Thai Airways has informed the cabinet that its business recovery is progressing and provided details at a meeting.
The airline had earlier established a committee to spearhead the reduction of its debt to an appropriate level in an attempt to fly the group out of the red.
Government deputy spokeswoman Ratchada Thanadirek said on Tuesday that the Cabinet had received the report, which revealed 10 important adjustments:
A reduction in the number of planes – which were old, inefficient or not cost-effective –from 116 to 58.
Adjusting its business structure: reducing the company’s payroll by 23.1 billion baht from 2019, reforming the work process, reducing the number of rented/hired aircraft, decreasing the types of planes from eight to four, and adjusting working regulations.
Reforming the organisation structure and reducing its size; Scaling down the number of personnel from 29,500 in 2019 to 15,200.
Reforming the business as a whole: the airline aims to reduce expenses by 53 billion baht per year starting with 2022.
Finding revenue from other sources: shipping and selling food and drinks.
Planning network routes to important cities in each region: Thai Airways has jumped aboard with other partner airlines to connect flights to cities to generate extra revenue.
Selling secondary assets: the airline has sold or is selling the stocks of subsidiaries, land and training centre in Lak Si district, land and buildings in Chiang Mai and Phuket, and its Larn Laung office. Thai Airways is also selling unused real estate and aircraft in Thailand and foreign countries.
Finding a new source of revenue.
Adjusting its debt structure.
Making a net profit of 11.12 billion baht from January to June 2021, but witnessing operational losses of 14.33 billion baht. Thai Airways has earned revenue of 25.89 billion baht from adjustments in its debt restructuring and adjusting its aircraft renting/hire purchase contracts.
Ratchada said Thai Airways is finding a new source of income in the form of credit amounting to 25 billion baht from financial institutions to support the company’s business recovery in 2022. A contract for the purpose is expected to be signed this month.
The Stock Exchange of Thailand (SET) Index is expected to fluctuate between 1,685 and 1,705 points on Wednesday amid the war between Russia and Ukraine, Krungsri Securities said.
The invasion has also forced investors to turn away from risk assets and go in for safe-haven assets due to the rising volatility index, it pointed out.
“However, the rising crude oil price of above US$100 [THB3,263] per barrel and investor speculation of stocks which gained specific positive sentiment would help boost the index,” Krungsri Securities said.
It advised investors to monitor the US Federal Reserve’s monetary policy and announcement on the country’s economic situation between March 2 and 3.
It recommends the purchase of the following as an investment strategy:
• PTTEP, PTT, Top, SPRC, BCP, Banpu and Age, which would benefit from rising energy prices.
• HMPro, Makro, CPAll, CRC and CPN, which would gain from a domestic economic recovery.
• BDMS, Intuch, Advanc and DTAC, which are “defensive” stocks.
The SET Index closed at 1,694.18 on Tuesday, up 9.10 points or 0.54 per cent. Transactions totalled 91.80 billion baht with an index high of 1,701.69 and a low of 1,690.82.
The baht opened at 32.68 to the US dollar on Wednesday, weakening from Tuesday’s close of 32.61, the weakest in two weeks.
Krungthai Bank predicted the Thai currency would move between 32.65 and 32.80 during the day.
Poon said the baht was likely to fluctuate in a wide range due to pressure from the Russia-Ukraine conflict.
However, it would not weaken much because the gold price is increasing as investors sell the precious metal, he pointed out. Moreover, the baht is finding support from foreign purchases of Thai stocks.
In the short term, the baht’s key resistance level will remain at 32.80-32.90 to the dollar, while the key support level would be at 32.40.
Poon noted that the currency market is back to selling risk assets again due to the Russia-Ukraine conflict after peace negotiations failed.
Meanwhile, some investors are worried about stagflation as energy prices increase while central banks are raising interest rates.
Sanctions on Russia are also pressuring the overall world economy, Poon added.
The Thai Retailers’ Association has joined hands with 30 big suppliers to freeze the prices of 500 commodities for one quarter, to help control people’s cost of living.
Association president Yon Pokesap said on Tuesday that Thailand is suffering from increasing costs of energy and fresh food prices, which affect people at every level, especially people with low income. He said they suffered from both the cost of living and the Covid-19 situation that affected their income. He said freezing the price of products was the correct decision to help people.
However, due to the uncertain situation, they have to evaluate each quarter, especially the energy and fresh food prices, which are the main factors influencing the cost of living.
Yon said he agreed with the government’s attempts to stimulate the economy with schemes, especially the “Kon La Krueng” co-payment subsidy scheme. It will stimulate Thai people to spend more, which will be beneficial for the overall economy. He also said that the government’s ‘Shop Dee Mee Kuen’ [Shop and Payback] scheme also solves the issue directly in the short term with the least amount of budget.
The association has suggested a series of measures that businesses and the government should implement to help Thai people and the business sector solve the problem of rising cost of living and stimulate economic recovery.
Freeze the prices of essential consumer goods, which the association has agreed to for the first quarter of 2022
Ensure there are enough consumer goods to meet demand
Help Thai small and medium-sized enterprises (SMEs) by arranging funds for them through the Digital Supplychain Finance of the Bank of Thailand and the Thai Bankers’ Association. The association will expand and create more selling methods for SMEs. The association will maintain the current workforce of 1.1 million people.
Hasten government spending of the 3.1-trillion baht budget so the money will get into the economic system as soon as possible
Stabilise the price of energy
Stimulate the purchasing power of Thai people with economic stimulus schemes
The association has urged the government to consider extending the second phase of the ‘Shop Dee Mee Kuen’ scheme, and increasing the budget per person from 30,000 baht to 100,000 baht.
The Thai National Shippers’ Council on Tuesday expressed hopes for a quick end to the Russia-Ukraine war, saying if the invasion prolongs or escalates, Thailand’s exports would be severely affected.
Chaichan Charoensuk, president of the Thai National Shippers’ Council, said the council has been closely monitoring the fighting between Russia and Ukraine and the economic sanctions imposed on Russia.
Chaichan said the fighting and retaliation against Russia would definitely affect the global and Thai economies and production costs would definitely increase due to the rising prices of oil and raw materials.
He said the materials that would be affected include steel, grains and semiconductors and their rising prices would lead to a reduction in purchase orders.
The council expects that if fighting does not escalate but ends through negotiations within three months, Thailand’s exports would still grow at five per cent.
Chaichan said the first quarter would see 5 per cent growth of exports, valued at US$67 billion to $68 billion, because Thai exporters have already received orders.
But, he said, if the fighting prolongs, exports in the second quarter would be affected and the export value might drop by $4 billion or $5 billion. The products that would be affected would be vehicles, auto parts, tyres and electric appliances, especially air-conditioners.
Chaichan said the export value in the second quarter would be around $6.6 to $6.8 billion if the fighting prolongs and there would be no growth compared to the same period last year.
The council expects that if the fighting continues, global oil prices would be around $100 to $105 per barrel and the prices would rise in the second quarter, pushing up freight costs. He said shipping expenses would go down after July or by the year-end.
He said the council also believes that banning Russia from the SWIFT international bank link system would have an impact on the global financial system. The impact would be clearer in the second half but Thailand would only be indirectly affected because the kingdom’s trading value with Russia is not high, Chaichan added.
Commerce Minister Jurin Laksanawisit on Tuesday asked the Department of Internal Trade (DIT) to urgently discuss with egg farmers’ associations a solution after two egg farmers’ associations decided to raise the prices.
He said egg price has been falling gradually. He explained that the price of No. 3 eggs as of Monday was 3.29 baht each and 3.20 baht each in some shopping malls.
He added that the ministry had asked egg farmers’ associations to maintain the egg price at 3.50 baht each, even though the production cost has risen.
“The egg price has continued to drop due to regular discussions so far,” he said, adding that the average price at 3.29 baht each is not very high.
The price of most food items have now returned to the level recorded at the end of last year after surging earlier this year due to factors such as pork shortage and the outbreak of African Swine Fever, the commerce minister said on Monday.
“The average price of meat has been dropping continuously over the past week. As of Sunday, pork averaged at 149.25 baht per kilo, while chicken thigh was going for 66 baht per kg and No 3 chicken eggs at 3.26 baht per piece,” Commerce Minister Jurin Laksanawisit said. “Palm oil is averaging at 61.69 baht per litre, while soybean oil is at 58.19 baht per litre.”
Jurin added that the average price of the two cooking oils is now lower than the maximum price of 64 and 73 baht per litre the ministry set for palm and soybean oil, respectively.
“In a bid to ease people’s financial burden amid the soaring price of food items since earlier this year, the ministry has implemented a price-fixing scheme on 17 necessities,” he added.
The 17 items are instant noodles, selected fresh foods, canned foods, bagged rice, seasoning sauces, vegetable oils, carbonated drinks, milk and dairy products, electrical appliances, cleaning products, fertilizers, insecticides, animal feed, iron, cement, paper and drugs and medical equipment.
Jurin also said that he has ordered commerce offices in Nakhon Si Thammarat, Phatthalung, Pattani, Yala and Narathiwat, which are suffering from flooding, to monitor the situation closely and ensure there is no price gouging and hoarding of essential products.
The board of Sri Trang Agro-Industry Plc (STA) is seeking approval from shareholders for a final dividend payment at 0.65 baht per share for 2021, taking total dividend for the year to an all-time high.
The board of Sri Trang Agro-Industry Plc (STA) is seeking approval from shareholders for a final dividend payment at 0.65 baht per share for 2021, taking total dividend for the year to an all-time high.
Ex-dividend will be posted on April 19 this year.
The company hit a record-high net profit of 15.84 billion baht, up 13.4 per cent year on year, thanks to increased cost management efficiency and higher demand for natural rubber.
Sales of rubber last year hit the target of 1.3 million tons, increasing market share in both Thailand and abroad.
STA, the world’s leading producer and distributor of integrated natural rubber products and Thailand’s largest producer of latex gloves, also expected expansion in production capacities to further boost growth in 2022.
The company’s chief executive officer, Veerasith Sinchareonkul, said 2021 was a golden year for the company with revenue from sales and service reaching 118.27 billion baht, up 56.7 per cent year on year, the highest in a decade.
In addition to the historic high net profit, the company said gross profit for natural rubber operations exceeded 12 per cent for each quarter, setting a new standard for the country’s rubber industry, he added.
He said some of the highlights of last year’s performance and the factors behind them were:
● Sales of natural rubber increased to 1.3 million tons as targeted, up 25.4 per cent over the previous year, which was higher than the market’s overall growth.
● The rubber industry has been on an uptrend and the recovery of the auto tyre industry increased the demand for natural rubber.
● Cost efficiency has been enhanced by such initiatives as investment in production technologies that keep labour demand down, and the introduction of “Sri Trang for Growers” app to facilitate rubber trading and communication with rubber growers.
● The company has been able to set rubber prices higher than the prevailing average global rates.
“Our natural rubber sales over the past year increased considerably. Our machines [for all types of rubber] ran on average 70 per cent of the time all year round compared to 55 per cent in 2020. And specifically for block rubber, our machines in Thailand ran on average over 80 per cent the whole year compared to 57 per cent in 2020,” Veerasith said.
The company’s board of directors on February 17 resolved to pay a final dividend of 0.65 baht per share and to declare XD on April 19, with the payment to be made on May 6. The board’s resolution will be placed before shareholders at the annual general meeting for approval.
In 2021, dividend payment for the first quarter was 1.00 baht per share, 1.25 baht per share for the second quarter and 1.25 baht per share for the third quarter. Together with the fourth quarter payment, the total dividend for the entire year amounts to 4.15 baht per share, the highest payout in the company’s history.
Veerasith said he expects 2022 to be another year of sustained growth. Sales of natural rubber could rise to 1.6 million tons, more than 20 per cent higher than last year’s performance. Contributory factors include market expansion in Thailand and overseas, the uptrend in the global natural rubber industry, as well as the company’s continuing expansion of production capacities throughout all quarters.
Veerasith said the company’s facilities in Phitsanulok, Bung Kan, Sakon Nakhon, and Trang provinces will have an increased capacity of more than 290,000 tons of block rubber production per year while the plants in Bung Kan, Narathiwat and Surat Thani (Kanchanadit district) provinces will increase the production of concentrated latex by more than 180,000 tons per year.
In addition, the sales price of TSR20 block rubber on Singapore’s futures exchange is expected to be on an uptrend as well, averaging no less than 171 cents per kilogram for the year compared to 167 cents per kilogram in the previous year, he added.
“In another development, STA has begun planting hemp in its plantations in the Thoen district of Lampang province. The land has undergone tests to ensure the absence of heavy metal contamination. The pilot plot will yield the first harvest in April,” he said.
“Future produce, including seeds, leaves, and roots, will be delivered to customers who have placed pre-orders, or who have signed business cooperation agreements with the company,” the CEO said.
CIRCO Hub Thailand, a joint project between the Office of National Higher Education Science Research and Innovation Policy Council (NXPO) and Global Compact Network Thailand (GCNT), held the “Rethink Together: Co-creating Circular Economy with Circular Design” online seminar in January.
CIRCO Hub Thailand, a joint project between the Office of National Higher Education Science Research and Innovation Policy Council (NXPO) and Global Compact Network Thailand (GCNT), held the “Rethink Together: Co-creating Circular Economy with Circular Design” online seminar in January.
The aim was to enable knowledge exchange on circular economy between public and private sectors. More than 400 people had registered for the seminar.
Dr Kitipong Promwong, NXPO president, said it was good that both sectors are paying attention to circular economy and that it is developing under the auspices of the government.
He went on to say that in line with Thailand’s net-zero emission target for 2065, related agencies will have to cooperate via various mechanisms, including circular economy. Thailand had announced its target at the 26th United Nations Climate Change Conference (COP26) in November last year.
He added that the government is making an effort to improve workflow in a closed loop to ensure that all sectors move in the same direction.
“Circular design is a process that promotes network-based business operation, in which manufacturers or entrepreneurs will have extended producer responsibility [EPR] to ensure that remaining materials enter the production cycle,” he said, adding that circular design also pays attention to promoting circular product market.
He added that NXPO and Thai Sustainable Consumption and Production (Thai-SCP) Network have organised a policy forum to make Circular Economy Innovation Ecosystem 2030 which enables us to see the overall operation.
Thanyaporn Krichtitayawuth, GCNT Executive Director, said economic direction and people’s behaviour have completely changed during the transition to a new era, so sustainability is now a strategy to help businesses survive.
“As CIRCO Hub Thailand wants to see Thai businesses grow with creative power, GCNT strives to enhance Thai businesses’ potential with circular design which enables businesses to find ways of turning leftover materials into something valuable,” she said.
She added that the CIRCO course from the Netherlands had helped more than 1,000 business operators worldwide to adjust their business model to become a circular one.
This is the first online seminar that representatives from various industries who had completed the CIRCO-Circular Design Thailand course, to exchange knowledge on business operation or circular products and services in a bid to help realise opportunities and challenges on Thailand’s circular business transition.
The transition is based on three steps, namely:
RETHINK
Creating a new system that supports material circulation. SCG Chemicals offered circulating business adjustment by acting as a design catalyst team for customers, while Siam Makro had offered ways of changing ways of thinking in the supply chain, especially when it comes to sustainable packaging.
REUSE
Plan Creations, Deesawat Industries and Textile Gallery, provided views on reusing products in line with their service life. For instance, Plan Toy has initiated a toy rental service as toys’ service life is short, while a furniture company has applied designs that allow the use of existing materials as much as possible.
REDUCE
Chewgreen explained how it has changed the materials and designs it uses in packaging to help communicate the importance of protecting the environment with consumers. Printing Solution also provided views on using packaging materials that are suitable for products, while Sivatel Hotel shared its back-to-basics idea of reducing and utilising food waste, starting from food design to increasing the value of food waste.
RENEW & RECYCLE
Suez Services (Thailand) and Dairy Home Social Enterprise shared views on how business operators should pay attention to the value chain. Dairy Home Social Enterprise also showed ways of creating value from production resources, such as using wastewater from dairy cow farms to treating algae to feed lichen before using it to nourish giant river prawns.
Dr Wijarn Simachaya, president of Thailand Environment Institute who also chairs the subcommittee for driving the Bio-Circular-Green (BCG) Model, said key projects and focus sectors are necessary for driving circular economy in Thailand.
He added that Thailand also needs to develop circular economy solution platforms to boost efficiency on innovation and technologies, amend rules and regulations that obstruct development and create a circular economy society.
“Most importantly, all sectors, including small and large businesses and organisations, must cooperate together at global, national and local levels,” he said.
The Commerce Ministry’s Department of International Trade Promotion has the policy to help Thai entrepreneurs who follow circular economy principles to find international buyers.
The Federation of Thai Industries’ Thailand Institute of Packaging and Recycling Management for Sustainable Environment collects used packaging under its Packback project and promotes EPR related laws in the country.
The Program Management Unit for Competitiveness, meanwhile, hands out funds for supporting circular economy research.
The Board of Investment promotes investment in businesses operating in line with circular economy and offers tax exemption for five to eight years to businesses that conduct research and development to reduce environmental impact.
This online seminar is key to providing knowledge and opportunities to every sector from a circular economy context, encouraging entrepreneurs and interested people to change their businesses and promote integration between organisations to create new business opportunities in line with BCG Model, resulting in the country’s sustainable development.
Hisense International (Thailand), the world-class manufacturer of consumer electronics, smart TVs and home appliances, will strengthen its foothold in Thailand this year with projected revenue of 3.1 billion baht, up 72 per cent year-on-year, said the company.
Hisense International (Thailand), the world-class manufacturer of consumer electronics, smart TVs and home appliances, will strengthen its foothold in Thailand this year with projected revenue of 3.1 billion baht, up 72 per cent year-on-year, said the company.
The announcement came at the company’s February 17 press conference titled Electrical Appliance Marketing Direction for FY 2022, where its business development plans for 2022 were also unveiled.
The company expects to increase its market share in the TV, refrigerator, and air conditioning segments and has no concerns about Covid-19’s impact on market sentiment. The focus will be on three sales and distribution platforms – modern trade channels, online platforms, and dealers and distributors.
The company will also leverage its sports marketing strategy to enhance brand and customer engagement by officially sponsoring the FIFA World Cup 2022 to reach out to the chosen lifestyles of target customers in each segment.
Yi Xiaobing, managing director of Hisense International (Thailand), said the company acknowledged the impact of Covid-19 on the overall sales volume of the Hisense brand in mid-2021.
He said sales of TVs and refrigerators had dropped by 15-20 per cent, while sales revenue from air conditioners was slightly affected because of the expansion of sales and distribution channels in Bangkok and upcountry.
The company’s sales revenue in 2021 totalled 1.8 billion baht, up 24 per cent from a year earlier. Of total sales revenue, 49 per cent came from TVs, 51 per cent from home appliances, 20 per cent from air conditioners, 22 per cent from refrigerators, and 9 per cent from other segments.
TV sales recorded growth of 9 per cent, while sales in the domestic appliance segment grew 40 per cent. Sales of air conditioners were up 74 per cent and sales of refrigerators registered growth of 27%.
“In 2022, Hisense Thailand is committed to advancing its presence in the market with sales revenue targeted at 3.1 billion baht, substantially up by 72 per cent from 2021. Sales of TVs are expected to account for 44 per cent of total revenue with 54 per cent expected to come from home electrical appliances and 2 per cent from other product segments,” he said.
Chanchai Bhandhufalck, Sales & Marketing director of Hisense International (Thailand), unveiled plans to introduce new products in 2022, including the launch of the ULED TV model in three segments. These are the flagship ULED Mini-LED “U8H Series”, Premium ULED “U7H Series”, and Quantum Dot ULED U6H Series.
He said the company is also set to debut the VIDAA Smart OS – a smart TV operating platform that is fast, responsive, user-friendly and will deliver an immersive experience. The smart TV operating system works with the VIDAA Voice to enable content searching in the Thai language.
This year, Hisense has also launched its new healthy “TG Series” air conditioner with a certified “Electricity Saving Label No. 5” and a three-star rating. It comes with HI-NANO ion generator technology that releases a high concentration of negative ions (Zwitterionic) at levels up to 1 million per cubic centimetre of air.
It also features Hisense’s unique fresh-air ventilation system to enhance comfortable air flow and ensure proper ventilation. The sterilised ions are released to cover every corner of the room, helping to combat viruses and bacteria as well as removing over 92.6 per cent of the H1N1 influenza bug.
Hisense has also unveiled its range of refrigerators and coolers, focusing on two-door side-by-side refrigerators and four-door/multi-door refrigerators. The focus is on luxury looks and simplicity in style, coupled with quieter refrigerator compressors. Hisense refrigerators and coolers have been recognised for their durability, energy-efficiency and friendliness to the environment.
“As for the washing machine segment, Hisense is focusing on the front-load washing machine “Pure Jet Series” with two models available: a 10kg capacity with 6kg washer-dryer and 8kg capacity. Both come with the Pure Steam Technology. Hisense also offers the top-load “Bubble Clean Series” with 13kg and 8kg capacity options available. The company also plans to launch a two-tub washing machine model this year in response to customers’ preferences,” said the director.
For its marketing and communications strategies, Hisense said it will retain a focus on boosting brand awareness, customer engagement, and brand image via public relations programmes.
The company’s marketing content is leveraging social media platforms to share user experience of Hisense products.
Meanwhile, Hisense’s sports marketing strategy will take centre stage as an official sponsor of the FIFA World Cup 2022, which is due to be held from November 21 to December 18 this year in Qatar.
It aims to expand its market reach by boosting the brand’s global reputation and meeting the diverse needs and preferences of target consumers. The FIFA World Cup also presents a good opportunity to enhance Hisense brand awareness and recognition as the leader in electrical appliances in Thailand, the company added.
“Hisense TVs have been the No 1 top seller in China for 17 consecutive years, reflecting the brand’s leading advantages and firm foothold with innovation-driven products in the market,” Chanchai said.
“Regarding marketing in Thailand, the company remains upbeat about sustained market growth opportunity and has targeted a 3 per cent share in the air conditioning market and 8 per cent in the refrigerator market.”
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