Briefs

Bank of Thailand (BOT) and the Monetary Authority of Singapore (MAS) signed a FinTech Cooperation Agreement (CA) and updated an existing memorandum of understanding (MoU) on Banking Supervision yesterday. 
The two documents were signed at the side of the biennial BOT-MAS Bilateral Meeting, hosted by the MAS this year.
The FinTech CA aims to help develop a richer financial ecosystem in Thailand and Singapore as well as in Asean. The CA enables the BOT and MAS to share information on emerging market trends and their impact on regulations, as well as refer FinTech companies to their counterparts. Importantly, it signals a shared intent to explore jointly undertaking innovation projects, especially those with potential for cross-border applicability.
BOT and MAS also updated their MoU on Banking Supervision, which had been in place since 2006. The MoU serves to strengthen bilateral collaboration in safeguarding the resilience of the two countries’ banking systems. The updated MoU sets out in greater detail the two central banks’ commitment to fostering greater information exchange and cooperation in the areas of licensing, on-site examinations, supervisory colleges, and crisis management, BOT governor Veerathai Santiprabhob said.

Asian ISL index dips in June 

Moody's Investors Service says that its Asian Liquidity Stress Index (Asian LSI) weakened in June, rising to 25.6 per cent from 25.2 per cent in May 2017.
The Asian LSI measures the percentage of high-yield companies with SGL-4 scores as a proportion of high-yield corporate family ratings (CFRs) and decreases when speculative-grade liquidity improves.
"The June figure ends six months of continuous improvement, and the reading now remains just above the long-term average of 22.9 per cent, highlighting that weak liquidity is still a concern for many companies in Asia," says Brian Grieser, a Moody's Vice President and Senior Credit Officer.
Moody's analysis is contained in its just-released monthly report titled "Asian Liquidity Stress Index: Asian LSI increases to 25.6 per cent in June from 25.2 per cent in May," and is authored by Grieser.

JTA ups stake in Group Lease 

J Trust Co Ltd, the parent company of J Trust Asia or JTA, has informed the Tokyo Stock Exchange late Monday that JTA had increased its holding in the Thai-listed company Group Lease Plc or GL to 7.84 per cent from 6.43 per cent. 
According to the company report to the Tokyo Stock Exchange, GL has been successfully in expanding its digital finance business in seven countries, mainly in Asean and the company’s profit of Bt1.06 billion for fiscal 2016 attests to the solid growth of the company.
 

WINNING CODE

Vending machines set up
for Alipay to woo Chinese
Kasikornbank (KBank), SUN 108 and Alipay have teamed up to develop vending machines incorporating an Alipay payment-accepting function.
This will allow Chinese tourists, with their number projected to top 9.8 million this year, to conveniently buy food and beverages, by scanning the QR Code displayed on vending machines with their Alipay app. At the initial stage, 24 machines have been installed at popular Chinese tourist sites and department stores, with the aim of providing 500 machines within three years, Kbank’s first senior vice president Supaneewan Chutrakul said yesterday.
She added that the service aims to provide greater convenience to Chinese visitors who prefer to make such payments via Alipay – a third-party payment service by which users link their bank or credit card account to the digital wallet, or e-wallet. This cooperation with SUN108 and Alipay has reinforced KBank’s position in offering cross-border payment services.
Pipavin Sodprasert, Thailand country manager of Ant Financial Services Group, an e-payment service provider via Alipay app, said Chinese tourists visiting Thailand typically make payments via Alipay for shopping (27 per cent), accommodation (26 per cent) and food and beverages (18 per cent).
“The cooperation with business partners such as KBank and SUN 108 will help provide more convenience for Chinese tourists to expand beyond just spending at large and small retail stores in Thailand but also at these new and innovative vending machines across the country,” the partners say. “Currently, China is Thailand’s largest source market for foreign tourists, with the number of arrivals projected to exceed 9.8 million in 2017.”

DEMAND SAGS

Property sentiment gauge
declines in second quarter
The Real Estate Confidence Index in the second quarter of this year recorded 53.1 points, dropping 1.1 points from 54.2 points in the first quarter of this year, according to a Real Estate Information Centre survey. Demand for housing in the second quarter of this year has fallen from that of the first quarter and the number of launches of residential projects also dropped in the second quarter, the survey found.

BUSY QUARTER

AP launches condo under Life
brand and readies another
Listed property firm AP (Thailand) plans to have completed launches for two condominium projects worth Bt15.4 billion under the brand Life within the current quarter.
It has formed a joint venture firm with its Japanese partner Mitsubishi Estate Group. 
The first project, Life One Wireless, is worth Bt6.4 billion and was launched yesterday. The |project has 1,334 units starting from Bt4.9 million per unit.
Life Asoke-Rama iX, worth Bt9 billion, will comprise 2,248 units starting from Bt110,000 per square metre, Official sales will begin in September this year, according to a press statement yesterday.

CATCHING ON

Thai Union commits to
effort against illegal fishing
Thai Union Group has committed to measures that will tackle illegal fishing and overfishing, as well as improve the livelihoods of hundreds of thousands of workers throughout the company’s supply chains. 
Thai Union’s new commitments build upon its sustainability strategy SeaChange, including efforts to support best practice fisheries, improve other fisheries, reduce illegal and unethical practices in its global supply chains, and bring more responsibly caught tuna to key markets.
Yesterday’s announcement follows a global Greenpeace campaign. “This marks huge progress for our oceans and marine life, and for the rights of people working in the seafood industry,” said Greenpeace International executive director Bunny McDiarmid. “If Thai Union implements these reforms, it will pressure other industry players to show the same level of ambition and drive much needed change. Now is the time for other companies to step up, and show similar leadership.”
Bangkok Land gears up for
opening of Cosmo Bazaar 
Property firm Bangkok Land plans to open its latest shopping centre, Cosmo Bazaar, in August.
The Cosmo Bazaar is an air-conditioned shopping centre in Muang Thong Thani with 10 storeys and a total gross area of 76,000 square metres. It comprises more than 500 shops and 2,200 parking spaces. The first phase of the shopping centre, including retail space on the first floor and parking on the second to fourth floors, is open to the public. 
The company’s managing director Peter Kanjanapas said that Cosmo Bazaar also offers plenty of parking for office tenants and more than 500 shops and restaurants on the first floor to fulfil diverse lifestyles and needs. The shopping centre is also expected to welcome office workers from nearby buildings such as Kasikornbank, True Service Centre, the Central Investigation Bureau, Royal Thai Police, as well as local and international visitors to Impact Exhibition and Convention Centre, Muang Thong Thani, which number more than 10 million a year.