The Thai Food Processors Association (TFPA) is aiming to invest in cricket products, as the demand from international consumers is increasing, TFPA chairman Wisit Lamlumcha said.
Even though the target groups are limited, cricket is believed to be a refreshing new menu and is high in nutrients while consumers are still selective due to its production, he said.
The growing markets are located in the United States, China, Europe and South America where healthy food is a trend. Crickets are high in protein and they are an alternative for consumers who do not eat meat.
Cricket exports have made Bt9 million a year and Thailand’s northeastern region is trying to increase the quantity as the current production capacity is 7,000 tonnes a year, Wisit said.
The National Bureau of Agricultural Commodity and Food Standards and the Department of Livestock Development are encouraging cricket farmers in 10 provinces with a total 848.5 rai (136 hectares) of cricket farms.
Wisit said that the price in the US, EU, Japan and China was Bt100-Bt200 a kilogram but the value of cricket pellets jumped to Bt1,000-Bt1,800 per kg.
Napadol Thongmee, the director of the Thai Trade Centre in New York, said that cricket products tended to expand in the US due to the size of the market, allowing niche markets to be established.
The target groups are shops in museums and zoos, Hispanic people who normally consume insects, and people who are running a movement to enhance insect consumption.
“If Thai entrepreneurs receive USFDA to guarantee the products’ standards, the market will be bigger,” Napadol said.
The Stock Exchange of Thailand (SET) Index rose by 3.76 points, or 0.28 per cent, to 1,328.16 on Monday morning (August 10).
A stock analyst at Krungsri Securities expected the index to fluctuate between 1,315 and 1,335, despite the market gaining positive sentiment from strong US economic data.
“In July this year, the US non-farm payroll rose by 1.763 million positions, while the US unemployment rate dropped to 10.2 per cent,” he said.
“Also, investors expect lawmakers to reach an agreement soon on a $1-trillion economic stimulus package.”
However, the analyst said a US-China conflict, falling oil price and mass sell-offs in stocks would pressure the index.
“Recently, the US-China conflict escalated after the US banned China’s TikTok and WeChat applications, while oil price dropped due to uncertainty over decline in fuel demand after the number of Covid-19 patients continued to increase,” he said.
The analyst advised investors to follow TASCO, ASIAN, JMT, BANPU, IRPC, TOP and PTT’s second-quarter performance announcements on Monday.
The SET Index on Friday (August 7) closed at 1,324.40, down 8.82 points or 0.66 per cent. Total transactions stood at Bt44.367 billion with an index high of 1,333.21 and a low of 1,321.16.
He recommended that investors buy:
▪︎ Stocks whose second-quarter performance will improve, such as TOP, SPRC, BGRIM, CPF, TU, ASIAN, TASCO, STA, STGT, AP, PRM, PTL, AJ, TQM, JMT, CHAYO, PTG and BCH.
▪︎ Electronic stocks that benefit from work from home, 5G trends and the weakening baht, such as KCE, DELTA, HANA and SVI.
The price of gold dropped by Bt100 per baht weight in morning trade on Monday (August 10), the Gold Traders Association reported.
As of 9.24am, the buying price of a gold bar was Bt29,800 per baht weight and selling price Bt29,900, while gold ornaments cost Bt29,258.80 and Bt30,400, respectively.
At close on Saturday (August 8) the buying price of a gold bar was Bt29,900 per baht weight and selling price Bt30,000, while gold ornaments cost Bt29,364.92 and Bt30,500, respectively.
The Comex (Commodity Exchange) gold price to be delivered in December dropped by US$41.4, or 2 per cent, to $2,028 (Bt63,266.80) per ounce at Friday’s close (August 7).
Gold price fell for the first time after rising for five consecutive days due to mass sell-offs in gold contracts after the dollar strengthened, causing the gold to become expensive for investors who hold other currencies.
Meanwhile, increasing US employment caused a decline in demand for gold as a safe-haven asset.
The Chinese Gold and Silver Exchange Society said that Hong Kong gold price dropped by HK$260, opening at $18,800 (Bt75,687.34) per tael on Monday morning.
Krungsri Finnovate reveals business strategy for 2020 second half
Aug 10. 2020Sam Tanskul
By THE NATION
Krungsri Finnovate has unveiled its business strategy for the second half of 2020, with a goal of becoming the top start-up incubator and investor in the Asean region.
The Bank of Ayudhya’s start-up venture capital arm also announced its most recent investment – in property tech (proptech) firm ICON Framework.
“Krungsri Finnovate continues its focus on providing support to Thai start-ups while monitoring the Covid-19 impact on their ecosystem,” said Sam Tanskul, Krungsri Finnovate managing director.
“Krungsri Finnovate has redefined its business plan to focus on creating alliances as well as investing in start-ups with potential growth and technologies that will respond to the market post-Covid-19, which include e-logistics, online payment, software as a service (SaaS), food delivery, etc.”
Krungsri Finnovate said its strategy aligns with four investment themes:
1. Strategic Investment
2. Financial Returns
3. Futuristic Investment
4. Fund of Funds
The firm said it will continue seeking investment opportunities both domestically and in Southeast Asia, China, Europe, and other countries with advanced innovation, including Israel.
“Krungsri Finnovate is developing start-ups’ ecosystem and promoting start-ups’ growth both in terms of investment and building incubation and escalation platforms. Going forward, another important step is to collaborate and work closely with giant tech start-ups to develop innovations that connect directly to Krungsri Group’s businesses,” said Sam.
Meanwhile it continues to support growth of small start-ups through “Meet the Angels by Krungsri Finnovate” project which has been joined by over 40 start-ups since its launch,” he added.
Most recently, Krungsri Finnovate invested in ICON Framework, a Thai proptech firm developing an operating system for real estate businesses. ICON Framework has 12 years experience in property technology development and has worked with Thailand’s top 10 real estate developers. Krungsri Finnovate said the investment would help strengthen Krungsri’s home loan business in the long run.
Thai AirAsia aims to push non-air-ticket income to a quarter of its total earnings, Tassapon Bijleveld, executive chairman of Asia Aviation Plc (AAV) and Thai AirAsia Co Ltd (TAA), said.
Thai AirAsia is planning to generate additional income to keep the airline business afloat during the Covid-19 crisis, Tassapon said.
“Currently our food delivery business generates around Bt150,000 per month, while our latest “Unlimited Pass” campaign has generated around Bt100 million,” he said.
“We are expanding into the non-air-ticket market by promoting Thai AirAsia to be a travel digital platform that sells hotel reservation, concert tickets, European train tickets as well as car rental services to travellers worldwide.
“In the future, we aim to become the community digital platform that sells agricultural produce from farms as well as other local products directly to customers with 48 hours delivery,” he added.
Tassapon added that currently non-air-ticket income is responsible for 18 per cent of the airline’s total income. “We are pushing to make non-air-ticket 25 per cent of our total income,” he said. “Currently the profit ratio of non-air-ticket income is at 50-80 per cent, while that of the air ticket is only 2-5 per cent. In the future we might sell air tickets at a loss only to expand customer base and then focus on promoting other services that have higher ratio of profit to revenue.”
Thai AirAsia predicted that the airline industry will take until mid-2020 to fully recover from the impact of Covid-19.
“It had been earlier estimated that this year Thailand would have 8 million foreign tourists, while so far we have only seen around 6.2 million,” added Tassapon. “With the current outbreak situation, we can only rely on the travel bubble policy, which is estimated to bring only around 500,000 foreign visitors until the year-end, meaning the industry will miss its target by a lot.”
Energy Absolute (EA) has said it has no plans at the moment to increase capital as it has sufficient liquidity, but the company may reduce shareholding by approximately 40 per cent to seek more partners.
Amorn Sapthaweekul, the company’s deputy chief executive officer, said the company recently cooperated with partners to invest in two Laos mega-projects to construct hydro-electric dams, namely Saravan Downsteam Hydropower Project and Phamong Hydropower Project.
“These projects can generate about 3,000 megawatts of electricity, while the investment capital is expected to be around Bt100 billion. The company will hold 50 per cent of total shares, while another 50 per cent will be held by partners,” he said.
“The company has cooperated with three partners from both Laos and Thailand, namely Chaleun Sekong Energy Co Ltd, Vega Digital Co Ltd and PSL Service Sole Co Ltd.”
He said these projects will enable the company to sell electricity to Vietnam, which faces power shortage, adding that Thailand has an agreement with Laos to trade up to 9,000MW of electricity.
“These projects need a lot of investment, but it will generate sustainable returns in the long term,” he said. “The company and partners are currently studying the possibility under the Laos government’s criteria, expecting to be completed within two years.”
He believed that the company is still able to manage investment because these projects would take about seven years to be completed, while the company may reduce shareholding to 40 per cent from 50 per cent to seek more partners.
“Although the company has a lot of projects that are waiting for investment, we believe that we can manage investment because the company’s cash flow was over Bt100 billion per year,” he said. “If the first phase of 1-gigawatt battery factory construction is completed, the company will be able to generate more income.”
He expected the first phase of the 1-gigawatt battery factory to be completed by this year and begin production at the beginning of next year, adding that batteries produced during the first phase will be used in the company’s electric buses and boats.
“We will consider suitability before beginning the second phase of the project. If the business grows within three to four years, it will help compensate for adder from the company’s 600MW solar and wind power plants that will expire between 2022 and 2025,” he said.
He said the company is ready to look for business partners to develop phase change material (PCM) to penetrate textile and garment markets.
“After the company sent PCM to foreign companies in India and China to test its properties for producing heat and cold resistant clothes, we expect to see the testing results in two to three months,” he said.
“Currently, the company exports this product to Japan for use in the construction industry, but the demand for this material is still low, while Thailand still does not have rules regarding zero-energy houses.”
He added that PCM will help preserve temperature and reduce electricity usage by air-conditioners, adding that this material was still not popular in Thailand because the cost is high.
“The company’s ECM production capacity was 130 tonnes per day, but the demand for this product is only 30 to 40 per cent of total production,” he added. “However, the PCM business is still performing well,” he said.
The Stock Exchange of Thailand expects initial public offering (IPO) by companies this year to raise Bt500 billion, as large companies have requested to be listed in the market this year.
Manpong Senanarong, SET senior executive vice president and head of issuer and listing division, said large companies that requested to be listed on the market this year include PTT Oil and Retail Business (OR) and SCG Packaging (SCGP).
“From January 1 to August 7 this year, five companies launched IPOs, accounting for IPO market capitalisation of over Bt303.922 billion, while the fundraising value was approximately Bt71.334 billion,” he said.
“Meanwhile, there were approximately 10 companies that were approved to launch IPOs and list on the market.”
According to SET data, if the IPO market capitalisation hits Bt500 billion, it will be the highest in history compared to the previous year’s Bt383.749 billion, while the data in the past 17 years (from 2003 to 2019) shows IPO market capitalisation had hit the ceiling in 2017 at Bt426.349 billion from 42 listed companies.
Meanwhile, SET president Pakorn Peetathawatchai said the IPO market capitalisation was already higher than the average of Bt250 billion to Bt300 billion per year, adding that the SET has set the target for number of companies listing on the market at 30-40 companies per year.
“We expect more large companies to request IPOs in the rest of this year,” he said.
According to a source, SCGP, a subsidiary of SCG, is currently filing its application with the Securities and Exchange Commission, while IPO day will depend on the company and market conditions.
“Investors would be interested in SCGP shares because the integrated packaging business is performing well, while the company has gained positive sentiment from Covid-19 that boosted e-commerce and online businesses’ demand for packaging,” the news source said.
Thai Airways (THAI) and THAI Smile have become the first Thai carriers to receive the Amazing Thailand SHA logo.
Wiwat Piyawiroj, executive vice president, Commercial, of Thai Airways International Pcl, and Netnapang Thirawas, chief executive officer, customer services, of THAI Smile Airways, received the Amazing Thailand Safety and Health Administration (SHA) logo from Phiphat Ratchakitprakarn, Tourism and Sport Minister, at Royal Paragon Hall, Siam Paragon.
Tourism Authority of Thailand Governor Yuthasak Supasorn also attended the ceremony.
Wiwat said THAI and THAI Smile are honoured to be the first carriers to be presented with the logo. During the Covid-19 outbreak, THAI and THAI Smile provided services with health safety of passengers and employees as their top priority. Physical distancing is applied in every aspect of service provision: check-in, passenger boarding, seat arrangement, inflight box meals to avoid physical contact, and disembarkation. The cabin crew were required to wear protective suits, medical masks, and gloves while providing services and observed passengers with possible symptoms. Cabin rooms and cockpits were also sterilised and deep cleaned.
The Amazing Thailand SHA project is a partnership between the Ministry of Public Health, the Ministry of Tourism and Sport, the Tourism Authority of Thailand, and the private sector to develop the Thai tourism industry by combining public health safety measures with hospitality service standards to ensure a favourable travel experience and hygienic safety.
The SHA standards are used to evaluate 10 categories of service in the tourism industry, such as accommodation, restaurants, tour agents, department stores, and vehicles.
By The Washington Post · Heather Long · NATIONAL, BUSINESS, WHITEHOUSE STIMULUS-ANALYSIS
President Donald Trump took the unusual – and controversial – step Saturday of attempting to provide additional economic relief to millions of Americans on his own, without the approval of Congress.
At his golf club in Bedminster, N.J., Trump announced he was postponing payroll taxes through the end of the year, extending the unemployment “bonus” at $400 a week (down from $600), helping people “stay in their homes” and waiving student debt payments through the end of 2020. The details, however, are not as generous as he made them sound.
He is ordering a payroll tax deferral, not a cut, meaning the taxes won’t be collected for a while but they will still be due at a later date. On housing, he instructs key officials to “consider” whether there should be a ban on evictions. He also insists that state governments pick up the tab for some of the unemployment aid.
It is likely Trump will face a legal challenge over these actions. The U.S. Constitution gives Congress the power of the purse. Any changes to taxes or spending are supposed to come from Congress.
Here’s a rundown of what Trump actually did. He says he signed four “executive orders,” but in reality, only the one on housing is an actual executive order. The other three actions are marked as “memorandum,” which carries less heft.
1. He delays payroll tax collection for those making under $104,000
Trump instructs the U.S. Treasury to halt collection of payroll taxes from Sept. 1 through Dec. 31 for workers who earn under less than $4,000 every two weeks (that’s people earning under about $104,000 a year).
This will feel like a tax cut for a few weeks because workers will end up with larger paychecks while the tax is not collected. But it is technically a tax deferral, meaning the taxes will still be due at a later date.
The president called on Congress (and presumptive Democratic presidential nominee Joe Biden) to make the tax deferral a permanent tax cut, but Trump is acknowledging he does not have the power to cut taxes on his own. That would take action from Congress.
Payroll taxes help pay for Social Security and Medicare. Trump is attempting to postpone the 6.2 percent tax that employees pay in every paycheck for Social Security. Employers are also required to kick in another 6.2 percent that comes out of the company’s pocket for each employee.
Congress already deferred most employer payroll taxes for the rest of 2020, so Trump is now attempting to defer workers’ payroll taxes. This relief only applies to people who are working and collecting a paycheck, and it is only temporary since the taxes must still be paid. If the taxes were not repaid, it would lower the funds in the Social Security Trust Fund.
2. Unemployment aid is (sorta) extended at $400
The United States currently has more than 30 million people on unemployment aid. They had been receiving an extra $600 a week from the federal government on top of their state aid (which averaged $330 a week), but Congress set the federal funding expire at the end of July. Democrats want to continue at the $600 a week level. Republicans proposed $200. They have yet to agree.
Trump’s memo calls for federal aid to restart at a level of $400 a week. But there’s a catch: The federal government is only paying for $300 of that. States have to kick in the other $100. Many states are currently cash-strapped as they fight the coronavirus, and there’s concern governors won’t sign on to do this.
There are also a lot of legal questions about the money Trump is attempting to use to pay for this. He calls for $44 billion of funding from the Department of Homeland Security’s Disaster Relief Fund that is normally used for hurricanes, tornadoes and massive fires to be shifted over to unemployment.
“The basic notion here is the president is rejecting Congress’s power of the purse,” said David Super, a constitutional law expert at Georgetown Law. “That is something nobody who cares about separation of powers can let slide, even if they like what the money is being spent on.”
Trump’s memo orders the aid to last through Dec. 6 or until funding runs out. But on top of legal questions, $44 billion would cover less than five weeks of payments for 30 million unemployed Americans. That isn’t enough money to make it to October, unless the number of people on unemployment falls dramatically.
3. Top officials can “consider” halting evictions
The United States has about 110 million renters, and many have been hit hard by the layoffs in retail, restaurants and hospitality during the pandemic. Trump’s executive order does little to help them.
Trump has said many times in recent days he wants to prevent evictions, but his latest executive order does not ban evictions. Instead, Trump calls for Health and Human Services Secretary Alex Azar and Centers for Disease Control and Prevention Director Robert Redfield to “consider” whether an eviction ban is needed.
Trump also didn’t provide any more money to help renters. The executive order calls only for Treasury Secretary Steven Mnuchin and Housing and Urban Development Secretary Ben Carson to see if they can find any more funds to help out. It doesn’t promise more aid.
Many housing advocates and landlords were surprised Trump didn’t do more to help renters. The federal government owns the vast majority of mortgages in the nation through Fannie Mae, Freddie Mac and other entities. Back in March, Congress passed a federal moratorium preventing many evictions, but it expired on July 24. That moratorium covered all renters living in places that had a federally owned mortgage. Many thought Trump likely did have the authority to extend at least that eviction ban, but he did chose not to do so.
There could be 30 million to 40 million renters at risk of eviction in the coming months, according to report last week by a group of housing advocates and researchers. That compares with an average of 3.6 million evictions a year before the coronavirus pandemic.
4. Student loan payments are deferred until Dec. 31
Trump’s final memo waives all interest on student loans held by the federal government through the end of 2020 and allows people to delay payments until Dec. 31.
The Education Department does have the authority to defer or even cancel student loan payments to the federal government, says Alexis Goldstein of Americans for Financial Reform.
Trump used this authority to temporarily cancel interest payments, which helps relieve the financial burden on millions of Americans. But the debt is not canceled forever. Principal payments are due on Dec. 31 and full payments are slated to restart Jan. 1.
5. What happens next
There will likely be court challenges to Trump’s actions this weekend, making it unclear how quickly any money would reach the unemployed. On top of that, it’s unclear how many states will want to participate in this enhanced unemployment program or how many companies will want to suspend payroll taxes for employees only to have to pay them in 2021.
Overall, this a limited action. It still would take a deal between Republicans and Democrats to pass a broad economic aid package that would substantially address the needs of small businesses, renters, unemployed workers and more.
—
Heather Long is an economics correspondent. Before joining The Washington Post, she was a senior economics reporter at CNN and a columnist and deputy editor at the Patriot-News in Harrisburg, Pa. She also worked at an investment firm in London.
Sam Tanskul
