She added that the company is also studying the options of a joint venture firm or a takeover in Japan for its business expansion in the long term.

The investment budget will come from its cash flow and the issuance of Bt600 million in debentures, she said.

The company expects its total revenue to grow by up to five per cent this year thanks to Thailand’s auto industry’s growth of 11 per cent in the first half of this year, she said.

He added that the company expects to open 500 branches in China within five years from now.

The NBTC telecommunications subcommittee yesterday announced its position on dtac’s request for a remedy period to be applied for the benefit of its 1800MHz and 850MHz customers following the expiry of concessions on its two spectra on September 15.

The remedy period refers to the duration the NBTC would allow telecom operators to continue using existing spectra to offer services on an interim basis after their concession ends. This is to give them time to migrate all customers to other networks.

NBTC secretary-general Takorn Tantasith said yesterday that only after one of the two bid winners paid the initial fee would the regulator consider granting the remedy period to dtac.

In principle, if neither of the bid winners pays the first instalment after the concession ends, the NBTC would automatically grant the remedy period to dtac’s 1800MHz customers.

The protection would cover its entire 25MHz of 1800MHz.

The NBTC divided dtac’s 1800MHz spectrum into nine lots, each containing 5MHz, and auctioned them on August 19. dtac subsidiary dtac TriNet and Advanced Info Service subsidiary Advanced Wireless Network (AWN) each clinched one lot from the auction. Therefore, dtac has requested the NBTC remedy period for the remaining 15MHz of the 1800MHz.

The auction rules require the bid winners to pay the first instalment within 90 days of them being named as winners.

dtac has also asked for a review of the NBTC’s decision to reject its request for a remedy period for its 850MHz customers. In this case, Takorn said that dtac would have to write to NBTC with clear reasons for the review.

Then, the NBTC office would collect all related information, including the number of dtac’s existing customers on its concession for the NBTC telecom subcommittee’s consideration on September 4. The panel would forward its conclusion to the NBTC board on September 5.

In a separate matter, Takorn said that on Tuesday the NBTC had met with the representatives of the digital TV licence holders to seek a long-term solution for the industry, with many of the licence holders struggling to survive amid the fierce competition.

The broadcasters proposed that the government should subsidise the entire monthly fees they have paid to the network providers to rent their broadcasting networks.

The NBTC has already subsidised the broadcasting network rental fee to all digital TV licence holders by 50 per cent of the fee for two years, effective from May 23, in line with a recent order by the junta.

In addition, they also proposed that once the NBTC auctions the 700MHz, it should use the upfront fees gained from the auction to cover all their remaining upfront fees they have paid to the NBTC for their TV licences.

The NBTC plans to migrate all digital TV licence holders, which currently use 700MHz, to operate on 400MHz in the future.

Meanwhile, the ratings on IVL’s senior unsecured debentures to “AA-” from “A+”.

TRIS Rating also upgrades the rating on the company’s subordinated capital debentures to “A” from “A-”.

The upgrade reflects the company’s strengthened business profile as a result of its strategic shift toward high value added (HVA) products and geographically diversified portfolio from the acquisitions during the last five years.

Of the total, business-2-business e-commerce accounted for the transaction value of Bt1.67 trillion, business-2-consumer Bt812 billion, other kinds of e-commerce Bt324 billion.

The e-commerce boom has led to continuous expansion of the logistics business with annual growth of 10 to 20 per cent, reaching Bt28 billion in value last year.

AFRICA

Special EXIM deals for

potential Thai investors

EXIM Thailand is offering special deals to promote African market penetration and Thai-Kenyan trade and investment

Pisit Serewiwattana, president of Export-Import Bank of Thailand (EXIM Thailand), said Africa is a new frontier for Thai entrepreneurs and the bank has made available benefit packages for entrepreneurs who wish to take out export credit insurance with EXIM Thailand to hedge risk of foreign buyers’ non-payment.

The package comprises 1) a 50 per cent reduction of the calculated export credit insurance premium, and 2) analysis of foreign buyer data free of charge for the first two buyers and 50 per cent discount for the 3rd-5th buyers. The insured will be compensated for a loss from buyers’ non-payment at 80 per cent of the loss incurred in relation to trade and political risks. Entrepreneurs may apply for the package from today until the end of 2018.

ASIA PACIFIC

Investment volumes hit

record US$81 bn in first half

Investment volumes in Asia Pacific hit a record-breaking US$81 billion in the first half of 2018, up by 30 per cent year-on-year, with Hong Kong leading the way as the region’s most active city, according to latest data from real estate consultancy JLL.

“Asia Pacific’s property markets continue to perform well despite global political and economic uncertainty,” says Stuart Crow, Head of Asia Pacific Capital Markets, JLL. “Globally, the pace of deal making in Asia Pacific has raced ahead of Europe and the US, as transaction volume growth in this region is being supported by a continued cyclical recovery in developed markets such as Hong Kong, Australia and Japan.”

Transaction volumes in Hong Kong grew to US$14.6 billion in the first half of the year compared to US$5.8 billion during the same period in 2017. The city jumped to third on the list of the world’s most liquid markets after London (1st) and New York (2nd) following sale of the 73-storey office tower The Center for US$5.1 billion. Not only was it the largest single-asset transaction of the year so far, but is also the world’s most expensive real estate transaction ever.

“Prices in Hong Kong’s Central sub-market have been pushed up due to a combination of tight vacancy rates, robust occupier demand and a lack of new supply. Coupled with an influx of Chinese occupiers and investors, these factors have accelerated an increase in real estate prices,” says Joseph Tsang, Head of Capital Markets, JLL Hong Kong.

“Despite the rising prices, investor appetite remains resilient. Between 2015 and 2017, mainland buyers spent an average of US$2.1 billion per year on offices in Hong Kong. This year is set to exceed that figure given that, to date, there has been more than US$2 billion worth of office acquisitions already transacted,” explains Mr Tsang.

Meanwhile, Asian investors were the most active net buyers of commercial real estate in the first half of 2018. The group alone purchased 20 per cent of office, hotel and retail assets disposed by global funds, who were the largest net sellers of commercial real estate – worth a total of US$31.5 billion between January and June.

As outbound investment from China slowed, investors from Hong Kong, Singapore and South Korea stepped in to provide liquidity, demonstrating the depth of the buyer pool from the region.

“While many of these investors have favoured the U.S. in prior years, pricing pressures in core markets and rising hedging costs are driving many Asian groups to consider investments in Europe instead,” explains Mr Crow. “This has been the case for South Korean investors for instance, who face high hedging costs when investing in the U.S. In fact, South Korean purchases in Europe were double those made in the US at the half-year mark in 2018.”

Across the region, the office sector made up over half of all transaction volumes, with retail following at 20 per cent. Industrial and logistics, which made up 13 per cent of transactions, saw 27 per cent growth year-on-year as it continues to be favoured by foreign and domestic investors alike.

“Investors are upping their exposure to real estate in Asia, with a growing number of groups increasing their allocations to the sector thanks to its defensive qualities, steady income stream, and relative performance compared to other asset classes.

Shifting demographic and technological trends are driving appetite for scale, especially in the logistics and alternatives sector,” Crow added.

L’OREAL

New chief named

for Thai operations

L’Oreal has announced the appointment of Ines Caldeira as the new managing director for Thailand, effective September 1.

In her new role, Caldeira will leverage almost 17 years of experience with L’Oreal in Europe to drive forward L’Oreal’s mission to create “Beauty For All”, making beauty universal for Thai consumers, te company said .

Caldeira will join L’Oreal Thailand after spending the last four years as the country manager for L’Oreal Portugal, At 35, she was the first and youngest female in L’Oreal’s Portugal history.

Over the course of her career with L’Oreal, Caldeira has been given the responsibility for three international assignments, played a development role at headquarters, and directed operations in Spain, one of the toughest and most challenging economies, for four years.

Chief marketing officer Nicholas Chiu said the Singapore-based start-up currently holds licences in the island republic as well as in Hong Kong and Indonesia for a range of cross-border financial services, including conversion of Bitcoins and cryptocurrencies into fiat money.

For example, Bitcoins can be converted into US dollar, Thai baht and 30 other fiat currencies used in the region using licenses for payment and remittances issued by Singaporean and other regional authorities.

This will serve the need of those wanting to pay for expenses using their cryptocurrencies or to get a loan using their holding of cryptocurrencies as collateral. In other words, BridgeX is positioned to be the online platform bridging the gaps between the traditional banking world and cryptocurrencies.

The start-up aims to raise about $19 million in fresh funds to grow its business model in which conversion of cryptounits into fiat money is streamlined for various payment services, as Bitcoins and the likes gain their popularity among the mainstream population.

According to Chiu, the start-up expects to provide cross-border services in 180 countries worldwide.

Regarding Ripple, he said, the real-time settlement, currency exchange and remittance network is more focussed on B2B and inter-bank cryptocurrencies while BridgeX is more consumer-oriented for lending, currency conversion and cross-border payment services.

By 2024, the start-up forecasts to have as many as 200 million users as there are now more than six million electronic wallets, the number of which is growing rapidly, especially among the millenials or those born between the 1980s and the 2000s. Many people in this generation view cryptocurrencies such as Bitcoins and Ethereums as a new class of assets which should be used as collaterals for business loans or home mortgages, even though the value of cryptocurrencies has proved to be wildly fluctuating over the past years.

In addition, millennials in tech startups want to use their crypto-units to pay for business as well as personal expenses or even their wedding so there is a demand for conversion service to get fiat money. Yet, the advent of crypto-units has also raised concern among anti-money laundering authorities who have called for strict enforcement of the law to prevent criminals from laundering their illicit funds.

This means local banks face some restrictions due to anti-money laundering measures.

In Thailand, the Securities and Exchange Commission is empowered to regulate all digital assets, including initial coin offerings (ICOs) which Chiu said are facing a government ban in many countries. At this stage, China has adopted a more flexible policy on cryptocurrencies, while Indonesia resorts to the more conservative capital control measures.

In the event that cryptocurrency holdings are used as collateral for home or business loans, he said, lenders need a guarantee in the form of software that can manage the volatility of these units which can be sold when the value drops to maintain a safe ratio for lenders in a way similar to a margin call in stock trading.

At present, the Thai authorities also work with Omisego, another start-up, on a payment platform and decentralised exchange as the country takes steps to adopt blockchain and other digital technologies.

Due to less favourable government policies in other countries, Singapore has attracted the set-up of more than 1,000 fintech and other startups in its territory as cryptocurrencies and ICOs rapidly evolve with US$3.8 billion raised in 2017 worldwide.