Smith Banomyong, chief executive officer of Siam Commercial Bank Asset Management and the DIF’s manager, said that the planned investment would help develop the country’s telecommunications infrastructure to cope with the increased demand for data services – driven by smartphones – after a shift to the 4G LTE network, ahead of a transition to 5G services.

The move fits with the country’s technological shift under the government’s Thailand 4.0 policy and forms part of the Ministry of Digital Economy and Society’s digital economic system development. This plan will see the broadband network developed so that it can reach a target of extending access to at least 95 per cent of the population by 2021. Currently, just 27 per cent of the population have access to the broadband network.

Veena Lertnimitr, executive vice president at Siam Commercial Bank, which acts as DIF’s sole global coordinator, said the Securities and Exchange Commission had given the green light to the offering of DIF units. The price will be set in a range of Bt13.60-Bt13.90 each and the units will be offered to existing unit holders and the public.

For those with existing DIF units, they can receive one new unit for around 2.0911 existing units.

The public offering will be made through a small lot first.

The proceeds will be used to finance rights for 2,589 telecommunications towers for mobile phones; rights for 252,006 core-kilometres of fibre optic cable (FOC) for mobile phone services in the provinces; rights for 117,871 core-kilometres of FOC for mobile phone and Internet services in Bangkok and surrounding areas; rights for 220,428 core-kilometres of FOC in the FTTx system for Internet and broadband Internet in the provinces; and a lease of about 30 years for 619,986 core-kilometres of FOC in the FTTx system for Internet and broadband services in Bangkok and nearby areas.

A call option for FOC in the FTTx system will also be included with an exercise price for FOC rights at about Bt1.3 billion.

Prasert Deejongkit, senior vice president at Bangkok Bank, which acts as DIF’s local underwriter, said that the existing DIF unit holders would be able to subscribe to the new DIF units from May 2-8 and the public from May 2-11.

The final offering price will be set after a book-building process with institutional investors, expected on May 14.

Ekkapob Makeguljai, senior vice president at Krungthai Bank, said that after the DIF’s third investment, the fund will have rights for net income from 15,271 telecommunications towers, rights for net income from more than 2.6 core-kilometres of FOC and rights for 1.2 million ports in the broadband system in the provinces.

In addition, the DIF will have a longer average lease at about 20 years and, as a result, realise income over a longer period, he said.

In a closely watched speech at the Boao Forum — dubbed the Asian Davos — he pledged a “new phase of opening up”, adding that Beijing “does not seek a trade surplus” and wants to boost imports.

After starting the day cautiously, dealers pounced on the comments as a sign that a possible trade war between the world’s top two powers can be averted.

Markets have been roiled in recent weeks as the White House has announced a series of tariffs mostly on Chinese goods as part of his “America First” protectionist agenda, fuelling fears of potentially devastating tit-for-tat measures that could hammer the global economy.

China’s massive surplus with the US is a key complaint of Trump’s who accuses the country of unfair trade practices that hurt American jobs.

His latest measures on Friday battered US stocks, though hopes the issue can be resolved saw Asia post gains on at the start of this week.

“Xi’s speech sends a positive signal to the market since he backs globalisation and the opening up of China market,” Linus Yip, a strategist at First Shanghai Securities, told Bloomberg News.

“Investors were very worried about trade disputes, while his speech calms the nerves a lot. The concern about trade disputes in near-term are still here however, since what Xi pictures is a very long-term picture.”

Fresh Trump probe woe

Shanghai climbed 0.5 percent, Hong Kong jumped 0.9 percent and Tokyo added more than one percent by the break.

Sydney — where a number of firms are listed that rely on China trade — rose 0.8 percent, Singapore put on 0.2 percent and Seoul added 0.3 percent.

There were also healthy gains in Wellington, Taipei and Indonesia.

After last week’s plunge, all three main indexes on Wall Street ended in positive territory Monday but eased from earlier highs after it emerged the FBI had raided the offices of Trump’s long-time personal lawyer.

Michael Cohen has admitted to paying porn actress Stephanie Clifford $130,000. Clifford, who goes by Stormy Daniels, claims she received the money to cover up a sexual encounter with Trump more than a decade ago.

The move is the latest volley in special counsel Robert Mueller’s probe into possible Russia collusion with Trump’s presidential campaign.

It adds to the sense of turmoil on Pennsylvania Avenue and Trump slammed the raid as “disgraceful”, a “witch-hunt” and “an attack on our country”.

Adding to uncertainty for traders are geopolitical worries after an alleged toxic gas attack that killed dozens in a rebel-held Syrian town, which prompted Trump to indicate a decision could be taken imminently on military action.

Russia, which backs the Syrian regime, has warned against such a move, saying it could have “grave repercussions”.

Tensions in the Middle East have buoyed oil prices, which extended Monday’s rally, with gains also helped by speculation the US will tear up the Iran nuclear deal.

Key figures around 0300 GMT

Tokyo – Nikkei 225: UP 1.1 percent at 21,913.06 (break)

Hong Kong – Hang Seng: UP 0.9 percent at 30,487.50

Shanghai – Composite: UP 0.5 percent at 3,154.18

Euro/dollar: DOWN at $1.2311 from $1.2318 at 2100 GMT

Dollar/yen: UP at 107.20 yen from 106.75

Pound/dollar: DOWN at $1.4123 from $1.4127

Oil – West Texas Intermediate: DOWN 15 cents at $63.27 per barrel

Oil – Brent North Sea: DOWN 13 at $68.52 per barrel

New York – Dow: UP 0.2 percent at 23,979.10 (close)

London – FTSE 100: UP 0.2 percent at 7,194.75 (close)

Free shipping still critical, with online shoppers in Asia paying for shipping only on an average of 15 per cent of orders, the lowest percentage globally.

Ninety per cent would buy from a small retailer, while 55 per cent have purchased from international retailers, most of which (77 per cent) are based in Asia.

As more shoppers in Asia buy online, their rising expectations amid a fiercely competitive retailer landscape are driving demand for free shipping, expedited deliveries, and customer-centric return policies to be offered as the standard.

Now in its sixth year, the study commissioned by UPS revealed enduring constants as well as emerging trends that are changing consumer behaviour and preferences in China, Hong Kong and Japan, as well in as the United States, Canada, Mexico, Europe and Brazil.

“Analysing the mindsets and motivations of thousands of shoppers around the world reveals that, far from being a sunk cost, clever shipping and returns solutions are actually an area where retailers can win and retain customers, drive repeat patronage, and encourage shoppers to add more items to their carts – both online and in-store,” said UPS Asia Pacific vice president Sylvie Van den Kerkhof.

“Thailand’s e-commerce market is currently the second largest in Southeast Asia, with a predicted growth of 22 per cent per year until 2020,” said UPS Thailand managing director Russell Reed.

“It has a unique online retail industry featuring many small and medium-size businesses that use Line, Facebook and Instagram to reach online shoppers.

“UPS is committed to helping these businesses succeed with services that provide greater flexibility for delivery and returns, as well as greater connectivity to the global marketplace.”

This year, more than 40,000 distributors from overseas-based MLM companies will come to convene in Thailand, the Thailand Convention and Exhibition Bureau (TCEB), said.

The agency said it is confident that the rising growth trend of the MLM business will drive the incentive sector in the meetings, incentives, conferences and exhibitions (MICE) industry to hit a revenue target of Bt22 billion at the end of fiscal 2018.

Scott Lewis, chief visionary officer of Jeunesse Global, an international multi-level marketing company, said that the company would organise the Jeunesse Expo World Tour 2018 in Thailand this year.

The event, which will be held under the theme Thrive, will take place in Bangkok from September 20-23 at the IMPACT Arena and Hall 1-2 IMPACT Exhibition and Convention Centre.

“This event is the annual celebration for Jeunesse corporate and Jeunesse distributors to revel in the spirit of our joint accomplishments,” Lewis said.

Chiruit Isarangkun Na Ayuthaya, president of TCEB, said: “TCEB is pleased to welcome these top incentive events to Thailand. All of the attendees are top distributors; they are all champions. By having these top distributors to convene and develop the business strategies in Thailand, it will undoubtedly benefit their Thai members and the country’s direct selling industry. At the same time, these events will promote and emphasise the awareness of Thailand’s MICE industry as well.”

In fiscal 2017, Thailand welcomed 1,276,411 MICE travellers, who generated Bt104.6 billion of revenue for the country. Of these, 259,901 were travellers who joined conventions in Thailand and generated Bt24.4 billion in revenue. Some 271,793 were incentive travellers and helped contribute Bt16.6 billion in revenue. Thailand’s top five incentive markets are China, India, Malaysia, Singapore and Indonesia.

“With TCEB’s campaigns and the strong awareness of Thailand as a business and leisure destination, TCEB foresees that Thailand will welcome 285,000 incentive travellers, which generate Bt23.9 billion in revenue for the country by the end of the fiscal year 2018,” said Chiruit.

“Having these top MLM’s events to take place in Thailand helps to emphasise the country’s position as the destination for global incentive events. They give opportunities for Thailand’s MICE industry to showcase the capability to the events’ |hosts, international delegates, and organisers.”

Incentive events to take place in Thailand this year are: the Herbalife North Asia Extravaganza 2018 with 10,000 attendees, from June 7-10 at the IMPACT Exhibition and Convention Centre; the 2018 JM Top Incentive Seminar Thailand with 3,500 attendees, from May 6-10 in Pattaya; the Yofoto seminar with 4,000 attendees, from June 4-10 in Bangkok and Pattaya; and the Infinitus seminar with 10,000 attendees, June 6-16 in Bangkok and Pattaya. It is expected that more than 40,000 delegates will join the incentive events in Thailand this year.

In early February King Mongkut’s Institute of Technology Ladkrabang (KMITL) and Chulalongkorn University (CU), both public institutions based in Bangkok, announced they were joining forces to offer a double bachelor’s degree in artificial intelligence (AI)and robotics engineering.

The four-year programme, the first of its kind in the country, will see students study at both campuses and graduate with a degree from both CU and KMITL upon completion. Admissions for the 40-person programme will start in August.

Universities adapt to meet tech demand:The announcement marks a strategic shift in the higher education sector, according to industry figures, as institutions adjust their strategies to meet the growing technological demands of the economy.

Local media reported that while Thailand produced 2000 AI and robotics engineering graduates last year, annual demand in the labour market stands at 10,000, with collaboration between universities to help increase the number of trained experts needed to support government plans to invest $6 billion in the sector through to 2023 and reduce its reliance on technology imports.

Further highlighting the current mismatch between skills and industry demands, Chen Namchaisiri, chairman of the Federation of Thai Industries, told local media in February that despite growing demand in the industrial sector for graduates with degrees in science, up to 70 per cent of students leaving university had qualifications in social sciences.

Speaking in early March at a forum focusing on education as a driver for Thailand 4.0, the national strategy for creating an innovation-driven economy, Suchatvee Suwansawat, president of the Council of University Presidents of Thailand, said that to meet future demands of the labour market, universities need to strengthen ties with industry and each other, working together to share and develop expertise.

“Workers with basic skills will lose their jobs to robots and other smart systems, while demand for people with complex problem-solving, critical thinking and creativity skills will increase,” he told delegates.

Sector places emphasis on international expertise: In addition to collaborations at the local level, some tertiary institutions are partnering with international players to develop technology and innovation-focused programmes.

“Collaborating with top foreign universities is one of the strategies to push research and innovation, and will provide opportunities to private universities for international student recruitment to supplement local students,” Pornchai Mongkhonvanit, president of Siam University, told OBG.

In early 2017 KMITL formed an alliance with the US-based Carnegie Mellon University aimed at improving the level of education and training offered at the university.

The deal will see the universities develop a research institute utilising management principles from the US, offer dual-degree programmes in electrical and computer engineering and technology ventures, and collaborate on research efforts to improve human resources and technology capacity.

The government is also playing a part in establishing collaboration opportunities with international stakeholders, introducing a measure last June allowing foreign higher education providers to open branches in special economic zones, with initial emphasis on encouraging them to invest within the administration’s flagship Eastern Economic Corridor.

The move, designed specifically to fill skills gaps and draw on international expertise to advance Thailand 4.0 goals, will target courses not already provided by local institutions, with a particular focus to be placed on vocational industries. In addition to the shift in course content, sector stakeholders say that education providers are increasingly looking to internationalise existing programmes, placing less emphasis on Thai-language courses and delivering more programmes taught in English, a skill seen as essential for operating in a global market.

“English and creative thinking skills are highly valued by Thai parents and students and as a result many are attracted to what is not typically available in the Thai system. Additionally, there are significant efforts from private institutions to help the Ministry better understand the importance of creative thinking. Thailand 4.0 is a long-haul strategy, which necessitates drastic changes starting from the basic education. Unfortunately, the efforts towards change are coming largely from the private sector, not the public sector at this time,” Andrew Davies, Head of School, International School Bangkok, told OBG

Need for improvement in higher education standards: While the recent moves reflect a positive shift in the sector, future success in developing partnerships with industry and overseas research institutions could depend on whether the higher education sector can improve its international standing.

Only 10 local institutions made it into the Times Higher Education magazine’s 2018 ranking of the leading 350 universities in Asia, released in early February, with just one – Mahidol University – being ranked within the top 100. Seven of the 10 Thai universities in the top 350 saw their rankings slip compared to the 2017 survey, with two others edging up the ladder and another holding its place.

In contrast, Southeast Asian neighbours Malaysia and Indonesia both improved their standing, with the University of Malay entering the top 50 for the first time and Indonesia doubling its presence in the rankings from two universities to four.

The report, which judges universities on teaching, research, knowledge transfer and international outlook, noted that an ageing population, coupled with oversupply in the sector, had contributed to Thailand’s performance downturn.

Contributed by REY DAVIS-TUPLANO, Editorial Manager with Oxford Business Group in Bangkok. He can be reached at rtuplano@oxfordbusinessgroup.com

The average daily trading value of the SET and the Market for Alternative Investment (MAI) combined last month was up 53.8 per cent year on year to Bt66.4 billion.

SET senior executive vice president Pakorn Peetathawatchai said on Monday that the SET Index’s month-on-month decline was due in no small part to a 6.2-per-cent drop in large-cap energy and utilities stocks, as well as a fall in banking shares, amid concerns over the ex-refinery price-structure revamp and scrapped banking-transaction fee, plus anxiety over US trade policy that dampened overall market sentiment, among other factors.

The average daily trading value of the SET and the MAI during the first quarter surged by about 40 per cent compared to the same period last year, coming in at Bt71.18 billion.

Last month, foreign investors sold a net Bt11.2 billion of Thai shares, in line with sell-offs in almost all stock markets across the region.