SCI Annual Report 2015

Annual Report Annual Report

18.04.2016 Views

Sci Electric Public Company Limited Table 2: Quantity of industrial factories licensed to carry out business. Year Number (Factory) Carrying out new business Capital (Million Baht) Workers (Persons) Growth Rate 2011 3,931 209,701.04 95,541 - 2012 4,101 216,478.00 99,961 4.32% 2013 4,676 368,871.23 120,018 14.02% 2014 4,636 375,832.65 113,433 (0.86%) 2015 4,434 397,270.39 118,490 (4.36%) Source: Industrial Information Unit, Department of Industrial Works Where on the part of the real estate market, in the beginning of 2015, the real estate market was faced with a slow-down situation due to the reason that the economic situation had not yet been well recovered consequently resulting in the ability in buying residences of consumers to decline and that financial institutions were more prudent in granting residential credit approvals. In addition, the real estate market, at present, has a substantial number of the accumulated residences remaining left unsold. By the end of 2015, the government issued a measure to stimulate the real estate sector by providing supports on loans for low-income residence buyers and reducing fees on the transfers and mortgage registrations (with the expiry date on 30 April 2016) consequently resulting in the real estate market at the stage of the final turn of 2015 to be adjusted well better from previously being under a lifeless state. Such good consequence would perpetually continue into 2016, particularly, in the first 4 months of 2016 which is the period before the measure on the abatement of the fees on real estate transactions will come to an end. So, it is expected that the real estate market atmosphere would likely be gradually better once again. As for the real estate sector this year which is after the end of the stimulating measure whether the market could maintain the growth rate continuously under the uncertainty of the economic situation or not is still in question. All in all, the domestic economic development including the investments on the infrastructures which will result in the buying power of the people and the decisions on the investments in the new projects of the entrepreneurs would require to be monitored. In respect of the point of view on the real estate market in 2016, most of the entrepreneurs are still believing that the market will continue to grow with the expectation on the expansion of not less than 5% and that they mostly place their weights on Group of the Residence Projects along electric train lines both currently in operations and to be opened for operational services. In this connection, the large and small sized entrepreneurs have announced the inaugurations of 196 new projects with the total value of 196,000 million Baht. When comparing the target in 2016 to 2015, it can be seen that most of the entrepreneurs have opened their projects more than the preceded year in believing with their confidences that real estate business in 2016 will be brighter than 2015. Table 3: Real Estate Investment Plans of Major Entrepreneurs. Value (Ten Thousand Million) Number of Projects Pruksa 5.4 65 Sansiri 5.05 21 Land & House 2.35 14 Supalai 3.65 35 L. P. N. 1.76 15 Origin 1 10 Lalin 0.4 8 Source: Thansettakij Newspaper 138

Provided, however, that Kasikorn Research Center expects that construction industry will receive positive consequences from the investments and various measures of State sector including the economic links in ASEAN Group after the opening of free AEC by expecting the construction investment value in 2016 to possibly grow in the frame of 5.5% - 5.7% comparing with 2015 that expanded at 10%. State Sector Projects: In 2015, most of the State sector investments were continuous projects and small projects. The investments in large sized projects were hindered by a delay due to the reason that the State sector had increasingly imposed stricter inspecting measures. By the end of 2015, the clarity on the investments in large sized communication infrastructure was obviously apparent. Particularly, during the second half of the preceded year, the investment budget in the lineup had increased over 20%-25% when comparing with the same period of the preceded year which accounted for the value of more than 100,000 million Baht. The accelerated push on the 19 large sized investment projects with the total valuing of 1.6 trillion in 2015- 2016 from State sector resulted in a good consequence to the construction contacting industry, especially, major contractors directly tendering the bids. In 2015, the bids on approximately 6 large sized infrastructure projects valuing at approximately 250,000 million Baht were approved and that the investment on which would begin in 2016. Whereon in 2016, there are 12 large sized investment projects with money line for the investments of approximately 1.5 trillion Baht awaiting in line. Most of the projects among such number are rail systems and inter-city motorways projects under Transport Communication Infrastructure Development Strategy of Thailand, B. E. 2558-2566 (2015-2022) with the Medium and High Speed Train Projects including Airport Expansions implemented as an addition. Kasikorn Research Center expects that the government can invest in the projects continuously and that the investments in the large sized infrastructure projects (particularly, Motorway, Double Rail Tracks, Electric Trains and Suvarnabhumi Phase II Development Projects) will be more progressive in the second half of the year, especially, the projects where the bids on which were opened during the period before the end of 2015 and in early 2016. It is expected that the investment money of the State sector will be injected into the economic system by the end of 2016 and in full fledge from 2017 to 2018. Private Sector Projects: In 2015, construction industry in private sector had slowed down in conformance with the economic slowdown. Kasikorn Research Center views it as that if the government could progressively push the investment projects in accordance with the Action Plan, the build-up of confidence in the private sector would be likely. In addition, more investment money could be injected into Thai economic system in 2016. Provided, however, that the government investments which are more progressive and obvious will help private sector on the investment planning in the future with more solid confidence. The government’s accelerations on the communication network construction works both purple line route electric train which is opened for use in 2016 and blue line route extension which will be opened for operations in 2017-2018 for utilizations sooner will result in the constructions of the private sector and real estate market to expand as expected. Construction Institute of Thailand expects the Thai construction industry overview in 2016 to grow more than 10% while the private sector’s new constructions were reversely affected somewhat rather severely from the economic slowdown in the first half of 2015. This could be evinced by a slowdown on the launching of new projects. However, it had a trend of better adjustment after the increase in the construction work of the State sector due to the reason that the government had tried to push for the rising on the spending of the consolidated backlog budget from the 3rd quarter of 2014 until the present. It is expected that such move would result in the private sector construction to begin to be well picked up in the second half of 2015. Whereon the manufacture of high voltage cable towers and telecommunication towers which will be related to the growths of power generation and telecommunication industries, the Power Development Plan (PDP) would have the effect on work expansions in all parts of electrical systems. Annual Report 2015 Telecommunication Industry Situation There is a trend on the increase in the number of mobile subscribers continuously. In 2014, 97.10 million numbers were used by mobile subscribers, which was an increase from 2013 of approximately 4.5%. Proportion of the mobile subscribers per 100 populations is at 144.9% which means that 1 person averagely uses 1.4 mobile telephone numbers. The expansion on the number of mobile subscribers coupled with the network development to back up 3G and 4G technologies have prompted the 3 main Mobile Operators to map out the policy on the expansion of the networks to back 139

Sci Electric Public Company Limited<br />

Table 2: Quantity of industrial factories licensed to carry out business.<br />

Year Number<br />

(Factory)<br />

Carrying out new business<br />

Capital<br />

(Million Baht)<br />

Workers<br />

(Persons)<br />

Growth Rate<br />

2011 3,931 209,701.04 95,541 -<br />

2012 4,101 216,478.00 99,961 4.32%<br />

2013 4,676 368,871.23 120,018 14.02%<br />

2014 4,636 375,832.65 113,433 (0.86%)<br />

<strong>2015</strong> 4,434 397,270.39 118,490 (4.36%)<br />

Source: Industrial Information Unit, Department of Industrial Works<br />

Where on the part of the real estate market, in the beginning of <strong>2015</strong>, the real estate market was faced with a slow-down<br />

situation due to the reason that the economic situation had not yet been well recovered consequently resulting in the ability<br />

in buying residences of consumers to decline and that financial institutions were more prudent in granting residential credit<br />

approvals. In addition, the real estate market, at present, has a substantial number of the accumulated residences remaining<br />

left unsold. By the end of <strong>2015</strong>, the government issued a measure to stimulate the real estate sector by providing supports on<br />

loans for low-income residence buyers and reducing fees on the transfers and mortgage registrations (with the expiry date on<br />

30 April 2016) consequently resulting in the real estate market at the stage of the final turn of <strong>2015</strong> to be adjusted well better<br />

from previously being under a lifeless state. Such good consequence would perpetually continue into 2016, particularly, in the<br />

first 4 months of 2016 which is the period before the measure on the abatement of the fees on real estate transactions will<br />

come to an end. So, it is expected that the real estate market atmosphere would likely be gradually better once again. As for<br />

the real estate sector this year which is after the end of the stimulating measure whether the market could maintain the growth<br />

rate continuously under the uncertainty of the economic situation or not is still in question. All in all, the domestic economic<br />

development including the investments on the infrastructures which will result in the buying power of the people and the decisions<br />

on the investments in the new projects of the entrepreneurs would require to be monitored.<br />

In respect of the point of view on the real estate market in 2016, most of the entrepreneurs are still believing that the<br />

market will continue to grow with the expectation on the expansion of not less than 5% and that they mostly place their weights<br />

on Group of the Residence Projects along electric train lines both currently in operations and to be opened for operational<br />

services. In this connection, the large and small sized entrepreneurs have announced the inaugurations of 196 new projects<br />

with the total value of 196,000 million Baht. When comparing the target in 2016 to <strong>2015</strong>, it can be seen that most of the<br />

entrepreneurs have opened their projects more than the preceded year in believing with their confidences that real estate<br />

business in 2016 will be brighter than <strong>2015</strong>.<br />

Table 3: Real Estate Investment Plans of Major Entrepreneurs.<br />

Value (Ten Thousand Million)<br />

Number of Projects<br />

Pruksa 5.4 65<br />

Sansiri 5.05 21<br />

Land & House 2.35 14<br />

Supalai 3.65 35<br />

L. P. N. 1.76 15<br />

Origin 1 10<br />

Lalin 0.4 8<br />

Source: Thansettakij Newspaper<br />

138

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