Major companies and attractions in Thailand that may not survive Covid-19

[huahin4ever]

It is disturbing. My niece is working for the Mall Group and for the Department Store. Today she told me she doubt that it will be opened, and she could also loose her job. Sad times.

[Nereus]

Currently, the basement, ground floor and floor 1 are open. But not the Department Store. Very senior Mall Group Staff visited Bluport on Wednesday. They are joint owners.

There are quite a lot of empty units on the upper floors, my hunch would be that they would try and fit those that are still open into fewer floors. The economic outlook isn't good, even without tourists, so I would imagine all cost saving measures will be considered.

The problem with trying to move shops that are still open from upper floors lower is who is going to pay for moving the fittings. In addition, some of the existing shops are sized to suit the tenants business, and it may be difficult to find a vacant shop that suits the business.

[buksida]

AUTOMOBILE PRODUCTION LOWEST IN 30 YEARS
The Federation of Thai Industries (FTI) said in a report on Thursday that automobile production fell to the lowest level in 30 years in April, impacted by the COVID-19 pandemic.

The FTI report said only 24,711 automobiles were produced in April, down 83.55 percent year-on-year.

The number of vehicles produced for export had dropped 81.76 percent, while the number produced for domestic consumption was down 85.35 percent.

Also, the domestic sale of cars in Thailand was at 30,109, down 65.02 percent year-on-year due to the drop in people’s purchasing power, while the export of automobiles was at 20,326, down 69.71 percent year-on-year owing to the economic slowdown.

The FTI has cut its production target for the automotive industry from 2 million to just 1 million.

The report also said that very few people had been visiting car showrooms even though the COVID-19 situation has improved.

It said that should there be a second wave of infections, the automobile industry will nosedive further.

https://www.khaosodenglish.com/news/cri ... to-reopen/

[PeteC]

Hertz files for bankruptcy

They do business here in Thailand as well.

https://edition.cnn.com/2020/05/22/busi ... index.html

[HHTel]

Bankruptcy doesn't always mean the end of the company. It's often 'damage limitation'.

Hertz said the bankruptcy process will give it "a more robust financial structure that best positions the company for the future as it navigates what could be a prolonged travel and overall global economic recovery."

Thai Airways, I believe is going to the bankruptcy court with a similar objective in mind.

[pharvey]

Hertz files for bankruptcy

They do business here in Thailand as well.

I note from the BBC report that several international operations are unaffected, although it does not mention Thailand specifically.

"Hertz's international operations in Europe, Australia and New Zealand as well as its franchised locations in the US are not affected."

https://www.bbc.co.uk/news/business-52780841

[caller]

Just an update on Bluport if anyone is interested. I was there earlier and the basement is really filling up with new shops now and as per MV, it's aimed more at Thais. They even have a shop for mens xxx clothing (obviously aimed at farangs - at the immigration end). The lady told me they were previously at MV or still are and have opened another shop, that's down to me not speaking Thai. The food court down there is almost back to normal as well. The whole of the 1st floor is now fully open, including the Department store. It certainly makes the store seem busier, although it might just be the weekenders here (why go to a Mall) and / or the effects of the weather improving numbers? I had to park on what is effectively the 4th floor (1M) not including the basement.

[buksida]

May domestic car sales tumble 54.12% yoy
Domestic car sales in Thailand shrank for a 12th straight month in May, down 54.12% from a year earlier to 40,418 vehicles, as the coronavirus outbreak hurt demand, the Federation of Thai Industries (FTI) said on Thursday.

Sales in April plunged 65.02% from a year earlier.

The country is a regional vehicle production and export base for the world's top automobile manufacturers.

https://www.bangkokpost.com/business/19 ... 12-y-y-fti

Lemme guess, they'll be putting the prices up ...

[Dannie Boy]

Yes in most markets they’d be looking to offer discounts to attract customers, but as we know TIT!!


Sent from my iPhone using Tapatalk

[handdrummer]

If Thailand is a "regional vehicle production an export base" for so many manufacturers, why is it more expensive to buy their vehicles here, than in other countries?

[HHTel]

TAX, TAX and more TAX!

[pharvey]

TAX, TAX and more TAX!

Absolutely, but I always thought Pick-ups had huge advantages with regards to tax? Imported saloons taxed to God know's what.

[buksida]

Absolutely, but I always thought Pick-ups had huge advantages with regards to tax?

Not sure that is the case anymore, pickups are just as expensive, if not more so, than sedans. A top-end one will cost you more than an apartment!

[buksida]

THAILAND RECORDS LOWEST EXPORTS IN YEARS DUE TO CORONAVIRUS
Thailand’s Ministry of Commerce on Wednesday released a report, indicating that Thai exports in May had shown the lowest level in four years as a result of the COVID-19 pandemic.

“The export value in May was recorded at 16.28 billion U.S. dollars, down by 22.50 percent year-on-year, and the import value was at 13.58 billion U.S. dollars, down by 34.41 percent,” said Pimchanok Vonkorpon, director-general of the commerce ministry’s Trade Policy and Strategy Office (TPSO).

The TPSO report said that the demand and supply market shrank as a result of the COVID-19 pandemic.

“Production in Thailand had plunged because of worldwide lockdowns,” Pimchanok said, adding that the pandemic is on a global scale and that she is unable to predict as to when the pandemic will subside.

However, exports of farm products and foods remained promising as they grew by 22 percent, up from 15 percent in the same period last year, the report said.

Pimchanok said that Deputy Prime Minister and Commerce Minister Jurin Laksanavisit had instructed that this particular sector of farm export must be protected.

Overall Thai export during January to May 2020 totaled 97.899 billion U.S. dollars, down 3.71 percent year on year, while import was at 88.808 billion U.S. dollars, falling 11.64 percent year on year, leaving a trade surplus of 9.0906 billion U.S. dollars for the first five months, the TPSO report said.

https://www.khaosodenglish.com/news/bus ... ronavirus/

[nil]

Non performing loans could sink the economy

Non-performing loans have become a major worry for the banking sector as the coronavirus pandemic has caused economic hardship with many clients defaulting on loans or unable to pay, several senior banking sources told Thai Enquirer on Thursday.

The number of non-performing loans was already increasing before COVID-19 with fourth-quarter results from 2019 showing an increase of 16.7 per cent year on year up to 140.57 billion baht worth of loans.

“The numbers are so much worse this year,” said one senior banker at Kasikorn Bank who asked not to be named. “As a result, the cash flow into the banks are drying up.”

According to the source, the problem was being experienced by all major Thai banks big and small.

“We’re not just talking about small loans like home loans and such but some major loans from corporations whose businesses have been hit,” he said.

Bank of Thailand Measures

The Bank of Thailand had earlier asked banks to hold a three-month mortgage break to relief pressure on debtors but analysts say that the measure is not enough as many were still struggling with the economic impact of the coronavirus outbreak.

The national bank revised its prediction on Wednesday and said the economy was likely to contract 8 per cent instead of the earlier prediction of 5 per cent.

Informal Workforce Hit Hardest, Most Likely to Default

A report released this week by the United Nations’ International Labor Organization (ILO) examining how the coronavirus pandemic is impacting Thailand’s labour market in the first quarter of 2020 said that informal workers were the most severely affected by the impact of the outbreak.

“With the country put under lockdown from mid-March, the COVID-19 impact on workers is not expected to have reached full force in the first quarter,” said the report. “Nonetheless, it is interesting to examine already where disruption is occurring as a signal of the amplified impact expected in the second quarter and beyond.”

“Already, the ten occupations with the highest shares of daily and hourly workers saw a reduction of nearly half a million jobs between the first quarter of 2019 and the first quarter of 2020.”

According to the banks, among personal and home loans, the most likely debtors to default or not pay loans were those in the informal sector.

The UN report said that the loss of income will push many workers into the poverty threshold – a minimum income of US$1.90 or 60 baht per day – and as a result will increase the proportion of poor laborers in Thailand from 4.7 to 11 per cent of the total employment in 2020.

Other agencies in Thailand have predicted massive job disruption and redundancies due to the COVID-19 outbreak:

Employers’ Confederation of Thai Trade and Industry: 9.5 million job losses
The National Economic and Social Development Council: 8.4 million job losses
Joint Standing on Commerce, Industry and Banking: 7.1 million job losses

https://www.thaienquirer.com/14894/non- ... e-economy/