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The Commerce Ministry will expand its alliance of low-price fast-food outlets nationwide, targeting 5,000 by next year, from 1,000 shops in Bangkok and nearby provinces this year.

Jintana Chaiyawonnagal, director-general of the Internal Trade Department, said the project to encourage food traders to sell dishes priced at Bt25-Bt35 each would help consumers lower their spending by a total of Bt7 million to Bt8 million a day.

The ministry will proceed further with the project if it gets a good response from consumers. It will also support traders who join the project by supplying cheap rice, cooking oil, sugar, and raw materials.

 

Wattana invests in NMG

Wattana Capital’s board of directors has given the green light to acquire 250 million shares of Nation Multimedia Group, or 7.57 per cent of outstanding NMG shares, at Bt1.60 each from MBK. The total investment value will be under Bt400 million. 

According to Wattana Capital chief executive officer Siriwat Tovachirakul, this investment in NMG will allow his company the opportunity to benefit from the fast-growing media industry and digital-TV exposure while reaping a good return on investment and managing the firm’s liquidity effectively. 

Wattana Capital’s core business will still be in real estate.

 

Banks can cope: Fitch

Thai commercial banks have sufficient buffers to cope with a downturn, but they could be challenged if there is an economic slowdown that is more severe or protracted than expected, Fitch Ratings said in its “APAC Banks – Chart of the Month” report.

Loan growth has slowed over the past year, while capital levels are acceptable and non-performing loans (NPLs) appear to have stabilised, the report said. However, overall levels of private-sector and household leverage have remained high (at 154 per cent and 83 per cent of gross domestic product respectively), which could quickly lead to credit-quality concerns in an economic recession.

Fitch expects loan growth to pick up in the second half of this year as the business environment becomes more stable and pent-up investment is released. An increase in loan growth is also likely to contribute to greater deposit competition among banks, particularly when underlying trends in funding have already shown tighter liquidity conditions.

Meanwhile, Thailand’s largest commercial banks have improved their buffers in terms of capital and reserve coverage over the past five years, which will help them cope with a normal economic downturn, Fitch Ratings said. 

 

EPL on outdoor screens

Plan B Media, a leading out-of-home ad-media agency, will cooperate with pay-TV operator CTH to offer cross-platform advertising services to attract new clients. 

The two companies entered a business partnership to provide highlight programmes, schedules and results from the English Premier League’s current season though Plan B’s 100 digital outdoor screens across the Greater Bangkok, said Palin Lojanagosin, chief executive officer of Plan B.