1. FPO: Limited budget to fund populist policies : The Finance Ministry is looking to scale down the new government’s populist campaign promises, given the constraints of the available budget and a delay in the fiscal 2020 budget process. Bangkok Post
  2. BoT starts siege on hot-money flows : Baht weakens, SET shaken after announcement . The Bank of Thailand’s moves to counter hot-money inflows that have pushed the baht to a six-year high and the central bank’s vow to impose more measures if such speculative flows linger rattled the local currency and the stock market last Friday. Bangkok Post
  3. Charter change included in manifesto : The Democrat Party has confirmed its proposed charter amendment has been incorporated into the new government’s manifesto with Prime Minister Prayut Chan-o-cha reiterating his support to change the laws as necessary. Bangkok Post
  4. Dept warns of worst drought in decade : The Meteorological Department (MD) says Thailand is going to experience the worst drought in a decade, as average precipitation across large swaths of the country has fallen far short of the monthly average. Bangkok Post
  5. ICAO nod sought for airports : The first meeting of the International Civil Aviation Organisation (ICAO) in Phuket marks a new phase in aviation development in Thailand as the country plans to ask the UN agency to endorse five more international airports. Bangkok Post
  6. Low-cost homes blocked by loans : As many as 80% of loan applications for the state’s low-cost housing scheme have been rejected, a hurdle that could force some project developers to stall plans amid subdued demand. Bangkok Post
  7. Armed forces back new govt : Armed forces leaders have thrown their full support behind the new government, saying the military is ready to serve as a tool to solve problems and respond to government policies. Bangkok Post
  8. FTI wants SSF waiver for workers in lieu of wage hike : The Federation of Thai Industries (FTI) is calling for the Labour Ministry to waive the 5% contribution from insured workers to the Social Security Fund (SSF) for 6-12 months instead of increasing the daily minimum wage to 400 baht as promised during the election campaign. Bangkok Post
  9. Flat fare eyed for electric train : The government has affirmed its intention to implement transport policies promised to voters by key coalition parties, including a policy to charge electric train passengers a flat fare of 15 baht per ride. Bangkok Post
  10. Free cash to spur tourism, economy : A 1,500-baht handout for travel in secondary provinces has been revived. The Finance Ministry is set to dust off a planned cash handout for travel to 55 secondary provinces by including it in the economic stimulus package going before new Finance Minister Uttama Savanayana. Bangkok Post
  1. the inflows of foreign funds – do these only go into speculative positions on the currency, or are they longer term, eg. investing in Govt & corporate bonds? as I look at the short term reaction by the SET, I am considering whether to participate or stay out of the 2 big IPO’s this year.
    btw, if you will allow me to go off-topic; topic, I recommend a read of an excellent article, (of interest to me as a fan of Thailand and a expat investor) in the NIkkei Asia Review ().

    • Both is the best answer I can give.
      The real short term movement in the currency is into government bonds. but the level of foreign investors in Thai government bonds is ~15% from what I last read. In Malaysia, Philippines, Indonesia the participation rate of foreign investors is 30-50%

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