THAI to seek Cabinet approval for acquiring 38 new planes

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THAI to seek Cabinet approval  for acquiring 38 new planes

Corporate May 08, 2019 01:00

By THE NATION

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THAI AIRWAYS International Plc (THAI) expects to this month propose to the Cabinet its project to procure 38 new aircraft at a total cost of about Bt156 billion.

The procurement plan has already been forwarded by the National Economic and Social Development Board (NESDB) to the Ministry of Transport, THAI president Sumeth Damrongchaitham, said. The ministry in turn is expected to propose the matter to the office of secretary-general of the Cabinet within this week and then to the Cabinet within this month.

The procurement would be in two phases. About 25 new aircraft will be purchased in the first phase and 13 in the second phase. Of the total, 31 new aircraft would be used to replace older planes that will be gradually decommissioned over the next 10 years, while the remaining seven planes will be assigned to new routes in the future. Meanwhile, THAI is planning to open the Bangkok-Sendai (Japan) route this November, due to Japan’s growing popularity as a destination for Thai people.

Recently, Manchester airport, the UK’s fourth busiest airport by passenger traffic, met officials from THAI about increasing direct flights. Thai tourists have been travelling to the north of the United Kingdom, but experience some difficulty in obtaining visas to the country, said Sumeth. The airport authority will seek solutions to the visa-approval problem.

In regard to a solution to the Rolls-Royce engine problems that have affected six to seven of the airline’s planes, THAI is now negotiating with the British jet engine manufacturer for compensation.

The airline has hedged against global oil price fluctuations and has adjusted its ticket prices to reflect actual costs. But the Thai flagship airline has taken a cautious approach to adjusting ticket prices, given the high competition, and it believes now is not the right time to raise ticket prices. Sumeth, who is also chairman of Thai Smile Airways, said he has assigned both companies to connect their policies, merge administrative centres for cost reduction and have separate service and aviation sections without reducing staff.

“Merging the centres will allow connectivity of overseas routes of Thai Smile and THAI, to facilitate passengers’ transits in the country and abroad. Thai Smile is expected to have satisfactory performance at the end of this year, thanks to new cost management and resource sharing,” Sumeth said.

Meanwhile, THAI has reported total revenue of Bt200.58 billion, and a net loss of Bt11.62 billion for 2018 year-end, higher than its Bt2.10 billion net loss in 2017.

State office plans to give digital boost to SMEs

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State office plans to give digital boost to SMEs

Corporate May 08, 2019 01:00

By Jirapan Boonnoon
The Nation

The Office of Small and Medium Enterprises Promotion (Osmep) expects to develop 200,000 digital small and medium enterprises (SMEs) by the end of this year.

According to Cisco, Thailand ranked 11th on the Asia Pacific SMB (small and medium businesses) Digital Maturity Index.

Osmep director Suwanchai Lohawattanakul said that SMEs have to transition their businesses into digital SMEs. The Office has collaborated with Cisco to provide training courses related to digital business and digital transformation to the SMEs. The office aims to develop 200,000 digital SMEs by the end of this year. It also will provide e-commerce training to support the SMEs.

“Thailand now has around 3 million SMEs nationwide. Around 2.3 million can be classified as micro-SMEs. Osmep expects that the revenue of SMEs will make up around 43 per cent of the country’s total GDP by the end of this year,” said Suwanchai.

He said the Office this year has a budget of around Bt1.2 billion to develop SMEs nationwide. It expects that it would be able to help SMEs gain around Bt4.8 billion in revenue by the end of this year.

Vatsun Thirapatarapong, managing director, of Cisco Thailand, said that the collaboration will help SMEs run their business smoothly using the Cisco START solution, which would help SMEs with digital transformation. The training course in the first step will focus on manufacturing and retail businesses.

He also said that research firm IDC has created an Asia Pacific SMB Digital Maturity Index.

The index was developed by IDC based on an independent survey of 1,340 respondents across the 14 major economies in the Asia Pacific region. Thailand also ranked No 11, looked at digital maturity of SMBs across four business dimensions: technology adoption and application, digital transformation strategy and organisation, processes and governance, and the capability to source, manage and retain the right talent to enable their digital transformation.

According to the survey, Small and Medium Businesses (SMBs) in Thailand are making initial technology investments in cloud, IT hardware upgrades and cybersecurity, as a large majority of them begin their digital transformation journeys.

Taking into account the four dimensions, SMBs in Asean, with the exception of Singapore, were classified into the “Digital Indifferent” stage of digital maturity. The stage is defined as being one where companies’ digital efforts are often reactive to market changes, rather than driven by a proactive tactical approach.

Having the right IT infrastructure in place is critical to meet the evolving needs of SMBs in Thailand and ensure long-term success. The SMBs recognise the importance and 12.1 per cent of respondents say they are investing in IT software hardware upgrades, he said.

However, SMBs in Thailand are also facing hurdles in their digital transformation. Respondents said they were being held back by the lack of insight into operational and customer data (17.9 per cent), lack of digital skills and talent (15.7 per cent), and the lack of a digital mindset or cultural challenges in the organisation (14 per cent).

“SMEs are very important to the economy. In 2018, some 3 million SMEs in Thailand created employment for 12.16 million people and contributed 43.2 per cent of the country’s GDP,” said Suwanchai. The adoption of the digital economy and utilisation of information technology will directly boost a significant number of new entrepreneurs in the market, enhance competitive advantages and remove market barriers, especially from the micro small and medium enterprises (MSME) sector – the backbone of the economy in most countries,” Suwanchai said.

“We help MSMEs in adopting digital technology and creating new business by offering them various programmes and schemes, including work at the regional level. Indeed, the most challenging and critical issue for many countries in Asean right now is the necessity for digital adoption of micro-enterprises. As a result, this year, when Thailand is chairing Asean, Osmep will organise Asean activities under the theme “Digitalisation of Asean Micro Enterprises”. Its objective is to enhance digital marketing channels for Asean micro-enterprises and formalising digitalised micro-enterprises” said Suwanchai.

MCOT, OKMD to build National Knowledge Centre

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MCOT, OKMD to build National Knowledge Centre

Corporate May 07, 2019 19:19

By The Nation

MCOT is to join hands with the Office of Knowledge Management and Development (OKMD) in building the National Knowledge Centre at the listed business’s plot of land in Bangkok’s Rachadaphisek area.

Located in a 20-rai (3 hectares) area adjacent to the Culture Ministry, the National Knowledge Centre (NKC) is expected to be the country’s biggest and most modern public educational venue.

MCOT president Kematat Paladesh and OKMD director Atipad Bumroong on Tuesday signed a memorandum of understanding on the development of the NKC.

The signing ceremony was chaired by Air Chief Marshall Prajin Juntong, deputy prime minister and justice minister.

Jirachai Moontongroy, director of MCOT and chairman of OKMD, said at the ceremony that as both MCOT and OKMD placed importance on human-capability development through the public-learning process, they had agreed to establish the NKC.

The centre will comprise an electronic library, a large outdoor learning area, seminar rooms and a big green leisure area.

Thailand Knowledge Park, which is a unit under OKMD management, will be moved to the NKC, too.

Prajin, deputy prime minister supervising the NKC, added that the centre represented a new dimension of modern education and a learning-tourism destination for people of all ages.

The centre will integrate national knowledge, strengthen creative thinking and create sustainable innovations in the country, he added.

“I strongly believe that the NKC will play an important role in sustainably enhancing the capabilities and life quality of Thai people, in accordance with the government’s policy on human-resource development,” the deputy PM said.

Midea Group launches inspiring short film “Good Night Paola”

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Midea Group launches inspiring short film “Good Night Paola”

Corporate May 07, 2019 17:57

By The Nation

3,798 Viewed

Baz –Nutthawut Poonpiriya directs a true story of Paola Antonini, a Brazilian model who lost a leg but not her dream #NoHeatCanBeatYourDreams

Midea teams up with talented director Nattawut of “Bad Genius” and J. Walter Thompson Bangkok to create an emotional story about Paola Antonini, a Brazilian model who lost her left leg in a car accident but never ceased to pursue her dream, according to its press release.

Produced by Houseton Film, “Good Night Paola” follows Antonini’s journey through her treacherous path towards becoming a model, starring Antonini as herself.

Through her story, Midea hopes to inspire consumers to overcome obstacles and reclaim power to pursue their dreams, according to the press release.

“We developed the short film based on the double definitions of ‘dream’. One is the literal ‘dream state’ that occurs at the final stage of sleep and can only be achieved via calm and comfort; the other is a metaphor for realizing ‘dreams’ in life,” said Pete – Thasorn Boonyanate, Creative Director of J. Walter Thompson Bangkok.

“We interlinked these two definitions with Midea residential AC’s commitment to providing consumers not only cooling comfort for a restful night, but also refreshing energy to power through real-life challenges.”

“The film ‘Good Night Paula’ is also part of Midea’s global campaign #NoHeatCanBeatYourDreams to encourage consumers to brave through any ‘heat’ in their lives in pursuit of their own ‘dream states’.”

Globally, people encounter different obstacles in pursuing their dreams, including social pressure, financial difficulties, and physical limitations. In Thailand, approximately three percent of population are people with disabilities1, who have been fighting for equal rights and opportunities to fulfill their dreams.

“The #NoHeatCanBeatYourDreams campaign aims to encourage our audiences to overcome obstacles for their cherished dreams.” says Tony Liu, General Manager of Midea Air Conditioner Business Unit. “Midea residential AC is always there to protect your ‘dream state’ through any source of ‘heat’ in life.”

Launched in Thailand, one of Midea’s key markets in ASEAN, this campaign will later be hosted in Latin America. The film can be viewed online at https://youtu.be/OtD0Z8o2P8Y. For more information about Midea Thailand, please visit https://th.midea.com/ and https://www.facebook.com/watch/?v=417891829002769

HomePro Q1 profits up over 13.73 % due to cost control, sales promotions

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HomePro Q1 profits up over 13.73 % due to cost control, sales promotions

Corporate May 07, 2019 16:10

By The Nation

HomePro, a strong presence in building materials and fully integrated home decoration, has seen a 4.10 per cent increase in first-quarter 2019 revenue of Bt652.68 million to reach total revenues of Bt16.55 billion. Net profit for the first quarter of 2019 was Bt1.41 billion, an increase of Bt171.37 million or up 13.73 per cent compared to the same period of the previous year.

The increase is attributed to controls to manage expenses, changes that ensure the product group competes with all groups, product development under the company brand, and continuous sales promotion activities.

Sales revenue amounted to Bt15.39 billion, an increase of Bt525.01 million or 3.53 per cent, which was due to the growth of same-store sales of HomePro and Mega Home businesses as well as sales growth from new stores from home businesses that HomePro launched in 2018.

“In the first quarter of 2019, the economy continued to expand at a lower rate compared to the same period last year,” Khunawut Thumpomkul, managing director of Home Product Centre PCL, said. “With support from private consumption from both the agricultural sector, especially the rising price of rice and non-agricultural consumption that continues to improve, which is partly due to being supported by government measures while the number of tourists remained stable. However, the country’s economic forecast in 2019 will grow at a slower rate from the previous year.

The company has rental income and other services in the amount of Bt657.95 million, an increase of Bt58.62 million or 9.78 per cent, resulting from increased rental income from rental areas in Market Village shopping mall and revenue from ”Home Service”  service fees.

The company’s gross profit for the first quarter of 2019 amounted to Bt4.03 billion, an increase of Bt178.34 million or 4.63 per cent compared to the previous year. For the gross margin per sales increased from 25.89 per cent in the previous year to 26.17 per cent as a result of the adjustment of product ingredients for sale in general products and increasing the profit margins of the Direct Sourcing product group, including the continuous improvement of product procurement plans for HomePro, Mega Home and HomePro businesses in Malaysia, with a better profitability rate.

Selling and administrative expenses reached Bt2.97 billion, an increase of Bt58.14 million or 2 per cent compared to the previous year. The main factors of the monetary increase are increases in salary, rental, repair and marketing expenses. However, the cost-to-sales ratio has improved by decreasing from 19.58 per cent in the previous year to 19.29 per cent, which is the result of efficient cost control and management.

“This quarter is still in accordance with the plan in place, with higher sales than normal from products for improving air quality, due to high pollution, especially in Bangkok, central and northern regions,” said Khunawut. “We organised various promotional activities, such as the HomePro Expo during March 15-24 2019, with overall sales at a satisfactory level.”

Dusit Suites Hotel Ratchadamri opens in prestigious Bangkok neighbourhood

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Dusit Suites Hotel Ratchadamri opens in prestigious Bangkok neighbourhood

Corporate May 07, 2019 15:22

By The Nation

Dusit International, one of Thailand’s leading hotel and property development companies, has opened the Dusit Suites Hotel Ratchadamri, Bangkok – its first all-suite property – amid one of the city’s most vibrant districts for business and leisure.

Located in the Baan Rajprasong building on a peaceful, leafy avenue opposite the green expanse of the Royal Bangkok Sports Club, only 100 metres from Ratchadamri BTS station, the rebranded property puts guests within walking distance of luxury malls, stylish restaurants and sophisticated nightlife, according to a company release on Tuesday. Bangkok’s central business district is only one station away on the Skytrain.

Comprising 97 expansive one- and two-bedroom suites, the elegant hotel is designed to provide the utmost in comfort and convenience for short- and long-stay guests alike.

“We are delighted to open the new Dusit Suites Hotel Ratchadamri, Bangkok and bring our unique brand of Thai-inspired gracious hospitality to this prestigious neighbourhood,” said Suphajee Suthumpun, group CEO, Dusit International.

“As this property is not too far from our flagship Dusit Thani Bangkok hotel, which is currently undergoing strategic redevelopment as part of the landmark Dusit Central Park project, it is ideally positioned to meet the needs of our existing customers while delighting many new ones too, keeping our brand top of mind in suitably elegant fashion.”

Following the temporary closure of Dusit Thani Bangkok in January this year, Dusit has already made several strategic moves to maintain brand presence in the local market by introducing new business units staffed by team members from its flagship hotel.

Dusit Hospitality Services Co Ltd introduced Dusit Events, a high-end catering service for corporate, government and social events, and Dusit on Demand, an on-demand housekeeping, engineering, banqueting, and/or stewarding service for businesses based in Bangkok. Both services have already drawn interest from several major clients.

In Q3 2019, DTC will also launch Baan Dusit Thani, a high-end restaurant, bar and coffee shop set within a traditional Thai house on Soi Saladaeng, Silom Road, Bangkok. This unique venture is set to serve signature dishes from Dusit Thani Bangkok’s most popular outlets.

Krungsri introduces easy ‘Pay with KMA’ on Facebook

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Krungsri introduces easy ‘Pay with KMA’ on Facebook

Corporate May 07, 2019 15:17

By The Nation

Krungsri (Bank of Ayudhya PCL) and Facebook have jointly launched the “Pay with KMA” feature to enable instant payment via Facebook Messenger.

Customers can enjoy the seamless payment experience where there is no need to switch screens or memorise account numbers to make transactions, according to a Krungsri release.

“The ‘Pay with KMA’ service is the latest channel that Krungsri has launched to enhance the payment experience with absolute convenience for KMA customers shopping on Facebook. All they need to do is press the ‘Pay with KMA’ button in Facebook Messenger to complete a transaction,” said Thakorn Piyapan, Krungsri head of Krungsri consumer and head of digital banking and innovation division.

“Krungsri is moving ahead with digital innovations to live up to our brand promise to ‘make life simple’ for customers. We capture the essence of different lifestyles of customers and deliver products and services that best suit their demands,” said Thakorn.

“Krungsri realises that social commerce businesses and the online shopping lifestyle have continuously expanded in line with the number of mobile application users. Thus, we are constantly on the move to further our digital payment solutions on all platforms to deliver superior experience for customers, which resonates with our target to achieve 5 million KMA users in 2019,” he added.

Axiata, Telenor merge Asian operations, eye Bt386 bn-plus revenue

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Axiata, Telenor merge Asian operations, eye Bt386 bn-plus revenue

Corporate May 07, 2019 01:00

By THE STAR
ASIA NEWS NETWORK
KUALA LUMPUR

THE proposed merger of Malaysia’s Axiata Group Bhd and Telenor ASA’s Asian operations in the Asean region and South Asia will create a global champion with proforma revenue of more than 50 billion ringgit (Bt386 billion).

Axiata said in a statement yesterday the new merged entity’s (MergedCo) earnings before interest, taxes, depreciation and amortisation (Ebitda) would be more than 20 billion ringgit. Telenor Group has a 49 per cent stake in Digi.com.

The new entity will control operations of subsidiaries in nine countries with a combined total population of more than one billion people and 300 million customers.

“With its unique portfolio, the MergedCo will be one of the largest telecommunications groups in the region in terms of value, revenue and profit, and with a strengthened balance sheet to support aggressive growth and expansion in the consumer, home, enterprise and IoT/artificial intelligence (AI) market segments,” Axiata said.

Additionally, the portfolio of controlled telecommunication operations shall comprise six countries with number one positions, two countries with number two positions and one market with third position within their respective markets.

Telenor holds an indirect position in DTAC Thailand, the country’s third-largest mobile operator, and has over 21 million mobile subscribers.

Separately, Robi Axiata Ltd, a subsidiary of Axiata operating in Bangladesh, shall continue to be managed independently by Axiata after completion of this proposed transaction.

Axiata said in bringing together assets from both parties, the proposed transaction has the potential to deliver up to around 20 billion ringgit of incremental value in synergies through consolidation of assets and organisations, economies of scale and scope, and complementary best practices of the parties.

“The proposed transaction aims to enable the MergedCo to bring together Axiata and Telenor’s Asian operations’ unique combination of scale, competencies and vast experiences in leading and managing emerging and frontier markets.

“The parties have also stated their stipulated intention to list the MergedCo on Bursa Malaysia [Malaysia’s stock exchange] and another major international exchange within the next few years.

“As a global champion, the MergedCo will now include a Malaysian champion, a global towerco, and the largest innovation centre in this region, all to be headquartered in Malaysia,” it said.

BDMS awarded for medical tourism for fourth year

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At the award presentation ceremony are Dr Nisarat Jaidee, left, assistant hospital director, BDMS, and Ratapong Amphanwong, deputy hospital director, Bangkok Hospital.
At the award presentation ceremony are Dr Nisarat Jaidee, left, assistant hospital director, BDMS, and Ratapong Amphanwong, deputy hospital director, Bangkok Hospital.

BDMS awarded for medical tourism for fourth year

Corporate May 07, 2019 01:00

By THE NATION

SEVEN regional medical tourism awards were won by medical group for the fourth consecutive year at the Global Health and Travel Awards 2019.

Bangkok Hospital, Samitivej Hospital, members of Bangkok Dusit Medical Services Plc (BDMS), were honoured with seven awards at The Global Health & Travel Award Ceremony 2019 recently held in Kuala Lumpur, Malaysia.

The annual contest aims to recognise companies in a variety of regional and global markets that have maintained consistently high standards in delivering quality care and pushed the boundaries to impress their customers at every stage and in every interaction.

“We are honoured to receive the Global Health & Travel Awards 2019 in seven categories this year, which recognised the hospital that maintained consistently high standards,” said Ratapong Amphanwong, deputy hospital director, Bangkok Hospital.

“These awards emphasised the hospital’s outstanding performance in terms of initiatives that can improve the way healthcare is delivered through areas such as leadership, technological innovation and medical services for patients from overseas with an international standard.”

Dr Nisarat Jaidee, assistant hospital director, BDMS, said, “We are excited and proud to receive two prestigious awards from Global Health & Travel this year.

This result couldn’t have been achieved without the support of a team fully dedicated and committed to serve its customers and patients. “We will continue to improve the standard of healthcare and customer value through all aspects,” added Nisarat, who is also director of Samitivej Referral & Assistance Centre.

Hilton launches eco-friendly coffee briques programme in Myanmar

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Guests and children taking part in the programme
Guests and children taking part in the programme

Hilton launches eco-friendly coffee briques programme in Myanmar

Corporate May 07, 2019 01:00

By THE NATION

HILTON HOTELS in Myanmar has launched a programme that turns waste coffee grounds into “coffee briques” that can be used for cooking and heating.

The simple steps to make coffee briques were demonstrated for the first time last Saturday at Hilton Mandalay, the first Hilton property in Myanmar to launch the programme.

Coffee briques are eco-friendly fuel alternatives to normal charcoal. Hilton is implementing the coffee briques programme as part of its long-term sustainability commitment in Myanmar.

“2019 is a milestone year for Hilton as we celebrate our 100th year. With the coffee briques programme, we aim to strengthen our commitment to corporate social responsibility for the benefit of the community. By recycling used coffee grounds, we are providing not just a cleaner energy solution but also minimising waste that goes to landfills or clogged waterways,” said Veronique Sirault, cluster general manager of Hilton in Myanmar.

More than 140 kilograms of used coffee grounds collected over two months have been dried, starched and moulded into briquette. These are now being used as an alternative to charcoal at Hilton properties.

The coffee briques are mainly used for grilling BBQ. Coffee briques are more energy efficient than charcoal because they contain carbon and coffee oil which produce the blue flame that has a higher temperature than charcoal. The coffee briques programme at the Hilton is held in cooperation with Diversey.

In Myanmar, charcoals and firewood are still the main source of fuel for cooking. By introducing the coffee briques programme, Hilton hopes to inspire local communities and companies to try making their own coffee briques or to find other alternative and more eco-friendly fuel.

Recycled coffee waste generates up to 80 per cent less emissions than if the grounds end up in landfill. The process of making coffee briques also does not require burning so there is less pollution.

“Deforestation is a leading cause of global climate change. This programme helps to reduce the use of charcoal and firewood in Myanmar. We hope to lead by example and inspire our staff and the local community to take simple steps to save Mother Earth,” Veronique added.

Hilton currently operates three hotels in Myanmar: Hilton Nay Pyi Taw, Hilton Mandalay and Hilton Ngapali Resort & Spa. The company has three hotels in the development pipeline which will open in Inle Lake, Bagan and Yangon over the coming years.