Sanyo Shuts Down Its Production Facilities In Thailand

[hellodolly]

I am surprised more large companies have not decided to do the same

IMO it is quite clear that the is no plan in place for corrective action to ensure

that flooding does not happen again

For so many companies to put yp with the issues in Thailand, the labor must

come very cheap or they must be getting a lot of business benefits.

You are forgetting the 100 mile long tunnel 10 kilometers down with a thoroughfare on top of it. O ya I forgot it will be done in two years

I know it was a misprint but still the whole thing does not show any real solution to the problem.

Just another impractical plan to allow for more tea money in the 8 figure numbers.

Foreign investors know that the Government put all their efforts in controlling the floods into saving a few areas in Bangkok and the fact that it held back the water in the manufacturing areas longer than need be does not sit well for them or tel them that the government is really concerned with them.

Yes I know the Government says they are going to do this and that but protecting parts of Bangkok at the expense of others sends a different message one that is not just talked about .

Glad to hear that there is a shortage of workers in the industry the 1,600 will be able to find another job.

But I wonder how many of them will have to relocate.

[hellodolly]

This will be the first of many.

Higher wages, political instability, mass demonstrations, corruption, etc etc. It all adds up. Before the floods, it was too expensive to leave. Now it is too expensive to start again.

Well I agree with you except the corruption.

It is a common myth on T V that Thailand is the only country with corruption.

Fact is they can stay in Asia in another country and get far more corruption.

[noitom]

Some interesting facts about Sanyo on this site.

http://factsanddetai...24&subcatid=157

It's too early to say but what are the knock on effects of this news, what are the companies who manufacture consumer products using components made by Sanyo going to do?

Good question!! There is a residual fallout in the supply chain, distributors, suppliers, shippers..etc. Somboon from the institute also mentions Maxon. How many others does he know about that he is not saying? Why is Somboon, from the Electronics Institute, the only one the reporter is talking to? What about the Thai director who supposedly took out the 51%? Where is he/she? The reporter should be tracking him/her down for comments on the situation? What about seeking out any of the other Thai 51% partners in other companies? When will we hear about any of them? Secrecy, opaque operations.

[hellodolly]

<br />Hello Sanyo execs, you could have paid me a million dollars to give advice earlier on. It would have been the smartest million dollars you ever spent. I would have advised you build your factory on higher ground, away from flood plains. P.S. I'm still for hire.<br />

<br /><br /><br />

Or in another country altogether...one with a better educated workforce and incentives to want to be here...

they're already here.

You are looking for pie in the sky.

Yes you can find a country with a better educated work force but you will have to pay top dollar to get it.

The cheap labor was a lot of the reason for coming to Thailand.

As for educated work force. I have good education and if I was to go to work in the electronics field they would have to educate me.

By and by the industries are the one doing the educating.

[jimbeam1]

I thought to operate a business in Thailand you had to hand over 51% of the controlling interest to Thai's. How can they simply shut up shop when they don't have control of the company. I was going to set a small business in Thailand but I wasn't going to use all my money and then give 51% away just didn't seem like good business sense to me.

Not really sure how the large companies work out the corporate structure, but I do know that Honda, Sanyo, and others are NOT turning over 51 % of their business to a group of corrupt Thai "businessmen"........I think that only applies to small business owners that get screwed over by their Thai partners.

Regarding leaving, I think the companies were willing to put up with corruption and political instability. Apparently flooding and higher wages are the straw that broke the camel's back. I suspect many other companies are going to leave as well. The 300 baht minimum hike must have sounded great to the red buffaloes, but when everyone is jobless after being laid off it won't look so good then. The best thing the government could do now is to rescind that hike, and cite changing economic conditions. They are already in office, and have not done nearly all the other things they promised, so should not be a problem......

Regarding Thaniya, Nana Plaza and girls for Japanese businessmen, I suspect that when a bunch of Japanese companies move to Cambodia, that in short order there will be a bar area in PP catering to their business, full of cute Vietnamese girls to service them....... :jap:

I was actually under the same impression. Farangs and foreign companies set up businesses in Thailand, they contribute 100% of the costs and finacial backing and thai's own 51% of the interests and control the companies/businesses. I always wondered why farangs invest thier retirement funds in small businesses (bars etc) in Thailand when they will never actually own them and only be the minor stakeholder. Excellent business risk for the thai's, they contribute 0% make a great profit if the business suceeds and loose nothing if it collapses.

I am not 100% certain. But my belief is that if your investment is Bt40 million or more you have total control of your company?

jb1

Edited December 10, 2011 by jimbeam1

[ballpoint]

Some interesting facts about Sanyo on this site.

http://factsanddetai...24&subcatid=157

It's too early to say but what are the knock on effects of this news, what are the companies who manufacture consumer products using components made by Sanyo going to do?

Good question!! There is a residual fallout in the supply chain, distributors, suppliers, shippers..etc. Somboon from the institute also mentions Maxon. How many others does he know about that he is not saying? Why is Somboon, from the Electronics Institute, the only one the reporter is talking to? What about the Thai director who supposedly took out the 51%? Where is he/she? The reporter should be tracking him/her down for comments on the situation? What about seeking out any of the other Thai 51% partners in other companies? When will we hear about any of them? Secrecy, opaque operations.

Foreign companies set up under the Board of investment (BOI) are exempt from the rules restricting foreign ownership, depending on location and business type. Bang goes your little secrecy conspiracy.

[Thaddeus]

Some interesting facts about Sanyo on this site.

http://factsanddetai...24&subcatid=157

It's too early to say but what are the knock on effects of this news, what are the companies who manufacture consumer products using components made by Sanyo going to do?

Good question!! There is a residual fallout in the supply chain, distributors, suppliers, shippers..etc. Somboon from the institute also mentions Maxon. How many others does he know about that he is not saying? Why is Somboon, from the Electronics Institute, the only one the reporter is talking to? What about the Thai director who supposedly took out the 51%? Where is he/she? The reporter should be tracking him/her down for comments on the situation? What about seeking out any of the other Thai 51% partners in other companies? When will we hear about any of them? Secrecy, opaque operations.

Foreign companies set up under the Board of investment (BOI) are exempt from the rules restricting foreign ownership, depending on location and business type. Bang goes your little secrecy conspiracy.

I think most of us know about the BOI, well, should do by now anyway, but Noitom does raise one valid point, how many more companies does Somboon know about? is this just a ripple or the tip of the iceberg.

[hellodolly]

Some interesting facts about Sanyo on this site.

http://factsanddetai...24&subcatid=157

It's too early to say but what are the knock on effects of this news, what are the companies who manufacture consumer products using components made by Sanyo going to do?

Good question!! There is a residual fallout in the supply chain, distributors, suppliers, shippers..etc. Somboon from the institute also mentions Maxon. How many others does he know about that he is not saying? Why is Somboon, from the Electronics Institute, the only one the reporter is talking to? What about the Thai director who supposedly took out the 51%? Where is he/she? The reporter should be tracking him/her down for comments on the situation? What about seeking out any of the other Thai 51% partners in other companies? When will we hear about any of them? Secrecy, opaque operations.

Foreign companies set up under the Board of investment (BOI) are exempt from the rules restricting foreign ownership, depending on location and business type. Bang goes your little secrecy conspiracy.

Good point

I have a hard time with believing the stupidity on these boards. Toyota Honda Sanyo and the list goes on are not going to go into business in a country where they have to give 51% of the ownership to a Thai.

[noitom]

Some interesting facts about Sanyo on this site.

http://factsanddetai...24&subcatid=157

It's too early to say but what are the knock on effects of this news, what are the companies who manufacture consumer products using components made by Sanyo going to do?

Good question!! There is a residual fallout in the supply chain, distributors, suppliers, shippers..etc. Somboon from the institute also mentions Maxon. How many others does he know about that he is not saying? Why is Somboon, from the Electronics Institute, the only one the reporter is talking to? What about the Thai director who supposedly took out the 51%? Where is he/she? The reporter should be tracking him/her down for comments on the situation? What about seeking out any of the other Thai 51% partners in other companies? When will we hear about any of them? Secrecy, opaque operations.

Foreign companies set up under the Board of investment (BOI) are exempt from the rules restricting foreign ownership, depending on location and business type. Bang goes your little secrecy conspiracy.

The point was who is in charge? Who are the Thai directors, why are they always a secret? Why isn't the reporter talking to them? Wake up and read the point correctly.

[DLock]

This was inevitable and predictable before the floods.

The floods and the way the Thai Government (mis)handled them was the tipping point that made the pain of staying greater than the pain of leaving.

The Japanese have experienced training an uneducated workforce, dealing with corrupt Governments and putting their faith in lying officials when they came to Thailand. No doubt they made mistakes and would have done things differently. Now they have that chance.

That experience will bode well in moving to Cambodia or elsewhere and they will be much further ahead of the game.

Good time to invest in high end Karaoke Bars in Pnom Penh...as these companies will not be the last to go once the Cambodians get their pitch right.

[Oberkommando]

Good time to invest in high end Karaoke Bars in Pnom Penh...as these companies will not be the last to go once the Cambodians get their pitch right.

+1

Phnom Penh is heaving at the moment. Not a seat in a restaurant on the Riverfront without a tourist's bottom on.

[OzMick]

Somboon added that the Thai electronics industry employed 500,000-600,000 workers. Because of its labour-intensive nature, it faces a shortage of 50,000-60,000 workers.

This supriseses me, I have meet many people claiming in that area that pre the "floods" that electronic factories were not hiring, laying off. Whats the truth?

The truth is what you want to believe.

"The bulk of the company's Thailand operations will be permanently transferred to other existing ON Semiconductor facilities that have available production equipment capacity and excess floor space, and to some external subcontractors as appropriate," it (Sanyo) said.

They have excess production capacity, they have to cut down somewhere. Flood makes the choice easier but should not been seen as the primary reason of the factory shut down.

Crisis are always a good time to get rid of unwanted people and close unproductive site. Firing people is never popular. A crisis, here the flood, makes the perfect scapegoat.

If they have to use external contractors as appropriate, then they do NOT have sufficient capacity to meet demand at a time when the world market is depressed.

Where did it say the site was "unproductive"? Almost US$1 billion doesn't sound "unproductive" IMHO.

There are many factors in the decision to rebuild or not. The B300/day minimum wage was specifically stated as being a major factor.

[OzMick]

If there's a shortage of labour then there should be no need to raise the minimum wage, market forces would take care of that, and if you can't make (or sell) semi-conductors (needing at least some decree of skill) using labour that costs as little as 300 baht a day then you should perhaps quit.

consider relativity flow-ons. If the floor sweeper and the garbage man get B300/day, then the skilled and semi-skilled workers will want a pay rise to compensate them for their skills.

[metisdead]

A post has been removed due to possible violation of copyright and non compliance of fair use. It is generally accepted, but not written into law, that quoting the first two or three sentences of an article and giving a link to the source is considered “fair use” and not a violation of copyright.

[ThaiKiwi]

Yesterday I drove down through Lopburi, Ayutthaya and back to Pathom Thani via the BangPahun-Pathom Thani route and all along the way there is still a huge amount of water laying waste to those normally productive rice paddy fields along both sides of the road. It really is scary to see the extent of water still there.

Even in the area north of Nakhon Sawan there is a lot of land still flooded. Coming down into the ChaiNat area, there is more recovery visible but still plenty of areas where the farmers cannot start planting yet.

It would certainly give the factory owners who are anywhere near the Chaopaya basin something to worry about.

I doubt there will be full recover before the next rainy season begins in another 6 months.

[Master Chief]

This was inevitable and predictable before the floods.

The floods and the way the Thai Government (mis)handled them was the tipping point that made the pain of staying greater than the pain of leaving.

The Japanese have experienced training an uneducated workforce, dealing with corrupt Governments and putting their faith in lying officials when they came to Thailand. No doubt they made mistakes and would have done things differently. Now they have that chance.

That experience will bode well in moving to Cambodia or elsewhere and they will be much further ahead of the game.

Good time to invest in high end Karaoke Bars in Pnom Penh...as these companies will not be the last to go once the Cambodians get their pitch right.

Thailand is looking for some deap crisis in near future as the reality from the flooding surfaces, foreign companies in Thailand may no get insurance renewals on their factories or supply disruption.

"Insurers and reinsurers may limit the coverage they offer for supply-chain disruptions and negotiate higher prices after record claims from natural disasters in Japan and Thailand."

http://www.businessweek.com/news/2011-12-09/floods-tsunami-may-dent-black-box-supply-chain-insurance.html

[rikkie]

All the neighbouring country have to deal with nature sooner or later, so Sanyo is just escaping, did you think they don't have insurance? you are wrong they are a client with Loyd's the biggest in there field.

sure business is not going good for them so now take the money and run.

ooh it is easy to have a limited company and still have 100% control, but if i explain you i want some money to 5555

[drdoom6996]

If there's a shortage of labour then there should be no need to raise the minimum wage, market forces would take care of that, and if you can't make (or sell) semi-conductors (needing at least some decree of skill) using labour that costs as little as 300 baht a day then you should perhaps quit.

Raising the minimum wage was a promise made prior to the election of the PTP. And so prior to the flood. And so prior to the poor water management by the PTP. Poor water management is believed to have worsened the timing and amount of water from the flood. Which was caused by the PTP working on other issues and not paying attention to how much water there really was.

[Arkady]

I thought to operate a business in Thailand you had to hand over 51% of the controlling interest to Thai's. How can they simply shut up shop when they don't have control of the company. I was going to set a small business in Thailand but I wasn't going to use all my money and then give 51% away just didn't seem like good business sense to me.

Not really sure how the large companies work out the corporate structure, but I do know that Honda, Sanyo, and others are NOT turning over 51 % of their business to a group of corrupt Thai "businessmen"........I think that only applies to small business owners that get screwed over by their Thai partners.

Regarding leaving, I think the companies were willing to put up with corruption and political instability. Apparently flooding and higher wages are the straw that broke the camel's back. I suspect many other companies are going to leave as well. The 300 baht minimum hike must have sounded great to the red buffaloes, but when everyone is jobless after being laid off it won't look so good then. The best thing the government could do now is to rescind that hike, and cite changing economic conditions. They are already in office, and have not done nearly all the other things they promised, so should not be a problem......

Regarding Thaniya, Nana Plaza and girls for Japanese businessmen, I suspect that when a bunch of Japanese companies move to Cambodia, that in short order there will be a bar area in PP catering to their business, full of cute Vietnamese girls to service them....... :jap:

I think you have pretty much nailed it there. They are definitely not interested in having their businesses majority owned and controlled by a bunch useless Thai Chinese parasites. A lot have BOI privileges that allow 100% ownership which is also allowed for the 100% export businesses even without BOI. Others have got permission under the FBA for majority foreign ownership which is easier to get for manufacturers than service businesses. After the 1997 financial crisis permission was given virtually wholesale, since the Japanese were able to argue they needed to increase capital to expand and the Thai Chinese partners had largely over extended themselves with US dollar loans and property businesses. So they got diluted away or bought out. The Germans used the same mechanism to get rid of unwanted partners in BMW and Mercedes too leading to acrimonious law suits as the Thai Chinese screamed blue murder about foreigners taking Thailand away from the Thais.

Anyway back to your main point, the foreign ownership is no longer an issue. The problem is underlying lack of competitiveness that has been steadily eroded in Thailand over the last 20 years. No administration wants to invest in education as they know the masses won't swallow their lies any more, if they get a decent education. Thus Thais are left with crap teachers teaching crap syllabuses in crap schools and foreign investors who want to move beyond low value added assembly line work can't find the skilled labour to do it. Meanwhile, the floods and the new minimum wage that will cause inflation all the way up the salary scale is the last straw for some assembly line manufacturers. In addition to Cambodia, Burma will be very happy to mimic Thailand's golf and girls business model to attract manufacturing.

[Canada]

Quick question....the minimum wage hike...how much of a hike was that as a percentage?

It does not seem like much if you just say the workers will get an extra $1.50 per day. But if the hike as a percentage is substantial it could have a serious impact on a business. A 25% hike in Labour Cost would be substantial.

[Tanaka]

Proper clean up - while departing a toxic site. Are you kidding?

Reminds me of my little village here in northern Thailand. The pu yai ban requested a Bt.2,000 deposit for the truckers who were taking clay out of a hill for filling rice fields elsewhere. The money was supposed to ensure they'd fix the road after they had left. When the trucks had taken their fill (pun intended) and had thoroughly trashed the tarmac on the access road, they left without fixing the road (surprise!). The deposit was so ridiculously low, that it was easy to walk away from it, and leave the road destroyed.

And I thought you meant 2000B per truck. Would have been proper.

[BigJohnnyBKK]

>> it is easy to have a limited company and still have 100% control

Yes but to the extent all such methods rely on corruption, the company's position will always be shaky if/when they crack down in the future. And don't believe you won't be open to prosecution, much more so than those who took your money. And the dodgy lawyer who set it up won't be able to protect you that's for sure, they'll be covering their own butt.

>>If you're American, you can own 100% of the company here in Thailand.

I've never heard of small investors being able to set up under Amity, only large companies.

Bottom line in other words - big fish don't swim in the same little pond as we minnows. . .

>>I hope they haven't left a polluted mess. Semiconductor production may have very toxic hazardous waste that might be cheaper for them to abandon but Thai government should require cleanup.

Such complications are simply opportunities for the relevant officials to collect some extra graft - no one expects anything to actually get cleaned up, except for the occasional mess so egregious that it motivates a grassroots campaign.

>>It is a common myth on T V that Thailand is the only country with corruption. Fact is they can stay in Asia in another country and get far more corruption.

Asian companies don't mind operating in corrupt environments (as long as they are *predictably* corrupt), their governments back home don't enforce their laws the way Western countries do, often a significant competitive disadvantage for US firms.

I always wondered why farangs invest thier retirement funds in small businesses (bars etc) in Thailand when they will never actually own them and only be the minor stakeholder. Excellent business risk for the thai's, they contribute 0% make a great profit if the business suceeds and loose nothing if it collapses.<br />

Easy answer - because they aren't very smart. Sometimes they start out smart, but a few years here under the influence of their sweet tilac and their brains start losing out to little johnny down below, and he's a total moron 8-)

I know the secret to making a small fortune in Thailand - start with a large one!

Edited December 10, 2011 by BigJohnnyBKK

[Tanaka]

Quick question....the minimum wage hike...how much of a hike was that as a percentage?

It does not seem like much if you just say the workers will get an extra $1.50 per day. But if the hike as a percentage is substantial it could have a serious impact on a business. A 25% hike in Labour Cost would be substantial.

Quoting a percentage like 25% is useless unless you know what it is calculated on. 25% of f.i. 100B is 25B. Not a large sum. But times 10M workers it is more. And 25% of 240B is 60B making it 300. 60B again is not a large sum. But times 10M it makes 600M B. Per day.

[ballpoint]

Good question!! There is a residual fallout in the supply chain, distributors, suppliers, shippers..etc. Somboon from the institute also mentions Maxon. How many others does he know about that he is not saying? Why is Somboon, from the Electronics Institute, the only one the reporter is talking to? What about the Thai director who supposedly took out the 51%? Where is he/she? The reporter should be tracking him/her down for comments on the situation? What about seeking out any of the other Thai 51% partners in other companies? When will we hear about any of them? Secrecy, opaque operations.

Foreign companies set up under the Board of investment (BOI) are exempt from the rules restricting foreign ownership, depending on location and business type. Bang goes your little secrecy conspiracy.

The point was who is in charge? Who are the Thai directors, why are they always a secret? Why isn't the reporter talking to them? Wake up and read the point correctly.

You don't have a point. There is no requirement for 51% Thai ownership under BOI rules, therefore there is no need for Thai directors.

[thaiedward]

I hope they haven't left a polluted mess. Semiconductor production may have very toxic hazardous waste that might be cheaper for them to abandon but Thai government should require cleanup.

An astute observation on your part,

I've run a bit of piping (concentric, co-axial/containment) in several chip-fabs and the solvents are incredibly toxic

[arthurwait]

I thought to operate a business in Thailand you had to hand over 51% of the controlling interest to Thai's. How can they simply shut up shop when they don't have control of the company. I was going to set a small business in Thailand but I wasn't going to use all my money and then give 51% away just didn't seem like good business sense to me.

Not really sure how the large companies work out the corporate structure, but I do know that Honda, Sanyo, and others are NOT turning over 51 % of their business to a group of corrupt Thai "businessmen"........I think that only applies to small business owners that get screwed over by their Thai partners.

Regarding leaving, I think the companies were willing to put up with corruption and political instability. Apparently flooding and higher wages are the straw that broke the camel's back. I suspect many other companies are going to leave as well. The 300 baht minimum hike must have sounded great to the red buffaloes, but when everyone is jobless after being laid off it won't look so good then. The best thing the government could do now is to rescind that hike, and cite changing economic conditions. They are already in office, and have not done nearly all the other things they promised, so should not be a problem......

Regarding Thaniya, Nana Plaza and girls for Japanese businessmen, I suspect that when a bunch of Japanese companies move to Cambodia, that in short order there will be a bar area in PP catering to their business, full of cute Vietnamese girls to service them....... :jap:

I think you have pretty much nailed it there. They are definitely not interested in having their businesses majority owned and controlled by a bunch useless Thai Chinese parasites. A lot have BOI privileges that allow 100% ownership which is also allowed for the 100% export businesses even without BOI. Others have got permission under the FBA for majority foreign ownership which is easier to get for manufacturers than service businesses. After the 1997 financial crisis permission was given virtually wholesale, since the Japanese were able to argue they needed to increase capital to expand and the Thai Chinese partners had largely over extended themselves with US dollar loans and property businesses. So they got diluted away or bought out. The Germans used the same mechanism to get rid of unwanted partners in BMW and Mercedes too leading to acrimonious law suits as the Thai Chinese screamed blue murder about foreigners taking Thailand away from the Thais.

Anyway back to your main point, the foreign ownership is no longer an issue. The problem is underlying lack of competitiveness that has been steadily eroded in Thailand over the last 20 years. No administration wants to invest in education as they know the masses won't swallow their lies any more, if they get a decent education. Thus Thais are left with crap teachers teaching crap syllabuses in crap schools and foreign investors who want to move beyond low value added assembly line work can't find the skilled labour to do it. Meanwhile, the floods and the new minimum wage that will cause inflation all the way up the salary scale is the last straw for some assembly line manufacturers. In addition to Cambodia, Burma will be very happy to mimic Thailand's golf and girls business model to attract manufacturing.

They can't find the skilled labour here, but will find it in brain drained Cambodia and Burma ?

The useless Thai-Chinese who went from mainly being the countries poor immigrants to the countries rich ?

[Shurup]

I hope they haven't left a polluted mess. Semiconductor production may have very toxic hazardous waste that might be cheaper for them to abandon but Thai government should require cleanup.

Sure they can substract the cleaning charges from the flood damage bill...

If my business got ruined due to someone elses negleance (poor water management) and if the insurance wouldn't cover the damages, I would just walk away and leve the cleanup for the wanke_rs who ruined my business.

Don't know if Sanyo does or doen't have a good insurance, if they get compensated for the damages, they should clean up when they leave.

[Willeyeam]

It is the excuse they needed to simply get out while they can.

I worked with a multinational electronics company (US) in Ayutthaya almost ten years ago - they were paying operators well above minimum wages, the employees had insurance and health care, they had great facilities, training and advancment - this has nothing to do with 300 Baht a day - this is the writing on the wall.

[drdoom6996]

Some interesting facts about Sanyo on this site.

http://factsanddetai...24&subcatid=157

It's too early to say but what are the knock on effects of this news, what are the companies who manufacture consumer products using components made by Sanyo going to do?

Good question!! There is a residual fallout in the supply chain, distributors, suppliers, shippers..etc. Somboon from the institute also mentions Maxon. How many others does he know about that he is not saying? Why is Somboon, from the Electronics Institute, the only one the reporter is talking to? What about the Thai director who supposedly took out the 51%? Where is he/she? The reporter should be tracking him/her down for comments on the situation? What about seeking out any of the other Thai 51% partners in other companies? When will we hear about any of them? Secrecy, opaque operations.

Foreign companies set up under the Board of investment (BOI) are exempt from the rules restricting foreign ownership, depending on location and business type. Bang goes your little secrecy conspiracy.

The point was who is in charge? Who are the Thai directors, why are they always a secret? Why isn't the reporter talking to them? Wake up and read the point correctly.

The point of keeping secrets is, to have something no one else has. This allows him or her to to keep Their jobs. It is an endless chain of people in every aspect of society.

[Canada]

Quick question....the minimum wage hike...how much of a hike was that as a percentage?

It does not seem like much if you just say the workers will get an extra $1.50 per day. But if the hike as a percentage is substantial it could have a serious impact on a business. A 25% hike in Labour Cost would be substantial.

Quoting a percentage like 25% is useless unless you know what it is calculated on. 25% of f.i. 100B is 25B. Not a large sum. But times 10M workers it is more. And 25% of 240B is 60B making it 300. 60B again is not a large sum. But times 10M it makes 600M B. Per day.

and your answer to the question is......