Currency and Interest Rate Outlook

K KASIKORNTHAI Government Policy: Long-term Policies ■20-Year National Strategy: To achieve the vision "Security, Prosperity, Sustainability," to become a high-income country, to improve quality of life, to generate high income, to escape the middle-income trap, and to ensure well-being for all Thais (Page 128) ■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 Public Transport Infrastructure Investment 2015 to 2022: worth Bt2.59trn (Page 132) ■ Eastern Economic Corridor (EEC): Area for facilitating and attracting investment in 10 innovative target industries to transform Thailand into Thailand 4.0 (Page 136) ■Digital Economy: ➤ NBTC awarded mobile licenses in various spectrums and launched 5G Government plans to adapt National Digital ID to speed up the process towards digital economy ■ BOI Measures for Supporting Private Investment: Tax and non-tax incentive measures to support private investment, such as Special Economic Zones (SEZs) (10 provinces, including Tak, Mukdahan, Sa Kaeo, Songkhla, Trat, Chiang Rai, Kanchanaburi, Nong Khai, Nakhon Phanom, and Narathiwat) ■Ten targeted industries as new engines of growth: Next Generation Automotive, Smart Electronics, Affluent Medical and Wellness Tourism, Agriculture and Biotechnology, and Food for the Future; New S-Curve (for new growth) consists of Robotics, Aviation and Logistics, Biofuels and Biochemicals, Digital, and Medical Hub ■Additional Incentives: Biotechnology, Nanotechnology, Advanced Materials Technology, and Digital Technology ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■ Promote Establishment of International Headquarters (IHQ) and an International Trading Center (ITC) in Thailand: Help Thailand become a key trading nation in the region ■ ASEAN Economic Community (AEC): Since December 2015, ASEAN has transformed into the "ASEAN Economic Community," with free movement of goods, services, investment, and skilled labour, and a freer flow of capital; Strategic measures under the five characteristics in the AEC Blueprint 2025 will be operationalised through sectoral work plans and their implementation and monitored through the AEC 2025 Monitoring and Evaluation Framework ■ Free Trade Area: Already signed FTA with ASEAN+3 (China, Japan, and Korea), India, Australia, New Zealand, Peru, Chile; In progress with Canada, European Union (EU), the Regional Comprehensive Economic Partnership (RCEP), and Comprehensive and Progressive Agreement of Trans-Pacific Partnership (CPATP) ■ Age Society: Mandatory retirement age for government and state enterprise officials will be extended from 60 to 63, effective in 2024 ■ 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 ■Constitution: National assembly seeks to amend the constitution section-by- section Sources: Newspaper and KResearch (as of April 2021) บริการทุกระดับประทับใจ k KASIKORNTHAI Government Policy: Short-term Policies ■Government Budget: ➤ Fiscal budget deficit in FY2021: plans for Bt609bn deficit to provide additional supports to Thai economy amid COVID-19 outbreak (Page 122) ■Relief Measures for COVID-19 Impacts: Helping financial market stability and liquidity, and business, work force, and individuals through soft loan programs and relief measures (Page 124-127) ■Short-term Stimuli: ➤ Welfare Card: Give Bt200-300 a month to each welfare smart card (14.5 million people) for purchase of necessary goods for those earning less than Bt100,000 annually; Give Bt500 wallets to help with transportation costs 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 SSF: Bt5,000 monthly payments for 3 months to informal workers affected by COVID-19 (April - June 2020) ➤ Supporting tourism: Subsidies for domestic tourists (Moral Support & We Travel Together campaigns) (July 2020 to April 2021); "Special Tourist Visa" for long- staying visitors (90 day stay in country, which can be extended twice, each for an additional 90 days. The visa costs Bt2,000 per 90-day extension) Property stimulus package: Property transfer fees reduced from 2 percent to 0.01 percent and mortgage fees reduced from 1.0 percent to 0.01 percent for buying condominium units priced at not over Bt3mn (Jan - Dec 2021) ➤ Measures to help farmers: Many price insurances for agricultural plants such as rice, rubber, oil palm, cassava, and corn (Bt75bn for 2021 government budget) ■ Short-term Stimuli (continue): ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK ➤ Projects to boost domestic consumption: 1) "Half-Half" scheme: a co-payment for food and general products subsidizing half of the purchase price - Phase 1&2: Bt3,500 to 15 million people (October 2020 - March 2021) - Phase 3: Bt3,000 to 31 million people (July - December 2021) 2) Additional Bt500 given each month to 14 million people holding welfare cards (October 2020 - March 2021) 3) Section 33 - We Love Each Other program: Bt6,000 (Bt4,000 and B2,000) given to people who meet the deposit conditions of less than Bt500,000 during March June 2021 4) We Win program: Bt9,000 (Bt7,000 and Bt2,000) per person during February - June 2021 5) "Ying Chai Ying Dai" program: Give e-vouchers (up to Bt7,000) to people who spend money from July - September 2021 to encourage purchase of food, products, and services through the government's e-wallet (can be used from August to December 2021) Measures to help employers and employees Reduce the monthly contribution rates to the SSF to 2.5%, from 5% of wages; applicable for 3 months ( June - August 2021) For employees and employers in six provinces Under Section 33: Employee receive Bt2,000 each in compensation and half of their daily wages, not to exceed Bt7,500 Employer: receive Bt3,000 for each worker (not more than 200 persons) Not covered by Section 33: Employee: receive Bt2,000 baht in compensation (Thai nationality) Employer: receive Bt3,000 baht for each employee (not more than 200 persons) Sources: Newspaper and KResearch (as of July 2021) บริการทุกระดับประทับใจ 133 134

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