Indonesia recorded a surplus of $4.53 billion in March to continue a run of a positive trade balance for the 23rd month in a row, the Central Statistics Agency, or BPS announced on Monday.

The country’s exports grew by 29.42 percent to $26.5 billion compared with the previous month, while imports increased by 32.01 percent to $21.97 billion.

During the first quarter of the year, the overall trade surplus reached $9.33 billion.

Deficit with Russia and Ukraine
BPS Head Margo Yuwono said Indonesia saw a deficit in the bilateral trade with warring countries Russia and Ukraine.

“Indonesia’s trade balance with Russia saw a deficit of $204.6 million on our side from January through March, and we also had a deficit of $13.5 million with Ukraine,” Margo said.

Indonesia’s exports to Russia dropped by 48.7 percent to $399.6 million in the first quarter of the year compared to the same period of last year.

Source: Jakarta Globe

BANGKOK, May 2 (Reuters) - The leaders of Japan and Thailand announced a new defence agreement on Monday as well as plans to upgrade their economic relations, as Japanese Prime Minister Fumio Kishida wrapped up the last leg of a three-nation tour of Southeast Asia.

The agreement would facilitate the transfer of defence hardware and technology from Japan to Thailand, which has one of the region's biggest and most equipped armies and a long history of ties with the United States military. Further details of the deal were not disclosed.

"This will help improve national defence and support investment from Japan in this activity which is an important goal for Thailand," Thai Prime Minister Prayuth Chan-ocha said in a joint statement read alongside Kishida.

Prayuth said he discussed improvements in supply chains and the drafting of a five-year economic partnership with Japan, Thailand's biggest investor.

Southeast Asia has for decades been an important region for Japan, hosting some of its biggest names in industry, from infrastructure, engineering and industrial zones to the manufacturing of vehicles and electronics.

The region remains a battleground between the United States, Japan's close ally, and rival China, Southeast Asia's biggest trade partner. On his three-day trip Kishida also visited Vietnam and Indonesia, where Japanese firms maintain a large presence.

As the leader of Asia's sole member of the Group of Seven (G7), Kishida discussed Russia's invasion of Ukraine during his trip to Southeast Asia, where only one nation - Singapore - has joined sanctions against Moscow. Russia calls its actions in Ukraine a "special operation".

Nine Southeast Asian countries backed a United Nations resolution in March condemning the invasion, however, and Kishida thanked Prayuth for Thailand's support.

"I agreed with Prime Minister Prayuth that in any region the violation of sovereignty and territorial integrity, or unilateral changes to the status quo with force, should not be tolerated," he said.

Noriyuki Shikata, Japan's Cabinet Secretary for Public Affairs, earlier on Monday told reporters that Tokyo would be extending a 50 billion yen ($385 million) loan to support Thailand's COVID mitigation efforts.

($1 = 129.9400 yen)

 

Sourse : Reuters

Indonesia's manufacturing sector expansion has accelerated in April thanks to improving economic activities that spur employment and purchasing activity, according to the latest S&P Global Purchasing Manager Index, or PMI, data. 

Indonesia's S&P Global Indonesia manufacturing PMI rose to 51.9, increasing from 51.3 in March and marking the ninth consecutive month of the country's manufacturing sector expansion. A reading above 50 reflects an expansion from the previous month, and conversely, below 50 signals a contraction.

That was also the quickest rate of development since January, as the country dropped off restrictions after the Covid-19 third wave, driven by the Omicron variant, subsided

“The expansion of Indonesia’s manufacturing sector continued in April and at a stronger pace," Jingyi Pan, an economics associate director at S&P Global, said in a statement on Wednesday.  

"An improvement in economic conditions was reflected by stronger upturns in both demand and production, which was a positive sign," Pan said. 

In April, manufacturing production rose quicker, boosted by growing client demand.

While the increase in output was slight, it was the quickest in three months, while new orders also increased since March. Globally, foreign demand increased steadily. However, several enterprises indicated that the situation in Ukraine weighed on total new foreign business. 

“That said, supply issues persisted with longer lead times reported even as Covid-19 disruptions appeared to have eased in April," Pan said. 

Still, Pan warned against price pressures, which worsened last month and could strain production moving forward.

“At the same time, business confidence fell sharply over April, and it will be worth monitoring the impact of higher inflationary pressures. With that said, the increase in purchasing activity and, importantly, the solid expansion of workforce numbers continued to reflect some confidence from firms for the near-term,” Pan said. 

Source: Jakarta Globe

The Chairman of Vietnam’s National Assembly, Vuong Dinh Hue, has called for businesses in Laos and Vietnam to make breakthroughs in trade, investment and economic cooperation to ensure practical benefits for both countries.
Mr Hue made an official visit to Laos during May 15-17 in response to an invitation from his Lao counterpart, Dr Xaysomphone Phomvihane.

As Thailand's largest trading partner, China has been a major export market for Thailand's various products, a crucial supplier of certain raw materials, components and intermediate products, and an important FDI source for Thailand.

BANGKOK, April 29 (Xinhua) -- China has strong economic resilience and sufficient policy room to deal with downward pressures, while its stable growth is of great significance for Thailand's economic recovery, said a Thai scholar.

As Thailand's largest trading partner, China has been a major export market for Thailand's various products, a crucial supplier of certain raw materials, components and intermediate products, as well as an important source of foreign direct investment for Thailand, Tang Zhimin, director of China ASEAN Studies at the Bangkok-based Panyapiwat Institute of Management, said in an interview with Xinhua.

Tang said Thailand's tourism sector, one of the country's major growth drivers that was hit hard by the pandemic, still takes time to recover, making the country more dependent on exports as the main engine of growth.

"The importance of the Chinese economy's steady operation to Thailand's economic development is self-evident," he said.

The Chinese economy got off to a steady start in the first quarter of 2022, expanding 4.8 percent from one year earlier, despite challenges from an increasingly complex international environment and the resurgence of COVID-19 cases at home.

The hard-won growth, accelerating from the previous quarter and beating the expectations of most economists and market observers, is "quite a good performance," Tang said.

The stable growth of the Chinese economy means its demand for Thai agricultural products and other commodities will increase steadily, which is important for Thailand's economic recovery, he said.

Although there are rising downward pressures on the economy, China has sufficient room to maneuver on fiscal policy to avert a slowdown, he said.

For the longer term, Tang said supported by the innovation-driven development strategy, China's industrial upgrading continued apace and led to strong growth in high-tech sectors such as the high-tech manufacturing and equipment manufacturing industries, laying a solid foundation for the country's high-quality development.

He said China's massive domestic market, resilient industrial and supply chains as well as innovative entrepreneurs are also favorable factors sustaining the country's long-term development.

 

Sourse : Xinhua

BANGKOK, April 29 (Reuters) - When 23-year-old Norwegian Anastasia Johansen and her boyfriend were planning their first vacation in two years, they considered going to Thailand but chose nearby Vietnam instead, for its simpler entry rules on the coronavirus. "The regulations to enter Thailand ... were complicated to me and we had to pay for the hefty PCR test," Johansen said.

Thailand, one of the world's tourism destinations before the pandemic, was among the first nations in Asia to reopen its borders to vaccinated visitors last year with limited quarantine norms, hailed at the time as a model for re-opening. But as regional peers have eased entry requirements, Thailand has clung to a cumbersome process.

"Whichever (country) offers easy, smooth, less complicated procedures wins my heart," said Johansen. Tourism professionals say Thailand's complicated entry rules are now holding back recovery in an industry that contributed 12% of GDP before the pandemic.

Forward bookings for 2022 show Thailand reaching 25% of pre-pandemic levels, behind levels of 72% and 65% each for Singapore and the Philippines. Many blame the Thailand Pass pre-entry approval system, which can take up to seven days, although the government recently vowed to streamline it.

"The red tape is killing us," said Bill Barnett, the managing director of hospitality consultancy C9 Hotelworks.

"If you're in Singapore and want to come to Thailand for the weekend, it's not easy. Those short-term trips matter."

American Kiran Stallone, who is visiting family in Thailand, said getting the Thailand Pass required proof of vaccination, insurance coverage of at least $20,000 and reservations at a qualified hotel, all submitted on a Thai government website.

"The government website was hard to navigate, and I had to seek outside help," Stallone added. Stallone said she was told to avoid some steps known to cause submission glitches that would delay her application.

The website does not allow users to save progress or return to previous pages and rejects PDF files. A Facebook group on the Thailand Pass has ballooned to 90,000 members, with would-be travellers asking anxious questions about changing flights, new entry rules and some venting frustration over rejected applications. Similar forums have also emerged on sites such as TripAdvisor.

 

YOU SHALL NOT PASS

Thailand received 39.9 million visitors in 2019 when Bangkok, the capital, was named the world's most visited city. That year, Singapore and the Philippines recorded 19.1 million and 8.26 million arrivals respectively. Thailand aims to attract 5 million to 10 million visitors this year, but critics call its Thailand Pass system an unnecessary obstacle.

"It’s uncompetitive for Thailand and complicated for travellers ... who lose all flexibility," hotel tycoon William Heinecke, chairman of Minor International Pcl (MINT.BK), told Reuters.

An approved Thailand Pass can only be used one week before or after the date indicated. The tourism council also said the system's requirement of individually filed documentation made it tougher for tour operators to bring in groups. Thailand’s coronavirus taskforce spokesperson, Taweesin Visanuyothin, said tourist arrivals have been increasing as measures were relaxed and recognised that domestic infections outnumbered those from abroad. However, Thailand's staggered approach to relaxing the rules has also caused confusion.

Entry for vaccinated tourists with limited quarantine resumed in February after a brief suspension over the Omicron variant. At the time, travellers had to take at least three COVID-19 polymerase chain reaction (PCR) tests; one each before departure, on arrival and on the fifth day of their stay. In March, that final test was replaced with a rapid antigen test and insurance coverage was dropped to $20,000 from $50,000. In April, the pre-departure PCR test was scrapped.

From next month, insurance of $10,000 is required but tests for vaccinated travellers and advance hotel bookings have been dropped.

 

Course : Reuters

Singapore, April 07, 2022 — Moody’s Investors Service (“Moody’s”) has today affirmed the Government of Thailand’s Baa1 issuer and local currency senior unsecured ratings and maintained the outlook at stable. Moody’s has also affirmed Thailand’s foreign currency commercial paper rating at P-2.

The affirmation of the Baa1 ratings reflects Moody’s expectations that Thailand will continue to display economic resiliency to future shocks, underpinned by its large and diverse economy and strong macroeconomic policy effectiveness.

The rating also takes into account material downward pressure on the economy’s growth potential from rapid population ageing and likely long-term economic scarring from the pandemic.

 

Thailand’s fiscal metrics to remain stronger than most Baa-rated peers

While Moody’s expects Thailand’s government debt to increase and remain markedly higher than pre-pandemic norms, leaving the government with weakened fiscal strength for some time, Thailand’s fiscal metrics will still be stronger than most Baa-rated peers. Further, Moody’s assesses it likely that the government will quicken its pace of fiscal consolidation in the next two to three years once the economic recovery takes hold.

 

Balanced risks to Thailand’s credit profile

The stable outlook indicates balanced risks to Thailand’s credit profile. Thailand’s economic strength may benefit from productivity gains, including through the ramp-up of the Eastern Economic Corridor to a greater extent than Moody’s currently expects.

By contrast, the economic and social costs of ageing and Thailand’s capacity to absorb them have yet to be tested. Meanwhile, the authorities’ track record of effective macroeconomic policies, including prudent fiscal policies, despite noise in the political landscape, contributes to the stable outlook.

Thailand’s local and foreign currency country ceilings remain unchanged at Aa3 and A1, respectively. The four-notch gap between the local currency ceiling and sovereign rating reflects a balance between the country’s strong external balances and effective institutions, against the government’s relatively large footprint in the economy and moderate political risks.

The one notch gap between the foreign currency ceiling and the local currency ceiling takes into account Thailand’s history of imposing capital controls, although its low external indebtedness and high policy effectiveness reduce the risks of potential transfer and convertibility restrictions in very low-probability scenarios of the government seeing a need to impose them.

 

Sourse : Thailand Business News

WASHINGTON (Reuters) – US President Joe Biden said on Friday a first summit in Washington with leaders from the Association of Southeast Asian Nations (ASEAN) marked the launch of a “new era” in the relationship between the United States and the 10-nation bloc.

In a joint 28-point “vision statement” after a two-day meeting, the two sides took what analysts called a symbolic step of committing to raise their relationship from a strategic partnership to a “comprehensive strategic partnership” in November.

Both China and Australia hold a similar strategic partnership with ASEAN.

Biden told the ASEAN leaders that “a great deal of history of our world in the next 50 years is going to be written in the ASEAN countries, and our relationship with you is the future, in the coming years and decades.” 

BANDAR SERI BEGAWAN – The government has announced a slew of new protocols for air travel, doing away with the Travel Green List and the need for quarantine upon arrival in Brunei. In a press conference Friday, the Minister of Home Affairs YB Pehin Dato Hj Awg Abu Bakar Hj Apong said there will be no longer be different health protocols based on a traveler’s departure country, only vaccination status. 

Brunei Darussalam’s economy is projected to grow 5.8 per cent this year, according to the International Monetary Fund’s (IMF) latest Regional Economic Outlook report. 

IMF said economic growth in Asia and the Pacific is poised to slow more than previously estimated this year amid headwinds from the conflict in Ukraine, a resurgent pandemic, and tightening global financial conditions.

Regional gross domestic product will expand by 4.9 per cent, 0.5 per centage points less than we forecast in January and slower than last year’s 6.5 per cent growth rate, according to their latest projections. 

They also estimate that inflation will rise faster in many countries, though from relatively low levels.

Slower growth and rising prices, coupled with the challenges of war, infection and tightening financial conditions, will exacerbate the difficult policy trade-off between supporting recovery and containing inflation and debt.

The invasion of Ukraine will pose the biggest challenge for economic growth, with the region’s advanced economies hurt most by reduced demand from Europe and emerging markets feeling the effects of higher global commodity prices, according to the latest projections.

IMF latest World Economic Outlook also lowered the 2022 global growth estimate by 0.8 per centage point to 3.6 per cent. It reflects a 1.1 percentage point cut for the euro area, now seen expanding 2.8 per cent.

Read the full article here.