JPMorgan Chase, the country’s largest bank, said this week that it earned a record $36 billion profit last year with credit card loans increasing 8%. U.S. Bancorp said Wednesday that it brought in $7 billion last year with the help of a 7.6% increase in its credit card business.

Citigroup, which reported a profit of $19 billion last year, said that its branded cards business increased 8% in North America last year. Even Wells Fargo, which has been struggling to rebound from a series of scandals, found a bright spot with consumers, reporting that credit card loans were up $2 billion during the fourth quarter.

“The credit card market, it’s still a leading growth driver for the consumer bank,” said Ken Leon, director of equity research at CFRA Research.

Consumers’ growing debt loads, expected to increase $80 billion last year, are a cause for concern among some economists but show no sign of slowing. Consumers have shifted away from cash and toward online shopping, making credit cards ubiquitous, industry analysts say. Meanwhile, the strong economy and low unemployment has kept delinquencies low.

“Even though consumers are confident, people are still carrying significant debt,” said Ted Rossman, an analyst for Creditcards.com. “From a bank’s perspective that is a big money maker. From a consumer’s perspective I would encourage everyone to pay that down.”

Consumers’ appetite for credit cards has not been dampened by relatively high interest rates. The average rate is 17.3%, near a record high, for consumers with a good credit score, according to CreditCards.com, which surveys the country’s 100 most popular cards. The cost is steeper for consumers with lower credit scores, 25.3%, according to the site.

Bernie Sanders, I, the Vermont senator running for the Democratic nomination for president, and Rep. Alexandria Ocasio-Cortez, D-N.Y., introduced legislation last year to cap credit card interest rates at 15% but the measure hasn’t gained any ground. And banks haven’t significantly lowered rates they charge on credit cards despite several interest rate cuts by the Federal Reserve, bolstering the industry’s profits, analysts have said.

“Vulnerable borrowers are the most vulnerable to the higher interest rates,” Rossman said.

Such high rates made it difficult for Jonathan Isaza, a Florida college student, to pay off his debt. After moving out on his own, Isaza said was making just $10 an hour. But didn’t initially factor in the cost of car insurance in his budget and accumulating about $2,000 in credit card debt.

“Honestly this is unusual to me. I took a personal financial management class in high school that taught me how to save and budget my money well and how to develop good credit,” he said in a Twitter exchange. “Ironically enough, I’m a finance major.”

The high interest rates, nearly 20%, made it difficult to pay down the debt, Isaza said. “I would pay what I could but since the balance was high at the time the interest would put it back to where it was,” he said.

Eventually Isaza said he found a better-paying job and switched insurance companies, helping him drive down his debt. “I can finally start saving,” he said.

Joe Martin, a marketing executive in Utah, is among many consumers who are able to avoid interest changes by paying off their bill every month. Martin pays a yearly fee for two credit cards he uses for routine purchases while accumulating reward points for free flights and hotel stays.

“I have always paid things off quickly,” Martin said, adding that it is a habit his parents encouraged.

He is at the “heart of the storm” of new credit card offers but has yet to be tempted, Martin said. “We go to Costco frequently and they have a [credit card] offer but I don’t necessarily need that.”

Also driving profits for banks are “swipe fees” that card companies collect from retailers, typically 2% of the total purchase, industry analysts say. The more consumers use their cards, the more companies earn – whether the customer carries a balance or not.

Wells Fargo reported that the volume of credit card purchases increased 4% during the fourth quarter and that the number of active accounts had reached 8.1 million. Last year, JPMorgan Chase said merchant processing volume increased 11%.

“The most profitable customers for credit companies are high income people who spend a lot and pay their bill on time,” said Aaron Klein, a Brookings Institution fellow.

The intention is to foster its digital competitiveness through moves undertaken on its own or via partners.

The allocation is separate from SCB’s regular investment budget.

Arthid said the bank is keen to invest several million baht in each of several undisclosed companies, but the budget need not be depleted this year alone.

In a separate matter, SCB and Ayeyarwady Bank (AYA Bank), the second-largest bank in Myanmar, on Wednesday signed an agreement to collaborate in developing cross-border payments and fund transfer services between the countries.

WHA, a major industrial park operator in Thailand and Vietnam, has reaped much benefits from the recent wave of production base relocation from China to Thailand due to the US-China trade war, rising labour costs and regulatory issues, said Jareeporn Jarukornsakul, chairman and Group CEO of WHA Corporation Plc.

“Manufacturers in China have faced rising labour and regulatory costs for many years while the recent trade dispute between US and China served as a catalyst for plant relocation,” she said at an annual  seminar hosted by the Economic Reporter Association on Wednesday (January 15).

Although the US and China have reached a first phase trade deal, conflicts  between the world’s two largest economies is expected to continue due to their rivalry for global leadership, she said.

The trade dispute combined with Thailand’s Eastern Economic Corridor project helped pull in foreign investment last year after the country had gone out of favour for foreign direct investment for many years, she said.

WHA’s industrial land sales have risen substantially in recently years. Between 2018-2019, Chinese investors outpaced their Japanese counterparts in  buying industrial land parcels from the WHA Group, she said.

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Key manufacturing moving to Thailand are electronics, auto and consumer goods  , she noted. However, auto and auto-parts manufacturers prefer Vietnam as their first destination, followed by Thailand among Asean countries.

For the bigger picture of manufacturing relocation out of China,  26 plants have moved to Vietnam, eight to Thailand, four to Cambodia, three to Malaysia and two to Indonesia, she said.

If the 10 Asean nations and countries in Asia Pacific could sign a free trade deal under the Regional Comprehensive Economic Partnership (RCEP) next month as expected, it will accelerate foreign direct investment in Thailand and the region, she said.  However, Jareeporn said, investors and exporters have raised concerns about the strengthening baht.

“Rising baht value has increased investment cost in Thailand while exports face fierce competition,” she pointed out. Thailand also faces the challenge of producing more skilled workers to meet the demand of foreign investors, she added.

Visit Limlurcha, president of the Thai Food Processors’ Association, said the value of food exports is expected to expand between 2 to 5 per cent this year after contracting 1.3 per cent last year, the deepest drop in four years.  In 2019, the export value of farm products contracted 2 per cent while processed food exports grew 2 per cent. Appreciation of the baht and intense competition from neighbouring countries were the main factors, he said.

He said exports to China and the US expanded last year although the two countries were engaging in a trade war. China imported more chicken from Thailand due to the outbreak of swine African flu in the country.

Value of food exports amounts to Bt 1 trillion annually compared to Bt 2 trillion in the domestic market. The home market could expand further given the Thai population of 70 million plus the annual arrivals of 40 million foreign tourists, he said.

Thai export performance this year is closely linked to the US-China trade relation, and the US-Iran conflict. Prolong conflicts could dampen consumer confidence and spending, he noted.

Drought may adversely affect production of farm products this year, Visit said.

Tourism Council of Thailand’s president Chairat Trirattanajarasporn, said  the industry is expected to expand this year. The government has estimated foreign arrivals to reach 41 million this year, up from 39.7 million last year. However, local hotels and tour operators have to adjust amid intense competition as travellers now have more choices in accommodations, including   house rental while the number of free independent travellers (FIT) is rising, currently accounts for 60 per cent of all arrivals.

With more tourists not being parts of large tour groups, tour operators have to change their business strategy, he said.

He raised concerns about the price war among tour agents. “Cutting prices will make everyone worse off, we should not compete on pricing but the quality of services,” he suggested.

Meanwhile, Wichian Premchaiswadi, vice chairman of the Digital Council of Thailand, is optimistic on the advent of 5G,  the next generation of mobile technology, saying that it will boost most Thai businesses this year.

When consumers can download media content faster, they may change their behaviour due to user experience. How fast and widely the public will adopt 5G technology depends on the readiness of the infrastructure, resolving issue of 5G standards and service cost, he added.

The soul-stirring coastal haven, which combines a modern essence with the charming maritime heritage of Koh Samui, marks the first time a hotel under the Meliá Hotels & Resorts brand has been opened in Thailand and is the first property under AWC’s portfolio following the company’s initial public offering.

The opening of Meliá Koh Samui, Thailand is one of the latest milestones of AWC’s strong growth pipeline that AWC continues to enhance and develop according to the IPO plan, said Wallapa Trisorat, AWC’s CEO and President.

Meliá Hotels International will help AWC in creating a synergy to connect with target customers across the world, she added.

Following the opening of Meliá Koh Samui, Thailand as well as the recent signing of Courtyard by Marriott Phuket Town, AWC’s operating assets in the hospitality segment have increased from 14 to 16 hotels with the number of rooms growing from 4,421 to 4,869.

“We have led the Imperial Boat House hotel in Koh Samui through a significant revival and converted it into Meliá Koh Samui, Thailand with the aim of offering a truly unique guest experience,” Wallapa added.

“As the hotel boasts the first lagoon pool and the largest swimming pool in Koh Samui, along with a creative combination of hydrotherapy facilities like jacuzzi, water massage and rooms with a direct pool access, guests will find themselves relishing in the soothing fascination of water features”.

“The hotel also offers a unique experience for guests as they will be able to stay in suites fashioned after boats. These unique settings will enable them to enjoy a fun-filled and peaceful vacation in a serene atmosphere,” she added.

Meliá Koh Samui, Thailand is nestled on Choeng Mon Beach, just 15 minutes from Samui International Airport. The hotel is a 159-room and 41-suite property with a host of outstanding facilities.

“Meliá Koh Samui, Thailand is only the beginning of the company’s strategic partnership with Meliá Hotels International. A number of other top-notch hotels and resorts from the prestigious hotel chain will be pioneered in Thailand in coming years,” she added.

“This landmark project in Koh Samui is the start of a strategic roll-out of the Meliá brand in Thailand and at least two more hotels will be opened in key destinations across Thailand, including Innside Bangkok Sukhumvit and one establishment in Chiang Mai. We will work closely with Meliá Hotels International to enhance guest experiences, drive new tourism demand and create economic opportunities for Koh Samui, and the whole of Thailand,” Wallapa said.

The makeover project will cover the refurbishment of its exterior and interior design as well as the transformation of Thaniya Road.

The new-look Thaniya Plaza will be introduced under the concept “The Future of Thaniya,” aiming to add vibrancy to its neighbourhood, reinforce its position as a landmark of Silom Road, and showcase its complete Golf Centre.

Meanwhile, more magnetic and lifestyle shops, as well as green area, will be added, catering to the lifestyle of a new generation and tourists.

The first phase of the renovation will start in April, to be completed early next year. During renovation, businesses at the venue will not be disrupted.

Tasnawat Sombuntham, Managing Director of Thaniya Group, said: “Built on a vacant land in Silom district, the long-standing Thaniya Plaza has been operating for 30 years. The complex of two adjacent buildings, consisting of an office building and a plaza building, is connected to the BTS Sala Daeng Station and MRT Silom Station”.

“Thaniya Group is one of the first land developers to introduce the concept of mixed-use development by adding a four-floor retail podium at the front building (Thaniya BTS Wing) and the main building (Thaniya Plaza). At the retail area, more than 80 per cent of the tenants operate golf shops, making Thaniya Plaza the largest golf centre in Thailand and Southeast Asia”.

Others include Japanese restaurants and lifestyle shops, such as a camera store selling film cameras, a rarity these days, he said.

With great success over the past three decades, Thaniya Plaza has been well-known among business communities as well as Thai and foreign tourists. The complex is recognised as one of the landmarks in the Silom area.

Thaniya Plaza’s renovation plan is aimed at reinforcing its position and responding to the new lifestyle of consumers.

Furthermore, in line with the policies of the Bangkok Metropolitan Administration (BMA) and the Collaborative Networks of Business Operators in Silom Area to develop Silom Road into a clean, beautiful, organised, safe, and modern street, the Thaniya Group is now ready to lead the change.

With an investment of over Bt 1 billion, the group will develop Thaniya Plaza’s retail zone into a “Lifestyle Mall of the Future” to meet the needs of all customers. The renovation project will a harmonious look for the two adjacent buildings.

With the transformation, Thaniya Plaza will be introduced under the concept “The Future of Thaniya” showcasing a modern style that gives importance to the environment and energy-saving practices.

Thaniya Plaza’s design concept, Modern and Green, is based on survey results showing that the public wants to see more green space in the Silom area.

There will be four storeys of retail space or a total of 12,000 sqm, of which 8,500 sqm is located inside Building A (Atrium) on Thaniya Street and 3,500 sqm inside the Building B (BTS) on Silom Road. Two connecting bridges between Building A and Building B will be located on the 3rd floor and 4th floor.

Furthermore, the landscape on the ground floor will be transformed to increase more green area and create a link between the two buildings.

In building A, the 1st and 2nd floors will serve as a golf centre, featuring a golf simulator and golf equipment from top brands.

The 3rd floor will house lifestyle shops showcasing lifestyle products and services, including beauty clinic, dental clinic, beauty stores, and many others.

ALT Telecom Plc, Advanced Wireless Network Co Ltd, Cable Connect Co Ltd, Dtac TriNet Co Ltd, Interlink Telecom Plc, Symphony Communication Plc, TCC Technology Co Ltd, Triple T Broadband PCL, True Internet Corp Co Ltd, True Move H Universal Communication Co Ltd and United Information Highway Co Ltd inked the deal.

The parties will be able to collaborate on the commercial use of shared infrastructure operated by TOT nationwide.

TOT set the rental fee starting at from Bt9,650 per subduct per kilometre per month, in line with market benchmarks from the National Broadcasting and Telecommunications Commission. One subduct is equivalent to three to four microducts.

The operators are likely to secure a volume discount based on existing and new contracts, as well as contract length. The public will benefit from the lower charges, improving access to connectivity services.

The move is aimed at reducing visual pollution, avoiding duplicate investments and encouraging fair competition. This is line with the government’s vow to beautify cities, putting both electrical and telecommunications poles and lines underground nationwide.

The agreement aims to explore and develop cross-border payment for workers and for small and medium-sized enterprises’ cross-border transactions in order to encourage the use of formal cross-border channels through the banks.

The banks also agreed to explore the baht-kyat direct conversion to support and service Thai and Myanmar clients of the banks.

This collaboration makes the two banks the pioneers in support of the recent policy made between the Central Bank of Myanmar and the Bank of Thailand on collaboration to explore the use of the baht and kyat for cross-border trade settlements.

Currently, there are about US$1.1 billion (Bt30 billion) foreign direct investment from Thailand, making Thailand the fifth largest investor in Myanmar.

AYA Bank will cooperate with SCB to help facilitate some of the Thai companies that need the Myanmar kyat for their investment and working capital requirements in Myanmar, as well as for trade purposes.

SCB established its Representative Office in Yangon in 2012. SCB has been extensively supporting Myanmar banks and businesses through the years in terms of supporting FDIs into Myanmar and provided over $200 million in trade credit to local partner banks.