briefs

Japan Credit Rating Agency (JCR) is maintaining Thailand’s credit at “A-” with an outlook downgrade from “stable” to “negative”, citing the country’s economic slowdown with high risks after the political conflict erupted in the fourth quarter of 2013, said Chularat Suteethorn, director-general of the Public Debt Management Office.

JCR said the Thai economy had confronted prolonged political unrest since the fourth quarter of 2013, prompting an economic slowdown in light of contractions in both domestic and overseas demand. Last year’s fourth-quarter gross domestic product shrank 0.6 per cent year on year. GDP growth was 2.9 per cent for the whole of 2013, compared with 6.5 per cent in 2012.

The Japanese rating agency took the view that given the Thai government’s strong fiscal stance, stable banking system and robust international balance, there is little chance of a financial crisis or a foreign-currency credit crunch. However, the continued political chaos may stand as an obstacle for economic recovery in the future.

 

ICC sales down 20%

ICC International, a subsidiary of Saha Group that manufactures and markets fashion apparel, posted a sales drop of 20 per cent year on year in the first quarter, hit by the current political and economic difficulties. President Boonkiet Chokwattana said the company had adopted a strategy to reduce all costs by at least 10 per cent this year.

“We expect flat growth in sales this year,” he said.

 

Life insurance growing 

The Thai Life Assurance Association expects to see 12-per-cent growth in the domestic life-insurance market this year, with total premiums of Bt496 billion from various contributing factors. 

Last year, the  sector generated total premiums of Bt442.50 billion, up 13.1 per cent over 2012. 

 

Berli sees slow Q1

Berli Jucker’s first-quarter operations reflected the Thai economic slowdown, weaker domestic spending and the prolonged domestic political stalemate, said the company’s assistant vice president for investor relations, Metinee Isarachinda. However, it still hopes for revenue growth of 10-15 per cent this year, she said.