Thai Business Insider
Exports expected to rebound in 2nd half
THE COMMERCE Ministry projects Thai exports will grow by 4 per cent in the second quarter and 7 per cent in the second half of the year, thanks to signs of recovery witnessed last month. The annualised export forecast remains at 5-per-cent growth, though, due to concerns over political instability.
"Thailand's shipments should show a stronger sign of recovery in the second quarter of the year. However, there is still high concern over the political conflict affecting traders' confidence," Srirat Rastapana, permanent secretary to the ministry, said yesterday.
Without political turbulence, the export sector should witness growth of 10 per cent, she said, adding that the sector was now also under the pressure of the upward trend of fuel prices, drought and unstable exchange rates.
Despite showing an increase, Thailand's export figures in February remained below market expectations, indicating weak global demand and low manufacturing activity at home.
DBS Research earlier expected that the monthly figures would show a 4.8-per-cent growth rate.
"We expected export growth to be slightly higher after the disappointing January number. For the most part, we remain of the view that export growth is the only bright spot for the economy at this point. But the risks are definitely abundant at this point.
"Both capacity utilisation and manufacturing production are still sliding. A close monitoring of these data is crucial going forward," said Gundy Cahyadi, economist of the Singapore-based research house.
Still, the figures were better than in January, when overall export value contracted year on year. The Commerce Ministry's data showed that export value in February grew 2.43 per cent from the same period last year to US$18.36 billion (Bt598 billion). Imports fell by 16.62 per cent to $16.59 billion, indicating weak domestic demand and resulting in a trade surplus of $1.76 billion.
In the first two months of the year, export value grew by just 0.2 per cent year on year to $36.27 billion, while import value sank 16 per cent to $37.02 billion. This produced a two-month trade deficit of $754 million.
According to a Foreign Trade Department survey of Thai traders, businesses planned to cut imports due to the downward trend in the baht, as many imports orders were completed last year when the unit appreciated against the US dollar.
Last month, agricultural exports dropped by 5.7 per cent, while industrial exports expanded by 6.8 per cent.
On the import side, gold imports dropped sharply from $2.17 billion in the same period last year to only $231 million. Despite some hurdles, the export sector will remain the key engine of the economy, given low domestic consumption and investment, said financial expert Somchai Pakapasvivat.
BBL seminar
Speaking at yesterday's Bangkok Bank "Start up ... the future of the Thai economy" seminar, he said the official 5-per-cent export growth target for the year would be under huge pressure, given the current export structure. Though the US economy started recovering last year, the sector has failed to cash in on the development because of low demand in the US for Thai products, he said.
"Thailand is the same as other emerging countries that are facing slower export growth. Industries that have to rely on labour and raw materials are ready to fade away from Thailand, and the export sector will gradually lose competitiveness if the country is unable to restructure its exports to high-value products," he said.
Kosit Panpiemras, executive chairman of Bangkok Bank, said on the sidelines of the seminar that Thai economic growth would remain at 3 per cent over the next one or two years, due mainly to the results of populist policies introduced in the past few years.
The policies have resulted in high household debt and lower loan quality, he explained, adding that Bangkok Bank was maintaining its loan-growth target of 5-6 per cent for this year.
Without political turbulence, the export sector should witness growth of 10 per cent, she said, adding that the sector was now also under the pressure of the upward trend of fuel prices, drought and unstable exchange rates.
Despite showing an increase, Thailand's export figures in February remained below market expectations, indicating weak global demand and low manufacturing activity at home.
DBS Research earlier expected that the monthly figures would show a 4.8-per-cent growth rate.
"We expected export growth to be slightly higher after the disappointing January number. For the most part, we remain of the view that export growth is the only bright spot for the economy at this point. But the risks are definitely abundant at this point.
"Both capacity utilisation and manufacturing production are still sliding. A close monitoring of these data is crucial going forward," said Gundy Cahyadi, economist of the Singapore-based research house.
Still, the figures were better than in January, when overall export value contracted year on year. The Commerce Ministry's data showed that export value in February grew 2.43 per cent from the same period last year to US$18.36 billion (Bt598 billion). Imports fell by 16.62 per cent to $16.59 billion, indicating weak domestic demand and resulting in a trade surplus of $1.76 billion.
In the first two months of the year, export value grew by just 0.2 per cent year on year to $36.27 billion, while import value sank 16 per cent to $37.02 billion. This produced a two-month trade deficit of $754 million.
According to a Foreign Trade Department survey of Thai traders, businesses planned to cut imports due to the downward trend in the baht, as many imports orders were completed last year when the unit appreciated against the US dollar.
Last month, agricultural exports dropped by 5.7 per cent, while industrial exports expanded by 6.8 per cent.
On the import side, gold imports dropped sharply from $2.17 billion in the same period last year to only $231 million. Despite some hurdles, the export sector will remain the key engine of the economy, given low domestic consumption and investment, said financial expert Somchai Pakapasvivat.
BBL seminar
Speaking at yesterday's Bangkok Bank "Start up ... the future of the Thai economy" seminar, he said the official 5-per-cent export growth target for the year would be under huge pressure, given the current export structure. Though the US economy started recovering last year, the sector has failed to cash in on the development because of low demand in the US for Thai products, he said.
"Thailand is the same as other emerging countries that are facing slower export growth. Industries that have to rely on labour and raw materials are ready to fade away from Thailand, and the export sector will gradually lose competitiveness if the country is unable to restructure its exports to high-value products," he said.
Kosit Panpiemras, executive chairman of Bangkok Bank, said on the sidelines of the seminar that Thai economic growth would remain at 3 per cent over the next one or two years, due mainly to the results of populist policies introduced in the past few years.
The policies have resulted in high household debt and lower loan quality, he explained, adding that Bangkok Bank was maintaining its loan-growth target of 5-6 per cent for this year.
Invest in foreign bonds to spread risk, KAsset recommends
KASIKORN ASSET Management is encouraging Thai investors to venture into foreign bond markets to spread out risk and respond to the increasing need to shield themselves from the current political turbulence at home.
"Investment in bonds is crucial for one's portfolio because it can help spread out investment risks from venturing into the stock market only," said Chongrak Rattanapian, executive chairman of KAsset.
He said investment in global bonds was interesting because not only could it spread risk and reduce the effects of fluctuations of equity instruments, venturing into foreign bond markets could also provide opportunities for a high rate of return.
Navin Intharasombat, first senior vice president of KAsset, said investment in bonds was less vulnerable to fluctuations than other assets, which made them suitable for investors with low tolerance for risk.
Navin said that since global bonds had little correlation with other assets, they were suitable to be included in investor portfolios to lower and diversify risks. When there are economic crises and fluctuations in the currency market, bond investment usually has a better rate of return than equity instruments.
KAsset sees developed markets, especially the United States, Europe and Japan, as primary targets for bond investment because their economies appear to be recovering.
Prasert Khanobthamchai, executive vice president of KAsset, said emerging markets' growth was slowing relative to the past few years and the developed markets were coming back. The US seems to be the most confident in its recovery as evidenced by the tapering of its quantitative-easing (QE) stimulus package.
Prasert said Europe and Japan were still relying on stimulus packages to improve their economies and would take a year or two to recover fully, since a large amount of money is still being injected into those markets.
He said the fund outflows from developing markets triggered by QE tapering in the US were easing.
"Emerging markets are not afraid of QE tapering any more as currencies in these markets are getting stronger, including Thailand, since the baht has come back from a 33 average [per US dollar] to a 32 average in past months," he said. Chongrak said the risks from QE tapering by the US Federal Reserve, which could increase US government bond yields, had been calculated by Kasikorn Asset.
It has changed the duration of its core private bond investments to 1.6 years (as of February 28) as well as increasing the weight of its investment in private bonds for emerging markets that have strong basic financial structures and suitable yield when compared with risk.
"Kasikorn Asset is confident that this strategy will be able to respond to the increased rate of return for US government bonds and cope with an increase of the US interest rate," he said.
The company's assets under management are above Bt1 trillion and expected to grow by 10 per cent this year, he said.
The company has also launched "K Global Bond Fund" (K-GB) to respond to the increasing and varied needs of its customers and has appointed a new managing director, Pongpichet Nananukool, to oversee management at the administrative level.
He said investment in global bonds was interesting because not only could it spread risk and reduce the effects of fluctuations of equity instruments, venturing into foreign bond markets could also provide opportunities for a high rate of return.
Navin Intharasombat, first senior vice president of KAsset, said investment in bonds was less vulnerable to fluctuations than other assets, which made them suitable for investors with low tolerance for risk.
Navin said that since global bonds had little correlation with other assets, they were suitable to be included in investor portfolios to lower and diversify risks. When there are economic crises and fluctuations in the currency market, bond investment usually has a better rate of return than equity instruments.
KAsset sees developed markets, especially the United States, Europe and Japan, as primary targets for bond investment because their economies appear to be recovering.
Prasert Khanobthamchai, executive vice president of KAsset, said emerging markets' growth was slowing relative to the past few years and the developed markets were coming back. The US seems to be the most confident in its recovery as evidenced by the tapering of its quantitative-easing (QE) stimulus package.
Prasert said Europe and Japan were still relying on stimulus packages to improve their economies and would take a year or two to recover fully, since a large amount of money is still being injected into those markets.
He said the fund outflows from developing markets triggered by QE tapering in the US were easing.
"Emerging markets are not afraid of QE tapering any more as currencies in these markets are getting stronger, including Thailand, since the baht has come back from a 33 average [per US dollar] to a 32 average in past months," he said. Chongrak said the risks from QE tapering by the US Federal Reserve, which could increase US government bond yields, had been calculated by Kasikorn Asset.
It has changed the duration of its core private bond investments to 1.6 years (as of February 28) as well as increasing the weight of its investment in private bonds for emerging markets that have strong basic financial structures and suitable yield when compared with risk.
"Kasikorn Asset is confident that this strategy will be able to respond to the increased rate of return for US government bonds and cope with an increase of the US interest rate," he said.
The company's assets under management are above Bt1 trillion and expected to grow by 10 per cent this year, he said.
The company has also launched "K Global Bond Fund" (K-GB) to respond to the increasing and varied needs of its customers and has appointed a new managing director, Pongpichet Nananukool, to oversee management at the administrative level.
Plunge seen in project launches in Bangkok and suburbs
THE NUMBER of new residential projects launched in Bangkok and its suburbs this year is likely to be between 25 per cent and 35 per cent down on last year's level, with developers deciding to delay many of their new projects, according to property experts and research houses. The number of new homes transferred to customers in greater Bangkok, meanwhile, is forecast to decline by between 2.5 per cent and 9.4 per cent from the 2013 |level, when 143,543 units were delivered.
The forecasts reflect the country's slowing economy, which is expected by some to expand by less than 3 per cent this year, and the fact that the political turmoil is now spilling over into the second quarter.
KasikornResearch managing director Charl Kengchon told yesterday's "Mortgage lending in 2013 and Outlook for 2014" seminar, conducted by the Housing Finance Association, that the research house may revise its economic-growth forecast to below the current 3 per cent, as it was now likely that the country would not have a new government until the second half of the year.
Such a delay will impact directly on the Kingdom's economic growth as the government's budget for the fiscal year 2014/2015 will be delayed, while purchasing power has fallen following the continued rise in household debt, he said.
Slower growth will in turn negatively affect the property market and new mortgage lending this year, he added.
Meanwhile, KasikornResearch expects the residential market in greater Bangkok to see 75,500- 85,500 new units launched this year, some 35 per cent to 42.6 per cent lower than last year's 131,550 homes.
Its research also found signs that residential transfers from developers to customers would drop by between 2.5 per cent and 9.4 per cent, at 130,000-140,000 units compared with 143,543 units last year.
Bangkok Bank's research house, meanwhile, forecasts that new registrations and transfers this year will fall by between 2 per cent and 5.8 per cent, due to lower purchasing power.
However, the unit believes new mortgage lending will continue to grow by 3.9-6.1 per cent during the course of the year.
"Although new mortgage lending will still expand, the rate will be lower than last year, when growth of 10.9 per cent was recorded," the research house said.
Chatchai Payuhanaveechai, executive vice president of Kasikornbank, told the seminar that the bank estimated new mortgage lending across the market would be worth Bt560 billion this year, up 6.5 per cent from last year, while non-performing loans would be maintained at 2.3 per cent of the combined value of outstanding home loans.
Mortgage lending will still grow because customers who put a deposit on a new home in 2011 |and 2012 can now have their property transferred to them, he explained.
KasikornResearch managing director Charl Kengchon told yesterday's "Mortgage lending in 2013 and Outlook for 2014" seminar, conducted by the Housing Finance Association, that the research house may revise its economic-growth forecast to below the current 3 per cent, as it was now likely that the country would not have a new government until the second half of the year.
Such a delay will impact directly on the Kingdom's economic growth as the government's budget for the fiscal year 2014/2015 will be delayed, while purchasing power has fallen following the continued rise in household debt, he said.
Slower growth will in turn negatively affect the property market and new mortgage lending this year, he added.
Meanwhile, KasikornResearch expects the residential market in greater Bangkok to see 75,500- 85,500 new units launched this year, some 35 per cent to 42.6 per cent lower than last year's 131,550 homes.
Its research also found signs that residential transfers from developers to customers would drop by between 2.5 per cent and 9.4 per cent, at 130,000-140,000 units compared with 143,543 units last year.
Bangkok Bank's research house, meanwhile, forecasts that new registrations and transfers this year will fall by between 2 per cent and 5.8 per cent, due to lower purchasing power.
However, the unit believes new mortgage lending will continue to grow by 3.9-6.1 per cent during the course of the year.
"Although new mortgage lending will still expand, the rate will be lower than last year, when growth of 10.9 per cent was recorded," the research house said.
Chatchai Payuhanaveechai, executive vice president of Kasikornbank, told the seminar that the bank estimated new mortgage lending across the market would be worth Bt560 billion this year, up 6.5 per cent from last year, while non-performing loans would be maintained at 2.3 per cent of the combined value of outstanding home loans.
Mortgage lending will still grow because customers who put a deposit on a new home in 2011 |and 2012 can now have their property transferred to them, he explained.
'Aim high', THAI told
THAI AIRWAYS International's new chairman Prajin Juntong yesterday expressed concern over the national carrier's poor financial performance and asked management to work even harder to beat barriers to turn its ailing operation profitable again.
''The chairman tells us to 'aim high' at a time the company is facing a crisis,'' acting president Chokchai Panyayong said.
Prajin wants the airline to become stronger, so the role of the committee tasked with increasing work efficiency should be tightened to help the company save operating costs and also minimise work complexity.
The risk management committee would also play a greater role in handling effectively possible problems such as foreign exchange and fuel-price swings.
It was the first time for Prajin to chair a board meeting after he was appointed on March 10 to succeed Ampon Kittiampon, who resigned mid-term.
Prajin did not fulfil his commitment to appear at the afternoon press conference. A THAI public relations officer said the board meeting was long and left him no time to meet the media.
Eventually, Chokchai, also senior executive vice president for strategy and business development, was asked by PR to answer unclear issues against the backdrop of the morning rally at the head office on Vibhavadi-Rangsit Road.
Prajin's first meeting was challenged by a protest at 9am of 150-200 members of two employees' unions - the Thai Airways International Union and Wingspan Workers' Union.
The THAI Union in a statement urged the board to refuse any involvement of ex-chairman Ampon in positions or operating committees. Ampon, who remains a board member, has already taken positions in government agencies and educational institutions and this left him no time to contribute to THAI. Most important, he had also mismanaged the carrier, resulting in its losing Bt12 billion last year, it said.
The Wingspan Workers' Union, whose staff works with Wingspan Services Co, a THAI subsidiary, called for Prajin to treat them fairly with good benefits. They have suffered from unstable jobs with a blurred future, they said. Wingspan has an outsourcing contract with THAI to supply staff to the carrier. Under the agreement, more than 3,000 people are working with THAI, mainly as day hires.
Samart Pantang, president of Wingspan Workers' Union, submitted a letter to Prajin and he accepted it for consideration. He did not show any commitment to the union, but said generally that he wanted everybody in operations to work happily.
Samart said that if the problem is not solved, the union will stage a work stoppage on Tuesday.
Chokchai said he was not worried about a protest on April 1. The union can do it under labour laws for employees, while THAI can respond under labour laws for employers.
Prajin wants the airline to become stronger, so the role of the committee tasked with increasing work efficiency should be tightened to help the company save operating costs and also minimise work complexity.
The risk management committee would also play a greater role in handling effectively possible problems such as foreign exchange and fuel-price swings.
It was the first time for Prajin to chair a board meeting after he was appointed on March 10 to succeed Ampon Kittiampon, who resigned mid-term.
Prajin did not fulfil his commitment to appear at the afternoon press conference. A THAI public relations officer said the board meeting was long and left him no time to meet the media.
Eventually, Chokchai, also senior executive vice president for strategy and business development, was asked by PR to answer unclear issues against the backdrop of the morning rally at the head office on Vibhavadi-Rangsit Road.
Prajin's first meeting was challenged by a protest at 9am of 150-200 members of two employees' unions - the Thai Airways International Union and Wingspan Workers' Union.
The THAI Union in a statement urged the board to refuse any involvement of ex-chairman Ampon in positions or operating committees. Ampon, who remains a board member, has already taken positions in government agencies and educational institutions and this left him no time to contribute to THAI. Most important, he had also mismanaged the carrier, resulting in its losing Bt12 billion last year, it said.
The Wingspan Workers' Union, whose staff works with Wingspan Services Co, a THAI subsidiary, called for Prajin to treat them fairly with good benefits. They have suffered from unstable jobs with a blurred future, they said. Wingspan has an outsourcing contract with THAI to supply staff to the carrier. Under the agreement, more than 3,000 people are working with THAI, mainly as day hires.
Samart Pantang, president of Wingspan Workers' Union, submitted a letter to Prajin and he accepted it for consideration. He did not show any commitment to the union, but said generally that he wanted everybody in operations to work happily.
Samart said that if the problem is not solved, the union will stage a work stoppage on Tuesday.
Chokchai said he was not worried about a protest on April 1. The union can do it under labour laws for employees, while THAI can respond under labour laws for employers.
FTI chairman-hopeful's legal team goes to court over election of selection panel
AN INTERNAL conflict regarding the election of a new chairman of the Federation of Thai Industries (FTI) has continued, as a legal team supporting Visit Limprana, one of the two candidates, has filed a petition to the Central Administrative Court to nullify the result of the election for the chairman selection committee.
The election for the selection committee on March 17 was marred by allegations of irregularities.
Supan Mongkolsuthee, president of Synnex (Thailand), and Visit, chairman of the federation's Food Processing Club, have been competing to succeed FTI chairman Payungsak Chartsutipol, who will step down next month. Then the selection committee, which consists of 232 elected commissioners and 116 appointed ones, will elect the new chairman on April 8.
The March 17 election of the committee put Supan in a favoured position because the majority of the 232 elected commissioners are his supporters. But allegations of irregularities have led Visit's legal team to challenge the result of the election.
The legal team has filed a petition to annul the election, claiming that the process was not transparent because there was no central ballot booth. It also alleges that non-eligible members had |cast ballots in place of eligible persons.
"We are filing the petition to the court first, and we will have to wait for one week to see whether the court will accept it," said lawyer Teerawut Prakaisantisuk, a member of Visit's supporting team.
However, despite the claim of irregularities, Vallop Vitanakorn, vice chairman of the FTI and member of Supan's support group, said next month's election for chairman would continue. He argued that the FTI election process was as transparent as it has been for the past 10 years.
"We have to stick to our regulations that have been practised for 10 years, and the latest election was in accord with all the regulations," he said.
He said the reason there was no central ballot booth was that there had never been on in any previous elections, including those that had been organised by members of the rival team.
"The election was transparent, and I urged Visit's supporting team to stop the allegations, because Visit has already congratulated Suphan," Vallop said. "Suphan wanted reconciliation and he has maintained that he wanted to work with Visit in order to continue with the development of the FTI."
Supan Mongkolsuthee, president of Synnex (Thailand), and Visit, chairman of the federation's Food Processing Club, have been competing to succeed FTI chairman Payungsak Chartsutipol, who will step down next month. Then the selection committee, which consists of 232 elected commissioners and 116 appointed ones, will elect the new chairman on April 8.
The March 17 election of the committee put Supan in a favoured position because the majority of the 232 elected commissioners are his supporters. But allegations of irregularities have led Visit's legal team to challenge the result of the election.
The legal team has filed a petition to annul the election, claiming that the process was not transparent because there was no central ballot booth. It also alleges that non-eligible members had |cast ballots in place of eligible persons.
"We are filing the petition to the court first, and we will have to wait for one week to see whether the court will accept it," said lawyer Teerawut Prakaisantisuk, a member of Visit's supporting team.
However, despite the claim of irregularities, Vallop Vitanakorn, vice chairman of the FTI and member of Supan's support group, said next month's election for chairman would continue. He argued that the FTI election process was as transparent as it has been for the past 10 years.
"We have to stick to our regulations that have been practised for 10 years, and the latest election was in accord with all the regulations," he said.
He said the reason there was no central ballot booth was that there had never been on in any previous elections, including those that had been organised by members of the rival team.
"The election was transparent, and I urged Visit's supporting team to stop the allegations, because Visit has already congratulated Suphan," Vallop said. "Suphan wanted reconciliation and he has maintained that he wanted to work with Visit in order to continue with the development of the FTI."
Plunge seen in project launches in Bangkok and suburbs
THE NUMBER of new residential projects launched in Bangkok and its suburbs this year is likely to be between 25 per cent and 35 per cent down on last year's level, with developers deciding to delay many of their new projects, according to property experts and research houses. The number of new homes transferred to customers in greater Bangkok, meanwhile, is forecast to decline by between 2.5 per cent and 9.4 per cent from the 2013 |level, when 143,543 units were delivered.
The forecasts reflect the country's slowing economy, which is expected by some to expand by less than 3 per cent this year, and the fact that the political turmoil is now spilling over into the second quarter.
KasikornResearch managing director Charl Kengchon told yesterday's "Mortgage lending in 2013 and Outlook for 2014" seminar, conducted by the Housing Finance Association, that the research house may revise its economic-growth forecast to below the current 3 per cent, as it was now likely that the country would not have a new government until the second half of the year.
Such a delay will impact directly on the Kingdom's economic growth as the government's budget for the fiscal year 2014/2015 will be delayed, while purchasing power has fallen following the continued rise in household debt, he said.
Slower growth will in turn negatively affect the property market and new mortgage lending this year, he added.
Meanwhile, KasikornResearch expects the residential market in greater Bangkok to see 75,500- 85,500 new units launched this year, some 35 per cent to 42.6 per cent lower than last year's 131,550 homes.
Its research also found signs that residential transfers from developers to customers would drop by between 2.5 per cent and 9.4 per cent, at 130,000-140,000 units compared with 143,543 units last year.
Bangkok Bank's research house, meanwhile, forecasts that new registrations and transfers this year will fall by between 2 per cent and 5.8 per cent, due to lower purchasing power.
However, the unit believes new mortgage lending will continue to grow by 3.9-6.1 per cent during the course of the year.
"Although new mortgage lending will still expand, the rate will be lower than last year, when growth of 10.9 per cent was recorded," the research house said.
Chatchai Payuhanaveechai, executive vice president of Kasikornbank, told the seminar that the bank estimated new mortgage lending across the market would be worth Bt560 billion this year, up 6.5 per cent from last year, while non-performing loans would be maintained at 2.3 per cent of the combined value of outstanding home loans.
Mortgage lending will still grow because customers who put a deposit on a new home in 2011 |and 2012 can now have their property transferred to them, he explained.
KasikornResearch managing director Charl Kengchon told yesterday's "Mortgage lending in 2013 and Outlook for 2014" seminar, conducted by the Housing Finance Association, that the research house may revise its economic-growth forecast to below the current 3 per cent, as it was now likely that the country would not have a new government until the second half of the year.
Such a delay will impact directly on the Kingdom's economic growth as the government's budget for the fiscal year 2014/2015 will be delayed, while purchasing power has fallen following the continued rise in household debt, he said.
Slower growth will in turn negatively affect the property market and new mortgage lending this year, he added.
Meanwhile, KasikornResearch expects the residential market in greater Bangkok to see 75,500- 85,500 new units launched this year, some 35 per cent to 42.6 per cent lower than last year's 131,550 homes.
Its research also found signs that residential transfers from developers to customers would drop by between 2.5 per cent and 9.4 per cent, at 130,000-140,000 units compared with 143,543 units last year.
Bangkok Bank's research house, meanwhile, forecasts that new registrations and transfers this year will fall by between 2 per cent and 5.8 per cent, due to lower purchasing power.
However, the unit believes new mortgage lending will continue to grow by 3.9-6.1 per cent during the course of the year.
"Although new mortgage lending will still expand, the rate will be lower than last year, when growth of 10.9 per cent was recorded," the research house said.
Chatchai Payuhanaveechai, executive vice president of Kasikornbank, told the seminar that the bank estimated new mortgage lending across the market would be worth Bt560 billion this year, up 6.5 per cent from last year, while non-performing loans would be maintained at 2.3 per cent of the combined value of outstanding home loans.
Mortgage lending will still grow because customers who put a deposit on a new home in 2011 |and 2012 can now have their property transferred to them, he explained.
GM plans to join govt eco-car scheme with new Chevrolet
The auto industry is expected to get a big boost from GM Thailand's decision to join Phase 2 of the government's ambitious eco-car scheme.
The Board of Investment's deadline for applications for the new phase is the end of this month.
Marcos Purty, the new managing director of General Motors Thailand, said yesterday that the company's intent to develop a new Chevrolet car for production in Thailand was well aligned with the objective of the eco-car programme.
"By submitting this application, GM reaffirms its commitment to invest in Thailand and make Rayong a strategic hub for global exports. Additionally, this investment will bolster our long-term commitment to the excellent regional supplier network," he said at the unveiling of the 2014 Captiva at the Bangkok International Motor Show, which opens for the general public today.
Before GM, Ford and Mazda had expressed interest in the eco-car scheme. All five brands from the first phase - Nissan, Toyota, Honda, Suzuki and Mitsubishi - are expected to apply for the next phase.
The specifications for Phase 2 are for the vehicle to be all new, fuel-efficient, environmentally friendly, safe, low-cost, and available for sale throughout the region by the end of the decade. Eco-cars are expected to use many locally produced components, including for powertrains.
The second phase is part of the country's plan to boost annual car production to 3 million units and further strengthen its standing in Asean. It will also raise the country's manufacturing quality and ensure that the eco-cars match the standards of developed markets like North America and Europe.
The vehicles must emit less than 100 grams of carbon dioxide per kilometre.
In return for their investment, which is expected to approach Bt6.5 billion, manufacturers will be granted incentives like a 90-per-cent waiver of import duties on parts.
The Thai auto industry is now driven by exports, as previously inflated domestic demand weakens. Auto sales in the first two months plunged by 45 per cent year on year to slightly over 140,000 units.
However, auto companies expect the annual motor show running until April 6 at Muang Thong Thani to propel local demand. The show should generate 35,000 orders for auto companies, event organiser Prachin Eamlumnow said.
There are many new models and promotions to woo customers, but the political situation is denting sales.
"We can't deny that the political situation has created a negative effect on the market, but the large number of new models being launched should help stimulate demand," he said.
The event, considered the largest of its kind in Asean, showcases 28 automobile and seven motorcycle brands.
Pitak Pruittisarikorn, chief operating officer of Honda Automobile Co, said automakers were unable to predict the long-term market situation because of the political chaos.
"We can't judge the future market from the present situation and we are hoping that things will cool down in a month or two. Only when it ends will we be able to come up with accurate figures," he said.
Carmakers must operate with high flexibility and follow the situation closely to minimise the damage, he said. Many will be looking for ways to increase shipments abroad to offset the decline in the domestic market, but that won't be easy.
"Export plans are managed by the parent company and are difficult to change. Nevertheless, every company with production will have to try to find ways to increase exports based on each company's situation," Pitak said.
Honda
Honda estimates that the domestic auto market will reach 1.1 million units this year, but some at GM believe that it could drop to a million.
Gustavo Colossi, vice president for sales and marketing at Chevrolet Sales Thailand Co, said a clearer picture would be seen in a week.
"March is considered as a critical month for auto sales, so the end of this month will give us a better hint of the future," he said.
While Toyota and Honda will be enjoying brisk sales from the Corolla Altis and minor-change Civic, Mazda will be aiming to win a large slice of the C-segment (the third-smallest category) with the all-new Mazda3, which is its first model assembled in Thailand to feature full SKYACTIV technology.
In the luxury market, BMW is highlighting its i8 hybrid sports car as well as the 2 and 4 Series, while Porsche is offering new models and such variants as the Macan SUV and 911 Turbo S. Mercedes-Benz is staging the Aseanlaunch of the new C-Class and GLA-Class, the latter based on the A-Class platform
Marcos Purty, the new managing director of General Motors Thailand, said yesterday that the company's intent to develop a new Chevrolet car for production in Thailand was well aligned with the objective of the eco-car programme.
"By submitting this application, GM reaffirms its commitment to invest in Thailand and make Rayong a strategic hub for global exports. Additionally, this investment will bolster our long-term commitment to the excellent regional supplier network," he said at the unveiling of the 2014 Captiva at the Bangkok International Motor Show, which opens for the general public today.
Before GM, Ford and Mazda had expressed interest in the eco-car scheme. All five brands from the first phase - Nissan, Toyota, Honda, Suzuki and Mitsubishi - are expected to apply for the next phase.
The specifications for Phase 2 are for the vehicle to be all new, fuel-efficient, environmentally friendly, safe, low-cost, and available for sale throughout the region by the end of the decade. Eco-cars are expected to use many locally produced components, including for powertrains.
The second phase is part of the country's plan to boost annual car production to 3 million units and further strengthen its standing in Asean. It will also raise the country's manufacturing quality and ensure that the eco-cars match the standards of developed markets like North America and Europe.
The vehicles must emit less than 100 grams of carbon dioxide per kilometre.
In return for their investment, which is expected to approach Bt6.5 billion, manufacturers will be granted incentives like a 90-per-cent waiver of import duties on parts.
The Thai auto industry is now driven by exports, as previously inflated domestic demand weakens. Auto sales in the first two months plunged by 45 per cent year on year to slightly over 140,000 units.
However, auto companies expect the annual motor show running until April 6 at Muang Thong Thani to propel local demand. The show should generate 35,000 orders for auto companies, event organiser Prachin Eamlumnow said.
There are many new models and promotions to woo customers, but the political situation is denting sales.
"We can't deny that the political situation has created a negative effect on the market, but the large number of new models being launched should help stimulate demand," he said.
The event, considered the largest of its kind in Asean, showcases 28 automobile and seven motorcycle brands.
Pitak Pruittisarikorn, chief operating officer of Honda Automobile Co, said automakers were unable to predict the long-term market situation because of the political chaos.
"We can't judge the future market from the present situation and we are hoping that things will cool down in a month or two. Only when it ends will we be able to come up with accurate figures," he said.
Carmakers must operate with high flexibility and follow the situation closely to minimise the damage, he said. Many will be looking for ways to increase shipments abroad to offset the decline in the domestic market, but that won't be easy.
"Export plans are managed by the parent company and are difficult to change. Nevertheless, every company with production will have to try to find ways to increase exports based on each company's situation," Pitak said.
Honda
Honda estimates that the domestic auto market will reach 1.1 million units this year, but some at GM believe that it could drop to a million.
Gustavo Colossi, vice president for sales and marketing at Chevrolet Sales Thailand Co, said a clearer picture would be seen in a week.
"March is considered as a critical month for auto sales, so the end of this month will give us a better hint of the future," he said.
While Toyota and Honda will be enjoying brisk sales from the Corolla Altis and minor-change Civic, Mazda will be aiming to win a large slice of the C-segment (the third-smallest category) with the all-new Mazda3, which is its first model assembled in Thailand to feature full SKYACTIV technology.
In the luxury market, BMW is highlighting its i8 hybrid sports car as well as the 2 and 4 Series, while Porsche is offering new models and such variants as the Macan SUV and 911 Turbo S. Mercedes-Benz is staging the Aseanlaunch of the new C-Class and GLA-Class, the latter based on the A-Class platform
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