MTCC NEWS 2/21
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
ISSUE 2/2021
F I R S T D I G I T A L N E W S L E T T E R
4
5
6
7
8
9
10
11
12
12
13
14
15
C O N T E N T S
Ambassador's message
Hon. Chairman's message
Chairman's message
Introduction of New Directors
Ms. Ng Woan Na and
Ms. Low Giin Lan
Securesoft (Thailand) Co.,Ltd.
Capmax Trading Co., Ltd.
AAA Quantum Co., Ltd.
Accolade Corporation Co., Ltd.
Boba Trinity Co., Ltd.
Member's Spotlight: Favor Woodpanel
(Thailand) Co.,Ltd.
Member's Spotlight: Video
Surveillance alone is not enough for
security
Member's Spotlight: Boba Trinity
celebrates the opening of new outlet
Member's Spotlight: MTCC Director
named as WTR Global Leader 2021
Prinsiptek Thai Limited
PCS Security and Facility Services Ltd.
Prosper & Progress Sdn Bhd
QI Services (Thailand) Ltd.
MTCC Acitivities: CanCham Kickstart
Party
ANNUAL GENERAL
MEETING NO. 1/2021
MTCC ACTIVITIES
The Malaysia – Thai Chamber of Commerce (MTCC) organized its
first virtual Annual General Meeting on Thursday, 27 May 2021.
More than 40 members attended this meeting, which was graced
by our honorary guest and our Patron, H.E. Dato’ Jojie Samuel, the
Ambassador of Malaysia to the Kingdom of Thailand.
Dr. Hwee Khim Boo, the chairman of MTCC and Mr. Yap Choon Eng
presented the Annual Report, Financial Report, and MTCC’s
activities conducted in the past one year to the audience. In
addition, MTCC announced the appointment of 2 new directors
replacing the directors who have resigned for the term of 2021-
2022.
A total of 12 Directors are as follows:
16
17
18
19
20
22
23
25
27
30
MTCC Acitivities: Webinar Experience
of a COVID-19 Survivor&Vaccination
MTCC Acitivities: MTCC Leads
Vaccination Drive for Members
CSR: AAPICO Hitech PLC supports the
fight against COVID-19 in Thailand
with donation to Thammasat
University Hospital
CSR: Best Plastics Technology
donated to support COVID-19 fighting
measures
Building back better: Developing
smart and sustainable cities in a post-
COVID world
COVID-19: Travel Information
Medical Devices
Navigating the fintech revolution in
thailand
The rise of sustainability and ESG
agenda in Asia
Global Economics & Market Strategy
1.
2.
3.
4.
5.
6.
D r. Hwee Khim Boo
Mr. CE Yap
Mr. Halmi bin Mohd Salim
Ms. Susan Lim
Mr. Leong KS
Ms. Sher Hann Chua
7. Mr. Pranart Sarnvivad
8. Mr. VT Ten
9. Ms. Rungnapa Chinvigai
10.Mr. Raymond Chee
11. Ms. Woan Na Ng
12.Ms. Low Giin Lan
33
36
37
38
Summary of Malaysia’s Trade
Performance (April 2020/2021)
Thailand Changes its Statutory
Interest Rate
Thailand Introduces Additional
Securities Business Licenses
Rainy Season and COVID-19
39
Thailand and Malaysia Event Calendar
DFDL was established in 1994 and founded on a unique
vision: to create an integrated legal and tax advisory firm,
with in-depth knowledge of the developing jurisdictions in
which we are based. Our dedicated professionals exhibit
the acumen and insight necessary to assist you in
navigating the legal complexities and challenges. Drawing
on a wide-ranging industry experience and finely tuned
local knowledge in countries in which we operate, we strive
to provide concise, commercially focused, and innovative
advice.
DFDL has offices, including collaborating firms, in
Bangladesh, Cambodia, Indonesia, Lao PDR, Myanmar,
Philippines, Singapore, Thailand, and Vietnam.
In 2005, DFDL established a permanent presence in
Bangkok to better serve the needs of our growing client
base in Thailand. With years of solid local experience,
working in conjunction with small and medium businesses,
large corporations, and major Thai banks and financial
institutions, we continue to provide a comprehensive range
of integrated legal, tax, and consulting services in Thailand,
on various types of complex, multi-jurisdiction and crossborder
transactions.
As a full-service law firm, we provide legal and tax services
across all sectors and practice areas. Our team of Thai
and internationally trained legal advisers offers a full range
of services to local and international clients with activities
in Thailand, Southeast Asia, and beyond. We can advise on
all aspects of Thai law.
CORE PRACTICE AREAS
Aviation
Banking, Finance, and Technology
Compliance and Investigations
Corporate and M&A
Employment and Labour
Energy, Mining, and Infrastructure
Restructuring and Insolvency
Real Estate and Construction
Taxation and Accounting
thailand@dfdl.com + 66 2059 4090 + 66 2059 4099
Message From
H.E. Ambasaaador of Malaysia to the Kingdom of Thailand
I wish to congratulate the Malaysian-Thai Chamber of Commerce
(MTCC) for publishing its first-ever digital newsletter. I
believe that this new initiative is most welcomed by its members
as it will have a wider circulation and better serve the objective
of promoting MTCC to all members and non-members alike.
Undoubtedly, the coronavirus COVID-19 pandemic is the defining
global health crisis of our time and the greatest challenge
we have faced since World War Two. Since its emergence in Asia
late 2019, the virus has spread to every part of the world. Countries
are racing to slow the spread of the disease by testing and
treating patients, carrying out contact tracing, limiting travel,
quarantining citizens, and cancelling large gatherings such as
sporting events, concerts, and schools.
The COVID-19 pandemic has left in its wake a multitude of
impacts, not all of them positive or in our interest. At one point
during the pandemic, nearly 80 countries had imposed over 100 new restrictions or other barriers.
At a more immediate level, the pandemic has also changed the way we work and our
consumption patterns, which has, in turn, had its own impact on our businesses and the ability
of firms to meet with international customers.
The pandemic is moving like a wave—one that may yet crash on those least able to cope. But
COVID-19 is much more than a health crisis. By stressing every one of the countries it touches, it
has the potential to create devastating social, economic and political crises that will leave deep
scars.
Countries around the world have started to vaccinate their citizens. Similarly, in Thailand, the
Thai government has started its vaccination drive to vaccinate its citizens as well as all foreigners.
In this regard, I encourage all Malaysians residing in Thailand to take the advantage to register
for the vaccine. It is hoped that by taking the vaccines everyone will be personally protected
from the pandemic.
To meet the challenges posed by the pandemic, businesses around the world had to react in
agile and decisive ways. As we move into the next phase, now is the time for businesses to seek
out and seize the opportunities emerging in the recovery. This involves conducting an “after-action
review” to collect data and insights on lessons learned from the pandemic, and then using
these to prioritise actions to enhance business value today and build strategic resilience for
tomorrow. Businesses that take these steps now will be well-placed to capitalise more effectively
on the opportunities rising in the post-COVID-19 recovery – and to continue winning in their
marketplaces as greater certainty and stability return.
Digital transformation is one tool available to us today, more than during any other past crises.
The rapid advancement in digital technology has offered a way to recoup some of the development
gains and help spur a strong economic revival. We saw how pervasive mobility restrictions
and lockdowns have driven companies to shift their businesses and services online. The use of
digital technology and e-commerce has become the new business norm.
Also, the focus on reskilling and creating career pathways will help the workforce combat the
impact of automation and digital technologies. The pandemic has accelerated job displacements
while creating opportunities in areas like e-commerce, healthcare, last-mile delivery and
consumer technology.
The most important lesson from the COVID-19 pandemic is the importance of working together
on problems that affect the entire human race. We are much stronger united than divided. I
believe that we can weather this crisis by staying united and fighting it together.
Stay safe, stay healthy.
H.E Dato’ Jojie Samuel
Ambassador of Malaysia to the kingdom of Thailand
Honorary Chairman
message for MTCC
Dear Members,
It is an honor that I have been asked to write a short message
for the first all-digital issue of the MTCC newsletter. The Chamber
was started with the initiative of Dato Seri Rafidah Aziz. It
had a very difficult humble beginnings, just like the start of
any foreign chambers in a foreign country. Over the years, the
chamber has found its place in the Thailand business environment,
and plays a very pivotal role in the business community
to support trade between Malaysia and the Kingdom of Thailand.
It is extremely well managed and is well respected by the
Thai business community. The Chamber also works closely to
support the activities of the Malaysian Embassy to improve
the image of Malaysians in the Kingdom of Thailand. I am so
proud to be associated with the Chamber from its inception
until today, over a period of about 20 years.
The current Chairman, Dr Khim Boo, my successor, and the
Board of Directors are carrying their responsibilities very well.
It makes me so proud that the team, who are very busy business
people, sacrifice their time to run the Chamber effectively.
This selfless sacrifice is most commendable.
It is unfortunate the Covid-19 pandemic is affecting the whole
world including Thailand. It has not only affected the closure
of businesses, but took many lives from families. This is probably
the worst disruption of human lives in the modern history
of mankind. It started here in March 2020 and I hope in the
next few months, the seriousness will abate and living can be
more normal again, death be reduced and planes will start
flying normally, and the general economy opened up to the
same level as in the days before the Covid-19 pandemic.
Please stay safe and continue to support the MTCC.
Kind regards
Yeap Swee Chuan
(Honorary Chairman MTCC)
This newsletter is worth mentioning
as it is the first all-digital newsletter
for MTCC. It is an indication that
MTCC is moving forward with the
times in reaching out to a wider audience.
We are also revamping our
website to improve efficiency of
administration and communication.
Mr. Hairuddin Bin Maslan
Counsellor (Agriculture)
Honorary Board of Directors
Mr. Yeap Swee Chuan - Hon. Chairman
Mr. Daniel Soh - Hon. Director
Mr. Khew Ham Hoe - Hon. Director
Mr. Supasak Chirasavinuprapand - Hon. Director
Mr. Yap Choon Eng - Deputy Chairman and
Treasurer
Ms. Woan Na Ng
Unfortunately, just when we thought
the Covid-19 pandemic was tailing
off, the third wave of infections sent
us back to the beginning. The last -
year has been tough for many businesses especially in the
services sector. As we move along the 3rd quarter of the year with
vaccines more readily available, I believe economy will improve.
I am also glad that MTCC is able to secure vaccination slots for our
members. We learned many things from this pandemic, one of
which is that the world is inter-connected; to win over the battle,
we all need to support each other by sacrificing our freedom. I
understand that many companies experience difficulties or were
out of business; however, some have managed to stay afloat in
this difficult time. It sure is a learning curve for all of us to anticipate
the impact of potential business risks. I hope we will all stay
optimistic, and to view such challenges as opportunities.
In May, MTCC held our first ever virtual AGM, and it was good to
see the support of the members at the event. We have appointed
two new Directors, Ms. Woan Na Ng and Ms. May Low Gin Lin to
replace retiring Directors. I would personally like to thank Mr.
Khew Ham Hoe and Mr. Mark Derrick Tang for their contributions
to MTCC.
Finally, on behalf of MTCC, I would like to thank all of you for the
continuous support, and I wish all members a better 3rd and 4th
quarters ahead. Please stay connected via our Facebook and
email updates for the latest MTCC news and activities.
Ms. Low Giin Lan
Mr. Ten Voon Teng
Ms. Pannatorn Chatsrijaroen
| Introduction of New Directors
A Warm Welcome to New MTCC Directors
Ms. Ng Woan Na- Director
Ng Woan Na started her career as a legal practitioner in Malaysia in
2014, focusing primarily on corporate and commercial transactions.
She has advised on cross-border mergers and acquisitions,
take-overs, joint-venture structuring, rights issues and regulatory compliance.
Woan Na moved to Bangkok in 2020 to serve as the Regional
Legal Adviser and China Desk representative of DFDL Legal & Tax.
She advises clients on regulatory compliance of personal data protection
laws, and also handles various transactional and advisory matters.
Woan Na also manages multi-jurisdictional projects across ASEAN,
and leads key matters for Chinese clients while advising them on
inbound investment transactions into Thailand.
Outside of her legal practice, Woan Na also participates in activities under the Institute for Democracy
and Economic Affairs (IDEAS), a non-profit research institute dedicated to promote market-based
solutions to public policy challenges in Malaysia where she focused on implementation progress of
the ASEAN Economic Community (AEC) Blueprint back in 2019.
Ms. Low Giin Lan- Director
Low Giin Lan (May) is the Company Director and Chief Executive
Officer of Wellness Lifestyles Company Limited, Wellness (Bangkok)
Co Ltd, Pure Wellness International Co Ltd, Bangkok Genetic Co Limited
and their group companies in Thailand, pioneering the development
of healthcare membership services in Thailand. May Low is also a
former consultant at Samitivej Public Company Limited, where she
promoted loyalty programs for the leading private hospital group. Prior
to her career in healthcare marketing, May was a Senior Finance Manager
at the Leisure Group of Companies and Sunway Group. She was
also awarded the Asia’s Women Leaders Award - Thailand’s Best
Brand Awards in 2019.
May Low graduated with a Masters Degree from the University of Southern Queensland, majoring in
Business Administration, and also holds a Bachelor Degree in Accounting and Human Resources
from Tasmania University.
07 MTCC NEWS July 2021
| NEW MEMBERS
SECURESOFT (THAILAND)
Address: Level 16, Tower A , Muang Thai-Phatra
Complex, 252/20 Rachadaphisek Road, Huay Khwang,
Bangkok 10310
Phone: 02-180-5236
Email:
andychan@securesoft.com.my
Website: www.securesoft.com.my
Chamber Representative: Mr. Andy Chan
Nature of Business: Cyber Security and Mobile
Technology Products/ Services: Banking Security
Solution, Multifactor Authentication, Single Sign On, E-
signature and ITSM
Company Background :
SECURESOFT Thailand Co., Ltd was formed in Bangkok 1st
July 2013 as a private limited company office located in
the center of Bangkok. Our Branch include Hong Kong and
HQ in Kuala Lumpur Malaysia . We are specialized in the
banking sector providing solutions in both hard and soft IT
security products. Over the years , we expanded to the
enterprise sector providing security solution.
Securesoft provide full and comprehensive IT Enterprise &
Security Solutions that can handle complex malware
attacks, unknown files and zero-day threats.. The
company wide reaching fields of IT expertise help
clients to achieve their diverse goals despite the everchanging
nature of the IT field.
Capmax Trading Co., Ltd.
Address: 9/2 Soi Ramkhamhaeng 118 Yak 46-4 Saphan
Sung, Saphan Sung, Bangkok 10240
Phone: +66 (0)83 088 4117
Email:
thai.sales@capmax.co.th
Website: :w ww.capmax.co.th
Chamber Representative: Mr. Jack Liew
Nature of Business: Importer, Distributor and OEM
Packing Service.
Products/ Services:Import and distribute Organic
Grain & Seeds such as Chia Seeds, Quinoa, Rolled Oat,
Mung Bean, Red Bean, Cocoa Powder, Peanut, Almond,
Walnut, and other natural nuts.
Company Background :
Capmax Trading Co., Ltd. is one of the leading organic
grain and seed importer and distributor. Organic product
supply by Capmax Trading Co., Ltd. is certified by USDA, EU
Organic from CERES (Certification of
Environmental Standards GmbH) which will be gone
thru yearly
inspection by CERES Germany.
We are also providing OEM service to Thailand modern
trade such as The mall Group, Lemon Farm Organic Chain,
Tops Supermarket.
08 MTCC NEWS July 2021
| NEW MEMBERS
AAA QUANTUM CO., LTD
Address: 198/29 Golden Neo Onnut 65, Prawet, Bangkok
10250 Tel: (+66) 2-291-7738
E-mail: samhocheemeng@gmail.com
Website: http://www.worlddgt.com/
Chamber Representative : Mr. Chee Meng (Sam) Ho
Accolade Corporation Co., Ltd.
Address: 4th Floor 99/19 Sukhothai Road, Dusit, Bangkok
10300 Tel: +66 2-011-0888
Email: por@accoladelifecenter.com
Website: https://www.accoladelifecenter.com/
Chamber Representative: Mr. Jin How Por
Address:1st Floor, 109 Chalermprakiat , Bangkok
10250 Tel: +66 97-924-3695
E-mail: kinson.hoshino@gmail.com
BOBA TRINITY CO., LTD
Chamber Representative : Mr.Kinson Chong Yee Hing
09 MTCC NEWS July 2021
By Favor Woodpanel (Thailand) Co., Ltd.
| MEMBER’S SPOTLIGHT
Favor Woodpanel (Thailand) Co.,Ltd.
Chamber Representative:
Mr. Eugene Teo - Director
Nature of business:
Importation and distribution of wood panel products within Thailand
Products/ Services:
Various types of Wood panel products such as Plywood, MDF
and Particleboard.
Background Company:
Favor Woodpanel (Thailand) Co Ltd is involved in the importation
and distribution of wood panel products such as Plywood, MDF
and Particleboard within Thailand. We serve a wide range of
customers including dealers, contractors, packaging companies,
furniture companies, etc. Our strength lies in the source of supplies
from various part of the world and our ability to understand
and match customers’ requirements with suitable wood panel
products.
We are part of Dominant Enterprise Berhad, a Malaysian based
company with years of experience in importation, distribution of
wood panel products. It is also the leading company in Malaysia
that produces laminated wood panels, primed density fiberboard
Contact information:
Address: 15 Bangkhuntein-Chaytalay
Road,
Samae Dam Bangkhuntein,
Bangkok 10150 Thailand.
Phone: 02 894 1545
Fax: 02 894 1546
Email:
debgroup@dominant.com.my
Website:
www.dominant.com.my
10 MTCC NEWS July 2021
By Bluguard Global (Thailand) Co., Ltd
| MEMBER’S SPOTLIGHT
Video Surveillance alone is not enough for security
In many cases, building owners tend to install video surveillance to monitor
activities on their premises. Even with rapid technological advancements,
it does not stop the crime rates from increasing.
At Bluguard, we strongly believe that prevention is always better then
cure. Just like the misconception between intrusion alarm with smarthome
system over video surveillance system, people always think that
CCTV would solve their problems even though the footage can only be
used after the crime has been committed, but intrusion alarm with smarthome
systems can prevent the crime from happening or worsening in the
first place.
The advantages for intrusion alarm and smarthome systems are that if
someone tries to break into your property, it will trigger the alarm, providing
you and your family or organization with an instant notification via the
mobile app. You can request help by alerting your family members or
organization by pushing the emergency buttons, both physical or via the
mobile app. You are also able to connect with the security monitoring
center, depending on the system design applied. As for smarthome
systems, you can save tremendous amount of energy as it is aimed at
controlling your properties such as lights, air-conditioners, motorised
curtains, digital door locks and other home appliances by your fingertips,
anywhere and anytime.
Since Bluguard establishment in Thailand two years ago, we are able to
supply multiple projects such as residential projects (URBAN, KUNALAI,
PRINSIRI, PROPERTY PERFECT) and multiple site projects (Perfect
Park / Perfect Place), and many more. As for commercial projects, we
recently secured a Government Housing Bank project on its nationwide
branches in Thailand.
Protect your properties and love ones with Bluguard product and
solution.
For more inquiries:
Line: @bluguardglobal
Website: www.bluguardglobal.com
11 MTCC NEWS July 2021
| MEMBER’S SPOTLIGHT
Boba Trinity Co., Ltd.
celebrates the opening of
new Xing Fu Tang outlet
MTCC wishes to congratulate MTCC member, Boba
Trinity Co., Ltd., on the soft-opening of their latest
Xing Fu Tang outlet in Yaowarat, Chinatown Bangkok
on July 3, 2021 and July 4, 2021. Boba Trinity Co.,
Ltd. is the master franchisee of Xing Fu Tang, a popular
bubble tea chain originating from Taiwan which
has been dubbed Taiwan’s No. 1 brown sugar boba
tea. To date, there are four Xing Fu Tang outlets in
Bangkok, located in Central World (7th Floor),
Emquartier (7th Floor, Helix), IconSiam (Level UG,
Takashimaya), and Yaowarat Chinatown (364-330
Yaowarat Road). Over 1,400 cups of boba tea were
sold during the soft-opening of the Yaowarat branch!
Interested members can visit the official Facebook
page at https://www.facebook.com/xft.thai/.
MTCC Director Named as
WTR Global Leader 2021
MTCC is pleased to share that MTCC Director, Sher
Hann Chua has been named a Global Leader 2021
by the World Trademark Review (WTR) for the
second consecutive year. WTR Global Leaders
draws on WTR’s market-leading research projects,
i.e. the WTR 1000 and the WTR 300 to “identify the
best of the best in trademark practice”. Individuals
named as Global Leaders must first be ranked in the
gold tier of the WTR 1000, which identifies leading
lawyers from more than 80 key jurisdictions in the
world. For more information, please visit
www.worldtrademarkreview.com.
12 MTCC NEWS July 2021
| MEMBER’S PROFILE
Prinsiptek Thai Limited
Address: 11/4 T
iamruammit Road ,Huay Khwang Sub district,Huay
Khwang District , Bangkok 10310 Thailand
Tel: +66 2-180-5236
Fax: +66 2-645-2006
Email:
prinsiptek@prinsiptek.com,cjfoo@prinsiptek.com,
cslai@prinsiptek.com
Website: www.prinsiptek.com
Chamber Representative:
Dato’ Foo Chu Jong- Managing Director
Nature of Business:
Construction and Property Development
Company Background :
Prinsiptek International Limited and Prinsiptek Thai
Limited are the subsidiary companies of Prinsiptek
Corporation Berhad (“Prinsiptek”). Prinsiptek is a
Malaysia incorporated public company listed on the Main
Board of the Bursa Malay-sia Securities Berhad (the stock
exchange in Malaysia). The Prinsiptek Group
commenced its business in 1990 by its Managing
Director, Dato’ Foo Chu Jong. The Group principal activities
are mainly construction and property development.
PCS Security and Facility Services Ltd.
Address: 234 Soi Sukhumvit 101 (Punnavithi) Sukhumvit
Rd., Bangchak, Prakhanong, Bangkok 10260, Thailand
Tel: +66 2 741 8800/ 1290 (Call Centre)
+66 3 7784 1396 (Malaysia Office)
Fax : +66 2 741 8062-3
Email: customer@pcs.co.th
Website: www.pcs.co.th
Chamber Representative: Mr. Harjeet Drubra - CFO
Nature of Business: Integrated Facilities
Management
Company Background :
PCS Security and Facility Services Ltd., also known as PCS,
was established in 1967. We have developed our wealth of
expertise in Facilities Services in Thailand for 50
years, offering quality services to all types of
properties by our experienced professionals. We
currently have over 5,800 clients that are supported
by our network of 21 branches and more than
30,000 employees.
PCS is proud to be part of the OCS Group. OCS
Group is an international facilities management
solutions provider, based in the United Kingdom.
OCS offers more than 70 services across a diverse
range of sectors with the support of over 87,000
employees worldwide.
13 MTCC NEWS July 2021
| MEMBER’S PROFILE
Prosper & Progress Sdn Bhd
Address: 42-1(1st Floor) Persiaran Bayan
Indah, Bayan Bay, 11900 Penang, Malaysia.
Tel : +604-6434768
Fax : +604-6434766
Email:
daniellim.pnp@gmail.com
Chamber Representative: Mr. Daniel Lim - Director
Nature of Business: International Trading Company
Products/ Services: Import & Export Frozen Poultry,
Beef, Pork, and Seafood
Company Background :
Prosper & Progress Sdn Bhd was started by Daniel Lim.
Our main office is located in Penang, Malaysia. We have
a packing factory in India at GMB Plot No. 24/26 Port
Area, Veraval Gujarat – 362269. Our sources of products
are mostly from Europe country, e.g.: Netherland,
Germany, Spain, Ireland, Ukraine, Hungary, Norway, and
Indiia... We supply both locally and oversea markets.
Address: 20th Floor, 540 Mercury Tower Phloenchit,
Lumphini Pathumwan, Bangkok 10330 Thailand
Tel: +66 (0)2207 3888
Fax : +66 (0) 2207 3816
Email: tim.harney@qigroup.com, tim.harney@qnet.net
Website: www.qigroup.com, www.qnet.net
Chamber Representative:
Mr. JR Mayer – Managing Director
Mr. Timothy J. Harney – Market Planning Manager
Nature of Business: Marketing consultant, Product
developer and import/export
Products/ Services:Telecommunications, lifestyle &
leisure, luxury & collectibles, training and conference
management, property development
Company Background : Welcome to the QI Group of
Compa-nies. We are a multinational conglomerate
comprising a dynamic group of companies with
regional offices in Hong Kong, Singapore and Malaysia
and a wide range of subsidiary companies in nearly 30
countries. The QI Group has six main business lines
diversified into telecommunications, lifestyle &
leisure,luxury& collectibles, training and conference
manage-ment, property development and oflagship, a
global retail & direct sales business.
QI Services (Thailand) Ltd.
The constantly evolving group has also expanded
organically into various new segments through strategic
investments around the world.
Our recent investments have been in the field of
telecommu-nications, television and broadcast media, the
banking indus-try, hotels and resorts, commercial and
retail properties, and entertainment. The Group also has
a highly specialised finan-cial services arm that oversees
investments.
Founded in 1998, the QI Group, is an e-commerce
based conglomerate which encompasses all aspects of
business, using the internet as its modality bringing
products and services from all points of the globe to the
customer wherev-er he or she may be. The Group's
expansion into high-quality interrelated businesses,
products and services has created many new
opportunities for our customers. Our success reflects
the creative, entrepreneurial spirit of a resourceful
multi-cultural team spread across the world, led by an
international board of directors who focus on solid
economic fundamentals and an all-consuming
commitment to custom-ers and partners. To learn more
about us, please explore this site and contact us for any
further information.
14 MTCC NEWS July 2021
| MTCC ACTIVITIES
CanCham Kickstart Party
MTCC Directors and members participated in the CanCham Kickstart Party on 11 March 2021
(Thursday) at 18.00 hrs. at the Mango Tree Surawongse Restaurant.
The event was organized by CanCham Thailand, and was supported by MTCC. All attendees had a
great time together, enjoying the scrumptious food and drinks, along with live music and great company.
WE-Brand Financing for Women-Led Business
On April 27, 2021, MTCC joined the “WE-Brand Financing for Women-Led Business” event, which
was organized by the Thai-Norwegian Chamber of Commerce. This event introduced opportunities
for women to lead businesses, and shared information to improve access to finance in Thailand. It
also gave attendees the opportunity to meet the VP of the Thai-Norwegian of Commerce, an
entrepreneur herself, who shared her own experience in this sphere. Attendees also had the
opportunity to hear about ‘Connecting Founders’, a Bangkok-based advisory firm supporting
women-led businesses to attract capital and strategic partners across all stages of growth, and to
receive advice on how to be ‘investment ready’.
15 MTCC NEWS July 2021
| MTCC ACTIVITIES
Webinar on “Experience of a COVID-19 Survivor & Vaccination”
MTCC Directors and members participated in the “Experience of a COVID-19 Survivor &
Vaccination” webinar on May 27, 2021.The purpose of the meeting was to share what actually
happens in the process of COVID-19 care through the experience of Mr. Jen Meckhayai, Executive
Director of the Thai-Canadian Chamber of Commerce who tested positive for COVID -19, and to
address any prevailing misunderstanding of the existing care process in Thailand.Attendees of the
webinar also had the opportunity to hear from frontliners, such as Dr. Nantanit Chiamcharoenvut
(Internal Medicine physician) who explained the medical processes involved.
“Fundraising via Asset-Backed Digital Tokens” Webinar
On July 5, 2021, MTCC organized a cryptocurrency webinar on “Fundraising via Asset-Backed Digital
Tokens – The Thai Perspective”. The discussion was led by two panel speakers, Mr. Kavin Phongpandecha
(Co-Founder & Chief Executive Officer, Bitazza) and Mr. Vinay Ahuja (Partner, Head of Regional
Banking, Finance and Technology Group, DFDL Legal & Tax). Both speakers shared their valuable
insights and experiences from both commercial and legal domains, on new fundraising mechanisms
through the use of asset-backed digital tokens, including the use of tangible assets such as real
estate. The discussion, which was moderated by Woan Na Ng (Member of MTCC Board of Directors),
concluded with an engaging and illuminating Q&A session that was well received by more than 60
registered participants.
16 MTCC NEWS July 2021
| MTCC ACTIVITIES
MTCC Leads Vaccination Drive for Members
In conjunction with the rollout of the nationwide vaccination program, MTCC is proud to share that
we have successfully registered interested MTCC members for vaccination slots at Vimut Hospital
in July 2021. As of July 27, 2021, 100 individuals have received their first dose of the
Astra-Zeneca Covid-19 vaccine via MTCC’s collaboration with Vimut Hospital. MTCC would like
to thank Vimut Hospital, and our friends at the Singapore-Thai Chamber of Commerce for assisting
in the coordination efforts.
17 MTCC NEWS July 2021
| CSR ACTIVITIES
AAPICO Hitech PLC supports the fight against COVID-19 in
Thailand with donation to Thammasat University Hospital
On June 22 2021, AAPICO Hitech Public Listed Company made a donation of 1,000,000 baht to Thammasat
University Hospital to support the fight against Covid-19.This donation is part of AAPICO’s commitment to
support the people and communities where it operates.The third wave of the Covid-19 pandemic has been
escalating and continuously increasing in the region.This funding is used for Covid-19 diagnostics, treatments,
medical supplies, and vaccines by Thammasat University Hospital to support the local community.
| CSR ACTIVITIES
Best Plastics Technology donated to support
COVID-19 fighting measures
MTCC member, Best Plastics Technology donated THB 350,000 to Sirindhorn Hospital Medical Service
Department located at 20 Soi Onnuch 90, Prawet, Bangkok, to support the Department’s COVID-19 tackling
efforts.
Best Plastics Technology Co., Ltd.
Quality Colorants and Additives Leaders Trust!
Dry Colorants and
Masterbatches
Specialty
Compounding
Additives
Color Toll Compounding
www.bestcolorant.com Tel: 02 800 1501
By Mr. Andy Cheah, Managing Director, Country Head of Wholesale Banking, UOB Thailand
| MEMBER’S CORNER
Building back better: Developing smart and sustainable
cities in a post-COVID world
As the world seeks its way out of the COVID-19 pandemic, international communities have started to think
ahead to ensure economic recovery goes hand in hand with efforts to protect the environment. How to build
back better is now a focus of many policymakers and business leaders around the world.
One of their key focus areas is how to accommodate urbanisation through the development of smart cities.
According to the World Bank, around 50 per cent of the world’s population live in towns and cities and this figure
is expected to rise to 68 per cent by 2050.
As people converge in cities for employment opportunities, the United Nations estimates that by 2030, there will
be 43 megacities across the world with a population of more than 10 million. Asia alone is projected to have 30
megacities.
Growing cities and megacities will inevitably face challenges in areas such as waste management, transportation,
energy supply, security and supporting infrastructure, including healthcare and other amenities. For
sustainable and high standards of living, smart city initiatives are critical. They are even more essential in developing
countries and cities where the pace of urbanisation is projected to be the fastest.
Under the Paris Agreement, more than 190 markets have pledged to take action to keep the global temperature
increase to below two degrees Celsius and to limit global warming to 1.5 degrees. Asian countries have also
committed to reducing carbon emission intensity by up to 65 per cent by 2030.
As governments globally work on stabilising their economies from the impact of COVID-19, some have heeded
calls by international agencies such as the International Energy Agency and world leaders to promote a “green”
recovery. Ways to do this include allocating higher investments to renewable energy and energy efficiency,
creating green jobs (such as those in land restoration and revegetation of private and public conservation land)
and building green cities.
In Asia, the Singapore government has put in place the Singapore Green Plan 2030 to strengthen the
city-state’s commitments to climate action and sustainable development. Thailand has also laid out a long-term
direction on sustainable development through its 20-Year National Strategy Framework (2017–2036). One of
the six key strategies is to drive eco-friendly development and growth that aims to promote mutual growth in
terms of economy, environment and quality of life in the country.
In order to achieve these ambitious targets, various Asian governments have introduced incentives such as
green finance funds, tax exemptions, investment subsidies and regulations aimed at promoting sustainable
practices. Thailand is targeting to reduce its greenhouse gas emissions by 20 per cent by 2030 through its
socioeconomic, energy, transport, industrial and waste management development plans.
Driving the development of smart and sustainable cities
We believe smart and sustainable living is possible with the right technology enablers and infrastructure.
For example, over the years, the real estate sector worldwide has been stepping up its response to climate
change and sustainable development through green building construction amid the increasing awareness of
the environmental impact of urbanisation. The advancements in technology have also propelled the progress
in renewable energy, energy efficiency, green transport, sustainable water management, waste management
and treatment, as well as climate change adaptation.
In addition to improving the quality of life, smart and sustainable cities have the potential to offer governments,
companies and citizens cost and time savings. Based on research by McKinsey, in smart cities, commuting time
could be reduced by 15 to 20 per cent, cost of living expenses could fall one to three per cent, greenhouse gas
emission could decline 10 to 15 per cent and water consumption could fall 20 to 30 per cent. There are also
benefits such as lower crime by as much as 40 per cent and greater efficiency and up to 65 per cent in time
saved on interactions with government bodies and healthcare institutions.
Continued page 21 20 MTCC NEWS July 2021
By Mr. Andy Cheah, Managing Director, Country Head of Wholesale Banking, UOB Thailand
| MEMBER’S CORNER
Continued from page 20
UOB is committed to forging a sustainable future and to driving the change through our provision of financial
support. The UOB Smart City Sustainable Finance Framework sets the criteria for companies to obtain green
or sustainability-linked loans, deposits and trade facilities. Aligned with the UN Sustainable Development
Goals, this framework makes sustainable financing more accessible to companies contributing to the creation
of smart and sustainable cities that are effective and efficient.
One key initiative under the UOB Smart City Sustainable Finance Framework is our U-Solar programme, Asia’s
first integrated solar power ecosystem to promote the development and adoption of solar power in ASEAN.
Through U-Solar, UOB provides end-to-end financing solutions, such as cash management and green financing
to solar project developers, as well as end-to-end contract-based financing solutions to engineering,
procurement, construction and commissioning contractors. We also partner these developers and service
providers to offer affordable access to solar power systems and financing to households, industrial and commercial
users.
Companies that are keen to explore opportunities arising the development of smart and sustainable cities can
contact us to find out how UOB can facilitate your journey through UOB’s Sustainable City Solutions.
To find out more about UOB’s Green Building Financing Solutions, please visit:
https://www.uobgroup.com/industry-insights-th/real-estate-hospitality/green-building.page
By Malaysia Airlines Berhad
| MEMBER’S CORNER
Information update as of : 11 Jun 2021
COVID-19: Travel Information
Travel Procedures & Quarantine
Order Entry Requirements
1. Passengers must hold valid MYTravel Pass (MTP)
before entering Malaysia.
2. Undergo COVID-19 screening test upon arrival
(which may take up to 3 hours).
3. All Malaysians and foreigners travelling from overseas
must undergo COVID-19 document check or
testing at the airport's International Entrance before
their connecting flight into Malaysia (within 24 hours).
4. All Malaysians and foreigners travelling from overseas
must undergo mandatory quarantine at designated
quarantine centres at their point of arrival in
Malaysia with a negative RT-PCR taken three (3)
days before departing to Malaysia. Those traveling
into Malaysia without the RT-PCR will undergo mandatory
quarantine.
5. The cost for quarantine that includes COVID 19
screening test, transport, accommodation, meal, and
handling cost as determined by the Malaysian Ministry
of Health are to be borne by passengers. Payment
of any applicable charges are to be made through the
MySafeTravel System accessible on https://safetravel.myeg.com.my/
or the MyQR phone app prior to
their arrival into Malaysia to avoid congestion at the
airport.
6. Passengers are required to install the MySejahtera
application on their phones for contact tracing purposes.
The app is developed by the Government of
Malaysia especially for Malaysians and Non-Malaysians
returning or visiting Malaysia starting from
departure, upon arrival and during the quarantine
period. Passengers may visit https://mysejahtera.malaysia.gov.my
for more information.
7. Family members are advised by the government
not to turn up at the airport as the passengers will be
sent straight to the quarantine centres. Passengers
may contact the National Disaster Management
Agency at +603-8064 2400 or opsroom@nadma.gov-
.my / covid19operation@nadma.gov.my for any
enquiries.
For more information please visit : https://www.malaysiaairlines.com/th/en/advisory/travel-information.html
22 MTCC NEWS July 2021
By MATRADE BANGKOK
| MEMBER’S CORNER
MEDICAL DEVICES
Malaysia’s medical devices manufacturers and suppliers
continue to innovate and improve their products in a
highly challenging global business environment.
With its overriding philosophy of seeking to make tomorrow
a healthier one for all, Malaysia’s medical devices
industry has seen tremendous growth in the design and
manufacture of world class products. The sector benefits
from the support of the country’s strong ecosystem in the
semi-conductor, machinery & equipment, electrical &
electronics, metal stamping and plastics industries, which
provide the necessary environment to make it an ideal
manufacturing location for medical devices.
In 2020, Malaysia’s export of medical devices saw double-digit
growth valued at RM29.99 billion or USD7.16
billion. Over 90% of medical devices manufactured in
Malaysia are exported to its top ten export destinations:
the USA, Germany, Singapore, Japan, Belgium, China,
Netherlands, Brazil, UK and Australia. These countries
account for more than 70% of the total exports of medical
devices.
Malaysia’s position as the world’s largest producer and
exporter of rubber gloves has been a decades long
endeavour to produce the very best quality medical
gloves and it currently accounts for 60% of the world’s
market. This undertaking towards excellence has paid
dividends, allowing the country to expand into other areas
of medical consumables including a variety of other quality
medical products such as appliances and apparatus,
syringes, sutures, needles, catheters, pace makers and
others. Malaysia currently accounts for 80% of the world’s
catheter supplies.
This vibrant and highly innovative sector also supplies
higher value-added and technologically advanced products
such as cardiac pacemakers, stents, orthopaedic
implantable devices, electro-medical, therapeutic and
monitoring devices as well as rapid diagnostic test kits.
Malaysian companies are currently also producing
capnography items, a highly indispensable component of
anaesthesia and intensive care monitoring procedures.
As Malaysia moves towards Industry 4.0, its companies
are increasingly undertaking Research & Development
especially in incorporating robotics, automation, integrated
processes and IoT into their manufacturing processes.
This has resulted in accelerating the pace of innovation
and revolutionising product development, manufacturing
processes and business models.
The production of medical devices in Malaysia is
highly regulated by the Medical Devices Authority
(MDA), a body under the Ministry of Health that is
tasked with ensuring that all medical products from
Malaysia adhere to international standards as well as
global regulatory compliance systems. This has seen
its products receive the recognition of various quality
standards including the Food and Drug Administration
(United States), CE certification (Europe) and Department
Of Health (United Kingdom).
MATRADE has been providing assistance by way of
ensuring Malaysian companies’ participation in global
trade exhibitions such as Arab Health and Europe’s
Medica. It has also been conducting extensive virtual
meetings during this period of restricted movement
via its eBizMatch programme between Malaysian
suppliers and potential buyers from the USA, United
Kingdom, The Netherlands, UAE, South Africa, Hong
Kong and Australia. Recent sales have included
rubber gloves, personal protective equipment (PPE),
facemasks, syringes, catheters and sutures.
The tagline, “Choose Malaysia”, carries with it a
wealth of experience and a commitment to excellence
in the production and manufacture of outstanding
products in a variety of medical devices and supplies.
Contact MATRADE Bangkok to find the ideal Malaysian
supplier to suit your needs and for more information,
please contact:
Trade Commissioner
Mr Norman Dzulkarnain Nasri
Embassy of Malaysia
Commercial and Investment Office
4th Floor, Unit 401, Sathorn Square Office Tower,
98 North Sathorn Road, Khwaeng Silom, Khet Bang
Rak,
Krung Thep Maha Nakhon, 10500 Bangkok,
Thailand
Telephone : +66 2108 1792 / 93 / 94
Email : bangkok@matrade.gov.my
Issued by Malaysia External Trade Development
Corporation (MATRADE)
For more information about MATRADE, please visit
www.matrade.gov.my.
The production of medical devices in Malaysia is highly
regulated by the Medical Devices Authority (MDA), a body
under the Ministry of Health that is tasked with ensuring
that all medical products from Malaysia adhere to international
standards as well as global regulatory compliance
systems. This has seen its products receive the recognition
of various quality standards including the Food and
Drug Administration (United States), CE certification
(Europe) and Department Of Health (United Kingdom).
Continued page 24
23 MTCC NEWS July 2021
By MATRADE BANGKOK
| MEMBER’S CORNER
Continued from page 23
About MATRADE
The Malaysia External Trade Development Corporation (MA-
TRADE) was established on March 1, 1993 as the external
trade promotion arm of Malaysia's Ministry of International
Trade and Industry (MITI). Its functions are:
● To promote, assist and develop Malaysia's external trade
with particular emphasis on the export of manufactured and
semi-manufactured products and services;
●To formulate and implement export marketing strategies
and trade promotion activities to promote Malaysia's export;
● To undertake commercial intelligence and market research
and create a comprehensive database of information for the
improvement and development of Malaysia's trade;
● To organise training programmes to improve the international
marketing skills of Malaysian exporters;
● To enhance and protect Malaysia's international trade
investment abroad; and
● To promote, facilitate and assist in the services areas related
to trade.
23 MTCC NEWS July 2021
NAVIGATING THE FINTECH REVOLUTION IN THAILAND
| MEMBER’S CORNER
The Thai financial services sector remains heavily regulated
and still subject to various licensing, registration, notification or
approval requirements. These include: e-payment licenses,
securities licenses, lending licenses, banking licenses, credit
card business licenses, foreign exchange licenses, money
transfer licenses and peer-to-peer lending platform and crowdfunding
platform licenses.
In addition to the licensing/approval requirements, participants
in the financial services sector are subject to regulatory compliance
in terms of ensuring minimum IT security systems, data
and consumer protection, anti-money laundering safeguards,
exchange controls.
THAILAND’S FINTECH HORIZON
Thailand 4.0 is a much-publicized national policy that lays the
foundations of the country’s innovation and technology development
strategy. In line with plans to create a ’digital economy’,
the Digital Economy Promotion Agency (DEPA) is tasked with
steering digital transformation by engaging both public and
private bodies alike.
The Thai Government continues to take active steps to ensure
that Thailand remains an attractive destination for fintech participants
through the use of regulatory and non-regulatory
approaches. Regulatory support for fintech has continued to
grow in Thailand, with several new pieces of legislation having
been passed. Fintech development has seen four areas of
growth: (1) Digital Payments (2) Insurance (3) Lending and
Deposits and (4) Investment. We discuss Thailand’s responses
to date which aim to facilitate the growth of fintech in the country
and encourage overseas investment into Thailand.
THAILAND’S FINTECH SANDBOXES
Thailand was among the first countries in the world to introduce
regulatory sandboxes, three of which were under the auspices
of Thailand’s most prominent financial regulators, the Bank of
Thailand (“BOT”), the Securities and Exchange Commission
(“SEC”) and the Office of Insurance Commission; with the fourth
being initiated and supported by the Thai Fintech Association.
In keeping with the spirit of learning and adapting that should be
the defining characteristics of any sandbox, the BOT issued a
new set of guidelines in 2019 which repealed those issued in
2016 by developing on the lessons learnt and feedback
received from the industry incumbents. Of particular note are
the types of sandboxes that are permitted under the new rules,
i.e. the traditional regulatory sandbox and what is commonly
referred to as ‘own sandbox’ where the former supports trials of
‘never before’ seen innovations whereas the latter applies the
testing of new iterations of existing financial services. ‘Own
sandboxes’ are subject to periodic reporting to BOT as opposed
to direct supervision in a regulatory sandbox.
Technologies being developed under the BOT sandbox include
identification verification implementing the National Digital Identity
(“NDID”) for bank account opening, biometric recognition
and the furtherance of the blockchain use case for letters of
credit and international payments. QR code payments have
matured beyond the phase of experimentation into what is now
covered by the Standardized Thai QR Code for Payment Transaction
Policy Guidelines.
By DFDL (Thailand) Limited
Similarly, SEC regulatory sandboxes now cater specifically to
the digitalization of securities and derivative businesses and
their processes such as clearing houses, depositories and
registrars and the continuous evolution of KYC procedures.
A natural corollary to the implementation of the NDID for bank
account opening would be the launch and issuance of digital
bank licenses.
Since the formal issuance of regulation relevant to mobile and
internet banking in 2018, certain banking products and services
of commercial banks were given autonomy in the sense that
prior BOT approval was no longer a prerequisite. The planned
launch of digital bank licenses edges closer to reality despite
the cutthroat competition and natural disruption this would
naturally entail. However, given that fintech is premised on
financial inclusion and if Thailand is to keep pace with its regulatory
peers in Singapore, South Korea, Japan, Hong Kong and
China, the BOT would do well to take the lead in the market
sooner rather than later.
The writing is on the wall with a large number of brick-and-mortar
bank branches having been shut down and reliance on
physical banking transactions being gradually phased out over
the past decade. However, as identified by the outgoing BOT
governor, Veerathai Santiprabhob, ‘3 key pillars are needed to
build digital banks: data from non-financial sources, an
electronic identification system, and a suitable regulatory
framework’, Thailand must establish an internationally comparable
standard in this regard. On two fronts, i.e. personal data
protection and NDID, matters appear to be pressing forward.
For the third pillar, a regulatory framework could be the priority
for the next BOT governor, especially in the context of sharply
reduced physical banking transactions given the disruption
being caused by the COVID-19 pandemic.
PEER-TO-PEER LENDING
2019 was an eventful year for the peer-to-peer (“P2P”) lending
platform industry with formal regulation by way of the
much-awaited Notification 4/2562 Re: The Determination of
Rules, Procedures, and Conditions for Peer-to-Peer Lending
Businesses and Platforms, which came into effect on 30 April
2019. Among other notable requirements of the Notification,
the P2P lending platform providers’ participation in the BOT
regulatory sandbox for up to a year is compulsory before the
formal license application process can actually begin with the
Ministry of Finance (“MOF”) through the BOT; this would
ensure proper risk management and consumer protection. As
of date, the BOT has allowed three P2P lending platform
providers to launch P2P lending between a limited number of
users in its regulatory sandbox, i.e. DeepSparks Peer Lending
Co., and more recently, Nestifly Co. and Peer Power Platform
Co.
The Notification defining a ‘borrower’ only as an individual has
unfortunately left the playing field for platform-based corporate
P2P lending noticeably unregulated. Whether this was a deliberate
omission or a ‘wait-and see’ regulatory approach on the
part of the MOF and BOT (given the industry’s relative
newcomer status) remains to be seen. It also remains to be
determined as to whether platform-based corporate P2P lending
will be regulated in the future.
Continued page 26 25 MTCC NEWS July 2021
NAVIGATING THE FINTECH REVOLUTION IN THAILAND
| MEMBER’S CORNER
By DFDL (Thailand) Limited
Continued from page 25
CROWDFUNDING
2019 also saw crowdfunding activities being regulated in Thailand by the SEC pursuant to the SEC Notification Tor Jor. 21/2562 Re: The
Offering of Securities for Sale through Crowdfunding Portals, thereby presenting fintech enabled fundraising for startups and SMEs at the
grass roots level. Pursuant to the Notification, crowdfunding portals or platforms are defined as websites or mobile applications or other
electronic media developed and deployed for the offer of securities, being crowdfunding shares and debentures.
In early 2020, we see a relaxation of rules in respect of ‘debenture crowdfunding’ whereby debenture issuers are no longer required to cancel
their offering if they do not reach 100% of their target project values. An issuer can raise up to 80% of its fund goals and can disclose information
to investors for pushing through with the offering. As compared to the previous ‘all or nothing’ rule, i.e. where issuers are required to fully
meet the targeted fundraising amount failing which such projects are to be nullified, this updated policy is regarded by many as a good indicator
that the SEC is embracing the realities of the current business environment.
Further validation by the SEC on crowdfunding exercise was also seen in February 2021, where SME debenture crowdfunding licenses were
granted to both Siam Validus (a joint venture between foreign fintech firm Validus and Thai retail and distribution company SCG Distribution)
and Funding Societies. Such step has provided Thai entrepreneurs and SMEs with an accessible and intelligent platform to access capital
via debt crowdfunding, thus affording them with more confident in their growth and contribution to Thailand’s economy.
DIGITAL ASSETS
The evolving digital assets regulatory landscape was also seen in 2020 and 2021. In Thailand, digital assets comprise two classes of assets
namely: cryptocurrency and digital tokens. A cryptocurrency can be deemed as a digital token in the case where the issuer intends to raise
funds from the public, and if the cryptocurrency: (a) determines the right of an investor to invest in any particular project or business; or (b)
determines the right to receive specific goods, services or any other right as agreed between parties.
The SEC periodically issues list of approved cryptocurrencies. As of June 2021, the recognized form of cryptocurrency in Thailand that an
offeror of digital tokens or a digital asset business operator, can accept as consideration for transactions are Bitcoin (BTC), Ethereum (ETH),
Riple (XRP) and Stellar (XLM).
Essentially, the Digital Asset Decree mainly governs two aspects of regulated activities: (1) offering of digital tokens to the public, commonly
known as an initial coin offering (“ICO”); and (2) operation of digital asset businesses.
To offer the digital tokens to the public, the issuer must (1) have the specified qualifications; (2) obtain an approval from the SEC; and (3) file
a registration statement for the offering of digital tokens and the draft prospectus to the SEC. Such offering must be done through the
approved ICO portal.
The SEC also provides a private placement regime for the offering of digital tokens to certain groups of investors, i.e. offering to only qualified
investors, or offering to only a limited amount of investors, or offering only up to a limited offering size within a specified timeframe, in which
a deemed approval would be granted from the SEC and the offeror would thereby be exempted from filing a registration statement and
prospectus with the SEC.
In 2021, the SEC has issued a set of new regulations governing digital token offerings that refer to, or for which the cash flow comes from,
real estate, i.e. real-estate backed tokens. The key requirement remains that the amount or value of the investment in real estate must not
be less than 80% of the project’s amount or value, or the aggregate value of the real estate to be invested must not be less than THB 500
million.
Generally, all digital asset business operators are subject to licensing and regulatory requirements. However, there are three specific scenarios
where operators could be eligible for certain regulatory exemptions:
Business operations by the BOT which could be considered as digital asset businesses, provided that the digital assets are issued and
processed by the BOT.
Business operations by an exchange, broker, or dealer offering digital token exchange services, provided that: (1) the exchange is done
solely for the same types of digital token; and (2) such digital tokens are utility tokens (or other digital tokens that entitle the holder to receive
the right from utility tokens), which the underlying products or services must be ready-to-use as of the date of the offering.
Digital asset broker or dealer who provides sale or purchase services only for digital assets whose value has been pegged against the THB
at a fixed exchange rate and has a clear mechanism to fix such value. The sale or purchase of digital assets must be done in exchange for
THB at the specified set value, and any payments must be made through a financial institution recognized under the anti-money laundering
law.
THAILAND
For more information on the development
and regulatory compliance in respect of
fintech landscape in Thailand, please contact:
26 MTCC NEWS July 2021
By Mr. Jason JS Lee
| MEMBER’S CORNER
THE RISE OF THE SUSTAINABILITY AND ESG AGENDA IN ASIA
more likely to attract customer loyalty and new
customer segments. There is also a link on the B2B
side where large companies are seeking to channel
ESG through their value chain. Suppliers to the
world’s largest retailers, for example, are expected to
have strong sustainability proposition on plastics,
water use, etc.
2. Cost
If an organization is more resource- and water-efficient,
and has less packaging, for example, it will
generally have a lower unit-cost structure.
The Environmental, Social and Governance (ESG) or
Sustainability agenda continues to become more and
more mainstream and is playing an increasingly dominant
role in business decisions and policy developments
around the world, particularly during the past five
years. ESG issues link together the idea that the environment,
social factors and good governance, materially
affect an organization’s presence in the world.
J.P. Morgan reported in mid-2020 that the broadly
defined ESG market – assets following global sustainable
investment approaches, is estimated to reach
USD45-trillion AUM by the end of 2020. For comparison,
the total market capitalisation of securities listed in
Bursa Malaysia is only around USD430-billion
(RM1.7-trillion) by November 2020. In terms of good
ESG and Sustainability performance converting to
good financial outcomes, there have been more than
two thousand studies, of which 70-percent of them
have found a positive relationship between ESG scores
and financial returns, whether measured by equity
returns, profitability or valuation multiples.
Evidence is also emerging that better ESG and Sustainability
scores may lead to about a 10-percent lower
cost of capital, as the risks that affect businesses in
terms of its license to operate are reduced if there is
strong ESG and Sustainability proposition. At the
recent European 2020 M&A Conference in London,
experts from McKinsey revealed five sources of fundamental
business value, after looking at the reasons
behind the relationship between ESG performance and
financial outcomes, that leads to the roughly 10-percent
advantage in cost of capital.
Here are the five sources of fundamental business
values that were identified:
1. Top-line growth
There is evidence that brands with more sustainable
impact grow faster than brands that have a less
sustainable proposition. Consumer goods companies
with a stronger sustainability proposition are-
3. Regulatory relationships
Being more responsible about an assets’ environmental
footprint, the chances of adverse or punitive
regulatory outcome are lower.
4. Talent
New recruits and millennials demand purposeful
work. Employers that can meet that need will attract
and retain talent and likely higher productivity in the
workplace. Evidence suggests that this is worth
roughly 2 percent of stock price each year.
5. Investment Optimization
There are downside risks of holding potential stranded
assets. For example, coal assets and oil tankers
have seen significant write-downs in recent years, in
contrast with the enormous opportunities in ESG-related
investments, such as technology that could
improve air quality.
Regulators and policy makers are also taking on an
increasing interest in ESG and Sustainability concerns
because they hope that the business sector
could work together to resolve urgent issues that
include climate change, human rights, inclusion and
diversity, and corruption
Governments, financial market regulators and stock
exchanges continue to drive the sustainability and
ESG agenda. The number of ESG and Sustainability
provisions issued by governmental bodies is reported
to have grown by 74% since 2016. Financial market
regulators, stock exchanges and industry bodies, on
the other hand, are more active in issuing codes,
guidance, standards, self-regulatory requirements
and questionnaires.
From a global overview, Asia is now an up and
coming space for ESG and Sustainability. It is now a
close follower of Europe in terms of the volume of
reporting provision developments.From a global
overview, Asia is now an up and coming space for
ESG and Sustainability. It is now a close follower of-
Continued page 28 27 MTCC NEWS July 2021
By Mr. Jason JS Lee
| MEMBER’S CORNER Continued from page 27
reporting provision developments. These developments
include a shift towards mandatory reporting, as
reported by the 2020 edition of Carrots & Sticks that
assesses the regulatory landscape of non-financial
and sustainability reporting. In the Asia Pacific region,
there are now 75 voluntary provisions and 99 mandatory
provisions. This is way ahead of North America
with only 16 voluntary provisions and 31 mandatory
provisions. By 2020, there was a strong surge of
“comply or explain” provisions in Asia.
The majority of reporting provisions target specifically
large and listed companies, whereby many stock
exchanges in the region have established and published
ESG reporting guidelines. Most exchanges in
Asia are now members of the Sustainable Stock
Exchanges (SSE) initiative.
The SSE initiative is a United Nations partnership
programme to provide “a global platform for exploring
how exchanges, in collaboration with investors, companies
(issuers), regulators, policymakers and relevant
international organizations, can enhance performance
on ESG issues and encourage sustainable
investment, including the financing of the UN Sustainable
Development Goals.”
Here are Asian stock exchanges participating in the
SSE initiative, that have both ESG reporting requirements
as a listing rule, and written guidance on ESG
reporting:
1.China: Hong Kong Exchanges and Clearing Limited
• Issuers must publish their ESG reports on an annual
basis and regarding the same period covered in their
annual reports. Reporting requirements can be found
in the related Main Board Listing Rules and the ESG
Reporting Guide, Appendix 27 to the Main Board
Listing Rules.
• Effective on 1 July 2020, the changes to the ESG
Reporting Guide focus on the board’s leadership role
and accountability in ESG and the governance structure
for ESG matters.
• The revised ESG Reporting Guide comprises two
levels of disclosure obligations: (a) mandatory disclosure
requirements; and (b) “comply or explain” provisions.
Issuers must disclose the information required
under the “Mandatory Disclosure Requirements”; and
if the issuer does not report on one or more of the -
“comply or explain” provisions, it must provide considered
reasons in its ESG report.
2. India: Bombay Stock Exchange
• BSE signed Memorandum of Understanding with
GRI for creating awareness amongst companies and
investors regarding ESG Disclosures
•BSE–Carbon Disclosure Project (CDP) initiative.
BSE signed Memorandum of Understanding with
CDP India to jointly carry out activities for creating
awareness about filing sustainability/ESG data with
CDP. CDP India is actively in touch with Top 200
(BSE-200 constituents) companies to encourage
them to report non-financial data. The data received
from CDP will be used for the calculations of S&P
BSE Carbonex.
3. Indonesia: Indonesia Stock Exchange
• Sustainability reporting is required under Indonesia
Financial Services Authority (Otoritas Jasa Keuangan)
rule number 51/POJK.03/2017: Implementation
of Sustainability Finance for Financial Services Institutions,
Issuers and Public Companies.
• All listed companies are required to publish Sustainability
Reporting starting from:
o Banking Corporations (from 2019)
o Listed Companies (from 2020)
4. Malaysia: Bursa Malaysia
• In October 2015, Bursa Malaysia issued amendments
to the Main Market Listing Requirements
(“Main LR”) and ACE Market Listing Requirements
(“ACE LR”) (collectively referred to as the “LR”) relating
to sustainability statements in annual reports
(“Sustainability Amendments”).
• Under the Sustainability Amendments, listed issuers
are required to disclose a narrative statement of the
management of material economic, environmental
and social (“EES”) risks and opportunities (“Sustainability
Statement”) in their annual reports. This
replaces the existing statement on the corporate
social responsibility (“CSR”) activities or practices
required to be disclosed by listed issuers. For the
Main Market listed issuers, they are also required to
include in their Sustainability Statement, the
prescribed information as set out in Practice Note 9 of
the Main LR such as the governance structure, the
scope of the Sustainability Statement and the management
of material EES risks and opportunities
(“material sustainability matters”). The prescribed
disclosure is not applicable to ACE Market listed
corporations given the type and size of the listed
corporations.
•In addition to the above, the LR also encourages all
listed issuers to refer to the Sustainability Reporting
Guide as a best practice when preparing the Sustainability
Statement and in identifying material sustainability
matters.
Continued page 29 28 MTCC NEWS July 2021
By Mr. Jason JS Lee
| MEMBER’S CORNER Continued from page 28
5. Philippines: Philippine Stock Exchange
• In 2019 the Philippines SEC launched a guidance on
sustainability reporting and announced a penalty for
an “Incomplete Annual Report” for all those companies
that do not submit sustainability information together
with their annual report on a comply or explain basis.
• The Philippines Securities and Exchange Commission
announced in 2019 the requirement of sustainability
reporting on a comply or explain basis for all
listed companies, together with the publication of a
guidance. The guidance is intended to help listed companies
assess and manage non-financial performance
across economic, environmental and social aspects of
their organization and enable listed companies to
measure and monitor their contributions towards
achieving universal targets of sustainability, such as
the UN’s Sustainable Development Goals as well as
national policies and programs, such as AmBisyon
Natin 2040.
6. Singapore: Singapore Exchange
• Sustainability reporting is introduced on a “comply or
explain” basis.
• Guide to Sustainability Reporting for Listed Companies.
• Sustainability reporting portal on SGX website containing
resources relating to sustainability reporting,
including materials contributed by sustainability consultants,
information on sustainability workshops and
global reporting frameworks.
• An Investor’s Guide to Reading Sustainability
Repots.
7. Thailand: Stock Exchange of Thailand
• The Securities and Exchange Commission mandates
sustainability reporting. Refer to SEC’s Sustainability
Development Road Map for Listed Companies,
May 2014.
• Guidelines for Sustainability Reporting released in
2010.
• Apart from the publications, SET has produced
newsletter ‘SD Focus’ as key communication channels
between the Exchange and listed companies, to keep
them abreast with the up-and-coming sustainability-related
trends in the global business world.
• In addition, a series of guidance documents and
manuals can be found on SET’s Social Responsibility
Center and Corporate Governance Center.
• In January 2021, Thailand SEC (Securities and
Exchange Commission) has announced it has
become an official supporter of the TCFD (Task Force
on Climate-Related Financial Disclosures). The SEC
says it wants to raise awareness and encourage businesses
to incorporate climate-related risks into their
strategic planning and risk management, and follow
international disclosure guidelines.
This will enhance the Thai capital market’s capacity
for contributing to sustainable development in accordance
with Thailand’s 20-year strategy, and the move
towards the UN SDGs, the SEC said.
8. Viet Nam – Hanoi Stock Exchange (Parent Organization)
• HNX published Guidance on ESG Disclosure for
listed companies in 2016 in accordance with sustainability
reporting requirements by Circular
155/2015/TT-BTC dated October 6, 2015 on guidelines
for information disclosure on securities market.
9. Viet Nam – Ho Chi Minh Stock Exchange (Subsidiary
Organization)
• Circular 155/2015/TT-BTC (dated 06/10/2015) on
guidelines for information disclosure on securities
market.
• The SSC, in cooperation with the IFC, published an
Environmental and Social Disclosure Guide in 2016.
As the sustainability and ESG agenda becomes more
and more mainstream in Asia, business executives
and investment professionals continue to recognize
that ESG issues affect companies’ performances,
compliance to different rules and regulations, and
‘license to operate’.
And as expectations and scrutiny from governments,
regulators, investors, consumers, employees and
other stakeholders continue to grow, taking action in
ESG and Sustainability areas may very well help
Asian companies navigate the rising pressure from
stakeholders and distinguish themselves from less
sustainable competitors.
Mr. Jason JS Lee
Jason JS Lee is a Certified Sustainability Profession
al who specializes in helping companies achieve
their ESG/Sustainability goals and performances in
accordance with GRI, TCFD, GHG Protocols, UNGC,
and UN-SDG standards and frameworks. He is an
active consultant for medium- and listed-companies
for their strategic ESG/Sustainability management
and reporting, and Industry 4.0 Transformation
road-mapping and implementation. He has
just relocated to Thailand, and is a member of the
Malaysia Thai Chamber of Commerce.
29 MTCC NEWS July 2021
By RHB BANK BERHAD
| ECONOMIC REVIEW
Global Economics & Market Strategy
Thailand: Inflation Pressure will Ease in June onwards
♦We maintain our 2021 CPI inflation forecast of 1.3% versus the Bloomberg consensus estimate of 1.2%,
supported by the rising oil prices and low base effect.
♦The May 2021 CPI printed 2.4% YoY versus the Bloomberg consensus estimate of 3.3% and April’s
increase of 3.4%. The moderation is due to the reintroduction of government utility subsidies.
♦We expect Bank of Thailand (BoT) to keep its policy interest rate unchanged at a record low of 0.5% for
the rest of 2021 as the economic recovery remains highly uncertain amidst the resurgence of COVID-19.
Figure 1: BoT to keep Policy Rate unchanged Figure 2: CPI moves in line with higher oil prices
% YoY
4
2
0
-2
CPI
Core CPI
Policy Interest Rate (RHS)
-4
0
2016 2017 2018 2019 2020 2021
2
1.5
1
0.5
%
% YoY
CPI Retail Oil Price [RHS]
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
2017 2018 2019 2020 2021
% YoY
60.0
40.0
20.0
0.0
-20.0
-40.0
-60.0
Source: CEIC, Bureau of Trade and Economic Indices, RHB Economics & Market
Strategy
Economist: Toh Kian Hin, +603 9280 2172, toh.kian.hin@rhbgroup.com
CPI Will Continue to Moderate in June onwards
Source: CEIC, Bureau of Trade and Economic Indices RHB Economics & Market
Strategy
We maintain our 2021 CPI inflation forecast of 1.3% versus the Bloomberg consensus estimate of
1.2%, supported by the rising oil prices and low base effect.
The higher average oil price in 2021 as compared to in 2020 will support the increase in consumer
prices. We expect brent crude oil to average at USD60 per barrel in 2021, which is 38.9% higher than the
average price of brent crude oil recorded in 2020. Recently, the brent crude oil has just surpassed the
USD70 per barrel level, which is higher than the average of USD68.30 per barrel recorded during May 2021.
The sustained strength of the oil prices as well as other commodity prices will keep prices higher.
The low base effect from 2020 will also support the increase in prices. CPI printed a decline of -0.84%
YoY in 2020 amidst the lockdown to contain the spread of COVID-19 infections at the start of the pandemic
last year. While there have been a resurgence of COVID-19 infections in Thailand and other countries in the
region, the rapid vaccination progress in countries such as the United States, United Kingdom, Europe and
China, have helped to drive the recovery of demand. This has led to a higher factory prices in China, which
will support inflation growth this year. In Thailand, we have seen restrictions being reintroduced amidst the
rising COVID-19 cases recently. However, the restrictions imposed are still not as bad as what we have
seen in 2020 and with the country pushing forward with its vaccination plan, we expect this to support the
gradual reopening of the country.
The May 2021 CPI printed 2.4% YoY versus the Bloomberg consensus estimate of 3.3% and April’s
increase of 3.4%. The moderation is due to the reintroduction of government utility subsidies. While CPI
rose for a second consecutive month, the increase was lower than expectations as the government reintroduced
the utility subsidy in May following the resurgence of COVID-19 infections. It was still higher than the
mid-range of the Bank of Thailand’s 1% to 3% inflation target. The energy prices remain as the main driver
of the inflation growth as seen by the 24.79% YoY increase during the month. Aside from that, food prices
also saw an increase of 0.13% YoY in May 2021 although the pace of increase was lower than the 0.4%
recorded in April 2021.
See important disclosures at the end of this report
Market Dateline / PP 19489/05/2019 (035080)
Continued page 31 30 MTCC NEWS July 2021
By RHB BANK BERHAD
| ECONOMIC REVIEW
Continued from page 30
CPI Will Continue to Moderate in June onwards
Core inflation, which excludes food and energy prices increased 0.49% YoY versus the Bloomberg
consensus estimate of 0.50% and April’s increase of 0.3%. Housing and transportation prices were the
key drivers for the increase during the month. However, core CPI has slowed as compared to a month ago,
mainly due to the subsidies that were introduced in May as compared to in April.
The restrictions that were reimposed and the resurgence of COVID-19 infections have also dampened consumer
sentiment, which dragged on prices. Given the uncertainties surrounding the prolonged pandemic
amidst a slow progress in vaccination programme and the new wave of COVID-19 outbreak in the region,
we think that the recovery ahead will remain highly uncertain. Coupled with the fact that the low base effect
from last year is most pronounced in May 2020 with a decline of -3.4%, we believe that CPI will moderate in
June onwards.
We expect Bank of Thailand (BoT) to keep its policy interest rate unchanged at a record low of 0.5%
for the rest of 2021 as the economic recovery remains highly uncertain amidst the resurgence of
COVID-19. The risk of a further rate cut however has increased following the resurgence of COVID-19
cases recently that has led the country to reimpose some form of lockdown. Concern over the inflationary
pressure has ebbed as the May’s data come below consensus estimate.
Disclaimer Economics and Market Strategy
This report is prepared for information purposes only by the Economics and Market Strategy division within
RHB Bank Berhad and/or its subsidiaries, related companies and affiliates, as applicable (“RHB”).
All research is based on material compiled from data considered to be reliable at the time of writing, but RHB
does not make any representation or warranty, express or implied, as to its accuracy, completeness or
correctness.
Neither this report, nor any opinion expressed herein, should be construed as an offer to sell or a solicitation
of an offer to acquire any securities or financial instruments mentioned herein. RHB (including its officers,
directors, associates, connected parties, and/or employees) accepts no liability whatsoever for any direct or
consequential loss arising from the use of this report or its contents. This report may not be reproduced,
distributed or published by any recipient for any purpose without prior consent of RHB and RHB (including
its officers, directors, associates, connected parties, and/or employees) accepts no liability whatsoever for
the actions of third parties in this respect.
Recipients are reminded that the financial circumstances surrounding any company or any market covered
in the reports may change since the time of their publication. The contents of this report are also subject to
change without any notification.
This report does not purport to be comprehensive or to contain all the information that a prospective investor
may need in order to make an investment decision. The recipient of this report is making its own independent
assessment and decisions regarding any securities or financial instruments referenced herein. Any
investment discussed or recommended in this report may be unsuitable for an investor depending on the
investor’s specific investment objectives and financial position. The material in this report is general information
intended for recipients who understand the risks of investing in financial instruments. This report does
not take into account whether an investment or course of action and any associated risks are suitable for the
recipient. Any recommendations contained in this report must therefore not be relied upon as investment
advice based on the recipient's personal circumstances. Investors should make their own independent evaluation
of the information contained herein, consider their own investment objective, financial situation and
particular needs and seek their own financial, business, legal, tax and other advice regarding the appropriateness
of investing in any securities or the investment strategies discussed or recommended in this report.
RHB (including its respective directors, associates, connected parties and/or employees) may own or have
positions in securities or financial instruments of the company(ies) covered in this research report or any
securities or financial instruments related thereto, and may from time to time add to, or dispose off, or may
be materially interested in any such securities or financial instruments. Further, RHB does and seeks to do
business with the company(ies) covered in this research report and may from time to time act as market
maker or have assumed an underwriting commitment in securities or financial instruments of such
Continued page 32 31 MTCC NEWS July 2021
By RHB BANK BERHAD
| ECONOMIC REVIEW
Continued from page 31
Disclaimer Economics and Market Strategy
company(ies), may sell them or buy them from customers on a principal basis and may also perform or seek
to perform significant banking, advisory or underwriting services for or relating to such company(ies), as well
as solicit such banking, advisory or other services from any entity mentioned in this research report.
RHB (including its respective directors, associates, connected parties and/or employees) do not accept any
liability, be it directly, indirectly or consequential losses, loss of profits or damages that may arise from any
reliance based on this report or further communication given in relation to this report, including where such
losses, loss of profits or damages are alleged to have arisen due to the contents of such report or communication
being perceived as defamatory in nature.
KUALA LUMPUR
RHB Investment BankBhd
Level 3A, Tower One, RHB
Centre Jalan Tun Razak
Kuala Lumpur 50400
Malaysia
Tel : +603 9280 8888
Fax : +603 9200 2216
BANGKOK
RHB Securities (Thailand) PCL
10th Floor, Sathorn Square Office
Tower 98, North Sathorn Road,
Silom Bangrak, Bangkok 10500
Thailand
Tel: +66 2088 9999
Fax :+66 2088 9799
JAKARTA
PT RHB Sekuritas Indonesia
Revenue Tower, 11th Floor,
District 8 - SCBD Jl. Jendral
Sudirman Kav 52-53 Jakarta
12190 Indonesia
Tel : +6221 509 39 888
Fax : +6221 509 39 777
SINGAPORE
RHB Bank Berhad (Singapore
branch)
90 Cecil Street
#04-00 RHB Bank Building
Singapore 069531
See important disclosures at the end of this report
Market Dateline / PP 19489/05/2019 (035080)
32 MTCC NEWS July 2021
By MATRADE Bangkok
| MEMBER’S CORNER
Talking Point For Embassy Monthly Meeting 6/2021
Summary of Malaysia’s Trade Performance (April 2020/2021)
(Based from Department of Statistic, Malaysia and compiled by MATRADE)
• Malaysia’s Global Trade
(Based from Department of Statistic, Malaysia and compiled by MATRADE)
• Malaysia’s global trade recorded a positive growth of
43.2 percent amounting to RM190.76 billion
(USD46.25 billion) for the period of April 2020/2021.
Total exports increased by 63.0 percent (RM105.6
billion; USD25.61 billion) while imports increased by
24.4 percent (RM85.14 bill; USD20.64 billion) respectively.
(April 2020: RM133.20billion / USD30.58 billion)
Table : Malaysia's External Trade, Annual (From 2015 to April 2021) (World) In RM
Year
TOTAL EXPORTS TOTAL IMPORTS TRADE BALANCE TOTAL TRADE
RM Mil Growth Rate % RM Mil Growth Rate % RM Mil Growth Rate % RM Mil Growth Rate %
2015 777,355.1 0.0 685,778.4 0.0 91,576.6 0.0 1,463,133.5 0.0
2016 786,964.2 1.2 698,818.7 1.9 88,145.5 -3.7 1,485,782.8 1.5
2017 934,926.8 18.8 836,422.2 19.7 98,504.6 11.8 1,771,349.0 19.2
2018 1,003,586.9 7.3 879,804.0 5.2 123,782.9 25.7 1,883,390.9 6.3
2019 995,071.9 -0.8 849,410.8 -3.5 145,661.1 17.7 1,844,482.7 -2.1
• Malaysia’s top trading partner to the world
Country
1. China
2. Singapore
3. USA
4. Japan
5. Taiwan
6. Thailand
Total trade
(RM/USD billion)
RM35.62/ USD8.63
RM23.96/ USD5.81
RM18.26/ USD4.42
RM13.22/ USD3.20
RM9.56/ USD2.31
RM8.12/ USD1.97
Market
Share
18.4%
12.4%
9.7%
7.2%
5.0%
4.6%
As at April 2021
• In term of services sector, Malaysia’s global trade
recorded a negative performance of 34.7%
amounting to RM 231.44 billion (USD57.86 billion)
for the period of January to December 2020. Total
exports decreased by 46.0% (RM91.72 billion;
USD22.93 billion) and imports decreased by
22.7% (RM139.71 billion; USD34.92 billion).
Table : Malaysia's Trade In Services, Annual (From 2014 to December 2020)
2020 980,979.1 -1.4 796,194.1 -6.3 184,785.0 26.9 1,777,173.1 -3.6
2020
(Jan-Apr) 303,470.6 0 270,137.6 0 33,333.0 0 573,608.2 0
2021
(Jan-Apr) 387,810.0 27.8 308,650.8 14.3 79,159.2 137.5 696,460.9 21.4
2021 (Mar) 104,997.6 0 80,794.1 0 24,203.6 0 185,791.7 0
2020 (Apr) 64,786.6 0 68,420.2 0 -3,633.6 0 133,206.9 0
2021 (Apr) 105,619.8 63.0 85,143.7 24.4 20,476.1 663.5 190,763.6 43.2
Table : Malaysia's External Trade, Annual (From 2015 to April 2021)
(World) In USD
Year
TOTAL EXPORTS TOTAL IMPORTS TRADE BALANCE TOTAL TRADE
USD Mil Growth Rate % USD Mil Growth Rate % USD Mil Growth Rate % USD Mil Growth Rate %
2015 199,158.1 0.0 176,011.0 0.0 23,147.1 0.0 375,169.1 0.0
2016 189,658.7 -4.8 168,429.6 -4.3 21,229.1 -8.3 358,088.3 -4.6
2017 217,722.1 14.8 194,749.6 15.6 22,972.5 8.2 412,471.7 15.2
2018 248,675.4 14.2 217,974.4 11.9 30,701.0 33.6 466,649.8 13.1
2019 240,199.3 -3.4 205,007.6 -5.9 35,191.7 14.6 445,206.9 -4.6
2020 233,930.6 -2.6 189,730.2 -7.5 44,200.4 25.6 423,660.7 -4.8
2020
(Jan-Apr) 72,023.2 0 64,010.8 0 8,012.4 0 136,034.1 0
2021
(Jan-Apr) 95,008.0 31.9 75,621.6 18.1 19,386.4 142.0 170,629.6 25.4
2021 (Mar) 25,550.0 0 19,660.3 0 5,889.7 0 45,210.3 0
2020 (Apr) 14,875.4 0 15,709.6 0 -834.3 0 30,585.0 0
2021 (Apr) 25,610.4 72.2 20,645.4 31.4 4,965.0 695.1 46,255.8 51.2
• Major export products to the world
Products
• Electrical and Electronic Products
• Petroleum Products
• Rubber Products
• Palm oil & palm oil based
agriculture products
• Chemical & Chemical Products
• Major import products from the world
Products
• Electrical and Electronic Products
• Petroleum Products
• Chemicals & Chemical Products
• Machinery, Equipments & Parts
• Manufactures of Metal
Total
(RM bill)
36.79
9.92
7.52
5.94
5.42
Total
(RM bill)
24.42
8.97
8.05
5.89
4.68
Total
(USD bill)
8.92
2.40
1.82
1.44
1.31
As at April 2021
Total
(USD bill)
5.92
2.17
1.95
1.42
1.13
EXPORTS (Credit) IMPORTS (Debit) TOTAL TRADE TRADE BALANCE
Year
Change %
Change %
Change % (Net) (+/-) Change %
Value (RM Mil.) Y-o-Y Value (RM Mil.) Y-o-Y Value (RM Mil.) Y-o-Y (RM Mil.) Y-o-Y
2014 137,618.263 148,324.508 285,942.771 -10,706.245
2015 136,095.456 -1.1 156,727.046 5.7 292,822.502 2.4 -20,631.590 -92.7
2016 147,595.660 8.5 166,513.086 6.2 314,108.746 7.3 -18,917.426 8.3
2017 159,383.933 8.0 182,242.632 9.4 341,626.565 8.8 -22,858.699 -20.8
2018 162,374.512 1.9 179,889.445 -1.3 342,263.957 0.2 -17,514.933 23.4
2019 169,813.598 4.6 180,735.431 0.5 350,549.029 2.4 -10,921.833 37.6
2019
(Jan-Dec) 169,813.598 180,735.431 350,549.029 -10,921.833
2020
(Jan-Dec) 91,728.596 -46.0 139,713.905 -22.7 231,442.501 -34.7 -47,985.301 -339.4
2019 41,651.695 8.1 43,321.800 -2.2 84,973.495 2.6 -1,670.105 71.0
2019 41,388.507 3.7 44,821.064 -1.2 86,209.571 1.1 -3,432.557 37.1
2019 44,261.940 6.0 46,076.444 3.5 90,338.384 4.7 -1,814.504 34.2
2019 42,511.456 0.7 46,516.123 1.7 89,027.579 1.2 -4,004.667 -13.0
2020 33,057.086 -20.6 41,009.798 -5.3 74,066.884 -12.8 -7,952.712 -376.2
2020 18,441.857 -55.4 30,906.572 -31.0 49,348.429 -42.8 -12,464.715 -263.1
•Trade Performance between Malaysia and
ASEAN Country
(Based from Department of Statistic, Malaysia and compiled by MATRADE)
Monthly Trade Performance for April 2021
Malaysia’s top trading partner in ASEAN
TOTAL
1. Singapore
2. Thailand
3. Indonesia
4. Vietnam
5. Philippines
Market
Share
47.4%
17.5%
15.2%
11.9%
5.4%
Table : Malaysia's Total Trade By ASEAN Country, Annual
(From 2020 - April 2021) – In RM
Country
REPUBLIC OF SINGAPORE
THAILAND
REPUBLIC OF INDONESIA
SOCIALIST REP. OF VIET NAM
PHILIPPINES
BRUNEI DARUSSALAM
UNION OF MYANMAR
CAMBODIA
PEOPLE'S DEM. REP. LAO
Changes
25.0%
26.4%
11.0%
45.6%
21.8%
2020 2021
March P April P March I April I
RM Mil RM Mil RM Mil % Change RM Mil Change (Value) % Change
39,064.1 30,268.9 47,811.3 22.4 49,852.7 19,583.8 64.7
17,276.6 14,439.6 22,985.0 33.0 23,964.9 9,525.2 66.0
6,106.0 5,185.8 8,554.7 40.1 8,126.3 2,940.5 56.7
8,607.8 5,176.3 6,972.9 -19.0 7,398.8 2,222.5 42.9
3,762.1 3,367.1 6,129.4 62.9 5,831.3 2,464.2 73.2
2,174.0 1,373.3 2,478.3 14.0 2,846.0 1,472.7 107.2
430.8 383.6 292.6 -32.1 1,146.5 762.9 198.9
522.8 224.7 188.2 -64.0 374.2 149.5 66.5
175.3 115.7 199.8 13.9 156.0 40.4 34.9
8.7 2.9 10.3 18.9 8.8 5.9 200.8
As at April 2021
Continued page 34 33 MTCC NEWS July 2021
By MATRADE Bangkok
| MEMBER’S CORNER
Continued from page 33
Table: Malaysia's Total Trade By ASEAN Country, Annual(From 2020 – April 2021) – In USD
Country
TOTAL
REPUBLIC OF SINGAPORE
THAILAND
REPUBLIC OF INDONESIA
SOCIALIST REP. OF VIET NAM
PHILIPPINES
BRUNEI DARUSSALAM
UNION OF MYANMAR
CAMBODIA
PEOPLE'S DEM. REP. LAO
2020 2021
March P April P March I April I
USD Mil USD Mil USD Mil % Change USD Mil Change (Value) % Change
9,092.3 6,949.9 11,634.3 28.0 12,088.1 5,138.25 73.9
4,021.2 3,315.4 5,593.1 39.1 5,810.9 2,495.52 75.3
1,421.2 1,190.7 2,081.7 46.5 1,970.4 779.76 65.5
2,003.5 1,188.5 1,696.8 -15.3 1,794.0 605.53 50.9
875.6 773.1 1,491.5 70.3 1,414.0 640.85 82.9
506.0 315.3 603.1 19.2 690.1 374.78 118.9
100.3 88.1 71.2 -29.0 278.0 189.92 215.6
121.7 51.6 45.8 -62.4 90.7 39.15 75.9
40.8 26.6 48.6 19.1 37.8 11.28 42.5
2.0 0.7 2.5 24.3 2.1 1.47 217.7
Trade Performance between Malaysia and Thailand
(Based from Department of Statistic, Malaysia and compiled by
MATRADE)
• As of April 2021, Thailand was ranked as Malaysia’s:-
o 6th largest trading partner,
o 6th largest export destination and
o 8th largest source of import
o 2nd top trading partner among ASEAN Countries
Bilateral Trade between Malaysia – Thailand (April 2020/2021)
Total trade
• As for Malaysia’s trade with Thailand, total trade recorded an
increase of 56.7% mounting to RM8.12 billion (USD1.97 billion); for
the period of April 2020/2021. (April 2020: RM5.18 billion / USD1.19
billion).
• The monthly trade balance between Malaysia and Thailand has
decreased by 20.6% compared to the same period last year amounting
to negative RM973.7 million (negative USD236.1 million); April
2020: RM1.22 billion / USD281.7 million).
• Total trade in 2020 : RM79.41 billion (USD18.94 billion)
Table : Malaysia's External Trade, Annual (From 2015 to April 2021) (THAILAND) (In RM)
Year
TOTAL EXPORTS TOTAL IMPORTS TRADE BALANCE TOTAL TRADE
RM Mil Growth Rate % RM Mil Growth Rate % RM Mil Growth Rate % RM Mil Growth Rate %
2015 44,387.2 0.0 41,660.1 0.0 2,727.1 0.0 86,047.3 0.0
2016 44,092.4 -0.7 42,328.2 1.6 1,764.2 -35.3 86,420.6 0.4
2017 50,508.0 14.6 48,141.2 13.7 2,366.8 34.2 98,649.3 14.2
2018 57,060.8 13.0 48,623.7 1.0 8,437.1 256.5 105,684.5 7.1
2019 56,318.1 -1.3 44,276.6 -8.9 12,041.6 42.7 100,594.7 -4.8
2020 45,268.8 -19.6 34,148.0 -22.9 11,120.8 -7.6 79,416.8 -21.1
2020
(Jan-Apr) 14,583.3 0 10,532.7 0 4,050.6 0 25,115.9 0
2021
(Jan-Apr) 16,750.4 14.9 14,986.0 42.3 1,764.5 -56.4 31,736.4 26.4
2021 (Mar) 4,376.8 0 4,177.9 0 198.9 0 8,554.7 0
2020 (Apr) 3,206.2 0 1,979.5 0 1,226.7 0 5,185.8 0
2021 (Apr) 4,550.0 41.9 3,576.3 80.7 973.7 -20.6 8,126.3 56.7
Table : Malaysia's External Trade, Annual (From 2015 to April 2021) (THAILAND)(In USD)
Year
TOTAL EXPORTS TOTAL IMPORTS TRADE BALANCE TOTAL TRADE
USD Mil Growth Rate % USD Mil Growth Rate % USD Mil Growth Rate % USD Mil Growth Rate %
2015 11,388.6 0.0 10,665.0 0.0 723.6 0.0 22,053.6 0.0
2016 10,619.6 -6.8 10,203.4 -4.3 416.2 -42.5 20,823.0 -5.6
2017 11,756.1 10.7 11,206.0 9.8 550.1 32.2 22,962.1 10.3
2018 14,146.3 20.3 12,049.8 7.5 2,096.5 281.1 26,196.1 14.1
2019 13,602.7 -3.8 10,689.7 -11.3 2,913.0 38.9 24,292.4 -7.3
2020 10,792.5 -20.7 8,154.2 -23.7 2,638.3 -9.4 18,946.7 -22.0
2020
(Jan-Apr) 3,465.9 0 2,502.8 0 963.0 0 5,968.7 0
2021
(Jan-Apr) 4,104.5 18.4 3,673.3 46.8 431.2 -55.2 7,777.8 30.3
2021 (Mar) 1,065.0 0 1,016.6 0 48.4 0 2,081.7 0
2020 (Apr) 736.2 0 454.5 0 281.7 0 1,190.7 0
2021 (Apr) 1,103.3 49.9 867.2 90.8 236.1 -16.2 1,970.4 65.5
Talking Point For Embassy Monthly Meeting 6/2021
Exports
• Malaysia’s export to Thailand recorded a positive growth of
41.9% to a total of RM4.55 billion (USD1.10 billion) as compared
to the same period last year (April 2020: RM3.20 billion;
USD736.2 million).
• The increase in exports were contributed by the following :-
Table : Malaysia's Exports to Thailand (April 2021) - In RM
2020 2021
MITI Industry
March P April P March I April I
RM Mil RM Mil RM Mil % Change RM Mil Change (Value) % Change
TOTAL 3,391.6 3,206.2 4,376.8 29.0 4,550.0 1,343.8 41.9
Sawn timber & moulding 20.0 1.9 22.2 11.2 17.1 15.2 799.0
Petroleum condensates and other petroleum oil
0.0 9.9 12.3 0.0 72.6 62.7 633.6
Transport Equipment
126.4 22.8 166.7 31.9 138.1 115.3 506.2
Crude Petroleum
355.1 68.9 218.8 -38.4 275.6 206.7 300.0
Crude Fertilizers and crude minerals 2.8 1.5 5.5 98.0 6.1 4.5 297.7
Metalliferous ores and metal scrap 0.0 6.8 3.2 0.0 25.8 19.0 279.1
Machinery, Equipment & Parts 158.8 67.6 280.4 76.6 236.9 169.3 250.6
Rubber Products
64.8 40.7 104.6 61.4 112.6 72.0 177.0
Petroleum Products
19.7 75.2 50.8 157.7 184.3 109.0 144.9
Beverages & Tobacco
10.5 11.6 34.7 231.0 26.7 15.1 130.2
TOTAL
Table : Malaysia's Exports to Thailand (April 2021) – In USD
MITI Industry
Sawn timber & moulding
Petroleum condensates and other petroleum oil
Transport Equipment
Crude Petroleum
Crude Fertilizers and crude minerals
Metalliferous ores and metal scrap
Machinery, Equipment & Parts
Rubber Products
Petroleum Products
Beverages & Tobacco
2020 2021
March P April P March I April I
USD Mil USD Mil USD Mil % Change USD Mil Change (Value) % Change
789.4 736.2 1,065.0 34.9 1,103.3 367.10 49.9
4.7 0.4 5.4 16.2 4.2 3.72 849.4
0.0 2.3 3.0 0.0 17.6 15.34 674.7
29.4 5.2 40.6 37.9 33.5 28.26 540.2
82.7 15.8 53.2 -35.6 66.8 51.01 322.4
0.6 0.3 1.3 107.0 1.5 1.12 320.0
0.0 1.6 0.8 0.0 6.3 4.69 300.4
37.0 15.5 68.2 84.6 57.4 41.92 270.2
15.1 9.3 25.4 68.7 27.3 17.97 192.5
4.6 17.3 12.4 169.4 44.7 27.41 158.7
2.4 2.7 8.4 246.0 6.5 3.81 143.1
On the export market share, the structure are mainly led by the
Electrical & Electronic products (16.6%; RM1.33 billion;
USD323.5 million) and followed by the other market shares:-
Table : Malaysia Export Market Share to Thailand (April 2021) - In RM
TOTAL
MITI Industry
Electrical & electronic products
Chemicals & chemical products
Other manufactures
Crude Petroleum
Machinery, Equipment & Parts
Manufactures of Metal
Iron & Steel Products
Petroleum Products
Optical & Scientific Equipment
Transport Equipment
2020 2021
March P April P March I April I
RM Mil RM Mil RM Mil % Change RM Mil Change (Value) % Change
3,391.6 3,206.2 4,376.8 29.0 4,550.0 1,343.8 41.9
1,044.1 1,144.1 1,178.2 12.8 1,334.2 190.1 16.6
420.7 367.5 621.1 47.6 544.7 177.3 48.2
300.2 148.5 377.7 25.8 296.3 147.8 99.6
355.1 68.9 218.8 -38.4 275.6 206.7 300.0
158.8 67.6 280.4 76.6 236.9 169.3 250.6
157.1 105.9 241.6 53.8 215.6 109.7 103.7
192.7 123.3 158.2 -17.9 210.0 86.8 70.4
19.7 75.2 50.8 157.7 184.3 109.0 144.9
91.0 65.3 212.4 133.4 149.0 83.6 128.1
126.4 22.8 166.7 31.9 138.1 115.3 506.2
Table : Malaysia Export Market Share to Thailand (April 2021) - In USD
MITI Industry
TOTAL
Electrical & electronic products
Chemicals & chemical products
Other manufactures
Crude Petroleum
Machinery, Equipment & Parts
Manufactures of Metal
Iron & Steel Products
Petroleum Products
Optical & Scientific Equipment
Transport Equipment
2020 2021
March P April P March I April I
USD Mil USD Mil USD Mil % Change USD Mil Change (Value) % Change
789.4 736.2 1,065.0 34.9 1,103.3 367.10 49.9
243.0 262.7 286.7 18.0 323.5 60.83 23.2
97.9 84.4 151.1 54.3 132.1 47.71 56.5
69.9 34.1 91.9 31.6 71.8 37.76 110.8
82.7 15.8 53.2 -35.6 66.8 51.01 322.4
37.0 15.5 68.2 84.6 57.4 41.92 270.2
36.6 24.3 58.8 60.8 52.3 27.97 115.1
44.9 28.3 38.5 -14.2 50.9 22.62 79.9
4.6 17.3 12.4 169.4 44.7 27.41 158.7
21.2 15.0 51.7 144.0 36.1 21.12 140.9
29.4 5.2 40.6 37.9 33.5 28.26 540.2
o Chemicals & Chemical Products (48.2%; RM544.7 million; USD132.1
million)
o Other Manufactures (99.6%; RM296.3 million; USD71.8 million)
o Crude Petroleum (300.0%; RM275.6 million; USD66.8 million)
o Machinery, Equipment & Parts (250.6%; RM236.9 million; USD57.4
million)
o Manufactures of Metal (103.7%; RM215.6 million; USD52.3 million)
o Iron & Steel Products (70.4%; RM210.0 million; USD50.9 million)
o Petroleum Products (144.9%; RM184.3 million; USD44.7 million)
o Optical & Scientific Equipment (128.1%; RM149.0 million; USD36.1
million)
o Transport Equipment (506.2%; RM138.1 million; USD33.5 million)
Continued page 35 34 MTCC NEWS July 2021
By MATRADE Bangkok
| MEMBER’S CORNER
Continued from page 34
Imports
• Malaysia’s import from Thailand increased about 80.7
percent to RM3.57 billion (USD867.2 million) from
RM1.97 billion (USD454.5 million) for the same period last
year.
TOTAL
MITI Industry
Electrical & electronic products
Transport Equipment
Chemicals & chemical products
Natural rubber
Machinery, Equipment & Parts
Processed food
Rubber Products
Other agricultures
Other manufactures
Manufactures of Metal
TOTAL
MITI Industry
Electrical & electronic products
Transport Equipment
Chemicals & chemical products
Natural rubber
Machinery, Equipment & Parts
Processed food
Rubber Products
Other agricultures
Other manufactures
Manufactures of Metal
Table : Malaysia Imports From Thailand (April 2021) - In RM
2020 2021
March P April P March I April I
RM Mil RM Mil RM Mil % Change RM Mil Change (Value) % Change
2,714.3 1,979.5 4,177.9 53.9 3,576.3 1,596.8 80.7
592.5 551.7 839.9 41.7 741.2 189.5 34.3
284.9 132.7 577.4 102.7 479.7 347.0 261.5
297.3 215.1 486.5 63.6 446.8 231.7 107.7
234.3 208.5 397.9 69.8 363.2 154.7 74.2
177.9 128.8 247.5 39.1 232.2 103.4 80.3
181.5 167.4 214.1 18.0 191.2 23.8 14.2
95.5 60.6 216.6 126.8 187.8 127.3 210.1
107.7 75.8 179.0 66.2 134.9 59.1 78.0
127.3 79.8 115.3 -9.4 107.7 27.8 34.9
68.9 53.9 103.4 50.0 91.7 37.8 70.1
Table : Malaysia Imports From Thailand (April 2021) - In USD
2020 2021
March P April P March I April I
USD Mil USD Mil USD Mil % Change USD Mil Change (Value) % Change
631.8 454.5 1,016.6 60.9 867.2 412.66 90.8
137.9 126.7 204.4 48.2 179.7 53.05 41.9
66.3 30.5 140.5 111.9 116.3 85.84 281.8
69.2 49.4 118.4 71.0 108.3 58.95 119.3
54.5 47.9 96.8 77.6 88.1 40.19 84.0
41.4 29.6 60.2 45.4 56.3 26.73 90.4
42.2 38.4 52.1 23.3 46.4 7.92 20.6
22.2 13.9 52.7 137.1 45.5 31.64 227.4
25.1 17.4 43.6 73.7 32.7 15.31 88.0
29.6 18.3 28.1 -5.3 26.1 7.78 42.4
16.0 12.4 25.2 56.9 22.2 9.86 79.7
• Total import in 2020 : RM34.14 billion (USD8.15 billion)
• The import structures are mainly focused on;
o Electrical and electronic products (34.3%; RM741.2 million;
USD179.7 million)
o Transport Equipment (261.5%; RM479.7 million; USD116.3
million)
o Chemicals & chemical products (107.7%; RM446.8 million;
USD108.3 million)
o Natural Rubber (74.2%; RM363.2 million; USD88.1 million)
o Machinery, Equipment & Parts (80.3%; RM232.2 million;
USD56.3 million)
• Imports are mainly due to the market demand from our Malaysian
companies in the E&E, Transport Equipments, Chemicals
and Natural Rubber.
• The demand for automotive sector has also declined due to
the ongoing COVID-19 pandemic. Despite this, Thailand
remains as an important player in Electrical and Electronics
related products and Automotive in the ASEAN region.
Thailand Trade Statistics (April 2020/2021)
a) Thailand To The World
• Thailand’s overall trade performance had a positive growth of
20.8% with a value of USD42.67 billion for the period of April
2021 compared to similar period in 2020. Thailand’s trade
performance is as follow:-
Description 2019 2020
2020
2021 Diff
(April) (April) 2021 / 2020
Trade Value
482,884.4 438,460.3 35,319.04 42,676.1 20.8%
Export
246,244.5 231,468.4 18,949.43 21,429.3 13.1%
Import
236,639.9 206,991.9 16,369.61 21,246.8 29.8%
Balance
9,604.6 24,476.5 2,579.82 182.5
Talking Point For Embassy Monthly Meeting 6/2021
• Thailand’s exports increased to USD21.42 billion for the
period of April 2021 which is 13.1% higher compared to
similar period in 2020. The top 5 exported products are :-
Products
• Motor cars, parts and accessories
• Automatic data processing machines
• Rubber products
• Polymers of ethylene, propylene
• Chemical Products
USD
(Mill)
2,046.8
1,646.0
1,214.5
915.3
792.5
As at April 2021
• The increase in the value of imports were at USD21.24
billion for April 2021 which was 29.8% higher compared to
the similar period in 2020. The top 5 imported products are
:-
• Crude Oil
• Chemicals
• Machinery and parts
• Electrical machinery and parts
• Iron and steel products
Products
USD
(Mill)
1,951.1
1,695.7
1,678.3
1,519.9
1,371.3
As at April 2021
b) Thailand’s top trading partner to the world consist of
China, Japan, USA, Malaysia, and Vietnam with Malaysia
being at number 4 from the top 5 list as follow:-
Country
1. China
2. Japan
3. USA
4. Malaysia
5.Vietnam
Trade Value
(USD Mill)
31,467
20,236
17,443
7,751
6,624
Export
(USD Mill)
11,267
8,352
12,769
3,878
4,314
Import
(USD Mill)
20,200
11,884
4,674
3,873
2,310
As at January - April 2021
c) Thailand to Malaysia
• Thailand’s overall trade to Malaysia recorded a positive
growth of 88.41% with a value of USD2.11 billion for the
period of April 2021 compared to similar period in 2020.
Thailand’s trade with Malaysia is as follow:-
Description 2019 2020
Trade Value
Export
Import
Balance
2020
(April)
2021
(April)
Diff
2021 / 2020
23,317.6 18,946.0 1,123.6 2,116.93 88.41%
10,459.3 8,734.5 533.4 1,021.60 91.54%
12,858.3 10,211.5 590.2 1,095.30 85.58%
-2,399.1 -1,477.0 -56.9 -73.73
USD Mill
• Thailand’s trade with Malaysia recorded an increase in
exports amounting to USD1.02 billion for the period of
April 2021 which is 91.54% higher compared to similar
period in 2020. The exports was contributed by the following
top 5 products :-
Products
• Refine Fuels
• Motor Cars, Parts & Accessories
• Rubber
• Automatic data processing machines
• Chemical products
USD
(Mill)
112.6
91.5
83.7
75.0
67.7
As at April 2021
• There was an increase in the value of imports which was
at USD1.09 billion for April 2021 which was 85.58% higher
compared to similar period in 2020. The top 5 imported
products are :-
Products
• Crude Oil
• Chemicals
• Computers, parts and accessories
• Electrical machinery and parts
• Electronic integrated circuits
USD
(Mill)
151.6
124.8
119.5
70.4
62.5
As at April 2021
USD Mill
35 MTCC NEWS July 2021
By Tilleke & Gibbins
| LEGAL BRIEF
Thailand Changes its
Statutory Interest Rate
Thailand has made significant changes to its statutory
interest rate framework for the first time in almost a century.
Since 1925, the statutory interest rate codified in
Thailand’s Civil and Commercial Code (the CCC) has
remained at 7.5% per year. But with Covid-19 having
an unprecedented impact on the Thai economy, the
Thai Government, via emergency decree, has reduced
the statutory rate. While the decree is largely aimed at
providing relief to hard-hit SMEs and individual debtors,
the amendments have broader implications for doing
business in Thailand.
Main Changes
The new interest rate revisions are contained within the
Emergency Decree Amending the Civil and Commercial
Code B.E. 2564 (2021) (the Emergency Decree),
which was published in the Government Gazette on
April 10, 2021 and came into effect on April 11, 2021.
The Emergency Decree amends Sections 7 and 224 of
the CCC, which stated the previous statutory interest
rate of 7.5% per year.
The Emergency Decree makes three major changes.
The first involves a reduction of the statutory interest
rate from 7.5% per year to 3% per year in Section 7.
The new 3% annual rate is subject to review every
three years by the Ministry of Finance. The interest rate
is subject to further change later by a royal decree.
The second change concerns money debts under Section
224 of the CCC. The previous version of Section
224 stated, among other things, that a money debt
based on a default bears interest of 7.5% per year.
Under the Emergency Decree, the new actual statutory
default interest rate is the statutory interest rate stated
in Section 7 with an additional rate of 2% per year.
The result is a 5% annual statutory default interest
rate. Since the statutory default interest rate is based
in part on the Section 7 rate, any future change to the
Section 7 rate will also affect the statutory default
interest rate.
The third change relates to installment payments,
and is made pursuant to a newly enacted Section
224/1 of the CCC. The Emergency Decree provides
that the default interest rate can only be applied to
the defaulted installment amount – not the unpaid
principal. This is markedly different from the previous
practice of charging default interest on the unpaid
principal, in addition to the defaulted installment payment
amount. Moreover, under the new Section
224/1, a contract clause that applies the default interest
rate to the non-defaulted principal is null and void.
As such, contract parties can no longer agree on
charging a default interest rate on the full unpaid principal.
Implications
The new changes to the statutory interest rate framework
affect financial loans, judgment debts (e.g. compensation
for tort liability), and different types of commercial
contracts. However, under the Emergency
Decree, if an agreement already specifies the interest
rate or a default interest rate, or if another specific
law provides otherwise, the existing agreement and
law would prevail. In other words, the parties can
“contract out” of the statutory rate. However, parties
cannot opt to apply any default interest rate on total
unpaid debts, regardless of any default. The new
amended statutory interest rate framework applies to
defaults and debts that are due on or after April 11,
2021.
Tilleke & Gibbins is continuing to monitor the
latest legal developments regarding the impact of
the COVID-19 pandemic. For more details, please
contact Tilleke & Gibbins at bangkok@tilleke.com
Thawat Damsa-ard
Partner
thawat.d@tilleke.com
Suruswadee Jaimsuwan
Counsel
suruswadee.j@tilleke.com
John Frangos
Partner and Deputy Director, Dispute Resolution
john.f@tilleke.com
36 MTCC NEWS July 2021
By Tilleke & Gibbins
| LEGAL BRIEF
Thailand Introduces
Additional Securities
Business Licenses
On March 3, 2021, two new types of license
became available to operators of securities
businesses in Thailand, following the enactment
of an amendment to the ministerial regulation
regarding securities business licensing in
Thailand, which was announced by the Ministry
of Finance four months prior.
While existing license types are broader, and
subject to high-level conditions and compliance
levels, the two new licenses are more
specific and may be more suitable and cost-effective
for operators whose activities are limited
to a narrower scope of securities business.
The details of the two new license types—the
Type E Securities Business License and the
Private Fund Management License—are as
follows:
Type E Securities Business License
A Type E Securities Business License covers
the following business activities:
• Equity brokerage
• Equity dealing
• Equity underwriting
• Investment advisory service
• Securities borrowing and lending
Operators eligible to apply for a Type E License
include:
• securities companies;
• commercial banks;
• life insurance companies;
• special-purpose financial institutions; and,
• Thai incorporated companies.
Private Fund Management License
Previously, business operators who only
intended to conduct private fund management
business had to apply for a Type C license—a
broad category of license covering mutual fund
management, private fund management,
brokerage for investment units or trust certificates,
and so on. The new Private Fund Management
License provides a more targeted
alternative to the Type C license, which is subject
to higher license fees and more comprehensive
compliance requirements.
New applicants for a securities business
license may now specify one of the additional
license types when applying to the Ministry of
Finance through the SEC. Holders of existing
securities business licenses can also apply to
change to one of the new license types.
Kobkit Thienpreecha
Partner and Director, Corporate and
Commercial
kobkit.t@tilleke.com
Thammapas Chanpanich
Attorney-at-Law
thammapas.c@tilleke.com
37 MTCC NEWS July 2021
By Samitivej Hospitals
| HEALTH CORNER
Rainy Season and COVID-19
HIGHLIGHTS:
• Every year during the rainy season, Thailand encounters
an influenza outbreak. During the 2019 influenza
outbreak, there were a total of 390,733 patients and 27
deaths from the disease. The groups experiencing the
highest illness rates were small and school-aged
children.
• During the rainy season, it is important that all of us
strictly adhere to preventive steps, including frequent
hand-washing, wearing a mask, eating hot foods , using
personal utensils, keeping a distance of at least 1-2
meters from other people, and avoiding crowded areas
that are not well-ventilated in order to stop the spread of
disease.
Can “rain” cause an increase in COVID-19 transmission?
There are a number of studies that provide conflicting
answers to this question. Some research suggests that
high humidity slows the spread of the new coronavirus,
while other research states that high humidity is more
conducive to the spread of the virus. There are even a few
studies suggesting that high humidity levels can cause a
severe spread of the pandemic. There are a number of
case studies to support the position that humidity does
play a key role in the spread of seasonal diseases. One of
these reports, led by Jin Bu of the Chinese Academy of
Medical Sciences, found that the virus seemed to spread
more easily in 75% relative humidity with precipitation less
than 30 mm per month. This research, however, conflicts
with all other studies on the subject.
Dr. Alan Evangelista, Professor of Microbiology and Virology
at St. Christopher’s Hospital for Children in Philadelphia,
USA, has been studying coronaviruses and influenza
particles for many years. Dr. Alan’s research indicates
that as humidity increases, the viral droplet size becomes
larger and rises from the body into the air more quickly. In
contrast, when humidity is low, there is more rapid evaporation
of respiratory droplets and they remain airborne for
longer periods, thus increasing the chance of transmission.
The fact remains, however, that every year during the
rainy season, Thailand encounters an influenza outbreak
The Department of Disease Control concluded in its summary
of the 2019 influenza outbreak that there were a.
total of 390,733 patients and 27 deaths. The groups
experiencing the highest illness rates were small and
school-aged children. The key contributing factors to
the outbreak were found to be increased humidity and
cooler temperatures, which allowed the virus to survive
for longer periods of time.
Prof. Yong Poovorawan, MD., Head of the Center of
Excellence in Clinical Virology at the Faculty of Medicine,
Chulalongkorn University, issued a warning to the
public about the COVID-19 pandemic after the Thai
Meteorological Department announced that as of May
18, Thailand had entered the 2020 rainy season. He
stated that although at this time only a small number of
infected persons have been found in Thailand, most of
whom were in state quarantine having recently returned
from foreign countries, the more than 100,000 new
COVID-19 cases per day worldwide clearly show that
this disease is difficult to control and more time is
needed to develop a vaccine that can put a stop to its
spread.
Protecting Yourself from Influenza and COVID-19
Protection from both of these viruses is possible using
similar methods. If everyone takes stringent measures
and works hard to prevent influenza, then the number of
people infected with COVID-19 will also be reduced. On
the other hand, because during the rainy season the
risk of infection by various flu viruses is higher, the risk
of COVID-19 transmission is higher as well. Steps that
we must continue to strictly adhere to include frequent
hand-washing, wearing a mask, eating hot foods, using
personal utensils, keeping a distance of at least 1-2
meters from other people, and avoiding crowded areas
that are not well-ventilated. Extra cloth face masks
should be kept on hand. If a mask gets wet in the rain it
should be changed immediately, as wet masks cannot
fully protect an individual from germs and bacteria.
When a person coughs or sneezes, small respiratory
droplets are ejected into the air. If that person is sick,
then viral particles will be contained in those droplets.
We can conclude that regardless of whether the climate
is humid or dry, we all need to adapt to this new way of
life and strictly follow the principles of self-protection
from both the influenza virus and the COVID-19 virus,
as these diseases are easily transmitted from person to
person.
Dealing with COVID-19 During the Rainy Season
• Wash hands frequently with soap and clean water or
an alcohol-based gel.
• Wear a mask every time you leave the house.
• Avoid touching your face, eyes, nose, and mouth with
your hands.
• Stick to eating freshly cooked foods and avoid raw
foods including meat and eggs.
• Maintain a safe distance of at least 1-2 meters from
other people.
• Avoid going to crowded places or areas that are not
well-ventilated.
Author
On-Umar Banpamai, M.D., Infectious
Disease Specialist
38 MTCC NEWS July 2021
| TRADE EVENTS Thailand & Malaysia
Thailand 2021
July
01 - 07 July 2021
Thai Teaw Thai event 59
Venue: Bangkok International Trade & Exhibition
Centre (BITEC), Bangkok
www.pkexhibition.com
15 - 18 July 2021
THAILAND COFFEE, TEA & DRINKS 2021
Venue: EH 106, Bangkok International Trade &
Exhibition Centre (BITEC), Bangkok
https://www.thailandcoffee.net/
24 July- 1 Aug 2021
Furniture Show 2021
Venue :IMPACT Muang Thong Thani - IMPACT
Arena and IMPACT Exhibition
and Convention Center Nonthaburi, Thailand
https://www.worldfair.co.th/
August
25 - 27 August 2021
TILOG – LOGISTIX 2021
Venue: Bangkok International Trade & Exhibition
Centre (BITEC), Bangkok
https://www.tilog-logistix.com/
25 - 27 August 2021
FUTURE ENERGY ASIA 2021
Venue: Bhiraj Hall 1 - 3, Bangkok International
Trade & Exhibition Centre (BITEC), Bangkok
https://www.futureenergyasia.com/
26 - 29 August 2021
THAI INTERNATIONAL TRAVEL FAIR 2021
Venue :IMPACT Muang Thong Thani - IMPACT
Arena and IMPACT Exhibition and Convention
Center Nonthaburi, Thailand
http://ttaa.or.th/th/
September
01 - 03 September
Thailand LAB INTERNATIONAL – Bio
Asia Pacific
Venue :Bangkok International Trade &
Exhibition Centre ( BITEC), Bangkok
https://www.thailandlab.com/
15 - 17 September 2021
FOOD INGREDIENT 2021
Venue : Bangkok International Trade &
Exhibition Centre (BITEC), Bangkok
https://www.figlobal.com/
15 - 18 September 2021
ProPak Asia
Venue: Bangkok International Trade &
Exhibition Centre (BITEC), Bangkok
https://www.propakasia.com/
Malaysia 2021
July August September
15 - 18 July 2021
M'SIA-PLAS - Malaysia International Plastic
Mould & Tools Exhibition 2021
Venue:Malaysia International Trade & Exhibition
Centre - MITEC Kuala Lumpur, Malaysia
https://esevent.com.my/
16 - 19 July 2021
MIJF - Malaysia Int'l Jewellery Fair 2021
Venue: Kuala Lumpur Convention Centre
Kuala Lumpur, Malaysia
http://www.elite.com.my/
28- 30 Jul 2021
MIFB - Malaysian International Food And
Beverage Trade Fair 2021
Venue :Kuala Lumpur Convention Centre - KLCC
Kuala Lumpur, Malaysia
https://sphereexhibits.com.my/
17 - 19 August 2021
Semicon Southeast Asia 2021
Venue:SETIA SPICE Arena
Penang, Malaysia
https://www.semiconsea.org/
16 - 18 August 2021
SMART NATION 2021 EXPO
Venue: Malaysia International Trade & Exhibition
Centre - MITEC Kuala Lumpur, Malaysia
https://www.ambtarsus.com/
24- 26 August 2021
Livestock Malaysia 2021
Venue :Malacca International Trade Centre -
MITC Malacca, Malaysia
https://www.livestockmalaysia.com/
08 - 11 September 2021
ENGINEER - Malaysia Engineering Exhibition
and Conference
Venue: KLCC Convention Centre, Kuala Lumpur,
Malaysia
https://cisnetwork.com/
23 - 25 September 2021
AGRI MALAYSIA
Venue: Setia City Convention Centre, Shah Alam,
Malaysia
https://agrimalaysia.com/EN/home
39 MTCC NEWS July 2021
MTCC FIRST DIGITAL
NEWSLETTER
ISSUE 2/2021