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Bill passed to let some GPF members quit
The National Legislative Assembly (NLA) is offering old members of the Government Pension Fund (GPF) a chance to decide by next June if they want to revert back to the original system.
The GPF expects 200,000 members to leave, so it has to prepare to repay them about Bt40 billion. That will not be a problem for the fund, or its investments, as the level is still manageable, secretary-general Sombat Naravuthichai said yesterday.
Yesterday the NLA passed the Undo Act pertaining to the return to using the rights granted under the original civil-servant pension fund act of 1951.
The government will present the Undo Act to His Majesty the King for endorsement. After that, it will take about three or four weeks, or to early December, for the Undo Act to become effective.
The GPF expects to pay refunds to members wishing to leave the fund in the second half of next year. This would allow adequate time for the GPF to manage its liquidity, as the Undo Act would go into effect on December 1.
The choice is only for the 500,000 current members who joined the GPF before March 1997.
Growth forecast dips
The Finance Ministry has unofficially lowered its forecast for the country’s 2014 economic growth from 2 per cent to 1.7 per cent.
The move reflects the slowdown in exports caused by the sluggish economic recoveries of major trading partners and the changes in China’s expansion policy, permanent secretary Rungson Sriworasat said yesterday.
BBL backs Millcon Steel
Millcon Steel Industries has received Bt7 billion in credit for business restructuring from Bangkok Bank.
The steelmaker will also increase capital by Bt1.5 billion through a rights issue to its existing shareholders. The proceeds will be used to strengthen its financial status and support the planned purchase of Thai Special Steel Industry, chairman Winai Pattiyakul said yesterday.
Mutual funds grow
The mutual-fund industry grew by 22.5 per cent year on year in net asset value last quarter, according to Morningstar Research (Thailand). The SET Index yielded 22.1 per cent at the end of the third quarter, reflecting the mutual-fund industry’s consistent growth, the research agency said yesterday.
Ratch’s MYanmar deal
Ratchaburi Electricity Generating Holding yesterday signed a memorandum of understanding with Myanmar’s Hydropower Planning Department to start the feasibility study on a 2.64-gigawatt power plant in Mayiek using clean-coal technology.
Ratch has teamed up with Blue Energy and Environment, Vantage Co (Myanmar) and Kyaw Kyaw Phyo Co (Myanmar) to develop this project, CEO Pongdith Potchana said. If the study shows high potential, the development cost is estimated at Bt17 billion. The plant aims to use high-quality coal from Indonesia to generate power. It is expected to start generating electricity in 2020, he said.
