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  • Giant Thai-Chinese wholesale hub opens in Bangkok’s Pratunam

    The region’s largest wholesale hub features products from China at wholesale prices, and products from Thai manufacturers to export to China.

    The post Giant Thai-Chinese wholesale hub opens in Bangkok’s Pratunam appeared first on Thailand Business News.

    Asset World Corporation (AWC) has launched the region’s largest wholesale hub in the Pratunam area of Bangkok, housed in the old Pantip Plaza tech mall.

    Asset World Corporation, or AWC, Thailand’s leading integrated lifestyle real estate group, has marked a new era for Thailand’s wholesale industry with the launch of AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION.

    The region’s largest wholesale hub, AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION is located in downtown Bangkok and will meet the needs of all buyers and sellers all in one place under the concepts of ‘Most convenient’, ‘Most Entirety’ and ‘Best price’.

    Through this, we are encouraging Thai entrepreneurs to join hands with both public and private sectors alongside “Yiwu” to stimulate the local economy and establish Thailand as the largest wholesale destination in the region.

    Wallapa Trisorat, CEO and President, Asset World Corp Public Company Limited

    AWC has established marketing strategies to strengthen the local economy by collaborating with both public and private sectors, the Department of International Trade Promotion of the Ministry of Commerce, the Board of Trade of Thailand and 11 trade associations, the Federation of Thai Industries and “Yiwu”, or Zhejiang China Commodities City Group Co., Ltd. (CCC Group), a state-owned enterprise that develops and manages the world’s largest wholesale market for miscellaneous goods from Yiwu, China to enter into new markets both domestically and internationally with:

    – “Yiwu Selection Thailand Showcase”, an exhibition center for quality products from China at wholesale prices from the manufacturer for buyers to purchase;

    – “IC Mall” which selects quality products from Thai manufacturers to export to China both via offline and online channels including e-commerce and social media platforms such as Tmall.com, JD.com, Alibaba.com, Koala.com, and the IC_Mall Wechat Application

    Wallapa Trisorat, CEO and President, Asset World Corp Public Company Limited, states: “We are committed to helping the Thai economy regain its strength in line with our vision for ‘Building a better future’ by launching the ‘AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION,’ Thailand’s first comprehensive, one-stop wholesale trade center located in the heart of Bangkok, a prime location in the middle of Pratunam district.”

    In addition, the wholesale hub is equipped with a Solution Service Center (SSC) that provides consultation services about the import and export industry to provide more business opportunities both domestically and internationally, meeting rooms and event space for product launches. AWC serves as a facilitator of Business Matching between manufacturers, exporters and importers.

    The post Giant Thai-Chinese wholesale hub opens in Bangkok’s Pratunam appeared first on Thailand Business News.

    1 December 2020
    Corporate
    https://www.thailand-business-news.com/?p=81862
  • How COVID-19 has changed online shopping forever

    Following the pandemic, more than half of the survey’s respondents now shop online more frequently and rely on the internet more for news, health-related information and digital entertainment.

    The post How COVID-19 has changed online shopping forever appeared first on Thailand Business News.

    The pandemic has accelerated the shift towards a more digital world and triggered changes in online shopping behaviours that are likely to have lasting effects.

    The COVID-19 pandemic has forever changed online shopping behaviours, according to a survey of about 3,700 consumers in nine emerging and developed economies.

    The survey, entitled “COVID-19 and E-commerce”, examined how the pandemic has changed the way consumers use e-commerce and digital solutions. It covered Brazil, China, Germany, Italy, the Republic of Korea, Russian Federation, South Africa, Switzerland and Turkey.

    Following the pandemic, more than half of the survey’s respondents now shop online more frequently and rely on the internet more for news, health-related information and digital entertainment.

    Consumers in emerging economies have made the greatest shift to online shopping, the survey shows.

    The COVID-19 pandemic has accelerated the shift towards a more digital world. The changes we make now will have lasting effects as the world economy begins to recover.

    UNCTAD Secretary-General Mukhisa Kituyi.

    He said the acceleration of online shopping globally underscores the urgency of ensuring all countries can seize the opportunities offered by digitalization as the world moves from pandemic response to recovery.

    Online purchases rise but consumer spending falls

    The survey conducted by UNCTAD and Netcomm Suisse eCommerce Association, in collaboration with the Brazilian Network Information Center (NIC.br) and Inveon, shows that online purchases have increased by 6 to 10 percentage points across most product categories.

    The biggest gainers are ICT/electronics, gardening/do-it-yourself, pharmaceuticals, education, furniture/household products and cosmetics/personal care categories (Figure 1).

    Figure 1: Percentage of online shoppers making at least one online purchase every two months

    Figure 1 Percentage of online shoppers making at least one online purchase every two months
    Source: UNCTAD and NetComm Suisse eCommerce Association

    However, average online monthly spending per shopper has dropped markedly (Figure 2). Consumers in both emerging and developed economies have postponed larger expenditures, with those in emerging economies focusing more on essential products.

    Tourism and travel sectors have suffered the strongest decline, with average spending per online shopper dropping by 75%.

    Figure 2: Fall of average online spending per month since COVID-19, per product category

    Figure 2 Fall of average online spending per month since COVID-19, per product category
    Source: UNCTAD and NetComm Suisse eCommerce Association

    “During the pandemic, online consumption habits in Brazil have changed significantly, with a greater proportion of internet users buying essential products, such as food and beverages, cosmetics and medicines,” said Alexandre Barbosa, manager of the Regional Center of Studies on the Development of Information Society (Cetic.br) at the Brazilian Network Information Center (NIC.br).

    Increases in online shopping during COVID-19 differ between countries, with the strongest rise noted in China and Turkey and the weakest in Switzerland and Germany, where more people were already engaging in e-commerce.

    The survey found that women and people with tertiary education increased their online purchases more than others. People aged 25 to 44 reported a stronger increase compared with younger ones.

    In the case of Brazil, the increase was highest among the most vulnerable population and women.

    Also, according to survey responses, small merchants in China were most equipped to sell their products online and those in South Africa were least prepared.

    “Companies that put e-commerce at the heart of their business strategies are prepared for the post-COVID-19 era,” said Yomi Kastro, founder and CEO of Inveon. “There is an enormous opportunity for industries that are still more used to physical shopping, such as fast-moving consumer goods and pharmaceuticals.”

    “In the post-COVID-19 world, the unparalleled growth of e-commerce will disrupt national and international retail frameworks,” said Carlo Terreni, President, NetComm Suisse eCommerce Association.

    “This is why policymakers should adopt concrete measures to facilitate e-commerce adoption among small and medium enterprises, create specialized talent pools and attract international e-commerce investors.”

    Digital giants grow stronger

    According to the survey, the most used communication platforms are WhatsApp, Instagram and Facebook Messenger, all owned by Facebook.

    However, Zoom and Microsoft Teams have benefitted the most from increases in the use of video calling applications in workplaces.

    In China, the top communication platforms are WeChat, DingTalk and Tencent Conference, the survey shows.

    Changes are here to stay

    The survey results suggest that changes in online activities are likely to outlast the COVID-19 pandemic.

    Most respondents, especially those in China and Turkey, said they’d continue shopping online and focusing on essential products in the future.

    They’d also continue to travel more locally, suggesting a lasting impact on international tourism.

    The post How COVID-19 has changed online shopping forever appeared first on Thailand Business News.

    30 November 2020
    Ecommerce
    https://www.thailand-business-news.com/?p=81856
  • Thailand’s Public debt to GDP ratio within framework says Finance Minister

    Currently, Thailand's ratio of public debt to gross domestic product (GDP) stands at 49.34 percent, which is below the Fiscal Sustainability Framework set at 60 percent.

    The post Thailand’s Public debt to GDP ratio within framework says Finance Minister appeared first on Thailand Business News.

    BANGKOK (NNT) – The Thai economy is gradually recovering, with monthly economic indicators, such as the consumer confidence index and domestic spending, showing positive signs.

    Purchasing power is mainly driven by the government’s measures to help mitigate the adverse impacts of the COVID-19 pandemic, while loans of 1 trillion baht are being used to fund economic and social rehabilitation.

    To deal with a rise in demand for domestic loans from the private sector, the Finance Minister, Arkhom Termpittayapaisith, has directed the Public Debt Management Office (PDMO) to study ways to obtain foreign loans, to help diversify loan sources.

    Mr. Arkhom said the cost of borrowing from Thai and foreign institutions is similar. Obtaining foreign loans is another way to diversify loan sources, and it also allows the country to acquire technology for further development. However, the ministry has no plans to obtain foreign loans for fiscal year 2021.

    At present, the 1-trillion-baht loan decree consists of a loan of 1.5 billion US dollars, or 48 billion baht, granted by the Asian Development Bank (ADB).

    Public debt to GDP stands at 49.34 percent

    Currently, the ratio of public debt to gross domestic product (GDP) stands at 49.34 percent, which is below the Fiscal Sustainability Framework set at 60 percent.

    With the 1-trillion-baht loan decree and other borrowings combined, the ratio of public debt to GDP will not exceed the 60 percent framework in the next five years, on the assumption that the country’s economy will expand four percent in 2021 and three to five percent over the next five years.

    Public Debt Outstanding

    Debt componentMillion BahtPercentage% per GDP
    1. Direct Government Debt5,991,843.5576.3537.68
    2. Government Debt to fiscalise FIDF loss743,038.219.474.67
    3. SOEs Debt795,980.2910.145.00
    4. Financial SOEs Debt (Guaranteed)309,472.363.941.95
    5. Other Government Agencies Debt7,821.470.100.05
    6. FIDF Debt0.000.000.00
    Total7,848,155.88100.0049.35
    GDP15,901,591.500.000.00
    Source : https://www.pdmo.go.th/en

    Information and Source
    Reporter : Praphorn Praphornkul
    Rewriter : Tarin Angskul
    National News Bureau & Public Relations : http://thainews.prd.go.th

    The post Thailand’s Public debt to GDP ratio within framework says Finance Minister appeared first on Thailand Business News.

    27 November 2020
    Banking
    https://www.thailand-business-news.com/?p=81650
  • Thailand remains in pole position for the highest funds raised across Southeast Asia

    Taking the top two spots on the region’s leaderboard this year are Thailand’s Central Retail Corporation Public Company Limited and SCG Packaging Public Company Limited with US$1.77 billion and US$ 1.27 billion funds raised respectively

    The post Thailand remains in pole position for the highest funds raised across Southeast Asia appeared first on Thailand Business News.

    THAILAND, 26 November 2020 — Capital markets across Southeast Asia stayed resilient in 2020 despite a host of uncertainties from the evolving global health crisis to the worsening US-China trade tensions and the impact of the US presidential elections.

    Total IPO activity in the region for 10.5 months this year bucked the overall downward trend to inch up to pre-COVID levels with total funds raised of US$6.44 billion from 100 initial public offerings (IPOs).

    The total IPO market capitalisation in 2020 increased by 3% to $25.96 bln

    • Thailand, Philippines and Malaysia saw a year-on-year increase in IPO funds raised in spite of the pandemic
    • Thailand to close 2020 as Southeast Asia’s IPO star with total proceeds of US$3.9 billion exceeding five countries combined.
    • First homegrown deep-tech debut on the SGX Mainboard raised more funds than each of the two real estate investment trusts (REITs) listed in 2020, signals strong investor demand.

    Although the number of IPOs decreased by 38% from 161 IPOs in full year 2019 and the total IPO proceeds decreased by 12% from US$7.34 billion, the total IPO market capitalisation in 2020 increased by 3% to US$25.96 billion.

    The good news is capital markets in Southeast Asia appear to be navigating global economic headwinds well thus far.

    For the second consecutive year Thailand remains in pole position

    For the second consecutive year, Thailand remains in pole position for the highest funds raised across Southeast Asia. Taking the top two spots on the region’s leaderboard this year are Thailand’s Central Retail Corporation Public Company Limited and SCG Packaging Public Company Limited with US$1.77 billion and US$ 1.27 billion funds raised respectively.

    The two listings collectively accounted for almost half of the total funds raised in Southeast Asia. A stable economic growth, strong currency, low interest rates and consistently strong domestic liquidity have allowed the Stock Exchange of Thailand to net US$3.94 billion in IPO proceeds as of 15 November 2020, which accounted for 61% of total funds in 2020 to emerge as one of the bright spots in the region.

    This marks the fourth consecutive year that Thailand has raised more than US$2 billion from IPO listings and the first time since 2015 to break the US$3 billion mark.

    Thailand’s IPO market continues to show its growth potential as one of the stronger IPO markets in Southeast Asia. Largely driven by home-grown companies and fuelled by increasing investor interests in firms focused on consumer businesses, it continues to appeal strongly to investors and fund managers

    Ms Wilasinee KRISHNAMRA, Disruptive Events Advisory Leader, Deloitte Thailand

    Across the border, Bursa Malaysia scored the biggest boost from the listing of Mr D.I.Y. Group (M) Berhad which raised US$362 million, making it the largest listing in three years, while new listings fell to 18 this year, as compared to 30 listings in 2019.

    Overall, Bursa Malaysia mustered a total fund raising of US$481 million for 2020, registering growth from US$447 million raised in 2019. 

    Mr WONG Kar Choon, Disruptive Events Advisory Leader, Deloitte Malaysia commented, “The average trading volume has increased by approximately 86% and 208% for Q2 and Q3 2020 as compared to the same quarter in 2019. The high trading volume with buying momentum should remain strong where investors are generally looking at stock specific rather than sectors, especially those related to technology and healthcare.”

    In the Philippines, the landmark listing of AREIT, Inc. marked the country’s first-ever REIT listing, lifting the bourse with a US$255 million IPO in August. The IPO contributed to 31% of the total funds raised by the Philippine Stock Exchange, in addition to the 65% of funds contributed by Converge Information and Communications Technology Solutions Inc, which raised US$523 million.

    Indonesia was responsible for 46 IPOs in the first 10.5 months of 2020, which accounted for the highest number of IPOs across Southeast Asia in 2020. The high IPO activity can be attributed to the easing of listing for small and medium-sized enterprises since 2017. 

    Singapore saw its largest home-grown listing through Nanofilm Technologies International Limited (Nanofilm Technologies), which raised US$345 million on the SGX Mainboard, a platform typically dominated by REITs listings in recent years.

    As at 15 November 2020, the Singapore Exchange (SGX) raised a total of US$852 million in IPO proceeds from 8 IPO deals. In addition to Nanofilm Technologies, this includes two REIT IPOs on SGX Mainboard with US$479 million funds raised and five deals on the Catalist board that raised US$29 million. In comparison, the exchange raised US$2.26 billion in proceeds from 11 IPO deals in 2019.

    Ms TAY Hwee Ling, Disruptive Events Advisory Leader, Deloitte Southeast Asia and Singapore on how the pandemic has impacted the capital markets: “In a time of crisis, companies can find new growth by making fundamental changes to their business model. Sectors like healthcare and its suppliers have benefitted from the COVID-19 pandemic. Investors have also responded to the crisis and are adapting to the next normal – we have seen a significant increase in trading activities as the pandemic unfolded during the lockdowns. The use of technology for virtual IPO roadshows have allowed companies to break down barriers, gaining access to a wider pool of investors.”

    For some countries, REITs continue to remain an attractive asset class with low volatility, above-market dividend yields and provide exposure to high-quality properties, healthcare facilities, e-commerce or digitalisation related assets. The growth potential for REITs across Southeast Asia region is promising, given the region’s population and urbanisation-led growth trends.

    On the outlook for 2021, Ms TAY Hwee Ling, Disruptive Events Advisory Leader, Deloitte Southeast Asia and Singapore believes the region will continue to see good growth and expects an upswing in listings as a soon as a vaccine is proven safe and effective.

    “COVID has made companies reevaluate their business and growth forecast; and companies are looking into windows of opportunity to raise funds from stock markets to support their growth and stay resilient in this challenging climate. Although we are not out of the woods yet, the listing markets in Southeast Asia are still dynamic and attractive to investors.”

    The post Thailand remains in pole position for the highest funds raised across Southeast Asia appeared first on Thailand Business News.

    26 November 2020
    Business
    https://www.thailand-business-news.com/?p=81643
  • Thai bank revised up 2020 GDP forecasts to -6.4% and projected 2021 growth at 3.3%

    This upward revision reflects the better-than-expected performance 3Q20, which can be attributed to stronger government spending and a rebound in exports

    The post Thai bank revised up 2020 GDP forecasts to -6.4% and projected 2021 growth at 3.3% appeared first on Thailand Business News.

    Krungsri Research predicts that Thai GDP will fall by -6.4% in 2020, then grow by 3.3% in 2021, and expects that the MPC will keep interest rates unchanged through next year

    At the latest meeting of the Monetary Policy Committee (MPC) on November 18, it was unanimously agreed that interest rates should stay at 0.50% since although 3Q20 recovery was better than expected, this remains weak and different sectors are rebounding at different rates.

    Krungsri Research has revised up 2020 GDP forecasts to-6.4% from -10.3% and projected 2021 growth at 3.3% amid opportunity and challenge. 

    Better-than-expected performance 3Q20

    This upward revision reflects the better-than-expected performance 3Q20, which can be attributed to stronger government spending and a rebound in exports. Looking forward, growth in the Thai economy should turn positive in 2Q21 on a combination of the low-base effect, the positive effects of government spending, and recovery in overseas demand.

    However, challenges, especially domestic headwinds, will remain, including the recovery in tourism, which is lagging behind other economic growth drivers, the impacts of high unemployment on income and consumer spending, and rising domestic political unrests, which may undermine growth and raise concern over the continuity of economic policy.

    However, exports would become the engine of growth in the coming period. Private investment in export-related sectors should recover moderately. In addition, regionalization would provide opportunity to Thai exports and domestic production in the medium term.

    Return to pre-pandemic conditions is expected to take two years

    Moreover, a return to pre-pandemic conditions is expected to take two years, implying the labor market remains fragile, especially wage income is still low.

    This may then weigh on private-sector consumption, especially for low-income groups for whom temporary government support is coming to an end. In addition, the MPC expressed its concerns about the rapid appreciation in the value of the baht and the possible impacts of this on the recovery.

    As such, the committee agreed to closely monitor the movement of exchange rates and capital flows, and it is now prepared to issue additional regulations as needed. Thus, the BOT has now announced that it will reduce pressure on the baht by resolving structural problems in the forex market through:

    (i) allowing residents to freely deposit funds in Foreign Currency Deposits (FCDs);

    (ii) relaxing regulations regarding investment in foreign securities; and (iii) requiring a bond pre-trade registration.

    Following the announcement of the BOT’s new regulations, on November 20, the baht weakened to USD 30.33/baht, down slightly from the start of the week, when it touched a 10-month high of USD 30.14/baht. On the same day, despite net foreign selling in Thai bonds worth THB1.29 bn, foreign investors bought Thai stock worth a net THB2.39 bn, following the easing of investors’ fears and the realization that the new measures are aimed to maintain a stabilization in capital flows, not cut off inflows.

    Krungsri Research also believes that given the fragility of the recovery, the softness in inflation and the unprecedentedly loose monetary policy pursued by central banks worldwide, the MPC will keep policy interest rates at their historic low through all of 2021, while the recovery to the pre-pandemic level would take time.

    Therefore, it will be necessary to provide targeted financial assistance and other measures to help businesses continue their operation and to avoid lack of liquidity.

    Source :

    Weekly Economic Review ประกาศวันที่ :24 November 2020

    The post Thai bank revised up 2020 GDP forecasts to -6.4% and projected 2021 growth at 3.3% appeared first on Thailand Business News.

    26 November 2020
    Economics
    https://www.thailand-business-news.com/?p=81636
  • Thailand to roll out more economic measures for New Year

    Thai economy next year is expected to grow by 3.5-4.5 percent, while the Ministry of Finance has prepared more measured to be rolled out

    The post Thailand to roll out more economic measures for New Year appeared first on Thailand Business News.

    BANGKOK (NNT) – The Ministry of Finance’s permanent secretary says that the Thai economy next year is expected to grow by 3.5-4.5 percent, while the Ministry of Finance has prepared more measured to be rolled out for the general public as New Year gifts.

    The Ministry of Finance’s Permanent Secretary Krisada Chinavicharana gave the opening speech at the Wealth Forum seminar, where he has pointed out that the Thai economy has already passed the lowest point, and has started to recover.

    He said the economic output in Q3 this year was at a negative 6.4 percent, however the Q4 performance is expected to swing back to negative 3.5-4.5 percent, thanks to successful COVID-19 measures, positive progress in COVID-19 vaccine development and the global economic recovery.

    At the same time, the government has been pursuing financial and monetary measures, using the 1 trillion baht emergency loan for economic recovery from COVID-19, with funding now being disbursed for related projects.

    In addition, the Ministry of Finance is planning to roll out additional measures for the general public in the final weeks of this year.

    The Finance Ministry’s permanent secretary said the Ministry of Finance will continue to promote economic growth, maintain the employment rate and expedite government spending. The ministry is sure its measures will help rebuild confidence among international companies to enable them to invest in Thailand once again.

    Mr Krisada said, during his speech, that this Wealth Forum will help convey to audiences correct understanding about the Thai economy, the world economy and market fluctuations, which will help investors make informed decisions.

    He responded to a question, on the government’s 50:50 co-pay campaign, that the government will likely increase the number of eligible persons in the next round of registration, pending a report on expected applicants, from Krungthai Bank, and further evaluations.

    The post Thailand to roll out more economic measures for New Year appeared first on Thailand Business News.

    25 November 2020
    Economics
    https://www.thailand-business-news.com/?p=81629
  • Raising inequality posing credit risks for sovereign in APAC countries

    Governments with weaker social protection systems and tighter fiscal positions will face tougher challenges in tackling income inequality

    The post Raising inequality posing credit risks for sovereign in APAC countries appeared first on Thailand Business News.

    Moody’s Investors Service says in a new report that the impact of the coronavirus pandemic will exacerbate income inequality in APAC, posing credit risk for sovereigns across the region and in particular for those with weaker fiscal capacity and social protection systems.

    “Growth in APAC has outpaced other regions globally for decades. Although this has reduced poverty, it has been accompanied by increases in income inequality for nearly half of Moody’s rated APAC sovereigns,” says Anushka Shah, a Moody’s Vice President and Senior Analyst.

    “The shock from the pandemic will make these inequality gaps starker as it hits vulnerable and lower income groups disproportionately.”

    Anushka Shah, a Moody’s Vice President and Senior Analyst

    Rising disparities could spur governments to intervene with fiscal policy. Spending on social measures typically reduces income disparity.

    But nearly all APAC emerging and frontier markets, barring a few exceptions, have weak redistribution systems, although efforts to strengthen these systems are underway.

    Tax policies, particularly the use of progressive income taxes, can also address income inequality, but only when tax leakage or evasion is minimal. In APAC – with the exception of some advanced economies – the role of taxation in reducing inequality has been limited, since personal taxes account for a small share of tax revenue and they are not aligned with taxpayers’ capacity to pay.

    Over the long term, governments with weak social systems and limited scope to raise fiscal spending will face particular challenges in tackling income inequality. India, Indonesia and, to some extent, Malaysia and the Philippines stand out in this regard. Frontier markets such as Papua New Guinea and Sri Lanka face similar pressures.

    Low revenue constrains the ability of these governments to shore up financing for spending on social transfers. If growth remains below pre-pandemic rates, these governments may face tough choices between addressing inequality before it has persistent and wide-ranging effects – particularly, but not limited to, social and political strains – and implementing fiscal consolidation.

    Although China, Hong Kong SAR and Singapore have high income inequality, their fiscal space provides leeway in quelling immediate pressures.

    The post Raising inequality posing credit risks for sovereign in APAC countries appeared first on Thailand Business News.

    24 November 2020
    Banking
    https://www.thailand-business-news.com/?p=81624
  • Salary increases in Thailand and Singapore expected to be among the world’s highest in 2021

    Few countries are expected to see a significant rise in the level of real salary increases in 2021, but there are exceptions to this within the Asia Pacific region

    The post Salary increases in Thailand and Singapore expected to be among the world’s highest in 2021 appeared first on Thailand Business News.

    Thailand and Singapore are joint-second place in the Asia Pacific rankings for real salary increases.

    Salary increases for workers in Singapore are forecast to rise to 3.0% in 2021, up from 2.5% in 2020. Upon factoring in the predicted inflation rate of 0.3% for next year, workers in Singapore will see an average salary increase of 2.7% in real terms.

    While down slightly from a 2.9% real salary increase they saw this year, it is one of the highest in the world.

    “Singapore is expected to be the third highest in the global rankings for real salary increases on par with Thailand and Colombia, and second highest in the Asia Pacific on par with Thailand, despite the lower forecasted increase in 2021 compared to what workers saw this year,”

    Lee Quane, Regional Director – Asia at ECA International

    Indonesia leads the way in 2021’s Asia Pacific rankings for real salary increases with a forecast increase of 3.8% – significantly higher than the joint second-place nations of Singapore and Thailand, where the increase is expected to be 2.7% in comparison.

    “Few countries are expected to see a significant rise in the level of real salary increases in 2021, but there are exceptions to this within the Asia Pacific region. One of these exceptions would be Indonesia, which stands out at the top of the list and sees the average real salary increase rise from 2.6% this year to 3.8% in 2021.

    While inflation in Indonesia is expected to continue falling, repeating the trend we have seen in recent years, fewer companies in the country intend to freeze salaries – implying that the nominal salary increases would have risen. In fact, our data shows that although 42% of the companies surveyed in Indonesia implemented a salary freeze this year, only 24% of these will do so in 2021 – contributing to the rise in average salary increases in the country,” said Quane.

    Top ten forecast real salary increases – Asia Pacific

    Country2021 forecast real salary increase (%)2020 real salary increase (%)
    Indonesia3.82.6
    Thailand2.74.1
    Singapore2.72.9
    Republic of Korea2.61.5
    China2.30.9
    India2.3-0.1
    Cambodia2.12.1
    Bangladesh2.1-3.6
    Taiwan2.03.1
    Japan1.72.1
    • Salaries in Singapore are forecast to rise to 3.0% in 2021 – up from 2.5% this year
    • After factoring in inflation, the average real salary increase in Singapore will be 2.7% – one of the highest in the world
    • Thailand and Singapore are joint-second place in the Asia Pacific rankings for real salary increases
    • The number of Singapore-based companies implementing pay freezes is also expected to drop in 2021, down to 22% from 36% this year
    • Most locations in Asia Pacific are forecasting higher rates of increase in 2021
    • Rates of real salary increases across Asia Pacific are forecast to be 1.7% in 2021

    These are the key findings of the latest Salary Trends Survey published by ECA International, the world’s leading provider of knowledge, information and software for the management and assignment of employees around the world. 

    The post Salary increases in Thailand and Singapore expected to be among the world’s highest in 2021 appeared first on Thailand Business News.

    23 November 2020
    Economics
    https://www.thailand-business-news.com/?p=81614