Briefs

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong has repeated his call for the Bank of Thailand (BOT) to cut its policy rate, insisting it is unnaturally high.

Speaking about measures to control capital movements and the baht’s rise, Kittiratt said the large gap between the Thai policy rate and the US federal funds rate was responsible for the constant inflow of foreign capital into Thailand, which has prompted the baht to appreciate. He said the BOT might need to slash the policy rate to narrow the difference. The Thai policy rate stands at 2.75 per cent, while the US rate is at 0.3 per cent.

On the government’s Bt2-trillion infrastructure investment plan, Kittiratt said that although the repayment period was about 50 years, the investment would likely boost Thailand’s gross domestic product to Bt100 trillion during the seven-year construction period. – The Nation

Strong week for baht

The baht saw its biggest weekly gain in two months this week as the country’s improving economy attracts fund inflows into the bond markets from abroad.

Cash is flowing into Thai assets as global investors shun Malaysia, which is close to an election, and Indonesia owing to its current-account deficit, Bank of Thailand Governor Prasarn Trairatvorakul said on Wednesday, adding that special measures to stem the inflows aren’t needed yet. The baht touched a 16-year high this week as options contracts betting on gains became more expensive than those used to protect against declines.

"Unlike Malaysia and Indonesia in Southeast Asia, Thailand doesn’t have a big concern that shakes the country at this moment," said Tsutomu Soma, manager of Rakuten Securities Inc’s fixed-income business unit department in Tokyo. "With lots of liquidity supplied by central banks in developed nations, funds are coming to Southeast Asia, and Thailand stands out with its economic growth and political stability."

The baht climbed 0.8 per cent this week, the most since the five-day period ended January 18, to 29.30 per dollar as of 3.19pm in Bangkok, according to data compiled by Bloomberg. The currency declined 0.3 per cent yesterday, having touched 29.08 on Wednesday, the strongest level since a devaluation sparked the Asian financial crisis in 1997.

Global funds purchased $442 million more sovereign debt than they sold this week through Thursday, taking this month’s net purchases to $2.5 billion, Thai Bond Market Association data show. Overseas funds poured in a net $2.7 billion in February and $3.7 billion in January. International investors sold a net $220 million of local equities this week through Thursday, exchange data show.

The yield on Thailand’s 3.625 per cent bonds due June 2023 dropped seven basis points this week to 3.55 per cent, the lowest level since February 8, data compiled by Bloomberg show. The rate declined three basis points on Thursday. – Bloomberg

 Farm output down

Agricultural output in the first quarter of this year dropped 0.4 per cent compared with the same period of last year due to the country’s drought, according to the Agriculture Ministry’s Office of Agricultural Economics.

However, the office has maintained its projection of output growth of between 3.4 per cent and 4.5 per cent this year based on expected strong demand in the world market in the second half of this year, said the office’s secretary, Apichart Chonsakul. – The Nation

Clarification sought

TV broadcasters have called for a clarification of the definition of cross-media ownership, particularly in a situation in which two holders of commercial digital TV licences seek to merge, as the National Broadcasting and Telecommunications Commission (NBTC) prepares to issue licences.

This issue was raised yesterday at the NBTC’s public hearing on the draft rules on spectrum selection for digital-TV broadcasting. TV broadcasters want to know if a merger of two licence-holders would be prohibited on grounds of violating the broadcasting laws. – The Nation

Underwear launch

UNIQLO has announced the global launch of AIRism, its new brand of highly functional underwear.

Under the slogan "comfort unlimited", UNIQLO is extending AIRism to its home market of Japan, increasing the product line-up by more than 70 per cent and launching a major marketing campaign across the 13 markets in which it currently operates stores, including Thailand. – The Nation

Spa convention at IMPACT in Sept

The Thai Spa Association (TSPA) will organise the World Spa & Well-being Convention under the management of IMPACT Exhibition Management Services from September 18 to 21 in Hall 4 at the IMPACT Exhibition and Convention Centre.

More than 5,000 visitors and over 100 exhibitors from around the world are expected to attend the event. With the Asean Economic Community around the corner, the event will feature Thai and international spa innovations and highlight the important role of the spa business for the continued growth of the tourism industry in the region.

According to Andrew Jacka, president of TSPA, WSWC will this year feature a theme of "water" across all aspects of the exhibition, congress and awards night.

Cosmetics exports to Myanmar boom

Thai cosmetics exports to Myanmar are expected to surge 40 per cent year on year in 2013 to US$140 million (Bt4.2 billion), according to Kasikorn Research Centre. In 2011, Myanmar imported cosmetic products from all markets worth $186.1 million, up from $96.9 million in 2008.

The largest share came from Thailand, followed by Singapore, China and South Korea. Myanmar people’s lifestyles are changing, and people are spending more on cosmetics, driven by the opening-up of the country to foreign investment, which has increased people’s purchasing power.

Gruenwald S&P’s top Asia economist

Standard & Poor’s Ratings Services has appointed Paul Gruenwald as chief economist for the Asia-Pacific region. Based in Singapore, Paul reports to Paul Sheard, chief global economist and head of global economics and research, and to Yu-Tsung Chang, executive managing director and head of Asia-Pacific.

Before joining Standard & Poor’s, Gruenwald spent almost five years at Australia and New Zealand Banking Group (ANZ) as chief economist, Asia-Pacific. He was responsible for helping set up and direct ANZ’s Asian and global economic research agenda, as well as building the bank’s economic research efforts and profile in Asia. Paul has also worked for the International Monetary Fund (IMF) and taught at Spain’s Universidad Carlos III in Madrid.

Gruenwald has a PhD in Economics from Columbia University in the US and a bachelor’s degree in economics/mathematics from the University of Texas. He has written and co-authored many articles and papers in academic and industry journals. A US national, Paul speaks fluent Spanish and has basic knowledge of Mandarin and French.

Minced pork joins Mama noodle family

Saha Pathanapibul, distributor of Mama instant noodles, has announced the launch of its latest offering in the Mama family – minced pork with added iron and vitamin A.

Mama minced pork flavour is now available at department stores, supermarkets and retail shop nationwide in a 60-gram pack for Bt6, a 90-gram pack for Bt8, a 42-gram small cup for Bt10, and a 60-gram cup for Bt13.

Fitch maintains MTL’s ratings

Fitch Ratings has affirmed Muang Thai Life Assurance Plc’s (MTL) International and National Insurer Financial Strength (IFS) ratings at ‘BBB+’ and ‘AA+(tha)’, respectively. The outlook is ‘Stable’.

The affirmation reflects MTL’s strengthened market position, strong and stable profitability and solid capitalisation.

The ratings also reflect support from its major shareholders, Ageas Insurance International NV and Kasikornbank, Thailand’s fourth-largest bank. Ageas provides operational and technical support, while KBank provides MTL with a strong bancassurance channel.

Nationwide Home Expo

The National Housing Authority of Thailand is holding Home Expo, offering 92 residential projects nationwide worth Bt17 billion at a starting price of Bt390,000 per unit, until March 31.

Homebuyers can join this event at all of the authority’s offices nationwide. This is a part of the agency’s celebrations of its 40th anniversary.

Swap old clothes for Lee jeans

Central Marketing Group (CMG), an importer and distributor of the Lee brand of jeans, has launched its latest marketing campaign, "Lee D Day", in which the first 10,000 customers who donate their old clothes to World Vision Foundation of Thailand will get a coupon worth Bt1,000. The coupons can be put towards purchases of Lee products totalling more than Bt3,000.