Briefs

The Civil Aviation Authority of Thailand (CAAT) will invite 14 airlines to a meeting in the lead-up to a submission to the International Civil Aviation Organisation (ICAO) that seeks the removal of a red flag against Thai aviation.
After a meeting of a committee looking into civil aviation problems chaired by Transport Minister Arkhom Termpittayapaisith, CAAT director Chula Sukmanop said: “On April 4, 14 airlines will be notified that the authority will submit to the ICAO a request for an inspection of the Thai aviation system”. The submission will be lodged on June 30.
If any airline is not granted an air operator's certificate (AOC) re-certification, it has to cease international services from July 1, until it receives AOC, or the red flag on Thailand's aviation sector is removed, Chula said. 
Only Bangkok Airways has received AOC re-certification, while re-certification for Thai Airways International and Thai AirAsia is expected to follow in April. Next in line are Nokscoot, AirAsia X, Thai Smile, Orient Thai, K Mile and Nok Air.
On February 28, the aviation authority notified the remaining 14 airlines to be available for inspections. Only 10 of them responded.
Some 23 international airlines are registered in Thailand. 

U-tapao airport for special zone
Industry Minister Uttama Savanayana will propose to the cabinet the inclusion of 6,500 rai of U-tapao Rayong-Pattaya International Airport in a special economic zone on April 5. 
The initiative is separate to the Eastern Economic Corridor project, but would support it broad goals of improving transport networks, he said.

15 companies in rice bidding
Fifteen private firms have joined the bidding for only 2.07 million tonnes of rice from total open bidding of 3.66 million tonnes, with a reduced offer price of Bt1.88 per kilogram.
    The Rice Committee will set a final offering price on March 28.
    The deputy director general of the Foreign Trade Department of the Commerce Ministry, Keerati Rushchano, said that the offering price ranges from Bt1.88 per kilogramme to Bt5.10 per kilogramme, an average of Bt4 per kilogramme.
 

Govt threatens to roll back asphalt prices

The Commerce Ministry says it will step in to control the price of asphalt if manufacturers do not take action themselves, after the price increased strongly in the past few months as major producers suspended operations for repairs of their production facilities. In February, the price of asphalt was averaging Bt20,223 per tonne, compared with only Bt10,593 per tonne during the same month last year.
Deputy Commerce Minister Sontirat Sontijirawong said the ministry had recently asked asphalt producers to reduce their prices. However, if manufacturers refuse to cut their prices to an appropriate rate, the government will step in, as the cost of this product affects the construction and infrastructure-development sectors.
According to the ministry, Thailand has about seven or eight asphalt manufacturers, with major producers holding a market share of about 40 per cent. 

 

Australian Embassy site up for sale

As construction of the Australian Embassy’s new premises near Lumpini Park nears completion, that country’s Department of Foreign Affairs and Trade has decided to sell the site of the current embassy on Sathorn Road. 
JLL has been appointed as the sole sales agent for the property.
The site occupies 7 rai 382 square wah (12,728 square metres) of freehold land on South Sathorn Road, one of Bangkok’s prime commercial and residential addresses. 
Suphin Mechuchep, managing director of JLL Thailand, said the Australian Embassy’s site on South Sathorn Road offered one of the last large prime development opportunities available on a freehold basis in the area.
Since the launch of the sales campaign, the site has already received strong interest from leading property-development companies. “To ensure that the site gets the widest coverage, we will also circulate details of the property to JLL’s offices around the world. This will be a very competitive bid,” Suphin said.
 The Australian Embassy’s site on South Sathorn Road has been offered for sale by expression of interest. The closing date is early June.

Chicken exports to gain from SK move 

Thailand’s chicken exports will benefit from South Korea’s exemption of import duty for poultry that will go into effect next month, said Commerce Minister Apiradi Tantraporn.
At present, South Korea levies a 30-per-cent import duty on cooked chicken, and 20 per cent for frozen chicken.
Apiradi said the duty exemption for all of the categories in which Thailand exports chicken should help maintain the value of this product’s exports to South Korea this year at around the 2016 level of US$43.47 million (Bt1.5 billion), which was 50.08 per cent higher than in 2015.

 PTG investment 
budget Bt5 bn

PTG Energy has set aside an investment budget of Bt5 billion to increase revenue by as much as 40 per cent this year, chief executive officer Pitak Ratchakitprakarn said in a press release yesterday.
Up to Bt3.5 billion will be spent to renovate its oil-related business, Bt500 million will focus on its non-oil business, and Bt1 billion will be used to establish more service stations. It now has 1,400 petrol stations and plans to have 1,800 by the end of this year.
Last year, the company reported revenue of Bt64.92 billion and net profit of Bt1.07 billion, up 20 per cent and 65 per cent respectively from 2015.

Fitch rates CP All bonds 

Fitch Ratings (Thailand) has assigned CP All’s new senior unsecured bonds a national long-term rating of “A-(tha)”. 
The bonds, totalling up to Bt4.5 billion, will be due in 2029. The proceeds will be used to repay CP All’s maturing bonds.
The rating on the senior unsecured bonds is one notch lower than CP All’s “A(tha)” national long-term rating because of a significant amount of prior-ranking debt, which made up 3.5 times the company’s EBITDA (earnings before interest, taxes, depreciation and amortisation) in 2016.

8,386 new homes in Bangkok in February
A total of 8,386 new residential units were launched in Bangkok last month worth Bt23.2 billion, according to a survey by the Agency for Real Estate Affairs. In the first two months of the year, 12,656 new residential units were launched in the city worth a total of Bt40.84 billion, AREA said.
AREA forecasts that this year will see 91,123 new residential units launched in Bangkok with total value of Bt318.56 billion, down 18 and 17 per cent respectively from 2016.

SET names March 2, 2018, as T+2 date
The Stock Exchange of Thailand says the two-day settlement cycle (T+2) will be implemented on March 2, 2018.
SET president Kesara Manchusree said: “The target date to move towards the T+2 settlement cycle, from the current T+3, has been extensively discussed with all stakeholders – namely, the Securities and Exchange Commission, the Bank of Thailand, security firms, custodians, asset-management firms and banks – considering their preparation and system readiness. 
“We are certain that moving towards T+2 will benefit all stakeholders, not only in reducing the risks and costs but also in making it more convenient for cross-border portfolio investment. 
“This change will keep SET aligned with the leading settlement practices in markets around the world, while enhancing the Thai capital market’s competitive edge.”