WHA, a major industrial park operator in Thailand and Vietnam, has reaped much benefits from the recent wave of production base relocation from China to Thailand due to the US-China trade war, rising labour costs and regulatory issues, said Jareeporn Jarukornsakul, chairman and Group CEO of WHA Corporation Plc.

“Manufacturers in China have faced rising labour and regulatory costs for many years while the recent trade dispute between US and China served as a catalyst for plant relocation,” she said at an annual  seminar hosted by the Economic Reporter Association on Wednesday (January 15).

Although the US and China have reached a first phase trade deal, conflicts  between the world’s two largest economies is expected to continue due to their rivalry for global leadership, she said.

The trade dispute combined with Thailand’s Eastern Economic Corridor project helped pull in foreign investment last year after the country had gone out of favour for foreign direct investment for many years, she said.

WHA’s industrial land sales have risen substantially in recently years. Between 2018-2019, Chinese investors outpaced their Japanese counterparts in  buying industrial land parcels from the WHA Group, she said.

+++

Key manufacturing moving to Thailand are electronics, auto and consumer goods  , she noted. However, auto and auto-parts manufacturers prefer Vietnam as their first destination, followed by Thailand among Asean countries.

For the bigger picture of manufacturing relocation out of China,  26 plants have moved to Vietnam, eight to Thailand, four to Cambodia, three to Malaysia and two to Indonesia, she said.

If the 10 Asean nations and countries in Asia Pacific could sign a free trade deal under the Regional Comprehensive Economic Partnership (RCEP) next month as expected, it will accelerate foreign direct investment in Thailand and the region, she said.  However, Jareeporn said, investors and exporters have raised concerns about the strengthening baht.

“Rising baht value has increased investment cost in Thailand while exports face fierce competition,” she pointed out. Thailand also faces the challenge of producing more skilled workers to meet the demand of foreign investors, she added.

Visit Limlurcha, president of the Thai Food Processors’ Association, said the value of food exports is expected to expand between 2 to 5 per cent this year after contracting 1.3 per cent last year, the deepest drop in four years.  In 2019, the export value of farm products contracted 2 per cent while processed food exports grew 2 per cent. Appreciation of the baht and intense competition from neighbouring countries were the main factors, he said.

He said exports to China and the US expanded last year although the two countries were engaging in a trade war. China imported more chicken from Thailand due to the outbreak of swine African flu in the country.

Value of food exports amounts to Bt 1 trillion annually compared to Bt 2 trillion in the domestic market. The home market could expand further given the Thai population of 70 million plus the annual arrivals of 40 million foreign tourists, he said.

Thai export performance this year is closely linked to the US-China trade relation, and the US-Iran conflict. Prolong conflicts could dampen consumer confidence and spending, he noted.

Drought may adversely affect production of farm products this year, Visit said.

Tourism Council of Thailand’s president Chairat Trirattanajarasporn, said  the industry is expected to expand this year. The government has estimated foreign arrivals to reach 41 million this year, up from 39.7 million last year. However, local hotels and tour operators have to adjust amid intense competition as travellers now have more choices in accommodations, including   house rental while the number of free independent travellers (FIT) is rising, currently accounts for 60 per cent of all arrivals.

With more tourists not being parts of large tour groups, tour operators have to change their business strategy, he said.

He raised concerns about the price war among tour agents. “Cutting prices will make everyone worse off, we should not compete on pricing but the quality of services,” he suggested.

Meanwhile, Wichian Premchaiswadi, vice chairman of the Digital Council of Thailand, is optimistic on the advent of 5G,  the next generation of mobile technology, saying that it will boost most Thai businesses this year.

When consumers can download media content faster, they may change their behaviour due to user experience. How fast and widely the public will adopt 5G technology depends on the readiness of the infrastructure, resolving issue of 5G standards and service cost, he added.

The soul-stirring coastal haven, which combines a modern essence with the charming maritime heritage of Koh Samui, marks the first time a hotel under the Meliá Hotels & Resorts brand has been opened in Thailand and is the first property under AWC’s portfolio following the company’s initial public offering.

The opening of Meliá Koh Samui, Thailand is one of the latest milestones of AWC’s strong growth pipeline that AWC continues to enhance and develop according to the IPO plan, said Wallapa Trisorat, AWC’s CEO and President.

Meliá Hotels International will help AWC in creating a synergy to connect with target customers across the world, she added.

Following the opening of Meliá Koh Samui, Thailand as well as the recent signing of Courtyard by Marriott Phuket Town, AWC’s operating assets in the hospitality segment have increased from 14 to 16 hotels with the number of rooms growing from 4,421 to 4,869.

“We have led the Imperial Boat House hotel in Koh Samui through a significant revival and converted it into Meliá Koh Samui, Thailand with the aim of offering a truly unique guest experience,” Wallapa added.

“As the hotel boasts the first lagoon pool and the largest swimming pool in Koh Samui, along with a creative combination of hydrotherapy facilities like jacuzzi, water massage and rooms with a direct pool access, guests will find themselves relishing in the soothing fascination of water features”.

“The hotel also offers a unique experience for guests as they will be able to stay in suites fashioned after boats. These unique settings will enable them to enjoy a fun-filled and peaceful vacation in a serene atmosphere,” she added.

Meliá Koh Samui, Thailand is nestled on Choeng Mon Beach, just 15 minutes from Samui International Airport. The hotel is a 159-room and 41-suite property with a host of outstanding facilities.

“Meliá Koh Samui, Thailand is only the beginning of the company’s strategic partnership with Meliá Hotels International. A number of other top-notch hotels and resorts from the prestigious hotel chain will be pioneered in Thailand in coming years,” she added.

“This landmark project in Koh Samui is the start of a strategic roll-out of the Meliá brand in Thailand and at least two more hotels will be opened in key destinations across Thailand, including Innside Bangkok Sukhumvit and one establishment in Chiang Mai. We will work closely with Meliá Hotels International to enhance guest experiences, drive new tourism demand and create economic opportunities for Koh Samui, and the whole of Thailand,” Wallapa said.

The makeover project will cover the refurbishment of its exterior and interior design as well as the transformation of Thaniya Road.

The new-look Thaniya Plaza will be introduced under the concept “The Future of Thaniya,” aiming to add vibrancy to its neighbourhood, reinforce its position as a landmark of Silom Road, and showcase its complete Golf Centre.

Meanwhile, more magnetic and lifestyle shops, as well as green area, will be added, catering to the lifestyle of a new generation and tourists.

The first phase of the renovation will start in April, to be completed early next year. During renovation, businesses at the venue will not be disrupted.

Tasnawat Sombuntham, Managing Director of Thaniya Group, said: “Built on a vacant land in Silom district, the long-standing Thaniya Plaza has been operating for 30 years. The complex of two adjacent buildings, consisting of an office building and a plaza building, is connected to the BTS Sala Daeng Station and MRT Silom Station”.

“Thaniya Group is one of the first land developers to introduce the concept of mixed-use development by adding a four-floor retail podium at the front building (Thaniya BTS Wing) and the main building (Thaniya Plaza). At the retail area, more than 80 per cent of the tenants operate golf shops, making Thaniya Plaza the largest golf centre in Thailand and Southeast Asia”.

Others include Japanese restaurants and lifestyle shops, such as a camera store selling film cameras, a rarity these days, he said.

With great success over the past three decades, Thaniya Plaza has been well-known among business communities as well as Thai and foreign tourists. The complex is recognised as one of the landmarks in the Silom area.

Thaniya Plaza’s renovation plan is aimed at reinforcing its position and responding to the new lifestyle of consumers.

Furthermore, in line with the policies of the Bangkok Metropolitan Administration (BMA) and the Collaborative Networks of Business Operators in Silom Area to develop Silom Road into a clean, beautiful, organised, safe, and modern street, the Thaniya Group is now ready to lead the change.

With an investment of over Bt 1 billion, the group will develop Thaniya Plaza’s retail zone into a “Lifestyle Mall of the Future” to meet the needs of all customers. The renovation project will a harmonious look for the two adjacent buildings.

With the transformation, Thaniya Plaza will be introduced under the concept “The Future of Thaniya” showcasing a modern style that gives importance to the environment and energy-saving practices.

Thaniya Plaza’s design concept, Modern and Green, is based on survey results showing that the public wants to see more green space in the Silom area.

There will be four storeys of retail space or a total of 12,000 sqm, of which 8,500 sqm is located inside Building A (Atrium) on Thaniya Street and 3,500 sqm inside the Building B (BTS) on Silom Road. Two connecting bridges between Building A and Building B will be located on the 3rd floor and 4th floor.

Furthermore, the landscape on the ground floor will be transformed to increase more green area and create a link between the two buildings.

In building A, the 1st and 2nd floors will serve as a golf centre, featuring a golf simulator and golf equipment from top brands.

The 3rd floor will house lifestyle shops showcasing lifestyle products and services, including beauty clinic, dental clinic, beauty stores, and many others.

ALT Telecom Plc, Advanced Wireless Network Co Ltd, Cable Connect Co Ltd, Dtac TriNet Co Ltd, Interlink Telecom Plc, Symphony Communication Plc, TCC Technology Co Ltd, Triple T Broadband PCL, True Internet Corp Co Ltd, True Move H Universal Communication Co Ltd and United Information Highway Co Ltd inked the deal.

The parties will be able to collaborate on the commercial use of shared infrastructure operated by TOT nationwide.

TOT set the rental fee starting at from Bt9,650 per subduct per kilometre per month, in line with market benchmarks from the National Broadcasting and Telecommunications Commission. One subduct is equivalent to three to four microducts.

The operators are likely to secure a volume discount based on existing and new contracts, as well as contract length. The public will benefit from the lower charges, improving access to connectivity services.

The move is aimed at reducing visual pollution, avoiding duplicate investments and encouraging fair competition. This is line with the government’s vow to beautify cities, putting both electrical and telecommunications poles and lines underground nationwide.

The agreement aims to explore and develop cross-border payment for workers and for small and medium-sized enterprises’ cross-border transactions in order to encourage the use of formal cross-border channels through the banks.

The banks also agreed to explore the baht-kyat direct conversion to support and service Thai and Myanmar clients of the banks.

This collaboration makes the two banks the pioneers in support of the recent policy made between the Central Bank of Myanmar and the Bank of Thailand on collaboration to explore the use of the baht and kyat for cross-border trade settlements.

Currently, there are about US$1.1 billion (Bt30 billion) foreign direct investment from Thailand, making Thailand the fifth largest investor in Myanmar.

AYA Bank will cooperate with SCB to help facilitate some of the Thai companies that need the Myanmar kyat for their investment and working capital requirements in Myanmar, as well as for trade purposes.

SCB established its Representative Office in Yangon in 2012. SCB has been extensively supporting Myanmar banks and businesses through the years in terms of supporting FDIs into Myanmar and provided over $200 million in trade credit to local partner banks.

The debentures have maturity tranches ranging from three years to 10 years at an average coupon of 2.5 per cent.

The debentures were made available on January 7-8 and were more than two times oversubscribed, with strong interest from institutional investors, leading financial institutions, fund management companies and insurance companies.

United Overseas Bank Limited and Bangkok Bank Pcl were the underwriters to the issue. TRIS Rating assigned a rating on the proposed issue of debentures at A- with a stable outlook.

Sopon Racharaksa, president of FPT, said that the overwhelming response reflected the confidence investors had in Frasers Property Thailand.

The company will continue to grow its property platform in Thailand and extend its footprint through JV investments and strategic partnerships, Sopon said, adding, the funds from the debenture issuance will be used to support FPT’s capital expenditure and business operations.

At an extraordinary meeting of shareholders, Nok Airlines Pcl decided to increase the company’s registered capital from Bt3.408 billion to Bt4.197 billion, as well as issue 888,147,358 ordinary shares at face value of Bt1 per share to existing shareholders on rights basis at the ratio of one new ordinary share for 3.5 existing ordinary shares. The offer price is Bt2.50 per share, with combined value not exceeding Bt2.22 billion. The shares are expected to be offered from February 3-7.

Nok Airlines chief executive officer Wutthiphum Jurangkool said the company expects to raise Bt2.2 billion from the rights issue, which will turn the shareholders’ equity from negative Bt659 million (as of September 2019) to positive. “We also expect that this move will help remove the ‘C’ [caution] letter from our [shares’] status,” he added.

Currently Thai Airways International (THAI) holds 15.94 per cent of Nok’s shares and remains the major shareholder. Wutthiphum said he had already presented the fundraising plan to THAI.

“As for the business plan this year, we are still focusing on a turnaround strategy by using software technology to manage the cost, and positioning ourselves as an on-time airline,” he said. “Furthermore, we will continue buying fuel via THAI at a competitive price, which should help in overall cost reduction since fuel is responsible for 30 per cent of total cost.”

Wutthiphum added that next month he will present the 2020 fleet plan to the board of directors. “This year we expect to buy a maximum of three new Boeing 737-800s to cover two new destinations in Asean, which will open around mid-2020,” he said. “Currently we have 16 737-800s and eight Q400s.”

The British public deserve to have access to the best possible technology,” Johnson said when asked about Huawei in a BBC TV interview on Tuesday. “We want to put in gigabit broadband for everybody. If people oppose one brand or another, then they have to tell us what’s the alternative.”

The U.K. for months has been debating how much, if any, access to grant Huawei to its broadband market in the future amid the suggestion the U.S. may be more wary of sharing intelligence if it uses Chinese equipment. Senior U.S. officials visited London on Monday with a last-ditch plea that the U.K. should bar Huawei from providing the kit, warning again that intelligence-sharing could be at risk.

Supporters argue that the company’s equipment can be used in non-core areas in a way that keeps the networks secure. But the U.S. warns that the effects of the leap to 5G technology are so poorly understood that the safest and best solution is to keep the Chinese company out altogether. Huawei denies it poses a spying risk.

“We are confident that the U.K. government will make a decision based upon evidence, as opposed to unsubstantiated allegations,” Huawei Vice President Victor Zhang said in an emailed statement on Tuesday. “Two U.K. parliamentary committees concluded there is no technical reason to ban us from supplying 5G equipment.”

The U.S. delegation, led by Deputy National Security Adviser Matthew Pottinger and including officials from the State Department, argued that there was no way the U.K. could mitigate the security risks from such a network, according to a person familiar with the meeting. Johnson showed he’s alive to the U.S. concerns.

Prejudicing Security

“Let’s be clear, I don’t want as U.K. prime minister, to put in any infrastructure that is going to prejudice our national security or our ability to cooperate with ‘Five Eyes’ intelligence partners,” he said, a reference to the U.S., Canada, Australia and New Zealand.

As some Huawei gear has already been installed, companies warn that a full ban would delay the roll-out of 5G and cost hundreds of millions of pounds. It would also potentially put into doubt Johnson’s pledge to deliver 5G to most of the country by 2027.

U.K. newspapers reported Monday that Pottinger’s team had handed Johnson’s government a “dossier” of evidence against Huawei.

But it may not impress. Speaking in September on condition of anonymity, British intelligence officers said there was nothing the U.S. knew about the company that Britain did not. Andrew Parker, the head of the domestic Security Service MI5, told the Financial Times this month that he had “no reason” to believe intelligence-sharing with the U.S. would be harmed by a decision to allow Huawei in.

Johnson’s spokesman on Monday told reporters that a decision would come “in due course.” The U.S. believes that with the general election out of the way, it is imminent.

The road to a U.K. decision has been long and controversial. Some officials have pushed for tough restrictions as a result of concerns over foreign involvement in critical national infrastructure, while others said this would saddle the telecommunications industry with extra costs and delay technological upgrades.

So-called 5G, which stands for fifth-generation wireless technology, promises speeds as much as 100-times faster than current 4G networks, potentially unlocking new technologies, including automated factories.

Huawei has become a lightning rod for tensions between the U.S. and Europe over trade and security policy as Washington threatens reprisals against any governments that allow Chinese equipment to form part of the crucial ultra-fast networks.

Of the so-called Five-Eyes intelligence-sharing nations, New Zealand, Australia and the U.S. have effectively banned the company, while Canada and U.K. have not so-far followed suit.

“This is a crucial time for Boeing,” he wrote. “We have work to do to uphold our values and to build on our strengths. I see greatness in this company, but I also see opportunities to do better. Much better.”

Calhoun’s top priority will be convincing federal regulators that the 737 Max is safe to fly. The plane has been grounded worldwide since March. Boeing also is counting on Calhoun to rebuild relationships with customers, regulators and the public.

That will be a formidable challenge in the wake of more than 100 pages of internal communication released late last week that painted a picture of a company disdainful of regulators, its customers and even of its own workforce.

In one exchange, an employee wrote that the 737 Max was a plane “designed by clowns supervised by monkeys.”

The communications also showed Boeing aggressively pushing back against simulator training for 737 Max pilots. The fact that pilots could be trained on iPads rather than in costly simulators was a major selling point for the newest version of the Max jet.

Last week, however, the company abruptly reversed itself, saying that all pilots should take part in simulator training.

The company apologized for the communications.

Calhoun’s tenure has already drawn fire from lawmakers, who criticized the company’s board of directors for offering the former GE executive a $7 million bonus for reaching a number of milestones, including returning the 737 Max to service.

In a letter sent Monday to Democratic Sens. Edward Markey of Massachusetts, Richard Blumenthal of Connecticut and Tammy Baldwin of Wisconsin urged Boeing’s board of directors to cancel the bonus.

“This payment represents a clear financial incentive for Mr. Calhoun to pressure regulators into ungrounding the 737 Max, as well as rush the investigations and reforms needed to guarantee public safety,” the senators wrote. “We believe that this bonus would be unconscionable in the face of two tragic plane crashes and proof that Boeing has not learned its lesson.”

The company said Friday that Calhoun will receive a compensation package valued at $28 million, which includes the $7 million bonus. Boeing’s previous CEO, Dennis Muilenburg, was fired in December. The company said Muilenburg forfeited a $14.6 million severance package, but will receive $62 million in stock and pension benefits.

The newest version of the company’s best-selling jet has been grounded for 10 months after two of the planes crashed within months of each other. The company had hoped to win the approval of the Federal Aviation Administration to return the plane to service in December. Some reports have indicated that the plane could be recertified in February, but the FAA has indicated that there is no set timeline for ungrounding the jet.

U.S. airlines have repeatedly adjusted flight schedules to accommodate the grounding.

On Tuesday, American Airlines, which had previously said it expected to resume 737 Max flights in April, said it was now removing the plane from its schedule until early June. That matches a timeline announced by United last month.

“American Airlines remains in continuous contact with the Federal Aviation Administration, Department of Transportation and Boeing,” the airline said. “Based on the latest guidance, the airline anticipates that the resumption of scheduled commercial service on American’s fleet of Boeing 737 Max aircraft will occur June 4, 2020. Once the aircraft is certified, American will run flights for American team members and invited guests.”

Southwest Airlines, which has 34 Max jets in its fleet, the most of any U.S. carrier, has not said whether it will change its previously announced plan to resume Max service in April.

“Many of our stakeholders are rightly disappointed in us, and it’s our job to repair these vital relationships,” Calhoun wrote. “We’ll do so through a recommitment to transparency and by meeting and exceeding their expectations. We will listen, seek feedback, and respond – appropriately, urgently and respectfully.”

After three months in the position, Scharf made his debut before Wall Street analysts Tuesday to report another disappointing quarter for the bank. During the fourth quarter, its profit fell 50% to $2.9 billion compared with the same period a year ago. For all of 2019, profits fell to $20 billion compared with $22 billion in 2018. Revenue fell 5% during the quarter and 1.5% for the year.

“Our results are not as strong as we aspire to,” Scharf said told analysts during a more than hour-long call.

Scharf said he had spent “almost all of [his] time,” so far, addressing the regulatory headaches that have dogged Wells Fargo since it admitted opening millions of accounts that customers didn’t want. The bank had made “terrible mistakes,” he said, adding, “I don’t have all the answers yet.”

The company took a $1.5 billion charge during the quarter for legal costs associated with the scandals, helping drag down financial results, which were also hurt by low interest rates.

The company’s stock fell 4% as Scharf spoke to about $50 a share.

Once the country’s largest and most profitable bank, Wells Fargo is now falling behind some of its competitors. JPMorgan Chase on Tuesday reported that its net income jumped 21% to $8.5 billion for fourth quarter and 12% to $36 billion for the year — a record. Citigroup’s revenue and profits jumped 7% and 15% respectively during its most recent quarter.

Meanwhile, Wells Fargo is still struggling to overcome the backlash from a series of consumer abuses – from opening millions of fraudulent accounts on behalf of its customers without their consent to mistakenly foreclosing on hundreds of clients and repossessing the cars of thousands of others.

The bank has already paid billions in fines and settlements, and overhauled its board and management but still failed to win over its critics. Most recently, Rep. Katie Porter, D-Calif., a vocal industry critic, has accused Wells Fargo of attempting to pass on the costs associated with its scandals to third parties. And Rep. Maxine Waters, D-Calif., chair of the House Financial Services Committee, told Politico recently she would pay “special attention” to the bank this year and may have its board of directors come testify before Congress.

“Wells Fargo continues to claim that the bank is working to restore consumer confidence and do better, after years of major scandals. But I haven’t seen any evidence of a shift in the bank’s predatory tactics,” Porter said in a Twitter post last week.

Scharf came to the job with deep financial industry connections, including serving as chief executive of Bank of New York Mellon and Visa, but some analysts have questioned how long it would take him to master the complexities of a bank with nearly $2 trillion in assets, more than 200,000 employees and operations across the country, while facing growing competition from Silicon Valley and criticism from Capitol Hill.

“Wells Fargo has been in Washington’s policy crosshairs for longer than just about any other financial firm,” Jaret Seiberg, an analyst with Cowen’s Washington Research Group, said in a research note. “As soon as it appears to move beyond one controversy, another one seems to erupt.”

During the call Tuesday, Scharf acknowledged that turning around the bank would be a lengthy process. “I’m not sure that any of these public issues will be closed this year,” he said.

Analysts have said of Scharf’s biggest challenges will be convincing the Federal Reserve to lift a cap it put on the company’s growth in 2018. But Scharf said the company’s challenges are much bigger.

“Our regulators are clear, direct, tough, but fair,” he said. But “we have 12 public enforcement actions that require significant resource commitment.”

Scharf has already made some changes. He named former Obama administration chief of staff Bill Daley as vice chairman of public affairs. Scott Powell, the former chief executive of Santander Holdings USA, was named chief operating officer with a focus on addressing the bank’s regulatory issues.

The bank is also reviewing all of its business lines and looking to lower costs, Scharf said.

“While there is much to do and I know the path to success will be bumpy, I’m optimistic about our future,” he said.