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About 120 companies listed on the Stock Exchange of Thailand and the Market for Alternative Investment (MAI) announced combined interim dividend payments of Bt95.3 billion for the first six months of this year, for a 60-per-cent pay-out ratio, higher than the average of about 40-55 per cent of its peers in Asean.

Santi Kiranand, executive vice president at the SET, said that with their continuous growth and strong financial health, they were able to make consistent dividend payments.

Of these companies, 102 are listed on the SET and made interim dividend payments of Bt94.26 billion, while 18 are listed on the MAI and paid Bt1.04 billion.

Some listed companies have not yet announced their interim dividend payments.

Myanmar to prohibit us$ transactions

The Central Bank of Myanmar is stepping up its efforts to discourage the domestic use of US dollars, planning to make dollar-denominated transactions illegal.

Win Thaw, deputy director-general of the foreign currency management department of the CBM, said a directive demanding that all local transactions are completed in Myanmar kyat would be issued by the end of this year.

“The central bank has ordered ministries to make all payments in Myanmar kyat. There will be follow-ups to this directive. Other countries use their local currencies for local transactions. By [doing] this, we can reduce the use of dollars when the local currency depreciates against the dollar,” Win Thaw said.

Some hotels, restaurants and international schools are reportedly charging in US dollars. This drives up demand for that currency and hence puts the kyat under pressure. Though the greenback has appreciated against other currencies in the past months, the kyat has weakened at a much faster pace.

At the official exchange rate of 1,284 per dollar as of yesterday, the kyat has depreciated by 25.3 per cent so far this year. The weakening kyat puts pressure on inflation, which picked up to 8 per cent in May.

According to Win Thaw, once the directive takes effect, the central bank will take legal action against violators. The penalties are being discussed.

Myanmar adopted a managed float system on April 2, 2012. The dollar-kyat exchange rate was first set at 815 per dollar. Since then, the kyat has depreciated by 57.55 per cent. – Myanmar Eleven

Meeting on Korat factory closures

Nakhon Ratchasima is calling for an urgent meeting next month to discuss the province’s industrial development situation after the closure of some 25 factories so far this year.

Hasadin Suwatanapongched, chairman of provincial branch of the Thai Chamber of Commerce, said yesterday that the issue would be discussed at a joint public-private-sector meeting to be chaired by the provincial governor.

He said the factories were shut down for two main reasons: low demand from domestic and overseas buyers, and outdated technology.

Paisit Pitisongswat, chairman of the Federation of Thai Industries in Nakhon Ratchasima, said last weekend that most of the shut-down factories were of small or medium scales. With low capital bases, they could not stand a decline in orders.

Some small factories were closed for some time but they just recently notified the Provincial Industrial Office, Paisit said. He also noted that the number accounted for only a small part of the more than 2,600 factories located in the province.

According to Nakhon Ratchasima’s industrial office, the province accommodates 2,640 factories, employing 146,328 workers.

Year to date, 25 have been shut down, resulting in the layoff of some 3,000 workers.

“The industrial sector has gained confidence after the appointment of Somkid Jatusripitak as deputy prime minister. New investment should remain slow, though, until there are signs of improvement in the economic condition and purchasing power,” Paisit said.