Huge tax breaks to push switch from old cars to new and EV
EconAug 28. 2020Industry Minister Suriya Juangroongruangkit
By The Nation
The government will offer tax incentives for individuals and companies to exchange their old cars for new cars or electric vehicles, Industry Minister Suriya Juangroongruangkit told the “New Generation of Automotives” seminar hosted by Krungthep Turakij newspaper on Thursday.
The scheme will apply to used cars 15 years old or older and will boost sales of new cars and e-vehicles, he said. The ministry also aims to recycle the used cars.
The government will offer income tax deductions of up to Bt100,000 for companies and individuals who join the scheme, which will be proposed for Cabinet approval in the next two or three months.
The tax break will be offered for five years, said Suriya, adding that he will finalise details of the tax package with Finance Minister Predee Daochai soon.
“The government may lose some tax revenue [due to the scheme], but in return we will cut PM2.5 air pollution and boost car sales that have been badly hit by Covid-19. It will also boost the adoption of electric cars,” he said.
The tax break would not immediately boost demand for e-cars, since their price is currently higher than combustion-engine cars, Suriya said. But once prices dropped to the same level, it will help tip the balance in favour of e-cars.
Countries in Europe have offered similar incentives for consumers to switch to electric cars.
Central bank issues debt relief measure to slash Thais’ interest burden
EconAug 28. 2020Thanyanit Niyomkarn, assistant central bank governor
By The Nation
The Bank of Thailand on Thursday issued a new debt relief measure aimed at reducing Thais’ interest rate burden from 16-25 per cent to 5.5-8.8 per cent.
The debt consolidation measure will allow borrowers to bundle their credit card, personal and mortgage loans into one sum, Thanyanit Niyomkarn, assistant central bank governor said on Thursday (August 27).
Borrowers can then utilise collateral in their mortgage loans to restructure their debt total with financial institutions.
Borrowers usually pay between 16 and 25 per cent for personal loans, but the new debt restructuring measure will cut this to the minimum retail rate (MRR) of 5.75 to 8.8 per cent, she said.
Debtors will be also allowed to extend their debt payment period, said Thanyanit.
The measure is free of charge and will not damage their credit rating, she assured.
The move comes after the central bank, financial institutions and state-run banks shared concerns about economic recovery amid the Covid-19 fallout. Many businesses are yet to resume normal operations, hitting workers’ income, Thanyanit noted.
Retail borrowers can apply for the debt relief measure via banks from September 1 this year to December 31, 2021.
The Stock Exchange of Thailand (SET) Index closed at 1,326.81 today (August 27), up 4.26 points or 0.32 per cent. The volume of total transactions was Bt52.172 billion with an index high of 1,331.64 and a low of 1,320.91.
During the morning session, a stock analyst at Krungsri Securities said he expected the index to fluctuate between 1,315 and 1,330 points despite Germany and France moving to issue economic stimulus measures.
“We expect investors to delay trading as they follow the US Federal Reserve meeting today and tomorrow to seek signs of economic direction and monetary policy, resulting in the index volatility,” he said.
The top 10 stocks with the highest trade value today were PTT, GULF, CRC, VGI, CPALL, MINT, SAWAD, PTTEP, AOT and GPSC.
As of 4.30pm, the price of oil fell by US$0.14 or 0.32 per cent to $43.25 per barrel, while gold fell by $2.90 or 0.15 per cent, to $1,949.60 per ounce.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 23,208.86, down 82 points or 0.35 per cent.
China’s Shanghai SE Composite Index closed at 3,350.11, up 20.37 points or 0.61 per cent, while Shenzhen SE Component Index closed at 13,535.09, up 106.69 points or 0.79 per cent.
Hong Kong’s Hang Seng Index closed at 25,281.15, down 210.64 points or 0.83 per cent.
South Korea’s KOSPI Index closed at 2,344.45, down 24.87 points or 1.05 per cent.
Taiwan’s TAIEX Index closed at 12,797.31, down 35.98 points or 0.28 per cent.
Get lucky with dtac’s popular ‘personalised lucky mobile phone number’
Aug 27. 2020Dtac chief marketing officer How Lih Ren, left, and Thai numerologist Tossaporn Sritula, widely known as Ajarn Chang
By The Nation
Total Access Communication (Dtac) has seen impressive sales growth of its popular “personalised lucky mobile phone number”, a campaign for which was launched a month ago.
Dtac has been working with popular Thai numerologist Tossaporn Sritula, widely known as Ajarn Chang, since 2005 to predict its customers’ fortunes via their telephone numbers. The practice is no less popular in 2020.
A recent dtac survey found that 74 per cent of Thais attribute lucky numbers to their fortunes in love, finance, friendship and more.
“This year, we have offered our most personalised lucky numbers service yet,” Dtac chief marketing officer How Lih Ren said on August 26. “Our number health check platform provides an all-inclusive computation assessment that covers all aspects of Ajarn Chang’s numerology theory. Our continued partnership with Ajarn Chang has also been strengthened by a comprehensive media plan that offers content tailored for television and new media channels, including a Facebook Live-streamed fortune-telling event.”
Further success was driven by dtac’s recent partnerships with CSC and IT City, two of the largest smartphone and IT retailing chains in Thailand. With more than 300 outlets nationwide, CSC and IT City have dramatically expanded dtac sales channels while increasing the visibility of its lucky numbers project.
A personalised partnership
A worldwide belief dating back thousands of years, numerology reaches different conclusions throughout the region. For example, in China the number 8 is considered lucky because it is homophonous to the word for wealth, while in Japan the same is true for 7, or “nana”. In Hong Kong, 6 is homophonous to the Cantonese word for luck, and in Thailand 9 is homophonous to the word for progress.
“However, to find a lucky number specific to each person, we need to delve into astrology and its relation to the stars,” said Ajarn Chang. “The numbers represent the stars. For example, the sun is number 1 and Jupiter is number 5.”
Ajarn Chang’s 3 theories of lucky numbers
Dtac this year worked with Ajarn Chang on an algorithm that considered each of his three lucky number theories.
The first theory takes its prediction from the sum of all numbers in a 10-digit phone number, which usually falls between 40-60. The second theory determines a person’s luck by the presence of pairs, with the last seven digits being particularly ominous for one’s good or bad luck. The third theory looks to astrology, and a person’s birth date and zodiac sign in connection to the first two theories.
According to Ajarn Chang, there are two types of lucky numbers: those considered generally lucky, and those which are only lucky for particular individuals, or personalised lucky numbers. Dtac’s number health check platform lets users get to know their personalised lucky – and not so lucky – numbers on a rating scale from D to A+. If their current score is low, the user can purchase an available lucky number from monthly packages starting as low as Bt499.
“The personalised lucky number programme helps you access a genuinely lucky number according to my methodology,” Ajarn Chang said. “Compared to a human sales consultant, who might want to sell a number that’s long been available, this platform is impartial. This is an evolution of fortune telling that allows greater accessibility and accuracy. Many of these numbers would certainly fetch five-digit prices on the open market.”
The system narrows down each customer’s personalised lucky number from more than 100,000 that are available to only 10-100.
Whatever network you are subscribed to, dtac has created two websites that lets you check for your own lucky numbers. Dtac subscribers can visit www.dtac.co.th/checknumber and key in all the fields to discover whether their number is compatible with fortune in love, work and money.
Both dtac and non-dtac subscribers can also search for a new mobile phone number manually at http://www.dtac.co.th/searchnumber, or at any dtac service centre nationwide.
Thai industry recovering – but slower than expected
Aug 27. 2020
By The Nation
Thailand’s industrial sector is showing signs of recovery after the manufacturing production index (MPI) rose for three consecutive months, the Office of Industrial Economics (OIE) said.
Thongchai Chawalitpichaet, OIE director-general, revealed that July’s manufacturing production index rose by 3.12 per cent on June. Capacity utilisation was 56.01 per cent, up from 55.07 per cent in the previous month.
However, the MPI also fell by a bigger-than-expected 14.69 per cent in July from a year earlier. Reuters had forecast a fall of just 13.9 per cent in July.
Meanwhile capacity utilisation remains lower than its highpoint in March this year of 67.78 per cent.
“Capacity utilisation hit its lowest point at 51.27 per cent in April this year,” said Thongchai.
The factory output figures showed the industrial sector has bottomed out and begun to recover – provided a second wave of Covid-19 wave does not hit Thailand, he said.
However, Covid-19 and other crises also presented an opportunity for Thailand, he added.
The pandemic in partner countries, the US-China trade war and floods in China had disrupted the global supply chain, resulting in the relocation of production bases to diversify risk.
“This is an opportunity for Thailand to encourage foreign investors to relocate their production bases here for the skilled labour and effective containment of Covid-19,” said Thongchai, pointing to the Eastern Economic Corridor.
He said Thai industry is recovering steadily, with segments such as food and chemicals meeting growing demand and expanding by 2.7 per cent and 0.7 per cent year on year, respectively.
“We expect the industrial sector to return to normal in 2021,” he said.
Industries which expanded well in July this year were as follows:
Beer industry expanded by 24.96 per cent year on year as firms accelerated production to compensate for temporary closure during the lockdown period, and received orders from retailers, restaurants and entertainment venues allowed to reopen.
Chemical fertiliser industry expanded by 48.23 per cent year on year as the demand from farmers increased during the rainy season.
Animal food industry expanded by 9.68 per cent as demand for pet and fish foods grew steadily.
Household appliance industry expanded by 19 per cent as people stayed home during the Covid-19 crisis, while the export of household appliances increased after the countries eased lockdown measures.
Palm oil industry expanded by 14.53 per cent as production increased during the rainy season, and demand for biodiesel and palm oil remained robust.
B Grimm Power added to FTSE Asia Pacific large-cap index
Aug 25. 2020
By THE NATION
Energy generator B Grimm Power (BGRIM) will on September 18 be added to the list of companies on the FTSE Global Equity Index Series Asia Pacific Ex Japan and Ex China in the category of Large Cap Index.
The selection and decision to upgrade BGRIM from the Mid Cap to the Large Cap category reflected investors’ confidence in the company’s performance and business strategy, said B Grimm Power president Preeyanart Soontornwata. It could also enhance the firm’s liquidity and market cap while being selected in the new category was a positive sign for both retail and institutional investors, she added.
BGRIM has also been chosen to join the FTSE4Good Index Series designed to measure sustainability standards, the MSCI ESG index (with a BBB rating), the Thailand Sustainability Investment list (THSI) and the ESG 100 group. The company says the selections reflect B Grimm Power’s strong focus on environmental, social and governance (ESG) principles to create long-term value for all stakeholders.
CorporateAug 27. 2020EGCO Group president Thepparat Theppitak
By The Nation
The Electricity Generating Co (EGCO Group) is set to apply for a licence from the Energy Regulatory Commission to import liquefied natural gas (LNG), said EGCO Group president Thepparat Theppitak.
The imported LNG will fuel its own power plants, he added.
The company also plans to join with its existing community enterprise partners to invest in community power plants in many areas.
Thepparat expects the company’s operating profit this year will be close to last year’s figure of Bt10.368 billion.
EGCO Group reported net second-quarter profit of Bt5.075 billion, up 29 per cent year on year. The increase was contributed mainly by foreign exchange gain. Net profit for the first half of 2020 was Bt4.662 billion, down 39 per cent year on year.
However, EGCO Group has managed to maintain a debt to equity ratio of only 1.19.
In response to the operating performance, EGCO’s board of directors resolved to pay an interim first-half dividend of Bt3 per share on September 17.
The group also reports good progress in all of its four projects – three power plants and one related business.
The Gangdong Fuel Cell Project in South Korea is 98 per cent complete and expected to start commercial operation in the fourth quarter of this year.
The Nam Theun 1 Hydropower Project in Laos is 74 per cent complete and scheduled to begin operating in the second quarter of 2022.
The Yunlin Offshore Windfarm in Taiwan is 48 per cent complete and set to launch commercial operations in the third quarter of 2021.
Meanwhile, the extension of the petroleum pipeline in Northeast Thailand is 43 per cent complete and expected to come online in the fourth quarter of 2021.
The company is also looking for new opportunities to invest in upstream fuel infrastructure to boost the value of its core business.
Thai Airways International Plc is ready to arrange special direct charter flights from six countries to Phuket under the government’s plan to revive the subdued tourism sector, said acting president Chansin Treenuchagron.
The six countries are Denmark, Germany, the United Kingdom, South Korea, Japan and Hong Kong.
The airline can make two flights per month on each of these routes, Chansin said.
THAI is expected to begin these special flights in late November. The airline will even increase the flights on these routes if it sees rising demand, he said.
It is also expected to make special charter flights from China to Phuket.
Chansin said THAI has given utmost importance to the security and health of passengers on all these routes.
Tourism businesses have asked the government to open up the country to some groups of foreigners to help boost the struggling sector, which is suffering from the impact of the Covid-19 pandemic.
Prime Minister Prayut Chan-o-cha said yesterday (August 26) that he was in talks with state agencies on how to open the country to foreign tourists once the Covid-19 situation improves.
Finance stocks rose sharply on Wednesday (August 26) when at least two brokerage firms released information relieving investors’ uncertainty over the Bank of Thailand (BOT)’s reduction of the loan interest ceiling, experts said.
The price of Ratchthani Leasing (Thani) rose by Bt0.42 or 13.38 per cent to Bt3.56 per share, Srisawad Corporation (Sawad) rose by Bt4.25 or 9.77 per cent to Bt47.75 per share, and Muangthai Capital (MTC) rose by Bt1.75 or 3.59 per cent to Bt50.50 per share.
Kitpon Praipaisarnkit, a strategist at UOB Kay Hian Securities (Thailand), said finance stocks rose as at least two brokerage firms spoke up about the reduction of the loan interest ceiling. “These shares had dropped sharply previously and rose again in the short term because there were no negative sentiments in this group,” he said.
He said investors should hold on to finance shares because these companies will set up more allowances for doubtful debts once the BOT’s measure giving borrowers a holiday from debt repayment expires, resulting in an increase in non-performing loans (NPLs) and a decline in the second-half performance.
“The reduction in the loan interest ceiling has also caused a decline in return on equity [ROE], stopping investors from trading these shares at a high price,” he said. “Therefore, now is the chance to the sell these shares to make profits.”
Wijit Arayapisit, a strategist at Maybank Kim Eng Securities (Thailand), said finance shares rose because investors had picked them up when they dropped sharply, thinking that the Thai stock index could rise no further.
“Investors also decided to buy these shares because they are still performing well, though their profits have not been growing much as people still need to borrow from non-banking financial institutions,” he said. “However, we still advise selling these shares.”
The price of gold rose by Bt250 per baht weight in morning trade today (August 27), the Gold Traders Association reported.
As of 9.25am, the buying price of a gold bar was Bt28,650 per baht weight and selling price Bt28,750, while gold ornaments cost Bt28,136.96 and Bt29,250, respectively.
At close yesterday, the buying price of a gold bar was Bt28,400 per baht weight and selling price Bt28,500, while gold ornaments cost Bt27,894.40 and Bt29,000, respectively.
The Hong Kong gold price rose by HK$260, opening at $18,000 (Bt72,629.28) per tael this morning, the Chinese Gold and Silver Exchange Society said.
The Comex (Commodity Exchange) gold price to be delivered in December rose by US$29.40, or 1.53 per cent, to $1,952.5 (Bt61,056.63) per ounce at yesterday’s close.
The gold price closed in positive territory yesterday from a weakening dollar and mass buy-ups of the precious metal due to uncertainty over the inflation rate. Meanwhile, investors are awaiting US Federal Reserve Chairman Jerome Powell’s speech at a key meeting today.
Industry Minister Suriya Juangroongruangkit 
Thanyanit Niyomkarn, assistant central bank governor 
Dtac chief marketing officer How Lih Ren, left, and Thai numerologist Tossaporn Sritula, widely known as Ajarn Chang 
EGCO Group president Thepparat Theppitak 
