HEADLINES [click on headline to view story]: 

Sharp fall in credit card spending during 1st quarter

Shinsat to launch Thaicom 5 satellite late May

Thailand’s economic growth rate, ASEAN rank, falls

SET index likely to surpass 800 in 2nd half-year, says fund manager

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Sharp fall in credit card spending during 1st quarter

Credit card spending fell by over Bt1 billion during the first quarter of this year as the public spent more cautiously and as a result of tight controls on plastic card use by the central bank.
According to latest statistics at the end of the first quarter released by the Bank of Thailand, there were over 10 million credit cards active at the end of March this year, compared to 9.9 million at the end of December last year. Credit card spending inside Thailand during the first quarter of this year was worth Bt45.2 billion (US$1.1 billion), down Bt1.1 billion (US$29 million) from the previous quarter at the end of 2005.
Meanwhile, credit card debt in the entire system totalled Bt143 billion (US$3.8 billion) at the end of March, up Bt111 million (US$3 million) compared to the previous quarter. Breakdown of the data shows that debt among cards issued by local and foreign banks has increased while those due for non-banks are also rising.
The overall picture is that the number of credit cards in use continues to rise. Scrutiny of credit card debt reveals a potential slowdown among locally-issued credit and commercial bank cards because of the Bank of Thailand’s strict oversight measures, including the requirement that credit card holders must have a minimum monthly income of Bt15,000 (US$397.82).
Another factor halting the credit card spending spree is that people are more cautious amid many volatile factors such as the unsettled economic outlook due to the political crisis, the energy price rise and the rise in interest rates.
However, the Bank of Thailand will keep a close watch on the worrying trend of rising debt level among cards issued by non-banks which make it easier for people to access credit because they require only Bt7,000 minimum (US$185.65)monthly income to qualify for a card.
The Bank of Thailand is concerned that although the volume of spending among non-bank issued cards is lower than those issued by commercial banks, the debt level of the two categories of card is the same. (TNA)
 

Shinsat to launch Thaicom 5 satellite late May

Shin Satellite Public Company Limited announced that it will launch its Thaicom 5 satellite into orbit by the end of May.
Shinsat executive Tanathit Charoenchan said Thaicom 5 will be able to provide service 15 days after the launch and the first major undertaking involves moving clients who are television broadcasters from Thaicom 3 to the new platform. The launch of Thaicom 5 and transfer of clients from Thaicom 3 will enable the company to recoup its investment rapidly, he said.
The next major challenge involves attempting to find more customers for Thaicom 4 for which two new gateways are being planned for coverage of China, India, Australia and New Zealand. The company is also speeding up to close deals with clients in Malaysia, Indonesia and Japan.
During the first quarter of 2006, Shinsat earned Bt1.9 billion in total revenue, with a net loss of Bt 58 million due to the depreciation of satellite assets and interest payments, something Mr Tanathit characterised as typical of the satellite business. Following depreciation costs, more revenues should be booked for the ensuing quarters. The company has sold 11,134 sets of terminal kits and sales for the entire year are projected at up to 100,000 sets.
The company’s revenue from phone service operations in Laos and Cambodia also increased by 26.5 per cent with nearly 900,000 clients in the two countries. Meanwhile, revenue from internet service by Lao Telecom and Kampuchea Shinawatra increased by 42 per cent. (TNA)

Thailand’s economic growth rate, ASEAN rank, falls

Soaring oil prices and political uncertainty are expected to slow Thailand’s economic growth to around 4-4.5 per cent in 2006, reducing it to rank sixth among members of the Association of Southeast Asian Nations (ASEAN) in terms of growth, according to a report issued by Kasikorn Research Centre.
This year, Vietnam, which has abundant crude oil and is little affected by the increase in global crude oil prices, will see its economy grow to some 7.6-8 per cent, making it the country enjoying the highest growth in ASEAN and second in Asia after China which is projected to see its economy expand to 9.5 per cent, the report said.
ASEAN members in 2006 are projected to enjoy an average economic growth of between 4-5.5 per cent while Thailand’s growth is expected to perform more sluggishly, at around 4-4.5 per cent, slightly below the average, putting it in last place among the leading countries of ASEAN.
While Vietnam and Thailand share an almost identical economic profile - in which trade, tourism and investment are the major driving forces, exports by Vietnam during the past decade grew more than four-fold to US$32.23 billion last year from only US$7.26 billion in 1996. Thailand’s exports during the same period almost doubled to US$110.88 billion last year from US$55.94 billion in 1996.
The Centre noted that Vietnamese exports would surpass Thailand’s in 14 years if Hanoi maintains its export growth at 20 per cent annually and Thailand’s exports grow on average at 10 per cent per year over the same period.
Foreign investors in the two countries are mainly from Taiwan, Japan, South Korea, Singapore, Hong Kong, Malaysia, Canada, the US and China, according to the report, adding that there are signs that more foreign investment would move from Thailand to neighbouring countries if political problems continue in this country. (TNA)

SET index likely to surpass 800 in 2nd half-year, says fund manager

The Stock Exchange of Thailand’s index is likely to stay above 800 points in the second half of this year due to a continued inflow of foreign funds into the bourse, according to a leading fund manager.
Maris Tarab, President of ING (Thailand) Asset Management Co, projected the index would rally and stay above such a level if foreign funds continued to flow into the stock market on an expectation that the country’s gross domestic product would grow at a rate of 4.5-4.7 per cent.
At the same time, investment in state-initiated mega-infrastructure projects would contribute to the country’s continued economic growth.
“We believe foreign funds will continue to flow into the Thai stock market if the economy still enjoys growth due to an expansion of tourism and exports although the new government has yet to be established”, he said. “As well, dividend yields offered by listed companies on the Thai bourse are still high while the price/earning ratio of the market is low.” (TNA)

 

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