1. Thai National Shippers’ Council (TNSC) raised their forecast for Thailand’s export growth to 8% this year. The more upbeat outlook is due to stronger demand from both key and non-key trading partners. The TNSC also noted that the Thai export structure has become more balanced. (IQ Biz, 9/5/2018)
  2. Thai Industries Sentiment Index (TISI) dipped in April as a result of the Songkran holidays, said the Federation of Thai Industries (FTI) while urging the government to expedite its move into the emerging markets and increase technology transfer measures. Suphan Mongkolsuthree, FTI chairman, said the TISI fell to 89.1 in April from 90.7 in the previous month due to less-than-normal business days. Business operators accelerated their production in March, leading to lower production in April as they were concerned over higher raw material and oil prices as well as wages and price competition, he said. (The Nation, 11/5/18)
  3. Car production in Thailand rose strongly by +11.87% YoY (134,779 units) in April despite long holiday. Thailand produced 674,469 of cars in the first four months of this year (+11.29%). This year production should meet the target of 2 million of which 1.1m aim for exports. (Kao Sod, 11/5/18)
  4. The Minister of Finance ordered BoT, SET and SEC to discuss postponing IFRS9 with regards to the impact this may have on SMEs. With provisions high, banks are likely to turn down loan applications or raise the interest rate. The BoT has proposed applying only some parts of the new accounting policy. ( Kha o Hoon, 10/5/18) SCB, KBANK and BBL will reverse provisions, which will raise profit, if IFRS 9 is postponed to 2022.  SCB has made provisions of Bt26bn, KBANK Bt34bn and BBL Bt20bn. KTB has set aside Bt40bn provisions and it will book a profit if AQ can liquidate its land and repay debt.
  5. IFRS 9 adoption queried likely impact on SMEs considered egregious. Thailand’s adoption of the International Financial Reporting Standard 9 (IFRS 9) does not have to follow the strict standard being implemented in developed countries, especially if there are adverse effects on small businesses and retail customers, says Finance Minister Apisak Tantivorawong. (IQ Biz, 10/5/2018) The Bank of Thailand has left the door open for delays in the implementation of the International Financial Reporting Standard 9 (IFRS 9), saying the decision rests with the Oversight Committee on Accounting Professions (Ocap). (Bangkok Post, 11/5/18
  6. BOT reports BoI applications in 1Q18 totaled 366 projects, up 27% YoY from 288 projects in 1Q17. 1Q18 investment value was Bt205bn, up 200% YoY from Bt59bn in 1Q17, with more big investment projects in EEC. (Post Today, 10/5/18)
  7. Global growth remains solid at the start of second quarter. The world economy started the second quarter with a modest acceleration in the rate of expansion of global private sector economic activity. Although growth failed to recover and match the highs seen around the turn of the year, it remained solid and was in line with its long – run trend. Concurrent upturns continued in the manufacturing and service sectors, with output increasing at slightly faster rates in both categories. The breadth of the expansion also extended across the six sub – industries covered by the survey. Activity rose across the consumer, intermediate and investment goods industries and at providers of business, consumer and financial services. (Markit economics, 5/5/18)
  8. The unemployment rate fell to 3.9 percent in April, an 18-year low, even as nonfarm payrolls rose by just 164,000, according to a report Friday from the Bureau of Labor Statistics. Economists surveyed by Reuters had expected payroll growth of 192,000 and the jobless rate to drop by one-tenth of a percent to 4.0 percent. The official jobs tally showed an increase from an upwardly revised 135,000 in March. (CNBC, 5/5/18)
  9. Trump announces he will withdraw US from Iran nuclear deal and restore sanctions. President Donald Trump announced on Tuesday he will withdraw the United States from the Iran nuclear deal and restore far-reaching sanctions aimed at severing Iran from the global financial system. “We will be instituting the highest level of economic sanction,” Trump said. “Any nation that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States.” The landmark 2015 nuclear agreement lifted sanctions on Iran that crippled its economy and cut its oil exports roughly in half. In exchange for sanctions relief, Iran accepted limits on its nuclear program and allowed international inspectors into its facilities. Exiting the deal fulfills one of Trump’s campaign promises, but threatens to strain U.S. relations with some of its closest allies and disrupt a significant source of the world’s oil. It also gives Iran the option of expelling inspectors and resuming nuclear activity that it has agreed to suspend. (CNBC, 9/5/2018)
  10. Malaysia’s veteran leader Mahathir wins shock election victory. An alliance of opposition parties spearheaded by Mahathir Mohamad won Malaysia’s general election on Thursday, official results showed, setting the veteran strongman on course for a return to the Prime Minister’s Office he occupied for 22 years. Mahathir told a news conference he expected to be sworn in as prime minister later on Thursday. (CNBC, 10/5/18)

Note: Yes I know point 4/5 has multiple news items in them but all related to IFRS9 which has been all over the news in the past week

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