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Thailand: Rich gain most from rising tide
After a subdued spell, Thailand’s economy is gathering momentum. With rising exports and a recovery in domestic demand, the World Bank has forecast that economic growth will exceed 4% in 2018 for the first time since 2012.
Relative to this modest upturn, the nation’s richest are enjoying a disproportionate wealth boom, spurred by stock market gains and a stronger baht.
The combined net profit of listed companies on the Stock Exchange of Thailand and the Market for Alternative Investment last year was 990 billion baht or US$31 billion, up 8.9% year-on-year. This was underpinned by Thailand’s promising economic growth, especially in the export and tourism sectors, while higher oil prices had pushed up earnings growth among listed companies operating in the energy and utility sectors.
Forbes Asia said the 50 wealthiest families are collectively worth more than copy62 billion, up by close to one-third since their fortunes were last measured 11 months ago.
According to a new release of Forbes Asia, two-thirds of the nation’s richest saw their wealth swell, with the top four alone adding close to $25 billion. Among the big dollar gainers were the Chearavanont brothers of the Charoen Pokphand Group, who remain on top with a record $30 billion.
They got a boost from soaring shares of their key holdings, such as 7-Eleven operator CP All, which benefited from an uptick in consumer sentiment, and Chinese insurer Ping An, whose fintech bets are paying off.
The Chirathivat family came in the second with $21.2 billion in net worth, up from copy5.3 billion last year. The family’s Central Group, which is led by Tos Chirathivat, has expanded aggressively in various sectors: retail, hotels, property and e-business, achieving average growth of 11% over the last five years.
The fortunes of energy drink makers were also up, none more so than Red Bull, owned by Chalerm Yoovidhya and his clan. Analysts recommended a revaluation of privately held Red Bull, more in line with its listed American rival Monster, pushing the Yoovidhya family up to No.3.
Another big winner is Indian-born plastics tycoon Aloke Lohia, whose prolific dealmaking since 2014 has seen his Indorama Ventures net 16 acquisitions across the globe, including in Europe and North America. For 2017, the company, which rose to the top 10 ranks of Asian plastics makers, reported a 17% jump in revenue to $8.4 billion. A Bangkok resident for three decades, Mr Lohia’s wealth surged 89% to $3.3 billion.
Reflecting rising prosperity, there are 32 people whose wealth increased by more than copy billion this year, four more than in 2017. The four new names on the list include two newly minted billionaires, who join the ranks of the super-rich after taking their companies public.
US-educated Sarath Ratanavadi, chief executive of Gulf Energy Development, which listed in December, is the richest newcomer, at $3.4 billion. The buoyant beauty business yielded two newcomers, including Sarawut Pornpatanaruk, whose Do Day Dream is cashing in on the skin-whitening craze.
Of the nine women who feature in the top 50, two returned to the fold this year, including matriarch Somporn Juangroongruangkit, chairman of auto parts group Thai Summit, whose son Thanathorn took a surprising plunge into politics.
Media magnates, buffeted by weak ad revenue and competition from online channels, were among those not faring so well. Given the list’s required minimum net worth of $600 million, seven dropped off, including Pawat Vitoorapakorn, whose plastic packaging maker Eastern Polymer Group saw revenue and net profit fall on tepid demand and higher material costs. The figures are based on stock prices and exchange rates from April 20.
Source: https://www.bangkokpost.com/news/general/1457829/rich-gain-most-from-rising-tide