Session 2: An Overview of Building & Construction Opportunities in Thailand

Transcription

1 Lena Ng Board Advisor AMATA Corporation PCL Session 2: An Overview of Building & Construction Opportunities in Thailand 02 July 2015

2 Simplicity is the ultimate sophistication ~ Leonardo Da Vinci Overview Copyrights Amata Corporation PCL

3 Agenda Where? Thailand Post-Coup Updates What? Thailand Construction Industry Updates Who? Overview of AMATA Corporation How? Potential Project Leads in Thailand Copyrights Amata Corporation PCL 3

4 Where? Thailand Overview of Post-Coup Thailand 1. Led by Prime Minister Prayut, the current administration has taken various measures to boost economic growth and stabilised Thailand s short-term economic outlook & business confidence. 2. In Qtr1 2015, Thailand's GDP grew 3%. This was driven by private investment, public spending and a recovery in tourism. 4

5 Where? Thailand 3. Three Trillion Baht (US$101 billion) Infrastructure Development Plan (e.g. Rail, Mass Transit, Airport, Seaport). Thailand =>AEC LogHub 4. In 2014, BOI s record high of over 3,400 applications totaling US$ 31 billion, an increase of 117% from 2013 of investment value. 5. New 7-year investment promotion strategy, plans to increase government spending, as well as initiatives to drive tourism. 5

6 Where? Thailand Singapore-Thailand Leaders Retreat (11Jun2015) 50 Years of Diplomatic Relationship. SG-TH inked 4 key agreements during leaders retreat: 1. Renewed agreement on avoidance of Double Taxation 2. Cruise Tourism promotion 3. SIPA-MDA MOU on Media Collaboration 4. FTI-SBF MOU on facilitating SMEs trade, investment & biz collaboration.

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8 Agenda Where? Thailand Post-Coup Updates What? Thailand Construction Industry Updates Who? Overview of AMATA Corporation How? Potential Project Leads in Thailand Copyrights Amata Corporation PCL 8

9 What? Construction Key Drivers for growth in Thailand Construction Sector Compound annual growth rate (CAGR) of 6.03% during the review period ( ). Key drivers for growth: favourable monetary conditions, greater political certainty public and private investments in Thai residential, infrastructural and commercial construction projects. Introduction of Real Estate Investment Trust (REIT) in January 2013 also helped to boost the country s construction activities. Stronger Emphasis on Public-private Partnership (PPP) to Boost Efficiency Thailand s as a regional hub of ASEAN Economic Council (AEC) -> Focus on Thailand s government relationship -> Focus on Thailand s government initiatives -> Focus on Thailand s core sectors 9

10 What? Construction First Day Trading (30Jun2015) - AMATA SUMMIT REIT (~US$142million)

11 What? Construction Source: BOT, TradingEconomics 11

12 What? Construction 12

13 What? Construction US$101Bil Thailand Airport Expansion 1. US$1.47 billion expansion plan for Suvarnabhumi International Airport, increasing its capacity by 20 million passengers a year. 2. New satellite terminal linked to the main terminal by monorail (US$860m). 13

14 Agenda Where? Thailand Post-Coup Updates What? Thailand Construction Industry Updates Who? Overview of AMATA Corporation How? Potential Project Leads in Thailand Copyrights Amata Corporation PCL 14

15 AMATA Group Who? At A Glance Established since 1989, Amata Corporation PCL is the largest listed Thai Conglomerate in the Industrial Estate sector. Amata is listed on Stock Exchange of Thailand since Amata won the SET Best Performance Company Award in In 2013, Amata is ranked as SET Top 50 Publicly Listed companies in Corporate Governance. Amata has a market cap of USD$1billion and an annual revenue of more than USD$300million. Revenue streams are from land sales, land lease and value-added services (e.g. utilities & water). Amata currently owns two mega industrial estates on the Eastern Seaboard of Thailand & another strategic industrial estate in Vietnam. Total GDP contribution by factories located in Amata Nakorn and Amata City estates exceeded USD$30 Billion. Close to 1,000 customers - Global Fortune 500 corporations, MNCs, leading local enterprises & research organisations 15

16 Amata Founder Vikrom Kromadit CEO of AMATA Corporation PCL Chairman of AMATA Foundation Forbes Thailand s 40 Richest list Forbes Asia 'Hero of Philanthropy list Entrepreneur, Celebrity, Author, Radio & TV Host Caravan Asia, ASIA Rising Host 16

17 Amata Key Clients Copyrights Amata Corporation PCL 17

18 Agenda Where? Thailand Post-Coup Updates What? Thailand Construction Industry Updates Who? Overview of AMATA Corporation How? Potential Project Leads in Thailand Copyrights Amata Corporation PCL 18

19 How? Case Study Copyrights Amata Corporation PCL 19

20 How? Case Study Successful Match-making in 2008 (S$25mil Reg Cap) K. Chartchai Panichewa TEE Land Ltd Holding company and Family Listed on SGX Mk. cap: $116.2m (as of Mar 25,2015) 100% 100% TEE Development Pte Ltd Chartchewa Co., Ltd Property developer in Singapore 49% 51% Holding company Listing company Chewathai Plc. Chewathai 50% Property developer 99% Chewathai Hub Soon Ltd Property developer Chewathai Interchange Co., Ltd. Property developer Copyrights of Chewathai 20

21 Business Overview How? Case Study Residential Ready Built Factory Copyrights of Chewathai 21

22 Residential Project - current How? Case Study CHEWATHAI RATCHAPRAROP Next station, Ratchaprarop Location : Ratchaprarop Road Project type : High rise : 26 storey Project value : THB 1,350 mil Complete : Q Total area : 3,560 sq.m Sellable area : 17,213 sq.m. No. of unit : 325 Copyrights of Chewathai 22

23 How? Case Study Ready Built Factories Ready Built Factories for Rent Cater to various needs and requirements Great flexibility and convenience to shorten start-up period and save start-up costs Build-to-suit factories with specific technical or location requirements Location : AMATA CITY (Rayong) Project type : Ready Built & Build to suit Project value : THB 300 mil Complete : Q Total area : rai Sellable area : 17,120 sq.m. No. of unit : 10 Courtesy of Chewathai Copyrights 23

24 How? Proj Leads 24 Amata Nakorn (Thailand) Amata City Rayong (Thailand) Amata City (Vietnam) TOTAL Area 3,200 2, ,330 hectares Factories Employee ~150,000 ~25,000 ~25,000 ~200,000 Amata Industrial Estates contribution to GDP ~ US$30Billion! Location in Great Mekong Sub-region Existing Project Expansion Project Copyrights Amata Corporation PCL 24

25 Copyrights Amata Corporation PCL How? Proj Leads

26 How? Proj Leads Partnering AMATA for Success in ASEAN AMATA keen to explore with BCA team on initiatives to export Singapore Contractors/Builders/Equipment/Materials Providers/Masterplanning/Consultancy/Project Management Expertise to ASEAN Example of Potential Projects include: Industrial City Education City Smart City Ready-Built Factories Workers Dormitory Power Plants/Waste Water Plants Hotels/Condominiums/Apartments 26

27 Key Takeaways Right Timing Right Resource Right Partner!! Critical Success Factors for SG Companies 27

28 Thank you! Contact Details: Lena Ng Board Advisor Linkedin: sg.linkedin.com/in/lenang00 7