Business

What the Thailand Should be Aware of When Reopening its Economy

Published

5 years ago

June 3, 2020

Bchcomber

No one expected that the year 2020 would start off with a global pandemic and how COVID-19 pandemic would effect Thailand’s economy. It all started with the first patients with the deadly coronavirus infection from China’s Hubei province.

The wildlife market in the province’s capital city of Wuhan has been named as the source of the infection.

The highly contagious virus managed to rapidly spread all around the world, killing hundreds of thousands while over 6 million have tested positive globally.

Without a vaccine or specifically tailored effective treatment, the only known way of fighting the spread of the virus is social distancing. There have been lots of theories about the spread of the virus but after more than 2 months of observation, we know that without any social distancing measures in place, one infected person can transmit the virus to roughly 3 others. This is what makes the COVID-19 pandemic a great threat to global security.

The virus is costing the world human lives but it also is affecting the global economy. The growth forecasts have been cramped as the world braces for the worst recession since the Great Depression. Millions of people have already lost their jobs in different nations. Some countries afford to pay unemployment benefits to their citizens during this unprecedented crisis. However, others are struggling to provide the population with food and essentials during the pandemic.

COVID-19 pandemic in Thailand

As a result of differences between the economic development among various countries, approaches to re-opening the economy significantly differ. Nations that can afford to have their economies shut down are not in a hurry to open up for business. On the other hand, less fortunate nations are doing their best to re-open as fast as possible.

Located in Asia, Thailand was heavily hit by the coronavirus pandemic just like others in the region. It was one of the first countries to experience a sharp increase in the number of coronavirus cases. However, with the effective regulations introduced by the government in time, the nation managed to flatten the curve and practically stop the spread of the virus.

Currently, the country has just over 3 thousand cases of the novel coronavirus infection. Fortunately, the number is increasing very slowly, pointing towards the absence of community transmission. For a country of more than 69 million people, this number is quite low. However, the economy of Thailand is still struggling a lot.

The nation is highly dependent on tourism and income from international visitors. It has been estimated that the tourism industry makes up roughly 13-14% of the country’s economy. Moreover, 1 in 6 people is employed in this sector.

Curb the spread of illegal businesses

From the very beginning of the pandemic, the infection took a toll on Thailand’s financial stability as Chinese visitors were banned from entering the country. Later on, all international visitors started avoiding Thailand or any international travel amid confusion over the official travel advice. In the end, the country like many others globally closed its borders for international visitors in efforts to combat the import of coronavirus infections from abroad.

Besides the tourism industry, the country went under unprecedented lockdown for almost 2 months. Almost all non-essential businesses were closed while hundreds of thousands lost their jobs and incomes. The Thai economy is an emerging market, still a part of the developing world.

Therefore, in order to survive, it needs to open for business as soon as possible. The tourism industry will take some time to recover as international travel remains a controversial issue. Yet, there are a number of things the Thai government can do to safely re-open the economy and potentially boost some industries.

Thailand has always been a place with lots of illegal business activities, particularly in the tourism industry. However, with the re-opening of the economy, there is a risk of such activities increasing at a rapid rate. Physical gambling is outlawed in the nation by the act adopted back in 1935. However, huge numbers still enjoy online live casino games offered by overseas providers.

Underground illegal gambling activities

The country now stands at a risk of facing a growing number of underground illegal gambling activities. The government is not likely to allow gambling due to the cultural sensitivity regarding the issue. However, it should think about completely legalizing online gambling to benefit from its revenues. Otherwise, illegal gambling activities are rather harmful to the country’s economy. It is not getting any tax income from them while suffering from the flows of illegal money.

Besides gambling, other sectors are also at risk of soaring rates of illegal activities. The tourism industry which will remain highly restricted in the nearest future could likely be the most affected one. A number of unauthorized entities have already been offering suspicious, unlicensed, and potentially dangerous services to travelers. With the coronavirus posing as an obstacle, they are expected to become more active than ever before.

Besides the negative economic impact such activities will have on the tourism industry, it also is a threat to national security. Up until the launch of a successful vaccine, every single violation of social distancing rules can result in new waves of the infection.

Regulating prices on essential goods

Thailand has a positive trade balance, meaning that the country exports more than it imports. However, the coronavirus pandemic is changing the global supply chain, especially when it comes to food. Many suggest that the global food supply chain needs a crucial reboot to remain operational, otherwise, the prices will shift disproportionately around the world. Some nations might face shortages of particular essential goods while others will witness huge reserves of food going off due to the low demand.

Being a developing economy where poverty and social exclusion are still common, Thailand should do its best to freeze prices on essential goods. Many countries have already done the same by negotiating with the private sector. The re-opening of the economy will come at a price of changing prices and the affordability of food and other essentials should not be under a threat.

Ensuring that businesses and individuals follow regulations

The novel coronavirus pandemic is far from ending. Despite the fact that a range of countries, including Thailand, are lifting regulations, the threat of a new community outbreak remains in place. Therefore, in the process of re-opening the economy, both businesses and individuals should show high social responsibility and follow government advice on social distancing.

Many might follow the rules but some will most certainly avoid them. This could be catastrophic for the nation. Therefore, the government should effectively regulate and control the situation in this regard. Common checks and contentious informational campaigns will be vital for keeping the nation safe as it adjusts to the new reality.

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

Published

4 months ago

October 8, 2024

Salman

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

Published

4 months ago

October 8, 2024

Salman

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

Published

4 months ago

October 8, 2024

kiaragrace

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP