|
Performances of commercial banks improves significantly in 2nd quarter
Combined operating performances of 13 commercial banks
significantly improved in the second quarter of this year, according to the
Stock Exchange of Thailand (SET).
The SET reported that they posted the combined net
profits of 18.57 billion baht, a surge of 13.34 billion baht, or 261%, from
5.14 billion baht in the same quarter last year.
Bangkok Bank enjoyed a net profit of 2.73 billion baht,
up 76.65% from the corresponding period the year before, KASIKORNBANK gained
10.88 billion, up 183%, Siam Commercial Bank earned 2.89 billion, an
increase of 69%, and Bank of Ayuthaya 1.05 billion, up 98%.
Thai Military Bank had a net profit of 607 million baht,
up 493%; Siam City Bank gained 109 million, down 58%; BankThai 58.96
million, down 81%; Bank of Asia 478 million, up 110%; DBS Thai Danu 85
million, up 20%,; Standard Chartered Nakornthon 29 million, down 33%’ UOB
Radtansasin 122 million, up 6,500%, and Thanachart Bank 137 million, down
4.67%. (TNA)
Consolidation of Thai insurance sector on the horizon
A recent assessment made by Standard & Poor, one of
the world’s leading rating agencies, concluded that the Thai insurance
market may see consolidation in the near future, as the government gets
ready to increase capital requirements for the sector.
Ian Thompson, managing director, ratings services for
S&P said, “Since presently there are too many players in the market,
and I foresee a consolidation in both the life and non-life insurance sector
in Thailand.”
As an example, Thompson said “The Japanese market has
nearly 150 million people but a combined 50 companies in both the life and
non-life insurance sectors. In contrast, Thailand, with a population of 63
million, has 77 non-life insurance companies, and 25 life insurance
companies.”
Thompson said that the consolidation of the industry will
be gradual. But the government’s plans to increase the minimum requirement
on registered capital of insurance companies to 300 million baht from the
current 30 million baht will most likely motivate consolidation. (TNA)
OTOP products to hit world stores within 3 years
Deputy Prime Minister Somkid Jatusripitak has pledged to
ensure that ‘One Tambon, One Product’ (OTOP) goods will be on display in
large stores across the world within three years, expressing confidence that
foreigners would be willing to pay top prices for products that required
time and skills to make.
During a recent opening of an exhibition of OTOP products
from the upper southern region in Surat Thani Province, the deputy prime
minister voiced confidence that within the next couple of years, the
government’s continual promotion of OTOP products would eventually pay
off.
Noting that the UK store Tesco and the French hypermarket
Carrefour had already agreed to distribute OTOP products abroad, Somkid said
that the prize-winning OTOP products from Thailand’s 76 provinces would
gain global recognition, and would help pull tourists into Thailand. “Even
though the prices might be a little high, tourists will be prepared to pay,
as these products require intricate skills and much time to make,” he
said.
Somkid said that the government was attaching importance
to the OTOP scheme in recognition of its role in boosting local incomes.
Noting that over the past 10 years economic growth had been concentrated in
the hands of large businesses, he said that the true roots of economic
expansion were local producers.
The Surat Thani OTOP event attracted a huge number of
interested viewers on its first day, with crowds flocking to see the 83
products which have passed the regional selection process, of which 10
products have been accorded five stars, the highest mark of quality. (TNA)
Thai-German Institute hosts first joint “Industrial Solutions Road Show”
With DEG and Rieckermann Thai Engineering
Supa Kukarja
Three well-established institutions in the Eastern
Seaboard industrial zones put together their resources and organized a road
show in the fields of engineering, financing and training.
 The
three organizers/sponsors presenting prizes to the lucky winners.
It was the first of the multi series road show seminars
and was held at the Thai German Institute, Amata Nakorn Industrial Estate.
Viboon Kromadit, the vice president of Amata Corporation
gave his opening address, congratulating the three organizations for their
effort to educate and create awareness in the industrial sectors on how much
more they can do to increase their productivity and competitiveness through
modernization, automation, quality enhancement, reliability, services and
compliance with international environmental standards.
 Khun
Viboon Krommadit, the Vice President of Amata Corporation and Walter
Kretschmar the German Director of TGI.
The first presentation was from RieckermannThai
Engineering by Hans Dieter Westphal.
Rieckermann Engineering has been supplying manufacturing
and process machinery worldwide, providing professional engineering in
Thailand for some 50 years. It is also the local representative for a large
number of international manufacturers of plant and equipment.
Hans Dieter Westphal of Rieckermann Thai Engineering
The second presentation was DEG by Herbert Jaeger.
DEG is part of KFW Group providing tailor-made long-term
project and corporate finance through equity participation, mezzanine
finance, and loans in all major currencies as well as Thai baht. DEG also
provides consultancy and a network of specialists covering a wide range of
services.
The final presentation was of Thai-German Institute by
Walter Kretschmar, the institute’s German director.
Herbert Jaeger of DEG
Though sick from flu, Walter was able to keep everyone
glued to their seats with his lively and animated presentation.
Apart from the usual information on the TGI as being a
joint project of the Royal Thai Government, the Government of the Federal
Republic of Germany and the Federation of Thai Industries, as well as the
largest and most advanced independent training center for industrial
technologies in Thailand, Walter also mentioned the various projects on hand
at the institute that interested the industrial sectors who are looking for
a trained and experienced workforce for their companies.
Narong Rattana, the Thai director of TGI closed the
seminar, which was followed by an open forum for lunch and discussions.
After that a lucky prize draw took place. Three
participants of the event won a weekend for 2 in Koh Samui, including
flights and accommodation, a weekend for two in Pattaya at the Royal Cliff
Beach Resort, and a lunch voucher for two at the Nippon Tei Japanese
Restaurant in Amata Nakorn.
The seminar was concluded with positive comments from the
attendees as “informative, concise and friendly.”
The second seminar of this four series road show will
take place in September with exact date and place to be announced later.
Thailand BOI named Best Asia-Pacific Investment Promotion Agency
For the fourth time in 6 years, Thailand’s Board of
Investment (BOI) has been honored by an award from the prestigious
international publishing group, Euromoney. The latest award comes from
Strategic Direct Investor Magazine and names the BOI as “2003 Best
Asia-Pacific IPA in Attracting Manufacturing Investment.”
BOI Secretary General Somphong Wanapha accepted the award
from Samul Passow, Publisher of Euromoney’s International Investment Group
at a ceremony held at the Board of Investment on August 5.
Passow indicated that, “In addition to monetary value
the other major factor was quality of investment, taking into consideration
the impact the investments made on the overall economy, additional
investments from supplier groups, job creation and the development of
research and development capabilities.”
Somphong thanked Euromoney for recognizing the BOI’s
efforts to improve the investment environment for manufacturing in Thailand.
“Our focus on targeting investment in key sectors and developing
industry-specific policies for these target industries is paying off with
major investments in R&D, integrated supply chain manufacturing and
parts and components. It is gratifying that internationally-respected
organizations have recognized our efforts by naming Thailand #1 in
Asia-Pacific.”
One example of the sort of investment that led to this
award was the decision of Toyota Motors Corporation and its parts and
component suppliers to invest at least $700 million to expand its Thailand
operations, transforming it to become its global production base for pickup
trucks, diesel engines and minivans. After the upgrade, the value of vehicle
and diesel engine exports from Toyota’s Thai unit is expected to reach
$1.2 billion a year, and Thailand will also benefit from about 10,000 new
jobs and development of its skilled worker base.
The award is the result of collaboration between the
editorial staff of Euromoney publications and consultants from major
accounting and financial services firms. The winners are selected by an
independent panel of judges, based on their overall evaluation of both the
quantitative and qualitative evidence submitted by Euromoney’s editorial
department.
The Board of Investment had previously been named
Investment Promotion Agency of the Year and the BOI website (www.boi.go.th)
had twice been named as one of the top 5 investment promotion agencies in
the world by Euromoney’s Corporate Location magazine.
|
