The two companies outbid US giant Chevron for rights to the huge Erawan and Bongkot gas fields after the Production Sharing Contract (PSC) method was used in the bidding process to find new investors and operators.

The current concessions for the Erawan and Bongkot fields, which expire in 2022-23, are held by Chevron and partners. Based on the PTTEP-Mubadala bids, Thailand will gain more benefits from the 10-year period during which the two firms will produce natural gas from the two fields, with discounts on gas prices estimated to reach Bt550 billion, or Bt55 billion per year. The new concessions will also yield more than Bt100 billion in royalties and other state benefits under the PSC method.

PTTEP said in a statement that it was ready to continue operating the Bongkot gas field and to become the operator of the Erawan field starting from 2022 so as to ensure continuity in natural gas supply for the country’s energy security.

PTTEP chief executive officer Phongsthorn Thavisin said the company has two decades of experience and know-how in both fields, hence the firm was confident it could produce natural gas in quantities of at least 700 million and 800 million cubic feet per day from the Bongkot and Erawan fields respectively, during the new PSC period.

“At the Bongkot field, where PTTEP is the existing operator, we are capable of investing immediately to deliver the committed production level, while we have a workplan and investment plan for the Erawan field during the transfer of operatorship. We expect good support from the existing operator, the Department of Mineral Fuels, and government agencies so that we can start the required activities immediately to ensure continuity of natural gas supply,” said Phongsthorn.

The Bongkot and Erawan gas fields are major sources of energy for Thailand with combined natural gas production that accounts for 60 per cent of the total domestic output.

Meanwhile, Chevron expressed disappointment at losing its multibillion-dollar bids for production at the two offshore fields. Prime Minister Prayut Chan-o-cha yesterday chaired a Cabinet meeting in the Northeast province of Nong Khai during which the PTTEP-Mubadala bids were approved based on PSC bidding, being used for the first time in Thailand.

The Energy Ministry is due to sign the contracts with the bid winners by the end of February next year. Bid evaluation was based on the natural gas price, profit-sharing ratio, bonuses and other benefits, as well as employment of Thai personnel.

Besides Chevron, Mitsui Oil Exploration Co Ltd was also involved in the bidding as equity partner of the US-based firm for both the Erawan and Bongkot fields. According to the Cabinet, bid winners PTTEP and Mubadala offered more benefits to the government as well as a big discount on the price of natural gas used for electricity generation.

Meanwhile, Praipol Koomsup, an independent economist who specialises in the energy sector, said PTTEP would face challenges investing in the Erawan field currently operated by Chevron.

Chevron is unlikely to make more investment because the current concession would expire in 2022, and this could have some impact on gas production. “So, PTTEP has to make sure that there would be minimal impact on the continuity of gas production at the Erawan field,” he said.

Energy regulator dismisses appeal

In a related development, Narupat Amornkosit, the secretary-general of the Energy Regulatory Commission (ERC), said the commission had |dismissed the appeal of Global Power Synergy Plc (GPSC), a subsidiary of |PTT Plc, to acquire Glow Energy Plc (Glow).

The commission said the merger and acquisition would have a significant impact on competition in the energy industry because the deal will reduce electricity producers to one company in the Map Ta Phut Industrial Estate, limiting competition.

The commission did not agree with GPSC’s argument that electricity production was a natural monopoly business.

The commission on October 10 blocked the merger deal estimated to be worth about Bt140 billion, arguing that it would hurt competition, but GPSC appealed the ERC ruling.

“The commission ruling to block the merger on the grounds that it would limit competition is in line with the law,” she said in the statement released yesterday.

Praipol, however, said he did not agree with the commission’s ruling. “Electricity production in Thailand is actually monopolised by the Electricity Generating Authority of Thailand [Egat], which generates almost half of the total electricity consumed, while other producers are small,” he said. Most independent electricity producers sell electricity to Egat and only a few sell directly to factories in industrial estates, so there is no logic to block the merger, Praipol argued.

Supported by more than 450,000 brands and merchants, Shopee said it recorded 48 million visits.

Shopee’s in-app game, Shopee Shake was played 46 million times, while the newly launched Shopee Quiz saw 11 million participants, the firm said.

In Thailand, health and beauty, home and living and mobile and gadgets were the most popular categories.

Since launching in 2015, Shopee is now in seven markets, achieving over 195 million downloads, it said.

The event is jointly organised by the Tourism Authority of Thailand and Iconsiam Superlux residence corporations with help from the Association of Chaopraya Commerce, Harbour Department, Siam Commercial Bank, True Corporation, Kasikorn Bank, Thai Shipping Association, Bangkok River Partner and Chaopraya Riverside Communities.

The event at the River Park Iconsiam will cover both banks of the river.

Yuthasak Supasorn, governor of the Tourism Authority of Thailand (TAT), said the celebration has several locations to promote Thailand as the ultimate destination for Thai and overseas tourists.

“It’s also an effective way to help stimulate the economy and distribute income to people in every region. More importantly, it supplements our effort to make tourism sustainable. This year we’ll organise the event in five different regions: Bangkok, Nakorn Panom, Chiang Rai, Rajburi and Satul,” Yuthasak said.

Fireworks will illuminate the Chaopraya.

“It is anticipated that over 1 million people shall attend the New Year celebration and substantial spending will keep the money flowing into our economy,” said Yuthasak.

Narong Chearavanont, chairman of Iconsiam Superlux Residences, said: “We are honoured to have been selected by TAT to organise the event. We are committed to making the New Year celebrations grand, impressive and memorable for all tourists.”

Pakdee Anivat, CEO and Founder of Storage Asia, said the company’s MOU signing with Thai Movers, the best moving service provider in Thailand to cooperate the “integrated moving and storage” service business.

There are four services for moving household effects of Thai Movers: Domestic Move, International Move, Packing material and Office Move.

The cooperation is to join the operational strength of both companies which leads to the cooperation of the new moving and storage service business by providing consultancy service, having mutual understanding with customers, moving, providing storing services following customers’ specific requirement of space and period, and providing moving services to the destination.

This is the first time there has been an integrated service provider for moving and storage. The customers can make direct contact with the company’s professional service providers via the website and email, or telephone.

“The business expansion of the company is to increase the operation efficiency to the Self Storage business of i-Store. The company determines to continue its integrated storage services with all aspects.

“The joint business expansion with the business partner is a way to improve the strength services and facilitation and confidence to the customers with services from the moving company of international standard. In addition, this places an emphasis upon the company’s being the leader of Self Storage business,”said Pakdee.

Kris Snidvongs, General Manager of Thai Movers, said that the company foresaw the opportunity of the moving and storage service business growth which had a high rate demand growth while the cooperation with i-Store would strengthen the potential to the business through the outstanding branch location situated within the Central Business District (CBD).

In addition, with the same group of customer base, this also helped support the market expansion with good response from the customers.

The business cooperation aims to achieve 200 new customers in 2019 from the services provided by i-Store and Thai Movers with the plan to extend the moving management services to i-Store’s storage rental areas as well as to provide services to new customers who are not i-Store’s customers in order to increase the ongoing growth of the business cooperation in the future.

IMX is a subsidiary of Chinese leading conglomerate King Wai Group (KWG) founded by Dr King Wai Chan.

In a press release issued on Thursday, the company said that under this strategic cooperation, Thai SMEs will benefit from IMX’s complete solution that integrate with bonded warehouse, merchandise exhibition, port services, custom clearing and sales channels both online and offline. The company operates four exhibition centers across China – Tianjin, Shanghai, Shenzhen and Chengdu. The Shanghai government has recognised IMX center as a 6+365 Permanent Exhibition and Trade Platform. At the same time, IMX’s subsidiary kjt.com is the leading and one of the very first cross-border e-commerce platform in China.

The Chinese government is vigorously driving cross-border e-commerce, the kjt.com is the first cross-border e-commerce platform officially approved by the State Council since the establishment of the Shanghai Free Trade Zone.

With the group’s integrated cross-border trading platform, Thai products will have the potential to reach one billion people within two hours.

“King Wai Group operates according to the motto that ‘responsibility creates value, mission inspires people,” said Henry Chan, Vice Chairman, 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 in which we operate, including Thailand.”

Since the first China International Import Expo (CIIE) in November, China has opened up the market for foreign goods by further implementing policies and preferential tax benefits, and policies that facilitate cross-border trades, including increasing market access by further reduction in “negative list”; increasing cross-border e-commerce restriction from 2,000 yuan per transaction to 5,000 yuan per transaction.

Being recognised as an official Foreigners Service Point of the Shanghai Pilot Free Trade Zone for the CIIE, IMX provides the most efficient and effective platform with easy market access to benefit from the new policy and regulations from Chinese government. SMEs can benefit from this platform and lower tariff.

“Considering China’s Belt & Road Initiative (BRI), the simplified import rules and regulations, Chinese President Xi Jinping announced the government’s forecast that China would import $30 trillion (Bt980 trillion) worth of goods in the next 15 years, we believe huge opportunities are waiting for Thai business operators,” said Chan.

Chan noted Thai products are highly regarded in China. “Thailand has high quality products loved by Chinese people,” he said. “When we combine our pioneering cross border e-commerce and supply chain business model with Thailand’s great products and benefits from new China’s tax and trade policy, we are about to create value to the economy, support the transformation into Thailand 4.0 and facilitate Thailand GDP growth. Especially, IMX will help drive Thailand GDP up by facilitating export growth. We wish to thank Thailand’s Department of International Trade Promotion and Ministry of Commerce for the enhanced cooperation that will benefit people and businesses in both Thailand and China.”

According to the newly signed Letter of Intent, KWG will source high-quality products from Thailand with assistance from Department of International Trade Promotion (DITP) under Ministry of Commerce in facilitating this strategic cooperation.

This provides excellent opportunities for Thai SMEs, considering that Thailand’ s Internet economy is ranked No. 2 in Southeast Asia, worth US$12 billion in 2018 out of a regional total of US$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 innovative FTAX will provide an insight on taxes, allowing both Thai SMEs and Chinese buyers and sellers to make better strategic decision and planning.

Banjongjitt Angsusingh, Director-General of Department of International Trade Promotion, said the newly signed deal will give a welcome boost to sales of local products in China. “King Wai Group’s innovative cross border e-commerce platforms will increase Thai SMEs’ access to one of the world’s largest markets, China.”

“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,” Banjongjitt noted.

The company said in a press release issued on Thursday that it will also rebrand TICON Management Company Limited (TMAN) to Frasers Property Industrial REIT Management (Thailand) Company Limited.

The new brands will align their identities with the rebranding of TICON Industrial Connection Public Company Limited (TICON) as part of TICON’s move to fully affiliate itself and subsidiaries with Frasers Property Limited (FPL).

The company said it is confident that this change will strengthen the performance and establish this REIT at an international level.

Peerapat Srisukont, Managing Director of TMAN, said: “At our board of directors’ meeting on December 12, 2018, we passed a resolution to change TREIT’s name to Frasers Property Thailand Industrial Freehold & Leasehold REIT and change TMAN’s name to Frasers Property Industrial REIT Management (Thailand) Company Limited.

“These affiliation with Frasers Property Limited, a multi-national company with well-established footprint globally to enhancing international credibility of our REIT, this will increase its potential growth and investment capabilities both in Thailand and overseas, in support of future expansion of Frasers Property Limited in Southeast Asia.

“The change of REIT name will be officially valid after an approval at our board of directors on December 12, 2018.

“As the REIT manager, we will keep our REIT management performance strong while leveraging the international expertise of Frasers Property Limited to strengthen our REIT management performance further and platform to become leading industrial REIT in Asian and leading status as the largest industrial REIT in Thailand, ready to rise as a leading industrial REIT in Southeast Asia,” Peerapat said.

The insurance company said in press release issued on Thursday that the lost time in Thailand compared to 49 days in Australia and 74 days in the Asian countries. The average yearly cost per organisation is estimated at Bt6,169,237.

The study also showed that poor lifestyle choices and mental health are issues for employees in Thailand, which can lower workplace productivity and increase the risk of developing a chronic condition.

The study showed that 39 per cent of employees in Thailand surveyed do less than 150 minutes of physical activity per week, and 45 per cent sleep less than seven hours, compared to around 10 per cent and 27 per cent in Australia respectively.

While just 1.2 per cent of employees in Thailand exceed recommended consumption limits of 14 units of alcohol per week (1 unit = 275-330 ml of beer or 100 ml. glass of wine) and almost 7 per cent are current smokers and more than 84 per cent of employees do not eat a balanced diet, the study said.

The study involved 146 organisations, representing a combined workforce of 7,539 employees across Thailand, the company said.

As for mental health, the survey found that almost half of employees interviewed are suffering from at least one facet of work-related stress, 5 per cent of employees have high levels of anxiety or depressive symptoms, and 27 per cent of employees noted they had a lot of financial concerns.

Meanwhile, Thailand reported a lower percentage of employees than Australia and the Asian countries at risk in the area of clinical health. Just 7.3 per cent of interviewed employees are obese (BMI equal to or higher than 30), which is lower than 17.4 per cent in the Asian countries and 17.6 per cent in Australia.

The study showed 83 per cent of employees in Thailand reported symptoms of one or more musculoskeletal conditions compared to 84 per cent in the Asian countries, among which shoulder and neck pain are the most common symptoms. In addition, 24 per cent of participating employees in Thailand reported one or more chronic conditions, compared to 30 per cent and 37 per cent in the Asian countries and Australia respectively. These chronic diseases include high blood pressure, diabetes, heart disease, and cancer.

Despite the findings, the company said the research demonstrates that Thailand’s employers are aware of the importance of workplace health interventions. A total of 93 per cent of employers have offered at least one health and well-being program or facility in the workplace, while 56 per cent of employees participated in at least one workplace intervention and indicated that the interventions positively impacted their health.

Tan Hak Leh, Chief Executive Officer of AIA Thailand, said: “We are glad to see a high participation rate in the ‘Thailand’s Healthiest Workplace by AIA Vitality’ survey this year, as this indicates that Thailand’s organisations see the value of improving their employees’ health and wellbeing.

“The survey, which reveals some concerns on the part of employees in Thailand about unhealthy lifestyle choices and mental health, resulting in a high productivity loss in organisations, demonstrates that employers should take proactive measures to improve or initiate their health promotion strategies and plans in order to create a healthier and more productive environment for their staff, which will ultimately enhance their organisations’ productivity.”

Aekkaratt Thitimon, Chief Marketing Officer of AIA Thailand, said: “The health and well-being of employees is very important in contributing to business success. To help employers develop a healthy and energetic workforce, AIA continuously initiates various health programs and activities for our corporate customers. We have also introduced an industry-first corporate wellness program called AIA Vitality for organisations. It offers fabulous incentives to encourage employees to adopt healthier lifestyles and achieve sustainable behavioural changes to enhance their productivity and deliver on our brand promise of helping Thais live healthier, longer, and better lives.”

The study was developed by AIA Group and delivered in partnership with RAND Europe since 2017. The survey examines data on employee lifestyles, clinical indicators, mental health, stress, and other areas of concern, with the objective of assessing the associated impact on health and productivity.

In 2018, the wider Healthiest Workplace survey, encompassing Australia, Hong Kong, Malaysia, and Thailand, involved the participation of 340 organisations representing a combined workforce of 24,187 employees. Thailand’s results are benchmarked against Hong Kong and Malaysia, (combined in ‘the Asian countries’ benchmark) and Australia.

The Healthiest Workplace by AIA Vitality also recognises excellence in workplace wellness across three award categories; Healthiest Workplace, Healthiest Employer and Healthiest Employees and three organisation sizes; Small (20-249 employees), Medium (250-999 employees), and Large (1,000+ employees). The winners of the first-ever Thailand’s Healthiest Workplace by AIA Vitality awards are:

Healthiest Workplace

• Small organisation – Public Health Center 16 Lumpini

• Medium organisation – WE Fitness Co., Ltd

• Large organisation – Phyathai Sriracha Hospital

Healthiest Employer

• Small organisation – PTT Polymer Marketing Company Limited

• Medium organisation – Grand Hyatt Erawan Bangkok

• Large organisation – Advanced Info Service Plc.

Healthiest Employees

• Small organisation – Public Health Center 16 Lumpini

• Medium organisation – WE Fitness Co., Ltd

• Large organisation – Phyathai Sriracha Hospital

The joint venture involves Kasikorn Vision (KVision) and Line Financial Asia. This is the third company involving Line in a joint venture with local bankers, following companies in Japan and Indonesia.

Patchara Samalapa, president of Kasikorn Bank, said that this move will use social banking to disrupt the traditional banking business. Currently, the Bank can claim Bt20 billion of Thailand’s Bt500 billion total market of unsecured personal loans.

The new JV company aims to also build a portfolio of Bt20 billion within the first three years after the service becomes available. The company also aims to capture at least 10 million users in the same period of three years time.

He the said loan service is available to Line users who open an account at Kasikorn Line Company with an initial loan of Bt10,000. The loan interest rate will vary depend?ing on the applicant’s behaviour data, and the company will draw on many data sets in reviewing the loan application.

The service will be available by the second half of 2019.

‘It is not just about the API (application program interface) but rather to bring a full banking service onto the social media platform. We will start offering unsecured personal loans, then offer other services such as mutual funds and insurance later,” said Patchara.

The mission is to acquire new customers, make the company profitable in the lending business and occupy a position as one of the top five lending providers in Thailand within five years. Both KBank and Line are committed to providing resources and knowledge sharing, in addition to investment capital.

“We need to disrupt ourselves; this move is just one example. Instead of being disrupted by others, we (the new JV company) aim to disrupt ourselves (KPLus),” said Patchara.

Young Eun Kim, chief operating officer, Line Financial Asia, said that there are a lot of opportunities in offering the social banking experience to Thais. The new service is make banking services seamless through the social media network.

Through this partnership, she said, KBank and Line will create a new social banking brand that is extremely easy to use and fun. Customers will enjoy instant banking service within the Line platform, such as simple steps to apply for banking products, fund transfers and personal loans, with a fast approval process.

She added that with 44 million Line users in Thailand, the communication app is a dominant platform with a massive user base. Both companies will work together to establish a social banking experience –more user-friendly, accessible and lifestyle-driven – connected to the Line platform. Their experience will meet Thai people’s daily needs and lifestyles by leveraging the 44-million-user base, diverse access points, and accumulated know-how in mobile user experience, she said. As well, KBank’s extensive experience and knowledge as a leader in mobile banking in Thailand, will be leveraged.

Kim added that the JV company will in the near future offer a variety of financial services, including new lending products and more convenient fund transfer from the Line platform. “We plan to achieve a leading position in the financial industry as the world moves increasingly towards a cashless wallet-less society,” said Kim.

NBTC secretary-general Takorn Tantasith said yesterday that one panel would draw up the licensing rules and the other would evaluate the price of the band. Both panels will finish the tasks within 30 days.

Takorn said that the 700MHz band totalling 45MHz bandwidth should be divided into nine lots each with 5MHz bandwidth. He estimated its starting bid price at between Bt5 billion and Bt6 billion per 5MHz.

The proposals of the two panels will be put to the NBTC board for its consideration and to a public hearing.

The final licensing rules and spectrum starting bid price are expected to be finalised in March 2019.

The NBTC will state in the auction rules that the winning bidders are required to start paying the upfront fees in 2020.

The NBTC aims to get 5G services off the ground in 2020.

Recently the NBTC subpanel tasked with recalling the 700MHz band from digital TV broadcasters called the first meeting with related parties on issues surrounding the recall.

The subpanel expects to see the auction of this band in either middle of next year or in the third quarter. Part of the proceeds from the auction will be used to compensate those broadcasters and related parties that will be affected by the recall.

In a separate matter, the NBTC board yesterday approved the granting of a 1800MHz licence and a 900MHz licence to DTAC TriNet, a subsidiary of Total Access Communication (DTAC).

The 1800MHz licence will be valid from December 16 this year and end on September 15, 2033, while the 900 spectrum will be valid for 15 years from December 16 this year, until December 15, 2033.

DTAC Trinet yesterday submitted to the NBTC the first instalment payment of the 900 MHz licence, Bt4.301 billion (including value-added tax), from the total upfront charge of Bt38.064 billion.

Last month the company paid over Bt6.963 billion as the first instalment of the 1800 MHz spectrum licence fee to the NBTC.

The acquisition of this licence completes DTAC’s spectrum portfolio, which now includes the low-band 900 MHz and the high-band 1800 MHz and 2100 MHz.

In addition, DTAC operates 60 MHz of 2300 MHz spectrum in a partnership agreement with TOT. With a total bandwidth of 110 MHz, DTAC will now quickly update all its systems operating on 850 MHz to 900 MHz to support the rapid growth of mobile Internet.