CP Group ahead in bid for Bt224-bn high-speed rail link project

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CP Group ahead in bid for Bt224-bn high-speed rail link project

Corporate December 15, 2018 12:22

By The Nation

A joint venture led by CP Group may be the front-runner in bidding for the Bt224 billion project to build a high-speed rail link between three international airports with the best offer in the third stage of bidding.

Warawut Mala, acting governor of the State Railway of Thailand (SRT), said CP Holding’s joint venture proposes to seek government subsidy for the construction cost of less than Bt119 billion, while the BSR Group, led by Bangkok Mass Transit System (BTS), sought a subsidy higher than Bt119 billion.

The high-speed rail link is to connect Don Mueang, Suvarnabhumi and U-tapao airports.

Warawut said the BSR Group has not been ruled out of the bidding yet as the third-stage offer from the CP joint venture still has some questions regarding to financial affairs that need to be clarified.

Warawut added that the offer from BSR Group was clear and did not need clarification, although it asked for a construction cost subsidy higher than the ceiling.

Warawut said the SRT summoned the CP Group to clarify the financial information. But since the joint venture has China Railway Construction Corp as a major partner, CP has yet to consult the Chinese firm before meeting the SRT.

Warawut said the CP group has asked for time to meet SRT no later than December 21.

Warawut added that if the CP joint venture fails to clarify the financial information and if the SRT fails to negotiate with BSR Group to lower the demanded subsidy, the bidding will be reopened.

However, if the CP Group manages to clarify the information, it will be allowed to proceed to the fourth-stage of bidding.

Fit to LEAD

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Songtham Phianpattanawit
Songtham Phianpattanawit

Fit to LEAD

Corporate December 15, 2018 01:00

By JIRAPAN BOONNOON
THE NATION WEEKEND

2,491 Viewed

SONGTHAM Phianpattanawit’s many years on the badminton court taught him the importance of keeping on his toes. And so it was when the aspiring national team representative missed the cut on selection, he made a strategic pivot from the net to the classroom.

Songtham put behind him that disappointment of not realising his childhood dreams on the national stage of badminton and opted to study computer science in the United States.

It was a decision that has paid off for Songtham, who has since risen to become executive director of IOT Business Group at True Corporation.

Songtham, who had enjoyed success for many —years on the court with his badminton club in Chon Buri, left for Alabama to make good on his ambitions for a career in technology. After graduating with a bachelor of science (computer science) from the University of South Alabama, he returned to Thailand looking for an entry-level job.

“I had chosen to study computer science since I did not want to read textbooks all that much,” he recalls. “I always liked mathematics more than reading textbooks. After I graduated and came back to Thailand, I submitted application forms for work with every IT business located in Silom Road and other areas.”

IBM invited him in for an interview and his salary expectations for a raw recruit had been low, at around Bt10,000 a month. He was pleasantly surprised when he was told that the starting salary at the US technology giant was Bt15,000 a month.

What followed was a two-decade rise through the ranks that saw Songtham serve as country general manager and managing director at IBM Thailand from 2001 to 2003.

He says that during his time at IBM – working as an “IBMer” as he and his colleagues called themselves – he gained experience in every department and business unit. He had been keen to gain an understanding of how every business department worked as took on increasingly senior executive roles in the organisation.

Songtham went on to work his way up over 20 years to reach the post of managing director at IBM Thailand. It was then that Suphachai Chearavanont, group chairman of the executive committee of True Corporation, invited him to join True Multimedia as a director in 2003.

“I had worked at an international company for 20 years. I thought that, as I am Thai, I should create value for a Thai company or Thai business. I also thought of it as a challenge for me to manage and reorganise the business at True,” Songtham says. “I am an athlete that likes a challenge and joining True presented just such a challenge.”

In his first year at the company, Songtham served as a director at True Multimedia, which provides IT services and solutions to support private sector, state enterprises and government agencies. The firm had gained revenue of around Bt6 billion. For this year, with him serving as executive director of IOT Business Group at True Corporation, he says the company has pulled in around Bt13 billion from about 5,000 businesses.

“I have been working at True for many years and the revenue from IT services and IT solutions is still enjoying continuous growth,” Songtham says. “We also set up a new S-curve business to support the private sector, state enterprises and public sector in their efforts to transform themselves and improve their businesses and organisation in the digital era.”

He says the company has also set up True digital group to run the S-curve business, which covers seven areas: Big Data and analytics, Internet of Things (IoT) platform, cyber security, blockchain, digital advertising, smart retail with smart vending machine to be rolled out nationwide and robotics.

Songtham says the company is on the lookout for promising startup and other businesses in Thailand and abroad for possible investment in terms of mergers and acquisitions and joint ventures in order to expand the business.

As part of his efforts to better get to know his team, Songtham takes his lunch at the staff canteen every day. He also either rides the MRT system to work or drives in by himself. Throughout his career he has never neglected exercise and keeps up a fit

ness routine in the morning at the office as well as playing guitar to help relax before his hectic schedule of meetings.

On the weekends you can find him riding his bicycle with his two children and friends.

As for the secrets to his success, Songtham has utilised transfer knowledge as well as other forms of know-how such as those relating to commissions, process management, mobile office and a creed of business ethics from his time at IBM. He has implemented these practices at True.

Songtham, looking back on his time at IBM, says he had been responsible for 20 middle-level executives and had created a business with revenue of Bt500 million. He recalls with pride how that made him feel happy and successful.

Now, he is responsible for more than 1,000 employees. He says he will step down when the True Digital Group businesses have bedded down sustained growth and when business such as the IoT operation can achieve revenue of Bt500 million and True digital group can reach Bt1 billion. He expects this to happen by the end of next year.

“True is a big company and covers various business areas. It is stimulating to collaborate with people in each of the business areas as we support each other,’ Songtham says. “I also have a passion to give opportunities to my staff and the new generation of workers.

“I am happy when my workers and team members enjoy success and rise up. This means that I have to manage the business and the organisation in the right way. I think that I have had the kind of success that has exceeded my expectations.”

As for the future, he will pursue a dream to set up an academy for the transfer of knowledge and know-how in order to enhance IT literacy and support the goals of the technology-boosting Thailand 4.0 scheme.

Bangchak Corporation gets ‘A’ rating

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Bangchak Corporation gets ‘A’ rating

Corporate December 14, 2018 17:36

By The Nation

TRIS Rating has assigned an “A” rating to Bangchak Corporation (BCP) and BCP’s existing senior unsecured debentures, the company said in a press release on Friday.

At the same time, TRIS Rating has assigned the “A” rating to BCP’s proposed issue of up to Bt7,000 million in senior unsecured debentures. The assigned issue rating has replaced the rating of the proposed issue of up to Bt5,000 million announced on December 6, 2018, as the company decided to increase the bond size.

The proceeds from the new debentures will be used for refinancing, working capital, and business expansion.

The company said the ratings continue to reflect BCP’s long track record in oil refining and marketing businesses, its leading market position in the oil retailing business, and its diversification into green energy businesses. The ratings are partially offset by increasing leverage due to the company’s investment plan for the upgrade of its refinery and the expansion into new businesses.

SEAC plans to invest Bt600m to help drive Thailand forward

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Arinya Talerngsri, Chief Capability Officer
Arinya Talerngsri, Chief Capability Officer

SEAC plans to invest Bt600m to help drive Thailand forward

Corporate December 14, 2018 16:39

By The Nation

2,069 Viewed

SEAC, a leading executive, leadership and innovation education center, plans to invest more than Bt600 million in marketing strategies that focus on the use of data for the development of services, the company said in a press release on Friday.

The company also said it is focusing on “4Line Learning” which is considered to be the most effective learning approach with the launch of its first model “YourNextU”.

The company believes it can increase its customer base by 300 per cent by year-end and the business growth of over 100 per cent.

Arinya Talerngsri, Chief Capability Officer & Managing Director of SEAC (South East Asia Center), Asean’s first and only lifelong learning centre, said: “With our determination to develop and elevate modern organisations in order to catch up with the changes in the new millennium through our programmes and thinking process related to Leadership and Innovation, we have received positive feedbacks from both public and private leading organisations in the country which also include banking and finance, real estate, FMCG, energy and healthcare businesses, to name only a few.

“Altogether there are 30,000 people taking up the programmes with 40 service offerings. Currently, SEAC has a major business plan to bring us to the next level by becoming Asean’s first and only lifelong learning centre under the belief that every human being has a potential to develop and learn at any stage in their life. This is an important step for SEAC to infuse people with a lifelong learning mindset and curiosity to discover boundless possibilities and build lifelong learning ecosystem and culture for Thailand and Asean.

“With 27 years of experience, we are aware that many people do not fully understand and are not able to distinguish between the context of learning and studying, making it difficult for them to access true learning methods that could help them reach their potential. Some are entangled in their own traps to the point that they believe they do not require further learning and development. Therefore, it is the responsibility of SEAC to create a turning point by offering a new “learning” alternative and to go full speed towards building public awareness and setting a strong foundation to change people’s mindset.

“We are to change people’s attitude that once associated life success only with high academic degrees and turn such a thought into a New Learning Mindset under the Lifelong Learning Concept wherein learning continues at all stages in their life. The world is changing rapidly, so people should never stop learning new things or acquiring new skills.

“Our programmes are to expand to more people, whether they’re in the work force looking to developing new skills to advance their careers, fresh graduates discovering their own selves to build their own future, or even operators of small- and medium-sized businesses looking for stability.”

Arinya added: “With our experiences in learning and human development, SEAC has created a highly effective learning approach called “4Line Learning” in order to meet the requirements of each individual while at the same time, to stimulate their desire to learn and apply what they learned to their life and work amidst aggressive changes.

“The learning approach comprises of four major components. First is ‘online learning’ which focuses on learning through video clips and visuals. Second is ‘Inline learning’ where learners are encouraged to participate in classes and courses, arranged at a suitable duration – mostly short – of no longer than half a day. Third is ‘Beeline learning’, underlining experience and data exchange with experts, speakers, prominent business operators, thought leaders as well as through special activities that best suit each learning topic, and fourth, ‘Frontline learning’ where learners are allowed a full access to downloadable materials and data.

“In this initial step, SEAC is collaborating with the world’s leading institutes in setting up a learning curriculum entitled “YourNextU” which comprises over 100 Online Learning courses, 40 Inline Learning programmes, 40 Beeline Learning activities and Frontline data archive allowing unlimited downloads. The programmes include, but not limit to, Design Thinking: Empathising to Discover Opportunities, Creative Connection: 7 Creative Problem-Solving Strategies, New Me New Land: Overcoming Change Resistance, The Outward Mindset: Seeing Beyond Yourself, Strategic Thinking: Business Modeling, Step In Leader: Problem Solving & Decision-Making or HR Academy.

“Also, there are courses that have been set up to catch up with the world such as Business Management 4.0, Data Analysis, Artificial Intelligence and Machine Learning, Cloud computing and Web Service, to name only a few. All these are expected to be officially implemented by February 2019.”

In terms of investment, SEAC has invested in over Bt600 million covering the development of a learning platform which incorporates the “4Line Learning” approach that will be consecutively updated over the course of 3-5 years, the search for world-class partners for the development of the courses and curriculum to fulfil all aspects of learning for all age groups, translations of contents into Thai and selected Asean languages as well as the construction of the lifelong learning centre.

The company said its marketing strategies embody Personalised Marketing, paying attention to data and the development of Learner Persona so that courses created perfectly meet the demand of learners and at the same time are able to catch up with the fast moving world. “At the beginning, we will target towards the organisational level both in Thailand and Asean and will also spread out our message to create perception and awareness to draw attention from those who are interested and have the passion for learning and development to join SEAC in the future. We are certain that SEAC will generate 90,000 clients and a business growth of over 100 per cent by 2020,” the company said.

LoxSim enters Mekong Subregion market

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  • Wansit

LoxSim enters Mekong Subregion market

Corporate December 14, 2018 16:15

Loxley Simulation Technology(LoxSim) and Mekong Institute (MI) joined in a new collaboration which aims to promote the usage of “Green Logistics” through utilization of a new environmental friendly state of the art training technology for the Greater Mekong Subregion.

Wansit Chatikavanij , chief executive officer of LoxSim, unveiled a new collaboration between Loxsim) and MI on developing truck drivers, logistic, and supply chain managers knowledge development on economic driving and green freight in the GMS; Cambodia, Laos, Myanmar, Vietnam, Thailand and Yunnan of China.

The new Memorandum of Understanding is a two-year collaboration of knowledge sharing and research collaboration on Truck Driving Simulator to enhance logistics and supply chain knowledge for companies focusing on “Fuel-efficient driving” “safe driving” and “environmentally friendly” concepts, according to its press release.

“Fuel-efficient driving techniques” will allow fleet managers and drivers to understand different ways to become more efficient and environmental friendly especially in reductions of fuel consumption and the release of carbon dioxide through better driving habits and mindset.

In keeping with the principle of eco-driving and green logistics, change in driving behaviours, operating within the speed limit to avoid harsh acceleration and specifically harsh braking will ultimately result in more efficient fuel consumption and fewer damages to the vehicle. In addition, this techniques and mindset, green logistics education will in turn help to support the environment through reductions of excessive carbon emissions.

Wansit said the current collaboration with MI will serve also as the first step towards regional market opening, which includes encouragement and education for entrepreneurs in Thailand and neighboring countries on awareness regarding to Green Logistics.

“Most operators focus on the technology of their vehicles, but forget that the key factor is the driver. Driving simulator can exposed drivers to dangerous driving conditions in a realistic, simulated virtual environment which would not be possible in real life. Thus, this solution is seen as a convenient tool for trainers to train at any time in a safe virtual environment”.

Wansit said, “Next year, LoxSim will begin to look at the medical emergency and disaster management market. Moreover, Loxsim will emphasize cooperation with various educational institutes by bringing in new simulator technologies to produce research for further improvement of both professional training and education.

Bangkok Bank join in blockchaIn study

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Bangkok Bank join in blockchaIn study

Corporate December 14, 2018 01:00

By The Nation

Bangkok Bank is collaboratIng with leading global trade finance banks to develop Letter of Credit (L/C) service using Blockchain technology to increase efficiency at every step of the process.

Bangkok Bank Executive Vice President Ian Guy Gillard said that BBL is the only Thai bank to have joined the Voltron project with the R3 consortium to develop a Letter of Credit or L/C servIce.

This important financial service in the international trade system, using Distributed Ledger (DLT) or “Blockchain” technology, will revolutionise the whole international trade process and be a step forward for banks and international trade customers.

Bangkok Bank together with R3 and its partners co-launched the Voltron project at the SIBOS event in Australia In October.

The L/C service using the R3 CORDA DLT product will increase efficiency and reduce processing times for every step in the transaction starting from the request by an importer to issue an L/C to an exporter receivIng payments. Business customers will be able to reduce working processes in their companies and arrange transactions with trade partners and banks more easily.

In addition to the Voltron project, the bank is also working with the R3 consortium to develop its international trade service using CORDA in Marco Polo, which is a development of the Open Account Trade Finance service.

This emphasises the bank’s policy in introducing technology and innovation to continually develop its services.

New partnership offers Thai SMEs access to China

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Chan
Chan

New partnership offers Thai SMEs access to China

Corporate December 14, 2018 01:00

By   THE NATION

INTERNATIONAL Merchandise Exchange and Exhibition (IMX), a subsidiary of top Chinese conglomerate King Wai Group (KWG), signed a letter of intent (LoI) with Thailand’s Commerce Ministry to form a strategic partnership that will give 48,000 Thai SMEs immediate access to China’s one billion consumers.

The Chinese conglomerate was founded by King Wai Chan.

Under this cooperation, Thai SMEs will benefit from IMX’s first-of-its-kind solution that integrates bonded warehousing, merchandise exhibitions, port services, custom clearing and sales channels both online and offline.

IMX operates exhibition centres in Tianjin, Shanghai, Shenzhen and Chengdu, while its centre in Shanghai has been recognised by China as a permanent exhibition and trade platform.

IMX’s subsidiary kjt.com is also one of the very first cross-border e-commerce platforms in China. In its efforts to drive cross-border trade, the Chinese government has officially made kjt.com the first platform for e-commerce since the establishment of the Shanghai free-trade zone.

With IMX’s integrated trading platform, Thai products will have the potential to reach 1 billion people within two hours.

“King Wai Group follows the motto: ‘responsibility creates value, mission inspires people’,” said Henry Chan, vice chairman and group CEO of King Wai Group and president of IMX.

“In line with this vision, we are passionate about creating innovative solutions that empower people and businesses in the countries we operate, including Thailand.”

Since the first China International Import Expo (CIIE) was held in November, China has opened its market to foreign goods by implementing beneficial policies and offering preferential tax benefits.

It has also come up with policies that facilitate cross-border trade, such as increasing market access by cutting down the “negative list” and increasing cross-border e-commerce restrictions from 2,000 yuan (Bt9,500) per transaction to 5,000 yuan per transaction.

Recognised as a service point for foreigners in the Shanghai free trade zone, IMX became the first trading platform to benefit from China’s new policies and regulations.

According to the newly signed LoI, KWG will source high-quality products from Thailand with help from the Commerce Ministry’s Department of International Trade Promotion (DITP).

This will provide an excellent opportunity for Thai SMEs, considering that Thailand’s Internet economy is ranked No 2 in Southeast Asia, worth US$12 billion (Bt394 billion) in 2018 out of a regional total of $72 billion, according to a Google-Temasek report. The local Internet economy contributes 2.7 per cent of Thailand’s GDP.

In addition, IMX’s FTAX will provide an insight on taxes, allowing both Thai SMEs and Chinese buyers and sellers to make better decisions.

Banjongjitt Angsusingh, director-general of DITP, said the new deal will provide a welcome boost to the Thai economy.

“King Wai Group’s innovative cross border e-commerce platforms will increase Thai SMEs’ access to one of the world’s largest markets.

“This cooperation is a major tool to promote Thai products and services with Thailand’s Trust Mark, a symbol of quality. At the same time, this is a great opportunity for both parties to exchange knowledge and expertise that will boost trade collaboration between the two countries,” Banjongjit noted.

GHB Moody’s affIrms ratIng on foreign currency deposit

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GHB Moody’s affIrms ratIng on foreign currency deposit

Corporate December 14, 2018 01:00

By The Nation

Moody’s Investors Service has yesterday affirmed Government Housing Bank of Thailand’s (GHB) foreign currency bank deposit rating of Baa1/P-2.

At the same time, Moody’s has upgraded GHB’s Baseline Credit Assessment (BCA) and adjusted BCA to ba2 from ba3.

And, Moody’s has affirmed GHB’s local and foreign currency counterparty Risk Rating (CRR) of Baa1/P-2 and Counterparty Risk Assessment (CR Assessment) of Baa1(cr)/P-2(cr).

The outlook on GHB’s ratings is stable.

DR set for SET listing

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DR set for SET listing

Corporate December 14, 2018 01:00

By The Nation

The Stock Exchange of Thailand (SET)’s first depositary receipt, DR, representing a Vietnam exchange-traded fund (ETF), issued by Bualuang Securities pcl (BLS), will be listed on December 18 under the ticker symbol “E1VFVN3001”.

 SET President Pakorn Peetathawatchai said that Depositary Receipt or DR is an investment instrument that represents foreign company’s securities issued by the commercial banks or brokerage firms with approval of the Securities and Exchange Commission (SEC). DR enables Thai investors to have exposure in foreign assets easily through SET. DR trading could be conducted similarly to securities trading, as such providing convenience for all investors.

BLS Executive Director Pichet Sithi-Amnuai said the issued DR will represent VFMVN30 ETF, tracking the top 30 large-cap stocks listed on Hochiminh Stock Exchange. The DR’s initial public offering (IPO), held during December 3-7 managed to raise Bt624.39 million (approx US$19 million).

We expect more investment demand after it is listed on the SET.

Wait ends for airports link bidders

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Wait ends for airports link bidders

Corporate December 14, 2018 01:00

By The Nation

COMPANIES bidding for work on the country’s high-speed railway project will learn today who are the winners and losers in the hunt for potentially lucrative revenue streams.

It was also revealed yesterday that the State Railway of Thailand (SRT) expects to complete negotiations with the winning private-enterprise group within two weeks and a contract signing is proposed before the end of January.

Acting SRT governor Worawut Mala said that a meeting of a committee for the auction of the high-speed railway project will be conducted at 11am today to consider the financial proposals of the bidders, with government subsidies and other details to be taken into consideration. If no problems are encountered, the SRT will go ahead with negotiations with the winner, he said.

The high-speed railway will link three of the country’s busiest airports: Don Mueang and Suvarnabhumi international airports and U-Tapao airport in Rayong province.

 “The SRT is still adhering to the terms of reference. If any private enterprise proposes to receive less in government subsidies, it will be the winner [of the auction],” Worawut said. “If all eight elements [in the financial proposal] are inconsistent and the committee sees adjustment are required for such details, the private enterprise will be summoned to make clarification and explain the background.

“The private enterprise will not fail the bid or no other bidder will be considered in replacement. It will move into the negotiation process first.”

The eight elements of the financial proposals include backlog, business plan for the project, financial plan, funding plan for the project, property to be used in the project and property rights, financial returns throughout the joint investment contract, request for government subsidy and the amount the government receives from the private enterprise, and fare setting.

Worawut expects the negotiation process would take two weeks and the committee would then open the special proposal and consider whether to take it without any impact to the auction and proposed government subsidy.

The winning name is expected to be forwarded to the Cabinet for approval at a meeting in mid-January, with the a contract signing before January 31.

Supachai Chearavanont, chief executive officer of Charoen Pokphand (CP) Group, has expressed confidence over the auction, and is awaiting the committee’s considerations.

Earlier, he said that he was confident of the company’s bid prospects and looked forward to supporting the country’s infrastructure development.

CP Group and its allies formed a global consortium. Its strategic partners include Charoen Pokphand Holding, China Railway Construction Corporation Ltd, Bangkok Expressway and Metro Plc, Ch Karnchang (Thailand), Italian-Thai Development Plc, Japan Overseas Infrastructure Investment Corp for Transport & Urban Development and China’s Citic Group Corp.

Another bidder, BSR Joint Venture, includes BTS Group Holdings Plc, Sino-Thai Engineering and Construction Plc and Ratchaburi Electricity Generating Holding Plc.

Previously, a source close to the auction said that CP Group had proposed a lower price for the auction than that by BSR Joint Venture, by Bt100 billion.