Asian Sea Corporation, producer and exporter of frozen seafood, has earmarked Bt500 million for acquiring factories manufacturing pet food pellets along with businesses related to distribution in Asean markets. The budget will also be used for investing in international brands.
Akamon Prasoppolsujarit, Asian Sea’s chief financial officer, said the company has also set aside Bt400 million to invest in machines to enhance productivity and capacity in the manufacturing of animal feed and frozen food businesses without needing to hire more personnel.
Varanratch Assanupong, the firm’s finance and investor relations manager, confirmed that Asian Sea’s earnings will hit Bt8.4 billion, higher than Bt8.33 billion last year, because revenue in the first nine months of 2020 alone stood at Bt6.45 billion.
“We expect the fourth-quarter revenue to increase quarter on quarter as a new dog food brand to penetrate the low-income market is expected to help boost the company’s sales in the last quarter,” she said, adding that the sale of canned tuna, frozen food and aquatic feed have also risen.
She added that the company will maintain its gross profit margin at 15 per cent, down from 16.90 per cent in the past nine months due to the appreciation of the baht, while the company’s revenue from exports has risen by 80 per cent.
Automotive, product manufacturer and retail shares are currently benefiting from the government’s measures to stimulate domestic consumption, experts said.
The government had launched various measures to stimulate consumption and compensate for a lack of income from overseas, such as the “Rao Tiew Duay Kan” (We Travel Together) scheme, raising the Bt500 monthly payment for state welfare card holders and introducing the “Khon La Khrueng” (Let’s Go Halves) shopping scheme and “Shop Dee Mee Kuen” (Shop and Payback) scheme.
Asia Plus Securities assistant vice-president Paradorn Tiaranapramot said the government’s “old car for new car” scheme, currently under consideration, would benefit automotive shares, such as AAPICO Hitech Pcl (AH), Somboon Advance Technology Pcl (SAT) and Thai Stanley Electric Pcl (STANLY).
In addition, he said the second phase of the Khon La Khrueng scheme, which the Finance Ministry confirmed would start on January 1, would benefit product manufacturer shares, such as Osotspa Pcl (OSP), Taokaenoi Food & Marketing Pcl (TKN), Sappe Pcl (SAPPE) and Thai Vegetable Oil Pcl (TVO).
Meanwhile, the Shop Dee Mee Kuen scheme and the launch of the iPhone 12 would benefit retail shares, such as MK Restaurant Group Pcl (M), Central Retail Corporation Pcl (CRC), Com7 Pcl (COM7), SPVI Pcl (SPVI) and Berli Jucker Pcl (BJC).
A Yuanta Securities analyst said retail companies’ same store sale growth is expected to increase in the fourth quarter from the stimulus measures.
The price of gold surged by Bt250 per baht weight in morning trade on Wednesday after rising by Bt200 per baht weight at close on Tuesday, the Gold Traders Association reported.
As of 9.27am, the buying price of a gold bar was Bt25,850 per baht weight and selling price Bt25,950, while gold ornaments cost Bt25,377.84 and Bt26,450, respectively.
At close on Tuesday, the buying price of a gold bar was Bt25,600 per baht weight and selling price Bt25,700, while gold ornaments cost Bt25,135.28 and Bt26,200, respectively.
The spot gold price moved to US$1,813 (Bt54,791) per ounce in the morning, while the Comex (Commodity Exchange) gold price to be delivered in February next year rose by $38 to $1,818.90 per ounce on Tuesday, thanks to mass buy-ups of the precious metal after its price dropped in previous days.
Besides, the US Federal Reserve’s gloomy forecast that the economy would face various uncertainties due to the Covid-19 crisis also boosted gold sales.
The Hong Kong gold price meanwhile rose by HK$210 to $16,770 (Bt65,373) per tael, the Chinese Gold and Silver Exchange Society reported.
The Stock Exchange of Thailand (SET) Index rose by 4.08 points, or 0.29 per cent, to 1,424.95 in the morning session on Wednesday.
An analyst at Krungsri Securities expected the day’s index to swing between 1,410 and 1,430 points despite positive news of a $908-billion (Bt27.4 trillion) economic stimulus package and a Covid-19 vaccine.
“However, the falling oil price due to a postponement of the Opec+ meeting amid conflict over the bloc’s oil production policy, together with the expected Constitutional Court ruling in a case against Prime Minister General Prayut Chan-o-cha would pressure the index,” he said.
He recommended investors buy:
> MINT, CENTEL and AOT that benefit from the development of a Covid-19 vaccine.
> AMATA, WHA, SAT and AH that will benefit from the Asia-Pacific Regional Comprehensive Economic Partnership pact.
The SET Index closed at 1,420.87 on Tuesday, up 12.56 points, or 0.89 per cent. Total transactions amounted to Bt78 billion, with an index high of 1,430.03 points and a low of 1,416.39.
By Syndication Washington Post, Bloomberg · Claire Ballentine, Kamaron Leach
U.S. stocks started December by rising to record highs as a renewal of aid talks added to optimism over progress on coronavirus vaccines. The dollar extended its slide to a more than two-year low and Treasury yields jumped.
The risk-on mood powered the S&P 500 and Nasdaq Composite to all-time highs a day after posting double-digit gains last month. Traders continued to bet vaccine news will lead to an economic surge next year. There were also signs that appetite is picking up for a federal spending plan. President-elect Joe Biden urged Congress to pass a relief package.
Communication services, financial and information technology were the biggest S&P industry sector gainers. House Speaker Nancy Pelosi, D-Calif., delivered a new proposal for a stimulus package and Senate Majority Leader Mitch McConnell, R-Ky., said Tuesday he is circulating among Republicans his own revised plan, which has the backing of President Donald Trump.
“Investors have been prepared to look beyond the near-term continued rise in covid-19 cases in many regions,” said Mark Haefele, UBS Global Wealth Management’s chief investment officer. “They have focused instead on the potential for a return to normal social and economic activity based on the widespread roll out of effective vaccines in the first half of 2021. We see further upside for global equities in this environment, but also expect market leadership to continue to shift.”
After a record month for global stocks, there’s no end in sight for the rally that’s been fueled by vaccine breakthroughs. Pfizer Inc. and partner BioNTech SE have sought regulatory clearance for their covid-19 vaccine in the European Union and BioNTech said it could start shipping the first doses “within hours” after approval.
“People have faith that even though things are very uncertain around the virus in the short term, if they look out six months or a year, it’s credible things will be better,” said Alec Young, chief investment officer at Tactical Alpha LLC.
Strong economic data from Asia also added support to the positive mood in markets. Indexes of factory activity in some of North Asia’s biggest export-led economies rebounded in November and China’s recovery continues to lift the region.
It’s not all good news though. Federal Reserve Chairman Jerome Powell cautioned lawmakers that the U.S. economy remains in a damaged and uncertain state during testimony at a Tuesday hearing before the Senate Banking Committee.
In other markets, gold advanced. Oil fell as OPEC+ sought more time to reach a deal on production policy.
Bitcoin pulled back after almost reaching $20,000 for the first time.
Here are some of the main moves in markets:
Stocks
The S&P 500 Index advanced 1.1% to 3,662.41 as of 4:02 p.m .EST, the highest on record with the largest gain in a week.
The Dow Jones industrial average advanced 0.6% to 29,823.52, the biggest gain in a week.
The Nasdaq Composite Index gained 1.3% to 12,355.11, the highest on record with the largest gain in a week.
The Stoxx Europe 600 Index advanced 0.7% to 391.90, the biggest gain in a week.
The MSCI All-Country World Index advanced 1.2% to 625.45, the highest on record with the largest gain in a week.
Currencies
The Bloomberg Dollar Spot Index sank 0.7% to 1,136.59, the lowest in more than two years on the biggest dip in almost four weeks.
The euro surged 1.2% to $1.2075, the strongest in more than two years on the largest jump in about eight months.
The Japanese yen was little changed at 104.30 per dollar.
Bonds
The yield on 10-year Treasuries climbed eight basis points to 0.92%, the highest in almost three weeks on the largest surge in more than three weeks.
Germany’s 10-year yield jumped four basis points to -0.53%, the highest in almost three weeks on the biggest surge in more than three weeks.
Britain’s 10-year yield climbed four basis points to 0.347%, the highest in more than two weeks on the largest surge in more than three weeks.
Commodities
West Texas Intermediate crude sank 1.7% to $44.55 a barrel, the lowest in more than a week on the biggest tumble in more than two weeks.
Gold strengthened 2.1% to $1,814.78 an ounce, the largest jump in almost four weeks.
Govt hits brakes on ‘old car for new car’ proposal
EconDec 02. 2020Deputy Prime Minister Supattanapong Punmeechaow
By The Nation
The Industry Ministry’s proposed “old car for new car” scheme needs more time and discussion before being finalised, Deputy Prime Minister Supattanapong Punmeechaow said on Tuesday. He added that the scheme is not ready to be implemented given the lack of clear details.
Industry Minister Suriya Juangroongruangkit told Tuesday’s Cabinet meeting that work on the details of the scheme had not been completed.
Government spokesman Anucha Burapachaisri said the scheme would be shelved for the foreseeable future to prevent confusion among car buyers and the auto market.
Anucha added that Prime Minister Prayut Chan-o-cha told the relevant parties to consider the idea carefully.
The Cabinet on Tuesday agreed to earmark Bt1.78 billion to fund two projects to boost the grassroots economy, government spokesperson Anucha Burapachaisri said.
Of the total, Bt1.6 billion will be spent on enhancing the capacity of machinery used by the Rice Department to improve the quality of rice grown in the country. This fund will also cover the purchase of new machines and equipment.
The remaining Bt176 million will be spent by the Culture Ministry’s Office of the Permanent Secretary to develop community products.
Ratchada Thanadirek, the government’s deputy spokesperson, said the Cabinet has also approved the Energy Regulatory Commission’s Phase 4 of the 2020-2022 power development plan.
The Department of Trade Negotiations has released a complete study on the pros and cons of Thailand resuming free-trade talks with the European Union (EU) for Commerce Minister Jurin Laksanawisit to consider.
Auramon Supthaweethum, the department’s director-general, said the Institute of Future Studies for Development has completed the study and it has been published on www.dtn.go.th.
The study shows that if Thailand and 27 EU members, excluding UK, cancel all import tariff, then in the long-run Thailand’s gross domestic product will be boosted by 1.28 per cent worth Bt205 billion per year.
Exports to the EU will rise by 2.83 per cent or Bt216 billion per year, while imports from EU will expand 2.81 per cent or Bt209 billion per year. Thai products that have good growth potential in the EU market include vehicles, auto parts, garments and textile, rubber and chemical products.
The study also shows that upgrading related sectors, such as transport, finance and insurance, in line with the free-trade accord (FTA) will reduce production costs in related industries.
She added that the department will discuss with related parties to work out a negotiation framework based on Thailand’s best interests and will seek ways to prevent possible adverse impacts on the country.
Last year, the EU (excluding UK) was Thailand’s fifth largest trading partner after Asean, China, Japan and the US. Trade between Thailand and the EU was worth US$38.23 billion (Bt1.16 trillion), of which $19.74 billion came from Thai exports.
Key products exported to the EU from Thailand were computers, automobiles, auto parts, gems and jewellery, air conditioners, rubber products and processed chicken.
Key imports from the EU included machineries, electric machines, chemical products, pharmaceuticals and auto equipment.
The number of medical companies applying for Board of Investment (BOI) tax privileges during the first nine months of this year jumped 132 per cent to 65, according to BI secretary-general Duangjai Asawachintachit.
Total value of the projects also soared 75 per cent year on year to Bt15 billion.
She attributed the surge to a response to the Covid-19 pandemic.
From 2018 up to the end of September this year, the BOI has received 129 applications from medical firms with projects totalling Bt30.887 billion in value.
Dusit Thani College, one of Thailand’s top culinary schools, has welcomed its new rector, Frouke Gerbens, with a ceremony themed “Dusit Thani College… Moving Forward”.
Frouke joined the Dusit Group two years ago to help launch the Dusit Hospitality Management College in Manila, a pioneering hospitality education concept fully integrated with the new 125-room dusitD2 The Fort hotel. She now brings her expertise to the Thai hospitality industry, a key driver of the country’s economy.
What do you think of Dusit Thani College, and will there be any changes?
It’s a pleasure to arrive in Bangkok and start my new role as college rector. I am a great admirer of Than Phu Ying Chanut Piyaoui, who founded the Dusit Thani College in 1993. It is an honour to realise that, after 28 years, I am the first foreign rector of this college. This is a big change, not only for me, but all students and people working here. We have to adapt to the change with new ways of working. The language issue automatically comes up since I don’t speak Thai, which means communicating will take extra effort. In the future, our college will gradually become a bilingual college and an international educational institute.
Do you have any specific strategies to promote excellence at Dusit Thani College?
Striving for excellence has always been at the core of the Dusit Thani’s values, including in education where we aim to be a hospitality educational hub in the Asia region. There are four key agendas to move us forward: sustainability, integration, digitisation, and nationalisation. On sustainability, before Covid-19, hospitality and tourism accounted for 20 per cent of the Thai economy. Now the globe is conscious of the importance of taking care of resources. At some point, they will run out. Consumers and travellers are now increasingly demanding that what they consume is sustainable and will not destroy nature. We should point out that sustainability is not just about the planet or environment, but how we utilise resources from nature and from people who prepare such products. These people should also be treated in a sustainable way so that in the long term they will continue to be passionate to contribute.
As a non-Thai, are there any challenges or obstacles in running the college?
As I said, being a non-Thai speaker, the language becomes a barrier to communication. However, it’s an opportunity for the college to go beyond Thai borders, allowing us to grow and bring in more diversity with people from different backgrounds around the world.
How does Dusit Thani College prepare itself to produce a young professional workforce for the industry?
I feel what makes Dusit Thani College unique among hospitality colleges is the “head, hand, heart” principle that governs all our courses. Hand is the technical skill, head is the cognitive skill, and heart refers to the value and passion that people have. All these skills determine whether guests will come back. Apart from that, the quality of infrastructure and lecturers is vital since they have real industry experience to share with students. They integrate learning to help student productivity since they already have real-world experiences.
Alumni receive flower bouquet and award from the college to celebrate their success in business and food competition.
How will the tourism and hospitality industry change after Covid-19?
I think we were already seeing a transition before the Covid-19 outbreak. The business is renewing its focus on wellness and health. People will look for more healthy options and want to experience something that benefits them. Covid-19 underlined unsustainability in our industry, and young travellers will now demand [sustainable practices] from hotels and restaurants they visit. Technology will also play important roles in change, including smart farming, plant-based food, and mobile delivery and hotel-booking apps.
Do you think about sustainable development in hospitality? Can it happen?
As people in the hospitality industry, we don’t have a choice. Younger clients like millennials are demanding it. It is in our own interest. The resources we use are not endless. If we use them in a wise way, we can continue to make a living and profit from this planet. Sustainable efforts have already come a long way at Dusit Thani College since we introduced a green concept by aiming to cut out plastic products – plastic bottles, cutlery and plastic bands. Unfortunately, Covid-19 has led to the reintroduction of plastic for hygiene reasons. I hope that when the crisis ends, we can continue the green initiative toward the goal of a plastic-free college.
In our business, we follow the “Four Ps” sustainability approach – Planet (the source of all resources), People (employees and others we work with), Purpose (the reason for being), and Passion, which when combined will help our business profit.
Executives of Dusit Thani College.
What will we see from Dusit Thani College in the future under your leadership?
I feel fortunate because we have many strengths in the quality of our faculties and facilities. We have just completed Bt300 million investment in infrastructure and facilities. We have fantastically talented and award-winning students. I’m looking forward to building on these strengths that underpin the Dusit Thani Colleges’ reputation, and taking the college to neighbouring countries. We would also like to attract students from outside Thailand. In the US, Thailand ranks as the 10th most attractive country for study abroad. I do believe that Thailand is an attractive destination for study, which combined with the local hospitality sector makes it the ideal place to learn. Dusit Thani College is the country’s oldest college of culinary arts and hotel management, which should attract more students [to Thailand].
Deputy Prime Minister Supattanapong Punmeechaow 
Government spokesperson Anucha Burapachaisri 
Auramon Supthaweethum 
Frouke Gerbens 
