Thailand Roundup: Short selling, personal loans, alcohol control bill
Illegal short selling
Thailand plans to extend its crackdown on illegal short selling, considering changing the law to allow charges against individuals and companies. The move follows the loss of $156 billion in market value from equities in 2023, Bangkok Post reports. According to the Chairman of the Stock Exchange of Thailand (SET) Pichai Chunhavajira, the regulations in place only permit sanctions against securities firms that file an order for short-selling. “There is an urgent need for more steps to ease investors’ concerns and restore their trust. The short-term measures will revive some confidence, but we still must do more,” Pichai is quoted by Bangkok Post.
Soaring personal loans
Thailand's National Economic and Social Development Council (NESDC) has warned of a surge in personal loans, particularly car loans, as a result of households' lack of financial liquidity. The country's household debt in the third quarter of 2023 reached 16.2 trillion baht (approximately $451.7 billion), accounting for 90.9% of the nation’s GDP, according to Nation Thailand. The rise in personal loans, particularly car loans, is attributed to the higher interest rates and lack of liquidity. “This reflects people’s lack of liquidity, as car loans are usually approved quickly and easily,” NESDC secretary-general Danucha Pichayanan said. NESDC plans to provide guidelines for responsible lending practices, tackle personal loans, and deal with informal debt, Nation Thailand reports.
Alcohol control bill
A new alcohol restriction bill from the Public Health Ministry of Thailand has been approved by the cabinet, but it must now contain measures to promote tourism within a week before the bill's introduction into parliament, Bangkok Post reports. Although the Public Health Ministry's bill is primarily concerned with public safety, government spokesperson Chai Wacharonke stated that the government also wants to encourage tourism, which is a significant economic driver. "Therefore, the economic aspect must be more relaxed while public health and safety, the public health dimension, are considered... There will be a balance between the health aspect and the stimulation of the economy and tourism," Chai is quoted by Bangkok Post.
Airforce gives up golf course for Airport expansion
The Royal Thai Air Force (RTAF) has agreed to hand over its 68-year-old golf course near Don Mueang International Airport, in Bangkok to the Airports of Thailand (AOT) for airport expansion. The decision was made by a special committee led by the spokesperson for political affairs at Thailand’s Defence Ministry Jirayu Houngsub, who had consulted with RTAF commander-in-chef ACM Phanpakdee Pattanakul, Nation Thailand reports. Thailand Prime Minister Srettha Thavisin and Defence Minister Klungsang had tasked Jirayu with leading a committee that would examine ways to get the military to relinquish unnecessary and unused land back to the state for public use, Nation Thailand reported.
Revocation of warrant for former prime minister
The warrant for former Thailand prime minister, Yingluck Shinawatra, was revoked after she avoided legal proceedings regarding allegations of corruption in the 2020 roadshow project. According to Nation Thailand, the Thai Supreme Court's Criminal Division for Political Office-Holders unanimously ruled to withdraw legal action against Yingluck and five other defendants who had been accused of abusing power during the project. The court ruled that the central budget used for the initiative had been evaluated by other governmental bodies and aligned with her government's policies. In 2022, the Thai National Anti-Corruption Commission filed a lawsuit, alleging that Yingluck and the other defendants approved the roadshow project that was awarded to the two publications, Siam Sport and Matichon Plc to shadily assist them with a PR project without appropriately inviting bids for the project, causing damages to the state of 239.7 million baht (roughly $6.69 million), Nation Thailand reported.
