Category: The Bangkok Post

Veolia, a global leader in resource management, has acquired all of GPSC’s 33.3% stake in Eastern Seaboard Clean Energy Company Limited (ESCE), a holding vehicle which owns 99.99% of Chonburi Clean Energy (CCE). With this acquisition, Veolia has increased its stake to 66.6% in CCE, a state-of-the-art non-hazardous solid Waste-to-Energy plant located in Thailand’s Eastern Economic Corridor.

In 2024, CCE generated 65,072 MWh of energy, equivalent to the annual electricity consumption of 260,000 households. CCE also avoided 24,294 tons of CO2 emissions. These impressive environmental contributions resulted from CCE’s strong operational performance. In 2024, CCE achieved a remarkable 92% availability rate (8,075 operating hours), surpassing the industry average for WtE plants. This achievement underscores the plant’s efficient design, effective management, and reliability in waste management.

In addition to reinforcing CCE’s position as a market leader in the waste-to-energy sector, Veolia, positioning itself as a leading operator of Waste-To-Energy in Thailand by leveraging its pristine operational track record, aims to expand CCE’s waste-to-energy business into waste-to-resource operations. This initiative will support industrial stakeholders in achieving resource reuse and advancing Thailand’s transition from a linear to a circular economy, thereby reducing waste and pollution. Veolia’s vision fully aligns with Thailand’s Industrial Waste Management framework, the Bio-Circular-Green Model, and the forthcoming Draft Industrial Waste Management Act.

‘This investment demonstrates Veolia’s determination to lead the transformation of waste management in Thailand. With over 170 years of global expertise, we are leveraging our operational excellence to further optimise CCE’s performance, diversify waste streams, and convert waste into valuable resources. This approach is fully aligned with Veolia’s GreenUp strategy – decarbonise, depollute and regenerate – and positions us as a key partner in supporting Thailand’s sustainability objectives and accelerating the transition of its industrial landscape towards a more circular and resilient economy,’ said Jerome Le Borgne, Country Head of Veolia Thailand.

The government’s economic stimulus measures, which are scheduled to be rolled out in the final quarter of this year, are expected to help boost business confidence and increase the demand for loans among small and medium-sized enterprises (SMEs).

Pichit Mitrawong, president of the Small and Medium Enterprise Development Bank of Thailand (SME D Bank), said confidence among SME entrepreneurs in the fourth quarter is expected to rise, while loan demand is likely to double compared to the third quarter.

He cited a joint survey conducted by the bank’s Research and Data Center and Excellent Business Management Co on “SME Entrepreneurs’ Confidence Index toward the Economy and Business in the third quarter of 2025 and Future Outlook,” which covered 500 SME entrepreneurs nationwide, across all industries.

The SME confidence index forecast for the fourth quarter of 2025 indicates a more optimistic business outlook, with the index rising to 80.6 compared to 67.1 in this year’s third quarter. This was driven by expectations of higher sales, supported by anticipated government policies to stimulate economic recovery, encourage investment, and promote business expansion, especially among SMEs.

Tourism confidence is likely to continue to grow with the arrival of high season, which will help boost domestic and international tourist spending.

Additionally, the SME confidence index for the fourth quarter of 2025 improved across all regions. The western region recorded the highest level at 90.0, followed by Bangkok and the metropolitan area at 86.9, and the northeastern region at 81.8. The index also increased across all business sectors, particularly tourism services, manufacturing, and construction, reflecting optimism about economic recovery towards the end of 2025.

In the third quarter of 2025, the SME confidence index stood at 67.1, up from 57.3 in the second quarter, supported by the “Tiew Thai Khon La Khrueng” co-payment scheme, which boosted orders, services, and business performance. The micro-enterprise group saw the greatest increase in confidence, benefiting from stronger domestic purchasing power and more widespread income distribution, aligning with tourism services which stood out as the strongest sector.

However, many entrepreneurs still expressed concern about the influx of cheap products from China, Vietnam and India, which threatens their business by taking market share and forces them to cut prices to stay competitive.

For the fourth quarter of 2025, SME loan demand is expected to rise compared to the previous quarter, both for working capital and investment purposes. Together, these account for over 42.2% of loan demand, up from 21.2% in the previous quarter. Tourism businesses in particular showed the highest increase in loan demand, reflecting their readiness to capture the opportunities of the high season, with micro-enterprises also showing rising demand for credit.

Mr Pichit added that in response to this demand, SME D Bank is prepared to provide support by offering loan products in line with government policies for all SME groups, especially tourism.

These loans will support investment, expansion, and improvement projects to meet the needs of the high season, enabling businesses to deliver products and services effectively to both Thai and foreign tourists. The bank will offer these loans at a special fixed low annual interest rate of 3% for the first three years.

The Government Pharmaceutical Organization (GPO) has officially launched its new GPO Metro Sky initiative, opening pharmacies at 14 BTS Skytrain stations in Bangkok to provide commuters with convenient access to quality health services and essential medications.

Dr Mingkwan Suphannaphong, managing director of the state enterprise, said the project aims to promote preventive care and reduce minor illnesses by integrating health services into daily city life.

The pharmacies will offer a full range of medications, medical supplies, herbal products and health items, all meeting the standards of the Pharmacy Council of Thailand.

The 14 BTS stations are: Chidlom, Asok, Phrom Phong, Sala Daeng, Chong Nonsi, On Nut, Ekkamai, Phra Khanong, Surasak, Saint Louis, Ploenchit, National Stadium, Mo Chit and Ari.

Services began on Tuesday. Each location is staffed by licensed pharmacists who provide consultations, medication management and health advice, supporting Thailand’s primary healthcare policy.

The outlets also participate in the universal coverage scheme, allowing patients with 32 minor symptoms to receive medication free of charge.

To enhance the customer experience, the GPO has introduced a membership system and integrated digital services such as Line OA and telepharmacy, along with dedicated consultation corners. These features allow customers to inquire about medications and receive personalised health guidance.

‘This initiative offers a new alternative for urban residents to access affordable, safe, and high-quality health products without the need to travel to hospitals,’ said Dr Mingkwan. The pharmacies are open daily from 7am to 8pm.

The continued appreciation of the baht against the US dollar, if left unaddressed, could weaken Thailand’s competitiveness in both tourism and exports relative to its regional peers, cautions SCB EIC, the research centre under Siam Commercial Bank (SCB).

Yunyong Thaicharoen, chief economist at EIC, said the baht’s strength is inconsistent with Thailand’s subdued economic fundamentals, warning that the baht may serve as an amplifier of external shocks, hurting export competitiveness and tourism recovery.

Amid the baht’s appreciation, the Vietnamese dong has depreciated by 3.5% against the dollar year-to-date. This divergence is expected to reduce Thailand’s competitiveness in exports and tourism.

“For example, a Chinese tourist visiting Thailand would face prices of goods and services roughly 4% higher than other destinations. If that tourist were to visit Vietnam instead, they would pay about 6% less on average, based on EIC’s simulator,” Mr Yunyong explained.

EIC projects the baht to strengthen further to 31.50-32 to the dollar this month and to 31-32 year-end.

Year-to-date, the baht has appreciated by 7.6% against the dollar — its strongest level in four years and the highest among regional peers.

This has led to the baht’s trade-weighted index to reach its highest level since the 1997 financial crisis.

The appreciation has been driven by both external and domestic factors, especially the weakening US dollar, higher gold exports amid rising global prices, a current account surplus and capital inflows into the bond market.

According to Mr Yunyong, foreign tourist arrivals remain well below last year’s level, but signs of a recovery are emerging. Chinese arrivals are still down year-on-year, though the contraction is narrowing. Returning tourists, however, are spending more cautiously.

Thailand also faces rising competition for Asian tourists, with overlapping target segments across regional peers. EIC maintains its forecast for international tourist arrivals in 2025 at 32.9 million.

In addition, EIC highlights concerns over the rising unemployment rate, particularly among new graduates, reflecting the impact of sluggish business expansion.

The unemployment rate for those aged 15-24 rose to 18.9% in the second quarter of 2025, up from 16.1% in the previous quarter.

Amid weaker economic growth and sluggish business expansion, employment has continued to slow, impacting the labour market. Businesses prefer hiring experienced workers over new graduates in response to the challenging economic conditions.

“AI disruption is another key factor contributing to the rise in youth unemployment, a trend that has become increasingly evident in the United States,” Mr Yunyong said.

Meanwhile, EIC has trimmed its forecast for GDP growth for 2025 to 1.8% from 2.0% previously, and anticipates a potential decline to 1.5% in 2026.

The Department of Lands (DoL) has compiled all court filings related to the Khao Kradong land dispute in Buri Ram province, but the Supreme Court never ruled that the land belonged to the State Railway of Thailand as the SRT lacked ownership rights, said Deputy Interior Minister Songsak Thongsri.

While delivering the new government’s policy statement in parliament yesterday, Mr Songsak stated that three court cases related to the land have concluded, with the DoL having revoked all land title deed applications connected to the land.

These applications were ruled unlawful as there were already residents who held valid title deeds living there, he said.

However, Mr Songsak said that the Supreme Court never ruled that the ownership of the land be transferred to the SRT, adding that the SRT was correct in opposing the issuance of ownership rights.

Regarding measures to revoke title deeds under Section 61 of the Land Code, he noted that such revocations must follow due legal processes, including investigations by officially appointed committees.

According to Mr Songsak, the SRT was asked to define its boundaries clearly, but its failure to do so rendered the revocations impossible.

He also revealed that the previous administration had formed an invalid committee to revoke title deeds for 995 plots of land in Khao Kradong.

However, Mr Songsak said that the committee has not done so despite reminders from him and the then-interior minister, Anutin Charnvirakul, who is now back at the ministry and the prime minister.

Responding to criticism from Prachachat Party MP Tawee Sodsong, who accused the government of trying to undermine the court’s authority, Mr Songsak reiterated that all actions were based strictly on court orders.

Pol Col Tawee claimed that the land had been ruled state property and criticised the government for failing to act decisively, alleging high-level interference and irregular transfers of key officials.

The debate in parliament escalated as Pol Col Tawee connected the issue to Mr Anutin, noting the prime minister’s ties to Buri Ram and implying conflicts of interest. This sparked a flurry of protests from MPs, especially from the Bhumjaithai Party, who argued that Pol Col Tawee’s comments were off-topic.

Pol Col Tawee also criticised the government’s overall direction, calling its policies unrealistic and lacking budgetary support.

He warned against corruption, misuse of legal authority and political interference, stressing the importance of transparency and rule of law.

The health and wellness trend and product innovation in protein beverages in Thailand should increase demand for high-protein imported products in the final quarter of this year, according to the US Dairy Export Council (Usdec).

Dali Ghazalay, regional director for Southeast Asia at Usdec, said the council observed growing demand for dairy whey and other dairy proteins in Thailand, which is a leader in food and beverage innovation development in this region.

Stephen Cain, vice-president of economic policy and market analysis at Usdec, said from January to July 2025, Thailand imported 1,240 tonnes of high-protein whey products, up 177% year-on-year. This surge was largely fuelled by rising demand from sports nutrition, functional beverages and medical/clinical nutrition segments.

“Imports are expected to remain elevated into the final quarter of this year, supported by ongoing demand,” he said.

Mr Cain said the US supplied 1,073 tonnes of whey products to Thailand, accounting for 86.5% of the total market, followed by New Zealand at 3.8%.

He said the Thai cheese market also posted promising growth, with the country importing 15,555 tonnes of cheese products over the first seven months, up 7.7% year-on-year.

The primary sources were Australia, accounting for 35.6% of the total market, followed by New Zealand at 32.9% and the US at 9.2%.

Mr Cain said the demand driver for cheese is the rebound in food services in Thailand, including pizza, quick-service restaurants, casual dining and convenience food.

Growth in bakery items requiring cheese toppings or fillings is also contributing to this expansion, he said.

“The tourism recovery and adoption of a more Western diet have also increased cheese consumption in Thailand,” said Mr Cain.

He said he anticipates cheese imports will remain strong in the fourth quarter, driven by growth in food service and preparations for festivals and holiday menus.

In addition, Mr Cain said the strong demand for high protein is evident worldwide and there is no sign that this trend will reverse soon.

“The supply of whey protein cannot keep up with the growing demand, so don’t expect the prices to ease too much in the near term,” he said.

Despite the post-pandemic recovery, the global petrochemical sector has failed to stabilise. Overcapacity, slowing demand growth, and intensifying competition have pushed margins to their lowest levels in more than a decade. Persistent oversupply will remain the dominant challenge through the end of this decade.

Global utilisation rates for core commodities have dropped well below their historical averages. At the same time, capacity continues to expand in China and the Middle East, further flattening margins. As this trend continues, the future petrochemical market will likely take one of three different forms. In the first scenario, feedstock-rich regions and growth markets lead global trade. The second likely outcome is national oil companies (NOCs) dominate through scale and integration. In the third scenario, protectionism drives the emergence of regional champions.

Southeast Asian players must now consider the road ahead. It remains one of the few regions with solid demand growth, yet must react to a world where global oversupply has dragged down returns. Globally, annualised total shareholder return (TSR) fell to -1% between 2019 and 2024, compared with 15.3% for the S and P 500 – a gap that has weighed on SEA players despite strong local demand.

In response to these industry headwinds, companies across Southeast Asia have made difficult but strategic choices. In the Philippines, JG Summit shuttered its naphtha cracker in January-which produced 480,000 tonnes of ethylene and 240,000 tonnes of propylene annually-citing high costs and weak margins. Meanwhile in Malaysia, Lotte Chemical Titan paused operations at its Pasir Gudang Complex in December to mitigate losses.

In this challenging landscape, the next steps for the region’s industry players will have major implications for future growth.

Rationalisation as the first step

This is not the first time petrochemicals has faced margin compression, but the persistence of today’s imbalance has created urgency.

European players have already moved to rationalise capacity. Sabic closed its Olefins 3 cracker in the Netherlands, removing 550,000 tonnes of ethylene capacity. In France, ExxonMobil shut its Gravenchon steam cracker, losing 425,000 tonnes of ethylene and 290,000 tonnes of propylene capacity.

In our latest report, Preparing for the Next Wave of Petrochemical Consolidation,Boston Consulting Group (BCG) analysis reveals that at least 10 million tonnes per annum of global cracker capacity must be rationalised to restore balance. Without such action, utilisation rates will remain depressed, undermining investment capacity for the transition to low-carbon and downstream products.

Counting on consolidation

Rationalisation alone will not be enough. Consolidation has become the sector’s strongest lever to cut costs, capture synergies, and reposition for resilience.

We already see early signs of industry adapting to this need. More than 300 deals were announced in 2024-among them INEOS’s acquisition of TotalEnergies’ 50% stake in Naphtachimie, Appryl, and Gexaro, which previously operated as joint ventures. These deals seek to leverage crucial sources of advantage, whether that’s feedstock, access to new markets, technology, portfolio diversification, or greater control over key value chains.

In Southeast Asia, consolidation is already reshaping the landscape. Chandra Asri, in partnership with Glencore, acquired Shell’s Singapore refinery and petrochemical assets, before purchasing Chevron Phillips’ polyethylene plant-in doing so adding 400,000 tonnes annual capacity. These moves demonstrate how regional players are seeking scale and integration to compete in an unforgiving market.

Three futures that could reshape petrochemicals

The next decade will be pivotal for the petrochemical industry, with value creation shifting dramatically depending on how global dynamics play out. Our analysis points to three possible futures, each with very different implications for Southeast Asian producers.

The first scenario sees feedstock- and market-advantaged players pulling ahead. Producers in the United States and the Middle East are positioned to dominate global exports thanks to their low-cost feedstock base, while India and China capitalise on domestic demand growth to strengthen self-sufficiency. In such a world, companies in Southeast Asia would be at a structural disadvantage. Regional producers would need to accelerate their move downstream into higher-value or speciality products where differentiation can offset cost disadvantages. Those unable to make this pivot risk being priced out of the global market.

In the second scenario, NOCs rise to dominance. As global transport-fuel demand slows, many NOCs are reintegrating petrochemicals into their portfolios to capture growth and diversify earnings. Armed with government backing, large-scale mergers and acquisitions, and heavy investments in technologies such as crude-to-chemicals, these players could secure an outsized role in the global industry. Southeast Asian producers would face tougher competition from nationally supported companies, unless they form strategic partnerships or focus on specialised products.

The third scenario is defined by the rise of regional champions in a protectionist world. Trade barriers and tightening environmental regulations could slow global flows and push countries to develop self-sufficient value chains. In this context, petrochemical industries would consolidate around two to three dominant players within each region. For Southeast Asia, strong local demand growth could provide a platform for such champions to emerge. But success would hinge on consolidation and integration. Without sufficient scale, even promising domestic players would struggle to compete against better-integrated rivals in neighbouring regions.

The case for bold action

It’s clear that consolidation is no longer optional, regardless of which scenario plays out.

The region does face key structural disadvantages in charting the route forward. Unlike rivals in the US and Middle East, Southeast Asian producers lack low-cost feedstock, while China’s mega-plants benefit from greater scale and lower capital intensity. Southeast Asian players sit in the third quartile of the global cost curve for several key petrochemical commodities, leaving them vulnerable in an increasingly competitive environment.

Some regional players are already testing new approaches. One company is pioneering feedstock flexibility by importing ethane from the US to supply its regional petrochemicals complex, lowering costs by more than 30%. Others are exploring mergers to integrate assets and build resilience.

The challenge now is urgency. As consolidation reshapes the global industry, Southeast Asian producers must act decisively to scale, integrate, and reposition. Those that move boldly can become regional champions. Those that delay, risk being sidelined in the next era of petrochemicals.

Nescafé has launched Nescafé Concentrate Ready-to-Mix, its first ready-to-mix coffee product, to expand its portfolio as part of a major global initiative to capitalise on cold coffee culture.

The innovation is designed to meet rising demand among young millennials and Gen Z consumers for quality, convenience, and personalised cold coffee experiences.

Made with an Arabica and Robusta blend and developed under the “Hack It How You Like It” concept, the products are available in three variants tailored to different tastes.

Black No Sugar is bold and intense for pure coffee lovers; Sweetened Black is smooth with a touch of sweetness; and Latte is creamy and milky for a café-style experience.

Cold coffee already dominates the Thai market, accounting for 65% of out-of-home consumption. This means that out of 3.8 billion cups sold annually in coffee shops, about 2.47 billion are cold coffee.

According to Euromonitor’s 2024 research data, this market segment is valued at over 62.6 billion baht. Young Thais aged 20 to 35 often begin their coffee journey by enjoying cold drinks, with iced espresso being the most popular menu choice.

“This ready-to-mix innovation opens up a new in-home cold coffee category catering to the needs of Gen Z. As one of Nestlé’s global initiatives, the company is building on successful launches in Australia, China, the US, and the UK, and we are confident it will empower Gen Z to shape their own cold coffee culture here,” said Othman Chraibi, business executive officer at Nestlé (Thai) Ltd’s Coffee and Creamer Business Unit.

A man who was lucky enough to get back a phone he had lost the previous day was horrified to discover it now held photos of a skeletal human corpse.

The macabre incident was shared on the Facebook page Kung Nattapon Kff. He had dropped his phone near Soi Chaeng Watthana 14, and someone had found and picked it up.

Fortunately, he was able to arrange to retrieve it the following morning.

He met the person who had the phone, and noticed the individual seemed mentally unstable. Upon returning home and checking through it, he discovered the phone now contained photographs of skeletal human remains lying on a blanket bed with a pillow. (continues below)

The phone’s owner concluded his post by urging police or rescue workers to investigate abandoned buildings in the Chaeng Watthana area, hoping the body could be properly buried or cremated.

Tropical depression Bualoi was downgraded to an active low-pressure cell over Luang Namtha province of Laos at 1am Tuesday but will still cause heavy rain in some provinces of Thailand on Tuesday, according to the Meteorological Department.

Sugunyanee Yavinchan, director-general of the department, said heavy rain was likely as Bualoi strengthened the southwestern monsoon and the monsoon trough over upper Myanmar and the upper North of Thailand.

She advised small boats in the upper Andaman Sea to be kept ashore on Tuesday.