UOB Thailand Drives Efforts to Tackle Scope 3 Emissions and Foster Low Carbon Economy
UOB Thailand has recently spearheaded a crucial roundtable discussion with chief sustainability officers from prominent Thai companies to address the pressing issue of scope 3 emissions. The roundtable highlighted the fragmented nature of supply chains and the challenge of aligning smaller suppliers with decarbonisation goals. Proposed solutions include offering financial incentives for suppliers to adopt greener practices and forming industry alliances to standardize sustainability metrics. UOB Thailand is also committed to supporting SMEs in their sustainability journey through initiatives like the UOB FinLab’s Sustainability Innovation Programme.
The discussion underscored the need for collective action in overcoming obstacles such as outdated infrastructure and the lack of industry-wide standards. Emphasizing collaborative efforts, industry alliances, and financial backing, UOB Thailand aims to accelerate Thailand’s transition to a low carbon economy. By fostering partnerships and driving sector-specific solutions, the bank is poised to play a pivotal role in advancing national and global decarbonisation goals.
https://www.bangkokpost.com/business/general/2842297/uob-helps-push-towards-low-carbon-economy
Editor’s Note: UOB Thailand has led a roundtable with chief sustainability officers from major Thai companies to address scope 3 emissions and promote a low carbon economy. The discussion focused on aligning fragmented supply chains with decarbonization goals through financial incentives and industry alliances, with UOB Thailand also supporting SMEs via its Sustainability Innovation Programme.
Thailand’s Pinktech Potential: Investors Remain Cautious Despite Promising Market
Thailand is emerging as a significant player in the “pinktech” sector, a burgeoning field focused on technology and products tailored for the LGBTQIA2S+ community. With one of Southeast Asia’s largest LGBTQIA2S+ populations, the market is estimated to be worth billions of baht. Despite this potential, a recent survey reveals that 88.9% of investors have yet to venture into pinktech. While interest is high, the sector faces challenges including a lack of specific government policies, such as tax incentives and funding for research, and a need for deeper corporate engagement beyond symbolic gestures.
The survey conducted by Thammasat AI Centre and Canvas Ventures highlights that 80% of local pinktech startups are still in early stages, seeking mentorship and funding to progress. Tanachai Kulsomboonsin, co-founder of Canvas Ventures, emphasizes the need for investors to shift from ideation to sustainable business models, suggesting that understanding and addressing the community’s unique needs could lead to innovative products and services that benefit both businesses and the LGBTQIA2S+ community.
https://www.bangkokpost.com/business/general/2841632/startup-surge
Editor’s Note: Thailand is gaining traction in the “pinktech” sector, which targets technology and products for the LGBTQIA2S+ community, with the market estimated to be worth billions of baht. Despite significant potential, a recent survey shows that 88.9% of investors remain cautious, citing challenges such as a lack of supportive government policies and the need for more substantial corporate engagement. With 80% of local pinktech startups still in early stages, there is a call for investors to move beyond ideation and focus on sustainable business models that address the community’s specific needs.
Government Set to Approve New Energy Saving Scheme for State Agencies
The Thai government is poised to approve a new energy conservation scheme that will involve the Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) in managing energy-saving projects for state agencies. This initiative, designed to support the government’s directive for a 20% reduction in energy usage across 800 state agencies, will see MEA and PEA acting similarly to energy service companies (ESCOs). These agencies will handle the installation and maintenance of energy-saving technologies, such as rooftop solar panels, and provide ongoing advice to ensure long-term efficiency. This move aims to address concerns over state budget allocations and business risks associated with long-term energy projects.
In addition, the government is planning to incentivize residential adoption of rooftop solar panels through tax reductions. This initiative, set to launch between 2024 and 2025, is expected to involve around 90,000 households and require a budget of 20.2 billion baht. The project aims to cut electricity consumption from the state grid by 585 million kilowatt-hours annually, furthering Thailand’s commitment to energy conservation and sustainable practices.
Editor’s Note: The Thai government is set to approve a new energy conservation scheme that will have the Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) manage energy-saving projects for 800 state agencies, including the installation of rooftop solar panels. Additionally, the government plans to encourage residential adoption of solar panels through tax reductions, targeting 90,000 households with a budget of 20.2 billion baht, aiming to reduce state grid electricity consumption by 585 million kilowatt-hours annually.
E-Commerce Platforms to Increase Sales Fees, Impacting Local Merchants
Major e-commerce platforms Shopee, Lazada, and TikTok Shop are set to raise their sales transaction fees, significantly affecting local merchants. TikTok Shop has already implemented two fee hikes this year, with a further increase scheduled for September 2024, raising fees across various product categories. Similarly, Shopee and Lazada have adjusted their fees multiple times in 2023, with Shopee’s fees now ranging from 5-8.56% and Lazada’s from 5-10% depending on the product category. This trend reflects a broader shift among Southeast Asian e-commerce platforms towards prioritizing profitability over growth.
Experts attribute these fee increases to a market shift focused on improving profitability following years of heavy discounting and subsidies. Alessandro Piscini of CREA Asia notes that this realignment is driven by investor demands for sustainable business practices. As platforms like Shopee and Lazada move to close the fee gap with markets in the US and China, local merchants are advised to adapt their strategies to maintain profitability amidst rising operational costs.
https://www.bangkokpost.com/business/general/2840533/online-retailers-set-to-hike-sales-fees
Editor’s Note: Major e-commerce platforms like Shopee, Lazada, and TikTok Shop are increasing their sales transaction fees, significantly impacting local merchants. TikTok Shop has already implemented two fee hikes this year, with another scheduled for September 2024, while Shopee and Lazada have adjusted their fees multiple times in 2023, now ranging between 5-10% depending on the product category. This shift towards higher fees reflects a broader trend in Southeast Asian e-commerce towards prioritizing profitability over growth, driven by investor demands for sustainable business practices.
Thailand Aims to Transition from AI User to AI Innovator
Thailand is positioning itself to shift from being a consumer of artificial intelligence (AI) to an innovator in the AI application space, according to the National Electronics and Computer Technology Center (Nectec). The country plans to leverage its advanced computing infrastructure, burgeoning data centers, and a growing talent pool to achieve this goal. The government and private sector are investing around 1 billion baht to develop a skilled AI workforce of 30,000 by 2027, with further plans to expand this number. The initiative also includes advancing AI research, particularly focusing on a Thai Large Language Model and AI-enabled applications.
With about 300 AI startups already raising 1.5 billion baht in seed funding and a dedicated AI workforce, Thailand is gearing up for its next phase of AI development. Nectec, in collaboration with the Ministry of Higher Education, Science, Research and Innovation, and the Digital Economy and Society Ministry, is set to drive AI use cases across multiple sectors. The second phase of the national AI strategy will see significant investments and the establishment of an AI testing center, aiming to enhance Thailand’s role as a leader in AI technology.
Editor’s Note: Thailand is shifting from being an AI consumer to an innovator by leveraging its advanced computing infrastructure and growing talent pool, with plans to invest 1 billion baht to develop a skilled AI workforce of 30,000 by 2027. The initiative includes advancing AI research, such as developing a Thai Large Language Model, and fostering AI startups, which have already raised 1.5 billion baht in seed funding. Collaborating with key ministries, Nectec will drive AI applications across various sectors and establish an AI testing center to enhance Thailand’s leadership in AI technology.
Thailand’s Board of Investment Launches Matching Fund to Boost High-Tech Startups
The Board of Investment (BoI) has introduced a new “Matching Fund” to support startups with high growth potential in targeted industries, providing financial backing of up to 50 million baht per startup. This initiative, overseen by the competitiveness enhancement board led by Finance Minister Pichai Chunhavajira, aims to bolster ventures in sectors such as new-generation vehicles, smart electronics, biotechnology, and advanced agriculture. Startups must demonstrate clear business plans and international expansion strategies to qualify for the fund.
Eligible startups must be majority-owned by Thai nationals and show potential for significant growth and export opportunities. The fund is part of a broader effort to strengthen Thailand’s position in high-tech industries, particularly within the Eastern Economic Corridor (EEC), which the government is developing into a high-tech industrial hub. The initiative aligns with the country’s goal of increasing the production of zero-emission vehicles and other advanced technologies by 2030.
Editor’s Note: The Board of Investment (BoI) has launched a new “Matching Fund” to provide up to 50 million baht in financial backing to high-growth startups in sectors like new-generation vehicles, smart electronics, biotechnology, and advanced agriculture. To qualify, startups must be majority-owned by Thai nationals, demonstrate robust business plans, and have international expansion strategies. This initiative supports Thailand’s goal of strengthening its high-tech industries, particularly within the Eastern Economic Corridor (EEC), and advancing zero-emission vehicle production by 2030.
Bank of Thailand Eases Foreign Exchange Controls for Outbound Investments
The Bank of Thailand (BOT) has announced a significant relaxation of foreign exchange controls as part of its ongoing efforts to create a “new Thai FX ecosystem.” The latest amendments, which build on previous relaxations made in November 2019, lift restrictions on outbound investments, expanding the types of foreign investment products available to Thai investors. Under the new measures, investors can now engage in a broader range of products including foreign stocks, exchange-traded funds, commodities, and gold futures, in addition to the previously permitted debt instruments.
Additionally, the BOT has streamlined regulations for foreign currency deposit (FCD) accounts, allowing investors to use a single FCD account for all permitted transactions, rather than maintaining separate accounts for different types of investments. These changes are expected to enhance flexibility and accessibility for Thai investors, supporting broader participation in global financial markets.
Editor’s Note: The Bank of Thailand (BOT) has relaxed foreign exchange controls, allowing Thai investors to access a wider range of international investment products, including foreign stocks, ETFs, and commodities. The new measures also streamline regulations for foreign currency deposit accounts, enhancing flexibility and supporting greater participation in global financial markets.
Thai Media Usage Trends Reveal Shift Toward Digital Dominance Post-Pandemic
A new study by Marketbuzzz highlights significant changes in media consumption patterns among Thais, showcasing a shift towards digital platforms following the Covid-19 pandemic. The study, which involved 700 participants keeping a seven-day diary, indicates that social media, internet browsing, and streaming video content are the most prevalent channels, with social media usage leading at 70%. Platforms like Line and Facebook dominate social media usage, while YouTube maintains its lead in video streaming despite rising competition from services like Netflix and Disney+.
The study also emphasizes the importance of mobile devices in media consumption, noting a decline in traditional media forms such as radio and newspapers. Usage patterns vary throughout the day, with social media and apps peaking in the morning and video content in the evening. Marketbuzzz CEO Grant Bertoli underscores the need for brands to adapt their media strategies to these evolving habits, combining media types with optimal times for more effective advertising.
https://www.bangkokpost.com/business/general/2839487/understanding-thai-online-media-usage
Editor’s Note: A Marketbuzzz study reveals that post-pandemic, Thai media consumption has shifted predominantly to digital platforms, with social media leading at 70% and video streaming via YouTube remaining strong despite competition. The study highlights a decline in traditional media and stresses the need for brands to adapt their strategies to these evolving digital habits and usage patterns throughout the day.
Masan Group Wins Top Honors in ESG Categories at Top 50 Corporate Sustainability Awards
Vietnam’s Masan Group has achieved notable recognition at the Top 50 Corporate Sustainability Awards, clinching honors in three ESG categories: Sustainable Resource Management, Human Resources Strategy for Sustainable Development, and Excellent Corporate Governance. The awards, presented by Nhip Cau Dau Tu magazine, underscore Masan Group’s robust commitment to sustainable development practices and its leading role in the listed companies sector.
Masan Group’s dedication to ESG principles is evident through its advanced, environmentally friendly production practices and its substantial contributions to Vietnam’s net-zero targets. The group’s efforts include substantial green spaces at its facilities, energy-efficient processes, and significant reductions in water consumption. This achievement further cements Masan’s position as a top performer in corporate sustainability and reflects its broader strategy to integrate ESG principles across its operations.
Editor’s Note: Masan Group has been honored with top awards in Sustainable Resource Management, Human Resources Strategy for Sustainable Development, and Excellent Corporate Governance at the Top 50 Corporate Sustainability Awards. These accolades highlight Masan’s strong commitment to ESG principles, including environmentally friendly production practices and significant contributions to Vietnam’s net-zero targets.
HSBC Upgrades Vietnam’s 2024 GDP Growth Forecast to 6.5% Amid Strong Economic Performance
HSBC has revised its forecast for Vietnam’s 2024 GDP growth to 6.5%, up from the previous estimate of 6%, following the country’s better-than-expected economic performance in the first half of the year. According to HSBC’s latest ‘Vietnam at a Glance’ report, Vietnam’s GDP grew 6.9% year-on-year in the second quarter, marking one of the highest growth rates in two years and exceeding market expectations. This improvement positions Vietnam to potentially reclaim its status as ASEAN’s fastest-growing economy.
The report highlights a robust expansion in the manufacturing sector, which grew 10% year-on-year, and strong export growth of 15%. Additionally, sentiment among manufacturers has surged, with June’s PMI reaching its highest level in two years. Despite inflation concerns, projected to average 3.6% for the year, HSBC expects the State Bank of Vietnam to maintain its policy rate at 4.5% amid stable economic conditions.
Editor’s Note: HSBC has upgraded Vietnam’s 2024 GDP growth forecast to 6.5% from 6% following stronger-than-expected economic performance, with GDP growing 6.9% year-on-year in the second quarter. The report highlights robust growth in the manufacturing sector and a 15% increase in exports, alongside improved manufacturer sentiment as reflected in a two-year high PMI. Despite anticipated inflation averaging 3.6%, HSBC expects stable economic conditions will lead the State Bank of Vietnam to maintain its policy rate at 4.5%.
Indonesia Eases Local Content Requirements to Attract Foreign Investment in Renewable Energy
Indonesia has relaxed its local content regulations for renewable energy projects in a bid to unlock concessional loans from international development banks. Under a new regulation, projects receiving at least 50% of their funding from foreign multilateral or bilateral lenders are exempt from local content requirements. The move aims to facilitate access to over $20 billion pledged under the Just Energy Transition Partnership (JETP) led by the G7 countries and address the limited disbursement of funding due to stringent local content rules.
Additionally, solar power projects can now use imported panels, provided they secure ministerial approval and meet certain conditions, such as signing a power purchase agreement by the end of 2024 and operationalizing the plant by mid-2026. The new rules also require solar panel suppliers to commit to investing in local production facilities. This regulatory shift is part of Indonesia’s broader strategy to increase its renewable energy capacity, with state utility Perusahaan Listrik Negara planning to expand renewables-sourced power capacity by 20.9 gigawatts by 2030.
Editor’s Note: Indonesia has eased local content requirements for renewable energy projects to attract foreign investment and access concessional loans from international development banks. Projects funded at least 50% by foreign lenders are now exempt from these requirements, facilitating access to over $20 billion pledged under the Just Energy Transition Partnership (JETP). The new regulations also allow the use of imported solar panels with ministerial approval, provided certain conditions are met, and require suppliers to invest in local production, supporting Indonesia’s goal to expand its renewable energy capacity by 20.9 gigawatts by 2030.
Indonesia Enhances Smart City Collaborations at ASEAN Annual Meeting
Indonesia has reinforced its commitment to smart city development by strengthening partnerships within the ASEAN Smart City Network (ASCN). At the 7th Annual ASCN Meeting in Luang Prabang, Laos, Home Ministry Director General Amran emphasized the importance of public-private sector collaboration to drive sustainable and resilient urban solutions. The meeting, which highlighted around 50 projects and 40 partnerships, provided a platform for ASEAN nations to share successful smart city practices and innovations.
Among the highlights, Indonesian cities Makassar and Banyuwangi presented their smart city initiatives. Makassar showcased its “Lorong Wisata” program, focusing on various urban issues including food security and circular economy, while Banyuwangi shared its “Smart Kampung” initiative, supported by Japan’s Ministry of Land, Infrastructure, Transport, and Tourism. The district also introduced new apps like Road Manager and Bike Sharing, aimed at improving urban mobility and tourism.
Editor’s Note: At the 7th Annual ASEAN Smart City Network (ASCN) Meeting in Luang Prabang, Indonesia strengthened its smart city collaborations, highlighting the need for public-private partnerships to drive sustainable urban solutions. Indonesian cities Makassar and Banyuwangi showcased their smart city initiatives, with Makassar presenting its “Lorong Wisata” program and Banyuwangi introducing its “Smart Kampung” initiative supported by Japan, along with new apps for urban mobility and tourism. The meeting emphasized sharing successful practices and innovations among ASEAN nations, with around 50 projects and 40 partnerships discussed.