Transcription
Hello. Welcome, viewers, to Bangkok Business Insight. Today, we meet on Monday, June 29, 2026. I am Kaya Aphisuan. And I am P' Phu Pung Kaewklan. It is the last Monday of June, and this week we will officially enter the second half of the year.
In our country, yesterday went as expected. The election results for both the Governor of Bangkok, the Bangkok Metropolitan Council members, and the Mayor of Pattaya were as predicted. We still have the same Governor of the capital city and the Mayor of Pattaya. The addition is record-breaking scores. As for the council seats, they were distributed. Viewers probably already know that the Orange Party received the most, with 22 seats. Followed by the People's Working Group, then the Democrat Party, and independents. But in the big picture, globally, we must admit that the past weekend was worrying because Hormuz flared up, with attacks back and forth. But as many predicted, when they attack, they will return to talking in circles.
Yes, there will be negotiations starting soon. This Tuesday, they will return to negotiate again. But what is also interesting is the trend of AI that is emerging now. It must be said that it has caused a major investment in the world. What is worth watching is South Korea. As we know, K-pop is booming now because it relies on two companies. These are two companies that, it must be said, are driving the South Korean stock market. They are Samsung and Hynix. These two companies together are worth more than half of the KOSPI index. Now, what is interesting is that their government has decided that since these two are going well, they will invest more. This is a major investment by the government to support these two companies to get started in competing with global industries.
Yes, it is considered a big gamble, but they have probably done their homework well. South Korea will go from upstream to downstream. It is considered an interesting story. On the other hand, South Korea is growing rapidly, but Indonesia is now worried about major foreign banks starting to take their money back to their countries, fearing the uncertainty of the Rupiah's exchange rate and the possibility of it weakening, plus the lack of transparency in many government operations. Today, we have an analysis to share with you. We must admit that currently, the gamble of Indonesia, the largest economy in ASEAN, has many worrying issues, especially populist policies and the Nusantara Fund, which we presented last week, questioning its transparency. Viewers, you can share your opinions and join our program with us two, starting from Monday, through the Facebook and YouTube channels of Bangkok Business. We may not be able to reply to comments ourselves, but we always try to read them. First, let's look at the latest developments. The United States and Iran have finally ceased their attacks on each other and have said they will hold major negotiations again, as originally scheduled, in Doha, Qatar, tomorrow. After previously attacking each other from Thursday, Friday, continuing through Saturday and Sunday. But in the end, there were no reports of significant damage, nor any reports of casualties. Finally, the negotiations will resume. This news agency reports that the United States and Iran have reached an agreement to end their military attacks on each other to allow for maritime passage and for all activities to continue, at least temporarily, before the new round of negotiations as scheduled resumes in Doha, Qatar, after the situation had been tense for 3-4 consecutive days. If we go back to before the retaliations, it flared up on Thursday, June 25th. At that time, Iran attacked a container ship, leaving the Washington government with no choice but to retaliate by attacking Iranian military targets on Friday. Then, on Saturday night, shortly after the attacks, Tehran intercepted a Qatari oil tanker and reportedly attacked a ship flying the Panamanian flag. The violence continued until Sunday, when finally the IRGC, or the Islamic Revolutionary Guard Corps of Iran, announced that it had fired missiles and sent drones to attack Ali Al Salem Air Base in Kuwait and the naval base of the 5th Fleet in Bahrain. Kuwaiti authorities intercepted two missiles or drones without damage, while Bahrain reported that residential buildings were attacked, but there were no reports of casualties. The reason it escalated so violently was that at that time, Trump posted on Truth Social that if, in the end, diplomatic or negotiation reasons could not be used, the United States might be forced to use military measures again to complete the mission that was started. This time, if they do, Iran might not have a nation left. When threatened like that, Iran and the IRGC were angry. It was as if Iran had attacked before, but it was a warning attack on ships that went off course without informing the Iranian authorities first. But the United States saw it as unacceptable. You cannot attack commercial ships. So the United States attacked Iran, but tried not to cause casualties. But in the end, Iran attacked US bases in return. So it became a back-and-forth retaliation. Initially, Iran announced that it would close Hormuz again for at least 30 days. But now, Hormuz remains open.
Yes, and the Joint Maritime Information Center has announced that the threat level in Hormuz has been raised to a severe level. They have also declared a warning zone where mines may cover the normal shipping lanes over a wide area. They have expanded Oman's shipping routes to allow merchant ships to pass each other. On Sunday morning, several ships traveled through the strait, which is the designated route for both Oman and Iran. The IRGC of Iran, through its X platform under the Islamic Card Memorandum of Understanding, claimed that Iran has absolute authority to control maritime traffic in the Strait of Hormuz and will deal decisively with those who violate it. As for Abbas Araghchi, the Iranian Minister of Foreign Affairs, he stated during a meeting in Iraq, reiterating that Iran is solely responsible for restoring this route and that external interference will only escalate the situation further.
Yes, we will have to wait and see. Because it is predicted that the negotiations that will take place tomorrow, June 30th, local time in Doha, are full of questions and face challenges from various issues, especially the debate about collecting transit fees in the Strait of Hormuz. Because Iran says they have talked to Oman and started talking to other countries. After 60 days, they will collect fees, but the US says they cannot collect fees for 60 days, and after that, they cannot collect them. Bloomberg also reported that the Omani authorities have warned Europe that eventually, they may have to pay transit fees through Hormuz. In addition, Iran is trying to include the conflict between Israel and Hezbollah in Lebanon in the agreement, which Israel disagrees with. Therefore, Hormuz is considered the most important bargaining chip for the Tehran government. And how will it end, amidst the impacts that are shaking the global economy and global energy prices since early March until now?
Despite sporadic attacks, energy prices have not fluctuated significantly. They remain around $70 per barrel. Many are concerned that if negotiations fail, oil prices will skyrocket again.
Yes, if this report is true, it means Oman is on board. Because previously, there were rumors from the beginning that Iran wanted to collect transit fees through Hormuz and had coordinated with Oman. But at that time, Oman maintained its stance. But if Oman announces a warning to Europe, it is possible that if Oman cooperates with Iran, they may actually collect transit fees through Hormuz. This will further increase energy costs. Meanwhile, the trend of de-dollarization is once again becoming a trend. Because if we look at central banks worldwide and sovereign wealth funds, they are making major strategic adjustments. They are now prioritizing investment in energy and gold, while reducing their dollar holdings. This is a result of geopolitical conflicts and the US public debt problem, which is changing the direction of global investment. Latest reports indicate that sovereign wealth funds and central banks worldwide manage assets worth over $29 trillion, or about 1,000 trillion baht, and are making major strategic adjustments. They will increase their investment in energy and gold assets, while signaling a reduction in reliance on the US dollar and preparing for potential prolonged risks. According to the latest survey by investment management firm Asco, data from 90 sovereign wealth funds and 54 central banks was collected. It shows that major institutional investors are accelerating risk diversification to strengthen their investment portfolios amidst volatility from wars, trade tariffs, disruptions in international shipping routes, and conflicts in Ukraine and the Middle East. Benjamin John, Head of Research at Asco, stated that inflation, a contracting financial market, and geopolitical fragmentation are forcing investors to rethink their strategies. Portfolio resilience has become an absolute necessity. Furthermore, the positive correlation between stock and bond markets in recent times has reduced the role of bonds in risk diversification, leading to increased capital flow into liquid and real assets.
The asset classes that are currently receiving the most interest and investment are energy and infrastructure. 80% of respondents believe that energy security and infrastructure for the transition to clean energy are the most credible global goals for the future. The proportion of investment in infrastructure by sovereign wealth funds will increase to 9% of total assets by 2026. Furthermore, the competition in artificial intelligence technology, which requires massive infrastructure and data centers, is further accelerating the attractiveness of these energy asset classes. At the same time, confidence in the US dollar as the world's reserve currency is being questioned. 61% of participating central banks found that the US public debt level is negatively impacting the dollar's long-term status, a significant increase from 20% in 2024. Although the conflict between the US, Israel, and Iran has helped the dollar strengthen by about 3% this year, analysts estimate that uncertain policies and US debt burdens will put downward pressure on the dollar in the long term.
It must be said that currently, no currency can completely replace the dollar. But if we look at the trend, we can see that the reduction in dollar reliance is becoming more evident. 29% of respondents believe that the dollar's status as a reserve currency will weaken within the next 5 years, up from 12% in 2022. This means more people agree that the dollar will weaken. However, many central banks admit that reducing dollar holdings is still a sensitive issue. Because if they adjust too much, the US might interpret it negatively. For this reason, gold has become a prominent alternative asset. One-third of respondents plan to increase their gold holdings as a risk diversification tool amidst global economic and geopolitical uncertainties.
Yes, it is just a survey, but it is credible because it involves central banks from around the world. However, it is very difficult, if not impossible, to de-dollarize. Because we have seen that when wars occur, everything rushes back to the dollar for safety. This is something the United States has built over decades. We must admit that it is extremely difficult for any currency to replace it quickly. Especially now that cryptocurrencies have weakened. People need something tangible. So, let's wait and see if gold will eventually rise. Because if this is the case, gold holders will smile, as demand for gold will increase. And gold may rebound.
From the topic of dollars and gold, let's move on to an interesting topic. The Bank for International Settlements (BIS) has warned that the global economy is currently worrying due to overlapping and complex problems from three main factors: the massive increase in global debt or public debt, inflation occurring in countries worldwide, affected by war conditions and oil prices, and finally, the AI bubble waiting to burst. When these three factors converge, the global economy will be very turbulent. This is an interesting warning from P. Bo Hernandez, the General Manager of BIS, the central bank for central banks. He stated that policy measures must support each other to avoid conflicting forces and drivers in the global economic system. He emphasized that success can only be achieved with a strong fiscal foundation and financial strength as a support. One of the risks that BIS gives the most weight to is the resurgence of inflation. It points out that frequent supply chain disruptions have caused inflation expectations to become entrenched among households and businesses. The report states that energy costs are starting to be passed through the supply chain, especially the price of plastics, which has risen by about 30%, and the price of chemical fertilizers, which has increased by up to 50%. This could affect food prices and food security in poor countries. Mr. Dek stated to reporters that what BIS urgently wants to communicate is that central banks worldwide must be ready to act immediately if there are signs that inflation expectations are deviating from the controllable range. The report also states that Asian countries, especially Japan, which imports 95% of its energy from Hormuz, are at greater risk of economic slowdown than other regions. The achievement of a ceasefire between the US and Iran, and the reopening of Hormuz, are signals that have helped the world avoid the worst-case scenario to some extent. BIS has also warned about the uncertainty of the AI investment trend, pointing to a circular financing model where chip manufacturers and major cloud service providers invest in AI labs, which then have to buy their services back. If the returns from AI ultimately do not meet market expectations, this cycle could lead to a bubble burst and broadly impact the private credit market. Furthermore, supply chain bottlenecks and intense competition could lead to over-investment, repeating the cycle of bubble bursts that occurred in the past. This is a warning from BIS.
Yes, and regarding financial fragility, BIS points out that the record-high public debt, combined with the government bond market dominated by hedge funds using high financial leverage, has created new risks that BIS calls the link between debt and financial stability. Mr. Frank Sm, Head of Financial and Economic Affairs at BIS, stated that this link could cause government bond market values to decline sharply and more frequently, which could lead to rapidly tightening financial burdens unexpectedly. The BIS report proposes approaches to transition from temporary flexibility to sustainable strength in many dimensions. For example, in monetary policy, central banks must maintain their independence and prioritize medium-term inflation control as the primary focus, without yielding to benefit government debt burdens. Regarding fiscal policy, governments must reduce accumulated deficits during economic recovery, and measures to assist citizens from the energy crisis should be temporary and targeted only. As for supervision, BIS also suggests pushing for equivalent regulatory standards between banks and non-bank financial institutions to control leverage levels and legal loopholes in the digital world.
Yes, it sounds like many countries are doing this, but perhaps not all of them according to this. We need to consider the context that is appropriate for each country's situation. Nevertheless, Mr. Dek of BIS concluded with words emphasizing urgency: regulators and policymakers must act today, because procrastination will only increase the cost of adjustment in the future. We know the direction the world is heading, what the risks are, and what needs to be controlled quickly. Let's do it starting today. Let's look at South Korea. As mentioned earlier, the Thai idiom is "strike while the iron is hot." South Korea is also like that. Because it is truly in the wave of AI. And we see that the AI boom trend can make the performance of the two companies that drive South Korea's GDP, Samsung Electronics and SK Hynix, soar significantly. Their employees are receiving bonuses of 10 months, right? They say they want bonuses of over 10 months.
Yes, the funny thing is, let me add a little more. At Samsung, there are many divisions. Previously, those who produced memory chips did not receive large bonuses. But now, everyone wants to be in this department because they get bonuses of hundreds of thousands of dollars. Meanwhile, those who produce home appliances, previously producing mobile phones, refrigerators, and TVs, used to get bonuses of about $7,000-8,000. Now, they get much less than the chip production group.
Yes. And it must be said that now that these two industries, these two companies, are growing, the government is also on board. We already know that South Korea supports large conglomerates or chaebols, leading to inequality compared to small businesses that cannot grow. But South Korea continues on this path. Because recently, they announced another historic investment of 43 trillion baht. And they are joining forces with these two companies to drive the chip competition of Samsung and SK Hynix, so that South Korean companies can become global leaders. Currently, the South Korean government is preparing to invest in technology again, a historic investment. A massive amount of money, which in US dollars is about $1.33 trillion, or about 43 trillion Thai baht. Their timeframe is set for 10 years, joining forces with two companies, Samsung and SK Hynix, to maintain leadership in memory chips amidst the fierce technology competition between the US and China. This is according to a report from the Korea Economic Daily newspaper, which states that Samsung and SK are preparing to officially announce this investment. It will cover everything from expanding the memory chip business, building data centers, to developing the robotics industry. An investment of this magnitude is very interesting. If we compare it, it is close to Microsoft's investment budget and comparable to China's 5-year investment strategy worth $295 billion. This reflects the South Korean government's determination to maintain its position on the global technology stage and its desire to truly promote the growth of domestic private companies.
Yes, this is a gamble that seems risky, but it is likely well thought out, and importantly, it has government backing. Therefore, they will proceed at full speed, similar to when TSMC made its decision and became the backbone of Taiwan today. Samsung and SK Hynix, who hold the position of the world's largest memory chip manufacturers, are preparing to build new semiconductor manufacturing plants, 4-5 in the Gwangju area in the southwest of the country. In addition, Samsung plans to build a chip packaging plant in North Chungcheong Province, while SK Hynix will focus on expanding the production capacity of its chip factories in North Chungcheong Province. Let's say different areas. I'll take the north, you take the south. This giant project is fully supported by the government. The Office of President Lee Jae-myung has dubbed this project the "Megaproject" or "Mega Project for a Great Leap Forward." The government has ordered relevant agencies in industry, science, climate, and land to prepare to announce official support measures. Lee Jae-yong, Executive Chairman of Samsung Electronics, and Choi Tae-won, Chairman of SK Group, will also participate. President Lee Jae-myung emphasized on the X platform last Sunday that it is time for all sectors to cooperate seriously for the goal of reducing resource concentration in the capital region and promoting balanced national development in all regions. But honestly, it's two companies, but it creates a lot of jobs.
Yes. Financial institutions like Citigroup have assessed in their analysis that this massive investment plan by South Korea will be a key driver in stimulating the growth of the domestic semiconductor supply chain, especially for chip manufacturing equipment producers. They also express a positive outlook on the stock direction of these groups due to the strong and continuous demand for AI and the accelerating expansion plans of the private sector. It is interesting and worth watching because this model is a "Local Lead Firms" model, where they have local companies that can grow internationally. When the government decides to support domestic companies with a clear direction, they can move fast and go far.
Yes, previously there were about 5 major arteries that were like the main arteries of Seoul and South Korea. But now, two companies have risen and become the most prominent. It must be admitted that if Taiwan has TSMC, South Korea has two S's, namely Samsung and SK. The investment model is similar to when Motorola decided to invest and expand production significantly. I don't remember the figure, but it was $9 billion at that time, in 2009, which was a lot. To build TSMC and expand production to support the production of GPUs and CPUs for Motorola. I don't remember anymore, for Apple, because at that time, Apple, by Steve Jobs, decided to move production from Samsung. Finally, when Taiwan could produce, and TSMC could produce, TSMC grew exponentially. Samsung will likely choose to invest in a similar way. In the future, it will become more than just the backbone of Korea.
And imagine, if we go back to the 1960s, Korea was so poor that they let girls and women grow their hair long, and then had them cut it and sell it to make wigs to sell in the United States, because they were so poor and didn't know what else to sell. Now they are selling chips.
Yes. We must admit that before, they copied. Now they have developed so much for South Korea. But their performance in the World Cup was not very good.
From South Korea, let's look at Indonesia. This is a worrying matter because three major foreign banks have decided to gradually repatriate their funds, which is unprecedented. Whether it's Standard Chartered, HSBC, or even Citigroup. Analysts estimate that these three major banks may fear the policies of President Prabowo, who may eventually force banks to lend for certain populist policies, combined with the current worrying situation of the fund, which could lead to a large outflow of capital from Indonesia. This report reflects the caution and concern of foreign financial institutions towards the economic policies under President Prabowo Subianto. Subianto emphasizes the government's role and control over economic mechanisms, or some might say too much, which has affected the confidence of foreign investors in recent times. It is reported that Standard Chartered, Citigroup, and HSBC have continuously repatriated their profits to their parent companies in their home countries, totaling over 11.5 trillion Rupiah, or about 2.13 billion US dollars, since the beginning of 2024. Analysis of their financial statements and reports shows a significant change in the proportion of revenue and profit repatriation compared to past statistics. Standard Chartered has the most drastic change. In 2024, they sent over 1.11 trillion Rupiah to their parent company, which is almost 4 times their net profit for that year, drawing funds from retained earnings from previous years. Compared to the previous decade, they only sent back an average of 48%. So, they sent back a huge amount. As for Citigroup, they have repatriated almost all the income earned in Indonesia throughout 2024 and 2025 to their parent company. This breaks the previous 10-year record, where they normally reserved about 16% of profits for lending and other purposes, as working capital and a buffer for business risks. HSBC, last year, 2025, sent back nearly 3 trillion Rupiah to its parent company, even though its net profit in Indonesia was less than 2.22 trillion Rupiah. Why send back so much so quickly?
These are the highest repatriation figures since 2022 for HSBC. This trend of withdrawing funds is consistent with the restructuring plans to reduce their retail banking businesses in Indonesia, which all three banks have been continuously implementing, even before Prabowo took office. Citi sold its retail banking business to UOB in 2022. Standard Chartered transferred its retail loan portfolio to Bank Danamon in 2023, and HSBC is in the process of divesting its retail and wealth management assets. Experts and analysts estimate that the decision to reduce risk and repatriate funds to parent companies is due to three major factors.
Yes, all these factors are very interesting. The first is political interference and the expansion of state power. It must be said that the government under Prabowo has established and empowered the sovereign wealth fund, which we hear about often, the Nusantara Fund, to control state-owned enterprises and assets worth over $900 billion. In early 2025, representatives from the fund met with 10 commercial banks because they wanted to persuade each bank to support loans of $1 billion each, a total package of $10 billion from 10 banks, to support government projects. Foreign financial institution executives view this as a warning sign of being pressured to support government policies in the future. They might use the word "request for cooperation," but it is also a form of indirect coercion. Second, there is pressure to lend for populist projects. The Indonesian financial services authority has also held informal discussions with commercial banks. There are proposals to include government projects in banks' business plans, such as free school lunch programs and village cooperative programs, which are flagship projects of Prabowo's campaign and where he won by a landslide. This has raised concerns about risk management and capital allocation, even though the Indonesian financial services authority, OJK, has issued statements denying interference and affirming that it is at the discretion of the banks. It's like there's pressure.
Yes, if there is real interference, it can lead to imprisonment. However, despite this, there is pressure that makes many banks uncomfortable. The third reason is the volatility of the Rupiah exchange rate. This is a major issue right now. Hery Su, Research Director at PT Samuel Sekuritas Indonesia, stated that the urgency to repatriate profits is due to the continuous weakening of the Rupiah, making institutional investors assess that holding liquidity or accumulating profits in Rupiah within Indonesia is much less worthwhile from a foreign investor's perspective. It's better to hold other currencies because there is a chance it will weaken further. So, in the end, these three major banks are taking their money and fleeing back to their countries. This is not a good sign at all, because it significantly reduces liquidity in the country.
Yes, if the government cannot prove that there is no real interference and that the market is not being manipulated by government control, then investors will continue to be concerned about the Indonesian market. It has not yet been adjusted for credit rating or by MSCI. If it is eventually downgraded to a frontier market again, it will be much more difficult.
Yes, it will be difficult to climb back up. Meanwhile, let's look at our country. It must be said that another issue that has always been a major concern, but we may not hear much about it, is Thai household debt. It remains like a ticking time bomb or a large rock at the bottom of the ocean, preventing the Thai economy from growing to its full potential if people remain in debt. The ratio of household debt has not increased, but if we look at the details, the nature of people's debt has changed. Specifically, it has shifted from debt for large assets to debt for smaller assets. For example, when buying mobile phones or home appliances, this category has surged by 20%. And there are many groups at risk of becoming NPLs, or non-performing loans. This is information from the National Credit Bureau (NCB), which has issued a warning about dangerous signs in Thailand's consumer credit system. They found that outstanding balances for hire-purchase of mobile phones and home appliances have increased by nearly 20%. This is contrary to the overall household debt figures, which remain stable. Meanwhile, TTB Bank points out that SME loans have been continuously contracting, and over 40% of Thais have no credit information, affecting their access to credit. The household debt situation in Thailand is now a closely watched issue. Even though the overall household debt figures, as mentioned, have not increased and loans have not grown, if we look at the overall picture of household loans, we will find that borrowing behavior has completely changed, especially structural changes in debt, moving from large loans to smaller loans. And even though access to credit has improved, on the other hand, it may mean increased risk in the system. Dr. Luckmanee Attapith, Managing Director of the National Credit Bureau Co., Ltd., stated that the overall Thai household debt in the first quarter was approximately 13.6 trillion baht. In the past 1-2 years, the debt value has not increased significantly, while the household debt to GDP ratio has been decreasing. However, what is more concerning is the quality of debt. He said that although NPLs (over 90 days overdue) in the first quarter of this year were 9.3%, a decrease from the end of last year, on the contrary, debt in the debt restructuring group has increased to 10%. Therefore, it needs to be continuously monitored, because debt that is undergoing restructuring may flow back into NPLs in the future if the restructuring process is not successful. If we look at the delinquency rates by loan type, personal loans have a delinquency rate of about 9-10%, close to the overall average. Credit cards have a delinquency rate of about 10%. And car loans overdue by more than 90 days are nearly 10%. If we look specifically at the business sector, SMEs have a delinquency rate of 12-13%, and the debt quality of small businesses is still worse than that of medium and large businesses, while SME loans are still contracting, and large business loans are still growing. This shows that small businesses are struggling and find it difficult to borrow. And the proportion of unpaid debt is higher than other categories. What is very concerning, as we have reported, is the group of other hire-purchase loans, especially small loans, particularly for buying mobile phones and home appliances. The delinquency rate has surged to nearly 20%, significantly higher than other types. Delinquency in the group of installment payments for mobile phones and home appliances has been clearly visible since mid-2025 and continues to trend into early this year. In addition, what is concerning is that the number of accounts in the formal debt system has increased significantly, but the debt value per account has decreased. It is found that large loans, such as auto loans, are becoming harder to disburse and their proportion has disappeared from the system. Meanwhile, small loans, such as personal loans, but not large amounts, like 50,000 or 100,000 baht, and nano-finance loans, have increased in proportion instead. This means that if they cannot get large loans, they borrow small amounts to get by day-to-day, or perhaps? This is a worrying issue. And then there are the promotions from e-commerce platforms, which lead people to incur debt for inexpensive items, but ultimately cannot afford the installments.
Yes. In addition, if we look at the figures from the National Statistical Office, Thailand has a working-age population of about 20-60 years, approximately 39 million people. Of this number, 23.5 million people, or 60%, have credit information in the system. This means that over 40% of the Thai population in this age group has no credit information. Therefore, what is concerning is not just the level of Thai debt, but the fact that so many people have no financial identity in the credit information system, causing them to lose opportunities to build financial credibility and potentially face limitations in accessing formal credit when needed. Regarding loans, which is also an issue now, it is "Buy Now, Pay Later" (BNPL). NCB views the Bank of Thailand's increased oversight as a good thing because BNPL has the advantage of increasing financial access. BNPL can make it easier for people to access finance. However, what needs to be cautious about is unconscious debt accumulation, or the group of young people who are not yet working and incur debt. This would be concerning. There will be a group that, of course, cannot get loans from financial institutions. But ultimately, platforms allow them to borrow because the amount is not large. They look at your purchase history. Sometimes, after buying 10-20 times for tens of thousands, they can pay in installments every time. So this time, they buy more expensive items and in the end, cannot afford the installments. This is a matter of financial discipline. It is a matter of financial literacy, which is not taught in schools from a young age. Our country needs to start teaching it. Let's conclude with one more story that we have been following since last week: the suspicious industrial estates that may not be directly registered as industrial estates but have excessive electricity and water usage, and may be deceiving each other among foreign investors. Recently, the Minister of Industry, Mr. Varawut Silpa-archa, has ordered the Industrial Estate Authority of Thailand (IEAT) and the Department of Industrial Works to conduct an urgent investigation. This is a major issue because Thai land is being exploited to become a "zero-dollar" industry, which is definitely not okay. Recently, Mr. Varawut Silpa-archa, Minister of Industry, revealed that he has assigned urgent policy to the IEAT and the Department of Industrial Works to jointly and strictly inspect factories established outside industrial estates, after detecting a trend of foreign capital groups acquiring large plots of land and using deceptive advertising to claim rights to establish industrial estates. He also warned both Thai and foreign investors to thoroughly check legal and urban planning regulations before deciding to invest, to prevent them from becoming victims of these transnational fraud schemes. In addition, coordination has been made with the Chinese Embassy in Thailand to urge investors to strictly comply with Thai regulations and laws. The Ministry of Industry is ready to prosecute immediately if any violations of laws or the use of nominee representatives are found. They are also preparing to coordinate with the Land Department to inspect land subdivisions of incorrect types nationwide. Mr. Porn Yot Glan-krong, Director-General of the Department of Industrial Works, revealed that the results of the site inspection by the Chonburi Provincial Industry Office, in cooperation with Tha Thong Subdistrict Municipality, Bo Thong District, Chonburi Province, which is the location where there are reports of the development of the Hengtu Industrial Park project on over 5,000 rai, found that currently, no one has submitted an application to establish an industrial park or a building construction permit in the name of the said company to the local authorities. So, where did the name "Heng Industrial Park" come from if they haven't even applied yet? However, in that area, it is the location of Huay Ya Electronics (Thailand) Co., Ltd., which is a factory producing home appliances and LED bulbs and has a factory operation license, but has not yet notified the start of operations, meaning they have set up the factory but have not yet started production.
I don't know if it's strange or not, but let's listen. The land in that area is zoned as Chonburi urban planning, or light yellow zone, which is a rural community area. Urban planning laws allow the establishment of certain types of industrial factories, except for factories that fall under projects or activities that may cause severe impact on the community and environment. We need to see if home appliances and LED bulbs can be established there. Also, there are regulations prohibiting land subdivision for industrial purposes under the Land Subdivision Act. It's not that you buy land and then subdivide it and rent it out for business. That would be considered an industrial estate.
Currently, it's not China deceiving Thailand, but China deceiving China. It's a group of investors who invest first and then sell the projects and other things to Chinese people who want to invest in Thailand. Mr. Sumet Tang-prasert, Governor of the IEAT, expressed concern that promoting areas outside industrial estates by falsely claiming rights or using the name of an industrial estate may affect the confidence of foreign investor groups. IEAT currently confirms that factories established outside industrial estates will receive tax benefits and legal protection similar to those within the Industrial Estate Authority of Thailand Act. Furthermore, according to the latest database in April 2026, Thailand has a total of 84 expanding industrial estates and industrial zones, covering over 213,000 rai in 18 provinces, growing exponentially since 2020. Regarding the private sector's perspective, WH Corporation has revealed that they are encountering problems with fraud schemes involving foreign capital groups, where Chinese investors are deceiving other Chinese investors by falsely claiming that land has been approved for establishment as an industrial estate. This has caused concern among the Chinese themselves, as the Chinese Ambassador is also concerned about deception occurring. They are also strengthening controls on investor remittances, requiring clear evidence to prevent damages.
Yes. In addition, there is the behavior of using connections to hoard electricity quotas, even though actual usage is minimal. Such behavior leads to inefficiency in energy management and directly impacts the confidence of large projects, data centers, and global investors like Google, who are ready to invest and provide guarantees for electricity usage but are facing policy limitations from the government. We must help good people, those who do things correctly, and try to protect them and prevent bad people from taking advantage. Citizens should also be vigilant and report information to us. Government officials may need to be more diligent and perform their duties diligently, not just waiting for ministerial orders, but everything is slow. As for the media like us, our duty is to find the truth and publicize it to ensure the deepest possible investigation.
Yes, and it is believed that this is not only happening in the EEC area, but also in the southern region, where the construction of mega-projects is underway. Similar situations are starting to emerge. If there is more information, we will disclose it further.
Yes, we will continue to follow this story. We will not allow anyone to use Thai land for improper purposes or to do anything that is not right. Our time for us two and Bangkok Business Insight for this evening has come. We will be back tomorrow at the same time. Today, we bid farewell. Goodbye.
Goodbye.