Lighting & Equipment has established a lighting subsidiary, L&E Myanmar Co, in the neighbouring country.
The new company will provide full services related to lighting, including design, consultancy, installation, commissioning and maintenance.
It will also provide full support services related to alternative-energy devices including design, consultancy, installation, commissioning and maintenance.
According to its filing to the Stock Exchange of Thailand on Wednesday, the subsidiary is capitalised at US$50,000 (Bt1.63 million).
L&E will hold 90 per cent, while 10 per cent will be subscribed to by Uthan Hlaing Zaw, a Myanmar national.
38 foreign firms approved for Thai operations
The Commerce Ministry’s Business Development Department has given approval to 38 foreign firms with initial investment capital of Bt811 million to set up operations in Thailand this month under the Foreign Business Act.
The number of approvals this month is up 25 per cent from February last year, reflecting high confidence in the economy, Pongpun Gearaviriyapun, director-general of the department, said yesterday.
In the first two months of the year, Thailand has approved 75 foreign firms with combined initial capital of Bt2.47 billion under the FBA.
Foreign firms are investing more after the government’s investment in infrastructure projects and the development of special economic zones in border provinces, the ministry says.
New foreign firms should continue to invest more in Thailand to serve business growth in the country and under Asean integration, it believes.
The government’s policy to support Thailand as a regional headquarters for foreign companies should also facilitate more foreign investment, Pongpun said.
Liverpool FC expands Asia retail presence
Liverpool Football Club has launched territory-specific online club stores in five Asian markets – Thailand, Hong Kong, Japan, South Korea and Vietnam.
EZ International, a pioneer in the e-commerce soccer business, will operate the new sites after successfully running the Liverpool FC online store in China since 2012.
The club’s e-commerce sales in that country have increased by more 200 per cent, so it is expanding its online retail presence to new key territories across Asia.
Each online store will be in the local language. Products will be shipped locally with reduced postage rates. The stores will also feature tailored payment methods.
Mutual fund rules eased for derivatives, SNs
The Securities and Exchange Commission has revised its rules on mutual funds to allow investment in derivatives and structured notes (SNs) in line with international standards.
Vorapol Socatiyanurak, secretary-general of the SEC, said yesterday that the Capital Market Supervisory Board had approved the revision of investment rules for mutual funds, private funds for retail investors and provident funds.
The revisions include expanding underlying assets of derivatives and SNs to cover all investible assets as well as revising the definition of an SN and underlying assets in the category of credit risk to comply with international standards.
The pre-approval requirement for investment in SNs will be removed.
Funds investing in complex derivatives and SNs will be required to employ the value-at-risk (VaR) approach in determining global exposure to better reflect market risk.
Funds must run stress tests and back tests along with disclosing information on VaR in prospectuses and semi-annual or annual reports.
“The above revisions will support the funds’ investment strategy in derivatives and SNs, which will not only widen investment channels for the funds, but also provide investors with greater choices,” Vorapol said.
“The SEC views that regulatory development will boost the competitive edge of the Thai capital market and the industry, responding to global changes and connectivity.”
MITSUBISHI ENTERS INSTANT NOODLE MARKET
Mitsubishi Corporation and Nissin Foods Holdings Co have entered a strategic alliance, allowing Mitsubishi to hold a 34-per-cent voting right in Nissin Foods HD’s instant-noodle operations in Singapore, India, Thailand and Vietnam, according to a Mitsubishi statement released yesterday.
In line with the company’s current strategy, Mitsubishi is seeking to expand its presence in the Asian market by forming alliances with leading companies in the region, and has been steadily increasing its business involvement. Entering the market for the manufacturing and sales of instant noodles will enable it to establish food processing and production as one of its core businesses overseas.
In partnership with Nissin Foods HD, a pioneer in the instant noodles industry, Mitsubishi will leverage its vertical integration business model expertise – from raw-materials procurement to sales – to enhance its overall corporate value in the four Asian markets.
Considered a “global food”, the market for instant noodles has been growing continuously. More than 100 billion packs were sold worldwide in 2012, with emerging markets in Asia such as India, Thailand and Vietnam accounting for most of the sales.
BAAC EXPECTS EARNINGS TO BE ‘NEAR TARGET’
The Bank for Agriculture and Agricultural Cooperatives (BAAC) expects its earnings for the current fiscal year, which ends next month, to be close to its target.
In the coming fiscal, it will not focus on loan extensions as a result of farmers’ high accrued debts, while encouraging farmers to reduce costs and improve efficiency.
Somsak Kangteerawat, BAAC senior executive vice president, said the fiscal year ending March 2015 was expected to see new loans end up at Bt105 billion, compared with its target of Bt108 billion.
New loans are targeted at Bt76.7 billion for the new fiscal year starting from April.
Somsak said the bank this year would focus on cost reductions by farmers for quality management and sustainability, given their rice-production cost of about Bt4,000-Bt5,000 per rai (Bt25,000-Bt31,250 per hectare). Vietnam’s cost of rice production is no more than Bt3,000 per rai.
Of the new-loan target of Bt76.7 billion, about 35-40 per cent will be extended for rice cultivation, while the rest is for main crops such as tapioca, corn and rubber, as well as cattle raising.
In the fiscal year ending next month, BAAC expects to record net profit of Bt9 billion, close to its target, despite of the country’s internal problems. At the end of the fiscal year, its outstanding loans are anticipated at Bt850 billion.
Source: The Nation