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Industrial confidence reverses decline, survey finds
The Industrial Confidence Index increased to 92.8 points last month, up from 90.4 in September, said Payungsak Chartsutipol, chairman of the Federation of Thai Industries. The survey polled 1,042 industrial operators in 42 sectors.
The higher confidence reflected various improvements witnessed by the industrial sector, including higher product orders and sales and manufacturing volumes, as well as better operational performances.
It is the first improvement in the index after a four-month decline. However, the October survey was conducted before the escalation of political protests, which are continuing.
“The Industrial Confidence Index is still at lower than 100 points, meaning that the confidence level of industrial operators is still not good because of their concerns about production costs and the higher prices of raw materials and energy. We need to monitor very closely whether the political demonstrations will have any impact on the confidence of industrial operators in November,” Payungsak said.
Industrialists have suggested that the government progress with its planned mega-projects to stimulate the overall economy, as well as work to solve the political conflicts and rebuild the confidence of foreign investors.
Meanwhile, the FTI has estimated that about 2.51 million automobiles will be manufactured in Thailand this year, down from 2.55 million units targeted earlier. The decline is due to this year’s flooding as well as the slowdown of domestic orders.
However, between 2.6 million and 2.7 million autos are expected to be manufactured next year, the federation says.
The FTI’s Automotive Industry Club found that 185,117 vehicles were manufactured in October, down 26.59 per cent from the same month last year, said club spokesman Surapong Paisitpattanapong.
Finance Ministry to sell 3-year savings bonds
The Finance Ministry has announced that it will issue three-year savings bonds worth no more than Bt4 billion at a fixed interest rate of 3.85 per cent per annum.
The minimum investment is Bt1,000 and the maximum Bt2 million (for 2,000 units). Investors can buy the bonds an unlimited number of times as long as the total purchase amount does not exceed Bt2 million at each participating bank.
The bond issue is aimed at promoting savings among retail investors and the general public.
The savings bonds will be available for purchase via ATM machines of four participating banks – Bangkok Bank, Krungthai Bank, Kasikornbank and Siam Commercial Bank – from December 2 through March 31.
IMF boss to visit 3 Asian countries
Christine Lagarde, managing director of the International Monetary Fund, will visit Asia from December 2-7, with Cambodia, South Korea and Myanmar as the destinations. On the list of people she will meet is Myanmar opposition leader Aung San Suu Kyi.
Gerry Rice, director of the IMF’s communications department, said Lagarde would be in Cambodia on December 2 and 3, where she is scheduled to meet with Deputy Prime Minister Keat Chhon and senior government officials to discuss recent economic developments in the region.
In South Korea, she will meet President Park Geun-hye and the central bank governor. In addition, she will participate in the opening ceremony of the United Nations Green Climate Fund and a signing ceremony with the minister of strategy and finance on Korea’s contribution to the IMF’s technical assistance programme.
She will then fly to Myanmar, where on December 6-7 she will meet with Minister of Finance and Revenue Win Shein, the governor of the country’s central bank, and other senior officials.
She will conclude her visit to Myanmar by addressing a women’s forum highlighting the role of women in the economy and discussing future economic opportunities for the country with students at the Yangon Institute of Economics.
Namyong Terminal looks forward to SET debut
Namyong Terminal, a wharf operator, will mark its first trading day on the Stock Exchange of Thailand on Monday under the ticker symbol NYT.
The company has a market capitalisation of Bt7.37 billion, having raised Bt2.44 billion from its initial public offering from November 13-15.
Chief executive officer Theparak Leungsuwan yestreday said some of the funds raised from the IPO would be used repay bank debt in order to reduce financial costs,
with the remainder would be reserved for business expansion and cash flow.
Namyong Terminal and its partner plan to invest in Laemchabang International Ro-Ro Terminal in order to cash in on the growth of the automobile industry as the government boosts Thailand as an auto production hub, he said.
Rallies dent Coca sales, threaten 2014 expansion
Coca Holding International, the owner of four major brands – Coca Suki, Coca Grill, Mango Tree and Bistro – may delay restaurant expansion planned for next year after facing a decline in sales revenue from outlets located near the sites of political rallies, brand manager Adinun Manasukjaroenporn said yesterday.
The company’s seven restaurants affected by the protests have witnessed a drop in sales of 20 per cent, resulting in overall revenue growth for the year likely falling below the target of 30 per cent.
The company must, therefore, adjust its business plan for next year and slow down its branch expansion, under which it previously aimed to open two new outlets per year.
Adinun said that the drop in revenue was due to the negative effects from domestic political problems, as well as the economic slowdown both in Thailand and globally.
The company hopes there will be more foreign tourists next month and that the political conflict will end soon, said the brand manager.
Adidas and Fifa extend World Cup partnership
One of the longest and most successful partnerships in modern sports marketing history will continue, with Fifa and adidas formally announcing an extension of their long-term partnership agreement granting Adidas the official partner, supplier and licensee rights for the World Cup and all other Fifa events until 2030.
The announcement was made during a ceremony in Moscow – host of the 2018 Fifa World Cup – by Thierry Weil, Fifa marketing director, and Herbert Hainer, adidas Group CEO.
Fifa and adidas have been partners since 1970, and this strategic commitment to the World Cup ensures an extensive adidas presence at the world’s most-watched sports event until 2030.
The contract offers adidas broad licensing and event rights around the World Cup.
The company will continue to supply the official match ball and provide unique uniforms for thousands of volunteers.
In addition, a wide range of adidas/Fifa World Cup licensed products will be on sale worldwide.
Among the other tournaments for which it secured rights through to 2030 are the Women’s World Cup and the Fifa U-20 World Cup.
