Digital wallet scheme coming in Q4: PM Srettha
Prime Minister Srettha Thavisin announced the government’s 500 billion baht digital wallet scheme, slated for rollout in the fourth quarter of this year. The initiative, spearheaded by the ruling Pheu Thai Party, aims to invigorate the economy by providing 10,000 baht to 50 million eligible Thais within six months for local spending. Mr. Srettha, also the finance minister, anticipates a GDP growth boost of 1.2 to 1.6 percentage points, emphasizing the necessity for substantial stimulus amidst sluggish economic performance.
Eligibility for the scheme targets Thais aged 16 and older earning below 70,000 baht monthly with less than 500,000 baht in their bank accounts. While initially intended for 56 million people, revised criteria lower the eligible count to an estimated 50 million. However, concerns linger over the scheme’s fiscal responsibility, prompting scrutiny from economists and former central bank governors over potential strain on public debt.
https://www.msn.com/en-xl/news/other/digital-wallet-scheme-coming-in-q4-says-srettha/ar-BB1lrkBS
Energy Absolute and Bangkok develop new green aviation fuel venture
Subsidiary EA Bio Innovation, in collaboration with BAFS, aims to develop sustainable fuel for turbine-engine aircraft, targeting the replacement of traditional jet A-1 fuel derived from fossil resources. With the potential to mitigate carbon dioxide emissions, sustainable aviation fuel (SAF) can be sourced from materials like used cooking oil or agricultural waste, as outlined by Vasu Klomkliang, EA’s executive vice-president. Anticipating production to commence in the first quarter of next year, EA plans to initially produce 130 tonnes of SAF daily using raw materials such as used cooking oil and palm fatty acid, with a portion of its 2024 investment budget, totaling 14 billion baht, allocated for this development.
Despite significant interest from oil and aviation sectors, formal purchase agreements for SAF are yet to be finalized, revealed by Mr. Vasu, reflecting the ongoing negotiations with potential buyers.
https://www.msn.com/en-xl/news/other/new-green-aviation-fuel-venture-formed/ar-BB1lmZwW
Editor’s Note: Energy Absolute’s subsidiary, EA Bio Innovation, is partnering with Bangkok Aviation Fuel Services (BAFS) to produce sustainable aviation fuel (SAF) from sources like used cooking oil and agricultural waste. Despite strong industry interest, formal purchase agreements for SAF are still in negotiation, with production expected to begin in the first quarter of next year using a portion of EA’s 14 billion baht investment budget for 2024.
Absolute Clean Energy starts offering net-zero solutions
Efforts to combat global warming have motivated Absolute Clean Energy (ACE) to transition into a net-zero solution provider, leveraging the rising demand for clean energy. Recognizing the significance of achieving net-zero targets, ACE plans to expand its services by selling renewable energy certificates (RECs) and offering carbon dioxide reduction advice to clients, particularly targeting large multinational companies interested in building data centers in Thailand. With 23 power plants already in operation, ACE aims to further its renewable energy initiatives by allocating 20 billion baht to finance 66 new renewable power plant projects secured through state auctions, underlining its commitment to clean energy development.
Meanwhile, subsidiary EA Bio Innovation, in collaboration with BAFS, is venturing into the development of sustainable aviation fuel (SAF) to replace conventional jet fuel derived from fossil resources. With an expected production launch in the first quarter of next year, EA plans to produce 130 tonnes of SAF daily using raw materials such as used cooking oil and palm fatty acid, allocating part of its 2024 investment budget of 14 billion baht for this purpose. Although EA has received interest from oil and aviation businesses for purchasing SAF, formal agreements are yet to be finalized, highlighting ongoing negotiations with potential buyers.
https://ground.news/article/ace-becomes-a-provider-of-net-zero-solutions
Editor’s Note: Absolute Clean Energy (ACE) is shifting its focus to become a net-zero solution provider, offering renewable energy certificates (RECs) and carbon dioxide reduction advice to multinational companies, with a particular focus on those planning data center projects in Thailand. Concurrently, EA Bio Innovation, a subsidiary of Energy Absolute (EA), is collaborating with Bangkok Aviation Fuel Services (BAFS) to develop sustainable aviation fuel (SAF) from sources like used cooking oil and palm fatty acid, with production slated to begin in the first quarter of next year.
VAT now applied to all imported goods
Following a directive from Prime Minister Srettha Thavisin, the government is poised to implement a 7% value-added tax (VAT) on imported goods valued at one baht or more, starting in May. Currently, goods imported to Thailand and sold for less than 1,500 baht per parcel are exempt from VAT.
Deputy Finance Minister Julapun Amornvivat revealed progress in finalizing relevant legislation during the weekly cabinet meeting, affirming that the Finance Ministry and Revenue Department are in the process of completing legislation on VAT collection, expected to be finalized by May. Mr. Julapun reiterated the Prime Minister’s emphasis on the necessity of VAT collection for goods valued less than 1,500 baht per parcel, highlighting the anticipated increase in government tax revenue resulting from this initiative.
https://www.bangkokpost.com/business/general/2769869/all-imported-goods-now-face-vat
Editor’s Note: In response to Prime Minister Srettha Thavisin’s directive, the Thai government will enforce a 7% value-added tax (VAT) on all imported goods valued at one baht or more, effective from May onwards. Deputy Finance Minister Julapun Amornvivat confirmed progress in legislation development during a cabinet meeting, emphasizing the anticipated rise in tax revenue resulting from the expansion of VAT coverage to goods previously exempted under the 1,500 baht threshold.
Thailand eager to partake in chip frenzy
Thailand aims to bolster foreign investment in advanced semiconductor production this year, signaling growing interest from companies in China and Taiwan seeking to mitigate geopolitical risks. According to the Board of Investment (BoI), these investments, particularly in printed circuit boards, are expected to bring advanced technology clusters to Thailand’s manufacturing landscape, leveraging the country’s robust infrastructure, skilled workforce, and tax incentives.
In 2023, total semiconductor production investment in Thailand amounted to 800 billion baht, with recent investments such as Sony Device Technology (Thailand) (SDT) injecting 2.3 billion baht into its new semiconductor fabrication building. SDT’s decision to establish this facility in Thailand, driven by geopolitical considerations and the nation’s cost advantages and skilled labor force, highlights the country’s attractiveness as a manufacturing hub. The new facility, slated to commence production of laser diodes by mid-year and image sensors for automotive applications next year, is expected to significantly boost employment, with plans to add 2,000 employees within three years, emphasizing the importance of the automotive sector and data centers in Thailand’s economy.
https://www.bangkokpost.com/business/investment/2767123/thailand-keen-to-join-the-chip-frenzy
Editor’s Note: Thailand is actively seeking increased foreign investment in advanced semiconductor production, with a focus on attracting companies from China and Taiwan to mitigate geopolitical risks. Recent investments, such as Sony Device Technology (Thailand)’s new semiconductor fabrication building, underscore Thailand’s appeal as a manufacturing hub, driven by factors like cost advantages, skilled labor, and strategic geographical considerations.
Vietnamese business raises $1.5 million for sand battery solution that reduces carbon emissions
Vietnamese startup Alternō has secured US$1.5 million in an oversubscribed funding round, spearheaded by The Radical Fund and Touchstone Partners, with additional support from Antler, Impact Square, and international grants. This funding injection aims to propel the development of sand-based batteries tailored for agricultural energy storage, aligning with the company’s mission to combat carbon emissions.
Alternō’s innovative thermal energy storage solution utilizes patented sand battery technology, offering a sustainable alternative for agricultural operations. By leveraging insulated sand embedded with customized heat-conducting tubes, the solution addresses various agricultural needs such as drying, warming, or heating, presenting a cost-effective and eco-friendly alternative to traditional grid energy and lithium-ion batteries. With the agricultural sector’s increasing demand for thermal energy, driven by climate change impacts, the urgency of adopting clean energy solutions underscores the significance of Alternō’s endeavor in curbing carbon emissions.
Additionally, Alternō is progressing its sand battery systems for industrial applications, offering capacities from 250 kWh to 1.8 MWh. This development holds the potential for significant energy conservation and yearly reductions in carbon emissions for farms and agricultural enterprises globally.
Editor’s Note: Vietnamese startup Alternō has raised $1.5 million in funding to further develop its sand-based battery solution tailored for agricultural energy storage, aiming to reduce carbon emissions. The innovative thermal energy storage system offers a sustainable alternative to traditional grid energy and lithium-ion batteries, addressing the increasing demand for clean energy solutions in the agricultural sector.
Nordic firms interested in investing in Vietnam due to its net-zero commitment
SEB, the largest Nordic bank headquartered in Sweden, recently selected Hanoi as the venue for its annual conference catering to Nordic business leaders, underscoring Vietnam’s appeal to European investors, particularly in renewable energy, green business, and human resources sectors. Following the event, Marcus Wallenberg, chairman of the SEB board of directors, expressed to Tuoi Tre (Youth) newspaper that all 90 CEOs and directors in attendance exhibited optimism regarding business prospects in Vietnam.
Deputy Prime Minister Tran Luu Quang, representing the Vietnamese government, outlined investment priorities and commitments to Nordic businesses during the conference. Wallenberg noted Vietnam’s determined growth trajectory, accompanied by essential reforms, yet emphasized the need for expediting investment license procedures and facilitating foreign enterprises’ understanding of the investment process. Notably, approximately half of the participating businesses lacked existing operations in Vietnam, signifying a growing interest in exploring the country’s business landscape and engaging in dialogue on various topics, including Vietnam’s capabilities and challenges.
Editor’s Note: Nordic firms, inspired by Vietnam’s net-zero commitment, are increasingly interested in investing in the country, particularly in renewable energy and green business sectors. SEB’s choice of Hanoi for its annual conference reflects European investors’ optimism about Vietnam’s business prospects, with Deputy Prime Minister Tran Luu Quang outlining investment priorities and commitments to Nordic businesses during the event.
Indonesia all set to host 7th Global Conference
The International ESG Association, in collaboration with several esteemed organizations including the Center for Environmental, Social, and Governance Studies (CESGS) and Universitas Airlangga, is co-organizing the 7th Global Conference: ESG Management & Sustainability in Indonesia. Scheduled from August 6th to 8th, 2024, at the ASEEC Tower in Surabaya, the conference aims to address critical environmental challenges and promote sustainable business practices through inclusive discussions and expert sessions, engaging a diverse, international audience.
Indonesia, being particularly vulnerable to the severe impacts of climate change, faces rising temperatures, sea level rise, and frequent natural disasters. With a significant portion of its population residing in coastal areas, the threat of flooding and inundation looms large. In response, CESGS and Universitas Airlangga have joined forces to organize this conference, with the support of the International ESG Association, the APRU Sustainable Waste Management Program, and Korea University’s ESG Institute. The event seeks to convene global experts to address environmental concerns and foster sustainable solutions, featuring distinguished speakers such as Professor Yong Sik Ok, co-president of IESGA and Chair/Director of the APRU SWM Program.
https://www.eurekalert.org/news-releases/1040745
Editor’s Note: The 7th Global Conference on ESG Management & Sustainability will take place in Surabaya, Indonesia, from August 6th to 8th, 2024, organized by the International ESG Association, CESGS, and Universitas Airlangga. With Indonesia facing severe climate change impacts, including rising temperatures and sea level rise, the conference aims to promote sustainable business practices and address critical environmental challenges through inclusive discussions and expert sessions.