Finance Ministry extends relief for state banks to ease loan fears
TUESDAY, JANUARY 10, 2023
Four state banks will get another year of relief on contributions to the Specialised Financial Institutions Development Fund (SFIF), a Finance Ministry source said on Monday.
Approval to extend the reduction in contributions from 0.25% to 0.125% of total deposits to the end of 2023 was granted at a meeting of fund committees chaired by Finance permanent secretary Krisada Chinavicharana on Monday.
The SFIF is used to reduce the banks’ non-performing loans (NPLs) and relieve financial burdens on bank customers who are unable to make repayments. To be granted SFIF aid, customers must meet Fiscal Policy Office criteria aimed at identifying those most in need.
The extension will be sent to Cabinet for final approval soon.
Chatchai Sirilai, president of the Government Housing Bank and the Government Financial Institutions Association, said the reduction of SFIF contributions coupled with other Finance Ministry measures would enable banks to suppress interest rates to help customers pay back their debts.
Customers of state-run banks could be rest assured they would not suffer sharp hikes of reference interest rates such as MLR, MOR and MRR by 0.4% at a time, as with commercial banks, he said.
“State-run banks will only raise interest rates in line with market conditions and will try to minimise the impact on customers.”
Carabao Group joins SET’s 2022 THSI list for the Pursuit of Sustainability
TUESDAY, JANUARY 10, 2023
October 10, 2022, the Stock Exchange of Thailand has announced the list of sustainable stocks or Thailand Sustainability Investment (THSI) for 2022, with more than 170 companies selected from a total of 8 industry groups, with Carabao Group listed in the Thailand Sustainability Investment (THSI) group for the first year in Agriculture and Food Industry (ARGO).
Selection of the list of sustainable stocks or Thailand Sustainability Investment (THSI) of the Stock Exchange of Thailand held annually by assessing each sustainability criteria of the listed companies according to the economic (including corporate governance), social and environmental dimensions through a prepared questionnaire and selecting companies that pass the criteria to be announced as a sustainable stock or Thailand Sustainability Investment (THSI). This reflects that the companies that have been selected recognize the importance of sustainability in their business operations. This is a mechanism that promotes and supports businesses operating in an environmentally friendly manner creating shared benefits for the community and society as well as shared value in the economy.
Mr. Sathien Sathientham, Chief Executive Officer of Carabao Group Public Company Limited, revealed that “The company is very pleased to be selected into the Stock Exchange of Thailand’s sustainable stock list. Currently, the concept of doing business not only considering the highest return to shareholders, but also showing social and environmental responsibility on the basis of sustainability. This is a guideline that has been accepted more and more continually to create long-term value by considering the needs of stakeholders and society.”
“Being selected as one of the sustainable stocks serves as another important milestone that helps build investors and stakeholders’ trust in investing in our company according to the concept of sustainable investment considering Environment, Social, Governance (ESG) factors as an investment decision-making criterion along with the analysis of the company’s financial information to generate continuous returns for the longer term,” said Mr. Sathien.
A list of all sustainable stocks selected this year was outcome from the companies participating in the sustainability assessment questionnaire consisting of 17 criteria of general questions from economic (including corporate governance), social and environmental dimensions as well as questions according to the nature of the business in each industry group in 12 categories, such as water-related risks, product stewardship, biodiversity, and etc.
Companies that have been selected to be in the list of sustainable stocks must have a passing score of 50% in each ESG dimension or being selected as a member of the Dow Jones Sustainability Indices (DJSI) according to the year in which the sustainability assessment results are announced. The assessment is conducted by the Sustainable Investment Working Group to ensure transparency throughout the process. A list of sustainable stocks can be viewed at www.setsustainability.com
In addition to the mentioned achievements, Carabao Group has been certified as the Carbon Footprint for Organization 2021 from Thailand Greenhouse Gas Management Organization (Public Organization) with the certificate number TGO CFO FY22-152. The company has disclosed the environmental information and greenhouse gas reporting through publicly disclosed channels and the accuracy of the information has been verified by external accredited verifier demonstrating our transparency and commitment to operating business that creates the least impact on the environment.
Carabao Group also would like to announce that it has furthered its commitment to environmental transparency by disclosing its environmental impact through CDP, a global non-profit that runs the world’s leading environmental disclosure platform. The company has disclosed through CDP since 2022 for the first year and completed CDP’s Climate Change questionnaire.
Historic sales record completes landmark year for Rolls-Royce cars
MONDAY, JANUARY 09, 2023
Rolls-Royce has achieved its highest-ever annual sales in 2022, delivering a total of 6,021 motor cars, up 8% on 2021, to clients in around 50 countries worldwide.
This is the first time in the company’s 118-year history that its sales have exceeded 6,000 in a single 12‑month period.
The value of Bespoke commissions also reached record levels, while demand for all Rolls‑Royce models remains exceptionally strong, with advance orders secured far into 2023.
In 2022, Rolls-Royce achieved sales growth in almost all regions, with particularly strong year-on-year growth seen in the Middle East, Asia-Pacific, the USA and Europe.
More importantly than volume alone, the value of clients’ Bespoke commissions was higher than ever before. The almost endless possibilities for Bespoke personalisation resulted in clients being willing to pay an average of around half a million Euros for their unique Rolls-Royce.
Thanks to the high value of Rolls-Royce’s unrivalled Bespoke offering and the company’s consistent focus on profitability, the marque will make a significant contribution to its principal shareholder.
The Middle East is the marque’s leading region for Bespoke commissions, with many unique creations of particularly extensive and individual personalisation.
In 2022, Rolls-Royce opened an invitation-only Private Office in Dubai, the first outside Goodwood, bringing the Home of Rolls-Royce closer to the marque’s local clients.
Further Private Offices will be introduced around the world in the coming months and years.
The Americas saw significant growth in 2022 and remains the largest single region for Rolls‑Royce, with almost all markets achieving higher sales than the previous year.
Greater China is of vital strategic importance to Rolls-Royce and is the marque’s second-largest sales region. Ongoing headwinds there led to a single-digit drop in sales compared with 2021’s record results, however, this was successfully counterbalanced by increased sales in other markets.
Despite the serious geopolitical challenges affecting Europe, the region grew overall in 2022 with record sales in several markets, including the UK and Germany. The Asia-Pacific region also achieved higher sales than ever before.
Rolls-Royce’s unprecedented success comes as, in January 2023, the company marks the 20th anniversary of the Home of Rolls-Royce at Goodwood. Its transformation – from offering a single model, Phantom, and building just one motor car a day – to today’s record figures is the result of a long-term strategy based on sustainable growth, careful management and planning, and the successful reinvention of the brand.
The past decade, in particular, has seen Rolls‑Royce consciously refine and rejuvenate its brand and product portfolio to reflect its clients’ changing requirements, tastes and demographics, while retaining its innate exclusivity and rarity.
As both a true luxury house and an innovative, engineering-led company, Rolls‑Royce represents, as it always has, the very highest levels of craftsmanship, technology, luxury and creativity.
Torsten Müller-Ötvös, Chief Executive Officer, Rolls-Royce Motor Cars, concludes, “As we mark the 20th anniversary of the Home of Rolls-Royce at Goodwood, these results confirm Rolls‑Royce Motor Cars as a great British success story. Our business is built on extremely strong foundations, and we have secured advance orders stretching far into 2023. And while we are not immune to global challenges and economic headwinds, thanks to our balanced worldwide sales strategy, we are cautiously optimistic that 2023 will be a strong year for Rolls‑Royce.
FWD introduces digital mental health solutions for customers
MONDAY, JANUARY 09, 2023
FWD Group Holdings Limited announced on Monday the launch of the Mind Strength Support programme, a first-in-the-market platform to provide individuals with a convenient and confidential way to access digital solutions to strengthen their mental health.
Customers will have complementary and regular access to a mental health self-assessment questionnaire, after which they will find a set of follow-up options.
These include online self-help tools, unlimited text-based coaching, and virtual therapy with professionals such as counsellors and clinical psychologists.
It is available to customers who have purchased the Mind Strength protection product, which provides extensive medical coverage, from initial diagnosis to ongoing treatment, for designated mental health challenges to ease customers’ financial burdens and support them in their recovery.
The launch follows the recent release of FWD Group’s International Mental Health survey, which interviewed more than 10,000 people across 16 international markets.
The survey found that 40% of respondents in Asia say the cost of treatment is the biggest impediment to seeking outside help for mental health care, and 76% of respondents expressed their interest in exploring insurance options to address such challenges.
In addition, people in Asia place a higher value on self-help than on seeking outside assistance, with only 34% preferring to discuss issues openly with others.
Joanna Chu, Group Head of Product Proposition, FWD Group, highlighted, “At FWD, we believe a holistic approach to building mental strength is needed to help our customers in all aspects of their lives. FWD’s mental health survey demonstrated a growth opportunity for digital mental health solutions across Asia. We are pleased to partner with thoughtful as it reinforces FWD’s broader commitment to making insurance more inclusive and accessible by leveraging digital health technologies.”
FWD Group has engaged ThoughtFull, an Asia focused digital mental health company, to provide FWD’s customers with seamless access to mental healthcare tools via its proprietary mobile platform, ThoughtFullChat.
FWD’s customers can proactively manage their mental wellness simply by sending a text to their matched qualified professional. Based on the individual’s personally assessed needs, customers are empowered to find their best-fit mental health professional for video therapy, daily one-on-one, bite-sized coaching via text and audio messaging, as well as to engage with dynamic science-backed content and emotional health trackers at their own pace.
Joan Low, CEO of ThoughtFull, said, “While the importance of mental health has gained greater awareness across Asia since the pandemic, it takes a leading insurer like FWD to integrate access to mental wellness solutions into their customer programmes. As a tech-enabled mental health platform, our solutions are designed to be intuitive, easy-to-use and personalised for our users’ unique needs. It is thus a privilege to be FWD’s partner to bridge the many gaps that continue to exist in the mental health ecosystem, and to be working together to make personalised mental healthcare accessible to more people.”
The programme was recently launched in Hong Kong and Thailand, with other selected FWD markets to follow in the future.
Thai AirAsia Takes “Most On-Time Airline in Asia Pacific” Honor for 2022
MONDAY, JANUARY 09, 2023
Thai AirAsia has reaffirmed its position as the leading carrier for on-time performance with the latest recognition for the best on-time performance.
Recognized for its top-notch on-time service, the airline has been ranked as the Most On-Time Airline in Asia Pacific and further, as the Top 3 Low-Cost Airline for On-Time Performance in the World, after producing an on-time performance rate of 91.56 % based on data collected in 2022 by Cirium, a leading global aviation and travel data and analytics firm.
Santisuk Klongchaiya, Chief Executive Officer of Thai AirAsia said:”For Thai AirAsia, on-time performance is a mark of quality service that is difficult to imitate as it requires a strong foundation of management, an efficient team and a genuine determination to always be improving and delivering an on-time experience to customers. Thai AirAsia sees on-time performance as second only to its top priority of safety and even established an On-Time Performance Development and Management committee to keep it the most on-time airline, an attribute that has distinguished the carrier.
Chatupong Hongwiset, Head of Ramp and Ground Service Equipment and Chair of the On-Time Performance Development and Management Committee, explained that service quality sets AirAsia apart from other low-cost airlines. The carrier works diligently to serve passengers efficiently and with the utmost safety.
Being named Most On-Time Airline in Asia Pacific and a Top 3 Low-Cost Airline for On-Time Performance in the World by Cirium again is such an honour and will drive AirAsia to continue with its effort to constantly better its service to passengers.
“On-time performance has bolstered Thai AirAsia’s image and these recognitions are a mark of our success. This achievement will only drive us towards better performance and efficiency, ” Chatupong said.
Thai AirAsia has consistently been recognized for its on-time service, placing among the top 3 on-time airlines in the world in the low-cost carrier category in 2021 with an on-time performance rate of 97.47 %, as assessed by Cirium, placing among the top 3 on-time airlines in the world in 2019 as assessed by OAG Aviation Worldwide and ranking No. 1 for on-time performance in the world in 2013 according to Flighstats.
AirAsia’s world-class standards have also brought it the World’s Best Low-Cost Airline award for 13 consecutive years (2009-2022) as named by Skytrax, along with many other accolades.
Thai ‘InsurTech’ firm plans IPO to expand business into Asean countries
MONDAY, JANUARY 09, 2023
A Thai tech firm, whose platform and AI technology have become a game changer for the insurance industry, is confident of winning approval to raise funding from the stock market through an initial public offering soon.
BlueVenture Group Plc (BVG) said on Monday that it has filed an application with the Securities and Exchange Commission (SEC) to issue an IPO of157.50 million shares in the Market for Alternative Investment (MAI).
The BVG management has expressed confidence that the SEC would soon approve its application and it would use the funds raised via the IPO for expanding its business into Asean nations.
Patcharaporn Sanburanurak, managing director of KGI Securities (Thailand) Plc, BVG’s financial adviser, said the SEC has started considering the IPO application of BVG.
The IPO would seek to sell 90 million shares of BVG and 67.50 million shares of its subsidiary company, Patcharaporn revealed.
She said BVG had stated in the application that it would use the funds raised from the IPO to further develop its AI technologies for car and health insurance platforms so that it could expand its business to other Asean nations.
BVG CEO Nawarat Wongthitirat said her company had initiated the use of AI and Big Data technologies to provide a platform and apps for car insurance companies and health insurance firms to manage and streamline services for their clients.
Nawarat said BVG’s platforms and apps have become an industry game-changer for insurance firms, allowing them to service their clients with much more efficiency and allowing them to save time and cost.
Nawarat said the EMCS platform of BVG is now used by 34 out of 39 car insurance companies that operate in Thailand as of last year.
The platform is used to manage 10.7 million out of 11 million non-compulsory car insurance policies, Nawarat added.
The platform is also used to manage about 1.5 insurance claims each year and there are over 3,700 BVG clients using the platform, including insurance firms, service centres, garages, towing firms, spare parts firms and car wreckage auction firms.
Nawarat said BVG’s subsidiary, BlueVenture TPA, has developed and provided a platform and app for health insurance firms.
The health insurance app and platform are now being used by over 500 state and private hospitals and clinics around the country to check the claim rights of some 8.8 insurers, Nawarat added.
With the platforms and apps and more technologies to be developed to cover all types of insurance, the company is upbeat that it will soon become a truly InsurTech firm, the CEO added.
Kerry Express slashing operational costs to cope with economic challenges
MONDAY, JANUARY 09, 2023
Nongluck Ajanapanya
Kerry Express (Thailand), an express delivery company, has launched an aggressive cost-cutting programme and is increasing investment in technology to improve operational efficiency.
Alex Ng, CEO of Kerry Express (Thailand), said at a press conference on Friday that its “Lean Programme” follows up on its aggressive pricing strategy in 2022, which put significant competitive pressure on its competitors.
However, as the global recession, high inflation, energy price volatility, and geopolitical tensions intensified, Kerry needed to improve operational efficiencies in many areas. Ng said it was required to create a better appetite for larger market share and scale when the economy shows signs of recovery.
“We decided to launch the Lean Programme in the first week of 2023 as a commitment to internal improvement and returning to be profitable,” he said.
Ng added that Kerry, as a good and responsible market leader, should always look inward to improve its cost efficiency, employee productivity, and creativity.
He explained that the programme would use four main strategies to cut costs from within.
The first step is an aggressive cost-cutting and waste-reduction exercise. Then there’s the management pay cut for top executives. Following that, all departments’ head counts would be frozen until further notice. Finally, non-performing sites and locations would be closed.
Aside from cutting internal costs, Kerry is committed to increasing capital investments in machinery, equipment, and systems that help to automate work processes in a variety of areas.
Ng revealed that the first shipment of new equipment would arrive in Bangkok in the first quarter and become operational in the second.
He claimed that the company had gained a lot of technological and industrial know-how from its sister companies, such as SF Holding in China and Kerry Logistics Network in Hong Kong.
“Such investments will bring Kerry’s running costs down immediately and take our operations to another level. SF Express and KLN are giving us a lot of inspiration, especially in technologies and industrial know-how. We will also slowdown the development of non-core businesses so our people could focus on the above initiatives with sharper attention,” Ng said.
The company is still finalising the details of its investment.
While acknowledging that the plans are challenging, he said Kerry believes they are the right steps to help the company achieve a breakthrough in profit recovery and propel Kerry to a new level of success in a short period of time.
US snack rankings reveal Americans’ growing hunger for Thai flavours
MONDAY, JANUARY 09, 2023
Thailand’s food manufacturers have been urged to harness Americans’ growing hunger for Thai-flavour snacks.
Thai flavours ranked 6th among international cuisines that American consumers want to taste more of in snacks, according to the 2023 Food and Beverage Flavor Report.
Mexican flavours topped the US most-wanted list, which is published by California-based flavour and fragrance producer T Hasegawa USA. Next came Italian, Chinese, Japanese, Latino and Thai.
The ranking shows strong potential for Thai food manufacturers in the US market, said Thailand’s Department of International Trade Promotion (DITP) office in New York on Monday.
The survey of 2,000 respondents found that the snacks Americans want to see in Thai flavours are baked potato chips (39%) followed by tortilla chips (36%) and fried potato chips (34%) while the most popular Thai flavours are tom yum (sour & spicy soup) and larb (spicy meat salad with toasted ground rice).
“These flavours have been made popular by Thai street foods which are booming in the US,” explained Ketsuree Vijaranakorn, head of the DITP’s New York office.
“Food manufacturers should use this popularity to penetrate the American snack market, which is craving spicy and exotic alternatives.”
The DITP reported that snacks are the fastest growing market in the US food & beverage sector, growing 11.4% to $44.9 billion (1.5 trillion baht) in the last 10 months of 2022.
Crunchy and salty snacks (chips, pretzels, and popcorns) dominated the market with a 59.3% share, followed by cookies (18.6%) and crackers (15.3%).
Ketsuree said the DITP will continue holding promotional events in the US to promote Thai foods, beverages and snacks, including at the Winter Fancy Food fair in Las Vegas from January 15-17, and the Summer Fancy Food Show in New York from June 12-14.
Manufacturers and exporters can reach the department at www.ditp.go.th or its 1169 hotline.
Thai exports staring at grim prospects in 2023 global economic scenario
MONDAY, JANUARY 09, 2023
Business councils and bankers are predicting a slowdown in growth or even a contraction for Thailand’s exports this year because of the global economic slump and continued geopolitical conflicts.
The grim picture for Thai exports was forecast by the Thai National Shippers’ Council (TNSC), the Thai Chamber of Commerce, and bankers from CIMB Thai Bank, TMBThanachart Bank (TTB) and Krungthai Compass.
During the Covid-19 pandemic, when tourism came to a standstill, exports were the main saviour of Thailand’s economy, with continued growth from 2020 until the third quarter of 2022.
However, signs of a slowdown became visible in October last year when exports contracted 4.4% year on year while the contraction widened to 6% in November.
TNSC chief Chaicharn Charoensuk said export data for December has not been announced yet but the TNSC expected it to be negative because of the impact from the global economic slump.
Chaicharn said the TNSC expected Thai export growth this year to slow slow down to 1-3% because of several factors:
● High inflation rates would prompt the US Federal Reserve and central banks of major economies to use austere financial measures that would cause their economies to slow down, affecting Thai exports.
● The Covid-19 situation in China has not improved and the Chinese government may be prompted to use restrictive measures, which would affect supply chains of Thai exporters, and cause economic slowdown in China, unavoidably affecting Thai exporters.
● Although the Russia-Ukraine war would benefit Thai exporters of foods, it would raise costs for exporters of other products when global oil prices rise.
● The baht has appreciated against the US dollar and its value increased from 38 baht per dollar two months ago to about 33-34 baht. This would cause Thai products to become less competitive.
The TNSC expects Thailand to export goods worth US$49 billion to the United States, while exports to China would be worth US$36.5 billion and US$49 billion to Europe this year.
Chaicharn said the TNSC wants Thai exporters to look for new markets to offset the decline in demand in some markets.
He said the key alternative markets for Thai exporters are:
Middle East: The TNSC sees Saudi Arabia, the United Arab Emirates and Qatar as capable of becoming important alternative markets for Thai exporters. Key export products to these markets could be rice and foods.
South Asia: Thai exporters can seek to export jewellery, accessories, plastic pellets and chemical products to India, Bangladesh and Nepal.
CLMV: Cambodia, Laos, Myanmar and Vietnam could be important alternative markets for Thai exporters with construction materials, electric appliances, plastic pellets, textiles and clothes, sugar, and machines and parts among key products.
Wisit LImluacha, deputy chairman of the Thai Chamber of Commerce, said the chamber expected export growth of 6% last year but only 2% this year.
He said the economic slowdown in some of Thailand’s major markets, especially the United States, Europe and China, would result in slowdown for exports.
The global economic slowdown, the high inflation rate and the sluggish performance of the manufacturing sector in Thailand’s main markets would remain risk factors this year, he added.
Amornthep Chawala, vice president of CIMB Thai, said the research office of his bank expected exports to suffer 1% negative growth this year. He said the prediction was based on the export situation in the last quarter of last year.
Amornthep said the negative growth could be more severe than one per cent if China faced economic sanctions from the US.
He said the reopening of China would benefit Thailand’s exports in the short term but the situation would reverse if China itself cannot export to the US.
“So, we estimate that the negative growth may be more than 1%. We have to wait and see the export data for two months before we can be sure,” Amornthep said.
He said the government should find new markets for Thai exporters and should ink more free trade agreements with other countries or groups.
Narit Sathapoldecha, head of the TTB Analytics centre, said his bank expected Thailand’s exports to grow at or lesser than 1.6% this year.
He said the main risk factor for Thai exporters is China itself. He said China’s economy could slow down because of the impact of the Covid-19 pandemic and Beijing could try to offset the situation by expanding its own exports, which could be at the cost of Thailand’s exports.
Narit explained that China might dump its products in the global markets and make it more difficult for Thai exporters to sell their products.
Pacharapoj Nantramas, vice president of Krungthai Compass, a research arm of Krung Thai Bank, said his bank foresaw export growth this year at 1.2% or lower.
The grim prediction was based on negative growth during the past several months, he added.
Thailand’s Consumer Confidence Index rebounds to pre-Covid level
MONDAY, JANUARY 09, 2023
December saw the Consumer Confidence Index (CCI) rise into the confidence zone for the first time since before the Covid-19 outbreak, the Trade Policy and Strategy Office (TPSO) reported on Sunday.
The CCI rose to 50.4 last month from 49.9 points in November, entering the confidence zone (50-100 points) for the first time in 43 months since May 2019.
Driving the improvement were overall economic recovery, rising domestic consumption, and the influx of foreign tourists at year-end, which prompted businesses to expand and hire more staff.
The CCI survey uses data from 6,600 samples in seven occupations across Thailand.
The TPSO also reported that Thailand’s Construction Materials Price Index (CMPI) jumped 5.7% in 2022 and is expected to remain around the same level this year.
The price of construction materials rose on the soaring cost of fuel and steel due to the Russia-Ukraine war, the TPSO said. Other factors driving up the index were manufacturers reducing output, rising minimum wages, increasing electricity costs, the weakening baht, and floods in the second half of the year, said TPSO director Poonpong Naiyanapakorn.
December’s index dropped 0.2% from the previous month, reflecting the falling steel price and promotions for sanitaryware, but it was still 3.6% higher than a year earlier.
The TPSO forecast the CMPI this year will be in the same range as 2022, as Thailand’s recovering economy and public and private investment projects trigger high demand for steel and fuel. Also driving up manufacturing costs will be the higher electricity costs and continual rises in the minimum wage and interest rate.
Factors that could dampen the CMPI in 2023 are the threat of another Covid-19 situation in China and the threat of another lockdown, and the end of government measures to boost the real estate sector that will result in declining property sales, the TPSO said.
Nawarat said the EMCS platform of BVG is now used by 34 out of 39 car insurance companies that operate in Thailand as of last year.
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