Category: The Bangkok Post

Siam Cement Group (SCG), Thailand’s largest cement producer and industrial conglomerate, has raised concerns that prolonged war in the Middle East could drive up global energy costs and disrupt raw material supplies, posing significant challenges to its operations.

Chief executive Thammasak Sethaudom said that if instability continues until this September, global oil reserves could be affected, leading to higher operating costs across industries.

“The peace talks have yet to reach a final conclusion, so there is still risk for global energy prices, crude oil and petrochemical raw materials such as naphtha,” he said.

The warning comes after Washington and Tehran signed a memorandum of understanding aimed at ending hostilities between the US-Israel alliance and Iran, including efforts to halt fighting in Lebanon.

However, renewed clashes and Israeli strikes in Lebanon have prompted Iran to reconsider closing the Strait of Hormuz, a critical waterway that had recently reopened, according to media reports.

Before the war, about 20% of global oil and liquefied natural gas shipments passed through the strait.

SCG has already felt the impact of supply chain disruptions.

The company was forced to temporarily shut down its Long Son Petrochemicals facility in Vietnam and its olefins plant in Rayong, Thailand, due to restricted shipments of raw materials.

Mr Thammasak said that SCG aims to reopen these facilities in the third or fourth quarters of this year.

To mitigate risks, SCG is diversifying its supply sources. More than half of its imported raw materials now come from regions outside the Middle East, including the Americas and Africa.

The company is also accelerating efforts to explore partnerships with Chinese firms to expand into China’s vast market.

Chinese imports, which account for around 20% of products in the Southeast Asian market, have intensified competition for regional manufacturers, including SCG.

“SCG plans to be partners with Chinese companies, and we want to export our products there,” Mr Thammasak said, adding that the firm’s manufacturing footprint in Thailand, Vietnam and Indonesia offers opportunities for Chinese investors seeking entry into Southeast Asia.

SCG also operates a packaging business.

CG Capital Advisory Ltd, the private equity arm of Central Group, plans to launch its second mixed-use hotel and residential project in Phuket within two months, capitalising on strong demand on the island.

Phoom Chirathivat, managing partner and co-founder of CG Capital, said the hotel and holiday home market in Phuket remains robust, particularly after the pandemic.

“We take a long-term view on Thailand and remain confident in the country’s tourism potential and its appeal as a destination for foreigners seeking a second home,” he said.

“Amid growing geopolitical uncertainty, Thailand enjoys a significant competitive advantage as a safe and attractive destination for both tourism and investment.”

Mr Phoom said Phuket continues to offer abundant investment opportunities, prompting the company to proceed with a second project after the successful launch of its first development, The Standard Residences Phuket Bang Tao, two years ago.

The branded residential project registered 85% sales, with Thai and foreign buyers equally accounting for 50%. The project is scheduled for completion and unit transfers by the end of this year.

The second project is located in the Layan Beach area, comprising a hotel and a branded residential development, featuring both condominium units and villas.

Mr Phoom said the company is also exploring a second residential project in Bangkok and plans to acquire a plot in a prime location for development.

“We launched InterContinental Residences Bangkok Asoke shortly after the earthquake in March last year, but still received a strong response, with 60% of the project’s 88 units already sold,” he said.

Mr Phoom attributed the solid outcome to three key factors: the convenient location on Sukhumvit Soi 16, the recognised InterContinental brand, and the project’s focus on large units.

All units are designed with generous living spaces, a segment that remains relatively scarce in the Sukhumvit area, helping to differentiate it from competing projects.

With a total sales value of 5.5 billion baht, InterContinental Residences Bangkok Asoke is expected to comprise a 32-storey tower with 88 units.

Unit sizes start from 139 square metres for two-bedroom residences, with prices starting from 44.8 million baht, or around 322,000 baht per sq m.

Mr Phoom said Thailand’s ultra-luxury residential market continues to demonstrate resilience and has outperformed many global markets, supported by a growing wave of global wealth migration.

According to wealth advisory Henley and Partners, the number of wealthy individuals relocating worldwide increased to 142,000 in 2025 from 51,000 in 2013, rising 178% over the past 12 years.

“While many property markets around the world are facing a slowdown, Thailand continues to maintain its position as a world-class destination with strong fundamentals and broad appeal,” he said.

“Buyers have not disappeared, but they have become more selective and discerning in choosing assets that can preserve value and support their lifestyles over the long term.”

He said affluent buyers are increasingly prioritising quality, brand reputation, location and long-term asset resilience when making decisions.

This trend has benefited branded residences, which offer internationally recognised hospitality standards, professional management and a lifestyle proposition that appeals to global investors and second-home buyers.

“Thailand’s strengths in tourism, healthcare, international education and lifestyle continue to attract wealthy individuals seeking a second home or long-term residence in Asia, particularly amid rising geopolitical uncertainty in other parts of the world,” Mr Phoom said.

The Bank of Thailand has upgraded its GDP growth forecast for 2026 to 2.3% from 1.5%, attributed to strong exports, government stimulus and easing geopolitical tensions in the Middle East.

The moves comes as the central bank’s Monetary Policy Committee (MPC) on Wednesday voted unanimously to maintain the policy rate at 1%, as the market expected.

The committee slashed the GDP growth forecast for 2027 to 1.8% from 2% due to the base effect, said MPC secretary Don Nakornthab.

“Thailand’s economic expansion is projected to be stronger than previously assessed, but growth remains low and uneven,” Mr Don told a briefing.

Growth was supported by merchandise exports and private investment associated with the technology and artificial intelligence cycle, he said.

According to the central bank, government measures to alleviate the impact of the energy crisis and an improvement in the Middle East war would also support Thai economic expansion this year.

The impact of the conflict on the manufacturing and tourism sectors has been less severe than previously anticipated, with large businesses demonstrating greater adaptability than anticipated, noted the regulator.

“The Dubai crude oil price has dropped below the central bank’s average of US$100 for the year, while businesses have identified new sources of raw materials and adjusted their transport routes,” said Mr Don.

However, small and medium-sized enterprises continue to face limitations in adaptation and are constrained by intense competition.

Most households are pressured by decelerating income growth and rising living costs, which will weigh on private consumption once government relief measures phase out, noted the central bank.

Inflation is expected to rise due to supply-side factors, but will subsequently fall once these pressures gradually ease, he said. Headline inflation in 2026 and 2027 remains in line with the previous assessment, averaging 2.8% and 1.4%, respectively.

Mr Don said headline inflation is expected to peak at 4.5% in the fourth quarter of this year, attributed to energy prices and El Niño effects. However, consumer prices would not rise 5% for the year, as the central bank earlier estimated.

For the remainder of 2026, inflation could exceed the target range of 1-3% due to the pass-through of energy and production costs, before declining in 2027 given the dissipation of supply-side pressures and the effect of a high base in 2026.

While inflation has increased due to supply-side factors, the MPC will continue to monitor its outlook and associated risks going forward, he said.

NO NEED FOR A HIKE

Nuttaporn Triratanasirikul, deputy managing director of Kasikorn Research Center (K-Research), said the market widely expected the central bank would keep the rate unchanged at this month’s meeting, as elevated inflation seems to be temporary.

The think tank anticipates the Thai policy rate will stay at 1% throughout the year.

“Oil prices have decreased, particularly West Texas Intermediate crude to less than $74 per barrel, easing concerns about inflationary pressure in the Thai economy,” she said.

In addition, stimulus programmes have been introduced to prop up the subdued economy.

“Clearly, there will be no more rate cuts, but an increase seems unnecessary for now with oil prices dipping,” Ms Nuttaporn told the Bangkok Post. “A hike could exacerbate the fragile Thai economy.”

According to K-Research, government stimulus through the emergency borrowing of 400 billion baht could lift the economy by 0.3-0.6 percentage points. The centre projects Thai GDP growth of 2% this year thanks to the 2.8% year-on-year uptick in the first quarter.

HOLD FOR LONGER

Pundits anticipate the policy rate could be maintained at 1% for at least one year to support the economic recovery, resulting in a prolonged interest rate differential between the US and Thailand and contributing to further short-term weakness of the baht.

The baht plunged to test the new 13-month low of 33.40 to the greenback. The Thai currency has depreciated 5.5% this year.

The CME FedWatch Tool prices in two rate hikes this year, while Bank of America predicts the Federal Reserve could enact up to three increases, delaying rate cuts for another two years.

“If US rates stay higher for longer or rise while Thai rates remain on hold, the widening US-Thailand yield gap could drive capital outflows from Thailand towards higher and safer US yields, putting depreciation pressure on the baht,” said Therdsak Thaveeteeratham, executive vice-president of Asia Plus Securities.

Koraphat Vorachet, assistant managing director and head of research at Krungsri Securities, anticipates the central bank will keep the policy rate unchanged until the end of 2027 to drive private investment.

Raising the interest rate in Thailand would be more difficult than in the US or other countries given that the economic recovery remains fragile, he noted.

The Department of Special Investigation (DSI) has summoned People’s Party MP Pawoot Pongvitayapanu for questioning about a high-profile foreign-exchange fraud case, while the politician insists he is ready to prove his innocence.

Justice Minister Rutthapon Naowarat said on Thursday that Mr Pawoot was among many people being called in for questioning. Mr Pawoot was ordered to meet investigators on July 2 but he can do so earlier if he is ready, the minister said.

The DSI has officially taken over the case based on the large scale of the operation, and its officials will need some time to prepare charges as they have to review as many as 70,000 financial transactions, according to Pol Lt Gen Rutthapon.

The minister said investigators would determine whether videos featuring Mr Pawoot discussing forex trading constituted investment promotion, with the courts making the final decision.

The investigation followed police raids on 24 locations in Bangkok and nearby provinces last week, with many people including a politician and a well-known entertainer suspected of being involved in investment and forex scams.

Officials impounded 65 million baht in cash, gold and silver bullion, ornaments, luxury bags, guns, cryptocurrency hardware wallets, luxury cars and computers.

Mr Pawoot’s name was among those that had come up during the investigation, officials said, while stressing that he had not been formally accused of any wrongdoing.

Mr Pawoot, a list-MP with the People’s Party, said at parliament on Thursday that he had nothing to do with any scams or any Ponzi schemes and was collecting evidence to prove his innocence.

He said he was gathering data dating back five years and it would take four to five days. When he obtained enough evidence, he would meet with DSI interrogators, he said.

Mr Pawoot, who was a well-known technology and e-commerce businessman before he entered politics, said he traded gold futures as an individual investor and never persuaded others to invest with any investment platform.

Asked about reports of 28 million baht transferred into his accounts in 14 transactions of 2 million baht each, the MP said he would explain the transactions after receiving complete banking records.

Commenting on a video showing him discussing QRS Global, one of the firms under investigation, Mr Pawoot said he was only describing his personal trading experiences and was not promoting investment with the platform.

Mr Pawoot has been the point man for the People’s Party in its heavy scrutiny of the government’s 1.6-billion-baht AI Passport project, raising questions about transparency, costs and technical merits.

The government has denied that naming the opposition MP in connection in the forex trading case amounted to political persecution, but even some frustrated members of his own party have said it’s time for him to clear the air.

The intensified crackdown on illegal nominee structures is unlikely to derail foreign demand for resort and luxury residential properties, although buyers are becoming more cautious and paying closer attention to legal ownership arrangements, according to property technology group Juwai IQI.

The enforcement measures are not expected to significantly affect overall foreign demand for these properties in Thailand, it said in its analysis report.

The government’s enforcement campaign has raised concerns among some market observers that foreign demand for villas in destinations such as Phuket and Samui could weaken amid heightened regulatory scrutiny.

However, the impact has so far been limited, with enforcement measures yet to significantly alter market behaviour or dampen foreign demand in these resort property segments.

“The crackdown seems to focus on people working illegally in Thailand rather than expats living in villas,” said Kashif Ansari, co-founder and group chief executive of Juwai IQI.

“The rules haven’t changed. They’re just stepping up enforcement. Anyone who has followed the law will have no problem.”

Mr Ansari said foreign buyers generally welcome greater transparency and legal certainty, as this helps to protect long-term investments.

“Ultimately, buyers like to operate in well-regulated, transparent markets where their investment is protected. We find Thailand’s focus on compliance reassuring,” he said.

BUYERS SEEK CLARITY

While the crackdown has not triggered a withdrawal of foreign demand, it has prompted more enquiries about ownership structures.

“Our agents are getting more questions about legal arrangements than they did in the past,” Mr Ansari said. “Some buyers want to clearly understand in advance how it will work, just to make sure they’re not getting into trouble. We think that’s a good thing.”

He added that the company has not seen foreign buyers walk away from pending purchases or abandon deposits because of the enforcement measures.

“Buyers work with good lawyers and agents and make sure they’re doing things legally,” he said. The company has also not observed existing foreign villa owners rushing to sell assets ahead of possible audits.

STRONG RESORT DEMAND

According to Juwai IQI’s estimates, foreign participation remains dominant in Thailand’s luxury villa market.

“There isn’t an official figure for foreign villa ownership because foreigners can’t hold land in their own name and long-term leases aren’t tracked by nationality,” Mr Ansari said.

“Our best estimates are that, in Phuket, around three in five property transactions involve a foreign buyer or lessee,” he said.

In Samui and Phangan, foreign demand is even more pronounced. It estimates that of every 10 villa buyers, more than nine are foreign.

It also believes that between 2,400 and 3,000 villas in Phuket, and a similar number across Samui and Phangan, are ultimately foreign-owned or leased.

Mr Ansari stressed that the figures refer primarily to the luxury resort villa segment rather than conventional housing, which remains overwhelmingly Thai-owned.

CHINESE DEMAND STRONG

The company said Thailand continues to rank among the most attractive overseas property destinations for Chinese buyers.

According to Juwai IQI enquiry data for the first quarter of 2026, Thailand was the second-most popular destination globally among Chinese property seekers.

“Chinese buyers rank Thailand as their second-most popular destination globally,” Mr Ansari said.

More than half of enquiries were for homes valued at US$750,000 or below, while 27.5% targeted properties priced above $2 million.

“Nine in 10 Chinese buyers say their purchases are both for their own use and for investment,” he said.

Within Thailand, Bangkok remains the most popular destination, followed by Phuket, Chiang Mai, Pattaya and Hua Hin.

The company said it has not observed any meaningful shift of Chinese capital from Thailand to competing destinations such as Malaysia.

“Malaysia is certainly an attractive market, but we haven’t noted any shift in buyers from Thailand to Malaysia, or the other way around,” Mr Ansari added.

LEGAL ROUTES IN FOCUS

Mr Ansari said foreign buyers currently have three main options: purchasing condominium units under freehold ownership, buying villas structured under condominium ownership, or entering long-term leasehold agreements.

“No buyer should believe that their lease can be automatically extended for 90 years,” he said.

“Also, never enter into a nominee arrangement where Thai shareholders hold the land but you actually control it. That is exactly what the authorities are enforcing against now.”

He added that the government’s ongoing consideration of reforms to increase the foreign ownership quota in condominiums from 49% to 75% and extend leasehold terms from 30 years to 99 years could further strengthen Thailand’s competitiveness.

“My own view is that some version of these changes could arrive in the next 12 to 24 months,” he said.

PHUKET MARKET RESILIENT

Market sentiment in Phuket remains positive, despite the heightened scrutiny.

Nasupha Suwansri, vice-president of IQI Phuket, said demand for luxury villas remains strong across the island.

“Foreign buyers don’t come to Phuket expecting to break the law when they buy a home. They want to follow the rules, and therefore the crackdown isn’t worrying them,” she said.

Ms Nasupha said Phuket’s appeal extends well beyond tourism, attracting long-term residents seeking an international lifestyle.

“Phuket is no longer just a holiday destination. It has become a truly international place to live, with a strong mix of Thai culture and global communities,” she said.

Many foreign families are drawn by international schools, quality healthcare, wellness facilities, marinas, golf courses, and direct international air connections.

She noted that demand remains particularly strong for pool villas priced between 15-30 million baht near international schools, while investors and second-home buyers typically seek properties worth 30-70 million baht in areas such as Bang Tao, Layan, Laguna, Kamala and Rawai.

“The crackdown is not stopping serious buyers,” Ms Nasupha said. “It is making them ask better questions and work more carefully with agents and lawyers. Foreign buyers want to follow the rules, and Phuket remains one of the strongest lifestyle and investment destinations in Asia.”

The Royal Thai Air Force (RTAF) has dismissed Cambodian allegations that Thai fighter jets left unexploded bombs during recent hostilities, insisting that all missions were carried out successfully and no ordnance remains.

ACM Prapas Sornchaidee, the assistant commander-in-chief of the air force, was responding on Wednesday to claims made by Phnom Penh after it released images of an object resembling an Mk-84 bomb, saying it was evidence of an attack carried out by Thai forces.

Photographs alone cannot be used to confirm the origin of a weapon or identify the party responsible without technical and forensic verification conducted according to international standards, said ACM Prapas, who is also the director of the Joint Information Centre on the Thailand-Cambodia Situation.

Based on the object’s external appearance, it could possibly belong to the Mk 84 family of 2,000-pound bombs, or it may be an older M118 3,000-pound bomb, which was widely used by the United States military during past wars.

However, ACM Prapas said that determining the weapon’s origin cannot be done solely through visual inspection.

‘Displaying an object publicly and claiming it belongs to one side without verifiable technical evidence is merely an allegation, not proof,’ he said.

He added that the RTAF operates a battle damage assessment system that uses imaging and tracking technology to closely monitor the deployment of weapons from its F-16 and Gripen fighter aircraft.

According to assessment results, every weapon used during RTAF operations functioned properly, detonated on target and caused verifiable damage within military areas, and no evidence was found to support claims that a bomb was left unexploded, he said.

ACM Prapas also pointed out that the body and tail fins of the object shown in the images appeared largely intact despite the fact that air-dropped bombs are normally subjected to massive impact forces.

He noted that even in cases involving dud bombs, detailed examinations are still required to confirm the type, origin and chain of possession, reaffirming that conclusions cannot be reached solely through images.

Adm Phairoj Fueangchan, the commander-in-chief of the Royal Thai Navy Adm Phairoj Fueangchan, on Wednesday visited naval personnel undergoing training as royal barge rowers and reviewed preparations for the upcoming royal barge procession in November.

The ceremony is being organised to celebrate the auspicious occasion of the fourth-cycle (48th) birthday of Her Majesty the Queen on June 3. The royal ceremony to present kathin robes to monks will take place at Wat Arun on Nov 6.

The inspection took place at the Royal Barge Division under the Small Craft Squadron, Naval Transportation Department, in Bangkok Noi district.

The training of royal barge rowers is a vital component of the navy’s preparations for the historic procession along the Chao Phraya River in the capital.

Specialised training courses have already been held for 58 royal barge captains and 104 helmsmen, equipping them with knowledge of traditional rowing techniques and ceremonial procedures. Upon completion, they will serve as instructors for the rowers assigned to their respective units.

The training phase focuses on land-based rowing drills, known as ‘bench training’, designed to familiarise rowers with the weight of the oars, correct posture and synchronised movements.

This will be followed by on-water training to develop navigation and boat-handling skills before progressing to full-unit exercises aboard the barges. Formation training on the river will then be conducted ahead of rehearsal runs and the full dress rehearsal.

For this year’s procession, a total of 52 ceremonial vessels will participate. The formation will stretch 1,200 metres in length and 90 metres in width, organised into five columns and manned by around 2,200 personnel.

At the centre of the procession will be the royal barge Suphannahong, which will carry the monarch. Supporting vessels include the royal barges Narai Song Suban King Rama IX, Anekkachatphuchong and Anantanakkharat, as well as drum barges, police escort boats and royal guard vessels.

The ?Constitutional ?Court said Wednesday that it ?will ?issue its ruling on the ?legality of the government’s 400-billion-baht emergency borrowing decree on July ?9.

The ?cabinet on May 5 approved the emergency decree to borrow 400 billion baht, with 200 billion going to alleviate cost of living ?pressures arising from the Middle East war, and another 200 billion to be used to support the transition to renewable energy.

The opposition People’s Party had sought a court ruling on the decree under Section 172 of the Constitution. It argued that the prevailing situation did not meet the strict test of an ‘urgent and unavoidable necessity’ required to justify using an emergency decree instead of a standard parliamentary bill.

The party also said details about the energy transition spending were vague, and merited proper scrutiny by lawmakers.

Finance ?Minister Ekniti Nitithanprapas has maintained that the borrowing is necessary because higher energy prices impact everyone.

Public debt is currently around 66.4% of Thailand’s gross domestic product (GDP), below the 70% statutory ceiling, and the new borrowing would not breach the limit, Mr Ekniti added.

Bank of Thailand officials and independent economists have cautioned that the borrowing would significantly reduces the government’s capability to handle unexpected future economic shocks.

There is also scepticism over whether direct, short-term cash subsidies for low-income people and welfare recipients will adequately address deep-seated structural flaws in the economy.

Prime Minister Anutin Charnvirakul has called the borrowing ‘a tool to move the country forward and prevent economic weakening’.

A 42-year-old man was found dead in a cell at a police station on Wednesday after being arrested the night before for allegedly raping his 14-year-old stepdaughter.

Somjit Kaewjampa, a native of Khon Kaen province, was found dead at 5am on Wednesday in the Chat Trakan police station. A torn blanket was tied around his neck and fastened to a bar of his cell.

Police said Somjit had used a knife to force his 14-year-old stepdaughter to a hut in a forest in tambon Tha Sa Kae on Saturday. After the girl messaged her elder brother for help, police came to rescue her but her attacker had fled the scene.

On Tuesday evening local residents and village security volunteers captured Somjit in a forest in Nakhon Thai district. He was then brought to the Chat Trakan police station.

The investigation into the death is continuing.

The State Railway of Thailand (SRT) board has approved the hiring of consultants for two Red Line extension projects, a step expected to improve travel between Bangkok and suburban areas, including Rangsit and Salaya.

SRT acting governor Anan Phonimdaeng said the board meeting on June 18, chaired by Department of Highways director-general Piyapong Jiwatthanakulpaisan, approved Asian Engineering Consultants Corp Ltd to supervise construction of the Dark Red Line extension from Rangsit to Thammasat University’s Rangsit Campus. The contract, worth 166.73 million baht, is due to be signed on July 10.

The firm was selected for achieving the highest technical score and offering a competitive bid below the reference price.

Earlier on May 29 the board approved a 392-million-baht contract to hire a consortium led by TEAM Consulting Engineering and Management Plc (TEAMG), with MHPM Co Ltd and MAA Consultants Co Ltd, to supervise construction of the Light Red Line extension from Siriraj Hospital to Taling Chan and Salaya. The project includes three additional stations — Rama VI Bridge, Bang Kruai-Egat and Ban Chimphli — with the contract also set to be signed on July 10.

The SRT expects to issue a notice to proceed on July 15, with construction scheduled to take 36 months and completion planned for 2029.

Construction contracts for both extensions were signed on May 19. Unique Engineering and Construction Plc (UNIQ) secured the 6.057-billion-baht contract for the 8.84-kilometre Rangsit-Thammasat section, while the UT Joint Venture, comprising UNIQ and Trusty Construction Co Ltd, won the 14.72-billion-baht contract for the 20.5km Siriraj-Taling Chan-Salaya route.