Page 13 - TYCONS - ANNUAL REPORT 2022

Tycoons Worldwide Group (Thailand) Plc.

to increase pressure on steel mills to reduce production and emissions. This will help
stabilize supply and prices. of the steel market in Asia in the future

Upgrades in infrastructures and industries
In mid-2016, Thai government announced “Thailand 4.0”, an economic development
plan, which is the blueprint of industry upgrades across 20 years from 2017 to 2036.

The plan includes the development of six key area and ten popular industries, and at
least 3,000 billion baht in rail way and high way system. The goal of this plan is to
make Thailand more attractive to investors, to develop Eastern Economic
Corridor( EEC) , and to strengthen the country’ s competitiveness by reducing the
transport cost. In order to speed up EEC, the flagship project, Thai government has
invoked the powerful Section 44 to enable authorities to bypass some laws and
regulations that may put the project on hold. EEC Projects that has been launched in
2018 include high speed rails linking 3 international airports, Laem Chabang port
phase 3, U-tapao airport, Map Ta Phut's port expansion and development of highways
and double-track rails in the three EEC provinces. Other projects are eastern airport
city, aircraft repair and maintenance hub at U-tapao and the Bangkok-Rayong high-
speed rail network. Domestic steel demand will benefit from the launch of those
infrastructures in 2021. Therefore, the outlook of Thailand’s steel market is expected
to bloom in the future.

Bans on Thai steel plant expansion
Steel plant expansion and construction of steel bar plants will be banned for the next
five years in Thailand to reduce the domestic surplus, according to an industry Ministry
draft regulation the cabinet approved on Jan 29, 2019. The government calls on
steelmakers to improve their technology, upgrade steel quality to meet high standards
and solve SOx and NOx emission levels to prevent outdated technology from polluting
surrounding communities. The new regulation has entered into force on January 11,
2020.

“Made in Thailand” policy
Domestic steel demand will grow under the “Made in Thailand” policy announced
recently in January 2021 by the Comptroller-General. Under the policy, government
agencies have to procure not less than 60 per cent from domestic produce and require
the government's infrastructure projects to use domestically produced steel as the ratio
of steel consumption in the total project to not less than 90%. And the Federation of
Thai Industries (FTI) is responsible for the registration and certification of product
projects. It includes steel products, so that in the future, the Thai government will give
priority to the policy of selecting domestic steel manufacturing suppliers for the
qualification rights and interests of steel products in the outsourcing case of
infrastructure projects.

New capacity in neighboring countries
Vietnam has complete new steel plant with annual capacity of 7.1 million tons in early
2018, Malaysia Alliance Steel also completed a steel plant with an annual capacity of

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