Latest news with #PichaiChunhavajira
The Star
10 hours ago
- Business
- The Star
Thai-Cambodia border clash threatens 181 billion baht economic loss as ceasefire holds
BANGKOK: A fragile ceasefire between Thai and Cambodian forces has brought temporary relief to border tensions, but economists warn that prolonged conflict could cost both nations up to 181.7 billion baht over three months whilst displacing hundreds of thousands of workers. The five-day border skirmish from 24-28 July ended with a ceasefire agreement taking effect at midnight on 28 July, yet sporadic violations continue to undermine the truce. Cambodian forces have reportedly continued firing into Thai territory at multiple points, prompting Bangkok to lodge formal protests with Asean, the United States, and China as ceasefire witnesses. Deputy Prime Minister and Finance Minister Pichai Chunhavajira revealed that the government is still assessing the economic fallout, with initial estimates suggesting the conflict has already cost Thailand approximately 10 billion baht during the brief escalation period. Economic vulnerability exposed The financial implications extend far beyond immediate military costs. Associate Professor Dr Aat Pisanwanich, an international economics expert, has modelled three potential scenarios following the ceasefire, warning of an 80% probability that fighting could resume. "The ceasefire agreement represents a Thai victory in initiating bilateral negotiations rather than relying solely on international court intervention," Dr Aat stated, though he cautioned that underlying territorial disputes remain unresolved. Should tensions persist for one month, both economies would suffer combined losses of 60.6 billion baht. A two-month conflict would double this figure to 121.1 billion baht, whilst a three-month standoff could reach 181.7 billion baht in total economic damage. Cross-border trade under threat The conflict's epicentre along key border crossings in Sa Kaeo and Trat provinces has paralysed vital trade arteries. Sorathep Rojpotjanaruch, chairman of the Restaurant Business Association, warned that a three-month disruption could eliminate 40-50 billion baht in border exports immediately. "If the crisis extends beyond six to ten months, export losses could reach hundreds of billions of baht," he cautioned. "Beyond one year, we risk permanently losing our export infrastructure as Cambodia seeks alternative suppliers from Laos, Vietnam, or China." The uncertainty has already triggered concerns about supply chain diversification, with Cambodian buyers potentially sourcing goods from competitors who can deliver via maritime routes. Tourism sector braces for impact Thailand's crucial tourism industry faces substantial headwinds, with the Thai Travel Agents Association (ATTA) projecting significant visitor shortfalls depending on conflict duration. Adith Chairattananon, ATTA's secretary-general, outlined three scenarios: if normalcy returns within one month, Thailand could still achieve its target of 34.5-35 million foreign visitors this year. However, a three-month disruption would reduce arrivals to 33-34 million, whilst a six-month crisis could severely impact next year's peak season, affecting European and American markets during the crucial winter period. Labour market disruptions The conflict threatens to displace over 250,000 Cambodian workers currently employed in Thailand's manufacturing sector, particularly in frozen food processing, poultry, and seafood industries. Whilst most workers have remained at their posts, prolonged tensions could trigger mass departures, exacerbating Thailand's existing labour shortages. Nationalist sentiment clouds trade relations Rungphech Chitanuvat from Informa Markets expressed concern that rising Cambodian nationalism could influence consumer purchasing decisions, potentially reducing demand for Thai consumer goods in Cambodia's retail market. "Thailand exports significant consumer products to Cambodia," Rungphech noted. "While long-term investment impacts may be limited due to the border location of conflicts, we're monitoring how nationalist sentiment might affect trade relationships." Path forward remains uncertain Thai-Cambodia Business Council chairman Voratat Tantimongkolsuk emphasised the urgent need for transparent border demarcation negotiations. The territorial dispute centres on conflicting map scales - Thailand uses 1:50,000 whilst Cambodia employs 1:200,000 - creating ambiguity over precise boundaries. While Cambodia pushes for International Court of Justice arbitration, Thailand favours bilateral negotiations. The private sector continues monitoring developments closely, hoping for swift normalisation and renewed dialogue addressing underlying territorial issues. The conflict underscores the economic interdependence between the neighbouring nations, with business leaders calling for comprehensive resolution mechanisms to prevent future disruptions to the substantial annual bilateral trade relationship. - The Nation/ANN
Korea Herald
13 hours ago
- Automotive
- Korea Herald
Thailand EV Board Adjusts EV3, EV3.5 Terms to Promote Exports as Investment in EV Supply Chain Tops 137 Billion Baht
BANGKOK, July 30, 2025 /PRNewswire/ -- Thailand's National Electric Vehicle Policy Committee (EV Board), today approved adjustments to the so-called EV3 and EV3.5 incentive packages to encourage the manufacturers of battery electric vehicles (BEV) to use the country as an export base. The two incentive schemes require manufacturers to produce locally to compensate for the vehicles they imported since the start of the EV subsidies program in 2022 before they started local production. Under the new adjustments, 1 vehicle produced for export will be accounted as 1.5 vehicle, making it easier for carmakers to meet their production commitments. This approach, proposed by the Federation of Thai Industries (FTI), is expected to increase the number of electric vehicle exports to approximately 12,500 units in 2025 and approximately 52,000 units in 2026. The board also approved a proposal to extend by one month the registration period for vehicles produced for the domestic market and strengthen subsidy payments to enhance the effectiveness of the measures. The board, chaired by Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, also acknowledged a report showing the progress seen in the sector and demonstrating the policy's success, including the total amount of investment in the local EV supply chain which has reached 137.7 billion baht (ca. USD 4.2 billion) as of end-June 2025. On the consumer side, a total of 175,064 BEV cars and 34,559 electric motorcycles have so far been granted subsidies totaling over 12 billion baht under the EV 3.0 and EV 3.5 schemes. "The EV Board acknowledged the continued expansion of the EV sector in Thailand and took steps to allow further growth and encourage manufacturers to export more," Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI), who is also the secretary of the EV Board, told reporters at a press conference held after the EV Board meeting at the Ministry of Finance in Bangkok. "The revisions approved today will allow greater flexibility and help Thailand, which is already the leader in the region's automotive manufacturing industry, to become a key EV production base." In the first half of 2025, a total of 57,289 new BEV passenger cars were registered in Thailand, a 52.4% increase compared to the same period of last year, accounting for 15% of all new passenger car registrations. For the whole of 2024, a total of 70,582 BEV passenger cars were registered. A total of 203,000 BEV passenger cars is on the road in the country, along with 71,900 electric motorcycles, 3,800 electric buses and trucks, and 1,000 three-wheeled electric tuk tuks. Regarding the charging network, a key infrastructure for the EV sector, a total of 3,720 charging stations were in operation around the country as of March 2025. Out of the 11,622 installed chargers, 6,524 were DC fast chargers, some 48% more than the 4,400 that had been expected for this year in the initial EV sector development plan. The plan expects the number of DC fast chargers to total 12,000 by 2030. Under the "30@30" policy, Thailand aims for at least 30% of vehicles produced in Thailand to be electric vehicles by 2030. Currently, 27 companies are participating in the EV3 scheme, including 16 electric passenger car and pickup truck manufacturers, and 11 electric motorcycle manufacturers. Ten companies are participating in the EV3.5 measure, all of which are passenger car manufacturers already participating in EV3. Rising Investments in the EV Supply Chain Cumulative approved investments in the manufacturing of electric vehicles, key components, charging systems, and battery swapping services total 137.7 billion baht, comprising: Details of the Adjustments and Extension Measures As proposed by the Excise Department to facilitate the registration of the high number of BEV cars usually sold around year-end in the domestic market, the registration period for cars under the EV3 and EV3.5 measures has been extended by one month. The EV3 measure requirement that specified the cars had to be "registered by December 31, 2025" has been changed to "sold by December 31, 2025, and registered by January 31, 2026." For the EV3.5 measure, the timeframe has been extended from "registered by December 31, 2027," to "sold by December 31, 2027, and registered by January 31, 2028." The EV Board also approved revised criteria to be used in overseeing the Excise Department's subsidy disbursement under the EV3 and EV3.5 measures to ensure prudent, efficient, and flexible implementation as follows: 1) EV3 participating companies that do not extend the compensatory production period must prepare a compensatory production forecast and report the results monthly. The Excise Department will withhold subsidy payments until they have accumulated at least 50% of the total compensatory production and meet the projected production plan. As for EV3 participants who wish to extend the compensatory production period, or EV3.5 participants, they must prepare a compensatory production forecast. For EV3 participants who wish to extend the compensatory production period, they must provide a bank guarantee of 20 million baht for companies with registered capital of 5 billion baht or more and 40 million baht for companies with registered capital below 5 billion baht. The Excise Department will withhold subsidy disbursement if the eligible recipient's accumulated compensatory production falls below the specified proportion. 2) EV3 participants wishing to extend the compensatory production period are allowed to procure additional production plants to enable the compensatory production to be completed within the specified timeframe. 3) Participants in the EV3 and EV3.5 measures can revise their application for incentives and the number of cars imported for compensatory production. For vehicles that have been imported and registered but have not yet received subsidies, companies can choose to repay the excise tax difference, along with penalties and surcharges, so that these vehicles will not require compensatory production.
Korea Herald
13 hours ago
- Automotive
- Korea Herald
Thailand EV Board Adjusts EV3, EV3.5 Terms to Promote Exports as Investment in EV Supply Chain Tops 137 Billion Baht
BANGKOK, July 30, 2025 /PRNewswire/ -- Thailand's National Electric Vehicle Policy Committee (EV Board), today approved adjustments to the so-called EV3 and EV3.5 incentive packages to encourage the manufacturers of battery electric vehicles (BEV) to use the country as an export base. The two incentive schemes require manufacturers to produce locally to compensate for the vehicles they imported since the start of the EV subsidies program in 2022 before they started local production. Under the new adjustments, 1 vehicle produced for export will be accounted as 1.5 vehicle, making it easier for carmakers to meet their production commitments. This approach, proposed by the Federation of Thai Industries (FTI), is expected to increase the number of electric vehicle exports to approximately 12,500 units in 2025 and approximately 52,000 units in 2026. The board also approved a proposal to extend by one month the registration period for vehicles produced for the domestic market and strengthen subsidy payments to enhance the effectiveness of the measures. The board, chaired by Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, also acknowledged a report showing the progress seen in the sector and demonstrating the policy's success, including the total amount of investment in the local EV supply chain which has reached 137.7 billion baht (ca. USD 4.2 billion) as of end-June 2025. On the consumer side, a total of 175,064 BEV cars and 34,559 electric motorcycles have so far been granted subsidies totaling over 12 billion baht under the EV 3.0 and EV 3.5 schemes. "The EV Board acknowledged the continued expansion of the EV sector in Thailand and took steps to allow further growth and encourage manufacturers to export more," Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI), who is also the secretary of the EV Board, told reporters at a press conference held after the EV Board meeting at the Ministry of Finance in Bangkok. "The revisions approved today will allow greater flexibility and help Thailand, which is already the leader in the region's automotive manufacturing industry, to become a key EV production base." In the first half of 2025, a total of 57,289 new BEV passenger cars were registered in Thailand, a 52.4% increase compared to the same period of last year, accounting for 15% of all new passenger car registrations. For the whole of 2024, a total of 70,582 BEV passenger cars were registered. A total of 203,000 BEV passenger cars is on the road in the country, along with 71,900 electric motorcycles, 3,800 electric buses and trucks, and 1,000 three-wheeled electric tuk tuks. Regarding the charging network, a key infrastructure for the EV sector, a total of 3,720 charging stations were in operation around the country as of March 2025. Out of the 11,622 installed chargers, 6,524 were DC fast chargers, some 48% more than the 4,400 that had been expected for this year in the initial EV sector development plan. The plan expects the number of DC fast chargers to total 12,000 by 2030. Under the "30@30" policy, Thailand aims for at least 30% of vehicles produced in Thailand to be electric vehicles by 2030. Currently, 27 companies are participating in the EV3 scheme, including 16 electric passenger car and pickup truck manufacturers, and 11 electric motorcycle manufacturers. Ten companies are participating in the EV3.5 measure, all of which are passenger car manufacturers already participating in EV3. Rising Investments in the EV Supply Chain Cumulative approved investments in the manufacturing of electric vehicles, key components, charging systems, and battery swapping services total 137.7 billion baht, comprising: Details of the Adjustments and Extension Measures As proposed by the Excise Department to facilitate the registration of the high number of BEV cars usually sold around year-end in the domestic market, the registration period for cars under the EV3 and EV3.5 measures has been extended by one month. The EV3 measure requirement that specified the cars had to be "registered by December 31, 2025" has been changed to "sold by December 31, 2025, and registered by January 31, 2026." For the EV3.5 measure, the timeframe has been extended from "registered by December 31, 2027," to "sold by December 31, 2027, and registered by January 31, 2028." The EV Board also approved revised criteria to be used in overseeing the Excise Department's subsidy disbursement under the EV3 and EV3.5 measures to ensure prudent, efficient, and flexible implementation as follows: 1) EV3 participating companies that do not extend the compensatory production period must prepare a compensatory production forecast and report the results monthly. The Excise Department will withhold subsidy payments until they have accumulated at least 50% of the total compensatory production and meet the projected production plan. As for EV3 participants who wish to extend the compensatory production period, or EV3.5 participants, they must prepare a compensatory production forecast. For EV3 participants who wish to extend the compensatory production period, they must provide a bank guarantee of 20 million baht for companies with registered capital of 5 billion baht or more and 40 million baht for companies with registered capital below 5 billion baht. The Excise Department will withhold subsidy disbursement if the eligible recipient's accumulated compensatory production falls below the specified proportion. 2) EV3 participants wishing to extend the compensatory production period are allowed to procure additional production plants to enable the compensatory production to be completed within the specified timeframe. 3) Participants in the EV3 and EV3.5 measures can revise their application for incentives and the number of cars imported for compensatory production. For vehicles that have been imported and registered but have not yet received subsidies, companies can choose to repay the excise tax difference, along with penalties and surcharges, so that these vehicles will not require compensatory production.
Bangkok Post
a day ago
- Business
- Bangkok Post
Pichai: US rate likely to be revealed by Saturday
US tariffs on Thailand are expected to be announced on Aug 1 or 2, with the rate unlikely to remain at 36%, says Finance Minister Pichai Chunhavajira. Following an agreement for an unconditional ceasefire along the Thai-Cambodian border, Mr Pichai said negotiations with the US are ongoing. He said many issues have been concluded, with only a few remaining. "The tariff rate should not be 36%. When the US announces its decision depends on its time frame. It could be Aug 1 or 2," said Mr Pichai. "I believe the announcement will happen soon." US President Donald Trump previously announced on X if Thailand and Cambodia failed to agree to a ceasefire, the US would not proceed with tariff negotiations with either country. Following the ceasefire agreement, Trump announced he asked US officials to resume trade negotiations with the duo. "We must consider both national security and economic matters," said Mr Pichai. "The proposals submitted to the US offer benefits to both sides and provide Thailand with an opportunity to implement measures to enhance the competitiveness of the Thai private sector." He also addressed assistance measures for people in the seven provinces along the Thai-Cambodian border who have been affected by the conflict. The government plans to allocate up to 10 billion baht to provide relief for people affected by the conflict, said Mr Pichai. The Finance Ministry is considering relief measures for the 160,000 people who evacuated during the skirmish, which lasted about one week. The estimated 10 billion baht in funding may partly come from the remaining 25 billion baht in the economic stimulus budget. This would be used to compensate for housing repairs and reconstruction for affected residents, according to the ministry. In addition, he said the ministry is evaluating income support measures for the 160,000 evacuees who lost income during the period, as well as compensation for property damage. For residents of the seven border provinces, the Comptroller-General's Department increased the emergency advance budget allocation for provincial governors from 20 million baht to 100 million. In terms of taxes, the government extended the deadline for tax filing to Sept 30, 2025, and introduced tax relief measures, allowing deductions of up to 100,000 baht for home repairs and up to 30,000 baht for vehicle repairs due to damage from the conflict. In a related development, Payong Srivanich, chairman of the Thai Bankers' Association, said the association introduced relief measures for customers affected by the border unrest. He said member banks will consider providing assistance covering credit cards, personal loans and other loan products. For credit cards, member banks are reducing the minimum repayment rate for affected cardholders. For personal loans, banks plan to support affected clients by offering temporary suspensions of principal and/or interest payments, as well as debt restructuring tailored to each customer's repayment capacity. Moreover, banks plan to provide additional support based on each debtor's liquidity situation to ease their financial burden during the crisis.
Express Tribune
2 days ago
- Business
- Express Tribune
Thailand estimates $300M loss from Cambodia border clash
A view shows digital screens showing Thai national flags in support of the country inside a shopping mall, on the day the leaders of Cambodia and Thailand agreed to a ceasefire effective midnight, in a bid to bring an end to their deadliest conflict in more than a decade after five days of fighting, in Bangkok, Thailand, July 28, 2025. Source: Reuters Listen to article Thailand has estimated the initial costs of evacuation and damaged property at more than 10 billion baht ($307.88 million) after a five-day border conflict with Cambodia, and is expecting the eventual economic impact to be even bigger, the finance minister said on Tuesday. The government is preparing an initial budget of 25 billion baht ($771 million) to mitigate the effects, Pichai Chunhavajira told reporters. "I have to gather the budget for this as it will also stimulate the economy because there will be construction, house repairs and many more," he said. "It might not be enough and we may need to seek more," he said, adding the initial estimated damage had yet to include the disruptions in trade. In a separate statement, Pichai said the finance ministry had announced various relief measures to assist people and businesses affected by the border conflict. State-owned banks are offering measures including loan repayment deferrals, low-interest loans, refinancing options, and fee exemptions to support recovery efforts, he said. Tax measures include extending tax filing and payment deadlines to September, and tax deductions for repair costs — up to 100,000 baht for homes and 30,000 baht for vehicles, Pichai said. The government has also allocated 100 million baht to each affected province to meet local needs, which can be increased if necessary, he said. ($1 = 32.48 baht) Decades of dispute The Southeast Asian neighbours have wrangled for decades over border territory and have been on a conflict footing since the killing of a Cambodian soldier in a skirmish late in May, which led to a troop buildup on both sides. They accused each other of starting the fighting last week that escalated quickly from small arms fire to the use of heavy artillery and rockets at multiple points along their 800-km land border causing at least 33 fatalities and displacing over 150,000 civilians. Cambodia's defence ministry said 13 people have been confirmed killed in the fighting since Thursday, including eight civilians and five soldiers, with 71 people wounded. Thai authorities reported 13 civilians and seven soldiers have died on their side, taking the toll across both nations higher than it was in the last major round of fighting between 2008 and 2011. Following five days of heavy cross border fighting, Thailand and Cambodia agreed to an immediate ceasefire, effective from July 28. The agreement was reached through mediation led by Malaysian Prime Minister Anwar Ibrahim, with support from the United States and China.
