MACO is the second-largest operator of out-of-home advertising media, controlling a market share of between 30 per cent and 35 per cent.

Kavin Kanjanapas, chairman of executive committee, VGI Global Media Plc, said the partnership will be a new milestone as VGI and MACO expand the group’s business coverage in Southeast Asia. The incorporation of the joint venture is expected to be completed within February next year.

The joint venture will have US$5 million (Bt164 million) in initial capital, of which 40 per cent will be owned by VGI Maco (Singapore) Private Ltd, and 60 per cent by Sinar Mas Group.

VGI Maco (Singapore) is a Singapore-registered joint venture between VGI and MACO, with the stake split 25 per cent to 75 per cent respectively. The company aims to explore future business opportunities in Southeast Asia.

Sinar Mas Group is one of the largest conglomerates in Indonesia. It covers diverse industries, including pulp and paper, palm oil, property development, insurance, power generation and telecom.

“Basically, VGI will replicate our model including out-of-home, payment and customer relationship management (CRM) loyalty programme in Thailand through the joint venture to the Indonesia market,” said Kavin.

“Advertising spending in the Indonesia market is around three to four times bigger than in Thailand. Hence, we see the opportunity to tap into the Indonesia market,” he said.

“The JV is in line with our business model, as we have a strategy to expanding business across Southeast Asia region by replicating our Thailand business model to the overseas market,” added Kavin.

The VGI business is no longer focusing on the advertising sector in particular, he noted.

“Overall advertising is expected to increase by 10 per cent driven by out-of-home and online sectors, which are forecasted to grow by 10 per cent and 35 per cent respectively. A macroeconomic upswing and positive sentiment from the [Thailand] election would be the key driver,” said Kavin.

“The growth of e-commerce is expected to increase by 30 per cent annually, driven by the ever-changing lifestyle of consumers that is tied to mobile and smart devices. Thus, it benefits our payment and logistics business as well,” he added.

Kavin said that VGI’s performance is projected to be positive next year as out-of-home media creates a direct impact, and awareness of the general election stimulates advertising spending in the sector.

Nevertheless, the political parties are regulated not to spend more than Bt1.5 million each for advertising.

He said that VGI expected its total revenue to reach Bt10 billion, with Bt2 billion in net profit by 2021.

“For this year, we revised our full-year target up from between Bt4.4 billion and Bt4.6 billion in total revenue to about Bt5 billion, with a net profit margin at between 20 per cent and 25 per cent,” said Kavin, adding that its fiscal year’s fourth quarter will end at March 31 of next year.

“We expect our business will grow well in 2019,” said Surachai. The company is not affected negatively by external factors such as China’s slowing economy and international trade wars, as the company’s main target is the domestic market,” he said.

“We expect the economic situation in Thailand will be good next year after the general election, and stimulate spending in the country. The year 2019 will be another golden year for RS and we expect to grow by leaps and bounds, generating Bt5 billion in revenue, the highest in the company’s 37-year history.”

Multi-platform commerce (MPC) business will be the main revenue earner for the company, contributing 60 per cent, said Surachai, followed by media business at 30 per cent, as it continues to grow but remains a secondary business. “Music and events business, which continue to perform well, will be also a significant contributor to the company’s revenue, at about 10 per cent,” said Surachai.

RS had earlier disclosed that the company would achieve Bt3.8 billion in total revenue this year.

Surachai said the company’s call centre 1781 has a strong team of telesales staff who can close deals quickly and effectively, while Channel 8 enjoys top rating among Thailand’s TV channels, attracting advertising agencies.

“I think the recovering domestic and international spending from better tourism and exports, investments in facilities, and upcoming megaprojects by the government, all will help stimulate the economy in Thailand. Our key strategy for 2019 is to enter a new era of business with a ‘horizontal integration’ concept. New businesses will be added, as the company implements its strategy to diversify its businesses and make new additions,” he said.

RS about three years ago transformed its media and entertainment business into MPC.

Surachai said the firm would focus on four business areas: MPC, media, music and event businesses for next year.

In the MPC business, the firm provides more than 100 product items in various categories with health, haircare and beauty making up 80 per cent, followed by home and lifestyle goods at 15 per cent as well as accessories and others at 5 per cent. The firm now has around 1.1 million users and around 70 per cent are active users. The firm expects that by the end of next year it will have around 1.5 million users. Moreover, the firm will focus on direct marketing. It has around 1,000 direct marketing sales and expects to reach 1,500 direct marketing sales by the end of 2019. The firm is under negotiations with both local and international businesses for mergers and acquisitions as well as joint ventures so that it could expand its business base in the digital era.

“The MPC business model comes with the concept of horizontal integration that will synergise the media and music businesses for more efficiency,” said Surachai.

“We plan to focus on our existing businesses next year. The strength of our MPC business model will be synergised with the media and music businesses for more efficiency. Its viewers and music fans will be treated as a database to maximise management for better results,” he said.

Meanwhile, the media business will focus on the digital TV Channel 8 and expects to achieve advertising revenue of around Bt1.5 billion by the end 2019. It has around 13 million viewers per day.

The firm expects growth in revenue from online channels including music streaming and downloads.

He said the firm expects to generate total revenue of around Bt5 billion in 2019 with the MPC business model contributing around 60 per cent, followed by media 30 per cent and music and events 10 per cent.

WHA Utilities and Power Plc (WHAUP) has joined hands with GULF-MITG to launch natural gas distribution services in the EEC area under the “WHA Eastern Seaboard NGD 2 Project (WHANGD2)”.

Wisate Chungwatana, WHAUP’s chief executive, said the Eastern seaboard project has been in commercial operation since the beginning of this month, distributing natural gas to its first customer, located in the WHA Eastern Seaboard Industrial Estate 2,

The project is the first of a business collaboration among leading regional energy companies as WHAUP joins with Gulf Energy Development Plc (GULF) and MITG (Thailand) Co Ltd. The resulting joint-venture company, named GULF WHA MT Natural Gas Distribution Co Ltd (Gulf WHA MT), will provide natural gas distribution services to support the energy demand of the industrial users at Estate 2 in Sriracha, Chonburi province in the Eastern Economic Corridor (EEC). Yupapin Wangviwat, senior executive vice president of GULF, said the project has an initial investment of approximately Bt198 million. It has natural gas distribution capability of 2 million BTU per year. The company has signed a 10-year gas sale and purchase agreement with PTT Plc, as well as a 10-year gas sale and purchase agreement with the customer, each renewable every 10 years. The WHANGD2 project has already obtained a Natural Gas Retail Licence and a Natural Gas Transmission Licence from the Energy Regulatory Commission.

He told a media roundtable on Monday the firm has invested 15 billion kyat (Bt318 million) so far, and will spend an additional $25 million to expand its LPG business. He seemed confident the LPG business would be the main driver of the firm’s growth in the long term.

The investment will be used to build a modern energy architecture for the people of Myanmar, bringing safe, reliable and affordable energy to communities across the nation through initiatives such as LPG projects and rural mini-power-grids, Ken Tun said.

“The outlook for LPG business is really bright here in Myanmar. We see much room for improvement because Myanmar’s current LPG usage is 40 times lower than our neighbouring country, Thailand,” he said, citing official figures that showed Myanmar’s LPG consumption is less than 100,000 tonnes per year, compared to Thailand’s 4 million tonnes.

“Our plan is to distribute LPG to nearly two million households by 2020. By doing so, we can also contribute to the livelihoods of women living in rural areas while providing efficient and environment-friendly energy solutions across the nation,” he said.

In the initial phase, the firm will distribute LPG to nearly 150,000 households by the end of this month. As part of its social commitment, the firm will hire only women as their distribution agents.

“We will start with all the townships in Yangon region. Our core strategy is to appoint female distributors only, with an aim to improve their livelihoods. By doing so, we play an active role in women’s empowerment, as the female agents can earn an average income of between 300,000 kyat (Bt6,342) and 500,000 kyat (Bt10,568),” he said.

Ken said the firm has partnered with Thailand’s Sahamitr Pressure Container Plc (SMPC) to distribute LPG in Myanmar.

“We decided to buy SMPC products, though they are more expensive than those of Chinese companies. When it comes to LPG, safety is most important, and we trust in their products because SMPC is one of the leading LPG container manufacturers in the world,” he said.

Parami Energy is one of the only two Licence A holders in Myanmar eligible to import and sell LPG from foreign countries. Currently, the majority of LPG used in Myanmar is imported from Thailand, Malaysia and Indonesia. The firm also looks to import LPG from the Middle East in the years to come. In late 2017, the firm was permitted by the government to manage and operate a state-owned LPG terminal in Thanlyin.

Following extensive remedial work, LPG imports via the marine jetty commenced in February.

“At this point, we are heavily investing in LPG marketing as well as the downstream distribution infrastructure via state-of-the-art systems and equipment,” said Ken Tun.

Last month, the firm opened Myanmar’s first-ever community kitchen to use LPG, locating it in the Pa-O autonomous zone in southern Shan state. The firm plans to set up additional community kitchens in other parts of the country, with the second one scheduled to open in Magway region next year.

“If we could develop an environmentally friendly fuel source that would allow us to curtail the rates for electricity and other fuels, people would have the chance to reduce their electricity costs, and the forest coverage would also widen,” he said.

According to Ken Tun, cutting the forests for fuel to be used in cooking will lead to the deforestation of Myanmar, so the government has to subsidise millions of dollars yearly to pay for electrification.

“For our forests, rivers and natural blessings to be sustainable, we need to find an alternative reliable source of energy. And it is none other than LPG,” he said.

Each of the three prototypes was based on the customers’ lifestyles, needs, inspirations and aspirations such as a club for children, an art gallery-themed concept and the third with a futuristic design. Although the concepts are distinctly different, the three pilot branches will be centred on offering financial solutions and services for the bank’s customers.

UOB (Thai) based the prototypes on its statistical analyses of how customers use the branches and its research on what customers expect of these centres.

UOB’s study revealed that customers preferred to visit a branch for personalised financial advisory services. Ninety-nine per cent of its customers in the upper affluent and family segments said they visited a branch at least once a month. With the increasing use of technology to make banking simpler, safer and smarter, the young professionals said they would rather conduct their banking transactions through digital channels. However, they said they would continue to visit a branch for financial advisory services.

James Rama Phataminviphas, country head of channels and digitalisation, UOB (Thai), said the bank has taken a design thinking approach to enhance the banking experience for each customer segment with the three branch concepts drawing on insights and understanding of its customers.

“The needs of families, young professionals or entrepreneurs and those of business owners and the upper affluent are different. Families would be mainly focused on their children’s development and would want to plan well for their education. Young professionals or entrepreneurs would be concerned about their career progression or setting up their own business. The established business owners and the upper affluent customers would want help in planning, saving and investing wisely. Using data analytics and research, we focused on creating solutions to address our customers’ changing needs and to ensure that their experience at our branches exceeds their expectations.”

Praralee Ratanaprasartporn, senior executive vice president and head of Services Group Data Innovation, Krungthai Bank and Kathy Chang, payments partnership manager, APAC from Facebook, jointly launch “Facebook Pay with Krungthai NEXT” to create payment experience to online shoppers, who purchase goods and services from online stores via Facebook by using “Pay with Krungthai NEXT” function in Facebook without using bank account number or switching multiple screens and applications.

Praralee revealed that as the bank has been announced digital strategy to move forward to the first invisible banking in Thailand. The bank has determined developing payment innovation in response to government’s digital economy and national e-payment policy and also encouraging payment and money transfers transaction via electronic channel.

“As in the present, consumer turns to proceed transaction via mobile banking due to the lifestyle of most people living with smartphone and purchasing products and services via online channel which faster and more convenient. Therefore in response to the growth of the social commerce market in Thailand, the bank has partnered with Facebook to launch Pay with Krungthai NEXT on the Facebook Messenger platform, which can create easy payment experience to online shoppers by connecting link from Messenger application with Krungthai NEXT to use as product and service payment channel via mobile banking by clicking “Pay with Krungthai NEXT”.

The new service makes customers no annoyance of remembering store’s bank account number and switching the screen to open an application for payment.

It also confirms the payment immediately by sending confirmation to the store after transaction completed which enables the store to close the deal easily, safer and more convenient than traditional transactions.

The bank wish this service also help strengthening the online trading business’s competitiveness to retail customers as well service to support and facilitate customers who purchase products and services from online store via Facebook especially for up-country customers which are the bank’s vital customer base.

B Grimm’s maiden green debentures, worth Bt5 billion with five- and seven-year maturity, were subscribed by the Asian Development Bank (ADB).

The proceeds will go towards the listed company’s renewable-energy development projects in Thailand as part of its contribution to establish a low-carbon pathway for sustainable economic growth.

The issuance plays an important part in B Grimm’s drive to raise the share of renewable-energy generation in its overall portfolio from 10 per cent to 30 per cent by 2021, said president Preeyanart Soontornwata.

“The ADB’s support was invaluable to ensure the bonds comply with the International Capital Markets Association’s Green Bond Principles and Climate Bond Initiative standards, while building on a long-standing relationship B Grimm and the ADB have forged through multiple transactions,” she added.

“This green bond will help Thailand achieve its target of reducing greenhouse-gas emissions by an unconditional 20 per cent by 2030,” Michael Barrow, director-general of the Private Sector Operations Department at the ADB, pointed out.

“B Grimm is a pioneer of renewable energy and low-carbon growth in Thailand and increasingly across the region, and the ADB is honoured to be its long-term partner in this effort,” he said.

Furthermore, the issuance will foster the development of the green-bond market in Thailand by showcasing international best practice for genuine green and climate bonds, he added.

The green-bond proceeds will be earmarked for B Grimm’s nine operational solar-power plants with a total capacity of 67.7 megawatts and seven plants of the same kind under construction – all in Thailand and with a combined capacity of 30.8MW.

This green bond represents the ADB’s third transaction with B Grimm, following a loan accord early this year for the expansion into renewable and distributed power generation markets throughout Southeast Asia and a subscription to initial-public-offering shares last year.

For the ADB, the debenture subscription is its second green-bond investment.

In 2016, it subscribed to an issuance to support the Tiwi and Makban geothermal power project in the Philippines – that country’s first green-bond offering.

Set up in 1993, B Grimm has become one of Thailand’s largest private power producers, with 33 plants in operation and a combined installed capacity of over 2,000MW.

According to the ADB, its investment in B Grimm’s green bond is consistent with the bank’s new “Strategy 2030”, which mandates that at least 75 per cent of the number of the ADB’s committed operations support climate-change mitigation and adaptation by 2030, with climate finance from its own resources reaching US$80 billion (Bt2.62 trillion) over 2019-2030.

Paju ES is owned and was developed by SK E&S, the first private power company to directly import liquefied natural gas into South Korea.

The Paju ES power plant commenced operation in February 2017 and supplies electricity to Korea Electric Power Corp, the sole off-taker of wholesale power generation in South Korea, through the Korea Power Exchange, the market operator of the South Korean cost-based pool power market.

Praralee Ratanaprasartporn, Krungthai’s senior executive vice president and head of services group data innovation, and Kathy Chang, Payments Partnership Manager, APAC from Facebook have jointly launched “Pay with Krungthai NEXT” service on Facebook for online shoppers.

The service will create payment experience to online shoppers who purchase goods and services from online stores via Facebook without using bank account number or switching multiple screens and applications.

Praralee revealed that as the bank has announced digital strategy to move forward to the first Invisible Banking in Thailand.

The bank determined developing payment innovation in response to government’s Digital Economy and National e-Payment policy and also encouraging payment and money transfers transaction via electronic channel.

“As in the present, consumer turns to proceed transaction via mobile banking due to the lifestyle of most people living with smartphone and purchasing products and services via online channel which faster and more convenient.

On response to the growth of the social commerce market in Thailand, the bank has partnered with Facebook to launch Pay with Krungthai NEXT on the Facebook Messenger platform.

The service can create easy payment experience to online shoppers by connecting link from Messenger application with Krungthai NEXT to use as product and service payment channel via mobile banking.

Customers can click “Pay with Krungthai NEXT” which makes customers unnecessary to remember store’s bank account number and switch the screen to open an application for payment.

The payment will be confirmed immediately by sending confirmation to the store right after transaction completed which enables the store to close the deal easily, safer and more convenient than traditional transactions.

The bank wish this service also help strengthening the online trading business’s competitiveness to retail customers as well service to support and facilitate customers who purchase products and services from online store via Facebook especially for up-country customers which are the bank’s vital customer base.

“We have created an ecosystem in which people from all walks of life can be easily involved. We believe our services will reach out to all parts of Myanmar by 2030, and thereby will expand overseas as a regional player,” he said in an exclusive interview.

The firm has been registered in both Myanmar and Singapore since July 2017. Singapore-registered Get All Private Ltd owns 100 per cent of Get All Myanmar Co, which aims to expand its presence in Cambodia, Laos, Bangladesh and Pakistan, as well as in West Africa simultaneous with nationwide expansion.

“We aim to provide our services in the countries that share the same or similar fundamentals as ours. In the long term, we want to be successful as a regional player rather than competing for a bigger share of the pie at home,” he said.

“You may think we are ambitious but it is just a realistic target. With a burning desire, everything is possible.”

According to the executive, Get is a digital commerce platform that empowers micro-entrepreneurs with technology in order to be competitive in the future economy. The firm builds the digital economy infrastructure to raise the livelihood of people from the base of the pyramid through economic inclusion.

Currently, the firm mainly focuses on two key sectors – ride-hailing and e-commerce. GetRide is a community-based ride-hailing network that aims to empower drivers in Myanmar with modern technology to improve their income by establishing an interactive platform between drivers and passengers. Get Digital Store is a point-of-sale machine that enables any user to instantly become a micro-entrepreneur, providing multiple essential products and services from air and bus tickets to hotel rooms, tours and mobile top ups digitally.

“Our principal goal is to build a kind of technology-focused economic foundation in Myanmar, while bringing efficiency and availability of various logistics services to every corner of the street,” said Nyein Chan Soe Win.

The firm now has a gross merchandise value of more than US$1 million (Bt32 million), and enjoys seven-digit revenue in US dollar terms every month. In the first three months of its commercial operations, the firm enjoyed up to 100 times month-on-month growth, and aims to sustain a 10-fold increase in revenue in the months to come, he said.

Get Digital Shop now has more than 15,000 agents across Myanmar, and aims to widen its network to over 60,000 agents by the end of 2019. To date, it has covered the majority of Myanmar’s states and regions, except Kachin, Kayah, Chin and Tanintharyi. It will also launch full-stack e-commerce services like Alibaba’s by early January.

“More than 80 per cent of our agents are traditional shops, and we are now focusing on expansion outside Yangon. Customer-care services are available via digital channels and hotline numbers from 6am to 11pm. We are also taking 24-hour customer-care services into serious consideration,” he said.

In the ride-hailing business, the firm currently partners with more than 10,000 drivers, and only 20 per cent of them are from Yangon, the nation’s commercial hub. Currently, around 60 per cent of GetRide vehicles are three-wheelers, which seem popular in many cities and towns.

The firm’s ride-hailing services are now available in six cities – Yangon, Mandalay, Pyin Oo Lwin, Monywa, Sittwe and Bagan. By the end of this year, the number of GetRide taxis in Yangon is expected to reach 10,000. The firm will expand to eight more cities, including Mawlamyaing and Pathein, next year.

“We now serve three types of vehicles – automobiles, three-wheelers and motorbikes. But we are encouraging motorcyclists to become drivers of three-wheelers for their own safety. For that, we recently embarked on a hire-purchase scheme for the drivers so that they are able to own their vehicles after a certain period,” he said.

However, he expects the number of cars to overtake three-wheelers and motorbikes in the longer term once GetRide partners with all the taxi drivers in Yangon. The firm currently has a workforce of over 100 employees, half of whom are based in Yangon. It has partnered with the University of Information Technology for a short-term internship programme every year, which aims to play a crucial role in recruiting new employees.