CorporateSep 23. 2020Group CEO Jareeporn Jarukornsakul, right
By The Nation
WHA Corporation (WHA Group) forecasts a two-digit growth in revenue next year as conditions improve, said its group chief executive officer Jareeporn Jarukornsakul.
She also revised down the group’s revenue forecast this year to around Bt10 billion, matching last year’s total, from the original projection of 15 per cent growth.
The revision is in response to the Covid-19 outbreak, which has prevented potential investors from travelling to Thailand for business talks, she said.
The group is expected to set aside a 2021 investment budget of Bt10 billion for its four core businesses – Bt3 billion each for logistics, industrial estate development, and utilities and power, and the remaining Bt1 million for its digital platform.
She added that the group seessigns of a recovery across its four core businesses by the end of this year, despite the challenging situation.
CorporateSep 23. 2020The Oriental Pearl Tower in the Lujiazui district of Shanghai in 2015. MUST CREDIT: Bloomberg photo by Qilai Shen
By Syndication Washington Post, Bloomberg · No Author · BUSINESS, WORLD, ASIA-PACIFIC A battle for financial talent is intensifying in China, one of the few places worldwide where global banks are firmly in hiring mode.
Credit Suisse Group this month hired a dozen analysts in China, almost half of whom used to work at UBS, which has scooped up more than 40 people from global and local firms. Morgan Stanley has moved a team to the mainland and hired about 20, but also saw six bankers walk out the door, some to local brokers. Along with Goldman Sachs, most foreign firms are seeking to double their headcounts over the next few years.
The hiring follows China’s historic opening of its financial sector and stands in contrast to much of the world, with global banks announcing jobs cuts this year exceeding 63,000, on track for the deepest retrenchment since 2015. The industry’s biggest players are betting there’s billions to be made in China on products from merger advice to stock underwriting and trading – if they can find the right people.
“There’s definitely a talent war between some of the big global banks,” said Sid Sibal, a Hong Kong-based regional director at recruitment firm Hudson. “In China, there’s a finite amount of talent that one can poach from big investment banks, so they’re going to have to think out of the box.”
Credit Suisse has hired top ranked analyst Alex Liu and Tracey-Ruth Sun from UBS to lead its research operations. Last year it snapped up UBS’s head of research, Erica Poon Werkun. The firm pushed out about 30 bankers at the joint venture in July to make room for fresh talent, a person familiar has said.
Beefing up research is becoming crucial as China opens its markets to lure more foreign inflows. It last year scrapped limits on overseas purchases of stocks and bonds and eliminated approvals for quotas. Foreigners hold 4.7% of Chinese stocks in circulation, way below the more than 30% in markets such as Japan’s and South Korea’s, according to the China Securities Regulatory Commission.
UBS is also on the prowl. The Swiss bank has recruited about 200 people this year, including 44 bankers, analysts and support staffers from at least five brokerages, including Credit Suisse, a spokesman said. UBS transferred managing director Grace Chen from Hong Kong to Beijing to head technology, media and telecommunications banking.
U.S. behemoth Morgan Stanley has seen a churn of bankers. After flying executives in and out of Shanghai over the past years to right its money-losing joint venture it has installed its own personnel in top positions. The firm this year moved seven executives to its China venture, in addition to hiring 20 bankers and research analysts, a person familiar said.
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But it was also hit by departures, with some leaving for China International Capital, underscoring the difficulties foreign banks face. Morgan Stanley lost six bankers at its China venture recently, including two executive directors and another banker who worked on its biggest deal this year, people familiar said. That was in part after it failed to pay bonuses to some executives and bankers but also due to lower deal flows, problems faced by its global rivals as well, the people said.
Morgan Stanley this year ranks first among foreign brokers in China after helping arrange the initial public offering of Semiconductor Manufacturing International the largest ever on Shanghai’s Star board, but it lags far behind local rivals such as CICC.
Spokeswomen for UBS, Morgan Stanley and Credit Suisse declined to comment.
Analysts and bankers say that Chinese brokers offer a faster chance at advancing. While an analyst with three years of experience could become a sector chief at a local broker, it takes much longer to climb the ladder at a foreign firm, according to one executive who has worked for both. Stricter compliance at foreign banks is another hurdle. Local brokerages, for example, are allowed to co-invest in Star Market deals they handle, a potentially lucrative practice that is heavily scrutinized at foreign firms.
While it’s still hard to compare compensation difference between local and foreign firms, in part because global banks are just getting started, the newcomers are offering at least a 20% bump up to lure candidates for senior roles, said Eric Zhu, head of financial services recruitment at Morgan McKinley. Campus recruitment by foreign firms has grown by double-digits from two years ago, he said.
Some local firms are taking note and adjusting their compensation structure to be more in line with global practice by offering a greater part in fixed salary to graduates and junior hires, he said, but cautioned that recruiting in China is about more than just pay.
“Compensation isn’t the most important factor,” he said. “Foreign companies don’t have much status here; you have to tell a very compelling story for people to be interested.”
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There’s also the lure of work outside banking. A senior banker who left Morgan Stanley’s joint venture this year said he was headhunted by about four corporates. Demand for bankers is climbing as China loosens rules in its capital markets, making it easier to raise funds and go public. While compensation is not as high, the lure of stock options is enticing, he said, declining to be named because he was not authorized to discuss the matter.
But global banks are now betting their expanding investments and increased control will translate into climbing market share, making them a bigger magnet for talent.
Thomas Fang, head of China global markets at UBS, estimated this year that China’s brokerage industry will generate revenue of $100 billion by 2025, with foreign capital grabbing 25% of the pie.
Just based on the stated hiring plans by Goldman, UBS and Japan’s Nomura Securities, they will need to find at least a 1,000 people over the next few years. JPMorgan Chase has been quiet about its hiring plans, but is expanding by a third its office space in China’s tallest skyscraper in Shanghai’s business district. Credit Suisse CEO Thomas Gottstein said on Tuesday that the bank plans to double its number of relationship manager in the Asia, as it’s rolling out onshore wealth management in China.
“It’s not 10, 20 staff anymore,” said Sibal. “When you have that level of demand you have to broaden your search.”
Thai central bank studies option of virtual banking licences
CorporateSep 23. 2020Bank of Thailand’s deputy governor Ronadol Numnonda
By The Nation
Bank of Thailand’s deputy governor Ronadol Numnonda said the central bank is studying the pros and cons of virtual banking now that central banks in other countries have granted licences for digital banking.
Banks in Europe, Singapore and Malaysia already offer customer services via virtual banking platforms.
Though Thai banks provide several services via mobile banking and have cut down on physical bank branches in response to consumer demands, the services provided online are still limited.
Ronadol said both local and foreign banks have discussed the prospect of virtual banking operations in Thailand with the central bank.
However, he added, the central bank wants to make sure that the new digital banking service answers the needs of both customers who live in large cities as well as those who are upcountry. The virtual banking operation must also ensure customers’ safety, he said.
Thaweelap Rittapirom, executive vice president of Bangkok Bank, said banking services have changed a lot because now people prefer using mobile banking options and have cut down on the use of ATM machines. Hence, he said, there is a great possibility that virtual banking will arrive in Thailand soon.
Amorn Suvachittanont, first senior vice president at Kasikornbank, suggested that other key developments such as a wider use of digital currencies may take place before virtual banking materialises in Thailand.
WHA Group positions itself for growth despite fallout of Covid-19
CorporateSep 22. 2020“Despite the challenging situation, we are confident we can consolidate and grow across our four business hubs, and prepare to capture opportunities for sustainable growth both in Thailand and in Vietnam,” said Jareeporn Jarukornsakul, Group CEO of WHA Corporation Public Company Limited.
By The Nation
WHA Corporation Public Company Limited (WHA Group) said it sees signs of recovery across its four core businesses by the end of this year.
“Despite the challenging situation, we are confident we can consolidate and grow across our four business hubs, and prepare to capture opportunities for sustainable growth both in Thailand and in Vietnam,” said Jareeporn Jarukornsakul, Group CEO of WHA Corporation Public Company Limited.
With the anticipated return of foreign investors, the group expects to conclude several warehouse and factory rental contracts and land sale deals, as well as see an increased demand for water, electricity and digital platform services, she added.
WHA Logistics has also been doing well thanks to fast-growing demands in the e-commerce sector. It has also signed deals for ready-built factories and warehouses, and has several in the pipeline with customers in the e-commerce, food processing and third-party logistics sectors.
Meanwhile, WHA Industrial Development (WHAID) has affirmed its leadership in Thailand by completing the 2,200-rai WHA Eastern Seaboard Industrial Estate 3.
The construction of the group’s 11th industrial estate in Thailand – WHA Rayong 36 – will start in the fourth quarter of this year.
With more land available in the Eastern Economic Corridor, WHAID is getting ready to welcome customers who want to relocate due to the US-China trade tensions or other supply chain disruptions.
Expansion plans of the industrial estates in the Eastern Seaboard and Saraburi are scheduled to commence as planned.
In response to the fallout from Covid-19, the group has revised its industrial land sales target this year to 900 rai, comprising of 600 rai in Thailand and 300 rai in Vietnam.
Last month, WHAID signed a joint venture with Bangkok Industrial Gas (BIG) as part of its strategy to partner with industry experts. The new BIG WHA Industrial Gas will initially build a gas-separation plant and a pipeline to supply nitrogen to the Eastern Seaboard Industrial Estate and the adjacent WHA Eastern Seaboard Industrial Estate 1. In the long term, the venture will seek to serve the industrial gas demands in other WHA industrial estates.
WHAID has also established WHA TUS, a new joint venture with China’s Tus-Holdings, a leading science and technology park developer. WHA TUS will build TusPark WHA, an innovation and incubation centre for start-ups, which will promote science and technology cooperation between China, Thailand and other Asean countries. The park will be located in the Chulalongkorn University campus.
The WHA Industrial Zone 1 – Nghe An in Vietnam is also gaining strong traction with new customers from China, Japan and Thailand.
WHA Utilities and Power (WHAUP) also foresees an improvement by yearend driven by an improved drought situation, gradual resumption of manufacturing as well as incremental consumption from new customers.
WHAUP will continue to launch and offer high-value solutions such as wastewater reclamation, demineralised water, as well as develop renewable energy solutions.
By the end of this year, WHAUP should have a total installed equity of 592 megawatts, divided between conventional power 547MW, solar rooftops 42MW and 3MW generated using industrial waste at the Chonburi Clean Energy plant.
WHA Digital Platform will also continue offering fibre optics (FTTx) in all 10 of its operating industrial estates in Thailand.
Another key milestone is the completion of the 25-storey WHA Tower on Bang Na-Trat KM 7, which will be ready for occupancy in December. The office building will offer 52,000 square metres of flexible office space for corporates, multinational corporations, SMEs and start-ups.
The top executives of four Thai banks are holding talks on Tuesday on their response to allegations of suspicious transactions revealed by the International Consortium of Investigative Journalists (ICIJ).
The ICIJ reports are based on leaked files, comprising so-called suspicious activity reports by the Financial Crimes Enforcement Network (FinCEN) in the United States.
The Thai banks may issue a joint statement shortly, a source in the banking industry told the Nation.
The ICIJ found 92 transactions involving four Thai banks receiving $9.6 million and remitting $31.75 million between 2000 and 2017 that were flagged by financial institutions as suspicious to the US authorities.
The four Thai banks named in the report are: Bangkok Bank, Kasikornbank, and two state-owed banks — Krungthai Bank and Export-Import Bank of Thailand.
The data involving Thai banks represents only a small fraction of the more than $2 trillion worth of transactions found in the FinCEN files, according to the ICIJ.
The data map also provides information about US-based corespondent banks that allow financial institutions in more than 150 countries and territories to process payments in US dollars, says the ICIJ.
The records include more than 2,100 suspicious activity reports filed by nearly 90 financial institutions to FinCEN.
The transactions do not necessarily establish any criminal conduct or other wrongdoings. The data offers an unprecedented overview of how money flagged as suspicious, and in some cases linked to corruption, fraud, sanctions evasion or other crimes, flows around the globe via networks of correspondent banks, according to the ICIJ.
Small businesses will get a big boost from October 1, when new Finance Ministry rules on state procurement come into effect.
The rules stipulate that 30 per cent of each government agency’s budget must be spent on procuring items or services from small and medium enterprises (SMEs), said Veerapong Malai, director-general of the SME Promotion Office.
Local SMEs will also get top priority in supplying state development projects within their province. State agencies can only seek outside SME suppliers if they cant’ find any within the province or have already contracted at least two local SMEs.
The new rules are aimed to assist micro SMEs with less than five employees and small enterprises with around 50 employees.
State agencies that fail to meet the 30 per cent requirement must explain the reasons in a report to their superiors, he added. The new rule is expected to grant SMEs access to state spending worth Bt400 billion.
State agencies spend about Bt1.3 trillion per year on procurement. About 45,000 SMEs are currently under contract with state agencies. However, most are medium-sized enterprises in the construction sector.
The price of gold was unchanged in morning trade today (September 23), the Gold Traders Association reported.
As of 9.25am, the buying price of a gold bar was Bt28,200 per baht weight and selling price Bt28,300, while gold ornaments cost Bt27,697.32 and Bt28,800, respectively.
The gold price dropped by Bt300 per baht weight at close yesterday as the association announced a change in the price of the precious metal nine times.
The Comex (Commodity Exchange) gold price to be delivered in December dropped by US$3, or 0.16 per cent, closing at $1,907.60 (Bt60,096.50) per ounce yesterday.
The gold price moved in negative territory last night due to the strengthening dollar and strong US economic data, causing investors to reduce investment in the metal as a safe-haven asset.
The Stock Exchange of Thailand (SET) Index fell by 1.02 points, or 0.08 per cent, to 1,266.61 in the morning session today (September 23).
An analyst at Krungsri Securities expected the index to fall between 1,260 and 1,270 points amid a second lockdown in European countries, several banks’ illicit fund flows and a delay in the rollout of US economic stimulus measures, all of which are pressuring the index.
He recommended that investors buy:
> Stocks whose third-quarter performance will improve, such as TU, Asian, Com7, CHG, PTG and PlanB.
> Stocks that benefit from the weakening baht, such as Delta, Hana, KCE and SMT.
The SET Index closed at 1,267.63 yesterday, down 7.53 points, or 0.59 per cent. Total transactions amounted to Bt42.53 billion, with an index high of 1,275.27 points and a low of 1,262.41.
By The Washington Post · Rachel Siegel · NATIONAL, BUSINESS, CONGRESS WASHINGTON – Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin credit the Cares Act with helping to build economic recovery, yet their call on Congress to fill the remaining holes is not triggering action on Capitol Hill.
Of increasing concern is whether hundreds of billions of dollars in unused Cares Act money should be reallocated, or whether existing programs can be expanded to reach more businesses and municipalities on the brink. At a House Financial Services Committee hearing Tuesday, Powell and Mnuchin said the lending programs run by the Fed and Treasury could only go so far and cannot replace targeted aid from Congress.
Negotiations between Congress and the White House on another round of stimulus have been stalled for weeks.
Asked by committee Chair Rep. Maxine Waters, D-Calif., whether Treasury could further enhance the existing programs, Mnuchin said, “I unfortunately think there’s not more we can do.”
“Almost every single one of the facilities has extra capacity,” Mnuchin said, adding that the money could be reallocated “to better use.”
The House and Senate are at odds over government funding before it runs out at the end of September and triggers a shutdown. And since the death of Supreme Court Justice Ruth Bader Ginsburg last week, much of Capitol Hill has been focused on the coming nomination battle.
Still, Mnuchin said he believes that “a targeted package is still needed,” and that the White House was ready to reach a bipartisan deal.
Unlike a sweeping rescue bill passed by Congress in March, Mnuchin said another relief package would focus specifically on helping children – perhaps through money to schools – and protecting jobs in hard-hit industries such as travel and restaurants. Mnuchin added that there’s “broad bipartisan support for extending the PPP,” or Paycheck Protection Program, especially to help small businesses.
Lawmakers also talked about the $600 billion Main Street lending program, which has roughly $2 billion in loans that are either funded or in the pipeline. Businesses, banks and lawmakers say the program’s onerous terms hinder the number of loans that can be made. It’s also unclear how willing Congress is to allow for riskier loans.
Yet Powell and Mnuchin both said that for many small businesses, grants similar to those from the Paycheck Protection Program may be a better fit. For example, Powell said that the Main Street program is seeing little demand for loans under $1 million, and that even smaller loans often require borrowers to put up some sort of personal guarantee to make the loan.
Powell said a program geared toward smaller loans “would have to be a different kind of facility.”
“Trying to underwrite the credit of hundreds of thousands of small businesses would be very difficult,” Powell said. “I think PPP is a better way to address that space in the market.”
Lawmakers also raised concerns about the fate of small indebted hotels and the larger commercial real estate market. Mnuchin said that in many cases, more PPP funding would be needed to help cover commercial rent and mortgage payments, since taking on more debt may not be the answer.
Another program, the Fed’s $500 billion fund to support cash-strapped local governments, was also in the spotlight. There’s disagreement over how to judge the program’s effectiveness, as it’s only issued two loans – one to the state of Illinois and one to New York’s Metropolitan Transportation Authority – for a total of $1.6 billion.
Powell said the mere announcement of the program back in the Spring caused the municipal bond market to perk up, making it easier for local governments to borrow. Yet some lawmakers say that the program should not just be judged on how the markets respond, and that such a massive allocation of money was not being utilized even as local governments expect massive budget shortfalls.
As Powell and Mnuchin made their latest appearance on Capitol Hill, Wall Street is becoming increasingly convinced that no more stimulus is coming. Markets have been down the past three weeks, in part on pessimism about a deal on more stimulus. Meanwhile, a little more than half the 22 million payroll jobs lost in March and April have not returned. Health officials and economists fear the coming flu season could slow the pace of the recovery.
“The recovery will go faster if we have both tools [from the Fed and Congress] continuing to work together,” Powell said.
Yet in other slices of the economy, the rebound is happening faster than expected. Household spending looks to have recovered about 75% of its earlier decline, Powell noted, aided by federal stimulus payments and expanded unemployment benefits. The housing market has rebounded, and Fed leaders are growing more optimistic about where the unemployment rate will fall in the years to come.
Mnuchin said he expects “tremendous third-quarter growth, fueled by strong retail sales, housing starts and existing-home sales, manufacturing growth, and increased business activity.”
The economy has been “resilient” since many Cares Act benefits expired over the summer, Powell said, but there are unknowns about where the economy is headed. For example, Powell said savings are very high, raising the long-term risk that people will go through money stored away before they’re able to go back to work.
“So their spending will decline, their ability to stay in their homes will decline, and so the economy will begin to feel those effects at some time,” Powell said.
Powell and Mnuchin will also testify on the Cares Act on Thursday morning before the Senate Banking Committee.
By Syndication Washington Post, Bloomberg · Rita Nazareth, Vildana Hajric · BUSINESS Stocks climbed as dip buyers emerged after the market sell-off, tempering concern over remarks from Federal Reserve officials that pointed to a slow economic recovery. The dollar rose.
Most groups in the S&P 500 advanced, with retailers and tech companies among the biggest gainers. The Nasdaq 100 notched a back-to-back rally, while the Dow Jones industrial average underperformed amid a drop in banks. Equities fell earlier Tuesday as Fed Chairman Jerome Powell said the economy has a long way to go before fully recovering and will need further support. Meanwhile, Chicago Fed President Charles Evans noted that rates could rise before the inflation target is reached.
American stocks are still heading toward their first monthly slide since March on concern Congress hasn’t agreed on another fiscal stimulus package, while an increase in global virus cases has raised the specter of more lockdowns. British Prime Minister Boris Johnson announced new restrictions that are likely to last six months and told people to work from home if possible, saying the country is at a “perilous turning point” for the virus.
“We think equities will move higher over the medium term, thanks to the likely development of a successful vaccine, an end to election uncertainty, the passage of new U.S. fiscal stimulus, and continued extraordinary global monetary support,” wrote Mark Haefele, chief investment officer of global wealth management at UBS Group AG. “However, the path to ‘more normal’ is likely to be bumpy,” he said, adding that “we therefore expect volatility to persist over the balance of the year.”
These are some of the main moves in markets:
Stocks
–The S&P 500 advanced 1.1% as of 4 p.m. EDT.
–The Stoxx Europe 600 Index gained 0.2%.
–The MSCI Asia Pacific Index fell 0.8%.
Currencies
–The Bloomberg Dollar Spot Index climbed 0.5%.
–The euro decreased 0.5% to $1.1708.
–The Japanese yen depreciated 0.3% to 104.98 per dollar.
Bonds
–The yield on 10-year Treasurys advanced one basis point to 0.67%.
–Germany’s 10-year yield advanced three basis points to -0.51%.
–Britain’s 10-year yield gained five basis points to 0.203%.
Commodities
–West Texas Intermediate crude advanced 0.7% to $39.60 a barrel.
Group CEO Jareeporn Jarukornsakul, right 
The Oriental Pearl Tower in the Lujiazui district of Shanghai in 2015. MUST CREDIT: Bloomberg photo by Qilai Shen 
Bank of Thailand’s deputy governor Ronadol Numnonda 
“Despite the challenging situation, we are confident we can consolidate and grow across our four business hubs, and prepare to capture opportunities for sustainable growth both in Thailand and in Vietnam,” said Jareeporn Jarukornsakul, Group CEO of WHA Corporation Public Company Limited. 
Federal Reserve Chair Jerome Powell / File photo 
