UK-based BusinessInsider.com reported recently that Unilever, a global FMCG (fast-moving consumer goods) giant, spent about 20 per cent of its overall marketing budget in 2014 on digital, up from 17 per cent in 2013.

“From our point of view, this was a good initiative by the FMCG giant. However, digital advertising spend by Unilever (Thai) Holdings has [been less aggressive] because Thai digital consumers are in the developing process,” Siwat Chawareewong, president of the Digital Advertising Association (Thailand), said recently.

A survey conducted by the DAAT and TNS Thailand suggested that in this country, the telecommunications sector at Bt974 million led the way in online advertising spending last year, followed by automotive with Bt918 million, skincare with Bt595 million and dairy products with Bt567 million.

To cash in on the emerging popularity of digital-media consumption, Punthree Athayuti, senior brand manager for the biscuit unit at Mondelez International (Thailand), said her company had shifted its advertising budget from print to digital media to promote the Oreo brand two or three years ago. This year, the company is allocating about 30 per cent of its advertising budget for digital marketing strategies, while the rest will be for television, which remains the key medium to reach mass consumers.

“The key online marketing strategies aim to communicate with target consumers via social media like Facebook, Line and Instagram. On top of that, the|company will use an interactive online platform via http://www.letwonderout.com,” Punthree said.

TOA Paint (Thailand) is among local brands keen on rolling out an online marketing strategy. Puangpen Saengphet, vice president for marketing, told The Nation that the company realised the importance of online media, so it had set aside about 30 per cent of its total advertising budget for online.

This year, TOA has earmarked about Bt1 billion for marketing and communication strategies across the country. Half of that will be used for online and offline advertising, marketing activities and sales promotions, and the rest for co-promotion with dealers, distributors and product consultants.

Siwat projected that within two years, spending on digital advertising could outpace that on print media.

The DAAT also forecasts that spending on digital advertising will increase by 23 per cent to Bt9.927 billion this year from Bt8.064 billion in 2015.

The event is billed as a visionary community and is slated to be the biggest high-level international confab in Thailand this year. Its founder is Frank-Juergen Richter, who has worked for the World Economic Forum in Davos, Switzerland.

The Thai co-chairman is Vachara Phanchet, chairman of Sittipol Holdings.

Other international co-chairmen are Sidek Hassan, chairman of Petronas in Malaysia; Piyush Gupta, CEO of DBS Bank in Singapore; Lee Hee-beom, vice chairman of LG International in South Korea; Shoei Yamana, CEO of Konica Minolta in Japan; and Surin Pitsuwan, former Aseansecretary-general.

The agenda comprises issues important to the future of Asia including growth, youth development, venture capital, branding, trust building, technology disruption, innovation and education, and leadership.

“This is the first time we| come to Asia, which we believe is where the future for the global economy lies,” Richter said |recently.

All of Horasis’ past meetings including those on China and India have been held in Europe since its inception 11 years ago.

Vachara said the event would be a high-level networking platform. It would be enormously beneficial to Thailand, which is now undergoing political and economic transformations.

Among the participants and speakers will be a former Japanese prime minister, a prime minister and ministers from Asean member countries, and top executives of leading companies such as HIS, Credit Suisse, Tesco, 500Startups, Temasek Management Services, Myanmar Capital, SAP, Thien Duc Trading and Globis.

Thai participants will include senior executives of Bangkok Bank, Kasikornbank, McThai, Bangkok Hospital, True and Thai Beverage.

During a stopover in Bangkok, Richter said recent terrorist atrocities in Europe would mean a further dampening of European economies in the next few years.

“Maybe Asia could support Europe by investing there,” he said.

The economist sees a “new normal” for China as it adjusts to a new growth outlook driven by innovation, as well as a positive outlook for Asean including Thailand as the regional automobile hub among others.

He is also bullish on Myanmar with its abundant resources and young working population. All these would add to Asean having several major economic partners to fulfil its growth path.

“Horasis [a Greek word for vision] stands for continuous dialogues and trust. Our platform is designed for CEOs to do business together,” he said.

Vachara said Horasis would be welcomed to have regular annual meetings in Thailand and it would play a role in taking the region to another level.

The organisers of Horasis Bangkok include the Asian Strategy and Leadership Institute, Green World City Organisation and Pacific Basin Economic Council.

President and chief executive officer Krisda Monthienvichien-chai told a news conference on the weekend that Bt28 billion would be spent on the sugar business, such as developing its facilities and water system.

A further Bt15 billion will be spent on the renewable-energy business, with Bt3 billion to develop an investment plan for wood-substitute materials, Bt3.6 billion for overseas business, and Bt800 million to develop its logistics system.

About Bt8 billion of the Bt28 billion budgeted for its sugar business will be allocated according to the government’s economic stimulus measures and will be invested in projects that help strengthen the grass-roots economy according to the government’s Pracha Rath strategy, he said.

Currently, the sugar business accounts for 42.8 per cent of Mitr Phol’s sales and service revenue. Energy business contributes 17.8 per cent, wood-substitute materials 4.6 per cent, and logistics 1.2 per cent. Its business in China accounts for 27.1 per cent, that in Australia 5.8 per cent, andAsean ventures 0.6 per cent.

Krisda said 2016 would still be a challenging year for the Thai economy given the uncertain global economic outlook and other unfavourable factors affecting the Thai export sector, and more important, the severe droughts that have hit the agricultural sector.

“Our approach to business growth focuses on research and development, application of innovative technology and a fully integrated agribusiness model to improve production and management of sugar-cane farming and the sugar industry,” he said.

Meanwhile, the group places great importance on strengthening the organisation of sugar-cane farmers, which is a critical upstream production player of Mitr Phol Group’s business, while supporting the national agenda to drive long-term stable economic growth in accordance with the government’s Pracha Rath strategy, he added.

Its support for the Pracha Rath strategy will include sustainable community-development projects, with the aim of expanding the knowledge base and creating added value to raw materials available in the community. Developing community products will create jobs for a sustainable future.

Other projects will align with the Board of Investment’s promotion policy in rural areas, and will support small and medium-sized enterprises in the agricultural sector.

Mitr Phol Group is Thailand’s No 1 sugar producer and exporter and the world’s fifth-largest. The group is also the largest bio-power and ethanol producer in Thailand and Asia.

With these strategic investments, the group is confident that it can generate enough business growth to be the world’s leading sugar and bio-based industry in the near future, Krisda said.

Organised by Sphere Exhibits, a subsidiary of Singapore Press Holdings, and co-organised by the Myanmar Construction Entrepreneurs Association (MCEA), BuildTech Yangon 2016 returns this year with an expanded focus.

Taking to the stage will be some 120 exhibiting companies showcasing equipment, machinery and solutions on facilities management, interior finishing and architectural solutions. This is in addition to its array of staple exhibits from the construction machinery building materials and mechanical engineering segments.

This new focus is in line with recent developments in Myanmar’s construction sector, which is booming following the opening up of Myanmar’s economy to the world.

Meanwhile, increased awareness of construction and workplace safety has given rise to a greater focus on safety and disaster prevention in this year’s BuildTech Yangon.

The show of an extensive showcase from Austria, China, Indonesia, South Korea, Thailand, Vietnam, Singapore and Myanmar is expected to attract over 4,500 visitors.

Last year Thailand exported cement to Myanmar worth Bt8.43 billion, an increase of 12.38 percent from 2014.

It exported iron and steel products to Myanmar worth Bt6.02 billion, an increase of 8.38 percent from 2014. These reflect growth of construction and development in Myanmar.

U Tha Htay, president of MCEA, said: “The third edition of BuildTech Yangon 2016 is indeed timely, with the new government preparing to take the reins to usher in a new era for the country.

“With the government prioritising infrastructure development in support of the country’s burgeoning economic growth, the infrastructure construction in Myanmar is expected to achieve its fastest growth from the period 2012 to 2016.

“The infrastructure construction sector is the second-largest market in the Myanmar construction industry and is worth an estimated US$765 million (Bt27 billion) annually.

“The government’s focus on improving infrastructure in Myanmar will see the major development of new roads, buildings, pipelines and electrical grids. At the same time, a sharp rise in foreign direct investment has seen big growth in demand for new office space as well as housing for expatriates.

“There are many growth opportunities in Myanmar’s building and construction sector and BuildTech Yangon is proud to be part of this growth.”

At a total cost of Bt2 billion, the retail and playground complex was conceived as a family paradise, a place where all members of the family can spend quality time together.

The playground is designed for children aged three to 13.

Prakarn Nokhong, LT Group managing director, explained the reasoning behind having an indoor playground within a shopping mall.

He said parents with young children wanted a space conceived specifically for children, especially in terms of safety standards and diversity of playthings and activities.

He said this was the unique feature and selling point of Harbor Pattaya, an otherwise fully-fledged shopping mall.

“We found that families, especially those with children aged three to 13, take their children for strolls in ordinary shopping centres according to the father’s or mother’s lifestyle,” he said.

“But those places aren’t really designed for children.

“So we thought of building a place where children will be able to enjoy themselves and which will be safe for everyone in the family, especially the children.

“That’s how Harbor Pattaya was conceived, as a mega-fun mall providing happiness of all kinds to all family members. In other words, a family paradise.”

LT Group said the main selling point of the complex was Harbor Land, which it claimed was the first of its kind in Thailand – a collection of the greatest number of playthings manufactured to the highest standards.

It said through the venue some of the leading plaything manufacturers of Europe were present in Asia for the first time.

It said the venue’s The Rink and Snow Land will open in October, as they both require many equipment elements and their installation would take longer than the other features of the mall.

The new venture is the first non-finance asset-management firm formed by three former executives in the industry.

They are Chotika Sawananon, former managing director of SCB Asset Management, Chatrapee Tantixalerm, former chief executive officer of Krungsri Asset Management, and Prapas Tonpibulsak, former chief investment officer of Krungsri Asset Management.

Talis Asset Management CEO Chatrapee said of the Bt5 billion, Bt2 billion has been earmarked as coming from private funds and the remainder mutual funds.

Prapas is the company ‘s chief investment officer and Chotika its chairman.

Each of the three executives holds a 25-per-cent stake in the company and the remaining 25 per cent is held by other three people. Of that figure, 5 per cent is held by Thanong Pidaya, a former finance minister.

Talis Asset Management’s paid-up capital is Bt100 million.

Talis Asset Management was approved by the Securities and Exchange Commission in early March.

The company’s private fund related products are now available while those related to mutual funds will be launched in the third quarter, said Chatrapee.

“It’s the right timing for us to open the company now,” said Prapas.

He added that the private fund market was worth Bt600 billion, meaning there were ample business opportunities. “We are targeting only 1 per cent of that,” he said.

Prapas added that under the new normal, in which the economy would grow at a lower level of about 3 per cent a year, the industry’s return-on-investment rate was expected to average around 10 per cent annually, down from 12 per cent. If the company beat the market rate, it would gain the trust of customers, he said.

“We believe in the word-of-mouth strategy and this can boost our number of customers,” he said.

The company is targeting high net-worth customers.

According to data, there are 75,000 individuals in the country with a net worth of between Bt10 million to Bt50 million.

Talis Asset Management has 20 employees.

Punnamas Vichitkulwongsa, chief executive of Ascend Group, said in an interview that the firm’s e-commerce business volume was forecast to jump 60 per cent this year to Bt4.5 billion from last year’s Bt2.8 billion due to the advent of the 4G cellular service.

4G will be about five times faster than the current 3G so it will give a big boost to mobile commerce. Provincial clients will be among the new customer groups in addition to those in Bangkok and urban areas.

At present, the Internet penetration rate in Thailand is about 45 per cent of the entire population who use the 3G network, while the 4G service is due to be widely available in the next few months.

“E-commerce and e-payment will be made easier and faster,” Punnamas said. “For those in remote areas, they will find it more convenient to top up their prepaid cards via the cellular network or pay other bills or use financial services. The faster cellular service is also expected to drive e-commerce growth.

“4G should boost the use of the cellular network to account for 70 per cent of all e-commerce transactions this year, up significantly from last year’s 40 per cent because it is more convenient and secure to use your mobile phones for these transactions than using the Wi-Fi network at home or office.

“Online purchases of goods and services depend on a reliable and comprehensive eco-system which consists of fast Internet access and e-payment infrastructure. For Thai consumers, a trusted e-payment service is very important because many Thais are reluctant to use credit cards.”

As for e-commerce, it is set to grow rapidly in the coming years as the eco-system has emerged to support widespread adoption, especially in terms of logistics and delivery services. E-commerce’s share of the country’s total retail transactions is forecast to double to 2 per cent shortly. For logistics, Ascend Group’s subsidiary, Aden, is responsible for order fulfilment within 24 hours for delivery within Bangkok and three days for the rest of Thailand.

Punnamas said Ascend Group’s iTrue Mart, its the business to consumer e-commerce site, was popular among the new generation of shoppers nationwide, especially for electronic gadgets, home appliances as well as baby and mother products such as diapers.

On a daily basis, he said there were about 10,000 orders on average with more than two million items currently available on its website.

For business to business e-commerce, Ascend Group’s Pantavanij marketplace site currently handles sales of office supplies, raw materials and other items worth about Bt150 billion annually with a yearly growth rate expected to top 15 per cent this year. Among the major buyers are large organisations such as Siam Commercial Bank, Thanachat Bank and CPN. Ascend also has a consumer to consumer site called Weloveshopping, so the group has positioned itself to cover all major types of electronic marketplaces.

In Thailand, Lazada and iTruemart are among the leading B2C e-commerce sites. In addition, Ascend Capital is aimed at venture capital funding for start-ups in financial technology, customer relations management and logistics.

As for e-payment, Ascend Group has secured licences to operate in eight Asean countries, namely, Thailand, Malaysia, Laos, Cambodia, Myanmar, Vietnam, Philippines and Indonesia.

In 2015, True’s e-payment services handled transactions worth about Bt58 billion and this year’s growth rate is forecast to be 20 per cent due to the advent of 4G cellular service.

Punnamas said online hotel bookings accounted for about half of all e-payment transactions, followed by ticket purchases and other online services such as insurance policies.

For other online purchases, physical goods account for 15 per cent of the total while digital goods and content account for another 25 per cent, he said.

Punnamas said the 4G cellular service would also allow more personalised marketing services to reach target groups via their mobile phones.

“We’re positioning Ascend Group to be comprehensive digital platforms with a complete eco-system similar to that of the giants like Alibaba of China or Amazon of the US,” he said.

The listed coal and electricity company surprised the market last month when it announced a Bt12.9-billion rights offering – its first in 16 years.Many research houses reacted coolly to the fund-raising plan, the proceeds of which will go merely to repaying part of its outstanding debts of $3 billion.

CEO Somruedee Chaimongkol said Banpu’s capital expenditure (capex) budget of $554 million geared up for 2016-2020 included only the organic expansion plans of its existing projects, and not new projects and merger and acquisition opportunities.

“We have a rather huge ‘capex growth’ plan, which we will announce together with the deal when it is done,” she said.

Somruedee said the rights offering, due to be tabled for shareholders’ approval on April 19, would cut Banpu’s net debt-to-equity ratio to 0.8 times, from 1.2 at present, as part of the company’s plan to prepare itself for “a new era of growth”.

Banpu hopes to take advantage of the current down cycle in commodity prices to acquire coal-mining assets, grow its renewable-power business and conventional power plants, as well as entering new businesses, such as natural gas and energy distribution, she explained.

“If one looks at our capital-increase record, the last time we did it was in 2000. Therefore, if there is not a good enough reason to do so, we don’t do it,” she said.

The group expects to increase its power-plant capacity to 4.3 gigawatts by 2025, of which 20 per cent will be renewable power.

After sliding since 2011, coal prices have been much more stable this year, as supply and demand are becoming more balanced.

The company expects coal prices to be similar to last year’s level, and targets increasing its sales volume to 46.1 million tonnes, from 45.4 million tonnes in 2015.

The second major step in Banpu’s financial plan will be the initial public offering (IPO) and spin-off of its power and renewable-energy business, Banpu Power.

The IPO filing was approved by the Securities and Exchange Commission early this week.

Coal’s contribution to the group’s earnings before interest, tax, depreciation and amortisation is expected to reduce from 70 per cent to 60 per cent in the future, with power business increasing its share to 40 per cent.

In a research note issued on March 14, Krungsri Securities said Banpu’s capital-increase plan, which would result in a 50-per-cent dilution of the firm’s earnings per share, signalled a difficult outlook for its coal business, as it would also receive an estimated Bt20 billion from listing Banpu Power this year. Banpu has announced a 1-for-2 rights offering at Bt5 per share.

The price is at a large discount to the closing price of Bt18.90 prior to the announcement, suggesting Banpu wants to ensure full subscription of the new shares, the research house noted.