LPG PRICE RISE TOO SMALL TO AFFECT FAST FOOD, GOVT SAYS

 So on average, the cost of production of each dish will go up by only 10 satang. 
“So there should be no reason for food vendors to raise their retail prices to hurt consumers, as their cost of production has increased by only a small proportion,” he said.
The Commerce Ministry noted that a tank of cooking gas used to cost Bt390, but the price now has decreased to Bt340-Bt345. 
The Energy Policy Administrative Committee announced increases in the LPG price and of the Oil Fund subsidy for LPG to more than Bt6 billion a year, citing the continued rise of LPG prices in the world market. 

THREE FIRMS PLAN 
PERPETUAL BONDS

Three Thai companies are planning to sell perpetual bonds totalling up to Bt22 billion this month, despite lingering doubts over the ability of investors to understand the risks of such instruments.
The largest offering will come from Charoen Pokphand Foods, which plans to sell perpetual non-call five securities in late February for Bt15 billion, with a Bt5-billion greenshoe option.
Ananda Development returns for its annual foray to raise up to Bt1 billion in the perpetual non-call five format, via CIMB Thai in mid-February. Then, Property Perfect will sell maiden perpetual bonds, also callable after five years, for up to Bt1 billion through joint leads Globlex Securities, KGI Securities and Capital Nomura Securities.
Interest in perpetuals has been growing, thanks to a combination of investors chasing yield and issuers trying to lock in fixed coupons ahead of expected increases in benchmark rates.
“Investors are getting more familiar with subordinated debt,” said a banker involved in one of the planned issues.
“For issuers, it is favourable to obtain the equity treatment and they are also expecting rates to rise. So they want to lock in current rates over a longer term.”
Thailand’s government bond yields have risen sharply since November, when CP All sold the last perpetual bonds. The five-year TGB yield was at 2.18 per cent on February 1, against 1.98 per cent on November 15. The rise was steeper at the long end of the curve, with the 10-year jumping 31 basis points to 2.8 per cent over the same period. 
With the US Federal Reserve poised to raise interest rates as many as three times this year, issuers are worried that benchmark rates will continue to climb. – Reuters 

EXPORT EARNINGS ON 
MYAWADDY BORDER SLIDE

Export earnings have declined on Myanmar’s Myawaddy border, according to official sources.
Trade increased after the New Asia Road crossing the Dawna hills was opened, according to the Ministry of Commerce.
Until January this fiscal year, border trade reached US$723.7 million (Bt25.35 billion), with exports making up a feeble $46.17 million.
A decline in exports is linked to rampant illegal trade and the collection of the 0.2-per-cent prepaid tax. 
Export volumes might increase when the government ditches the collection of prepaid tax, Myawaddy merchants have said.
Myanmar exports crops and marine products. In 2012-13 exports amounted to $55.84 million, $49.2 million in 2013-14, $32.87 million in 2014-15 and $43.79 million in 2015-16, according to the ministry.
Currently, a second Thai-Myanmar Friendship Bridge is being built. This aims to promote trade via the Mae Sot-Myawaddy border, the economic gateway to southwestern Thailand. Upon completion, more than 500 cargo trucks will be able to use the bridge, Thai entrepreneurs have claimed.
Thailand has granted Bt1.8 billion baht to upgrade the Mae Sot-Yangon Road.– Myanmar Eleven