Narrowing the Digital Divide in ASEAN: Infrastructure, Skills and Opportunities #SootinClaimon.Com

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https://www.nationthailand.com/pr-news/business/40006185

Narrowing the Digital Divide in ASEAN: Infrastructure, Skills and Opportunities


The ASEAN Digital Masterplan 2025 envisions ASEAN as a “leading digital community and economic bloc” – a bold plan that demands effective investments in infrastructure and skills.

The Singapore Institute of International Affairs (SIIA) organised the webinar, “Investing in Digital Infrastructure: Narrowing the Digital Divide in ASEAN”. Moderated by Mr Satyanarayan Ramamurthy, Partner and Head of Infrastructure, Government and Healthcare with KPMG Singapore, and SIIA Associate Council Member, the webinar featured Dr. Le Quang Lan, Assistant Director, Head of the ICT & Tourism Division, ASEAN Secretariat, and Mr. Andrew Williamson, Vice President and Economic Advisor of Government Affairs, Huawei.

Governments need to ensure equitable digital transformation

As the adoption of digitalisation increase, ASEAN governments have been pressured to develop digital infrastructure. Yet in the process, Dr Lan emphasised that millions of people, particularly the less digitally-enabled, may be excluded from affordable services and relevant content. Mr Williamson stated that businesses must adapt, they would either “go digital or go dark”. To prevent large-scale inequalities, governments have to encourage private sector investments in rural areas too.

“In a contactless world, the vast majority of interactions with customers and employees must take place virtually. With rare exception, operating digitally is the only way to stay in business through mandated shutdowns and restricted activity,” said Williamson.

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Unfortunately, telecommunications infrastructure is too costly to establish in far-flung regions. Rural residents and small businesses also lack the readiness to create economic value after being connected. A holistic approach is essential for equitable and effective results. Local governments would need to incentivise the private sector to digitally onboard the entire nation, promote the innovation of cost-effective digital solutions, and also raise public digital literacy and awareness.

ASEAN as a source of guidance for comprehensive and rationale policies

ASEAN’s importance lies in knowledge-sharing and shaping legal frameworks. The regional bloc collates and disseminates best practices across the region. The Digital Masterplan 2025 is an example of the bloc is assisting less-digitalised economies on issues including, but not limited to strengthening rural connectivity, coordinating cross-border data flows, and adopting new (Industrial Revolution 4.0) technologies. Attention is particularly directed to scaling up Micro, Small and Medium Enterprises (MSMEs); ultimately providing affordable services to rural, urban and international consumers. Mr Williamson highlighted that the region has promising unicorns, so retaining digital talent would also be a priority.

A concern, however, is underlying geopolitical tensions. Both Dr Lan and Mr Williamson warned against the bifurcation of digital and IR 4.0 technologies. Sino-American tensions have deepened techno-nationalism, which only results in losses to all parties involved. Countries are cautioned against decisions based on political motivations. Dr Lan affirms that “ASEAN very much abides by the principle of technology neutrality…we [ASEAN] shall not prevent [the adoption] of one technology over another.” This principle will play a key role in developing a common standard that can maintain global value chains while sustaining regional business development.

Private sector innovation critical to realising the visions of a digital economy

Based on a historical example of the optimisation of internal combustion engines in the 19th century, Mr Williamson illustrated that the world is at the brink of revolutionising new technologies such as Artificial Intelligence and machine-learning. This is an opportunity for ASEAN to lead, innovate and dramatically reduce digital infrastructure costs. Bigger players with rich resources like Huawei would need to be the first movers. Major companies can, and have already been, partnering with governments in producing training and upskilling programmes. Whether it be young students, small enterprises, women or mid-career switching talents, public-private collaborations would be beneficial in creating an attractive and diverse digital talent pool. The end goal is a robust and productive digital ecosystem that boosts the entire private sector, including MSMEs.

Involving all stakeholders is key to an inclusive digital community

ASEAN is a diverse region; each country’s digital strategy has a different level of maturity. It is crucial that the initiatives take advantage of the stakeholder’s capabilities, while also accounting for their needs. With an internet economy set to reach US$300 billion in 2025, more opportunities would arise. As a member of ASEAN and a key hub in the region, Singapore’s interests are tied to this ongoing transformation.

Published : September 15, 2021

Bangkok Metropolitan Administration Deploys Oracle Exadata Cloud@Customer to Deliver More Efficient Public Services to Residents #SootinClaimon.Com

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https://www.nationthailand.com/pr-news/business/40006173

Bangkok Metropolitan Administration Deploys Oracle Exadata Cloud@Customer to Deliver More Efficient Public Services to Residents


• Helps Bangkok Metropolitan Administration consolidate its IT infrastructure and accelerate the journey toward a digital government • BMA gains the simplicity, flexibility and affordability of the cloud in its own data center

Bangkok Metropolitan Administration (BMA), the local adminstrative authority of the city of Bangkok, responsible for the well-being of the city’s 11 million residents, has adopted Oracle Exadata Cloud@Customer to help fulfill its plans of becoming a Digital Government. With Oracle Exadata Cloud@Customer, a fully managed cloud database service deployed in its own data center, BMA has been able to consolidate its IT infrastructure and, as a result, improve the delivery of services to the residents of Bankok.

Suthathip Soniam, Director – General Strategy and Evalution Department,BMA said, “The citizens of Thailand are becoming increasingly digital-savvy and the Thai government recognizes the importance of keeping up with this trend to deliver digital services. As we accelerate our journey toward becoming a true Digital Government, in line with the Government of Thailand’s vision of Thailand 4.0, it is essential that we put in place a foundation that enables us to focus more on innovation instead of maintenance and operations. Oracle Exadata Cloud@Customer is helping us to accomplish exactly that.”

BMA today manages 50 district offices across the city, which between them run 40 different Oracle Databases, resulting in a range of disparate and siloed data sources. This prevents management and staff from having a single and consolidated point-of-view of data across the organization, hindering the efficient delivery of services to residents.

“With the implementation of Oracle Exadata Cloud@Customer as our primary IT platform for all of the key applications running our operations, we can be able to provide more mobile-friendly services to residents. Having one single, integrated cloud platform can help us gain data-driven insights. Additionally, higher system efficiency and speed in collecting and analyzing information can help reduce the wait time to be served and citizens’ service requests or inquiries can be attended to in a shorter time than ever before,” continued, Suthathip said

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With Oracle Exadata Cloud@Customer, BMA has been able to move its existing Oracle Databases quickly to the cloud as it provides full compatibility with the organisation’s existing Exadata systems. It also delivers higher database performance, consolidation, and scaling than any other on-premises database cloud service. As a result, BMA can now run its applications faster and at a lower cost, and leverage the autonomous operations, and low-cost subscription pricing of Oracle Cloud Infrastructure (OCI).

Additionally, Exadata Cloud@Customer delivers the world’s most advanced database cloud service to customers who require their databases to be located on-premises behind their own data center’s firewall, ensuring BMA remains in complete control of its data and addresses data sovereignty, security and latency concerns effectively.

Bangkok Metropolitan Administration Deploys Oracle Exadata Cloud@Customer  to Deliver More Efficient Public Services to Residents

Taweesak Saengthong Managing Director of Oracle Corporation (Thailand) Co., Ltd. added, “Just like the private sector, today’s public agencies have an exponential amount of data and workloads which are continuing to grow dramatically. To obtain the agility, flexibility and price-performance to meet their needs, moving to the cloud is clear. However, this can be challenging for organisations such as highly regulated government agencies where data sovereignty and security can be a concern—or certain workloads that require an on-premises environment. Exadata Cloud@Customer empowers these organisations to embrace the benefits of cloud and focus on driving innovation while keeping all database information secure in their own data center.”

Published : September 15, 2021

Central Pattana launches modern single house project NIRATI Donmueang targeting young generations #SootinClaimon.Com

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https://www.nationthailand.com/pr-news/business/40006121

Central Pattana launches modern single house project NIRATI Donmueang targeting young generations


Central Pattana plc. is preparing to launch NIRATI Donmueang, a horizontal residential project worth 1.85 billion baht, in the third quarter this year with official pre-sales on 18-19 September.

The project, presented as a “mixed product” consisting of 262 units of single houses, twin houses, and town homes of 4.29-12 million baht in the Don Mueang- Vibhavadi area in Bangkok, targeting young generations which the company considers a group with a real demand, high purchasing power and good credits.

NIRATI Donmueang is one of the projects under the new brand NIRATI for modern tropical houses with lush landscape with an aim to inspire the young generations. NIRATI Bangna and NIRATI Chiangrai, two other projects under the brand, have been launched earlier.

Central Pattana is moving forward with its plans to develop horizontal and vertical real estate projects, aiming to become a leader in mixed-use projects with shopping centers and mixed products centered around residential projects supporting each other.

In addition to the NIRATI brand, Central Pattana has developed NINYA, a brand for high-end homes of 9.9-15 million baht, and NIYHAM, a brand for luxury homes of 25 million baht and higher. The company is confident it will reach its sales and ownership transfer targets for residential projects this year.

Flight Lieutenant Kree Dejchai, executive vice-president of residential business of Central Pattana, said, “The year 2021 is a huge challenge for the Thai real estate market. However, Central Pattana, with its strength and experiences of over 40 years, continues to focus on sustainable development and growth that support the urban economy and development.”

Central Pattana launches modern single house project NIRATI Donmueang targeting young generationsCentral Pattana launches modern single house project NIRATI Donmueang targeting young generations

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“As for the investment in residential projects in 2021, the company targets to align the projects with its core businesses of shopping centers and mixed-use projects in order to create a new landmark of life or ‘center of life’ that can cater to lifestyle needs, highlight local identity, and be friendly to the community and environment,” he said.

“Central Pattana’s real estate brands differ themselves from other players in the industry by providing high quality of life and of community for ‘Central residents’, which promote long-term benefits for both living in the projects and investing in them,” he said.

“The company provides a CRM (customer relationship management) program allowing residents to enjoy numerous benefits from the Central Group and The 1. In addition, juristic persons for the projects are managed by Central Pattana to ensure the best services, as well as convenience and safety at a level not offered by other residential projects of the same tier. A double safety approach, including a double gate system and VMS (visitor management system), is used for all residential projects of Central Pattana,” he said.

Central Pattana launches modern single house project NIRATI Donmueang targeting young generationsCentral Pattana launches modern single house project NIRATI Donmueang targeting young generationsNIRATI Donmueang, the latest residential project in the lineup, is a horizonal mixed project for modern tropical homes with lush landscape adject to Choet Wutthakat Road in the Don Mueang-Vibhavadi area near the Don Mueang Tollway and the dark red line of the SRT train system, allowing only 20 minutes of travel to Chatuchak.

The project has a total area of 45-3-68.5 rai and 262 units, consisting of single houses on land plots of 50.2 square wah minimum, twin houses on land plots of 36.9 square wah minimum, and townhomes on land plots of 22.1 square wah minimum.

Each of the single houses and twin houses has a usable area of 180-227 square meters, while each of the townhomes has a usable area of about 143 square meters. The starting prices for these units are 4.29-12 million baht*.

The project is separated into the villa zone, consisting of two-story twin houses and two-story single houses, and the townhome zone for the 2.5-story townhomes.

Privacy is ensured by a triple gate system. Facilities include a tropical clubhouse to help resident reconnect with the nature on their days off, a saltwater swimming pool, a fitness center, the main park with a focus on nature, a large playground and a basketball court unique with creative design.

“Despite the overall real estate situation, the company is confident that it can generate sales and ownership transfers for residential projects in according to the targets this year,” said Flight Lieutenant Kree.

Central Pattana has earlier launched a number of residential projects, including PHYLL Phahol 34, an eight-story low-rise condominium project with 358 units of 25-35 square meters with a starting price of 2.99 million baht* on a land plot of 3-2-7.4 rai only 20 meters away from Sena Nikhom station of the BTS green line.

Central Pattana launches modern single house project NIRATI Donmueang targeting young generationsCentral Pattana launches modern single house project NIRATI Donmueang targeting young generations

The NINYA Kanlapaphruek is a modern tropical twin house project with 1.5 billion baht adjacent to Kanlapaphruek Road, allowing easy access to the center of Bangkok. The project has 144 units with starting prices of 9-12 million baht*.

The Niyham Boromratchachonnani is a modern classic luxury single house project worth over two billion baht, offering privacy with only 71 units in a lush environment. The project has a completely underground power line system and premium security with no unit immediately placed adjacent to the wall of the project. A double gate system helps separate the residential zone from the rest and a visitor management system allows for complete entry and exit records of visitors with advance appointments possible.

Interested individuals may register to receive special benefits at https://bit.ly/3vQzxbe

For more information, call 096-047-7256, add the Line contact @CPNR or https://lin.ee/0AzYmUd. A map is available at https://bit.ly/3ueChiH

*Conditions apply. The company reserve the rights to make adjustments to conditions and promotions.

Central Pattana launches modern single house project NIRATI Donmueang targeting young generationsCentral Pattana launches modern single house project NIRATI Donmueang targeting young generations

Published : September 14, 2021

The future of workplace in the digital finance organisation #SootinClaimon.Com

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https://www.nationthailand.com/business/40006113

The future of workplace in the digital finance organisation


The Deloitte Company, a multinational professional services network with offices in over 150 countries, has published an article focused on the new era of work environment where organisations need to accelerate their adoption of automation in digital finance organisation.

Written by Bardin Laprangsirat, Deloitte Thailand’s partner, audit and assurance

Just when organisations thought that we had managed to flatten the curve of COVID-19 with plans to reopen the economy, a new wave of COVID-19 variant hit globally again. 

Countries around the globe including Thailand, are in the prospect of continued and extended long lockdowns in an attempt to curb the rising number of Covid-19 infections. Long periods of lockdowns and restricted travel have created immense operational and logistical challenges for organisations who had downplayed the first wave of COVID-19 which had caused long-term effects, as well as the timely adoption of new digital infrastructures and policies to manage a long-term virtual workforce. The pressure to shift from working in the office to remote work from home, including the holistic adoption of digital productivity tools, swapping pencil and paper, drawing boards and blueprints, in-person meetings and get-togethers has moved work from the physical world to a virtual and digital one.  

Covid-19 has shown that remote work does not pose insuperable barriers to productivity. This global force and transformational shift had many organisations realizing that where the workforce are located matters much less than how the work is done. For many organisations, the results of shift to remote work from home have been better than expected. Productivity have shown to improve when working remotely, though it does create new challenges.

A Recent Fortune/Deloitte CEO Survey conducted in October 2020 had indicated that remote work is here to stay with more than one-third of their employees continuing to work from home even a year from now. This has prompted leaders across industries to rethink where their employees work for the longer term—and how this could change their need for office space. The survey reported that 76 per cent of CEOs specified that their organisations would need less space moving forward. This could drive significant cost savings in both operating costs and capital expenditures.

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Real estate and facilities are often one of an organisation’s top three expenses; as a rule of thumb, they can represent two per cent to five per cent of organisational revenue. Working digitally can also deliver sustainability benefits. A more distributed workforce means less emissions due to reduction in travel and commuting, and a smaller real estate footprint with lower construction and operational emissions.

Hence, we should consider the opportunity to find new and better ways of working, we all as new approaches to organising the organisation. Considering transformation into a digital finance organisation is a good place to start. Most of the challenges are a result of the digital-manual hybrid state of financial operations. Instead of working late nights on tedious, manual tasks, the digital finance organisation introduce efficiencies into the organisations and keep the finance team running smoothly even in times of crisis.

Unbundling the traditional manual and labour intensive finance operations workplace digitally, can become a strategic advantage as operational budgeting, cashflow management and visibility has become a top priority during this pandemic.

Taking this into account, organisations need to accelerate their adoption of automation in digital finance organisation. Here are the five key transformation drivers for CFOs to consider:

  1. Go Paperless – Organisations can start considering an end to the use of paper in several processes e.g. memo approval, document approval, procure-to-pay, and order-to-cash processes, etc. Moreover, utilizing e-payments and encouraging suppliers to issue electronic invoices, including establishing a central portal for uploading documents, will be supportive of the paperless processes.
  2. Go Mobile – Organisations may consider replacing all desktop computers with laptops, including looking into possibilities of processing on-the-go via mobile applications e.g. approval workflow on your mobile phone.
  3. Go Cloud – Moving to cloud-based ERP systems, including implementing a cloud-based solution extension from those ERP related to a financial close and reporting platform, which enables the finance teams to work, manage and monitor the close, consolidation and reporting activities online from anywhere. 
  4. Go Automation – Organisations need to accelerate their adoption of automation. The examples are “Optical Character Recognition” and “Natural Language Processing” to automate the data capture of physical documents. Furthermore, leveraging “Robotics Process Automation” technology to automate repetitive, rule-based accounting activities.
  5. Go Analytics – Using analytics to make better people decisions and drive business outcomes, generating highly actionable predictions and insights from your data, and enabling more autonomous decision making.

In conclusion, finance teams need to put in more effort to consider the five key transformation drivers of finance operations. CFOs are facing more challenges from managing their finance team during the lockdown and the mandatory work-from-home policy in many countries caused by the pandemic. Another important facet to consider is that CFOs and controllers should empower their finance teams with the “flexibility” to work from anywhere, real-time collaboration and minimising tedious and manual processes. When work happens in the digital world, then our concept of the workplace must follow suit, or we miss opportunities to help teams be as successful as they can be. How we think about and frame the digital workplace, and the nature of the work that takes place within it, is likely to be what empowers organisations to take full advantage of the benefits it has to offer.

Deloitte Thailand is organizing Digital Finance webinar “Seeing is Believing” on 22 September 2021. For more information, please visit Deloitte Thailand’s Event page .

The future of workplace in the digital finance organisationThe future of workplace in the digital finance organisationThe future of workplace in the digital finance organisationThe future of workplace in the digital finance organisation

Published : September 14, 2021

Name change for company linking three airports with high-speed railway #SootinClaimon.Com

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https://www.nationthailand.com/business/40006127

Name change for company linking three airports with high-speed railway


The Eastern High-Speed Rail Linking Three Airports Co Ltd has changed its name to “Asia Era One”, pushing high-speed train routes connecting the three major airports.

Company president Sarit Jinsit said on Monday that the name change is a bid to reinforce the readiness of the railway project. The company is moving forward with the project to connect the three airports, Don Mueang-Suvarnabhumi-U-Tapao, with high-speed trains.

The project is established under the concept of “reimagining horizons” to elevate the travel experience with modern rail transportation, and to develop the country’s transportation service to become a world-class travel hub with international standards, he said.

“The name Asia Era One is in line with the company’s vision of being the central hub of Asia to connect people and nations for the brighter future. Meanwhile, the name also resonates with Erawan elephant, the vehicle of god Indra, which is a symbol of strength, good deeds and fertility. The company’s aim is to bring pride to the country with its elevated international standards,” said Sarit.

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Published : September 14, 2021

Thai stocks defy Asian gloom after govt announces October reopening #SootinClaimon.Com

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https://www.nationthailand.com/business/40006245

Thai stocks defy Asian gloom after govt announces October reopening


The Stock Exchange of Thailand (SET) Index closed at 1,631.70 on Thursday, up 3.66 points or 0.22 per cent. Transactions totalled THB79.59 billion with an index high of 1,636.01 and a low of 1,628.57.

In the morning session, Krungsri Securities expected the day’s index to rise to between 1,635 and 1,640 points before falling back.

It said the index gained positive sentiment from the rising oil price in response to a decline in US oil storage and the Thai government revealing its timeline for reopening the country next month.

“However, we predict that investors will sell shares to curb risks from the FTSE’s move to cut its weighting of Thai stocks by about US$44 million [Bt1.4 billion],” Krungsri Securities said.

The 10 stocks with the highest trade value today were PTT, DELTA, SCGP, GPSC, BANPU, CPALL, PTTEP, PTTGC, KCE and KBANK.

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Other Asian indices were on the fall:

Japan’s Nikkei Index closed at 30,323.34, down 188.37 points or 0.62 per cent.

China’s Shanghai SE Composite Index closed at 3,607.09, down 49.13 points or 1.34 per cent, while the Shenzhen SE Component Index closed at 14,258.13, down 278.18 points or 1.91 per cent.

Hong Kong’s Hang Seng Index closed at 24,667.85, down 365.36 points or 1.46 per cent.

South Korea’s KOSPI closed at 3,130.09, down 23.31 points or 0.74 per cent.

Taiwan’s TAIEX closed at 17,278.70, down 75.30 points or 0.43 per cent.

Published : September 16, 2021

Gold price drops after mass international sales #SootinClaimon.Com

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https://www.nationthailand.com/business/40006221

Gold price drops after mass international sales


The price of gold dropped by THB50 in morning trade on Thursday.

AGold Traders Association report at 9.24am said the buying price of a gold bar was THB27,900 per baht weight and selling price THB28,000, while gold ornaments cost THB27,394.12 and THB28,500, respectively.

At close on Wednesday, the buying price of a gold bar was THB27,950 per baht weight and selling price THB28,050, while gold ornaments cost THB27,439.60 and THB28,550, respectively.

The spot gold price on Thursday morning was moving around US$1,796 (THB59,147) per ounce after Comex gold at close on Wednesday dropped by $12.30, slipping from the $1,800 level to $1,794.80 per ounce due to pressure as investors scrambled to profit after the gold price rose sharply.

A US stock market rise was another factor that saw gold sales increase.

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The Hong Kong gold price meanwhile dropped by HK$60 to $16,650 (THB70,472) per tael, the Chinese Gold and Silver Exchange Society reported.

Published : September 16, 2021

SET Index expected to rise, then fall today #SootinClaimon.Com

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https://www.nationthailand.com/business/40006218

SET Index expected to rise, then fall today


The Stock Exchange of Thailand (SET) Index rose by 4.65 points or 0.29 per cent to 1,632.69 on Thursday morning, witnessing a high of 1,634.74 and a low of 1,631.23 in opening trade.

Krungsri Securities expected the day’s index to rise to between 1,635 and 1,640 points before falling.

It said the index gained positive sentiment from the rising oil price in response to a decline in US oil storage and the Thai government’s move to reveal its timeline for reopening the country.

“However, we predict that investors would sell their shares to curb risks from the FTSE’s move to reduce weight in Thai stocks by approximately US$44 million [Bt1.4 billion],” Krungsri Securities said.

It recommended purchasing of the following companies’ shares as an investment strategy:

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▪︎ PTT, PTTEP, TOP, PTTGC and SPRC, which benefit from the rising oil price.

▪︎ Hana, KCE, TU, CPF, GFPT, Asian, EPG, NER, Sun and APure, which benefit from a weakening baht.

▪︎ Banpu, Lanna, CKP, GPSC, Gulf and BDMS, whose third-quarter profit is expected to rise.

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The SET Index closed at 1,628.04 on Wednesday, up 4.20 points or 0.26 per cent. Transactions totalled THB73.18 billion with an index high of 1,630.05 and a low of 1,620.84.

Published : September 16, 2021

Baht strengthens a tad on opening #SootinClaimon.Com

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https://www.nationthailand.com/business/40006217

Baht strengthens a tad on opening


The baht opened at 32.86 to the US dollar on Thursday, strengthening from Wednesday’s closing rate of 32.88.

The Thai currency is likely to move between 32.80 and 32.95 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.

Poon said the baht was testing the key resistance level of 33.00 to the dollar due to a host of risk factors faced by the country.

The Covid-19 situation might take a turn for the worse and usher in a new dreadful wave, causing investors to offload Thai assets.

He also pointed out that investors who have purchased short duration bonds are closing their risks. In the past two days, foreign investors have sold short duration bonds worth THB12 billion in total.

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Baht performance hinges on Covid situation: market strategist

Short-term weakening of baht possible amid new Covid wave worries

Baht expected to move sideways as market awaits key US data

Meanwhile, the dollar might strengthen if market worries over an economic recovery do not subside and shareholders are not ready to take risks.

Investor concern is starting to ease over an economic recovery as the Covid-19 situation is seen to improve.

Meanwhile, the US stock index was seeing a rebound after contracting last week, he added.

Published : September 16, 2021

Macau casinos see $18 billion wipeout as China tightens grip #SootinClaimon.Com

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https://www.nationthailand.com/business/40006208

Macau casinos see $18 billion wipeout as China tightens grip


Macaus top gaming stocks lost a record $18.4 billion in combined market value on Wednesday after officials said they would change casino regulations to tighten restrictions on operators, including appointing government representatives to “supervise” companies in the worlds biggest gaming hub.

The Bloomberg Intelligence index of the six big casino operators fell a record 23%. American operators saw the worst selloffs, with Sands China Ltd. sinking as much as 33%, while Wynn Macau Ltd. plunged 34%, both the steepest declines ever. Galaxy Entertainment Group slumped 20%, its sharpest drop in a decade.

The sector also led declines in China’s dollar bond market. A note due 2028 from Wynn Macau sunk 9 cents on the dollar to 91.4 cents, according to Bloomberg-compiled prices, set for its biggest-ever decline. Dollar bonds from SJM Holdings Ltd., MGM China Holdings Ltd. and Melco Resorts and Entertainment dropped at least 3 cents.

Officials in the enclave, the only place in China where gambling is legal, said they would begin a 45-day public consultation period on Sept. 15 to discuss the legal revisions. Among the topics being covered: how many licenses — known locally as “concessions” — will be allowed, how long their terms will be, and the level of supervision by the government.

While license renewals have been expected for some time as the current ones expire next June, the move to tighten regulatory control took the industry by surprise. Besides appointing government representatives, the revisions also propose increasing local shareholdings of casino companies, without elaboration on how these moves will be enacted. Dismay rippled through industry players and analysts after the announcement as China’s ongoing clampdown on sectors from gaming to after-school tutoring appears to have reached Macau at last.

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“The casino issues are a continuation of what’s been a pretty big crackdown,” said Jason Ader, the chief executive officer of New York-based investment manager SpringOwl Asset Management and a former Las Vegas Sands Corp. board member. “There’s a debate over whether China is even investable right now. You never like to see increased regulation, increased taxes, restrained movement. That all seems to be the status quo.”

JPMorgan Chase & Co. analyst DS Kim downgraded the six operators to sell or neutral weightings in a Wednesday research note. “We think this announcement would have already planted a seed of doubt in investors’ minds, which is probably enough to de-rate these names until clarity emerges on key points,” he wrote.

Read more: Gambling Stocks Tumble as Macau Flags More Government Scrutiny

The tightened scrutiny comes at a time when Macau is still struggling to recover from the Covid-19 pandemic, which prompted the government to restrict travel, cutting off the economy’s lifeblood of Chinese punters. Gaming revenue for the month of August was 82% lower than the same period in 2019.

Among the items officials discussed in a press conference Tuesday were tighter controls on the distribution of dividends, greater participation by locals in the concessions and government representatives directly overseeing the businesses, Kim noted. After the consultation period, a final bill will be tabled to the local legislature.

China has been clamping down on activity by VIP punters in Macau for several years now over concerns that the high-stakes betting there — which takes place in convertible Hong Kong dollars — can sometimes be an illicit channel for currency outflows and money laundering. Beijing has also cracked down on organized gambling trips to Macau and other overseas destinations organized by junkets, companies that service high-rollers and extend them credit, amid a wider effort to discourage casino gaming.

Casino operators catering to high rollers may “face greater pressure to hedge their bets, invest more in non-gaming attractions and work harder to woo the premium mass market,” according to Bloomberg Intelligence gaming analysts Angela Hanlee and Kai Lin Choo.

Despite the market’s panic, some observers said the proposal won’t necessarily have a significant impact on operators. Bernstein analysts led by Vitaly Umansky said that at Tuesday’s press briefing, officials had highlighted the importance of maintaining a scale for the gaming industry, indicating that all six companies are likely to keep their licenses.

“Our view remains that the six operators here today will be here tomorrow,” Umansky said in a note, adding that he didn’t see “any major concerns” over the government’s planned direct supervision as the gaming companies have already been working closely with officials.

While China has been tightening its scrutiny over Macau’s gambling sector for years, Tuesday’s move comes as Beijing undertakes a widespread crackdown on business and society. Initially focused on the growing influence of China’s tech giants, the campaign has taken on a moralistic tone, targeting children’s video-game use to after-school tutoring. The Communist Party has long had a dim view of gambling, citing its impact on families and linking it to social disharmony.

Nonetheless, Chinese are avid gamblers, with the increased oversight of Macau pushing them to less regulated markets like the Philippines and Cambodia, where casinos and online gaming operations were flourishing before the pandemic halted travel.

Ader, too, said it was unlikely a western operator like Sands would lose its license, although the overall climate for foreign companies in the country is deteriorating.

“It’s sort of all going in the wrong direction in China,” he said. “To the extent investors are nervous about China, Macau doesn’t feel like the place it was five years ago for a lot of reasons.”

Published : September 16, 2021