Thai SMEs and startup companies to raise funds via capital markets

BANGKOK (NNT) – The Stock Exchange of Thailand (SET) is pursuing its initiative to encourage SMEs and startup businesses to raise funds via the capital market, expecting general investment this year to be challenged by external factors, urging investors to properly manage the risks.

SET President Pakorn Peetathawatchai said the SET aims to promote balanced growth due to technological changes in the capital market this year, by streamlining its services at One-Stop Service points for registered companies, as well as providing opportunities in Thailand and abroad through capital market connections with Cambodia, Laos, Myanmar, and Vietnam.

The SET will be urging SMEs and startup companies to raise funds via capital markets, and improve regulations to provide better ease of doing businesses.

He said the overall investment scene in Thailand’s stock exchanges and capital markets will be subject to external challenges and fluctuation…

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Investment promotion requests exceeded 750bn baht in 2019

BANGKOK (NNT) – Thailand remained an investment destination for international investors last year, as reflected in the overall value of investment promotion requests in 2019, released by the Board of Investment (BOI) today, which exceed a 750 billion baht goal.

An impressive 59% was in the Eastern Economic Corridor, with China outreaching Japan to become the biggest international investor in Thailand.

Deputy Prime Minister Somkid Jatusripitak, today assigned the Board of Investment of Thailand (BOI) to introduce measures to oversee companies receiving investment promotion packages last year to proceed with their investment plans.

1,624 projects worth 756.1 billion baht

The BOI last year received investment promotion requests for 1,624 projects worth 756.1 billion baht, of which 506 projects worth 444.88 billion baht are located in the Eastern Economic Corridor (EEC), accounting for 59 percent of total investment promotion r…

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Thailand ready to evacuate Iran

The Prime Minister has given authority to the Thai embassy in Iran to evacuate Thai citizens in the country if it is considered necessary, as the tension in the Middl East rises following the US airstrike that killed a revered military commander Qassem Soleimani.

Prime Minister and Defense Minister General Prayut Chan-o-cha, announced today that the Ministry of Foreign Affairs also has a related protocol in place to deal with similar situations, but urged officials and Thai laborers to be prepared for an evacuation at a minute’s notice.

He authorized the embassy to arrange a chartered flight or to use one of Thailand’s military aircraft in the event of an emergency.

General Prayut also ordered concerned officers to closely follow the latest developments in the situation, citing possible ripple effects such as a surge in fuel or power costs.

Similarly, Labor Minister Momratchawong Chatumongol Sonakul, today instructed the la…

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Thai economy’s Deceleration confirmed in November (Bot)

According to Bot’s latest Press Release, the Thai economy continued to be on a decelerating trend in November, prompting the Central Bank to use the exact same words from its previous Press Release on the Economic and Monetary Conditions in October, to describe the overall situation in November.

The value of merchandise exports continued to contract, mainly due to the economic slowdown of trading partners, consistent with deterioration in merchandise imports, manufacturing production and private investment indicators.

Public spending also contracted from both current and capital expenditures. Meanwhile, private consumption indicators continued to decelerate amid support from the government’s economic stimulus measures. The tourism sector continued to expand.

         On the stability front, headline inflation edged up from the previous month on the back of higher core inflation and lower contraction in energ…

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Households and SMEs’ debt raise concerns (BoT)

The Bank of Thailand concluded that Thailand’s financial system remained sound, with commercial banks and insurance companies holding ample capital buffers. 

However, there remained some pockets where risks could continue to build up, especially given the subdued growth outlook both at home and abroad and the prolonged low interest rate environment.

 The Bank of Thailand announced the outcome of the joint meeting between the MPC and the FIPC on 16 December 2019 to assess risks to Thailand’s financial stability.

The committees highlighted four key issues as follows: 

1. New residential mortgages posted a positive growth for the first nine months of 2019.

Following the implementation of the loan-to-value (LTV) measure, mortgages granted to first-time homebuyers (servicing one mortgage loan) stood unaffected and the LTV ratio of these loans stayed high. Meanwhile, speculation and imbalances in the real estate market showed sig…

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Moody’s affirms Bangkok Bank’s ratings on Bank Permata takeover

Singapore, December 18, 2019 — Moody’s Investors Service has today affirmed the Baa1 foreign currency long-term bank deposit ratings of Bangkok Bank Public Company Limited’s (BBL) with a positive outlook.

Moody’s has also affirmed BBL’s Baseline Credit Assessment (BCA) and adjusted BCA at baa1.

BBL’s outlook is positive, in line with the positive outlook on Thailand’s sovereign rating (Baa1 positive).

Ratings rationale

Today’s rating action follows the announcement by BBL on 12 December 2019 that it will acquire a 89.12% stake in Bank Permata Tbk (P.T.) (Baa3 review for upgrade, ba1) from Standard Chartered Bank (A1 stable, baa1) and PT Astra International Tbk.

The transaction is subject to regulatory approvals from the Bank of Thailand and Indonesia’s Financial Services Authority, as well as approval from the BBL’s shareholders. The affirmation of BBL’s baa1 B…

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ADB Trims Southeast Asia’s growth forecast to 4.4%

 The Asian Development Bank (ADB) has trimmed its forecasts for economic growth in developing Asia this year and next year as growth in the People’s Republic of China (PRC) and India is weighed down by both external and domestic factors.

In a supplement to its Asian Development Outlook 2019 Update released in September, ADB now expects gross domestic product (GDP) in the region to expand 5.2% in both 2019 and 2020, down from the September forecast of 5.4% growth this year and 5.5% next year.

Southeast Asia’s growth forecast is revised down slightly to 4.4% for 2019, as economic weakening in Singapore and Thailand prompts downward adjustments to their growth forecasts. Projected subregional growth in 2020 is maintained at 4.7%.

Thailand’s economy expanded by only 2.5% in January– September this year as growth moderated for private consumption and for public consumption and investment. Weaker trade also dragged on …

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Thai economy continued to be on a decelerating trend (Bank of Thailand)

According to Bot latest Press Release, the Thai economy continued to be on a decelerating trend in October. The value of merchandise exports continued to contract, mainly due to the economic slowdown of trading partners, consistent with deterioration in manufacturing production and private investment indicators.

Public spending contracted after last month’s expansion, from capital expenditures. However, private consumption indicators expanded at a higher pace compared with the previous month after temporarily benefiting from the government’s economic stimulus measures. The tourism sector also continued to expand well.?

          On the stability front, headline inflation edged lower on the back of falling energy prices while core inflation held steady. The seasonally adjusted unemployment rate slightly decreased, in line with the rising number of employed persons in agricultural sector. T…

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Land and Property Tax Forces Site Owners to Consider Options

The new Land and Property Tax which will be effective from January 2020 onward, is another challenge for the Thai property market. 

One of the sectors that will be impacted is vacant land. There are still many unused sites in Bangkok. Owners of these sites will have to start paying significant taxes for the first time once the new land tax comes into effect in January next year.

Many of these owners want to avoid paying the higher rate empty land tax by developing some commercial use on these sites which will generate enough income to pay the new land tax so that they do not have to sell the land.

The risk for many owners is that in their rush to develop commercial use to avoid paying the higher tax rate they create a bigger financial burden for themselves by developing inappropriate loss-making developments.

Lacking expertise, experience and market knowledge, they may end up building something for which there is no dema…

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Condominium Developers Diversify into Recurring Income Properties

The recent restrictive measures from the Bank of Thailand (BOT) have continued to cast a shadow over Bangkok’s condominium market since the beginning of this year.

Condominium sales have dropped, putting pressure on developer’s financial targets. Some developers have sought to diversify their risk in pure residential development projects for sale by seeking to develop alternative sources of revenue from recurring income properties. 

Growing concerns about excessive residential mortgage lending by commercial banks prompted the BOT to reduce loan-to-value ratios (LTV ratios) for second and subsequent home mortgages starting from 1st April 2019. CBRE believes the new measures have significantly reduced the number of speculative buyers and buy-to-rent investors of residential condominium units.

A slowdown in the condominium market has encouraged major residential developers to consider diversifying their portfolios into other property sectors …

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