Thai stocks ended up a modest 0.1% yesterday in highly volatile trade dominated by investor concerns about the growing political tensions in the country. The Stock Exchange of Thailand index closed at 721.86 points, up 0.73, in trade worth 13.3 billion baht.
TOT Plc yesterday announced a plan to invest 30 billion baht in third-generation mobile-phone services to be ready for commercial launch within one year. The announcement came after TOT signed a memorandum of understanding with CAT Telecom yesterday for the rights and management of the 1900 MHz spectrum to provide 3G services.
WEALTH
Former prime minister Thaksin Shinawatra has scaled Thailand's rich list despite having $2 billion in assets frozen while he stands trial for corruption, according to Forbes magazine. Mr Thaksin, who was deposed in a 2006 military coup, is the country's 16th richest person and $100 million richer than last year, with a fortune of $400 million, the magazine said.
ENERGY
The Finance Ministry will propose a temporary 80% reduction of the planned excise tax rate for E85, a blend of 85% ethanol and 15% petrol, to just 50 satang a litre from 2.50 baht planned earlier. Finance Minister Surapong Suebwonglee said the low excise tax rate would apply for 18 to 24 months following the introduction of the fuel later this year. The excise tax for E85-compatible cars remains under consideration.
PROPERTY
The Bank of Thailand has warned that current interest and inflation rates, resulting in negative real interest rates, might cause speculation in real estate if the situation is prolonged.
PROPERTY
Property stocks have been downgraded to neutral from overweight on the Stock Exchange of Thailand as the result of rising political uncertainties, according to a research report by CIMB-GK Securities (Thailand) Ltd.
ECO Cafe'
If you have been dreaming about working in your own home, now might be the time for it to happen. With rising oil prices and global warming problems, many companies are seriously thinking about implementing telework programmes.
BANKING
Thanachart Bank has budgeted two billion baht to overhaul its IT systems over the next seven years. The bank, 24.98% owned by the Bank of Nova Scotia, yesterday signed a contract with IBM (Thailand) to outsource its IT infrastructure.
Tesco Card Services, a financial services provider and insurance broker, yesterday introduced personal loans because of high demand from customers of Tesco Lotus superstores. Teeravuth Suthanaseriporn, the company's first senior vice-president for marketing and sales, said the Tesco personal loans offered privileges and promotions that fit customers' financial needs in an economic slowdown. Currently, Tesco Lotus has around one million visitors a day nationwide.
EXECUTIVE Q&A
In the first of a new twice-monthly series of interviews with executives of listed Thai companies, Chutima Tangmatitham, assistant managing director for accounting and finance with MK Real Estate Development Plc (http://www.mk.co.th), discusses the company's strategy and outlook.Business:
ENERGY
Fishing operators in Pattani and Songkhla are ready to modify boat engines to accept low-cost liquefied natural gas (LNG) to keep their businesses alive. The southern provinces are the third and fourth largest fishing provinces in the country just behind Samut Sakhon and Ranong and have about 1,000 trawlers, which are expected to consume over 150 tonnes LNG combined each day.
The government's high pledging price for paddy will draw a lot of rice into the state stockpile, potentially exposing taxpayers to a massive loss as rice prices are on the way down, an economist warned yesterday. ''This action is like a time bomb,'' said Somporn Isvilanonda, an associate professor of economics at Kasetsart University.
Xen Hotels & Resorts, a new local hotel management and development company, aims to run 11 hotels and one condominium this year. Xen was founded early this year by a group of hotel specialists and investors to provide hotel management services. A subsidiary, The Retreat Hua Hin Co, with registered capital of 200 million baht, would handle development.
SMALL BUSINESS
The number of small businesses closures in the first five months of this year was 10% higher than in the same period last year, reflecting the poor economy, production cost increases, inflation and reduced consumer purchasing power. From January to May this year, 18,795 new SMEs were established while 5,448 closed _ 10% higher than in the first five months of 2007, according to figures released yesterday by the Office of Small and Medium Enterprises Promotion (Osmep).
SMALL BUSINESS
Small businesses will be offered incentives for innovative projects that promote technological development, said Hirunya Suchinai, a senior executive investment adviser with the the Board of Investment (BoI). The BoI would offer privileges to local operators in six industries that join research institutions on innovation projects. The incentives include machinery import tax exemptions and a waiver of 70% of corporate income tax for three years.
BEAUTY PRODUCTS
Romrawin Skin & Laser Clinic Co plans to spend at least 100 million baht building a new cosmetics and skin-care factory in Bangkok this year. The move would support the company's future expansion into skin care and cosmetics products to sell both locally and internationally.
Thai Airways International's plan to acquire 20 Airbus A321-200 regional jetliners, worth about $1 billion, has survived scrutiny by the national carrier's new board following a review of a major fleet modernisation programme. The board chaired by Chaisawasd Kittipornpaiboon, the permanent secretary for the Transport Ministry, resolved on Wednesday to stick to the decision made on Jan 18 by the previous board to proceed with the acquisition.
FOOD SERVICES
Sodexo, one of the world's leading providers of integrated food and facilities management services, wants to beef up its technical services in Thailand as part of its global strategic plan to double revenue and triple profit growth by 2015.
LOGISTICS
While phasing out operations in the Philippines to expand its business out of China, the US-based logistics giant UPS remains cautious about expanding operations in Thailand, citing the political and economic uncertainties. Greg Carstens, managing director of UPS Thailand, said the company was monitoring local political and economic conditions before considering a new investment.
EMPLOYMENT
Thailand's job market has remained stagnant due to economic weakness and political uncertainties, according to Satinee Mokaves, managing director of Jobs DB Recruitment (Thailand). She said most companies were not taking on new staff or were only replacing existing employees.
PROPERTY
After freezing development of a 32-storey condominium on a plot next door to the house of national artist Chakrabhand Posayakrit, Dalvey Residence has launched the Click Denim condominium project.
IN Brief
FINANCE : Credit card spending fell 0.1% in May from April, primarily due to declines in overseas spending, according to the data released yesterday by the Bank of Thailand.
