Thai AirAsia is in talks with local and foreign financial institutes to secure loans to boost liquidity this year, said its executive chairman Tassapon Bijleveld.
The low-cost airline is also consulting a financial adviser on options to boost liquidity, including issuing new shares or taking loans. There would be good news in the next two weeks, said Tassapon, adding that Thai AirAsia would not fall out of the business.
He said seven local airlines were now seeking credit to boost their liquidity, instead of waiting for soft loans from the government.
The seven airlines have held several rounds of talks with state agencies and ministries for soft loans to counter the economic impact of Covid-19, but loans are yet to be granted.
The Stock Exchange of Thailand (SET) Index closed at 1,519.13 on Friday, down 16.85 points or 1.10 per cent. Total transactions amounted to Bt101.41 billion with an index high of 1,544.11 and a low of 1,513.48. The SET was down for a second successive day, after dropping 0.73 per cent on Thursday.
In Friday’s morning session, an analyst at Krungsri Securities forecast the day’s index would fluctuate between 1,525 and 1,550 after US President-elect Joe Biden announced a US$1.9-trillion stimulus plan and the oil price held up.
“However, the SET will be under pressure from its tight valuation and the drop in fund inflows,” he said, adding that the index’s price-to-earnings ratio was 30 times.
The 10 stocks with the highest trade value today were PTT, EA, GPSC, TASCO, CPALL, SCGP, PTTEP, NER, KBANK and KTC.
As of 4.30pm, the price of oil dropped by US$0.49 or 0.91 per cent to $53.08 per barrel, while gold was unchanged at $1,851.40 per ounce.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 28,519.18, down 179.08 points or 0.62 per cent.
China’s Shang Hai SE Composite Index closed at 3,566.38, up 0.47 points or 0.013 per cent, while Shenzhen SE Component Index closed at 15,031.70, down 38.43 points or 0.25 per cent.
Hong Kong’s Hang Seng Index closed at 28,573.86, up 77.00 points or 0.27 per cent.
South Korea’s KOSPI Index closed at 3,085.90, down 64.03 points or 2.03 per cent.
Taiwan’s TAIEX Index closed at 15,616.39, down 90.80 points or 0.58 per cent.
Siam Commercial Bank is setting up operations in Myanmar becoming the only Thai bank to operate a wholly-owned subsidiary in the neighbouring country.
SCB Myanmar will leverage its digital banking expertise and strength to elevate financial products, services, and payment systems in Myanmar to fulfil business requirements in Asean.
SCB’s president Sarut Ruttanaporn said: “SCB has been granted a banking licence to operate Siam Commercial Bank Myanmar by the Central Bank of Myanmar, which will be officially inaugurated on January 15 [Friday].”
This development is an important jigsaw piece in SCB’s strategic expansion of its overseas network in CLMV+2 countries, namely Cambodia, Laos, Myanmar, Vietnam, China, and Singapore, over the past several years.
“As a wholly owned subsidiary of SCB, Siam Commercial Bank Myanmar is currently the only Thai bank granted a subsidiary licence in the country. The bank will offer a full spectrum of commercial banking services in the same manner as local banks.
The bank will also support the development of financial infrastructure and payment systems by offering solutions critical for Myanmar’s businesses and digital finance, in line with increasing popularity of Myanmar’s digital banking trend,” he said.
“The bank is now studying the market so as to create satisfactory financial experiences for Myanmar. Our tasks will start from the development of digital payment systems, both a corporate portal for businesses and mobile banking for retail customers. Services are expected to be available in 2022, which will help support business payments and reduce cash usage and management costs in the country.”
Siam Commercial Bank Myanmar is located at Sule Square Office Tower in the heart of Yangon and will be headed by Rajesh Ahuja as general manager.
Deputy PM puts Dawei SEZ back on government’s agenda
EconJan 15. 2021Deputy Prime Minister Supattanapong Punmeechaow
By The Nation
Deputy Prime Minister Supattanapong Punmeechaow said he had discussed with Prime Minister Prayut Chan-o-cha that Thailand should push forward the development of Myanmar’s Dawei special economic zone (SEZ) and deep sea port.
He was speaking in his capacity as chairman of the Myanmar-Thailand joint high-level committee for development of the Dawei SEZ and related projects.
He added that Thailand has placed importance on the project.
He said the government would also hasten to hold a meeting between the three involved parties — Thailand, Myanmar and Japan — on how to proceed next.
The meeting will also discuss Myanmar’s cancellation of contractswith the Italian-Thai Development Company and partners to develop the project’s first phase.
Supattanapong said the Thai government has still maintained a loan of Bt4.5 billion earmarked for Myanmar to build a road connecting the border of Kanchanaburi province and Dawei.
The Stock Exchange of Thailand (SET) Index rose by 6.72 points, or 0.44 per cent, to 1,542.70 in the morning session on Friday.
An analyst at Krungsri Securities forecast the day’s index to fluctuate between 1,525 and 1,550 amid US President-elect Joe Biden’s planned US$1.9-trillion economic stimulus measures and rising oil price.
“However, the SET would be under pressure due to its tight valuation and the decline in funds inflows,” he said, adding that the index’s price-to-earnings ratio was 30 times.
He recommended that investors buy:
▪︎ PTTEP, PTTGC, TOP and IVL, which benefit from rising oil price, while fourth-quarter turnover was expected to improve.
▪︎ EPG, SCGP, TVO, CBG, RCL, SYNEX, XO, WICE, JMT, MTC and SAWAD, whose fourth-quarter performance is expected to improve.
▪︎ ADVANC, INTUCH, AP, SIRI and WHAUP, which pay high dividends.
The SET Index closed at 1,535.98 on Thursday, down 11.33 points or 0.73 per cent. Total transactions amounted to Bt97 billion due to mass sell-off of DELTA shares after its price dropped sharply, while investors delayed investments to monitor Biden’s measures to stimulate the economy.
The price of gold rose by Bt100 per baht weight in morning trade on Friday, the Gold Traders Association reported.
As of 9.27am, the buying price of a gold bar was Bt26,200 per baht weight and selling price Bt26,300, while gold ornaments were priced at Bt25,726.52 and Bt26,800, respectively.
At close on Thursday, the buying price of a gold bar was Bt26,100 per baht weight and selling price Bt26,200, while gold ornaments were Bt25,635.56 and Bt26,700, respectively.
Comex (Commodity Exchange) gold to be delivered in February dropped by US$3.5, or 0.19 per cent, closing at $1,851.4 (Bt55,489) per ounce on Thursday due to rising US bond yield, while investors delayed investment to monitor US economic stimulus measures.
KBank credit-card holders get a chance at free insurance for Covid-19
Jan 14. 2021
By The Nation
KBank is offering its 100,000 of its credit cardholders a chance to get free Covid-19 insurance for 90 days from January 21 to April 20.
The coverage will provide a maximum benefit of Bt100,000 in case of death and an income compensation of Bt1,000 per day for up to 15 days if the insured has to be hospitalised.
The credit card holders can sign up for the free Covid-19 insurance policy by activating the notification service in Line KBank Live via the “Free COVID-19 Insurance” menu option. Registration is open from until January 18.
KBank will announce who is eligible for the policy by its Line KBank Live account on January 21.
Experts to explore global economic landscape at 14th Asian Financial Forum
Jan 14. 2021
By The Nation
The 14th Asian Financial Forum (AFF) will be held online event on January 18 and 19, under the theme “Reshaping the World Economic Landscape”, and will cover more than 50 sessions from 8.30am to 10pm Hong Kong time.
The aim is to examine the current economic landscape and explore global business opportunities with more than 160 influential policymakers, financial experts, investors, business leaders and economists.
Guests at various sessions will share insights on a wide range of topics including the global economic outlook, socially responsible and impact investment, the asset and wealth management industry in post-Covid era, climate-change risks and opportunities for the insurance industry.
Mary Huen, chairperson of the AFF 2021 steering committee and CEO of Standard Chartered bank in Hong Kong, said: “Covid has brought unprecedented changes to the world economy, though the development of vaccines will help address some of the uncertainties. The global economy is being reshaped even as economic and trade activities begin to get back to normal. Corporates need to aggressively embrace the new normal and turbocharge the implementation of transformation, including technology upgrades, to create new opportunities for the financial industry.”
Dr Patrick Lau, HKTDC deputy executive director, said: “We endured a challenging year in 2020, which makes it all the more important for AFF participants to come together to examine the latest market developments and explore innovative solutions and investment opportunities from around the world. This year’s forum focuses on topics such as sustainable development, impact investment, fintech, 5G, philanthropy, family offices, entrepreneurship and venture capital, and will examine how businesses can turn crisis into opportunity under the new normal.”
First plenary session
The pandemic has hit the global economy hard, and even as the vaccination programme gathers speed the economy is still expected to recover at a slow pace. Whether the global economy will continue on its regular cycle or whether there will be a fundamental change brought about by the pandemic is a topic of interest to many, along with the impact of issues such as trade disputes, climate change and technology development.
The plenary session will explore the topic “Reshaping the World Economic Landscape”, with senior officials examining how the financial services sector can contribute to the recovery of the global economy and what opportunities await in the new economic landscape.
In the face of the global pandemic, many governments employed unconventional financial policies to roll out large-scale fiscal stimulus packages. The discussion will focus on the effectiveness of fiscal and monetary policies in supporting growth, and implications of the increasing use of financial technology from the perspective of regulators.
Broad spectrum of financial issues
As in previous years, the four panel discussions will be a key focus of the AFF. In the session titled “Global Economic Outlook”, business leaders from the banking and financial sectors will assess the transformation brought about by the current environment of low interest rates, increased compliance requirements and digital innovation, together with a raft of challenges resulting from the pandemic. The panellists will share their thoughts on the outlook for the global banking industry, while considering how banks should respond to regulatory changes and advances in technology.
As socially responsible investment and impact investment gain stronger ground, the pandemic has highlighted the importance of incorporating environmental, social and governance (ESG) considerations into investment decisions, creating long-term value for corporations and generating higher returns for investors. The discussion on “Responsible and Impact Investment” will review the long-term prospects for sustainable investing.
The asset and wealth management industry has inevitably been impacted by Covid-19, but while there are challenges to business operations, the pandemic has also given rise to new solutions and practices and the emergence of new perspectives and investment opportunities. The session titled the “Asset and Wealth Management Industry in the Post-COVID Era” will explore the implications of Covid-19 on the asset and wealth management industry, key industry trends in Asia and globally, and how market players can best position themselves in this fast-changing environment.
Climate change is one of the major emerging risks in the decades ahead and is expected to reshape the structure of the economy in the future, bringing both risks and opportunities to the real economy and the financial sector. The insurance industry is expected to play a key role in facilitating people and businesses to address climate change risks and move towards a sustainable future. In a discussion titled “Climate Change Risks and Opportunities for Insurance”, insurance leaders and experts will look at how the industry is responding to climate change and how to capture opportunities for insurance in the transition to a sustainable economy.
Assessing economic prospects
The impact of the pandemic and evolving international geopolitical issues have combined to create uncertainty in the global economy. Over the two days of AFF, influential global financial policymakers and business leaders will take part in more than 50 panel sessions to explore strategies that can help address the current financial situation.
Central bank digital currencies (CBDCs) are gaining traction in global markets. As a premier international financial centre and the world’s largest offshore renminbi hub, Hong Kong is well positioned to facilitate the exploration and expansion of CBDCs at the cross-boundary level. In a discussion themed “The Evolving Central Bank Digital Currency Landscape”, panellists will share insights on potential use cases for CBDCs and how Hong Kong’s burgeoning fintech ecosystem can get better equipped for the opportunities that lie ahead.
This year’s forum will also feature a number of “Fireside Chat” sessions featuring experts from various fields, who will share insights on topics such as technology development trends, venture capital, investing in the “she economy”, financing the circular economy, and the state of blockchain, providing practical advice on how to start a successful business.
This year’s AFF will also kick off the “Dialogues for Tomorrow” series to assess the impact of Covid-19 on sectors such as banking, insurance, fintech, energy, healthcare, food and agriculture and big tech, allowing industry players to get a better understanding of the current situation and ways in which they can enhance their competitiveness.
Showcase for innovations and investment opportunities
The Fintech Showcase, FintechHK Startup Salon, InnoVenture Salon and Global Investment Zone will return in a virtual format for the 2021 AFF. The AFF Deal Flow Matchmaking Session will arrange one-on-one meetings between more than 670 investors, project owners and start-ups to bring together capital and investment projects from around the world on a virtual platform. More than 700 meetings will be arranged, covering investment projects including the Internet of Things, digital technology, healthtech, fintech, education, environment and energy, food and agriculture, infrastructure and real estate.
The InnoVenture Salon will continue to empower start-up enterprises by building connections with international investors and potential business partners, joining hands with Hong Kong financial regulators to solve start-up problems.
It will also present the inaugural “AFF Accelerate”, an open innovation challenge jointly organised by the HKTDC, 500 Startups and FWD Group, inviting start-up entrepreneurs to devise insurance technology solutions for the insurance industry, bringing innovative ideas into the commercial world.
Gulf Energy Development (Gulf) will acquire 70.5 per cent of Global Mind Investment Management (GMIM)’s ordinary shares from Nech Opportunities Fund VCC worth US$40 million (Bt1.2 billion) on Thursday.
“The objective of this acquisition is to further expand investments in Vietnam,” said Yupapin Wangviwat, Gulf’s executive director and chief financial officer.
She added that the transaction will be made through Kolpos, Gulf’s fully-owned subsidiary that was incorporated in Singapore.
GMIM, a holding company set up in Singapore, has both direct and indirect investments in renewable energy businesses such as solar energy, hydropower and wind energy, infrastructure businesses such as cargo port and warehouse, as well as agriculture-related businesses in Vietnam.
Bangkok Bank announced on Thursday that it would undertake maintenance of its mobile banking system on Saturday, January 16, from 1.30am to 6.30am to enhance service efficiency and better serve its customers.
The bank said it would like to apologise for any inconvenience caused by this temporary maintenance. Its customers will not be able to use the Bangkok Bank Mobile Banking app during that time.
However, Bualuang iBanking, Biz iBanking and other services will be available as usual.
Deputy Prime Minister Supattanapong Punmeechaow
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