Economy July 17, 2017 01:00

Business must absorb increased fuel prices: minister

The Commerce Ministry has warned that businesses should not cite the hike of fuel tariff (FT) in SeptemberDecember this year as an excuse to increase their product and service prices, as the rate hike is estimated to add little cost to their operฌations.

According to the ministry study, the FT hike of 8.87 satang per kilowatthour in SeptemberDecember will add only between 0.0001 and 0.1886 per cent to the cost of busiฌness. Therefore, it is not justifiable to claim the FT hike to justify an increase in product and service prices, said Minister Apiradi Tantraporn.

The ministry instructed related state agencies to closely monitor the situation to prevent the businesses from raising prices.

Temasek eyes investment rise in China’s new economy

Singapore investment firm Temasek Holdings will increase investment in China’s new economic sectors as the company is optimistic about China’s ongoing economic transition, a senior official of the company told Xinhua.

“Our longterm bullish view on China’s economic development remains intact,” Wu Yibing, Temasek’s joint head of China, said on Thursday. 

He called China a market of “absolute importance” for Temasek outฌside Singapore.

By the end of March, up to 25 per cent, or nearly $50 billion (Bt1.68 trilฌlion) of Temasek’s global investment portfolio had flown into the Chinese market, according to the company’s latฌest report.

The figure is the second highest among all investment destinations, only exceeded by Singapore, and higher than the combined volume of the firm’s investment in Europe and the US.

“China’s economy is going through a major transition, which has brought about a number of very attractive sectors including hightech, nonbanking finance, life science and consumption,” said Wu.

Investment in these industries has witnessed better performance than the overall investment portfolio, as they have directly benefited from China’s economic transition, as well as global technological innovation and a large and growing middle class, he said.

Over the past financial year ending on March 31, Temasek has invested in a number of Chinese companies, including the country’s leading online travel agency Ctrip, Alibaba-affiliated local service platform Koubei, and top-five courier ZTO Express. – Xinhua

LH Fund forecasts sunny days for Thailisted stock

LH Fund forecasts more capital to flow into the Thai bourse in the latter half of this year, suggesting that now is the right time to accumulate stocks for expected consistent earnings growth among Thai listed companies in the secondhalf.

Monrat Phadungsit, managing director at LH Fund, cited likely public investment, recovery in farm income and consistent Thai export expansion in the latter half of 2017 for the Thai listed companies’ estimated earnings growth in the period.

In regard to fixed income, LH Fund will launch its open ended LH Global Income Fund (LHGINCOME) from July 1725. The Bt3billion fund offers diversified investment and foreign fixed income funds’ higher yield to maturity. –The Nation