Kattiya Indaravijaya, president of KBank, said that the Office of Insurance Commission (OIC) wants banks to educate customers about insurance products that are not deposit products.
Kattiya said KBank aims to attract middle-income workers who are earning between Bt15,000 and Bt30,000 a month. As a result, KBank’s back-office processes must be adjusted and employees trained to comply with the business plan.
She said that middle-income earners currently represent only 10 per cent of Kbank’s insurance customers due to its earlier focus on upper-income customers, people who earn at least Bt50,000 a month.
She said that the bank intends to put much more effort into educating its employees about the importance of insurance to meet the requirements of the lower segment.
The bank has to adjust how its employees sell insurance plans, she added
Most upper-income customers already have insurance plans, and KBank will use data analytics to highlight those that should not be offered insurance products. Data analytics will also be used to match middle-income earners who do not have insurance with an insurance product, which the bank says can be used as a tax deduction.
Kattiya said the current low interest rates may be making insurance less attractive and as such the fee income from bancassurance in 2017 is projected to grow only 4 per cent from double digits this year.
Noppawan Jermhansa, Kbank executive vice president, said that bank’s research revealed that there is demand for insurance products from middle-income earners but they don’t know what kind of protection plan they need to match their requirements. The bank, therefore, has to make it clear which packages comply with customers’ need.
She said that the growth in premiums in 2017 is projected to expand by 4 per cent in line with the expected fee-income growth.

Arturo Planell, Visa country manager for Myanmar, said at a press conference last week that the number of Visa cards in the country had increased by 80 per cent last year, and he expected the growth to continue this year.
He declined to reveal the exact number of Visa cards in Myanmar, due to business confidentiality.
“We have seen very strong growth here, and we are very excited about that. There is a lot of demand, as the country opens up. A lot more Myanmar nationals are flying and travelling abroad,” Planell said.
Last year, the value of transactions made by Myanmar cardholders while travelling overseas grew by 54 per cent.
Meanwhile, the value of e-commerce transactions made on international websites expanded by 108 per cent, mostly from sales of air tickets and accommodation. Currently, the Visa cards available in Myanmar are prepaid cards, issued by four local banks: KBZ, CB, Aya and Myanmar Apex Bank.
This year, the number of retailers that accept Visa cards in Myanmar has increased by 49 per cent to approximately 3,500, while the number of ATMs has risen by 39 per cent, growing to about 2,000 across the country.
At the press conference, Planell was proud to report that the number of Visa card transactions made by international tourists visiting Myanmar had increased by 42 per cent so far this year.
Tourists’ card spending has grown by 22 per cent outside of Yangon, compared to total spending growth of 4.8 per cent across the country.
In terms of the current proportion of nationwide sales volume, Yangon constitutes about 75 per cent, he added.
According to Planell, Visa will work with its partners to expand acceptances outside of Yangon, primarily by maximising acceptance in key tourist destinations such as Mandalay, Inle lake, Taunggyi, Ngapali beach and Bagan.
He foresees a pretty high growth rate outside of Yangon.
“We will make sure there are more and more opportunities for people to use our cards outside of Yangon. That will automatically balance the ratio. We are aiming to have more balance in terms of acceptance ratio,” he said.
“As many people are finding new destinations, we need to make sure that we have more acceptances in those locations. Our focus was in Yangon. Now we are making sure that we drive as much acceptance as we can outside of Yangon,” he explained. Although many foreign investors consider Myanmar’s infrastructure as a business obstacle, Planell is optimistic about the situation.
“Infrastructure has actually advanced a lot. If you went back to a few years ago, Internet connectivity was a problem. Now, with the big push by three telecom companies here, connectivity is no longer an issue. There is still definitely a lot of room for improvement, but we are very encouraged to see that the infrastructure is moving in the right direction,” he said.
“In terms of technology infrastructure, it has actually come a long way. Connectivity is no longer an issue. The biggest infrastructure [requirement] is capacity. Human capital with proper know-how is now a No-1 constraint,” he told the press. In an effort to help Myanmar with capacity-building, the firm has conducted many seminars and workshops by bringing specialists from Singapore to the country to train the staff of its partner banks.
Visa also plans to promote clients’ financial literacy by educating them about electronic payments. However, Planell acknowledged that it was very hard to change the culture of cash in a cash-dominated society like Myanmar.
“That is going to be a long journey. In Myanmar, for a long time there has been a strong preference for cash. Consumers like to use cash. The whole system is to make cash easy to transact. So, it is going to take some time to change that behaviour to educate consumers about the benefits of electronic payments,” he stressed.
“It will take investment and time. But, that is something we are definitely committed to continuing to drive for,” he added.
Planell believes the demand for electronic payments from both Myanmar citizens and international tourists is on the rise. To him, Myanmar can benefit from expanding access to electronic payments, which bring convenience, transparency and security to both consumers and retailers.

India is promoting the partnership to develop the civil aviation industry as air traffic between the two neighbours increases.
“Growth in air traffic needs to be supported by adequate aviation infrastructure. India can partner with Bangladesh to execute projects being planned to develop and modernise the civil aviation infrastructure in the country,” Indian High Commissioner Harsh Vardhan Shringla said yesterday.
Presently, around 100 flights are operated weekly between India and Bangladesh, connecting various Indian cities, including New Delhi, Kolkata, Mumbai and Chennai from Dhaka and Chittagong, he added.
“More airlines from both countries are launching or planning to launch flights between India and Bangladesh. There is also interest in launching flights to new destinations such as Guwahati in Assam,” Shringla said. He spoke at the launch of Novoair’s flights on the Dhaka-Kolkata route at Hazrat Shahjalal International Airport in the capital yesterday.
Dhaka-Kolkata is the second international route for private carrier Novoair, which kicked off its maiden international flight on the Dhaka-Yangon route a year ago.
India has proposed an open sky policy on a reciprocal basis to promote tourism, people-to-people contacts and trade, he added.
The increasing interest of airlines on routes between India and Bangladesh has come at an opportune time, he said, adding that India-Bangladesh trade and commercial ties are on an upward trajectory today.
The bilateral trade has registered a substantial increase over the last few years, while companies from both India and Bangladesh are exploring new opportunities for investing and setting up joint ventures in each other’s country, he said.
In an effort to increase people-to-people contacts, the envoy said India has made efforts to streamline its visa issuing process.
The number of visas issued this year would be more than one million and would far exceed the number of visas issued last year, he said.
As a result, Bangladesh has become one of the biggest sources of tourist arrivals from India, he said.
In this context, he said new flights between different destinations in India and Bangladesh will give further boost to trade, tourism, cultural exchanges and people-to-people contacts and sustain the momentum towards closer ties.
“The entry of more airlines will also foster greater competition, thereby generating more value for customers,” he said.
It is their endeavour to improve connectivity between India and Bangladesh by creating multimodal transport links and facilitating easy cross-border movement of goods and people, and the launch of the Novoair flight is an important step towards meeting this objective, said the envoy.
Novoair, which started operations in 2013, will operate four flights a week from Dhaka to Kolkata.
The airline will fly from Dhaka on Tuesdays, Thursdays, Fridays and Sundays at 2.25pm and arrive in Kolkata at 3pm, while it will fly from Kolkata at 4pm and arrive in Dhaka at 5.35pm (local time).
The promotional fare of a two-way Dhaka-Kolkata ticket, including taxes and surcharges, will start from 9,999 Taka (Bt4,500).
The airlines will also start direct flights from Chittagong to Kolkata on December 14.
At present, Novoair has three EMB-145 jets and three ATR 72-500 aircraft in its fleet.
On the domestic front, it flies to Chittagong, Cox’s Bazar, Sylhet, Jessore, Saidpur, Rajshahi and Barisal.
Civil Aviation and Tourism Minister Rashed Khan Menon, Civil Aviation Authority of Bangladesh’s Chairman Air Vice-Marshal Ehsanul Gani Choudhury and Novoair’s Managing Director Mofizur Rahman were present at the function.

But other than losing another bragging right, what does this much-lamented shortcoming mean to Hong Kong and its people?
It’s hard to imagine that banks in Hong Kong have all fallen asleep while their competitors in other cities are racing ahead of them in the fintech contest. The banks we know about are big boys who can take care of themselves very well indeed. You can bet that if they see technology that can enhance their profits and expand their market shares, they will put money and effort into adopting it.
Fintech, short for financial technology, isn’t a new concept after all, and the technologies involved in developing it are mostly available in the marketplace. Of course, proprietary software is needed to make it work. But this is not rocket science.
Many commentators have lamented that Hong Kong is lagging behind other regional cities, notably Singapore and Shenzhen, in progressing toward a cashless society. That’s the yardstick of most |relevance to the public. But most people in Hong Kong don’t find the deficit to be that much of an inconvenience.
To be sure, many small shops and caterers around town accept nothing but cash in exchange for goods and services. Taxi drivers, in particular, are adamant that they will only accept cash so they can keep the small change as tips.
As long as you don’t take a taxi, or don’t feel the need to patronise those cash-only outlets, you can get around Hong Kong carrying only your credit cards and the ubiquitous Octopus card for all public transportation (except taxis), grocery shopping at supermarkets and convenience stores, and dining at most chain restaurants or fast-food outlets.
Before you do that, remember to arrange for an auto-recharge of your Octopus card. You will need to go to your bank to do this. But you will only need to do this once and then it is good to go.
Credit cards would come in handy for shopping for big-ticket items at department stores or eating out at fancy restaurants. Some specialty shops selling electronics products don’t accept credit cards, preferring direct debit bank cards instead. So, bring yours along if you plan on buying a pair of exotic headphones or a tube amplifier.
Some commentators have talked glowingly about the convenience of online shopping and advanced booking at restaurants and cinemas. You can do all that in Hong Kong as well with your mobile phone.
In fact Amazon, which doesn’t have an operation in Hong Kong, is more than happy to send you |what you ordered from its US website.
You’d be amazed how much cheaper it is to shop online for a wide range of consumer goods, particularly clothing and accessories, even after factoring in the mailing cost, than to buy the same items in Hong Kong where the vendors have to mark up their prices to cover high rentals.
Consumers’ old habits tend to die hard. Despite the convenience of the PPS payment service which has been around for many years, there are |still lines of people, cash in hand, waiting to pay for their utility bills at the beginning of every month. This chore should have become antique by now.
But such incidents should not be mistaken as evidence to condemn Hong Kong’s backwardness in fintech. They are just a quirky consumers’ preference which, no doubt, will die out in time.
There are still people who harbour a deep mistrust of online payments, fearing that hackers will break into the system and steal their money. This is something that concerns even the most ardent proponent of fintech.
Consumers can only trust that the financial institutions that render fintech services have taken every step to ensure that they are secured. It’s like trusting banks to manage depositors’ money prudently.
Even if you’re a cashless kind of person, do carry some cash when you go out, just in case. It happened to me once a long while ago. After eating at an upmarket restaurant, I asked for the bill only to be told |by the courteous waiter that the |line to the card centers had broken down.

The government will next year also issue bonds worth Bt100 billion to raise funds to distribute directly to 18 provinces throughout the Kingdom for their economic and social development. The move is aimed at boosting liquidity and spending power in the local economic system.
Attractive promotions and events have been launched to entice higher spending by shoppers during the festive year-end period, especially for gifts and hampers.
Nattakit Tangpoonsinthana, executive vice president for marketing, Central Pattana Plc (CPN), the operator of CentralPlaza, CentralFestival, and CentralWorld shopping malls, said the government has been in power for a while now and it understands the current economic situation.
“The government has launched economic stimulus measures continuously, specifically in each quarter. The tax-breaks will pave the way for more optimism in shopping sentiment and for the overall economy. It will encourage local shoppers to buy domestically,” he said.
Nattakit said the company, which manages 30 shopping centres in the Kingdom, expected higher sales at its malls by 20 to 30 per cent by the end of this year, driven by the government’s shopping incentive.
“We are set to open three new shopping centres next year – in Mahachai at the beginning of the third quarter, in Nakhon Ratchasima in September, and at the end of the year in Phuket,” he said.
CPN yesterday announced it was joining hands with MasterCard, Thai Life Card, and The 1 Card, to invite all Thais to enjoy a simple countdown to the New Year by sharing joy and solidarity in a Bt300-million campaign called “Lighten Up Together”.
More than 10 million decorative lights will embellish all of CPN’s shopping centres. It will also host Southeast Asia’s largest gift festival to be held from December 10 to January 15 at CentralWorld and also at 30 branches of CentralPlaza and CentralFestival nationwide.
Chamnarn Maytaprechakul, executive vice president of The Mall Group, said the shopping tax incentive was great for the country’s economy and retail industry, as it would boost consumer spending.
“A similar tax incentive by government last year helped stimulate year-end spending and The Mall Group saw sales surge by 20 per cent in the first seven days of the incentive being announced. If there are more of these incentives, as suggested by the Finance Ministry, then the economy will get a boost,” he said.
The Mall Group has offered more promotions to attract customers as a result of the shopping tax breaks. The company also said it could process tax forms efficiently to meet consumers needs. Product categories most customers are expected to spend on include gift hampers, fashion, cosmetics, electronics and consumables at Home Fresh Mart and Gourmet Market.
Sompong Rungnirattisai, commercial director at Tesco Lotus, said that Tesco Lotus would welcome the government’s tax incentive shopping programme, as it would lift overall consumer sentiment and have a positive impact on consumer spending.
“Whether this year’s programme lasts 15 days or 30 days, Tesco Lotus will be ready to serve our customers by issuing the necessary documentation for tax rebate,” he said.
“The tax programme will coincide with our ‘United Hearts’ campaign to help customers with the cost of living. Under this campaign, four streams of activities will introduce unprecedented price reductions across Tesco Lotus stores. Our permanently low prices will continue across key product categories namely fresh food, rice, snacks, and mum and baby products. This will be supported by weekly and monthly promotions offering further discounts and offers such as ‘Buy 1 Get 1 Free’. Seasonal products like gift baskets, gift sets and confectionery will also be available at great prices,” he said.
“Lastly, the United Hearts campaign will offer discounts of 20 per cent or higher on more than 700 products such as detergents, personal care products, food and beverages. This part of the campaign is a collaboration between Tesco Lotus and 14 leading FMCG companies in Thailand in a joint investment worth more than Bt200 million,” he said.
“The aim of the United Hearts campaign is to help alleviate the burden our customers face, as our own surveys have found that a large number of Thais are concerned about the cost of living. The campaign, coupled with the government’s tax initiative, should help to stimulate spending and uplift Thai spirits,” he added.

The grant, provided by the Japan Fund for Poverty Reduction (JFPR) and administered by the Asian Development Bank (ADB), will be implemented over a period of one|and a half years, starting in November 2016. The project is aligned with the recently approved national water resource management strategic plan of the Thai government, with the Department of Water Resource under the Ministry of Natural Resources and Environment acting as the executing agency.
The project will develop simulation tool for base-integrated water resource management (IWRM) at the river basin level. The IWRM modeling tool is a computer-based hydrological model that enables users to test the hydrological impact of different water resources management approaches in a river basin.
“Under the ADB policy on water sector, the bank recognises that IWRM, based on river basin, is essen?tial in having a participatory and inclusive management model,” said Luxmon Attapich, senior country economist at ADB’s Thailand Resident Mission. “Through the base IWRM model, demonstration of the possible impacts of different water management scenarios can help the stake holders reach agreement on how to manage river basins and sub-basins to minimise the risk of future floods and improve the livelihoods of communities.”
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. |In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.

 

“Bangkok was voted as most visited city in the world and this is an opportunity for us to introduce more hotel brands here,” Basset said.
He said the first new chain would be a kind of combination of hotel and residence, but the actual brand name has not been picked yet.
Accor expected to manage the first residence project within the next 12 months. The group is eyeing Bangkok and other major tourist destinations such as Pattaya, Hua Hin, Koh Samui, Phuket, and Chiang Mai for the residence segment.
“Accor will offer this option to new project or existing developers who want to renovate their properties to get into the new segment,” he said.
In Southeast Asia, Accor has introduced this kind property in Hanoi and Manila.
“The residence project will be a mid-scale property, set to serve high-profile buyers as well as investors,” said Basset.
The second new brand will be Mama Shelter – the lifestyle that also focuses on food and beverage – scheduled to open its doors in 2018 in Bangkok’s Sukhumvit area.
The group will soon sign a management contract with a local developer and Thailand will be the first country in Asia to have Mama Shelter. The brand is already well established in Europe.
Accor recently announced a plan to operate its Jo&Joe brand in Bangkok and elsewhere to serve young tourists.
In Thailand, the Accor group currently operates 69 hotels under multi-brands with a total of 16,023 rooms. There are 18 hotels with 4,134 rooms plus 1,000 villas in the pipeline to be opened in the next three years.
Its occupancy rate for hotels in Thailand by September-end was up by three percentage points and the average room rate grew by 2.16 per cent from the same period last year due to strong growth in tourism.
However, the occupancy rate at hotels in Bangkok dropped by 0.2 per cent while the average room rate in Phuket fell by 4.25 per cent due to the decline in arrivals from China.

Jaruwat Vaisaya, acting commissioner of the office of legal affairs and litigation at the Royal Thai Police, told The Nation yesterday that the Thai government was also strictly enforcing the laws and imposing punishments so that no one could exploit fishery resources without concern for human rights or caring for the sustainability of fishery resources.
The National Council for Peace and Order (NCPO) has tightened the penalty for those breaking the fishery act.
Jaruwat, who also chairs the subcommittee for inspecting, following up and litigating cases under the Command Centre for Combating Illegal Fishing, said the NCPO order will increase the government’s efficiency in punishing and fining violators, as now there are no loopholes.
In the new year, the government would continue to stringently inspect Thai and overseas waters to monitor illegal cases and human rights violations. The government will also continue to amend and adjust laws in accordance with high international standards and increase efficiency in fishery resource management, Jaruvat said.
He added the government would also tighten cooperation with the EU and international organisations to draw up measures for legal and sustainable fishing.
On December 15, the centre will submit to the EU a report on Thailand’s progress in enforcing laws and punishing violators involved with illegal fishing. Thailand will send a team to explain its actions after sending the document to Brussels.
Since Jaruvat took charge of the panel investigating cases related to illegal fishing, more than 2,000 cases of illegal fishing were probed. Of those, about 1,500 cases related to violating the vessel monitoring system (VMS). Now, the centre can move ahead with prosecution in these cases in a court. About 100 cases continue to be under investigation. The remaining cases pertain to human rights abuse, the port act, and fishery act.
To increase efficiency in punishing those who breach the fishery act, the centre has also moved to stringently enforce the penalty and fines on violators.
Since January this year, 61 cases relating to encroachment of overseas waters off Thailand were investigated, leading to punishment for the culprits after the Royal Thai Police took charge of those cases, Jatuvat said.
He added that the government would continue to act against the violators and strictly punish them.
In the past, the European Union was not satisfied with some of the stipulated penalties, as it found the fine amount – Bt1,000-Bt1,500 per case – to be too small.
However, the Thai government now imposes stringent punishments and in some cases, the fine has been several hundred million baht. The EU is quite satisfied with the tighter Thai law, he added.

This will provide unprecedented opportunities for cross-border trade and investment, officials said.
In a statement issued at the conference, the ministers noted the importance of economic corridors in the subregion’s development, and emphasised “the need to transform the GMS economic corridors into logistics hubs to support cross-border trade, investment, tourism, and stronger cooperation”.
The ministers endorsed 107 projects under a new regional investment framework implementation plan valued at $32.6 billion. They examined ways to enhance competitiveness and accelerate inclusive development in the GMS, and reviewed the long-term strategic framework for the subregion’s economic and social development.
The ministers also highlighted new trade and transport measures that will take effect in 2017. These include implementation of the GMS Cross-Border Transport Agreement, the expansion of single-stop customs inspections at key border crossing points to reduce processing time, and the introduction of a GMS road transport permit that would further facilitate the cross-border movement of vehicles, people, and goods.
Myanmar’s capital, Nay Pyi Taw, the country’s two largest cities – Yangon and Mandalay – and the country’s main port in Yangon will all become part of the GMS economic corridor network for the first time.
Vientiane will also be incorporated in the network, forging stronger links between the landlocked nation and neighbouring Thailand, Vietnam, and China.
“Today’s agreement to enhance connectivity between Mekong capitals, major economic centres and important maritime gateways establishes a firm foundation for a more prosperous and inclusive subregion,” said Asian Development Bank (ADB) vice president Stephen Groff.
Mekong nations have been pursuing the “economic corridor” system for more than two decades. Economic corridors are investment areas, usually running along major highways, which connect centres of economic activity. In the GMS, these corridors have provided jobs, increased access to goods and services for millions of people, and contributed to a 15-fold growth in intra-GMS trade over the past 15 years.
The ADB has supported the establishment of the east-west, north-south, and southern GMS economic corridors since their inception to promote the subregion’s economic growth and integration.
The subregion’s rapid growth and the opening up of the Myanmar economy have highlighted the need to further expand these corridors, according to officials attending yesterday’s meeting.
The GMS groups Cambodia, China (specifically Yunnan province and the Guangxi Zhuang autonomous region), Laos, Myanmar, Thailand, and Vietnam. Under the GMS programme, investment projects worth almost $18 billion have been undertaken since 1992.
The Manila-based ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, this month the ADB will mark 50 years of development partnership in the region.
It is owned by 67 members – 48 of whom are from the region. In 2015, ADB’s assistance totalled $27.2 billion, including $10.7 billion co-financing.

In addition, the CLMV (Cambodia, Laos, Myanmar and Vietnam) market continues to expand.
In October, Thai exports to this market grew 3.6 per cent, driven mainly by a large surge in demand for jewellery.
However, risks remain. The global economic recovery is currently not sufficient to drive global trade expansion to the previous satisfactory levels, while worries continue on uncertainty over protectionist US trade policy.
Thailand’s trading partners have seen relatively sharp depreciation in their currencies, including the euro and Chinese yuan, against the US dollar, which could affect Thai exports to these destinations.
In October, Thai exports shrank 4.2 per cent year-on-year, while the 10-month figure contracted by 1 per cent.
Agricultural and agro-industry product exports declined 8.1 per cent year-on-year in October, after its two-year high in the previous month, driven mainly by drops in export quantities of sugar, rice and rubber. The 10-month figure contracted 5.4 per cent.
Manufacturing product exports fell for the first time in three months, down 2.7 per cent year-on-year in October. This was mainly due to drops in exports of finished oil products, computers and peripherals, gold, cars and parts, steel, and TVs and components. The 10-month figure shrank 0.9 per cent.
In October, Thai exports mostly declined in key destinations such as the United States, Europe, Asean, the Middle East and Australia, while there was continued expansion to Japan, China, South Asia and CLMV.
In the first 10 months of this year, Thai exports to Australia grew 7.2 per cent, 0.9 per cent to the US and 0.5 per cent to Japan.
For the whole of 2016, Thailand’s export growth is forecast to stay in previously estimated range of between minus 1 per cent and zero per cent.