FARES HALVED ON PURPLE LINE

The MRTA board yesterday approved a fare reduction of 50 per cent per station. This will drop the total fare throughout the route to Bt29 from Bt42, effective on September 1. This will be applied only to MRT Plus card users. The price cut will be valid until the missing link between Tao Poon and Bang Sue station is filled. 

The Purple Line started operation on August 6.

 

ERGO BACKS THAISRI NON-MOTOR SEGMENT

 

Germany-based ERGO Insurance Group will help strengthen Thaisri Insurance in growing non-motor insurance segments over five years.

ERGO became a major shareholder by acquiring a 40.3-per-cent stake in Thaisri. The arrival of ERGO prompted the reshuffling of top management.

Karan Chopra, the new chief executive officer of Thaisri, said yesterday that the company had set an annual premium-income growth target of 7 per cent from 2016-20. 

By 2020, its premium income will have to reach Bt4 billion from Bt2.55 billion currently. Then it will rank 10th in the non-life insurance industry, up from 20th now.

Former CEO Natee Panichewa, who now is chief adviser to the company, said the company would focus on improving internal processes.

It also plans to rename itself while developing the non-motor side and the digital channel, where ERGO has expertise. ERGO plans to use Thaisri as the model to penetrate neighbouring countries. 

ERGO wants to diversify underwriting in the region and has enough capacity to underwrite big projects, he said. 

 

TISI DROPS AGAIN IN JULY

 

The Thai Industries Sentiment Index in July dropped for the second straight month to 84.7 on concerns over rising production costs, particularly for raw materials, price competition, lack of liquidity and consumers’ caution on spending.

Scores below 100 indicate negative sentiment. 

Construction materials have also seen a slowdown in the rainy season, while exchange-rate volatility and risks to the global economy raised business operators’ concerns. 

In the previous month, the index was at 85.3.

Chen Namchaisiri, chairman of the Federation of Thai Industries, said yesterday that the three-month index rose to 100.7 in July from 99.8 in the month earlier on expectations that government spending would be a key factor for Thailand’s expansion and private spending in the next periods.

The survey was conducted on 1,113 operators in 45 industries.

In July, auto production fell 7.2 per cent year on year and 14.4 per cent from June to 153,950 units on declines in pickup production for domestic sales and exports after the rainy season.

July’s domestic sales amounted to 60,635 units, down 0.4 per cent year on year and 8.2 per cent month on month because of the rainy season.

 

Acquisition for joint development 

TPC Power Holding Plc has acquired Siam Power shares to jointly develop a 8-megawatt waste-driven power plant as part of its strategy to engage in the fully-integrated alternative energy business. 

The board of directors of TPCH – the country’s largest biomass power plant company – has approved the acquisition of 45 per cent of Siam Power Co.

The power plant, which is expected to be completed in about two years, will sell electricity to the Metropolitan Electricity Authority.

Cherdsak Wattanavijitkul, president of TPCH, said this investment in the waste-fired power generation business is also a starting point to branch out from TPCH’s current biomass (wood) power plant business. 

The investment should provide a satisfactory return on investment and a steady revenue stream, which should help strengthened the company and benefit its shareholders.

Siam Power Co was established on July 17, 2013 to engage in waste-driven power generation plant development. 

The company is in the process of securing access to obtain wastes generated in Nonthaburi, which will serve as fuel to run the planned 8MW power generation plant. 

Siam Power is applying for a permit from the Energy Regulatory Commission. 

 

New CEO at AIA Thailand 

AIA Thailand has appointed Tan Hak Leh as chief executive officer, succeeding Saloon Tham, who has decided to relocate to Los Angeles to join his family. 

Saloon’s last working day will be August 31.

Ng Keng Hooi, regional chief executive of AIA Group said yesterday that over a career spanning more than 25 years in the life insurance industry, Hak Leh has built up an outstanding track record working in various senior management roles across the region with the last two roles in Singapore and Hong Kong. 

“We are truly delighted to have Hak Leh leading our business in Thailand, one of our most important markets,” he said.

Hak Leh was CEO of Great Eastern Life Singapore prior to joining AIA Singapore as CEO in 2011. 

Prior to Great Eastern, Hak Leh was director of the Insurance Department with the Monetary Authority of Singapore.

“I am looking forward to working together with the team at AIA Thailand to help meet the protection and long-term savings needs of the people of Thailand,” he said.

AIA Group also said it is the only company in the world to have achieved the largest number of Million Dollar Round Table (MDRT) members for two years running. 

A total of 5,687 AIA agents and agency leaders registered as MDRT members by August 1, representing an increase of over 47 per cent in members of this elite group from 2015.