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Finance Minister Kittiratt Na-Ranong will propose on October 15 that the Cabinet extend tax exemption for community enterprises for three more years to enhance their competitiveness.

The measure, which expires this year, waives income tax on community enterprises whose assessable income does not exceed Bt1.8 million per year. This is aimed at promoting and relieving the burden of small-sized operators.

 

Ministers to meet over dispute

Energy Minister Pongsak Ruktapongpisal is seeking a meeting with Transport Minister Chadchart Sittipunt to resolve a dispute between two state enterprises.

State Railway of Thailand (SRT) and PTT have yet to reach an agreement on the rent for the 23-rai land where the PTT headquarters is located, though the leasing contract expired on March 31, 2013.

To renew the contract for another 30 years, SRT has demanded that PTT pay Bt59.73 million a year, a total of Bt1.79 billion.

Pongsak said yesterday that PTT may not be liable to pay anything, as the payment made under the original contract was at a high price.

SRT spent a year negotiating a new rent deal for the land where MBK Centre is located, and took six months to finalise a deal with Central Group for the Lat Phrao land plot. The loss-making agency is struggling to increase revenue.

 

Poverty risk for elderly Thais

 

More than 60-70 per cent of elderly Thais face the risk of becoming poor due to the absence of policies to deal with an ageing society, experts at a seminar said yesterday.

The number of Thais aged 60 years or above is expected to reach 32 per cent of total population in 30 years from now, leading to lower labour supply and negative impact on the overall economy, said Chutinart Wongsuban, deputy secretary-general of the National Economic and Social Development Board.

Independent academic Orapin Sopchokchai suggested that the retirement age be extended so as to increase the work span, income and savings. The government should also consider improvements in the social security system.

According to the NESDB, population in the working age showed an income deficit of Bt639 billion in 2012.

 

Nok Air takes off to Yangon

Nok Air yesterday launched its first international flight, to Yangon, yesterday.

CEO Patee Sarasin said that demand for the Bangkok-Yangon route was high, despite 2,000 seats being available per day on other Thailand-based airlines. Nok Air is confident that the load factor of this route would be at least 80 per cent.

He said the company is looking at the possibility of flying to other destinations in Myanmar, including Nay Pyi Taw, Mandalay and Bagan.

Despite the lower purchasing power and floods, he foresees brisk flying demand in the last quarter. This year’s average load factor would be around 87-88 per cent. Nok Air plans to enlarge the fleet with 16 more aircraft, with two Boeing 737-800 to be delivered this month.

 

Tisco Q3 profit up 18.8%

Tisco Financial Group, the parent company of Tisco Bank, reported an 18.8 per cent increase in third-quarter net profit.

The company, the first in the financial sector to report quarterly results, announced that its unaudited consolidated net profit in the quarter rose from Bt953 million in the same period last year to Bt1.13 billion. Interest income rose 25.5 per cent, on the back of a 24.8-per-cent growth in loan portfolio and the increase in spread from 3 per cent to 3.1 per cent.

The robust performance was despite the deceleration in domestic economic growth, amid softening private investment and consumption due partly to the relatively high level of household debt, along with the delay of government investment project. The recovery of the export sector also remained fragile in the quarter.

 

Loxley and Grand Sport

launch product range in Laos

Loxley and its partner Grand Sport Group, the Thai sport apparel and equipment manufacturer, have jointly launched products under the Grand Sport brand in Laos, while appointing Loxley’s Laosbased subsidiary Societe Commerciale Lao as sole distributor for the range.

Suraphand Bhasitnirandr, senior executive vice president of Loxley, yesterday said Grand Sport’s product debut in Laos marked another step in Loxley’s penetration of CLMV (Cambodia, Laos, Myanmar and Vietnam) markets, all of which it considers to have good potential.

Loxley has been in the CLMV markets for two years, and has a subsidiary in each of the four countries, as well as another in Guangzhou city, in southern China.

Thara Pluckchaoom, CEO of Grand Sport Group, said the company’s merchandise is wellknown in Asean.

The company realises that, with Loxley as a strong partner, there is a perfect opportunity to expand further into the region, starting with Laos, he added.