Caterers gain access to more airports

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http://www.nationmultimedia.com/detail/Economy/30347046

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Caterers gain access to more airports

Economy June 06, 2018 01:00

By   THE NATION

THE CABINET has unlocked draft contracts on air catering between the Airports of Thailand (AOT) and Bangkok Air Catering Co Ltd (BAC) and LSG Sky Chefs Co Ltd of Germany in a move that allows the two caterers to expand their services beyond Suvarnabhumi International Airport to other airports in the country.

Transport Minister Arkhom Termpittayapaisith said the Cabinet yesterday gave the green light to the draft amended contracts concerning the services of the air catering operators.

The move came after BAC and LSG Sky Chefs sought to expand their catering services to customers in other locations, including the Hua Hin and U-Tapao airports.

“Earlier, AOT and both caterers had contracts determining that the caterers would operate air catering within Suvarnahumi International Airport only,” Arkhom said.

“Now, we have opened up Don Mueang International Airport to them, so there will be more customers for them. Besides, U-Tapao airport, which will be upgraded to a higher level of commercial operations, has not yet had air catering services. With these contracts unlocked, the private sector will be able to begin services immediately and this will be beneficial for everyone.”

U-Tapao airport handles about 300,000 passengers a year. Arkhom said this figure may be too small to interest caterers now, but this would change with the expansion plans for the airport.

If the number of passengers rises to 3 million a year in the future, this would be more attractive for catering operators, he said.

AOT president Nitinai Sirismatthakarn said that the easing of restrictions under the contracts would help not only the air caterers but also the broader aviation industry.

Under the air catering contracts, each caterer is required to contribute 12 per cent of its income to the AOT, which now earns about Bt100 million per year from these services.

JSCCIB maintains year’s growth forecast, highest rise expected for Q1

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http://www.nationmultimedia.com/detail/Economy/30347043

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JSCCIB maintains year’s growth forecast, highest rise expected for Q1

Economy June 06, 2018 01:00

By   THE NATION

THE JOINT Standing Committee on Commerce, Industry and Banking (JSCCIB) will review its economic forecast in the next meeting on July 3, while expecting this year’s economic expansion to be within its estimated range of 4.0-4.5 per cent.

Predee Daochai, chairman of Thai Bankers’ Association, said the country could see the highest quarterly economic growth at 4.8 per cent in the first quarter of this year. However, economic expansion might then slow down, but no less than 4.0 per cent, for the following quarters of the year.

This year’s economic growth, therefore, is expected to be within JSCCIB’s estimated range of 4.0-4.5 per cent with export growth forecasted at 5-8 per cent, said Predee who is also president of Kasikornbank. Headline inflation is projected at 0.7-1.2 per cent.

“This year’s economic growth will be reviewed to touch the upper estimated range of 4.5 per cent. Information and figures for June will be gathered for the review in the next meeting on July 3,” he said.

In May, the Bank of Ayudhya (BAY) revised up its forecast of this year’s economic growth to 4.7 per cent from the earlier estimate of 4 per cent after higher-than-expected rises in export, consumption and private investment in the first quarter, reflecting higher growth distribution in other economic figures in addition to export and tourism.

Thai growth is projected at 4 per cent or higher for the other three quarters of the year, the bank said. It projects headline inflation and core inflation at 1 and 0.7 per cent, respectively.

Meanwhile, risks spanning from low agricultural product prices to high crude prices to purchasing power of consumers will still be followed up, while a close watch will be kept on Italy’s political developments and the US trade policy which could spark trade retaliation from its major partners, thus affecting world commerce. Other factors are fluctuations in the money and capital markets, Predee said.

Visit Limlurcha, vice chairman of Thai National Shippers’ Council (TNSC), said that crude price which has risen to US$70-$80 per barrel could be good for Thai exports as our trading countries will have higher purchasing power as a result.

However, if crude price surged to $100 per barrel, the cost of Thai export will rise, he said. A present, Thai exporters can afford higher transport costs.

Ghanyapad Tantipipatpong, TNSC chairman, says the council still expects Thai export to rise by 8 per cent this year, given the growing economies of Thailand’s trading partners in the main, secondary and potential markets; the likely rises in crude price which could lead to higher purchasing power of oil-producing countries and the likely price increases of oil-related and agricultural products.

In the first four months of this year, Thai export increased 11.53 per cent in term of US dollar, while inched up 0.58 per cent in term of the baht, reflecting wider differential as a result of the Thai currency’s appreciation, Visit said, adding the baht at 33 per US dollar is good for Thai export.

Tak Bunnag, head of global markets group at BAY, said that the baht is expected to appreciate to 31.25 per US dollar by the end of the year and may continue its appreciation next year. In the first half of next year, the baht is expected to hit 30 per US dollar due to Thailand’s sound economic fundamentals and the general election.

The money market is expected to move with volatility in the latter half of this year as the global economy will likely grow at decreasing rates, he said.

While higher Thai import could lessen pressure on the baht, higher US bond yield, if above 3 per cent, could affect investment in emerging-market countries, including Thailand, with quick capital movement.

Actions identified to help close gender pay gap

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http://www.nationmultimedia.com/detail/Economy/30347041

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Actions identified to help close gender pay gap

Economy June 06, 2018 01:00

By The Nation

New research from US-based Accenture has identified 40 workplace factors that create a culture of equality – including 14 factors that matter the most. The research, published today in the company’s “Getting to Equal 2018” report, details the most-effective actions that business leaders can take to accelerate advancement and help close the gender pay gap.

The research is based on a survey of more than 22,000 working men and women in 34 countries – including more than 1,400 in the United States – to measure their perception of factors that contribute to their workplace cultures. The survey was supplemented with in-depth interviews and a detailed analysis of published data on a range of workforce issues.

“Our research shows that in companies with cultures that include the workplace factors that help women advance, men thrive too, and we all rise together,” said Intira Laomeepol, Managing Director, Resource Operating Group, Accenture in Thailand. “We see this research as a powerful reminder that building a culture of equality is essential to achieving gender equality because people, not programs, are what make a company inclusive and diverse.”

Accenture’s research found that in companies where the 40 factors are most common, everyone benefits:

98 per cent of employees are satisfied with their career progression

90 per cent of employees aspire to get promoted

89 per cent aspire to become senior leaders in their organisations

IATA: GOVTS URGED TO DISMANTLE BARRIERS TO FREE MOVEMENT

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http://www.nationmultimedia.com/detail/Economy/30347035

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IATA: GOVTS URGED TO DISMANTLE BARRIERS TO FREE MOVEMENT

Economy June 06, 2018 01:00

By The Nation

The International Air Transport Association (IATA) has called on governments to intensify efforts to spread the economic and social benefits of aviation by removing onerous barriers to the free movement of people across borders.

“Over the next 20 years, the number of passengers will double. That’s excellent news for the global economy, as air connectivity is a catalyst for job creation and GDP growth. But we will not get the maximum social and economic benefits from this growth if barriers to travel are not addressed and processes streamlined,” said Alexandre de Juniac, IATA’s Director General and CEO. There are many barriers to travel, ranging from visa restrictions and government information requirements to the capacity of current facilitation processes to absorb growing numbers of air travelers. IATA has evolved a comprehensive Open Borders Strategy to help governments work with industry to maintain the integrity of national borders while removing inefficiencies that prevent the industry from satisfying travel demand.

Research by the UN World Tourism Organization (UNWTO) and the World Travel and Tourism Council (WTTC) on the impact of visa facilitation indicates that $89 billion in tourism receipts and 2.6 million jobs would be created in the Asia-Pacific region alone with the reduction of barriers to travel.

75% foreign cap mulled for port

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/detail/Economy/30346968

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75% foreign cap mulled for port

Economy June 05, 2018 01:00

By THE NATION

LEAM CHABANG Port officials have conducted a feasibility study on setting the level of foreign investment in the development of Phase 3 of the deep-sea port at 75 per cent – the same level as that for the the high-speed train project linking the Don Meuang, Suvarnabhumi and U-Tapao airports.

Laem Chabang Port managing director Montree Lergchumniel said after the second “market sounding” on the development of the port’s phase 3 yesterday that from the preliminary study the project might allow private investment at the ratio of between Bt95 billion and Bt105 billion.

Both international and local investors are allowed to take part in the bidding.

The foreign investment ratio in the port’s first and second phase development is capped at 49 per cent.

He added that if the foreign investment ratio in the third phase is raised to 75 per cent, this ratio in the first and second phase development will remain the same at 49 per cent.

The port has also studied the legal aspects in the event of raising the foreign ownership ratio in the first two phases to 75 per cent after concessions of the first two phases have expired.

The biddings for the development of the third phase is divided into three contracts. It might develop an additional contract if it is later found that the project has attracted overwhelming interest from investors.

Montree said that the project has already drawn interest from foreign investors from China, Japan, and Europe.

The port will hold the third ‘market sounding’ in July in pararel with it carrying out the Environmental Health Impact Assessment before announment of the term of reference in August. The bidding is expected to take place in December with start of construction in February.

PM Office minister Kobsak Pootrakool said that bidding of the key mega projects in the Eastern Economic Corridor (EEC) would take place either late this year or early next year to assure investors that the EEC projects would definitely take place.

The government has planned to call bids of eight projects in EEC within its tenure, including the high-speed train project, and the aviation maintenance and repair centre.

Kobsak added that Laem Chabang port would become the country’s main port for import and export in the future, therefore, its development must be hastened.

He said that Prime Minister General Prayut Chan-o-cha has a policy to fully support the participation in the biddings by both Thai and international investors.

Therefore, all EEC projects might have to allow foreign ownership up to 75 per cent if permissible by law.

The complete development of phase 3 of the Laem Chabang port will increase the port’s container throughput capacity in handling shipments to 18.1 million 20-foot equivalent units (TEUs) from the current 11.1 million TEUs.

Digital currencies destined for bourse

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/detail/Economy/30346967

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Digital currencies destined for bourse

Economy June 05, 2018 01:00

By THE JAKARTA POST
ASIA NEWS NETWORK
JAKARTA

CRYPTOCURRENCIES will be future trading subjects or commodities at Indonesia’s bourse, even though the Bank Indonesia (BI) does not recognise such currencies as payment instruments, the Trade Ministry’s Futures Exchange Supervisory Board (Bappebti) has decided.

“The Bappebti head has signed a decree to make cryptocurrency a commodity that could be traded at the bourse,” said head of Bappebti market supervision and development bureau Dharma Yoga as reported by kontan.co.id.

Dharma said the decision was made after the board conducted a study on the matter over the last four months and concluded that cryptocurrencies deserved to be considered commodities.

The government will soon issue a supporting regulation that will rule on several issues including currency exchange companies, taxation and prevention of money laundering and terrorism financing, said Dharma.

He said the issuance of the regulation would involve a number of institutions like BI, the Financial Services Authority (OJK), the Taxation Directorate General, the Financial Transaction Reports and Analysis Centre (PPATK) and the National Police’s Densus 88 counterterrorism squad.

Dharma added that in line with the government’s efforts to issue the regulation, Bappebti also called on existing crypto bourses like Indodax and Crypto Community to submit their proposals on the product specification and the trading procedure.

The product specification will, among others, include information about the type of cryptocurrencies and tick size of the trading instrument, while the procedure will include the trading hours and dispute settlement mechanism, he said.

“We call on the bourses to prepare concrete proposals on the issue,” he added.

Deloitte, IATA offer advice on managing airports

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http://www.nationmultimedia.com/detail/Economy/30346932

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Deloitte, IATA offer advice on managing airports

Economy June 04, 2018 11:10

By The Nation

The International Air Transport Association (IATA) and Deloitte have published guidance materials for governments considering public-private partnerships (PPP) and other forms of privatisation programmes for airport infrastructure.

“Airports provide critical infrastructure,” said IATA director general and CEO Alexandre de Juniac. “It’s important that governments considering privatisation or PPP take a long-term view and focus on solutions that will maximise the economic and social benefits of connectivity.

“The aim of ‘Airport Ownership and Regulation’ is to help governments make better-informed decisions using best-practices gleaned from decades of experience with the good, the bad and the ugly of airport privatisation.”

“Airport Ownership and Regulation” builds on industry best practice and the results of research into the effectiveness of different ownership and operating models from the perspective of a range of stakeholders.

The phenomenal demand for air connectivity is outpacing the capacity of current airport infrastructure and many governments are challenged in finding the effective financing means to enable critical expansion.

“The global growth of airports,” said Deloitte global airport lead Dorian Reece, “is increasingly putting airports under pressure, increasing the need for governments to explore alternative financing solutions and enhance management efficiency.

“The current pipeline of airport privatisation being considered globally makes this guidance booklet timely, and we believe it will support governments to better assess private sector participation options.

“There is a critical need to ensure strategic objectives are appropriately assessed and the benefits and risks understood when evaluating airport ownership and operating model options. Whatever ownership or operating model is applied, governments, investors and aviation stakeholders need to put the end-consumer central to the selection of the optimal solution.”

Stable outlook for Singapore banks

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http://www.nationmultimedia.com/detail/Economy/30346931

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Stable outlook for Singapore banks

Economy June 04, 2018 11:01

By The Nation

Moody’s Investors Service says that the outlook for the banking system in Singapore (Aaa stable) is stable over the next 12-18 months.

“Healthy economic growth will support the banks’ assets quality, while higher interest rates and a decrease in impairment allowances will also lift profitability,” says Eugene Tarzimanov, a Moody’s Vice President and Senior Credit Officer.

“The banking system’s strong capital levels, as well as funding and liquidity, indicate that the banks can comfortably support credit growth, which we expect will increase in 2018-19.”

Estonia plans to leverage its e-government

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http://www.nationmultimedia.com/detail/Economy/30346889

Kersti Kaljulaid
Kersti Kaljulaid

Estonia plans to leverage its e-government

Economy June 04, 2018 01:00

By KHINE KYAW
THE NATION
TALLINN, ESTONIA

AS ESTONIA strives for more effective e-government solutions to increase citizen satisfaction, the nation plans to forge international links, said the nation’s President Kersti Kaljulaid.

Speaking to a group of five journalists from developing countries invited to the Presidential Palace on May 30, the president said that Estonia wants to cooperate with both developed and developing economies around the world with respect to their digitalisation efforts.

“Every State has a different culture but all the governments are trying to improve their e-government systems,” she said. “Good governments provide a safe hub for their citizens, regardless of where they live.”

President Kaljulaid said e-government must be built to meet the needs of citizens. She stressed the need for vision, political will, clear roadmaps and strong coordination to ensure a citizen-centric e-government.

“People and businesses are already on the Internet. Governments have no option – they have to follow,” she said.

“No need to rebuild trust, if you never lose it. And not losing it means being inclusive of all citizens, always.”

The president provided some recommendations for developing nations. “First of all, the most important point to start is to do it universally – all services on the same platform without limiting it to public services only. Allow private companies on the same platform. This will create a universal ecosystem for all people in your country.

“Second, make sure that everybody has genuine access to these systems. Finally, run training programmes for people. Make it very clear to the people. You cannot do it without a massive training exercise,” she said.

She stressed the importance of delivering digital identities to citizens by using the elements of security. She urged the protection of people’s rights, along with providing improved digital services and increase engagement with the private sector.

“They [the private sector] are the ones who will lead the economic game. Get them involved. Make them play a part in the costs of establishing the system. Let them feel free to create different services on the same platform,” she said, adding that all of her nation’s e-government services were developed by private companies.

Despite being a nation with only 1.3 million people, Estonia is known for its advanced technology and digital solutions. According to the e-Estonia showroom, 99 services in the country are online, and Internet is a social right of the people. Only marriage, divorce and selling houses are not digital.

The government’s efforts were reflected by the country’s top rankings in various global indexes. Estonia tops the Internet freedom index by Freedom House, Global IT report on mobile network coverage, the tax competitiveness index by OECD, and the digital development index by Barclays. It also stands first in the entrepreneurship index by World Economic Forum and EU digital economy and social index by European Commission.

It ranked second in the global transformation index by Bertelsmann Stiftung, an independent German foundation, and ranked 12th in World Bank’s Ease of Doing Business report.

Yet, the president seems not to be fully satisfied with the current achievements. Driven by her strong political will and thirst for a brighter future, she is committed to improving digital services.

“Technology could be changing. We do not want to be hampered by that,” she said. “In Estonia, the digital environment is very clearly regulated. Because of the security model, it is very clear about what needs to be done. Now we need to take the regulations to the next level,” she said.

Kaljulaid stressed the need for more block chains to meet people’s demands. The Estonian government is now discussing very clear and unique regulations of the digital environment. “We have decided that we will do a paperless government meeting. There will not be any paper in the government meeting room. There will only be computers,” she said.

“Whoever wins the next general elections, there is a consensus that the e-government model needs to be developed.”

She believes the nation will reach a much higher level before the European job market opens. She urges other nations to urgently undertake two things: improving the living standard of the people and providing freedom by easing restrictions – including media freedom, freedom of speech and of expression.

“We are following the new developments in technology, which makes it very easy for both public and private sectors to express their new ideas. It is very easy to start a business here. As a member of the European Union, we are also part of a much bigger market,” she said, highlighting that investors from Asian countries including Japan and Korea are excelling in their business in Estonia.

The president is no longer worried about a brain drain, as the average monthly salary for a citizen of Estonia has reached nearly 1,300 euros (Bt48,500).

Time to buy for investment as SET likely to rebound later

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http://www.nationmultimedia.com/detail/Economy/30346886

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Time to buy for investment as SET likely to rebound later

Economy June 04, 2018 01:00

By THERDSAK THAVEETEERATHAM
Executive Vice President/Research
ASIA PLUS SECURITIES

Outflow of foreign capital has pressured the Thai stock market for a long time. From early 2018 to now, foreign investors were net accumulated sellers of Thai stocks worth more than Bt130 billion. However, local purchase of Thai stocks, particularly from local institutional investors, has remained strong. Meanwhile, compared to early 2018, the SET Index has been positive so far.

We expect foreign capital outflow to almost end its journey from the following three factors.

First, differential between 10-year US bond yield has gradually moved into a balance after the US bond yield has remained higher than the Thai bond yield since January 9, with a differential higher than 30 basis points. Lately the differential has been only 4-5 basis points. In the meantime, the baht has depreciated from US$31 to above $32. Given the mechanism has started to return to a balance, capital outflow is expected to be lower.

Second, in a case for readjusting the weight of the MSCI, in the latest round, A-Share of China and South Korea have been increased in weight significantly. To the Thai stock market, from the date MSCI announced stock entries and exits on May 15 to May 31 (12 trading days), foreign investors net sold Thai stocks totalling Bt384 billion in the belief that such portfolio adjustment would likely end from May 31.

Third, previous uncertainties over the schedule for the general election are ebbing. However, the bills on election to the House of Representatives and selection of senators have not been against the Constitution and, then, the schedule has been made relatively certain. This helped reduce pressure of foreign sales.

With regard to valuation, the SET Index at 1,730 points is equal to a price to earnings ratio of 15.7 times at the end of 2018 and, at this point, could attract long-term investors. Based on these elements, the Thai stock market’s downside risk is not much, while the upside for long-term investment has been open. Focus on stock accumulation. We pick BBL, TCAP from the banking group, CK from the construction group and AMATA, WHA from the industrial estate group.

PRAKIT SIRIWATTANAKET

Vice President

KASIKORN SECURITIES

There exist negative external factors extending from interest rates, inflation, trade wars, geopolitical issues and capital outflows from emerging markets to move markets with volatility and all has been linked to the US.

Given its better financial status, growing economic expansion, low inflation at 1 per cent (the lowest in emerging markets), external debt at 32 per cent of the nation’s GDP, its foreign reserves at 43 per cent (the highest in emerging markets) and the country’s current account surplus at 12 per cent (the second-highest after Taiwan), Thailand has not faced as much capital outflow as other countries. Thailand’s economy has still shown good signs after improvements in April’s economic figures like export, consumption, private investment and public spending.

Besides, the EEC Act and certainty of the next election will likely attract foreign capital, and foreign investors’ confidence could promote expansion of private investment. Given the better-than-expected overall outlook, KS Research has raised its forecast for this year’s GDP growth to 4.5 per cent. We expect such sound economic fundamentals to support the SET Index to rebound in the latter part of the year to 1,898 points with limited downside risks. Therefore, this is the opportunity to buy for more investment. We pick banking, communications, construction and property stocks.