The company will compete in the auction of a new Independent Power Producer (IPP) power plant in the country. It will also invest up to Bt17 billion to develop ongoing projects and aim to finish at least two merger and acquisition (M&A) deals in 2019, expecting profits to grow by 6 per cent.

The company and SK E&S are expected to sign a contract on the cooperation in January, Jakgrich said. The collaboration in the LNG business between the two organisations can proceed both within Thailand and in international markets.

Furthermore, Electricity Generating Authority of Thailand (EGAT), the parent company of EGCO, has been tasked with supplying 5 million tonnes per year of LNG for the Kingdom, and importing 1.5 million tonnes per year in 2019.

The contract signing will not prohibit other partnerships.

“The company has not joined the auctioning of the first batch of LNG by EGAT because the auctioning regulation requires the participating parties to own production facilities. We expect to participate in the next round of auctioning if the participating conditions are relaxed,” Jakgrich said.

He also said that LNG is a new business that EGCO is interested in, while also being a point of interest for foreign firms.

“Hence, we see that the LNG business has potential in Thailand, and that our company has sufficient capabilities to invest in LNG because we have a strong alliance with SK E&S, the second largest importer of LNG after Japan,” he said.

He further noted that even though the government plans to reduce the amount of LNG imports to 20 to 25 million tons per year in 2037 from the originally set 34 million per year in 2036 under the new Gas Plan, there are still business opportunities in LNG.

EGCO has submitted a request for proposal (REP) for a Ma Ta Phut Industrial Port Project phase 3 in accordance with the policy of the parent company, which has been encouraging investments into new businesses.

For 2019, the company has set a target for profits to grow by 6 per cent year on year.

Jakgrich added that the target for this year may be missed as the company has sold a power plant in Masinloc in the Philippines.

In 2017, EGCO had a net profit of Bt11.8 billion and operating profit of Bt9.27 billion, while in the first nine months of this year the company’s net profit was Bt21.8 billion.

Jirakiat Phumisawad, the governor of Kanchanaburi province, presided over the opening of the Esso TMK Park Kanchanaburi branch. Jirakiat was joined by Nednapa Srisamai, managing director of Starbucks Coffee Thailand; Manoch Munjitjuntra, director and retail manager of Esso (Thailand) Plc, |and Smith Jintanatanyachat, chairman of TMK Kanchanaburi Trading Co Ltd.

The new branch offers in-store service and a drive-through facility allowing travellers to get their beverages from their cars quickly, a service that the company says enhances its customer service in Thailand.

Catering to travellers

“We always create the Starbucks Experience that responds to consumer behaviour and this has changed a great deal over the past few years.” said Nednapa. “Thais are travelling more and there will be a Starbucks wherever they want one.

“Starbucks is designed to meet customers’ wider needs and branches can now be found in every region. The newly opened Starbucks at Esso TMK Park Kanchanaburi will be a destination for travellers who want to take a break before heading to the west of the country.”

The Starbucks at Esso TMK Park Kanchanaburi has a modern design with floor to ceiling glass throughout. “The natural light gives the store a serene feel and adds warmth to the cosy and friendly interior, elevating the Starbucks Experience through our Third Place commitment, which is to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time,” the company said.

It has also appointed executive vice president of portfolio management Kim Siritaweechai as chief financial officer. The appointments will take effective on January 1, 2019.

The new CEO’s mission is to strengthen Intouch’s business potential and prepare it for changes in the digital era. Intouch is the parent company of Advanced Info Service, Thailand’s largest mobile phone service provider in term of subscription base.

Anek, a graduate from Chulalongkorn University with a Master’s Degree in Business Administration, has been working in the group since 1992. He began as an accounting manager and was then assigned additional duties and responsibilities, eventually becoming executive vice president of finance & accounting. He was appointed acting CEO in 2017.

TRIS RATES TTA

TRIS Rating has affirmed a company rating of “BBB” on Thoresen Thai Agencies Plc (TTA). At the same time, it also affirmed the ratings on TTA’s outstanding senior unsecured debentures at “BBB”. The ratings still reflect TTA’s moderately competitive position in the dry-bulk shipping and offshore service segments, continuing business diversification, and strong balance sheet.

DIVIDEND TALLY UP 2.7%

Companies listed on the Stock Exchange of Thailand and the Market for Alternative this year paid a total of Bt519.546 billion in dividends, up 2.78 per cent from last year, according to a SET report yesterday. Some 534 listed companies paid dividends this year.

The five companies offering the highest dividends are PTT, Siam Cement Group, Advanced Info Service, PTT Global Chemical, and the Siam Commercial Bank, with a total of Bt139.616 billion. The amount accounted for 29 per cent of the total dividend payments of SET-listed companies.

“It is our very first step to turn our focus to mass-market offerings with affordable housing projects in Myanmar. We will go step by step to further develop that kind of development for middle class people here,” he said.

Targeting middle income families living in Myanmar’s commercial hub, the development will be built on a 55.6-rai (8.9-hectare) site at StarCity in Yangon’s Thanlyin Township. City Loft will be developed in phases, with units in the first phase to be handed over to buyers by April 2020, he added.

“We believe the demand is much higher than our ability to supply, as hundreds of people are now waiting for our public sales next month. Currently, we have opened sales to FMI shareholders and our employees. To date, around 70 per cent of the residential units in the first phase have been sold out,” he said.

“We have not set any limitation for our mass-market offerings. This means that we will continue to heavily invest in affordable housing as long as the demand is there. First, we started with luxury developments. Now, we are launching the City Loft for middle-income people. Later, we may develop more affordable housing projects for low-income families. It may take time, but we are doing it step by step.”

According to Pun, sales will be open to the general public in January 2019 through a sales gallery and showroom located within the StarCity compound. More than 2,000 apartments are offered in four styles – open-plan studio, one bedroom, two bedroom, and three bedroom. With sizes ranging from 310 to 850 square feet, apartments in the first phase will range in price between 42 million kyat (Bt870,000) and 160 million kyat (Bt3.31 million) depending on size and specifications.

All studios and apartments will be designed in line with the firm’s commitment to security, community, environment, services and convenience. Residents will enjoy various commercial, recreational and social amenities, with plans in place to construct a swimming pool, gymnasium, garden area, retail plaza and YBS bus terminal, he said.

The top executive said City Loft combines a competitive price point with mortgage repayment terms of up to 25 years, making homeownership accessible to many people who would traditionally be priced out of Myanmar’s real-estate market.

“Until recently, local banks provided limited lending with mortgage repayment terms – typically just five years. With this lack of financing and the relatively high cost of housing, new home ownership has traditionally been out of reach for most people. We are eager to pioneer in changing it,” said Pun.

“Doubtlessly, our favourable mortgage and deposit arrangements will change it, allowing young working professionals to get on the property ladder and secure their financial futures.”

The development combines favourable mortgage repayment terms with domestic banks. Interest rates are set in line with the Central Bank of Myanmar and buyers are able to make a 30 per cent deposit with the remaining 70 per cent payable over 25 years. Once the deposit is made, buyers can own a studio apartment for as little as 400,000 kyat per month.

In this respect, Pun considers the launch of the development as a major milestone not only for Yoma Land but also for Myanmar’s real estate sector as a whole.

“Community is at the heart of our masterplan for City Loft. This development has been carefully curated to facilitate modern living standards, as well as to allow an inclusive community to thrive. This is evident in the space set aside for commercial, communal and recreational areas, and is very much in line with our wider mission to build better communities for the future of Myanmar,” he said.

Nowadays, thousands of middle class families in Yangon do not possess their own apartment and this leads them to extra costs for living. Thousands of Myanmar’s young adults have an average income of more than 800,000 kyat per month, but they have to spend a lot of it to rent an apartment.

The firm aims to provide them with quality apartments at an affordable price which they can pay monthly for two and a half decades, said Pun.

“For our young and energetic workforce in Myanmar, it is time to ensure that they have their own shelter to live in. If they cannot buy an apartment now, there is no way to do it in the future,” he said.