Category: The Bangkok Post

SET-listed President Bakery, a producer and distributor of bakery products under the Farmhouse brand, plans to spend about 5 billion baht on investment over three years.

Of the investment budget, 2 billion baht is allocated to build a new production facility at its Lat Krabang plant. The project is targeted for completion in 2028, said managing director Apisate Thammanomai.

“The expansion aims to increase production capacity and enhance efficiency,” he noted.

Another 2 billion baht is allocated for the construction of a new flour mill. The investment amount increased from previous estimates because more advanced machinery was included, Mr Apisate said.

Construction of the mill is expected to be completed by 2028, he said.

The remaining budget is meant to upgrade the company’s vehicle fleet, including the addition of more electric pickups, with a target of 100 new electric vehicles per year.

Although diesel prices have declined from a peak of around 50 baht per litre in early April to 37.5 baht per litre on June 25, Mr Apisate said overall logistics and packaging costs remain 10-20% higher than before the US-Israeli war with Iran.

He said he anticipates consumer spending will gradually recover in the second half of the year.

The “Thai Chuay Thai Plus” co-payment scheme has helped lift company sales, Mr Apisate said.

He said he hopes the government will promote the Thai tourism sector, which supports growth in the service sector, as well as taking further action to reduce oil prices.

SI RACHA DEVELOPMENT

Saha Pathana Inter-Holding Plc (SPI), Tokyu Corporation, a Japanese urban development company, and Saha Tokyu Corporation Co Ltd have signed a memorandum of understanding to jointly explore the feasibility of future development projects in Si Racha, Chon Buri.

Over a three-year feasibility period, the partners plan to conduct studies and formulate development strategies covering 10-20 years across 700 rai of land owned by the Saha Group in Si Racha.

Vorayos Thongtan, president of SPI, said Si Racha is a key economic centre within the Eastern Economic Corridor. The companies aim to create a new business structure and a quality living environment to support long-term economic growth and investment, he said.

Yoshinori Ogata, executive officer and executive general manager for international business at Tokyu, said the feasibility study will cover various development projects such as commercial, office, residential, international schools, and convention hall facilities.

Mr Ogata said the investment value has not been determined, as it depends on the outcome of the feasibility study.

“International schools and convention halls are the projects we hope to move forward with first. However, we need to assess demand before proceeding,” he said.

The development projects aim to serve expatriates from across the world, not only the Japanese community, Mr Ogata said.

There are roughly 7,000 registered Japanese expatriates in Si Racha, he noted.

Japanese investors remain confident in Thailand, including automotive companies, which continue to expand their investments here, Mr Ogata noted.

Thailand is entering an era of unprecedented longevity. Advances in healthcare and medical technology are allowing people to live significantly longer than previous generations, creating both opportunities and challenges for retirement planning.

According to Kasikorn Asset Management (K-Asset), longer life expectancy means many Thais may need to finance 20 to 30 years of living expenses after retirement, making traditional saving habits increasingly inadequate.

Today, the average Thai man is expected to live to around 85, while women can expect to live to an average of 88.

For someone retiring at 60, they should prepare for another two or three decades of living without regular employment income.

“The biggest challenge for people living longer is their savings are not growing at the same pace,” said Win Phromphaet, executive chairman of K-Asset.

“Many underestimate how much money they will actually need after retirement.”

RETIREMENT CRISIS

The retirement challenge begins with a broader financial issue: insufficient savings.

Data provided by K-Asset indicates 48% of Thais have emergency savings that would cover less than one month of expenses. Financial planning principles generally recommend maintaining reserves equivalent to 3-6 months of living costs, yet only 17% of Thais meet that standard.

The situation is even more concerning among retirees. Almost 45% of elderly Thais have no savings at all. Among those who have managed to save, more than 64% hold less than 100,000 baht.

At the opposite end of the spectrum, only around 1% of Thais have accumulated more than 3 million baht in savings.

The consequences are increasingly visible across society. Around 35% of retirees continue to depend primarily on financial support from their children, while another 33% remain in the workforce because they cannot afford to stop working.

Government elderly allowances of roughly 600 baht per month provide only limited support and are insufficient to cover basic living expenses.

“These figures suggest that retirement insecurity is no longer a future concern — it is already affecting millions of households today,” said Mr Win.

COST OF LIVING

One of the most common mistakes in retirement planning is underestimating the amount of money required to sustain a comfortable lifestyle after leaving the workforce.

According to K-Asset estimates, a retiree who expects to spend 15,000 baht per month for 20 years after retirement would need roughly 4 million baht in retirement savings.

For someone seeking monthly spending of 20,000 baht until age 90, the amount rises to roughly 5.5 million baht.

However, those figures assume a retirement portfolio generating an average annual return of around 4% to keep pace with inflation, estimated at roughly 1.3% per year.

Without reasonable investment returns, the picture changes dramatically.

A retiree relying solely on cash savings or low-interest bank deposits would need roughly 7.2 million baht to maintain monthly spending of 20,000 baht over a 30-year retirement period.

The difference highlights a crucial reality facing future retirees: saving money alone may be inadequate to fund your retirement, Mr Win noted.

THE GREATEST RISK

For many Thai households, bank deposits have been the preferred savings vehicle for decades because they are simple, accessible, and perceived as safe.

Yet deposit rates often remain less than 1%, making it difficult for savings to outpace inflation.

While keeping money in the bank reduces short-term market risk, it leads to the gradual erosion of purchasing power.

“The greatest retirement risk is not market volatility. It is the inability of savings to grow fast enough to support a retirement that could last 30 years,” said Mr Win.

Financial planners increasingly warn about two major threats facing retirees: longevity risk, which is the possibility of outliving one’s savings; and inflation risk, as the gradual increase in living costs reduces the real value of cash over time.

As life expectancy continues to increase, these risks are becoming more significant than many people realise, noted K-Asset.

WEALTH PRESERVATION

To address these challenges, financial planners recommend diversified investment portfolios rather than concentrating assets solely in cash deposits or domestic investments.

Many Thai investors continue to allocate most of their wealth to local assets such as Thai equities, bonds and domestic real estate. While these investments remain important components of a portfolio, relying exclusively on a single asset may limit long-term growth opportunities, said Mr Win.

Investors should consider broader diversification across geographies, sectors and asset classes, he said.

A balanced retirement portfolio may include domestic and international equities, fixed-income instruments, and alternative assets, depending on an individual’s goals, investment horizon and risk tolerance.

Global diversification can also provide access to structural growth themes that may not be fully represented in the Thai market, including artificial intelligence, digital transformation, healthcare innovation and emerging technologies, according to K-Asset.

The objective is not simply to pursue higher returns, but to build a portfolio capable of generating sustainable growth while managing risk over multiple decades.

Another common mistake among investors is maintaining the same portfolio allocation throughout their entire working life, said Mr Win.

Many members of provident funds choose an investment plan once and rarely revisit it, he noted. As the years pass, their portfolios may no longer match their age, financial objectives, or ability to tolerate risk.

This challenge has led to growing interest in lifecycle investing, a strategy widely adopted in retirement systems around the world.

The strategy holds that investment risk should gradually change as an investor ages.

For individuals in their 20s, 30s and early 40s, portfolios can generally maintain higher exposure to growth-oriented assets such as equities because they have sufficient time to recover from market fluctuations. A portfolio during this stage may allocate as much as 85% to equities to maximise long-term wealth creation.

Around age 45, roughly 15 years before retirement, investors may begin reducing portfolio risk gradually.

“This period is often considered the optimal transition point,” said Mr Win.

“Reducing risk too early can limit long-term growth potential, while waiting too long may expose retirement savings to unnecessary market volatility.”

By retirement age, equity allocations are typically reduced to around 30%, while more conservative assets play a greater role in preserving capital and generating stable income.

The goal is not to eliminate risk altogether, but to ensure that investment risk remains appropriate for each stage of life.

PLANNING

As Thailand become an aged society, retirement planning is becoming one of the most important financial challenges facing households.

The solution is not simply saving more money, but adopting a more comprehensive approach that combines disciplined saving with long-term investing, according to planners.

For individuals who lack investment expertise, professional financial advisors or diversified mutual funds can help build portfolios aligned with retirement goals and risk tolerance.

“The biggest retirement mistake is not simply failing to save enough. It is failing to make savings grow,” said Mr Win.

For a generation that may spend three decades in retirement, financial security will depend on more than accumulating cash. It will require thoughtful investing, diversification, and a willingness to adapt investment strategies over time, he noted.

As people live longer, ensuring retirement savings can sustain decades of post-work life is a major financial challenge.

The oil crisis. The rise of electric vehicles. The integration of Artificial Intelligence.

The automotive industry has experienced influential forces in recent years that will define the future of how we drive for years to come. In this episode of the Bangkok Post’s ‘Mind The Gap: The Road Ahead – What Will We Be Driving Next?’, a CEO and an engineer, both automobile enthusiasts, team up to discuss where we are on the automotive journey and what we will be driving next.

Special guests:

Christian Schell, President and CEO of Mercedes-Benz (Thailand) Ltd.

Thitipong Phawadee, network operations center engineer at 2C2P and graduate of the Master of Science Programme in International Digital Business, Rangsit University

Opposition parties have lined up more than 40 MPs for the 2027 budget debate starting today, with AI-related spending among the key targets for scrutiny.

Democrat Party leader Abhisit Vejjajiva said his party had assigned about 10 to 12 MPs to participate in the debate. He said discussions would focus on the overall picture and structure of the national budget, which still relies heavily on borrowing and tax collection.

Mr Abhisit said current state revenues collected through taxation are largely consumed by recurring expenditures and debt repayment, underscoring the need to reform the budget structure.

He also criticised the 2027 budget proposal for failing to reflect rapidly changing economic and social conditions. He said Democrat Party MPs would also examine specific areas, including spending on anti-narcotics policies and education.

He questioned several tech-related projects, saying many agencies justify budget requests by citing artificial intelligence (AI), although the benefits to the country remain unclear.

People’s Party (PP) leader Natthaphong Ruengpanyawut said his party had prepared about 30 MPs for the debate. He expressed confidence the debate would be substantive and urged the public to closely follow the three-day parliamentary session.

Regarding the controversial TH-AI Passport project, Mr Natthaphong said that although some adjustments had already been made to the draft budget, questions remained over a 1.6-billion-baht allocation from the Digital Economy and Society Development Fund. He questioned whether the government would cancel the contract and reopen the bidding process.

He added that parliamentary committees overseeing legal affairs and budget monitoring had already submitted inquiries to anti-corruption agencies to ensure transparency.

On the government side, spokeswoman Rachada Dhnadirek said Prime Minister Anutin Charnvirakul had instructed officials to fully prepare for the debate.

The proposed 2027 budget sets spending at 3.78 trillion baht, an increase of 7.4 billion baht, or 0.2%, from the previous budget. Ms Rachada said it was drafted under fiscal constraints and amid global economic uncertainty, while balancing short-term public support with long-term competitiveness.

She also highlighted the government’s “investment plus” strategy, which combines investment by state enterprises, public-private partnerships, the Thailand Future Fund, the Board of Investment’s investment promotion efforts, the Thailand Fast Pass programme, and investment by the private sector and local administrative organisations to stimulate broader economic growth.

Mayor Poramet Ngampichet was re-elected and his council candidates won all seats in the Pattaya city elections on Sunday.

Pattaya City Hall said Mr Poramet received 20,184 votes, returning him for a second term in office, followed by 11,566 votes for People’s Party candidate Ittiwat Wattanasardsatron.

Mr Poramet’s candidates also made a clean sweep, winning all Pattaya council seats in the four constituencies.

There were 80,204 eligible voters in Pattaya and 43.24% of them cast their votes on Sunday.

On Monday Mr Poramet and his ‘We Love Pattaya’ team roamed Pattaya streets to thank voters. He promised to make Pattaya a world-class tourist destination and improve people’s lives.

Thailand’s securities brokerage industry is accelerating its transformation as declining commission fees and volatile trading volumes continue to pressure profitability, prompting firms to diversify revenue streams beyond traditional brokerage services.

According to Pichet Sithi-Amnuai, chairman of the Association of Thai Securities Companies (Asco), the sector’s ability to weather the downturn depends on trading activity, capital strength, and the success of new investment products that can attract a broader investor base.

Consolidation is a natural part of the brokerage industry, he said, particularly among smaller firms facing capital constraints and shrinking margins.

However, mergers and acquisitions (M and A) are often complex and take longer to materialise than expected, said Mr Pichet, who is also president of Bualuang Securities.

Daily market turnover remains the industry’s most important health indicator. With an average trading value of 40-45 billion baht per day, many brokers could continue to struggle financially. In contrast, turnover of around 60 billion baht per day would allow most firms to remain profitable and operate more sustainably.

Capital adequacy is another critical factor. Smaller brokers with tight net capital ratio positions may eventually need to raise capital or pursue consolidation to strengthen their balance sheets and remain competitive.

Bank-affiliated brokerages enjoy a significant advantage thanks to stronger capital bases and established customer networks, reducing the urgency for consolidation, he noted.

M and A EFFORTS

Despite efforts by regulators and the Stock Exchange of Thailand to facilitate consolidation, M and A activity has remained limited.

ML Thongmakut Thongyai, chief executive of Krungthai XSpring Securities, said the industry continues to attract new entrants seeking niche opportunities, even though securities brokerage has long been viewed as a mature or “sunset” sector.

Many operators prefer to remain on the sidelines rather than pursue acquisitions or sales, even under difficult business conditions, he said.

Structural challenges also persist. Thailand’s investor base has expanded modestly over the past decade, with the number of investment accounts rising from roughly 2 million to 3 million. While about 74% of Thais have savings, only around 14% actively invest, limiting opportunities for brokers to significantly expand their client base.

Meanwhile foreign brokerages continue to enter the Thai market, intensifying competition rather than reducing the number of industry players.

NEW PRODUCTS

As traditional commission income becomes less reliable, brokers are expanding into wealth management, investment banking and proprietary investment businesses.

Among the industry’s fastest-growing products are depositary receipts (DRs), which allow Thai investors to gain exposure to leading overseas stocks and markets through local trading accounts.

DRs are particularly popular among retail and younger investors because they provide convenient access to global investment opportunities while supporting portfolio diversification.

Brokers view DRs as an important gateway for attracting new investors into Thailand’s capital market, noted Mr Pichet.

In contrast, derivative warrants continue to appeal primarily to investors seeking short-term trading opportunities and higher-risk strategies.

ATTRACTIVE VALUATIONS

Industry leaders see a more constructive environment for Thailand’s equity market in the second half of the year.

Supportive factors include easing geopolitical and political uncertainties, attractive equity valuations, and signs of returning foreign investment flows.

The continued development of new investment products, as well as efforts by policymakers and market participants, are critical to strengthening long-term market competitiveness, he said.

If average daily trading value can recover to 50-60 billion baht, confidence among brokerages would improve significantly, allowing firms to move beyond survival mode and focus on sustainable growth, according to Asco.

While the association does not intervene in members’ business strategies, Mr Pichet said it serves as a bridge between brokers and regulators, while promoting industry development, knowledge sharing and the creation of new investment opportunities.

For Thailand’s brokerage industry, the path forward likely depends on diversifying from commission income to focus on scale, innovation and the ability to attract a new generation of investors.

Two Malaysian tourists were injured when a road bomb exploded beneath their car in Tak Bai district late on Monday morning.

The Internal Security Operations Command said the bomb was in a pipe placed under the road near Sa Pom intersection in Ban Praiwan, tambon Praiwan. It detonated at 11.41am as a Malaysia-registered car passed over it.

The two Malaysian tourists in the vehicle were both injured, but not critically. The car was extensively damaged.

Abdullah Syarapi Bin Abd Rahman, 45, suffered a cut to his forehead and injuries to his left hand and left thigh. Muhammad Yusri Bin Udin, 38, suffered wounds to his right arm and left hand. Both remained conscious.

They were taken to Naradhiwasrajanagarindra Hospital in Muang district.

Thai health officials have dismissed a viral claim that some drinks can become toxic when kept in insulated tumblers, saying standard temperature-control cups do not turn your morning coffee, milk or juice into a health hazard.

The warning, widely shared on social media, claimed that five types of drinks should not be placed in insulated cups because doing so was ‘like pouring poison into your mouth’.

The Anti-Fake News Centre said the claim referred to milk, herbal drinks, sour or acidic beverages, and salty drinks stored in insulated cups.

Officials said the information was misleading. The issue is not that ordinary insulated cups make drinks poisonous, but that poor storage and cleaning can create hygiene risks.

The Health Literacy and Communication Promotion Division said some drinks may deteriorate if left too long, while microorganisms can grow when cups are not properly cleaned.

People are advised not to leave drinks, especially milk and fruit juice, in insulated tumblers for long periods or overnight. Yesterday’s latte, sadly, does not improve with age. Users should wash cups soon after use, paying close attention to lids, grooves and silicone seals, where stains and mould can collect.

Officials also recommended replacing cups if the inside is badly scratched or if the tumbler develops a strong metallic smell.

Thailand and the European Union (EU) have concluded negotiations on the chapter covering trade and services of state enterprises for a proposed free trade agreement (FTA), says Tibordee Wattanakul, director-general of the State Enterprise Policy Office.

He said the agreement was reached during the ninth round of FTA negotiations held in Brussels, Belgium on June 25.

The negotiations were co-chaired by Francisco Peiro of the European Commission’s Directorate-General for Trade, who headed the EU delegation for the state-owned enterprise chapter.

Both sides resolved all outstanding issues, including reservations and exceptions.

The agreement requires state-owned enterprises engaged in commercial activities involving the purchase and sale of goods or the provision of services to operate on a non-discriminatory basis and in accordance with commercial considerations, similar to private-sector companies.

One exception is governments can retain the flexibility to provide support measures to state-owned enterprises during periods of economic crisis.

State enterprises generating annual commercial revenue of less than US$200 million (roughly 6.5 billion baht) are exempt from the rules.

During the eighth round of Thailand-EU FTA negotiations held in February 2026 in Chiang Mai, both parties finalised three chapters, bringing the total completed to 11 out of 24.

Both parties set a target to wrap up negotiations this year.

The agreement is expected to significantly improve Thailand’s access to the European market through lower or zero import tariffs on a wide range of Thai products, increasing exports of agricultural products, food, automobiles and auto parts.

The FTA is also expected to enhance Thailand’s attractiveness as an investment destination for European companies, helping the country maintain its competitiveness against regional rivals such as Vietnam and Singapore, both of which already enjoy more advanced trade arrangements with the EU.

According to the Trade Policy and Strategy Office, the EU is Thailand’s fourth-largest trading partner.

In the first quarter of 2026, total bilateral trade reached $12.2 billion, up 13.6% year-on-year.

The government and the opposition both expressed concern about Thailand’s financial status when the finance minister presented his 2027 budget bill to parliament on Monday.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas told the parliament that the government planned to spend 3.79 trillion baht in fiscal 2027 and it would again be a deficit budget because the government must stimulate the economy.

Mr Ekniti said fixed and necessary expenses of government are rising and the remaining investment budgets are falling.

He said economic stimulation is necessary. Public debt is approaching the statutory ceiling of 70% of gross domestic product. As of March 31, the public debt stood at 66.4% of GDP. The treasury balance was 340 billion baht.

The situation affects the long-term fiscal position of the country. To cope, the government must reduce the fiscal deficit to a ceiling of 3% of GDP by 2029 to strengthen the country’s fiscal position. For fiscal 2026, the fiscal deficit is projected to remain at 4.4% of GDP.

‘The 2027 Budget Bill is aimed at supporting people and the economy and laying a foundation for the strength of the nation. Budgets are precisely planned, with transparency, to allow the country to survive the twin crises of energy prices and the cost of living,’ Mr Ekniti said.

Of the 3.79-trillion-baht 2027 budget, the government plans to spend 407 billion baht on security, 348 billion baht on competitiveness enhancement, 611 billion baht on human resources development, 960 billion baht on social equity, 137 billion baht on environment-friendly growth and 676 billion baht on the improvement of the government sector.

Mr Ekniti expected that next year Thai GDP would grow by 1.7-2.7% and inflation would run at 0.5-1.5%.

In reply, opposition People’s Party MP Sirikanya Tansakun said the government was unable to increase its revenue to cover its growing expenses and so it was forced to borrow almost every year.

According to Ms Sirikanya, investment has been cut by about 70 billion baht while fixed expenses rose by hundreds of billions of baht – mainly for the government’s contingency fund, and for pensions and welfare for civil servants.

Democrat Party leader Abhisit Vejjajiva said the 2027 Budget Bill reflected the long-standing structural problems of the country and the government would have to solve the problems and lay new foundations for national development.

At present, the government’s revenue was enough only for fixed expenses and debt repayment, while investment spending depended completely on loans, he said.

According to Mr Abhisit, the tax-to-GDP ratio is at only 14.6%, which is historically low, while people continuously wish for welfare programmes from the government. He urged the government to revamp the taxation system.

Investment budgets are down by 13% and there are few investment projects that meet national demand, especially disaster response and infrastructure development projects, he said.

Although the government insisted that public debt stood at 66% of GDP, it could breach the 70% ceiling in the near future through additional borrowing, Mr Abhisit said.

Unless the government significantly increases national revenue, in 5-10 years public debt could amount to 80-90% of GDP and that would have a long-term impact on the financial status and development of the nation, he said.