Broadsight Issue 7 November 2013

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It is with great pleasure to present November's edition of Broadsight, the corporate monthly magazine from The Broadgate Financial Group. 3 reasons why you should read this months issue: 1. Insightful articles across the 3 industries we are active in: Renewable Energy, Green Construction & Sustainable Plantations. (pages 5-10) 2. A feature of our innovative construction material - LiteCast. (pages 11-13) 3. An in-depth Q&A with the President of Schneider-Electric Thailand. (pages 14-15) Also we kindly request your feedback (page 20) in order to enhance the quality of Broadsight's content. Once again our appreciation for your continued readership and support.

Transcript of Broadsight Issue 7 November 2013

  • July 2013BROADSIGHT by

    1 Broadgate Financial

    BROADSIGHT by

    November 2013Issue 7

  • November 2013BROADSIGHT by

    Foreword

    Dear Readers,

    I am pleased to present the 7th edition of Broadsight, our corporate monthly magazine. We consistently try and improve

    the content we publish which we hope readers find both interesting and informative.

    Ever since inception, many things around us have changed to meet peoples rapidly changing needs. When

    industrialization and subsequent human development occurred, our natural resources have suffered and have

    continued to deplete at an alarming rate. Sustainable development means the ability to meet todays needs without

    compromising the ability for future generations to obtain theirs. The Broadgate Financial Group and its divisons have

    made many efforts to understand and stay committed to the concept of sustainability and the challenges surrounding

    this.

    Therefore, we have focused on the development of environmental friendly products. Our three core divisions are all

    focused on sustainability. Firstly, Broadgate Construction has just launched LiteCast, a lightweight precast concrete

    panel incorporating the Easy Panel technology at its core. Please turn to the mid section of this magazine for more

    information on LiteCast and the projects currently underway. Secondly, Broadgate Energy looks at projects related to renewable energy which provides an excellent alternative to standard energy. Thirdly, Broadgate Plantations and its

    partners have extensive expertise in sustainable plantation development and funding. Our core values define the

    projects we undertake.

    Finally, in order to enhance your readership experience we kindly request you to fill in this short feedback questionnaire

    on Broadsight, which will only take a few minutes to complete.

    Jenjira Praneet

    Head of Administration

  • November 2013BROADSIGHT by

    News Feed

    Industry News Energy

    Industry News Plantations

    Industry News Construction

    Project News Q&A

    ISR Precast Concrete Contact Information

    All of us at Broadgate Financial are pleased to

    present you the seventh issue of our Corporate

    Magazine: BROADSIGHT. We wanted to make it clear, comfortable to

    read and enjoyable. Thats why in each of the

    future issues you will find the same guidelines

    with:

    The hottest news from the previous

    month along with upcoming important

    issues relating to the business world in

    ASEAN and beyond ;

    Industry news related to our services in

    Plantations, Construction and Energy ;

    A project update relating to one of our

    divisions ;

    An insightful Q&A with an industry

    leading expert ;

    And finally a presentation of an

    Individual Social Responsibility project;

    We do hope you will enjoy this magazine as

    much as we did compiling it. If you have any

    questions or requests, please feel free to

    contactus at

    clientservices@broadgatefinancial.com.

    In this issue of BROADSIGHT,

  • November 2013BROADSIGHT by

    News Feed

    News Feed

    News Feed

    Market News Cambodia again near bottom in survey of business start-ups

    Higher fees and new registration requirements have made starting a business in Cambodia more difficult over the past year, according to a report released by the World Bank yesterday. Cambodia ranked 137th out of the 189 countries surveyed in the report, titled Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises. Cambodia slid two positions from 135th last year. In the annual report that investigates rules and regulations that enhance and constrain business activity, the US-based World Bank outlined a number of new bureaucratic hurdles that caused Cambodias rank to dip. Despite the rising fees, the report

    showed that in terms of getting

    credit, Cambodia ranked 52nd out

    of all 189 countries, a 10-place

    jump.

    http://www.phnompenhpost.com

    China's service sector growth hits one-year high China's service sector grew at its fastest pace in a year in October, the latest sign of a recovery in the world's second-largest economy. The non-manufacturing Purchasing Managers' Index (PMI) rose to 56.3 in October from 55.4 in September. The report comes just days after data showed that China's manufacturing PMI rose to an 18-month high October. The PMI is a key gauge of the sector's health and a reading above 50 indicates expansion. "The non-manufacturing sector should continue to develop" said Cai Jin, vice-president of the China Federation of Logistics and Purchasing. After years of rocketing growth, China

    saw its pace of growth slow in the first

    two quarters of this year. There have

    been concerns that its growth may dip

    further. not least because of a

    slowdown in demand for its exports

    from key markets. However, data

    released over the past few weeks has

    helped allay those fears.

    http://www.bbc.co.uk/

    Thai Amnesty Effect Thailand's baht was set for its worst week in a month and bonds fell as foreigners cut holdings of the nations assets amid concern a bill granting amnesty for political offenses will lead to instability. The lower house passed the amnesty bill in its third reading in a parliamentary session that closed at 4:25 a.m., House Speaker Somsak Kiatsuranont told reporters today. About 20,000 people joined a protest in Bangkok last night against the law. The political risk in Thailand, which has been a lingering issue, is beginning to get attention again with the amnesty bill issue, said Tohru Nishihama. The law would give amnesty to people and groups affected by organizations set up after the military coup in 2006 and those who took part in political demonstrations. The opposition party claims it would annul legal cases against former Prime Minister Thaksin Shinawatra, brother of the current premier Yingluck Shinawatra. The bill will be debated in the Senate.

    http://www.bloomberg.com

    Newton was right about thai economy The law of gravity dictates that what goes up must come down. This is also true for an economy: When it has been expanding quickly, growth is bound to fall unless it is further supported by some gravity-defying force. Thailand's gross domestic product (GDP) advanced 2.8% in the second quarter compared with the same quarter last year, slowing further from the 5.4% rate in the previous quarter. The closing figure for the final quarter last year was a much more impressive 19.1% rate, albeit from the flood-soaked base of late 2011. All in all, the latest official release suggests, as the Bank of Thailand put it, that "normalisation" of the economy to its potential level is taking place following a period of extraordinary growth. On a quarterly basis, however, GDP has declined for two consecutive quarters. Therefore, we have entered a technical recession. This prompted many research houses to cut their growth projections for 2013, from around 5% or higher to below 4%.

    http://www.bangkokpost.com

    News feed

  • November 2013BROADSIGHT by

    With the recent economic downturn, financial

    institutions have felt the need to reduce the overall risk

    of their investment portfolios. One way to achieve this

    goal is to enhance their selection criteria. Regarding

    plantation financing, this criteria should focus on

    highlighting projects that are able to produce steady

    and long-term cash flows. It seems obvious that these

    projects should avoid any negative environmental or

    social impacts.

    According to Knight (2010), plantations that adopt

    sustainable practises are less exposed to a certain

    number of risks. First, the compliance risk of violating

    local regulations is lower. Then, the social risk of

    entering in to conflict with local communities, NGOs

    and labourers is low. Moreover, the marketing risk of

    loosing customers is lower as the demand for

    sustainable products rises.

    Finally, the reputation risk of damaging its brand image

    is lower. Reducing these risks strengthen the position

    of companies that financial institutions invest in. By

    doing so the institution itself is exposed to fewer risks.

    In addition, the burning of forests to clear land for

    plantations has been a major source of haze in

    Southeast Asia posing serious health problems.

    Finally, indiscriminate use of fertilizersand insecticides

    by some producers is polluting surface and

    groundwater sources. The following graph illustrates

    what cash flows could be expected from a sustainable

    plantation in comparision with non-sustainable ones,

    taking into account their risk profile.

    In contrast with these bad practises, plantations run by

    responsible growers need fewer inputs, which results

    in less pollution and soil degradation. If best practices

    are applied in selecting and acquiring land for new

    plantations, plantations can operate without further

    destruction of natural forests and associated

    greenhouse gas emissions. It pays more attention to

    the rights and livelihoods of forest dependent

    populations and species. Sustainable production can

    help to meet the worlds growing demand and

    generate income and employment for local rural

    economies in tropical regions.

    Jason Campbell and Bndicte Ciotti

    Why Promote Sustainable

    Plantations?