Category: The Bangkok Post

E-commerce pioneers have proposed that Thailand adopt Indonesia’s model of prohibiting sales of imported products priced less than US$100 on online platforms, aiming to safeguard local producers and raise imported product standards.

The industry leaders also called for the Customs Department to operate with greater transparency, as well as the creation of a unified digital customs system linked directly with e-commerce platforms.

Such a link would allow delivery duty paid (DDP) collection at checkout, ensuring transparency and preventing unexpected fees for buyers.

Local small and medium-sized enterprises (SMEs), brands, retailers and manufacturers would benefit from relief against predatory pricing and subsidised Chinese imports, ensuring a fairer competitive landscape, said the entrepreneurs.

The proposals are a response to the Customs Department’s plan to impose import duties on goods valued at less than 1,500 baht starting on Jan 1.

‘The new import duty rule is a positive. I hope the Customs Department operates transparently at every stage – from import to export – to reduce corruption,’ Pawoot Pongvitayapanu, honorary president of the Thai E-commerce Association, told the Bangkok Post.

Technology should be used to help manage the flow of goods, he said.

Moreover, to strengthen the competitiveness of local SMEs, policymakers should strictly enforce rules on product quality and safety, he said. Stricter enforcement would level the playing field for local entrepreneurs and ensure consumers receive reliable goods.

‘There is growing concern over the unchecked influx of cheap imports, which often bypass quality checks and undercut local sellers,’ said Mr Pawoot.

He said it would be great if Thailand adopted the Indonesian model that bans the sale of foreign products priced lower than $100 (about 3,200 baht) on online platforms.

Indonesia rolled out sweeping reforms to its e-commerce regulations to curb the dominance of foreign goods sold online and bolster domestic enterprises.

Mr Pawoot said the platforms should have measures to prevent price manipulation and should also be prohibited from selling their own house brands.

In addition, social commerce operators should not have their own payment systems, he said.

Closing a loophole

Paul Srivorakul, group chief executive of aCommerce, told the Bangkok Post the new import duty rules can close a long-standing loophole favouring duty-free low-value imports and ensure a level playing field for local manufacturers, retailers and SMEs.

‘The regulations also support a broader ecosystem of service providers from local production to logistics, retail and consumer services that creates a more self-sustaining domestic economy,’ he said.

The new import duty regulations will raise short-term prices for imported goods under 1,500 baht but will improve tax fairness and strengthen domestic production, Mr Paul said.

They will shift consumer spending towards Thai-made products and build a more sustainable internal market, which is healthier for the economy over time, he added.

Mr Paul said local SMEs, brands, retailers and manufacturers are the clear winners and they will gain immediate relief from predatory pricing, subsidised Chinese manufacturing and benefit from a much fairer competitive landscape.

For consumers, there is a trade-off. They will face higher prices and restricted access to ultra-cheap imports. This price increase could disproportionately affect low-income consumers who rely on imported bargains for basic necessities.

‘However, I believe this is a necessary cost for the collective good: strengthening Thai jobs, ensuring a safer and more compliant supply chain, and building a stronger local economy that generates long-term wealth for the country.’

Unified customs system

Mr Paul said the successful rollout of the new duty relies on making the major e-commerce platforms the official tax collectors.

This is a global best practice, shifting the administrative burden away from the Customs Department and onto the high-volume marketplaces.

He added that there needs to be a unified digital customs system linked directly to these platforms, allowing for DDP collection at checkout to ensure full transparency and avoid frustrating buyers with unexpected delivery fees.

He said the main risks lie in leakage and evasion with imported products. The authorities should anticipate cross-border sellers trying to bypass the rules through smaller social commerce channels (like direct selling on TikTok or Facebook), or complex product bundle and rebate schemes to stay above the 1,500-baht threshold.

Therefore, oversight must extend beyond just the big players and encompass the entire spectrum of online sales models, Mr Paul said.

The government may need to invest in smart data analytics and inter-agency cooperation to stay ahead of these evasion tactics, he added.

Thanawat Malabuppha, another honorary president of the Thai E-commerce Association, told the Bangkok Post that policymakers should clarify whether the new import tax will cover free zones as many Chinese products use such zones.

A free zone is a designated area for industrial, logistics and other business activities whereby raw materials, components and finished goods taken into the area are entitled to privileges on tax and customs duties.

Moreover, digital platforms need to be linked to the Thai Industrial Standard and Food and Drug Administration.

‘I think the new import duty can collect up to 10 billion baht considering that overall Thailand’s e-commerce market size is valued at 1 trillion baht,’ said Mr Thanawat.

Re: “Inhaler fuss ‘a lesson'”, (Opinion, Nov 3).

This brief Post opinion piece neglects many important points. For inhaler products, the FDA fails to require full disclosure of ingredients, instead allowing “other herbs” to be used. Therefore, health-conscious consumers do not know what they are putting into their bodies when using ya dom products. While the FDA apparently acknowledges the addictive properties and potential harm to the nervous system of inhalers, they do not cover the whole gamut of health harms, some of which are serious in the long term, and they fail to require relevant warning labels.

Perhaps foremost is the potential dysbiosis inhalers cause to the microbiome community of organisms that live in the sinuses and nasopharyngeal cavity. This is our first line of defence against pathogens, especially viruses, which often attack the body via airborne transmission. When such a truly essential and complex immune system component is constantly bombarded with strong chemicals and herbs, the delicate balance of beneficial and potentially harmful organisms is disrupted and can no longer maintain its essential function to protect humans from disease.

To relieve vertigo and syncope when they occur is useful, but there are countless ya dom addicts in this country. Substance addiction is never a good thing, and the FDA must jettison what has long been recognised as an antiquated approach to its regulatory role in favour of a modern scientific approach.

Michael Setter

Gaza sympathies

Re: “Begging to differ”, (PostBag, Nov 3).

“One wonders why more Muslims in the world have not stood up and offered help or refuge to the people of Gaza?”, Paul wrote in his letter recently published in PostBag.

Well, I can certainly understand their desire to stay in their home since evacuating it would almost certainly lead to Israel expanding its settlements to completely occupy the remaining Palestinian territory.

As for help, is Paul not aware that Israel put an embargo on aid to the Gaza Strip, and that the Israeli blockade continues even now? They have allowed only a quarter of the aid required to enter Gaza since the Oct 10 truce, much of it from neighbouring countries.

Tarquin Chufflebottom

Seasonal hope

Re: “Thailand now ‘the sick man of Asean'”, (Opinion, Oct 30).

Contributors to PostBag have suggested that the Post’s economic columnist, Chartchai Parasuk, was too pessimistic in his forecast of economic headwinds, and that “we” should dismiss the negative predictions while drawing on the inherent values that embody the Thai psyche, such as resilience and hard graft. I hope his optimism becomes a reality. Certainly, the poor souls toiling in the fields in my village could do with all the help available. Let’s hope the coming tourist season is a good one.

Ian Dann

Typhoon Kalmaegi was moving over the South China Sea early Thursday and will reach central Vietnam by Friday, before weakening and arriving in northeastern Thailand later the same day, according to the Meteorological Department.

Sugunyanee Yavinchan, director-general of the department, said the typhoon was located in the South China Sea, about 510 kilometres southeast of the coastal city of Quy Nhon in central Vietnam, at 4am Thursday.

Typhoon Kalmaegi killed at least 140 people and left another 127 missing after unleashing devastating flooding across the central Philippines, official figures showed on Thursday.

Ms Sugunyanee said the typhoon had wind speeds of about 150 kilometres per hour near its epicentre. But it will weaken into a tropical storm and depression as it passes over Laos.

The storm will reach Ubon Ratchathani in Thailand on Friday before becoming a low-pressure system.

Due to the influence of the storm, there will be more rain and isolated heavy to very heavy rain in the Northeast, the East, the Central Plains including Greater Bangkok, and the North from Friday to Sunday. Flash floods, runoff and overflowing waterways will be possible in those regions during the same period.

Ms Sugunyanee advised small boats to remain ashore instead of going out into the Andaman Sea on Thursday and Friday due to rough seas.

PTT Global Chemical Public Company Limited (GC), a global leader in the chemical industry and the chemical flagship of PTT Group, has officially announced the interest rate for its Thai Baht-Subordinated Hybrid Debentures with the issuer’s right to early redemption (‘Subordinated Hybrid Debentures’) at 4.40% per annum for the first five years and six months. The public offering is expected to take place during 27-28 November and 1-3 December 2025, through 12 financial institutions.

Amid ongoing global economic uncertainties and a downward trend in interest rates since early 2025, GC believes that its Subordinated Hybrid Debentures present an attractive investment alternative for those seeking long-term, predictable returns. Offering higher yields than deposits and ordinary debentures, this issuance represents a strategic move to strengthen GC’s capital structure, support sustainable growth and advance its High Value-Low Carbon business development. This initiative further reinforces GC’s position as a global chemical industry leader. Additionally, GC intends to offer this bond issuance as a New Year gift to retail investors.

The interest rate for the Subordinated Hybrid Debentures is set at 4.40% per annum for the first five years and six months. The subscription period is expected to be 27-28 November and 1-3 December 2025. Investors may subscribe through 12 financial institutions, both at branches and via online platforms. Weekend subscription is available at some financial institutions, as specified in the offering section of GC’s draft prospectus.

Mr Thitipong Jurapornsiridee, Executive Vice President – Finance and Accounting at GC, stated: ‘This issuance not only represents part of our capital management and deleveraging programme, but also a significant step towards enhancing GC’s financial strength in preparation for our long-term growth. It supports our strategic direction in developing high-value, low-carbon businesses.’

GC was assigned a notional long-term credit rating of AA- (tha) with a ‘Stable’ outlook from Fitch Ratings (Thailand) on 8 April 2025. At the same time, GC’s Subordinated Hybrid Debentures received a credit rating of A (tha) on 7 July 2025 – the highest credit rating for this type of instrument in Thailand, reflecting GC’s financial stability and investor confidence. These Subordinated Hybrid Debentures will be accounted for as 100% equity in accounting and will receive 50% equity credit from all of GC’s credit rating agencies.

Mr Thitipong further added: ‘This issuance helps enhance GC’s capital structure flexibility, positioning us to stand ready to seize new opportunities when activity in the petrochemical industry turns around. GC continues to execute its deleveraging strategy through asset monetisation to improve liquidity and asset management efficiency. This issuance also plays a vital role in maintaining our credit rating, aligning with GC’s capital structure management plan to support future sustainable growth.’

For this issuance, retail investors can subscribe with a minimum amount of 100,000 baht and in additional multiples of 100,000 baht. The subscription period is 27-28 November and 1-3 December 2025, through 12 financial institutions acting as joint lead arrangers, including Bangkok Bank, CIMB Thai Bank, KASIKORNBANK, Krung Thai Bank, Siam Commercial Bank, Kiatnakin Phatra Securities, Asia Plus Securities, Bank of Ayudhya, Krungthai XSpring Securities, Maybank Securities (Thailand), TMBThanachart, and Yuanta Securities (Thailand). Online subscriptions during weekends are available at some arrangers.

Currently, GC is in the process of filing the registration statement and draft prospectus with the Securities and Exchange Commission (SEC), which are not yet effective. For more information, please contact the following 12 arrangers:

Bangkok Bank Public Company Limited: at all branches (except Micro Branches), call 1333, or subscribe online via the Bangkok Bank Mobile Banking application (for individuals only).

CIMB Thai Bank Public Company Limited: at all branches, or call 02-626-7777.

KASIKORNBANK Public Company Limited: retail investors can subscribe via the online channel (https://www.kasikornbank.com/kmyinvest); non-residents can subscribe at the head office and branches, or call 02-888-8888 (press 869).

Krung Thai Bank Public Company Limited: at all branches, or call 02-111-1111, or subscribe online via the Krungthai Next application through Money Connect by Krungthai (for individuals only).

The Siam Commercial Bank Public Company Limited: at all branches, or call 02-777-6784, or subscribe online via the SCB EASY application (for individuals only), including InnovestX Securities Co., Ltd. as a sales unit of The Siam Commercial Bank Public Company Limited.

Kiatnakin Phatra Securities Public Company Limited: including Kiatnakin Phatra Bank Public Company Limited as the sales unit, Tel. 02-165-5555. Individual investors may also subscribe online via the Dime! application.

Asia Plus Securities Company Limited: call 02-680-4004.

Bank of Ayudhya Public Company Limited: at all branches, or call 1572.

Krungthai XSpring Securities Company Limited: call 02-695-5555.

Maybank Securities (Thailand) Public Company Limited: call 02-658-5050.

TMBThanachart Bank Public Company Limited: at all branches, or call 1428 (press #4) – booking open only to institutional investors – and at Thanachart Securities Public Company Limited as a sales agent of TMBThanachart Bank Public Company Limited.

Yuanta Securities (Thailand) Company Limited: call 02-009-8351-56.

Note:

The registration statement and draft prospectus have not yet become effective, as they are under consideration by the Securities and Exchange Commission (SEC).

The allocation of the debentures is at the discretion of the arrangers as deemed appropriate.

Disclaimer:

Investments carry risks. Investors must study and understand the product characteristics, return conditions and associated risks before making an investment decision.

Investors can find more details in the information filing and draft prospectus at www.sec.or.th.

Global crude oil and gas prices are expected to keep falling next year, easing the financial burden of the debt-ridden Oil Fuel Fund, says the Oil Fuel Fund Office (Offo).

The downward trend is projected to continue from this year when key energy prices remained muted due to various factors on the demand and supply sides.

“Analysts expect the global economy not to recover significantly next year,” said Pornchai Jirakulpisan, the Offo’s director for policy and strategy, citing economic uncertainty as a key reason behind a drop in energy prices next year.

In 2026, Dubai crude oil reference prices are expected to range from US$60-70 a barrel. Under the Platt price benchmark, diesel prices should stand at $75-85 a barrel while gasohol prices will be $70-80 a barrel.

The Saudi Aramco reference prices for liquefied petroleum gas (LPG) are estimated at $460-500 per tonnne.

As of Oct 30, the crude oil price was $70.6 while diesel and gasoline prices were $87.7 and $80.9 a barrel, respectively. LPG was priced $548 a tonne.

Mr Pornchai attributed the low energy prices in 2025 partly to the Opec and its allies’ unsuccessful efforts to reduce production to boost oil prices and the milder winter that will lead to lower energy demand.

Lower energy prices enable authorities not to subsidise oil prices through the Oil Fuel Fund. This should reduce the debt it owes to financial institutions to 28 billion baht by the end of this year, down from 31.8 billion baht at present.

In another development, a new power development plan (PDP) drafting panel has been established, following a nearly seven-year delay, said the Energy Policy Administration Committee (Epac).

The panel, chaired by Thosaporn Sirisamphan, former board chairman of the Bank of Thailand, the Tourism Authority of Thailand and PTT Plc, will work on the 2026 PDP, aimed at outlining electricity demand and supply plans that better match Thailand’s transition to clean energy.

The 2026 PDP will replace the 2024 PDP, scheduled for enforcement from 2024 to 2037. Its predecessor was scrapped due to the need to adjust some key energy issues and the change to the new government.

Epac also resolved to maintain the LPG price at 423 baht per 15-kilogramme cylinder under the state price subsidy programme until Dec 31, extended from the previous expiry date of Nov 30.

The Customs Department is preparing to impose import duties on goods valued less than 1,500 baht (the de minimis value) starting Jan 1 next year to create fair competition for domestic businesses.

According to Phantong Loykulnanta, director-general of the Customs Department, this initiative is part of the department’s policy under the government’s “Quick Big Win” framework.

The measure is expected to generate about 3 billion baht in additional customs revenue, based on import values of items priced less than 1,500 baht that were previously exempt from value-added tax (VAT) and import duties.

In July last year, the department began collecting VAT on imported goods valued less than 1,500 baht, which helped increase its VAT revenue by 2 billion baht, while import duties were exempt.

According to the department, commencing Jan 1, 2026 import duties will also be collected on de minimis value goods with import values starting from 1 baht to ensure an equal playing field for domestic producers and foreign importers.

Mr Phantong said the department will meet on Friday with major online sales platforms Shopee and Lazada, which are among the largest importers of low-value goods, to discuss operational procedures for implementing the import duty collection.

To ensure the feasibility of collecting duties on low-value goods, of which hundreds of millions are imported each year, the department plans to require online platforms that import these goods to declare the import value and tariff classification of each item, enabling customs to assess the applicable import duties.

If online platforms fail to provide this information to the department, customs clearance for their goods may be delayed, he said.

In the long term, the department plans to amend relevant laws to make the collection of import duties on low-value goods more convenient by introducing a flat-rate system, under which each parcel will be taxed at a predetermined rate, said Mr Phantong.

“Based on our assessment, imports valued less than 1,500 baht totalled around 30 billion baht last year. With an average import duty rate of 10%, this measure could increase revenue by about 3 billion baht,” he said.

Several countries including the US have begun collecting import duties on low-value goods, with online platforms responsible for remitting taxes to customs authorities, said Mr Phantong.

In addition, the Customs Department unveiled two other measures known as “Trade Enabler” and “Social Protector”.

The Trade Enabler measure includes: upgrading the Lat Krabang Customs House, which currently functions as an import checkpoint or inland container depot, to also serve as an export checkpoint; allowing transshipment of goods at Laem Chabang Port without requiring a new customs declaration by authorising a director-general announcement permitting automatic processing based on the ship’s manifest; and expediting tax refunds for exporters.

Under the Social Protector measure, the department plans to sign memorandums of understanding with online platforms that import goods to monitor and restrict the sale of illegal goods, or those requiring import licences.

Regarding the Thailand-US trade agreement, which requires Thailand to abolish reward payments to customs officers for seizing smuggled goods to prevent distortions in customs operations, Mr Phantong said this provision in the Customs Act of 1926 would require a legislative amendment.

However, as a short-term measure he said he would issue a regulation stipulating that executives at Level 8 and above are ineligible to receive financial rewards from tax evasion seizures in order to prevent conflicts of interest.

Prime Minister Anutin Charnvirakul has warned that he may dissolve the House of Representatives before Jan 31 if a no-confidence motion is submitted against his government, asserting he will not allow political opponents to “attack the government for free”.

Speaking during an interview session at the “Thailand’s Next Frontier: A National Economic Vision” forum on Wednesday, Mr Anutin was asked whether he still intended to dissolve the House within four months, as agreed in the memorandum of agreement (MoA) with the People’s Party (PP).

He said that timeframe was a commitment made to the PP as both sides believed dissolving parliament and returning power to the people through a general election would be the most appropriate course of action given the political situation at the time.

Mr Anutin elaborated by saying that, although the PP has more MPs, it lacks a prime ministerial candidate.

Therefore, both parties agreed to follow parliamentary procedure and restore the mandate to the electorate, leading to the signing of the MoA.

When asked whether he still intended to adhere to this timeline, Mr Anutin confirmed his commitment.

“I have never changed my position. The People’s Party helped make me prime minister, and I must honour that promise. Once the four-month period ends, the House will be dissolved.”

Addressing rumours that such a dissolution could come earlier if a no-confidence debate were to be initiated, Mr Anutin said the situation would be assessed in due course.

“We need to consider the timing and purpose of any no-confidence debate,” he noted.

“Parliament is scheduled to reconvene in December, and I already intend to dissolve the House on Jan 31. I won’t let anyone attack the government for sport or for free,” he said.

“If it becomes a political game and the government cannot play along, then we’ll simply dissolve the House — it’s only a month earlier, and it won’t make much difference.”

When asked whether he and his Bhumjaithai Party (BJT) are ready for the next general election, Mr Anutin replied that he has been ready since the day his party was removed from the previous government.

He added that, during the first BJT meeting after it joined the government in 2023, he had already instructed members to prepare for an election at any time, reminding them that “an election can happen any day — if it were held tomorrow, we must be ready”.

Asked whether he is ready to serve as prime minister again, Mr Anutin responded by saying: “Why not? Being prime minister isn’t bad at all. I’m already serving as the prime minister now.

“Before I accepted this position, I was hesitant and uncertain,” he said.

“But once in the role, I realised how much can be done for the country with the authority of a prime minister.

“Whether the term is long or short doesn’t matter — what matters is doing good while in office,” Mr Anutin continued.

Meanwhile, PP list-MP and deputy leader Wiroj Lakkhanaadisorn said dissolving the House before Jan 31 is entirely the prime minister’s prerogative. He said he had no intention of hindering moves to amend the constitution.

“At the very least, we have tried. We have consistently said that this constitution has fundamental problems,” he said.

Authorities say they believe 42 Chinese nationals who were arrested at a resort in Chanthaburi province on Tuesday night were preparing to cross into Cambodia to join a call centre scam operation.

A team of officers from the Chanthaburi Immigration Office, provincial, local and tourist police and the Chanthaburi Marine task force raided the resort in tambon Thap Sai of Pong Nam Ron district at 8pm on Tuesday after being alerted to a large group of Chinese checking in under suspicious circumstances.

The team searched 11 rooms and found 42 Chinese nationals who had recently arrived from northern Thailand and checked in on Tuesday afternoon. The group was preparing to cross the border into Cambodia.

The raid uncovered a large amount of electronic equipment, suggesting the group might be part of a transnational cybercrime network.

Seized were 215 mobile phones, 11 laptops, cash totalling 807,000 baht, 10 Myanmar SIM cards, flash drives and notebooks containing records.

Only seven of those detained were found to have passports. Only three of them contained valid visas and one had an expired visa. The remaining 35 people lacked passports.

Police have charged 38 people with illegal entry. The four others were charged with related offences. All were handed over to investigators at the Pong Nam Ron police station for further legal proceedings.

Immigration police said further investigations were under way to identify the masterminds behind the operation. The aim is to determine whether the group was linked to a transnational scam network and/or a human trafficking syndicate using Thailand as a transit point.

Authorities in Myanmar have stepped up crackdowns on scam gangs in recent weeks, while some arrests have also been made in northern Thailand. It has been speculated that other groups might be packing up and heading for Cambodia as a result.

ONE Championship’s blockbuster ONE 173 event in Tokyo has suffered a blow, with Oumar ‘Reug Reug’ Kane forced to withdraw from his heavyweight MMA world title rematch against Anatoly Malykhin after being injured in a ‘serious’ car accident in Dubai.

The Bangkok Post understands the Senegalese star was hospitalised following the incident and has been unable to train in the final stretch of his fight camp.

His team provided pictures of the 33-year-old in hospital but wished to keep other details of the accident private.

‘We wish Reug Reug a swift and full recovery,’ ONE Championship said in a social media post on Thursday morning.

Officials also confirmed to the Bangkok Post that Malykhin is off the card, and no replacement fight will be added.

The Russian two-division champion had been targeting revenge after losing his heavyweight belt to Reug Reug via a controversial split decision in Bangkok last year.

The cancellation is the latest disruption to ONE’s November 16 return to Ariake Arena, which has already seen multiple withdrawals.

Last week, Jonathan Haggerty pulled out of his bantamweight Muay Thai title defence against Nabil Anane after sustaining a partial tear in his right shoulder during camp on Koh Samui. As a result, Anane will now move up to featherweight to face Japanese debutant Hiromi Wajima, the former K-1 super welterweight champion, in a kickboxing bout.

In another change, India’s Ritu Phogat was forced to withdraw from her atomweight MMA clash with Itsuki Hirata due to a knee injury. Japan’s Chihiro Sawada has stepped in to replace her.

Despite the setbacks, ONE 173 remains one of the promotion’s most ambitious shows of the year, featuring five world title fights, including Rodtang Jitmuangnon vs Nong-O Hama for the vacant flyweight Muay Thai crown and Superbon vs Masaaki Noiri to unify the featherweight kickboxing belts.

But the highly anticipated heavyweight rematch between Reug Reug and Malykhin – one year after their controversial encounter at Lumpinee Stadium – will now have to wait.

All airlines under AirAsia will be consolidated under the new AirAsia Group by next month after the completion of Capital A’s restructuring, with an aim to become the world’s first low-cost carrier with an entire fleet of narrow-body aircraft.

Tony Fernandes, chief executive of Capital A Bhd, said two distinct companies would eventually be formed — a unified AirAsia group for airlines, and Capital A for operating non-aero businesses.

AirAsia X will be renamed AirAsia Group to operate seven airlines, focusing on operating narrow-body aircraft with multiple hubs in Southeast Asia.

Its upcoming fleet includes long-range A321XLRs, while the group is also planning to build new hubs in the Middle East and Europe.

He said all airlines would remain distinct legal entities, of which AirAsia airlines’s operation in Thailand will be merged.

Mr Fernandes said the group has cancelled the outstanding orders of wide-body Airbus A330s, and will retire all of this type of aircraft within the next 5-6 years.

To expand AirAsia further in this region, the group is in discussions to launch the AirAsia airline in Vietnam, but has no plans to enter Singapore at the moment, he said.

In 10 years, it aims to have over 600 aircraft in service, up from 255 aircraft this year, said Mr Fernandes.

This could allow the group to serve 155 million passengers, up from roughly 68.8 million, reaching 175 destinations, up from 143 destinations.

Meanwhile, Capital A will operate five companies, including ADE, an engineering company which has already set up its entity in Thailand and is now looking to build new hangars and line maintenance facilities in the country.

The other four are logistics operator Teleport, online travel platform MOVE, food and beverage business Santan, and brand licensing and IP business AirAsia Next.

Mr Fernandes said that prior to the pandemic, the group gained the majority of its revenue from airlines, but it has now transformed itself into a vast ecosystem.

This week, Capital A also signed a letter of intent (LOI) with Bahrain’s Ministry of Transportation and Telecommunications to study the opportunity of establishing the country as a hub in the Middle East.

Mr Fernandes said this marks the beginning of a long-term partnership to build a crucial connection between Southeast Asia and one of the fastest-growing aviation regions in the world.

The LOI sets out a comprehensive framework for deeper aviation and economic cooperation between Capital A and Bahrain.

It outlines multi-faceted collaboration across future airline operations, cargo and logistics, maintenance capabilities and talent development.