 5.6% SOE's Revenue 3.0% TFFIF,3.4% Dual-Track Trains 31% 18.8% Motorway & Expressway 12.7% 2 Motorway & Expressway (Bt167bn) 3. Dual-Track Trains (Bt409bn) 4. Air Transport (Bt301bn) 5. Marine Transport (Bt168bn) 7. Others (Bt25bn) * Total investment may be reduced due to cutting the scope of work, especially the Rail Transportation Cooperation projects Notes: PPP = Public-Private Partnership; SOE = State of Enterprise; MRTA = Mass Rapid Transit Authority of Thailand; SRT State Railway of Thailand; TFFIF = Thailand Future Fund First round of Thailand Future Fund IPO (amount Bt45bn) to invest in the right to 45% of toll revenue of the Expressway Authority of Thailand on the Chalong Rat (Ram Intra - At Narong) Expressway and the Burapha Withi (Bang Na) Expressway Source: Office of Transport and Traffic Policy and Planning, Newspaper, KResearch (as of October, 2019) บริการทุกระดับประทับใจ 146
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