Financial ministry lauds country's fiscal strength

Deputy Finance Minister Wisut Srisuphan said after visiting the General Comptroller’s Department that the treasury reserve remained strong and was sufficient for the government’s planned expenditure.

While the reserve may later fall to about Bt110 billion due to the acceleration of budget disbursement for investment, the treasury balance is expected to reach Bt370 billion at the end of the fiscal year in September due to additional tax revenue, he said.

Given its economic stability – with high foreign reserves, low inflation and low unemployment – Thailand is seen to have creditworthiness to deal with any economic volatility. 

During the first quarter of fiscal year 2015, budget disbursement has totalled Bt930 billion, said the deputy minister. 

Referring to members of the Government Pension Fund being able to use their pension rights, he said: “About 70-80 per cent of retired GPF members are expected to exercise their rights. The fund may spend about Bt30 billion on this, but this should be no problem because it has about Bt700 billion in hand. The ministry may spend Bt50 billion on pensions for this group, but it should not significantly affect its [financial] status.”

Krisada Chinavicharana, director-general of the Fiscal Policy Office, said that in cash terms, government revenue sent to the ministry totalled Bt312.29 billion for the first two months of the fiscal year, down 6.1 per cent year on year. 

Budget disbursement was up 11.5 per cent at Bt573.36 billion. With an off-balance budget deficit of Bt17.63 billion, the government’s cash balance was in deficit to the tune of Bt278.7 billion

The government made borrowings of Bt25.82 billion, leaving a cash deficit of Bt252.88 billion.

At the end of November, the treasury balance totalled Bt242.87 billion.

“Disbursement was higher than in the same period of last [fiscal] year, reflecting acceleration of the state disbursement. This will help the economy to expand consistently,” he said.

 

 

‘TFEX BEST AWARDS’ 

WINNERS ANNOUNCED

The Thailand Futures Exchange has announced the winners in the six categories of the “TFEX Best Awards 2014”, with KGI Securities (Thailand) sweeping three categories for the second consecutive year.

The company was named the “Most Active House 2014” for having the highest derivatives trading volume; the “Most Active Prop-Trader 2014” for making the most proprietary trading transactions; and the “Best Market Maker for Equity Products 2014”.

Maybank Kim Eng Securities (Thailand) was the “Most Active Agent 2014”. 

The “Best Market Maker for Precious Metal Products 2014” was MTS Gold Futures, while Krung Thai Bank was the “Best Market Maker for Currency Products 2014”.

TFEX managing director Rinjai Chakornpipat said: “TFEX has achieved its set target this year, despite internal and external turbulence, due to the continuous support of all members, in helping to improve and promote products and services to better serve investors’ needs. 

“In 2015, we will work together with members to enhance product liquidity, develop tools to support investors’ decision-making, while expanding the investor base both domestically and internationally to promote TFEX’s sustainable growth.”

 

Foreign Trade Department extends 

service hours in the run-up to New Year

The Foreign Trade Department has extended its service hours for enterprises in order to facilitate trade before the New Year festive period.

Director-general Duangporn Rodphaya yesterday said that, as “a New Year gift”, the department would extend its operating hours to 6pm, and would also open its offices at Khlong Toei Port and Suvarnabhumi Airport tomorrow to ensure that businesses can complete their transactions before the long New Year celebrations.

The offices will also be open at lunchtime, from noon to 1pm, until December 30. 

The official said the number of transactions could reach 3,500 a day as companies rushed to complete export-import documentation before the end of the year. |– The Nation 

 

Agencies to crack down on FBA tourism ‘nominee’ breaches

The Business Development Department (BDD) has joined forces with three other agencies to crack down on Thai nominees that help foreigners breach the Foreign Business Act (FBA) by holding higher-than-permitted stakes in companies operating protected businesses.

Deputy Commerce Minister Apiradi Tantraporn yesterday chaired the signing of a memorandum of understanding between the BDD and the Tourism and Sports Ministry’s permanent secretary’s office, the Tourism Department, and the Department of Special Investigation. 

The cooperation entails the linkage of information in investigating Thai nominees suspected of enabling foreign interests to contravene the FBA, many of whom are involved in tourism businesses reserved for Thais under the Act.

Under the law, foreign shareholders are not allowed to hold more 50 per cent of the shares in service businesses, including tourism.

Any Thais or foreigners found to be involved in ‘nominee’ cases could subject to a maximum of three years in jail and/or a Bt100,000-Bt1 million fine. – The Nation 

 

GIC invests in Indian IT office park developer

Singapore’s sovereign-wealth fund, GIC, is injecting up to 290 million Singaporean dollars (Bt7.2 billion) into Mumbai-listed developer Nirlon in its latest real-estate investment.

Nirlon owns Nirlon Knowledge Park, a professionally planned, large-scale IT office park in Mumbai.

“Nirlon has created a high-quality asset and we are excited about supporting the next phase of growth and asset enhancement to build sustainable value for this development,” said Loh Wai Keong, GIC Real Estate’s managing director.

“This acquisition is consistent with our strategy in India to invest in assets that generate stable income streams over the long term,” he added.

The acquisition will be made through GIC’s affiliate company, Reco Berry.

Reco Berry on Tuesday signed agreements to purchase up to 30.8 million shares from existing Nirlon shareholders, amounting to a 34.2-per-cent holding in the Indian company.

Reco Berry will then make an open offer to the public shareholders of Nirlon for up to an additional 28.4-per-cent stake in the firm.

On completion of the open offer and assuming full take-up, Reco Berry will hold 62.6 per cent of Nirlon.

Reco Berry has also signed agreements, subject to conditions including the response to the offer, to purchase up to 4.5 million shares from Nirlon’s promoters, representing a 5-per-cent stake.

These promoters include Nirlon’s executive vice chairman, Kunal Sagar, and its executive director, Rahul Sagar, who GIC said were instrumental in the conceptualisation and development of Nirlon Knowledge Park. Reco Berry is also in discussions with certain other shareholders to acquire up to 1.8 million equity shares representing a 2-per-cent shareholding in Nirlon. – The Straits Times, Asia News Network