What's new in business news August 14, 2013

Koh Samui as model low-carbon tourist destination, PTT denies Myanmar bribery claim & used car bad loans up due to first car buyer program.

TOURISM

Koh Samui has been chosen by the Asia-Pacific Economic Cooperation group to become a model low-carbon tourist destination over the next 3-5 years.

Rapid growth resulting from the tourism boom on the island has caused Koh Samui to face serious energy shortages.

For one, air conditioners in hotels account for half of a hotels' power consumption.

The island suffered a three-day electricity blackout last year, while there have been problems with wastewater treatment as well.

Koh Samui obtains all of its electricity from the mainland, with consumption increasing by 20% each year.

The electricity supply has been increased but this is expected to support the island's growth for no more than a decade.

Strategies to achieve low-carbon tourism will include zoning to control land use as well as developing public transportation & alternative energy sources such as solar energy and energy from waste.

Some green hotels already work to reduce carbon emissions and can raise their room rates because they are more attractive to tourists. [Read rest of article here]

BANKING 

Banks still stable as Non-Performing Loans increase

An increase in non-performing loans (NPLs) for automobiles in the second quarter can be attributed mainly to used-car owners.

The sharp fall in used-car prices came after the government offered a tax rebate for first-time car buyers which has eroded bank's asset quality.

There has been an increase in NPLs, but this is not a major concern destabilising financial institutions, as the current NPL rate is not high compared with bank loans, and commercial banks have prepared enough loan-loss reserves to cushion against future financial risks. [Read rest of article here]

CORPORATE GOVERNANCE

PTTEP rebuffs Myanmar bribery claim

PTT Exploration and Production (PTTEP), Thailand's sole SET-listed upstream petroleum company, denies transparency and bribery allegations related to its acquisition of MD7 and MD8 blocks in Myanmar's Martaban Sea.

Chief executive Tevin Vongvanich responded yesterday to a report on the Myanmar Times website by saying PTTEP has a policy of not paying bribes in exchange for exploration and production licences.

The company is a publicly listed company with a lot of auditors such as the Office of the Auditor-General of Thailand, as well as shareholders and the Securities and Exchange Commission (SEC) and strictly adheres to transparency when doing business. [Read rest of article here]