Nusara  Banyatpiyaphod, president of the TLAA, said gross premium income of the life-insurance industry in the first nine months rose by 6.01 per cent to Bt414.38 billion.
The economic slowdown has put pressure on new income acquisition, reducing premium income from new policies down slightly to Bt119.27 billion from Bt122.72 billion a year earlier.
However, income from renewal premiums in the first nine months increased to Bt295.11 billion from Bt268.18 billion.
The persistency rate was 83 per cent.
She said the agency channel remained dominant with 48.51 per cent of total premium income in the period, and grew by 4.26 per cent year on year, while bancassurance expanded by 9.05 per cent.
However, income from the direct-marketing channel dropped by 4.92 per cent to Bt11.12 |billion.
The TLAA believes the industry will grow by 9 per cent this full year to Bt585.7 billion despite the sluggish economy, as life insurance is an investment product for people looking for tax deductions.

The 120 delegates from 16 member institutions in 11 economies – Japan, South Korea, Taiwan, India, Sri Lanka, Nepal, Mongolia, the Philippines, Malaysia, Indonesia and Thailand – will be joining the conference for discussions under the theme “Credit Supplementation: The Challenges of Creating Value for Entrepreneurs”.
Deputy Finance Minister Wisudhi Srisuphan will preside over the opening ceremony and Somchai Sujjapongse, permanent secretary for the Finance Ministry, will deliver a keynote speech on “Enhancing Sustainable Growth for Thai SMEs”.
The one-and-a-half-day conference will begin with the challenges of creating value-added credit supplementation systems in the “new normal” economy, presented by South Korea and the Philippines.
The Malaysian Credit Guarantee Corporation will propose an initiative on cross-border guarantees.
In regard to micro enterprises, India and Indonesia will share their success stories on how they have been supporting such businesses.
The closing session will be a discussion of real cases by Malaysia, Taiwan and Thailand on how value can be created for entrepreneurs.
TCG president Nitid Manoonporn said: “As ACSIC is the largest gathering of credit-supplementation institutions in Asia, we will be using this platform to generate new ideas, exchange experiences and share best practices.
“Each market has its own uniqueness and consumer or SME behaviour, [and] the ideas picked up from networking and various discussions will definitely enhance [highlight] the areas needing improvement.”

This year and next, India will be the fastest-growing large economy in the world, according to the International Monetary Fund. By the early 2020s, it is also set to become the world’s most populous country, with an average age of 30, compared with 40 for China and 50 for Japan.
Furthermore, by 2025, India will have 69 cities with a population of more than a million, and by 2030, Mumbai’s economy alone is expected to be bigger than Malaysia’s today.
The Indian government has allocated the equivalent of Bt42 billion to build almost 100 new smart cities and develop satellite towns around existing cities. It has also been actively promoting manufacturing in the country through programmes such as “Make in India”, and needs investment to improve the country’s infrastructure.
This creates significant opportunities for Asian companies that possess the technology and expertise for urban development, infrastructure and energy. However, in some markets, companies are yet to explore what India has to offer.
Take Singapore. While more than 8,500 Indian companies are operating there, with many using the country as a base to expand into the rest of Southeast Asia, businesses in Singapore tend not to look to India as part of their expansion plans, focusing more on the Asean region and China.
This is a missed opportunity, as there is a strong case for businesses to diversify and rethink opportunities in India.
The relationship between Singapore and India dates back hundreds of years and is underlined by historical, commercial and cultural ties. Recently, there has been fresh momentum with the India-Singapore Strategic Partnership, which provided a blueprint for cooperation in defence, trade and investment, skills development and smart cities.
A close connection should also exist among the business communities in the two countries. More than 40 companies from Singapore recently visited Delhi and Mumbai to understand the landscape and network, and establish the right contacts in order to make the leap. Other Singaporean businesses would benefit from doing the same, as India has the potential to be the perfect market for scaling up.
The challenge for any business looking to explore India is making sense of the varying sets of rules and regulations that apply to each of the 29 Indian states. While the Indian government initiated the process of ranking the states on the ease of doing business – which is likely to improve over the years – it still means that entering each state is similar to setting up business in a new market.
For this reason, it makes sense to start with a single state in mind before moving on to another. The rules and strategy that you apply to one state may be very different to what works in another.
India is a place where you need long-term commitment, patience and strong relationships to succeed. Making the right connections locally is key. Even big Chinese and Korean companies tend to work with local partners when they set up business in India.
On average, it takes 27 days to set up a business in India, which is well above the Organisation of Economic Cooperation and Development average of 12 days, and just three days in Singapore. Managing expectations and using local firms to help in the process is important in India.
However, once the challenges are understood and managed, there are mutual benefits to doing business in and with India, and it’s time companies in the rest of Asia grasp the opportunity.

Ajay Kanwal is regional CEO, Asean and South Asia, at Standard Chartered Bank.

Thailand’s current policy rate is 1.50 per cent.
The consistent recovery of Thailand’s economic indicators could help the MPC decide to maintain the rate, KResearch said.
Several Thai economic indicators, in September and the third quarter of this year, signalled a gradual improvement, with expansion of private consumption as a result of a five-month increase in farm income, it said.
Thailand’s tourism sector also grew, while the export sector signalled a recovery with export growth for two consecutive months. Nine-month export contraction declined to 0.7 per cent year on year.

Relief plans for farmers
Along with other Thai government measures, including a new round of relief plans for farmers, gross domestic product is forecast to grow at a rate close to 3.3 per cent for the whole of 2016, the research house said.
All sectors have been keeping a close watch on the United States as the new president’s policies will affect the recovery of the US and global economies, it said.
If there is no change in the gradual improvement in the US economy from previous months, the Federal Reserve is expected to increase its benchmark rate in December, KResearch said.
The Fed’s decision on its benchmark rate and uncertainties arising from the US presidential election could prompt volatility and heighten risks for foreign capital to move out of emerging countries, including Thailand.
KResearch, however, expects liquidity in global money markets to stay at a manageable level. Thailand’s outstanding liquidity in the repurchase market remains high at Bt1.6 trillion, which is adequate for credit expansion.

With a market of over 1,200 properties and nearly 52,000 beds, the new and improved product is turning the heads of traditional hotels.
According to a report on hotel market trends in Southeast Asia by hospitality consulting group C9 Hotelworks, there was a 42-per-cent surge in beds coming online in the “flashpacker” category from 2015 and the third quarter of this year.
Thailand, Malaysia and Vietnam are now the top three players in the region, with Indonesia narrowing the margin with year-on-year growth of 73 per cent.
“Hostels are unlike hotels as average rates are calculated on a per bed basis, compared to hotels which use a per room rate,” Bill Barnett, C9’s managing director, said yesterday.
“Our research across Southeast Asia shows that if comparing the two accommodation models side by side, the average room rates in newer hostel properties are matching or exceeding those in the more established budget hotel tier.”
What has surprised many analysts is the growth in upscale hostel properties that now also offer many creatively designed private rooms.
“Ultimately the mix of accommodation and bed types in what is being termed ‘poshtels’ attracts not only solo travellers and couples, but also taps the fast-tracking friends and family group.
“Hostels are also set to take advantage of Asia’s low-cost airline carrier trajectory in a significant way,” he said.
Viewing C9’s research, it soon becomes evident that a different business model works in city and non-city locations.
Although the market average is 4.1 beds per room, this number shoots up in urban locations like Singapore where the average is just over six beds per room.
Land prices in urban locations remain a significant factor.
However, unlike the more inflexible institutional approach to branded budget hotels, hostels can easily adapt to retro-fits and re-purposed real estate, so more groups are now developing a critical mass of properties.
“In Europe, chains such as Generator and Meininger have attracted institutional investment to spur expansion, and we are already seeing private equity players in Southeast Asia start to chase the trail of what is arguable the region’s must exciting travel space,” he added.

The “Product Manager Business Trip” between October 29 and last Friday was organised by the Tourism Authority of Thailand (TAT) in cooperation with partner airlines to help the Chinese tour operators update their offers to their guests and clients. The trip covers products and services in Bangkok, Rayong, Pattaya and Samui.
Deputy Prime Minister Tanasak Patimapragorn said the familiarisation trip intended to help the Chinese tour operators realise that Thailand has a broad range of tourism products and services they can match with their customers’ needs and sell their tour packages profitably.
The fam trip also included two business-networking sessions with Thai tourism operators in Pattaya for all Eastern Region participants and another in Bangkok for operators in the Thai capital and surrounding areas.
TAT invited more than 100 local tour operators in Bangkok and Pattaya to join. They were encouraged to classify their tour packages in Silver, Gold and Premium categories to make it easier for the Chinese agents to sell them.
China is Thailand’s largest source of tourist arrivals, with 7.9 million visitors in 2015 and a projection of 10 million this year.
TAT said the annual World Travel and Tourism Council (WTTC) summit would take place in Thailand as planned from April 25-27, 2017.
David Scowsill, president and CEO of the WTTC, said that during the current period of mourning and transition, the global summit would serve to unify leaders of travel and tourism in support of Thailand and its people.
This year’s WTTC Global Summit saw 600 leaders and decision-makers from public-sector and private organisations recognise the issue of “Travel Beyond Boundaries” as the tourism business contributes immensely to the global economy nowadays and will do so in the future.

Somchai Sujjapongse, chairman of the presidential selection committee, said the airline earlier invited interested persons to apply for the top post at the national carrier from September 19 to October 31.
“For the sake of Thai Airways International, the company has extended the submission period for the new president until December 2, 2016,” Somchai said in a written announcement last Thursday.
The committee will examine the qualifications of all applicants and shortlist qualified persons for further processing. The procedure is expected to be complete by early next year.

SINGAPORE’S GIC ACQUIRES EUROPEAN WAREHOUSE GROUP
Singapore sovereign wealth fund GIC has bought a top European warehouse developer and manager for 2.4 billion euros (Bt92.8 billion) in Europe’s biggest real-estate transaction this year, a joint statement said yesterday.
GIC, one of the world’s top 10 state investment funds, bought P3 Logistic Parks from US-based TPG Real Estate and Canada’s Ivanhoe Cambridge, said the statement issued by the four companies.
P3 Logistics, based in the Czech Republic, was described in the statement as “one of Europe’s largest fully integrated logistics platforms and developers”. It develops, owns and manages 163 “high-quality” warehouses across nine countries on the continent.
“The transaction values the business at 2.4 billion euros and is the largest European real-estate transaction this year,” the statement said.
Lee Kok Sun, chief investment officer at GIC Real Estate, said the purchase reflected the company’s confidence in the long-term potential of the European logistics sector.
The deal is subject to regulatory approval and is expected to close by the end of the year, the statement said.
Formerly known as the Government of Singapore Investment Corporation, GIC manages the city-state’s foreign reserves with a focus on long-term performance.
It does not disclose the exact value of its portfolio, saying only that it has “well over US$100 billion of assets” in more than 40 countries, including real estate, equities and fixed-income investments.
The US-based Sovereign Wealth Fund Institute says GIC has $350 billion (Bt12.25 trillion) of assets under management worldwide, making it the world’s eighth-largest. – AFP

SMART CONCRETE EYES MORE REVENUE FROM ABROAD
Smart Concrete will expand the number of its sales distributors in Cambodia and Laos in response to rising demand, according to its managing director Rungsee Theepakornsukkasem. It expects its revenue from overseas markets to increase to 5-6 per cent next year from the current 4 per cent.
The company posted third-quarter revenue of Bt82.86 million, down from Bt100.35 million in the same period last year. It posted a net loss of Bt7.48 million in the quarter, up from Bt4.35 million in the same period last year.

PROPERTY FUND CONVERTED TO REIT
The Securities and Exchange Commission has acknowledged a filing for the offering of up to 336,473,000 trust units in Sri Panwa Hospitality Real Estate Investment Trust (SRIPANWA), the first REIT in the country to be converted from a property fund.
SRIPANWA plans to acquire assets invested by the Sri Panwa Hotel Property Fund (SPWPF) and new assets, including a luxury hotel and a resort, which have revenue growth potential from the rising number of high-end tourists in Phuket. The book-closing date for eligible subscribers is November 14.
Veena Lertnimitr, executive vice president for primary distribution at Siam Commercial Bank, as the financial adviser and the lead underwriter, said the filing for the conversion of SPWPF into SRIPANWA had been submitted to the SEC.
SRIPANWA will offer up to 336,473,000 trust units, which will include 200,183,000 units to finance the acquisition of the assets currently invested by SPWPF, via the transfer of assets and liabilities from SPWPF, with a swap ratio of 1:1, and up to 136,290,000 units for SPWPF investors who subscribe before the book-closing date.

Luechai Chaiparinya, first executive vice president and head of the KTB retail strategy product and |segmentation group, said yesterday that the bank had acknowledged |that flooding upcountry had |affected some of its customers and that they might need help from the bank.
The bank is offering to let them pay only the principal for three months, after which it will reduce the interest rate by 0.25 percentage points from the fourth through 12th months.
The offer is available on application until January 31, 2017, he said.
Thaweelap Rittapirom, director and executive vice president of Bangkok Bank, said his bank had normal procedures for customers affected by natural disasters, under which they can ask for an interest waiver. The bank considers requests case by case, he said.

Sluggish economy
He added, however, that none of its customers in the many provinces that had been hit by floods recently had asked for help from the bank.
He said demand for housing loans was slow right now because the sluggish economy had affected the incomes of people who might want to buy a home.
In the first half of this year, mortgage borrowing was stimulated by a tax incentive, but since July, lending has levelled off. He said people were not in the mood to buy a home during the mourning period following the death of His Majesty the King, and housing developers had toned down their promotional campaigns.
Normally, the fourth quarter is the high season for residential sales, but several developers are expected to keep their campaigns on hold until next year.
Thaweelap said that although his bank’s mortgage-lending growth had been good upcountry, overall housing-loan growth would be down this year.
Earlier, Bangkok Bank forecast that housing loans this year would grow by 8 per cent.