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Property developers to delay investment if political woes drag on
Property developers are likely to postpone their
investment in new projects if Thailand’s current political turbulence
persists, according to an industry executive.
Chainid Ngowsiri, executive chairman of Property Perfect Public Company
Limited, said that he is concerned with the current political turmoil.
Should the conflict drag on, it would have a negative impact on the business
sector as a whole in the following three to six months, he cautioned. Under
the current circumstances, he said, property developers have no choice but
to delay investment in new projects. However, the ongoing construction of
existing projects will remain intact.
Chainid said he hopes to see the current political woes solved peacefully
and quickly so that the country’s economy could maintain its growth.
He believes that consumers are confident that there could be political
change without any violence.
Meanwhile, Tanachai Tanachai-aree, senior executive vice president of United
Overseas Bank, said the number of applications for housing has not yet
declined.
It is expected that the loan amount extended to purchase new homes this year
will reach 180-200 billion baht. (TNA)
Political tension, US economic data depress stock and money markets
Local political turmoil along with US economic data will
continue to depress both the Thai stock and money markets this week,
according to a report issued by the Kasikorn Research Centre.
The Stock Exchange of Thailand’s (SET) figures reveal that foreign investors
were the highest net sellers two weeks ago, with sell off of shares worth
Bt3.87 billion.
The report said the SET continued to remain depressed last week as most
investors awaited the outcome of the protest planned for this past Monday
and Tuesday, aimed at ousting caretaker Prime Minister Thaksin Shinawatra.
It said investors were also monitoring the global crude oil price and key US
economic data, and the bourse was anticipated to be under pressure because
several blue chips are to be posted with “XD” signs this week.
On the money market, the Centre said the baht is expected to remain within
the range of Bt39.0-39.40 against the dollar.
It said traders were worried about domestic political unrest while they also
awaited important US economic data such as retail sales in February, current
account for the fourth quarter last year and consumer price index for
February. (TNA)
Thai chicken export to benefit from Sino-Thai FTA
The export of Thai chicken and products will benefit from
the opening of a free trade area between Thailand and China, although the
latter is becoming a remarkable rival, according to the Kasikorn Research
Center.
The leading think tank said that Thailand would benefit from the FTA pact
due to import tariff cuts in processed chicken from 17 percent to 15 percent
when it is put into effect, and to zero in 2010.
However, KRC said China is one of Thailand’s main rival for the export of
chicken since the production of chicken in China has rapidly increased in
the past decade, thanks to production improvement and eradication of hygiene
problems, particularly contamination in the production process.
This has enabled China to begin competing with Thailand in exporting chicken
products to Thailand’s main destinations such as Japan and Hong Kong and
potential destinations namely South Korea, Middle East, and East Europe.
Additionally, local operators in the chicken business are worried of the
possibility of businesses importing chicken from China, repackaging it, and
re-exporting it to other countries, as this would certainly damage the
quality of Thai products in the future.
KRC projects China’s export of chicken products to be 470,000 tons this
year, up 31 percent from last year, with Japan and Hong Kong becoming major
destinations. (TNA)
PM’s son to pay nearly Bt6 million fine for violating securities law
Caretaker Prime Minister Thaksin Shinawatra’s son,
Panthongtae Shinwatra, was ordered by Thailand’s securities authorities last
Friday to pay a total fine of Bt5.982 million for his violation of the
Securities and Exchange Act.
Deputy Secretary-General of the Securities and Exchange Commission (SEC)
Prasong Winaipaet told a press conference that Panthongtae was found guilty
of breaching Articles 246 and 247 of the Securities and Exchange Act by
failing to file trading forms and report his share trading to the
authorities.
He is, therefore, subject to a fine of Bt10,000 (US$250) per day,
retroactive to the date he began failing to file the trading forms and
report his stock transactions in September 2000, accounting for a total sum
of Bt5.982 million now.
An SEC committee in charge of considering fines and penalties, which
comprises of representatives from the Royal Thai Police, the Bank of
Thailand (BOT) and the Ministry of Finance’s Fiscal Policy Office (FPO),
issued the order stating that Panthongtae is obligated to pay the Bt6
million fine.
In late February, the SEC ruled that Pinthongta Shinawatra, the elder
daughter of Thaksin and Panthongtae’s younger sister, was innocent of the
violation.
The commission also announced after a probe that it also found no wrongdoing
regarding the establishment of Ample Rich Investments Co. in the tax-haven
British Virgin Islands to hold Shin Corp shares and transfer them to
Panthongtae and Pinthongta because such transactions had not been made to
manipulate share prices.
Regarding alleged insider trading on the sale and purchase of Shin Corp
shares from Ample Rich, the SEC considered that holders of the shares,
Panthongtae and Pinthongta, were both sellers and purchasers of the shares.
Hence, the transactions caused neither damage nor disadvantage to outsiders.
Therefore, their actions were not considered a breach of the insider trading
code.
The SEC also dismissed an allegation that there are two companies named
Ample Rich holding Shin Corp shares located in different places. The SEC
found only one Ample Rich, established in the British Virgin Islands, but
the company has two different addresses for postal delivery purposes.
Meanwhile, Thaksin’s Thai Rak Thai (TRT) Party last Friday issued a 44-page
soft-cover report clarifying the Shinawatra Family’s legal sale of its
controlling stake in Shin Corp to Temasek Holdings, Singapore’s state-owned
telecommunication firm in late January and its alleged tax evasion attempts.
The paper also clarifies points regarding the registration of Ample Rich Co.
in the British Virgin Islands.
The TRT Party said the paper would be distributed to local and international
media organizations for publications and would be used as a reference for
TRT candidates in their election campaigns. (TNA)
Combined dividends by listed firms rise 7.95% this year
Combined dividends paid by 216 out of 431 Thailand’s
listed firms to existing shareholders for 2005 totaled 161.68 billion baht,
up 7.95 percent from the previous year with Siam Cement Public Company
Limited making the highest dividend payment, according to the Stock Exchange
of Thailand (SET).
SET’s Senior Executive Vice President Suthichai Chitvanich said that an
average dividend yield given by listed companies, excluding those in the
REHABCO sector, stayed at 4 percent.
Top five industry groups with the highest dividend payment included
resource, property and construction, technology, financial business and
service.
In the resource group, combined dividends totaled 45.54 billion baht.
PTT Public Company Limited (PTT) paid the highest dividend of 25.88 billion
baht or 9.25 per share with a dividend yield of 3.67 percent.
In the property and construction group, combined dividends totaled 31.24
billion baht.
Siam Cement made the most attractive dividend payment of 18 billion baht, or
15 baht per share with a dividend yield of 6.15 percent.
In the technology group, combined dividends amounted to 28.16 billion baht.
Advanced Info Service Public Company Limited (AIS) paid the highest dividend
of 18.85 billion baht, or 6.3 baht per share with a dividend yield of 6.49
percent.
In the financial business sector, combined dividends totaled 19.19 billion
baht.
Siam Commercial Bank offered the highest dividend of 5.65 billion baht, or 3
baht per share with a dividend yield of 4.62 percent.
In the service sector, combined dividends totaled 17.79 billion baht. Thai
Airways International Public Company Limited (THAI) paid the most attractive
dividend of 2.55 billion baht, or 1.50 baht with a dividend yield of 3.47
percent. (TNA)
Overall private investment begins to drop in January
Overall investment has begun to decline in January, as
witnessed by a reduction in imports of capital goods, according to the
Fiscal Policy Office (FPO).
FPO’s Director-General Naris Chaiyasoot said that under the current
political situation, Thailand’s economic growth could be only driven by
exports because mega-infrastructure projects, another key stimulation for
economic growth, are likely to be postponed.
However, should the current political crisis end quickly and the
mega-projects be implemented in the first half of this year, it could fuel
the economic growth.
He said monthly macro-economic figures showed imports in January increased
at a slower pace in terms of volume.
Reduced import items include raw materials, semi-finished goods and capital
goods.
It signaled that private investment has begun to ease. Still, the decreased
imports would help lessen the country’s trade and current account deficits,
he noted.
Should the situation persist, he said, it would affect production and
employment over the next 3-6 months.
Naris said the FPO had previously projected that the country’s exports would
expand 9.5-10.5 percent on average this year with a growth of 17.2 percent
in January. However, figures released by the Customs Department showed that
exports grew only 13.6 percent in January.
At the same time, imports in January grew only 2 percent against 10.9
percent projected earlier since shipment of crude oil, steel and gold had
significantly dropped.
He said the country’s trade balance was also in deficit of only US$442
million against US$985 million expected earlier.
So, the FPO believes the trade deficit for this year would be lower than
previously projected. (TNA)
Foreign investors still interested in Thailand’s electric train projects
Foreign investors are still interested in investing in
Thailand’s electric train projects despite the country’s current political
turmoil, according to the Mass Rapid Transit Authority of Thailand (MRTA).
 Chairman
of the MRTA board Anchalee Chavanich confirmed that foreign investors had
continued to seek information on the projects from the MRTA. Investors are
particularly interested in two main routes that extend the underground
train’s blue route from Bangsue to Bangkae in the Thonburi side, and the
purple route from Bangsue to Bangyai in Nonthaburi Province on the outskirts
of Bangkok.
There are 10 electric train projects included in Thailand’s planned
mega-projects worth a total of Bt1.7 trillion, six of which are under the
MRTA’s supervision.
Anchalee assured foreign investors that Thailand would definitely go ahead
with the mega projects regardless of whether or not there is a change in the
government as mass rail transit for Bangkok and surrounding provinces are
desperately needed.
She also confirmed that foreign investors would still be allowed to submit
their terms of reference (TOR) when bidding for the projects, meaning that
they could freely offer to invest in any of the projects as a whole package,
including proposed details of a project, proposed financial sources and
proposed timeframe of the project.
Meanwhile, MRTA’s former governor Prapat Chongsa-nguan said that some
details of the bidding process might be improved, such as the required
standards of specific routes.
“This means that interested investors may be required to specify whether
their projects will be heavy rail, light rail or mono rail, with different
passenger capacity, or which parts of a route will be elevated or
underground,” noted Prapat, who is contesting for the new governorship of
the MRTA. (TNA)
Finance industry unaffected by political upset, say bankers
Thailand’s current political turmoil has not yet affected
loan applications, according to a veteran banker.
Boontak Wangcharoen, senior executive vice president of Kasikorn Bank
(KBANK), said turbulent politics should be thought of as a normal part of
the democratic process.
Demonstrators have the right to call for the resignation of caretaker Prime
Minister Shinawatra, and the current situation has no impact on bank
lending.
What should be of more concern, he said, were higher rates of interest and
inflation. However, Boontak said the overall Thai economy would be affected
if the political uncertainty drags on, as the conflict could delay the
implementation of the government’s infrastructure construction programs.
Lending by financial institutions to the projects would then be suspended.
He predicted the overall Thai economy in the first quarter of this year
would slow and begin to improve in the third and fourth quarters.
Boontak said that ongoing political turmoil has not yet affected loan
applications by either small or large scale operators.
Piyasavasdi Amranand, executive chairman of Kasikorn Asset Management Co,
echoed the remarks, saying the increasingly heated political situation has
not adversely affected the business sector.
It has just caused a delay in the necessary final approval by the government
of the various infrastructure projects being considered.
He said the financial sector has not been hurt by the political confusion
because the Bank of Thailand (BOT) has implemented policies efficiently and
independently. (TNA)
ADVERTORIAL: Wise Power Land introduces Beachfront Villas and Delux Units
Wise Power Land Company Limited officially announces the
commencement of sales of Beachfront Villas, Loft Villas and Delux Units at
their show unit in Jomtien Beach.
 Eric
Lai, chairman and CEO of Wise Power Land Co. Ltd.
The latest additions to La Royale Beach Condominium are six low-rise villas
facing the sea. These exclusive 3-level freehold homes with large living
spaces, private home theatres, vast pool areas and terraces, truly provide
for residents the ultimate lifestyle by the beach. Another 32 low-rise Loft
Villas are also being built by a 60-metre pool deck. The Loft Villas also
offer spectacular views and many have tall ceilings that rise 5 metres.
These homes offer some of the most luxurious resort qualities that take
advantage of the tropical seaside climate and pristine natural environment.
Wise Power Land Chairman and CEO Eric Lai said, “La Royale Beach Condominium
on an exclusive estate at Jomtien Beach is truly one of the best quality
resort projects in the Eastern Seaboard front. The 10-rai property possesses
several traits that make it special. Its beachfront site allows residents
protection from noise and crowds on the main Jomtien strip, but is near
enough to walk to shops, restaurants and other retail outlets.”
 (L-R)
Seksith Kristsmai, project architect, Sombat Chancharoensin MD Wisepower
Land, and David Gray, director of East Coast Real Estate announce the launch
of sales of the new project.
Eric Lai, who spent many months trying to locate such a prime spot admits
the search was far from easy. “The moment I came across this piece of land
that was available for sale, I knew it was perfect. Pattaya is one of the
closest seaside towns to Bangkok. The Bangkok-Bang Pakong elevated tollway
now makes travelling to the eastern destination faster than before. The
other consideration that will encourage investments to Pattaya is the new
airport. When it opens, Suvarnabhumi will channel a great deal of expansion
towards the eastern front,” he predicted.
La Royale contains about 150 units of freehold condominiums with sizes
ranging from 106 square metres to 742 square metres. The units will have
spectacular seaviews of the Gulf and contain large terraces.
Eric went on to say, “In creating resort residences, La Royale realizes the
importance of allowing a great deal of outdoor living spaces while
maintaining luxurious indoor spaces.
“The price of the floor area is about Bht 70,000 a square metre with the
smallest 106-square metre unit selling for about Bt 7 million. The price
includes built-ins, kitchen set, air-conditioners and other fixtures except
for loose furniture. The second aspect of the project is its access from the
Sukhumvit Highway allowing easy passage to the estate. La Royal goes a long
way to add on features to a wide range of apartments and villas that provide
high-quality resort living.”
The management cordially invites you for a La Royale Beach evening on
Saturday, March 25, at the show unit and sale office located on Jomtien
Beach. RSVP Khun Narumon Tan, tel. 02 682 6255. e-mail: marketing@
wisepowergroup.com
Perspective of Villa type A.
Perspective of Villa type B.
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