Briefs

A PERSISTENT weak operational environment in Thailand suggests that loan impairments will |continue to rise, weighing on banks’ profitability through the second half of 2015, says Fitch Ratings.
Loan-loss reserve coverage and capital for the largest banks remain strong, however, and the system is generally well positioned to cope with ongoing macroeconomic weakness without a major ratings impact. Downside macro risks remain, though, and a sharper-than-expected downturn or recession could lead to a more rapid deterioration in key bank financial indicators.
Fitch maintains a “negative” outlook on Thailand’s banking sector. The financial data for the latest quarter highlight the ongoing operational challenges facing Thai banks.
Slow regional and global growth has put a drag on exports and manufacturing while key domestic sentiment indicators – such as consumer and industrial confidence – remain weak.
High household debt is also constraining consumer spending and loan growth.
Results for the seven largest Thai banks, which account for 81 per cent of market share in loans – Bangkok Bank, Siam Commercial Bank, Kasikornbank, Krungthai Bank, Bank of Ayudhya, TMB Bank and Thanachart – show higher loan-impairment charges and non-performing loans through the first half of the year.
The ratio of impaired loans to total gross loans for the seven banks had risen to 3 per cent by the end of first half from 2.8 per cent at the end of 2014, while “special mention” loans (for the four banks reporting them) rose to 2.9 per cent from 2.6 per cent over the same period.

McCann Thailand appoints new chief executive officer
Yupin Muntzing has been appointed chief executive officer of McCann Worldgroup Thailand, effective September 1.
Yupin has emerged from a dual role of being managing director at Muntzing Agency, an agency she founded in 2013, as well as CEO of Geometry Global, a WPP Company.
Before this, Yupin was managing director at OgilvyAction, a role she assumed in 2010 after a number of senior positions held at Ogilvy Group in both strategic planning and management since 2003.
Yupin replaces Monica White as CEO of McCann Worldgroup Thailand. White will remain with the agency while completing a thorough handover to ensure a smooth and full client/management transition with her successor.
White was appointed CEO of McCann Worldgroup Thailand in 2010, after originally joining |the network to set up and |lead McCann Direct Thailand in 1993.
 

Tourism Department launches ‘Little Hosts’ programme
The Tourism Department has introduced a project to deploy young guides as “Little Hosts” to promote tourism in Thailand’s 12 “not-to-be-missed” provinces.
The little hosts will be given courses that are expected to enhance their love of their home towns, and to achieve sustainable development in the country’s tourism in the long term.
 Wanasiri Morakul, acting director-general of the Tourism Department, said the project would provide schoolchildren with knowledge about their home towns, local tourist attractions, local traditions and cultures, being a good host and Thai hospitality, and language proficiency. It would give them an opportunity to gain real-life experiences by working as professional local guides.
The “Little Hosts” project will create not only a strong and positive image of the local tourist industry and favourable impression among the visiting tourists, but it will also develop a greater love in their home towns among the local youngsters, the department hopes. They will appreciate the importance of conservation of the environment, local traditions, and cultures, as a strong foundation leading to a sustainable development of the tourism sector in the future.

MamyPoko maker apologies for too few diapers
Uni-Charm (Thailand), manufacturer of MamyPoko diapers, has apologised to customers who reported that the number of diapers in a pack was fewer than what was printed on the packaging.
Upon receiving the complaints, the company launched an investigation and found that the problem occurred with MamyPoko Standard (Tape), Size M, produced and packaged in Indonesia. The investigation showed that the problem happened during the packaging process.
For MamyPoko Extra Dry Speed Wave, MamyPoko PantsExtra Soft, MamyPoko PantsStandard and MamyPoko Happy Pants produced in Thailand, the company also found similar cases with some of the products.
The company on Monday introduced an urgent measure to step up the quality-control process, increased the frequency of quality checks, and improved production and packaging processes to ensure that such incidents will not reoccur, it said.
The company will provide customers who experienced such cases with free MamyPoko Extra Dry Speed Wave or MamyPoko Pants Extra Soft (Regular) diapers. Affected customers can write to the company via MamyPoko Fanpage inbox, giving their full name, address, telephone number and the date of manufacturing of the product as stated on the package. A staff member will contact them with product-replacement information.