Business
Central Pattana : MD&A Q1/2025 31 March 2025
Central Pattana : MD&A Q1/2025 31 March
About this update from Central Pattana Public Co. Ltd.
[{"type":"text","content":"\n \n Central Pattana PLC\n \n \n Management's Discussion and Analysis (MD&A) 1Q25\n \n EXECUTIVE SUMMARY\n \n \n \n In 1Q25, domestic consumption in Thailand was primarily driven by the government's \"Easy E-Receipt 2.0\" program, which was effective from January 16 to February 28, 2025. The program allowed shoppers to claim personal income tax deductions on eligible purchase (Bt30,000 from VAT-registered businesses and Bt20,000 from OTOP businesses, all of which need to be able to issue electronic receipts). In April 2025, there were also initiatives to support the property business namely 1) Bank of Thailand's temporary relaxation of the Loan-to-Value regulations on housing loans and 2) Reduction in transfer and mortgage fees. Effective from May 1, 2025, to June 30, 2026, banks can grant housing loans up to 100% of the collateral value for all residential properties, easing previous restrictions for second and third homes. Moreover, the property ownership transfer fee has been reduced from 2% to 0.01% and the mortgage registration fee has been reduced from 1% to 0.01%. Such transaction costs reduction applies to properties priced at Bt7mn or lower and have been effective from April 9, 2025 - June 30, 2026.\n \n \n \n On 2025 outlook, the Office of the National Economic and Social Development Council (NESDC) expects Thai economic growth to accelerate to 2.8%YoY. Key supporting factors for economic growth in 2025 include: (1) increasing government expenditure, particularly investment spending; (2) continued expansion of private consumption and recovery of private investment; (3) sustained recovery of the tourism sector and related services; and (4) continual growth of merchandise exports. Private consumption expenditure and investment are forecasted to grow 3.3%YoY in 2025, which was an upward revision from the previous forecast of 3.0%YoY, thanks to robust labour market and mild inflation. However, there have been revisions on 2025 Thai GDP growth forecasts, most recently from the Fiscal Policy Office (FPO). The FPO revised 2025 GDP growth from 3.0%YoY to 2.1%YoY but kept domestic consumption growth forecast similar to the previous forecast at 3.2%YoY.\n \n \n \n In terms of CPN's performance, the Company continued to deliver solid performance from the retail and hotel businesses, with all-time-high overall gross profit ma...