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?