Last year's financial crisis, which brought down some of the biggest names in world banking, and whose aftershocks have been felt in economies the world over, has a new scapegoat. Politicians and bankers, trying to deflect some of the blame, pointed the finger at accounting standards, the rules by which accountants must abide, claiming the huge losses incurred by the banks were only exacerbated by the accounting requirement to write down investments to the current market price, which had plummeted, in some cases to almost nothing.
One year on and many are claiming that the "green shoots of recovery" are being seen. However, the shockwaves are still being felt. Moves are underway to make accounting simpler. There are calls for less reliance on the teams of specialist accountants that are needed to interpret the finer details of specific standards. Many, including some of the world's top CFOs, now think that financial statements have become too complex - voluminous, full of tables and data but with little in the way of clear explanation.
Many readers also probably think that accounting used to be much simpler. Why have audit fees increased? Why value assets at market price when you have no intention to sell? Why can't we create reserves for the bad times in order to even out the profits over the long term, thus creating longer term stability? Accounting in Thailand is changing too and over the next three years or so, there will be similar debate locally.
International Financial Reporting Standards, referred to as IFRS, make up the accounting and financial reporting framework that now is used in more than 100 countries around the world. Countries soon to adopt the system include India, Indonesia, Malaysia, and Korea with Thailand not too far behind. There is even a roadmap for convergence between US GAAP and IFRS, something that would have been unthinkable not that long ago due to fundamental differences in the accounting methodology between Europe and the US.
IFRS are not perfect - far from it. There are flaws. As Sir David Tweedie, the IASB (International Accounting Standards Board - the body that sets the standards) chairman, is fond of remarking, he has yet to fly on an aircraft that is recorded on the balance sheet of an airline company. But it is accepted by most that what we have now is a big improvement on what we had before.
It is a misconception to think that IFRS only affects listed companies. It has created the opportunity for countries that have not yet developed a financial reporting framework to quickly put in place a globally accepted set of standards that local companies can follow. Cambodia is a good example of a country where this has happened. In addition, the recently issued IFRS for Small- and Medium-Sized Entities offers a scaled-down, simpler and more cost-effective version that can only be of benefit to other developing countries who want to raise their accounting game.
The benefits of a global set of high-quality accounting standards are considerable. Cross-border comparability increases access to additional capital markets around the world. Additional disclosure requirements improve the transparency of a company's activities. The performance of a company in Hong Kong now can be compared meaningfully with one in Germany. No longer is it necessary to decode local accounting practice when trying to understand company performance. This is a major advantage, not just for investors, but also for potential suppliers and customers.
Despite criticisms that accounting has become over-complicated, IFRS are here to stay. The IASB is now in a phase of both revising existing standards and issuing new ones.
We are moving towards a requirement for management to issue a commentary on the company performance and intentions, further enhancing the understanding, quality and usability of the financial statements.
Although accounting has undergone significant changes in the last decade and there are more changes ahead, it now appears more likely than ever that the world eventually will be using a common set of standards.
Jonathan Fryer is a UK Chartered Accountant working for Mazars Thailand.
Wednesday, October 28, 2009
ONLINE MARKETING IN CONSUMER-GENERATED TERRITORY
Akey digimarketing theme is consumer participation.Consumers are no longer passive targets. They are active, engaged participants: enabled by digital media.All forms of consumer participation via digital media are on the rise. Nowhere is this consumer creativity more evident than on social networks: those sites such as Hi5, Facebook, LinkedIn, and others.
Consumers' time:The latest Universal McCann global internet survey, estimates that almost two-thirds of "active internet users"(people using the internet at least every other day) spend time managing their social profiles. What's more, almost three-quarters of them report visiting friend's profiles. Social networks are consuming an increasing part of consumers' digital time: time that consumers are choosing not to spend on brand- or marketing-oriented websites.
Tread carefully:Good marketers understand that keeping in touch with consumers means going where consumers are. As consumers use social networks, that's where marketers must go. But be cautious: social networks are consumer territory. They are built by consumers.
Unlike TV soap operas - which were developed to sell soap and consumer goods - social networks were not created to sell. They have been designed to help consumers with similar interests to help each other. When marketers venture into social networks they must do so with humility, candour and a genuine desire to help - three traits that are unfortunately absent in many traditional marketers.
Everyone is feeling their way in marketing effectively on social network sites. The more enlightened companies are finding a useful first step is to get management and staff involved in the networks, both as private individuals and as brand representatives.
Other companies, with a more Luddite perspective, ban staff from accessing social networks at all. The internet security company ScanSafe reports that 76% of companies may be blocking access to social networks. Although you need to manage what your employees are doing on company time, effective social network marketing demands your people understand and experience those networks. That's the only way to acquire the authenticity that social network marketing demands.
Monitor the flow:Take some time to look at just what is being said about your company, your product and your brands, and how it is being said. Different social networks have different tones of voice and different norms of behaviour.Marketers need to fit in.
There are many tools - which are mostly free - that send you an e-mail when key words or phrases are used.The easiest is Google Alerts. Everyone should be running Google Alerts for personal names (put your name in quotes to get exact first and last name), and relevant company and brand names.For well-known companies and brands,it's advisable to add some context words to avoid being overwhelmed with results,or use paid services that provide filtering for you.
Intervene gently and politely:Many marketers wonder what they should do when they find their brand being discussed. Listen and then think. Are these inaccurate comments, based on product misuse, or misunderstanding?Inaccuracies can be politely and authoritatively corrected using sound evidence - in the same tone you might use to a family member. Offer something positive in return. If the customer is using the product for a purpose other than that intended, and therefore finds it performs poorly, can we recommend the right product for them, even if it's made by a competitor? Can we offer a partial refund?
Are the comments negative but correct? If so, it's better to confess and apologise. Remember the traditional customer service findings: empathy and apology, with the promise of systemic change to ensure the error is not repeated work wonders, converting complainants into brand advocates. We have already seen that the new digital media model pushes power to the consumer. A happy brand advocate can be an extremely powerful ally.
Of course, sometimes, comments are positive and marketers can bask in reflected glory and offer thanks and hints of improvements to come.
Abuse:Abusive, unfounded, and unsupported comments are often the hardest to deal with.
Some marketers ignore them and hope that other consumers will read them for what they are: an abusive tone that is not persuasive. Ideally, other consumers will reply. If they don't, my feeling is that marketers should intervene to politely reject the abuse and show it's undeserved. Remember, an internet search will turn up everything. When search turns up abuse, it would be good to also see its refutation.
Dr Ian Fenwick is an adviser and Senior Head of Administrative Programmes, at Sasin Graduate Institute of Business Administration.He recently co-authored (with Kent Wertime)DigiMarketing: The Essential Guide to New Marketing & Digital Media, Wiley,2008.This is now available in Thai and Mandarin also. You can reach Ian at Ian@DigiMarketingNow.com; website www.DigiMarketingNow.com; and follow him on Twitter www.twitter.com/DrIanFenwick
Consumers' time:The latest Universal McCann global internet survey, estimates that almost two-thirds of "active internet users"(people using the internet at least every other day) spend time managing their social profiles. What's more, almost three-quarters of them report visiting friend's profiles. Social networks are consuming an increasing part of consumers' digital time: time that consumers are choosing not to spend on brand- or marketing-oriented websites.
Tread carefully:Good marketers understand that keeping in touch with consumers means going where consumers are. As consumers use social networks, that's where marketers must go. But be cautious: social networks are consumer territory. They are built by consumers.
Unlike TV soap operas - which were developed to sell soap and consumer goods - social networks were not created to sell. They have been designed to help consumers with similar interests to help each other. When marketers venture into social networks they must do so with humility, candour and a genuine desire to help - three traits that are unfortunately absent in many traditional marketers.
Everyone is feeling their way in marketing effectively on social network sites. The more enlightened companies are finding a useful first step is to get management and staff involved in the networks, both as private individuals and as brand representatives.
Other companies, with a more Luddite perspective, ban staff from accessing social networks at all. The internet security company ScanSafe reports that 76% of companies may be blocking access to social networks. Although you need to manage what your employees are doing on company time, effective social network marketing demands your people understand and experience those networks. That's the only way to acquire the authenticity that social network marketing demands.
Monitor the flow:Take some time to look at just what is being said about your company, your product and your brands, and how it is being said. Different social networks have different tones of voice and different norms of behaviour.Marketers need to fit in.
There are many tools - which are mostly free - that send you an e-mail when key words or phrases are used.The easiest is Google Alerts. Everyone should be running Google Alerts for personal names (put your name in quotes to get exact first and last name), and relevant company and brand names.For well-known companies and brands,it's advisable to add some context words to avoid being overwhelmed with results,or use paid services that provide filtering for you.
Intervene gently and politely:Many marketers wonder what they should do when they find their brand being discussed. Listen and then think. Are these inaccurate comments, based on product misuse, or misunderstanding?Inaccuracies can be politely and authoritatively corrected using sound evidence - in the same tone you might use to a family member. Offer something positive in return. If the customer is using the product for a purpose other than that intended, and therefore finds it performs poorly, can we recommend the right product for them, even if it's made by a competitor? Can we offer a partial refund?
Are the comments negative but correct? If so, it's better to confess and apologise. Remember the traditional customer service findings: empathy and apology, with the promise of systemic change to ensure the error is not repeated work wonders, converting complainants into brand advocates. We have already seen that the new digital media model pushes power to the consumer. A happy brand advocate can be an extremely powerful ally.
Of course, sometimes, comments are positive and marketers can bask in reflected glory and offer thanks and hints of improvements to come.
Abuse:Abusive, unfounded, and unsupported comments are often the hardest to deal with.
Some marketers ignore them and hope that other consumers will read them for what they are: an abusive tone that is not persuasive. Ideally, other consumers will reply. If they don't, my feeling is that marketers should intervene to politely reject the abuse and show it's undeserved. Remember, an internet search will turn up everything. When search turns up abuse, it would be good to also see its refutation.
Dr Ian Fenwick is an adviser and Senior Head of Administrative Programmes, at Sasin Graduate Institute of Business Administration.He recently co-authored (with Kent Wertime)DigiMarketing: The Essential Guide to New Marketing & Digital Media, Wiley,2008.This is now available in Thai and Mandarin also. You can reach Ian at Ian@DigiMarketingNow.com; website www.DigiMarketingNow.com; and follow him on Twitter www.twitter.com/DrIanFenwick
Kingdon's best crafts
Great stuff handmade in rural corners all over the country are on sale at the October 10 Thai Craft Fair in the Jasmine City Building on Sukhumvit Soi 23.
Shop for baskets, hand-woven silk, ceramics, hilltribe stichwork and recycled items and view the exhibition "Khon Lek Lek", featuring the amazing baskets of Montri Yimyean and his fellow weavers in Rayong, who've found a less harmful altfernative to factories and fishing.
The fair is running from 10 to 5. Call (02)676 0636-8, extension 231,or visit www.ThaiCraft. org.
Shop for baskets, hand-woven silk, ceramics, hilltribe stichwork and recycled items and view the exhibition "Khon Lek Lek", featuring the amazing baskets of Montri Yimyean and his fellow weavers in Rayong, who've found a less harmful altfernative to factories and fishing.
The fair is running from 10 to 5. Call (02)676 0636-8, extension 231,or visit www.ThaiCraft. org.
Wednesday, October 14, 2009
WASTE NOT WANTED
Sunun Kittong truly has a profound passion for all kinds of orchids and has never allowed them to wither in front of his eyes.With his skilful strokes and keen eyes,however, he is able to capture the fascinating features of countless flora in full bloom onto his fabric bags.
Though they lack the glitz when compared to other fashionable bags, his satchels serve a noble mission since they help reduce piles of imperishable garbage that is already choking the planet. Sunan doesn't have only one or two fabric bags but a lot. Unsurprisingly, his house is now completely devoid of the plastic ones most people collect during shopping trips.
On top of that, he doesn't need to waste money buying new bags since his own holdalls are more durable and serve different purposes. When his destination is the market, Sunun picks up one that can withstand hard rigour. While going out on personal business, he resorts to another pouch decorated with zips and small pockets where he can keep his personal belongings safely.
But things were totally different in the old days because he was quite happy carrying plastic bags around.
"In those days my house was full of plastic bags since I'm a shopping maniac.I love to buy things, especially books. But now I put all my shopping in my fabric bags instead. And it seems that many shopkeepers are also happy when I tell them that I don't need plastic bags since they can save them for other customers,"he explained.
But what makes him most proud is the fact that all the bags he carries around are the fruits of his labour and help serve his wish to safeguard the natural environment.
Also his hand-made bags serve an extra role as silent ambassadors who indirectly inspire others to reduce and ultimately stop the use of plastic bags.
"After seeing my bags, my friends often asked me to design one for them. Soon word spread far and wide and now many orders are flooding in. It makes me feel so good knowing that more people are starting to use fabric bags," said Sunun.
By profession, Sunun is a landscape and garden designer but now he is happy to pursue his new interest as a fabric bag designer.
According to Sunun, it all started three years ago when he saw a client carrying a fabric bag made from recycled cloth. His client told him he found plastic bags boring and that he got a lot more from a fabric one.This got Sunun thinking and led him to what he is doing now.
"That customer inspired me to follow in his footsteps. One evening at the Night Bazaar in Chiang Mai, I spotted a lovely fabric bag so I bought it," he recalled.
Sunun liked the versatility of fabric bags and their durability so much so he decided to design his own and create pieces that suited his own personal taste. All of his hand-made textile bags are eye-catching with pictures of graceful orchids of various species.
"I have long been enthralled by orchids owing to their graceful beauty. When I first designed my own fabric bags, I wanted to express my interpretation of the queen of flowers," he said.
So far, Sunun has designed more than 200 orchid-patterned bags and each one he creates is unique since it is painted by hand and no bag is identical.
"I like to give the best thing I can craft to like-minded people who care about the critical situation regarding our natural environment. While my customers can be proud of their one-of-a-kind bags, I am proud of my work," he said.
His bags are decorated to appeal to both men and women.
"Bags with a colourful design attract more female customers while those with blackand-white tones are popular among men,"explained Sunun.
Though he keeps more than 10 handmade fabric bags for himself, Sunun still fashions new ones from time to time because wear and tear does finally catch up with them.
"I don't want to feel I'm creating more trash by using plastic ones. A fabric bag is so convenient since it can be easily washed and repaired. To me convenience and versatility are my prime concerns when it comes to my choice of bag," he said.
Asked how one can help tackle global warming, Sunun emphasised that it must first start with people's attitudes.
"We must raise awareness among Thais that plastic is a dangerous waste product. It can pose great harm to both the natural environment and people themselves. We should all bear in mind that we should be aware of what we do in life and not create any adverse impacts on our planet," he stressed.m
Tips on how to design the right bag for the right job and maintain its durability
Different styles of bags serve different purposes so before designing it ask yourself what kind of bag will serve your purpose
If the bag is used to keep personal accessories like combs and powders, it should be small and the cloth used to fashion it can be something simple like a rag
If the bag is to be used for shopping,thick cloth is required since it has to withstand heavy weights. It should also be quite big in size
A white fabric bag is not an ideal choice since it is somewhat difficult to keep clean
Apart from painting, patterns on the bag can include embroidery or simple hand-written wording
Wash the bag from time to time,especially if it is frequently used
Tips on how to design your own fabric bag:
Materials 1. Undyed cloth or used cloth 2. Paper and pencil 3. Acrylic colours and a brush 4. Needle, thread, and scissors Instructions
1. Roughly design the style and pattern of the bag you want
2. Cut a piece of cloth in the desired shape
3. Manually sew a bag in the desired design and size for those who want something natural or use a sewing machine for those who want neat needlework
4. Make the handles of the bags and adjust their length to suit your needs
5. Paint the desired pattern on the bag with the acrylic colours
Though they lack the glitz when compared to other fashionable bags, his satchels serve a noble mission since they help reduce piles of imperishable garbage that is already choking the planet. Sunan doesn't have only one or two fabric bags but a lot. Unsurprisingly, his house is now completely devoid of the plastic ones most people collect during shopping trips.
On top of that, he doesn't need to waste money buying new bags since his own holdalls are more durable and serve different purposes. When his destination is the market, Sunun picks up one that can withstand hard rigour. While going out on personal business, he resorts to another pouch decorated with zips and small pockets where he can keep his personal belongings safely.
But things were totally different in the old days because he was quite happy carrying plastic bags around.
"In those days my house was full of plastic bags since I'm a shopping maniac.I love to buy things, especially books. But now I put all my shopping in my fabric bags instead. And it seems that many shopkeepers are also happy when I tell them that I don't need plastic bags since they can save them for other customers,"he explained.
But what makes him most proud is the fact that all the bags he carries around are the fruits of his labour and help serve his wish to safeguard the natural environment.
Also his hand-made bags serve an extra role as silent ambassadors who indirectly inspire others to reduce and ultimately stop the use of plastic bags.
"After seeing my bags, my friends often asked me to design one for them. Soon word spread far and wide and now many orders are flooding in. It makes me feel so good knowing that more people are starting to use fabric bags," said Sunun.
By profession, Sunun is a landscape and garden designer but now he is happy to pursue his new interest as a fabric bag designer.
According to Sunun, it all started three years ago when he saw a client carrying a fabric bag made from recycled cloth. His client told him he found plastic bags boring and that he got a lot more from a fabric one.This got Sunun thinking and led him to what he is doing now.
"That customer inspired me to follow in his footsteps. One evening at the Night Bazaar in Chiang Mai, I spotted a lovely fabric bag so I bought it," he recalled.
Sunun liked the versatility of fabric bags and their durability so much so he decided to design his own and create pieces that suited his own personal taste. All of his hand-made textile bags are eye-catching with pictures of graceful orchids of various species.
"I have long been enthralled by orchids owing to their graceful beauty. When I first designed my own fabric bags, I wanted to express my interpretation of the queen of flowers," he said.
So far, Sunun has designed more than 200 orchid-patterned bags and each one he creates is unique since it is painted by hand and no bag is identical.
"I like to give the best thing I can craft to like-minded people who care about the critical situation regarding our natural environment. While my customers can be proud of their one-of-a-kind bags, I am proud of my work," he said.
His bags are decorated to appeal to both men and women.
"Bags with a colourful design attract more female customers while those with blackand-white tones are popular among men,"explained Sunun.
Though he keeps more than 10 handmade fabric bags for himself, Sunun still fashions new ones from time to time because wear and tear does finally catch up with them.
"I don't want to feel I'm creating more trash by using plastic ones. A fabric bag is so convenient since it can be easily washed and repaired. To me convenience and versatility are my prime concerns when it comes to my choice of bag," he said.
Asked how one can help tackle global warming, Sunun emphasised that it must first start with people's attitudes.
"We must raise awareness among Thais that plastic is a dangerous waste product. It can pose great harm to both the natural environment and people themselves. We should all bear in mind that we should be aware of what we do in life and not create any adverse impacts on our planet," he stressed.m
Tips on how to design the right bag for the right job and maintain its durability
Different styles of bags serve different purposes so before designing it ask yourself what kind of bag will serve your purpose
If the bag is used to keep personal accessories like combs and powders, it should be small and the cloth used to fashion it can be something simple like a rag
If the bag is to be used for shopping,thick cloth is required since it has to withstand heavy weights. It should also be quite big in size
A white fabric bag is not an ideal choice since it is somewhat difficult to keep clean
Apart from painting, patterns on the bag can include embroidery or simple hand-written wording
Wash the bag from time to time,especially if it is frequently used
Tips on how to design your own fabric bag:
Materials 1. Undyed cloth or used cloth 2. Paper and pencil 3. Acrylic colours and a brush 4. Needle, thread, and scissors Instructions
1. Roughly design the style and pattern of the bag you want
2. Cut a piece of cloth in the desired shape
3. Manually sew a bag in the desired design and size for those who want something natural or use a sewing machine for those who want neat needlework
4. Make the handles of the bags and adjust their length to suit your needs
5. Paint the desired pattern on the bag with the acrylic colours
Tuesday, October 13, 2009
Happy family retreat
Art, dharma and nature have been packaged together in this atypical familyoriented retreat programme. For October 23 to 25, the Family Network Foundation is organising a special programme for 10 families where they will learn drawing skills from senior artist Phong Saeng-Ging, the head of Arsomsilp Institute of the Arts's Craftsmen House Community, Buddhism from Phra Paisal Visalo, and aspects of the traditional Thai way of life including rice cultivation,pottery, cooking Thai sweets and handicraft workshops.
The three-day programme to be held at the Rose Garden Resort in Nakhon Pathom will be a great opportunity for family members to come together and learn more about themselves and how to bring harmony into their homes.
The three-day programme is open to families with children 8 to 11 years of age. Cost is 1,000 baht per family (two to three persons). Call 02-954-2346/7,08-1773-9186 or 08-1351-6067.
The three-day programme to be held at the Rose Garden Resort in Nakhon Pathom will be a great opportunity for family members to come together and learn more about themselves and how to bring harmony into their homes.
The three-day programme is open to families with children 8 to 11 years of age. Cost is 1,000 baht per family (two to three persons). Call 02-954-2346/7,08-1773-9186 or 08-1351-6067.
Wednesday, October 7, 2009
Khao Kla plans SME fund next year to tap recovery
Khao Kla Venture Capital plans to establish a new fund next year to support small enterprises due to the improving economy.
The new venture capital fund would raise about 500 million baht next year,said Patamaporn Chaiyakool, managing director of Khao Kla Venture Capital Management Company. The new fund would invest in small and medium-sized enterprises with high growth potential.
The fund would be similar to Khao Kla's existing K-SME Venture Capital fund, but would differ in features and investment policy.
The new fund would allow other investors, who might not be required to have SME experience, to investment.
"We want to create a new concept of venture capital fund to develop the business and openings for other investors to join the investment," she said.
"The financial support would help to grow and strengthen local SMEs, particularly under the improving economic situation in next year."
K-SME Venture Capital, a business unit of Kasikornbank under Khao Kla's management, allows the fund to hold a maximum share-stake of 50% of registered capital of each SME. The venture capital fund also requires at least a three year track record for each SME.
The company's total investment portfolio is 173 million baht invested in 10 SMEs, five of which plan to list on the Market for Alternative Investment.
Khao Kla, yesterday, signed a jointventure agreement with Zemasch Corporation Ltd to provide the SME with 19.95 million baht of financial support.
Zemasch plans an initial public offering of shares totalling about 100-200 million baht on the MAI next year. Funds raised would be used for business expansion and developing new products.
The new venture capital fund would raise about 500 million baht next year,said Patamaporn Chaiyakool, managing director of Khao Kla Venture Capital Management Company. The new fund would invest in small and medium-sized enterprises with high growth potential.
The fund would be similar to Khao Kla's existing K-SME Venture Capital fund, but would differ in features and investment policy.
The new fund would allow other investors, who might not be required to have SME experience, to investment.
"We want to create a new concept of venture capital fund to develop the business and openings for other investors to join the investment," she said.
"The financial support would help to grow and strengthen local SMEs, particularly under the improving economic situation in next year."
K-SME Venture Capital, a business unit of Kasikornbank under Khao Kla's management, allows the fund to hold a maximum share-stake of 50% of registered capital of each SME. The venture capital fund also requires at least a three year track record for each SME.
The company's total investment portfolio is 173 million baht invested in 10 SMEs, five of which plan to list on the Market for Alternative Investment.
Khao Kla, yesterday, signed a jointventure agreement with Zemasch Corporation Ltd to provide the SME with 19.95 million baht of financial support.
Zemasch plans an initial public offering of shares totalling about 100-200 million baht on the MAI next year. Funds raised would be used for business expansion and developing new products.
Tuesday, October 6, 2009
TMB EXPECTS TO HIT 2009 SME LOAN TARGET
TMB Bank expects to provide new loans of Bt30 billion for small and mediumsized enterprise banking in the current quarter in order to hit the SME outฌstandingloan target of Bt112 billion for the year.
Sayam Prasitsirigul, chief SME bankฌing officer at TMB Bank, said outstanding SME loans currently stood at Bt83 billion, while the bank expected to expand its SME credit by 3 per cent from the end this year to Bt112 billion.
It had previously expected to achieve only 8090 per cent of the outstanding-loan target.
He said the economy would improve next year and that the SME market would therefore expand.
However, competition in the SME banking market was still high in terms of pricing, creditline offering and quick service. That said, during a bad economic situation, every player will only look for good customers.
Overall SME banking business this year has been mainly focused on refinancing, which will continue into next year as there are new players in the market.
However, TMB is focused on workingcapital loans more than refinancing loans.
Regarding the SME newloan target of Bt30 billion during the fourth quarter, the bank expects to gain one half from refiฌnancing and the remainder from new cusฌtomers.
"Currently, the bank has SME loans of more than Bt10 billion pending approval," said Sayam.
Meanwhile, TMB's SME banking nonperforming loans are above 10 per cent, but most of them are legacy loans from the past. The bank has gradually solved the NPL problem in SME banking by itself, without having to sell its NPLs.
The bank offers credit lines for SME customers at three times the collateral value, with a minimum interest rate of the minimum overdraft rate minus 1.5 percentage points. The bank's MOR stands at 6.5 per cent.
SME banking business this year has been mainly focused on refinancing, which will continue into next year as there are new players in the market.
Sayam Prasitsirigul, chief SME bankฌing officer at TMB Bank, said outstanding SME loans currently stood at Bt83 billion, while the bank expected to expand its SME credit by 3 per cent from the end this year to Bt112 billion.
It had previously expected to achieve only 8090 per cent of the outstanding-loan target.
He said the economy would improve next year and that the SME market would therefore expand.
However, competition in the SME banking market was still high in terms of pricing, creditline offering and quick service. That said, during a bad economic situation, every player will only look for good customers.
Overall SME banking business this year has been mainly focused on refinancing, which will continue into next year as there are new players in the market.
However, TMB is focused on workingcapital loans more than refinancing loans.
Regarding the SME newloan target of Bt30 billion during the fourth quarter, the bank expects to gain one half from refiฌnancing and the remainder from new cusฌtomers.
"Currently, the bank has SME loans of more than Bt10 billion pending approval," said Sayam.
Meanwhile, TMB's SME banking nonperforming loans are above 10 per cent, but most of them are legacy loans from the past. The bank has gradually solved the NPL problem in SME banking by itself, without having to sell its NPLs.
The bank offers credit lines for SME customers at three times the collateral value, with a minimum interest rate of the minimum overdraft rate minus 1.5 percentage points. The bank's MOR stands at 6.5 per cent.
SME banking business this year has been mainly focused on refinancing, which will continue into next year as there are new players in the market.
SME Bank offering bills of exchange
The Small and Medium Enterprise Development Bank of Thailand for the first time is offering bills of exchange to the public with the return set at a minimum of 1 per cent.
"To raise funds from the public this year is our domestic funding source. And we want to reduce foreign borrowing," president Soros Sakornvisava said yesterday.
The SME Bank's B/Es, which had been limited to institutional investors, would be from now on sold to individual investors.
The three-, six- and 12-month B/Es offer a return of at least 1 per cent.
The minimum purchase is Bt1 million.
The B/Es can also be placed as collateral for the bank's loans, the bank said in a statement.
B/E holders would be creditors of the bank.
The return would reflect the nontransferrable nature of the debt instruments.
This is an alternative investment for the public, corporations, merchants and institutional investors, he said.
Saving with SME Bank is safe without risk and easy for money management, he said.
Those who had retired from state agencies and individuals with savings who haven't decided to invest their money in any business could invest in the bank's B/Es.
The new retail product is currently available at SME Bank's 95 branches nationwide.
"To raise funds from the public this year is our domestic funding source. And we want to reduce foreign borrowing," president Soros Sakornvisava said yesterday.
The SME Bank's B/Es, which had been limited to institutional investors, would be from now on sold to individual investors.
The three-, six- and 12-month B/Es offer a return of at least 1 per cent.
The minimum purchase is Bt1 million.
The B/Es can also be placed as collateral for the bank's loans, the bank said in a statement.
B/E holders would be creditors of the bank.
The return would reflect the nontransferrable nature of the debt instruments.
This is an alternative investment for the public, corporations, merchants and institutional investors, he said.
Saving with SME Bank is safe without risk and easy for money management, he said.
Those who had retired from state agencies and individuals with savings who haven't decided to invest their money in any business could invest in the bank's B/Es.
The new retail product is currently available at SME Bank's 95 branches nationwide.
Friday, October 2, 2009
SME BANK LENDING BT2.5 BN TO CREATE 50,000 FRANCHISES
The Small and Medium Enterprises Development Bank of Thailand will provide loans worth a combined Bt2.5 billion to Thapisuj Foods Group's franchisees, with a view to creating 50,000 entrepreneur jobs around the country.
Thapisuj Foods Group is the franchisor of Prikkareang pork noodles and grilled-pork meatballs.
SME Bank president Soros Sakornvisava yesterday said he expected the Bt2.5 billion to be released to Thapisuj Foods Group's franchisees within six months.
The Prikkareang franchise is the first such operation for which SME Bank has approved loans. The agreement is for Bt50,000 to be lent to each frachisee.
Soros said SME Bank expected to enter into similar agreements with two other franchise businesses by the end of the year. The bank will focus on the food business as its main priority, as this type of activity is easy to access for people wanting to run their own enterprises, he added.
The loan period is for a maximum of five years, while the interest rate will fall into one of two categories: 5 per cent for franchisees who are members of the Social Security Fund, and the minimum lending rate for others.
Industry Minister Charnchai Chairungrueng said he backed SME Bank's venturing into this kind of lending, as food-business franchises were a good way to reduce the unemployment rate.
Meanwhile, Labour Minister Phaithoon Kaeothong said the unemployment rate had declined to 500,000 from about 1 million people early this year, due to a resumption of recruitment in major industries such as automobiles and electronics.
Thapisuj Foods Group is the franchisor of Prikkareang pork noodles and grilled-pork meatballs.
SME Bank president Soros Sakornvisava yesterday said he expected the Bt2.5 billion to be released to Thapisuj Foods Group's franchisees within six months.
The Prikkareang franchise is the first such operation for which SME Bank has approved loans. The agreement is for Bt50,000 to be lent to each frachisee.
Soros said SME Bank expected to enter into similar agreements with two other franchise businesses by the end of the year. The bank will focus on the food business as its main priority, as this type of activity is easy to access for people wanting to run their own enterprises, he added.
The loan period is for a maximum of five years, while the interest rate will fall into one of two categories: 5 per cent for franchisees who are members of the Social Security Fund, and the minimum lending rate for others.
Industry Minister Charnchai Chairungrueng said he backed SME Bank's venturing into this kind of lending, as food-business franchises were a good way to reduce the unemployment rate.
Meanwhile, Labour Minister Phaithoon Kaeothong said the unemployment rate had declined to 500,000 from about 1 million people early this year, due to a resumption of recruitment in major industries such as automobiles and electronics.
Local wisdom through metal
Both children and adults are invited to learn more about our local wisdom in the ancient times during the "Thai Wisdom Through Metal Crafts" exhibition, which is running at Phufa Treasure Trove on the 4th floor of Siam Paragon until the end of the year.
Jointly organised by the Department of Archaeology, Faculty of Archaeology, Silpakorn University, the exhibition focuses more on metal crafts which can reflect our local wisdom in terms of how our ancestors 3,000 years ago managed to use fire to create such cultural objects.
Samples of ancient and present metal objects as well as pictures of selected metal pieces and of metalworking activities are on display with the aim of providing the general public with the preliminary knowledge related to metal crafts in Thailand.
Besides getting a bigger picture of the importance of local wisdom, visitors will learn about ancient metalworking in the Kingdom from the prehistoric periods to the present time.Examples of important archaeological sites related to ancient metal production in the country are also exhibited.RT
The exhibition opens daily from 11am-7pm. Admission is free of charge. For more information, please contact Phufa Treasure Trove on 02-129-4556.
Jointly organised by the Department of Archaeology, Faculty of Archaeology, Silpakorn University, the exhibition focuses more on metal crafts which can reflect our local wisdom in terms of how our ancestors 3,000 years ago managed to use fire to create such cultural objects.
Samples of ancient and present metal objects as well as pictures of selected metal pieces and of metalworking activities are on display with the aim of providing the general public with the preliminary knowledge related to metal crafts in Thailand.
Besides getting a bigger picture of the importance of local wisdom, visitors will learn about ancient metalworking in the Kingdom from the prehistoric periods to the present time.Examples of important archaeological sites related to ancient metal production in the country are also exhibited.RT
The exhibition opens daily from 11am-7pm. Admission is free of charge. For more information, please contact Phufa Treasure Trove on 02-129-4556.
OIE ACTION PLAN AIMS TO BOOST SME COMPETITIVENESS
The Office of Industrial Economics yesterday unveiled its 2010 action plan, which includes an early-warning system to strengthen the competitiveness of small- and medium-sized manufacturers.
Director-general Arthit Wuthikaro said the OIE would allocate Bt435.2 million todeveloping the early-warning system, which would help manufacturers adjust their business plans two months in advance.
"Our small- and medium-sized manufacturers have been seriously hurt by the economic crisis, because they lacked information that could have allowed them to adjust their business plans in time. This will help them weather future crises better," he said.
The early-warning system will be implemented in seven industries: food, autos, textiles, electrical appliances and electronics, steel and other metals, plastics and machinery.
The OIE will also draw up a road map for making the industrial sector competitive in the global market. It will include a plan to develop the Kingdom's mass transit and supporting industries, he said.
"In the first step, we'll study possible alternatives and investment opportunities for developing mass transit in Thailand. Next we'll promote business networks between local parts-makers and foreign mass-transit developers, which will sustain local manufacturers in the long term," he said.
Next year, the OIE plans to spend Bt249.7 million to continue improving manufacturers' productivity.
In collaboration with nine institutes and research centres, the money will be used to create 18,455 skilled labourers and reduce production costs at 652 factories.
The OIE will spend Bt78 million on "intelligent property" projects, which will include creation of seven new innovations in the coming year, Arthit said.
Director-general Arthit Wuthikaro said the OIE would allocate Bt435.2 million todeveloping the early-warning system, which would help manufacturers adjust their business plans two months in advance.
"Our small- and medium-sized manufacturers have been seriously hurt by the economic crisis, because they lacked information that could have allowed them to adjust their business plans in time. This will help them weather future crises better," he said.
The early-warning system will be implemented in seven industries: food, autos, textiles, electrical appliances and electronics, steel and other metals, plastics and machinery.
The OIE will also draw up a road map for making the industrial sector competitive in the global market. It will include a plan to develop the Kingdom's mass transit and supporting industries, he said.
"In the first step, we'll study possible alternatives and investment opportunities for developing mass transit in Thailand. Next we'll promote business networks between local parts-makers and foreign mass-transit developers, which will sustain local manufacturers in the long term," he said.
Next year, the OIE plans to spend Bt249.7 million to continue improving manufacturers' productivity.
In collaboration with nine institutes and research centres, the money will be used to create 18,455 skilled labourers and reduce production costs at 652 factories.
The OIE will spend Bt78 million on "intelligent property" projects, which will include creation of seven new innovations in the coming year, Arthit said.
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