The Brief, Issue 5/2012

The Brief Issue 5/2012 1

Magazine of the British Chamber of Commerce ThailandIssue 5/2012 www.bccthai.com

Tourism dawn

Harrow IntPage 1Note:


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Issue 5/2012

CONTENTS

Front cover: Is a new dawn emerging for

Thailand’s tourism?

BCCT Board of Directors 2012

ChairmanSimon Landy

Colliers International Thailand T: 02 656 [email protected]

Vice Chairman & TreasurerJohn Sim

KPMG Phoomchai Holdings T: 02 677 [email protected]

Vice ChairmenMatthew Lobner

HSBC T: 02 614 [email protected]

Simon Matthews

Manpower Thailand T: 02 634 [email protected]

Dean ThompsonBoots Retail (Thailand) Ltd T: 02 694 5900

[email protected]

DirectorsJane Bailey

Equitech (Thailand) Ltd T: 02 259 [email protected]

Gary BiestySouth Asia Law Co., Ltd T: 02 636 0585

[email protected]

Viriya (Boyd) ChongphaisalGlaxoSmithKline T: 02 659 3000

[email protected]

David CummingAmari Orchid Pattaya T: 038 418 418

[email protected]

Richard GreavesGrand Hyatt Erawan Bangkok T: 02 254 6239

[email protected]

Andrew McBeanGrant Thornton T: 02 205 8222

Email: [email protected]

Sriram NarayanBritish Airways PLC T: 02 627 1723

[email protected]

Chris ThatcherAnglo-Thai Legal Co., Ltd. T: 085 064 8884

[email protected]

This Edition

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12 Tourism chief calls for action on AEC 2015

18British business wins praise from BOT Governor

20PPP law paves way for progress with new infrastructure

22Thailand striving for growth from within

28European Commission adopts proposal for GSP

31Royal visit to Rolls-Royce

36OSMEP targets new linkswith British business

41Thailand’s post-flood reboundwins IMF praise

31

TrafalgarOpp Contents II

Requested – use same as last issue

It CAN strike twice

Are you ready?


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Issue 5/2012

CONTENTS

The views expressed by individual authors are not necessarily those of the British Chamber of Commerce Thailand or of the publisher. Reproduction in whole or in part without written permission from the British Chamber of Commerce Thailand is strictly prohibited.

The Brief is published by: British Chamber of Commerce Thailand For advertising and editorial enquiries, please contact Greg Watkins, Executive Director - BCCT

Production: Scand-Media Corp., Ltd Bangkok

Editor: Dale Lawrence

British Chamber of Commerce Thailand7th Floor, 208 Wireless Road Bangkok 10330, ThailandTel: 02-651 5350/3 Fax: 02-651 5354Website: www.bccthai.com Email: [email protected] Watkins, Executive Director

Every Edition

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55 61

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7Chairman’s Message

9Executive Director’s Message

14UK retailers target Thailand for growth

32BiSEA report from Singapore conference

42Second export award for Bangkok Patana School

44Advice for Thailand SMEs

50By the Numbers

55Chamber events

Traill International Schoolregular

Submitted to scand

The Brief [British chamber Magazine] Size 210mm x 297mm


Sterling Partners

SIMON LANDy

Other Major Partner

Chairman’s Message

Annual Airline Partners

Chamber lunches and dinners offer members not only food for their stomachs but also food for thought. Members fortunate enough to attend the lunchtime talk by Lord Charles Powell recently were treated to a

frank and fascinating ramble through the world’s economies by a true insider.

As a former private secretary and advisor to Prime Minister Margaret Thatcher and Prime Minister John Major who is currently running the UK Government’s Asia Task Force as well as sitting on the boards of Rolls-Royce, Caterpillar, LVMH and Jardines, Lord Powell’s deep knowledge of both global political and economic developments as well as key personalities from China to Europe captivated the lunchtime audience. While acknowledging the great challenges faced by the global economy he was, nevertheless, far from apocalyptic – particularly when it came to the potential for growth in our immediate region.

It is no wonder then that Britain, like the US, has reached the conclusion that more resources need to be put into Asia. While the US talks of a ‘pivot’ to Asia the UK talks of a ‘network shift’ in the same direction and away from its traditional Eurocentric focus. As a result the British Government has increased its resource allocation to this region and this is reflected in the ‘beefing up’ of Bangkok’s UKTI office.

For BCCT and our members this can only be good news. Apart from a noticeable increase in the frequency of high profile political visitors from and to the UK this year (and more to come – with November expected to see Foreign Secretary William Hague in Thailand and Prime Minister Yingluck Shinawatra visit the UK), business links continue to strengthen. The trend for large Thai corporates to purchase assets in the UK is now being followed by smaller scale investments by Thais, particularly in London property. We are also seeing more SMEs from the UK paying attention to the opportunities in Thailand and using the Chamber’s services to help find their feet here.

The Chamber helps its members to tap into opportunities that these trends generate by providing information on developments and hosting topical events with interesting speakers. Not all members can attend these so we try, wherever possible, to provide information from our talks on our website or in The Brief.

In the last two months we have hosted an update on Myanmar, which is still the big story for the region, and put in place a concrete strategy for setting up a Chamber presence there. Our Property & Infrastructure, Legal & Tax, SME, CSR and Education Groups have all organised informative events. I attended with Greg Watkins the most recent Britain in Southeast Asia (BISEA) conference in Singapore where all regional chambers exchange best practice and develop collaboration. The grouping has become particularly important in lobbying on issues that impact all British chamber members throughout the region, such as the UK’s mystifying new passport renewal process.

The challenges facing Thailand remain immense, not just globally but also locally. The country’s inability to develop an effective education system, to move beyond political divisions, to root out corruption and even to pass significant anti-money laundering laws reflect a dysfunctional politics that continues to hold back the country. Nevertheless, the energy and vibrancy of the business sector keeps the country going and gives strength to the arguments of the optimists.

As we read daily headlines on the Euro crisis, a slowdown in China and a stumbling US recovery, Thai newspapers still focus upon new inward and outbound investments and growing consumer spending. While Thailand may not be a haven of growth in a world of havoc, Thailand and the ASEAN region seem to be better positioned than the major emerging and developed economies to weather these uncertain times.

Corporate Partners

Supporting Partners

????Opp. Executive Director

Note:


GREG WATKINS

Executive Director’s Message

This year BCCT merged its charity activity and child protection initiative under a single ‘corporate social responsibility’ group chaired by BCCT Vice Chairman Matthew Lobner, CEO of HSBC. The CSR group is now

discussing key issues such as how the Chamber may structure its CSR strategy in order to best serve the needs of its members; is CSR a function of a chamber of commerce; how to improve the communication of what BCCT already does with little financial resource; how to engage members more pro-actively and secure greater corporate backing for the Chamber’s CSR work.

At this stage it may be helpful to state the underlying principles behind BCCT’s current CSR role and what is currently being undertaken. Under the heading ‘Helping the Needy’, charity work focuses upon ‘children’ and ‘education’ with priority on activity that benefits as many children as possible. The coverage is across the entire country, not just in Bangkok, and it is funded from proceeds of charity raffles and auctions (e.g. at the annual Christmas luncheons and at football dinners). BCCT funds are not used for charitable activities. A small budget of approximately THB 400,000 is available each year.

Charities supported in recent years include Student’s Education Trust - English language training in schools in Nakhon Sawan province by students supplied by Project Trust in UK; clean drinking water wells recommended by Rotary for schools in Phuket and surrounding areas; Teacher Plus Foundation - training programmes for teachers in rural schools; Care 4 Kids - poverty relief and health improvement on the Eastern Seaboard; The Beaumont Partnership Foundation – a school project in Chaiyaphum province; Children of the Forest Foundation – children’s home and school in Sangklaburi; and Royal British Legion - educational support for children of British ex-servicemen.

BCCT also plays a major support role to the British Community in Thailand Foundation for the Needy (BCTFN). British charity support activities in Thailand started in 1941 and the first Ploenchit Fair was held in 1957. Ploenchit Fair is a traditional British charity fun fair organised annually. The proceeds support sustainable projects by some 20 charities across Thailand. BCCT runs the grand raffle at Ploenchit Fair and this has, in recent years, raised as much as THB 1.1 million in a year. On behalf of BCCT, I serve as Vice President of BCTFN.

Following an introduction by the British Embassy Bangkok in February 2010 the BCCT board resolved to sign a memorandum of understanding with the Child Exploitation & Online Protection Centre (CEOP), part of UK police. BCCT is the first chamber to work with CEOP anywhere. CEOP delivers workshops, presentations and individual corporate advice. BCCT focuses on promoting awareness and educating communities where member companies operate with the objective of ‘making every child matter, everywhere’. Towards the end of 2010, BCCT and CEOP developed an international corporate charter and, in 2011, a dual language animated film resource ‘The Tales of Mai & Tam’ was launched. It was funded largely by corporate sponsorship and support from the British Council. Another animated film is planned in 2013.

BCCT is also active in the Thailand Business Coalition on AIDS (and TB). TBCA promotes private sector awareness of the spread of AIDS and organises training and awareness activities to prevent AIDS in the workplace. It also coordinates with related government departments and NGOs in support of activities to control and prevent the spread of AIDS. Major funding comes from the Global Fund through the Ministry of Public Health for two key project areas – HIV/AIDS and tuberculosis (TB). On behalf of BCCT I currently serve as interim Chairman of the TBCA board.

The BCCT CSR group is now finalising the content of a survey to be uploaded to the online SurveyMonkey website. Feedback from members on any of the key questions posed at the beginning of my message will be gratefully received.

10 The Brief Issue 5/2012

Cover Story

Thailand’s hoteliers are in a positive frame of mind as the nation’s tourism and hospital-

ity sectors prepare for the 2012/13 high season.

With the Tourism Authority of Thai-land also confident about internation-al visitor arrival numbers for 2012, the sectors are on track to continue the all-important recovery after a series of major setbacks to the country’s repu-tation as a safe and secure destination for leisure and business travellers.

Richard Greaves, General Manager at Bangkok’s Grand Hyatt hotel, says, “Thailand, the Land of Smiles, is very

resilient and the swift economic re-covery is a testament to the fact that we are quick to recover from econom-ic and natural adversity. We are con-fident that the upcoming season will exceed expectations and budgets.”

There are similar sentiments at the Am-ari Orchid Pattaya hotel, as GM David Cumming explains. “The high season ahead looks very promising with the Russian, Turkish, Korean other Asian markets looking to grow yet again. This year the European leisure market is down and that’s a reflection of their cur-rent financial woes. Over the next few years we expect to see further consider-able growth from China PRC.”

Manfred Ilg is the General Manager at 137 Pillars House in Chiang Mai. The hotel, which opened in March 2012, is based around a magnificent, historic teak property built in in the 19th century that was restored after painstaking work, support and advice from architectural historians and con-servationists.

With just 30 suites this luxury bou-tique is targeting upmarket clientele and Manfred Ilg is confident that the months ahead will bring positive re-sults. “It seems that the upcoming high season for us here in Chiang Mai could be good, maybe even better than expected,” he says. Manfred shares the

High season hopesBy Dale Lawrence


Cover Story

views of many hoteliers about the im-portance of attracting a greater number of higher spending tourists to Thailand. Prime Minister Yingluck Shinawatra has stated publicly her target of 30 mil-lion international arrivals by 2015.

“The government projected numbers are of no interest to us. We are small, luxury boutique hotel with 30 suites and we expect to be able to fill up the rooms through our own sales resourc-es and with the help of our strategic marketing partners,” adds Manfred.

Richard Greaves is equally forthright on this issue. “The message needs to change from being a ‘cheap destina-tion’ to a destination offering great value. We need to strike a proper bal-ance between quality and quantity.”

At the Sukhothai hotel in Bangkok, General Manager Gregory Meadows has firm views about the government’s approach to the sector. When asked about tourism strategies, Mr Meadows enquired, “What strategies? It is all very well setting a number of 30 mil-lion, but 30 million who? Luxury trav-ellers, back packers, adventure tour-ists? No one knows. The sector needs a good balance of all types of travellers.”

Mr Meadows sees huge potential in the fast-expanding outbound source mar-ket of India. “We are looking more ag-gressively at India which we believe has more immediate potential than China.”

Richard Greaves has also seen encour-aging growth this year from India and China. “Our diverse events facilities and our central location in Bangkok make us the preferred destination for Indian weddings, both local and in-ternational. We are also benefitting from an increasing number of Chi-nese tourists, thanks to Hyatt’s strong brand presence in China.”

For Amari, the Indian wedding mar-ket boom looks set to continue. “These markets are growing and developing. Pattaya has become a new destination for Indian weddings. China is grow-ing fast and you can see the dispos-able income of this market. Many do

still travel in group package tours but this will change as they become used to booking through the Internet.”

Thailand’s problems in recent years have prompted many event planners to look elsewhere for venues to host corporate events, conferences, trade shows and international exhibitions. This MICE business is a major source of revenue to many hotels in Bangkok and in provincial cities such as Chiang Mai, Hua Hin and Pattaya.

It’s a market segment that needs a kick-start, according to Gregory Meadows. “Overall the state of the MICE market in Thailand, compared to our neighbours in Hong Kong and Singapore, is pitiful. There needs to be a huge push in this area with near and long term strategies to compete but I am not holding my breath.”

David Cumming observes, “MICE business has started to return to Bang-kok this year and we see that in our company hotels. Outside of Bangkok it has been slower but it looks positive for 2013. Reflecting on the flooding last year this was bad for everyone. All inbound business slowed and many premium events were cancelled.”

There’s better MICE news from Richard Greaves at the Grand Hyatt Erawan Bangkok. “This is a very im-portant market for us and our facili-ties are geared towards this. We have exceeded our targets this year and we are confident that 2013 will see more growth.”

Will the ASEAN Economic Community add value to tourism in Thailand?

‘Let’s talk more about this when it is actually happening’– Manfred Ilg

‘I believe it will - and we should get together with other countries to market the community benefits in terms of doing more business as well as attracting more tourists’ – Gregory Meadows

‘It is, hopefully, a first step for ASEAN all working together but a lot has yet to be learned about AEC 2015’ – David Cumming

I am sure it will. However, most details remain unclear and the timeline is questionable’ – Richard Greaves

Final thoughtsIf the Thailand tourism genie granted you just one wish, what would you ask for?

‘Innovative minds getting together to decide on how to market Thailand aggressively in the world market place with a five or ten year plan and then stick to it’ – Gregory Meadows

‘A stable political and socio-economic future’ – Manfred Ilg

‘Higher room rates that reflect the excellent standards of service and hospitality which all travellers to Thailand enjoy. We are second to none in Asia, yet our rates are well below other popular destinations’ – Richard Greaves

‘2012 has been a good year, with political stability and so far no natural disasters. Long may it continue is my wish’ – David Cumming


Elements within Thailand’s tourism sector are now recog-nising the importance of pre-

paring for the onset of the ASEAN Economic Community in 2015. And not before time. But accepting the inevitable advent of AEC 2015 is only the first step as Association of Thai Travel Agents president Sisdivachr Cheewarattanaporn acknowledged during a recent tourism seminar in Krabi.

He expressed concerns, shared by many, that Thailand’s tourism sector lacks a defining strategy to deal with and take advantage of this new trade and enterprise community and he called upon the Thai government to lead by example in having ‘clear mea-sures and actions’.

There is certainly confusion and lack of clarity on such key issues as em-ployment and whether local labour laws will take precedence over new AEC agreements in place after 1st January 2015.

With Thailand at the top of the ASEAN league table for international visitor arrivals, second only to Malaysia when overland border crossings are included, local analysts are speculating that foreign companies may use AEC regulations to set up local travel-related enterprises that do not require joint-venture status and that are not limited to 49 percent foreign ownership.

There was further speculation at the Krabi seminar that Singapore could offer a back-door entry to ownership of tourism businesses in Thailand. With Singapore allowing one hundred percent foreign ownership of compa-

nies registered in the island state this could provide a route for acquiring outright companies operating in oth-er ASEAN markets. ATTA president Sisdivachr Cheewarattanaporn was therefore understandably wary about the perceived benefits of AEC 2015 to travel and tourism in Thailand.

With English the official ASEAN lan-guage the need to improve English language skills was also on the agenda in Krabi – but no clear vision emerged as to how the country can best address this issue. Beyond the boundaries of metropolitan Bangkok the standards of English used by tourism employees range from impressive to abysmal.

Visitors touring the country as part of an organised group will benefit from the help of a tour guide with the nec-essary language skills. For indepen-dent travellers, it’s all too often a case of referring to phrase books and using hand signals.

Scott Smith, lecturer and careers counsellor for tourist and hospitality students at Thailand’s Assumption University, believes that more lan-guage training courses are required.

“Thailand’s state education system faces many challenges and the improvement of secondary and even tertiary language skills is simply not seen as a high priority in so many schools across the country. Our graduates are told repeatedly that their use of English will help to determine their career path.

“AEC 2015 will undoubtedly open new career doors for many students in Thailand and we are developing even closer links between academia and the private sector to ensure that our stu-dents cross successfully the threshold to new opportunities right across the ASEAN region,” says Scott Smith, who also serves as Director of Young Skal in Thailand.

“Schools and industry need an English Appreciation programme. Many lead-ers with excellent English skills fail to pass on the importance of learning a second language to their team mem-bers. I suspect national pride may play a part in this failure,” says Scott Smith, author of several such training pro-grammes for public and private sector employees in Thailand.

“We need much more effort at grass roots level. Everyone needs to make a commitment of time and budget and prepare a dedicated programme with measured results, starting at primary and secondary schools and extending into companies where ‘language labo-ratories’ can provide an effective envi-ronment for real learning. We need a

Tourism chief calls foraction on AEC 2015By Dale Lawrence

Scott Smith


programme that people want to join because it’s fun, their friends are tak-ing part and because their parents and employers are encouraging it.”

ASEAN affairs commentator Kavee Jongkitthaworn told delegates that Thailand needs much more than just better English skills. ”We must develop the three pillars essential to AEC success: ASEAN Socio-Cultural Community (ASCC), ASEAN Security Community (ASC), and ASEAN Eco-nomic Community (AEC) with tour-ism included in the latter.”

He stressed that, to be successful within the AEC, Thailand must raise its competitiveness and status in ASE-AN. He said that neighbouring coun-tries knew far more about the AEC because of regular media reporting. “Our country’s local media pays more attention to entertainment news,” he added pointedly.

Online travel industry news service TTR also quoted Kavee Jongkittha-worn as stating that ‘Thailand will need to revise the Act of Tourism and Guide Registration 2008 and the Alien Business Act 1999. There are some very touchy issues in both these

bills that the tourism industry needs to study in detail’.

“Thailand needs to know what are the most essential factors to compete with neighbours and it is not just improv-ing the use of English or other ASE-AN languages,” he added.

Set against the concerns now being expressed in Thailand, the ASEAN Secretary-General Dr Surin Pitsuwan and ASEAN tourism ministers have

endorsed an ‘ASEAN for ASEAN’ campaign and special promotions along with enhanced strategic cooper-ation with the growth markets of Chi-na, Korea, Japan, India and Australia.

Dr Surin said that ASEAN countries were implementing ‘a clear road map to achieve the tourism objectives of the ASEAN Economic Community’. He added that the initiatives in-cluded the creation of a new website and digital promotional campaigns targeting the mass markets of Chi-na and India with additional focus upon niche markets such as experi-ential, creative, adventure, business, senior and long stay visitors as well as special promotions for the cruise market.

“Our strategy is designed to help build global recognition of Southeast Asia as a competitive, world-class tourism destination,” said Dr Surin. “Our fo-cus is on drawing visitors to the region and encouraging them to visit more than one country. As each has its own unique attractions, we will capitalise on the sophisticated marketing capac-ity and resources of our individual na-tional tourism organisations to spread the word,” he told media.

Chaweng beach on Koh Samui

Dr Surin Pitsuwan


Recently I paid a visit to Night-ingale Olympic, perhaps one of the most unusual stores

in Thailand. This relic of a depart-ment store, located in Chinatown, has hardly changed since the 1960s. The display cabinets are covered in a thick layer of dust, the mannequins proudly wear outfits that are un-likely to have been worn outside of a 1970s retro theme party since ... well, the 1970s, and the store itself does not seem to have been restocked for many decades.

Rusty mouth organs, tennis racquets with broken strings, old Monopoly sets and creaking exercise bikes are the order of the day here. Neverthe-less, the store has its charm and a steady stream of tourists and inquisi-tive shoppers make the trip to this part of town specially to visit Nightin-gale Olympic, and its name features in many travel guides to Thailand.

Retail has been much on my mind lately. I recently opened New Look’s first store in Thailand - in Mega Bangna Mall. New Look has sur-vived the tough trading conditions on the UK ‘high street’ by focussing upon its bottom line - good quality, fashionable and affordable clothing. Another key to its survival is that it has been steadily ‘going interna-tional’ in recent years, opening stores across Europe, Middle East and now, south east Asia. For many UK retail brands the ASEAN markets have de-livered most of the growth since the beginning of the economic down-turn. In Thailand, UK retail brands are well-known and much loved by consumers.

While I was cutting the ribbon at New Look our Ambassador, Mark Kent

was attending the opening of Stella McCartney’s store downtown. Wheth-er high-end or high street fashion, healthcare and beauty products or groceries, UK brands have had enor-mous success in Thailand, drawing on the affection that Thai consumers have for British products.

Companies such as Boots and Tesco Lotus have ambitious plans to expand their footprint in Thailand over the next few years, not only creating new jobs and bringing more choice and quality to the consumer but also using their expertise to improve supply chain logistics where systemic weaknesses across the country were very much in evidence during the floods of last year.

UK SME retailers now have their own Business Ambassador to champion them as they attempt to gain a foot-hold in international markets. Paul

Walsh, who was appointed to this role last month, has considerable exper-tise in this area, having turned Diageo into a major global brand as the com-pany’s CEO.

Retail is now one of the UK’s ma-jor exports. In recognition of this, UK Trade & Investment presented a new retail strategy ‘Delivering for the Global Consumer’ at the World Retail Congress in London in Sep-tember. The strategy supports the sector by identifying the markets presenting the biggest opportunities for international development and expansion and by delivering a market access programme for the UK retail industry.

The retail industry has changed enor-mously over the last decade. While we are not quite witnessing the demise of the high street and ‘bricks and mor-

UK retailers target Thailand for growthBy Bradley Jones


tar’ shopping, UK retail is at the van-guard of multichannel shopping with Europe’s largest e-commerce market (equivalent to Germany and France combined) with a value of approxi-mately £70 billion.

In the UK, shopping through mo-bile devices is continuing to grow at remarkable speed. The UK retail sector is an early adopter of new technology and innovation includ-ing self service tills, click & collect, mobile and tablet shopping and contactless payments. The UK’s on-line retail market is currently grow-ing by 13 percent in 2012 (or in cash terms an extra £77 billion per year). Thailand is at the beginning of its own growth curve in multichannel shopping, and the expertise that leading UK industry players have gained over the last ten years in this area will place them in a strong po-sition to capture commercial oppor-tunities in this market.

Making itself a hub of retail e-com-merce in ASEAN can only be a good

Bradley Jones is Director – UK Trade & Investment in Thailand, based at the British Embassy, 14 Wireless Road, Bangkok 10330Tel: 02 305 8256Fax: 02 255 8619 Email: [email protected]

thing for Thailand, particularly as internet penetration and accessibility improves. Thirty per cent of all cross border trade in Europe goes through UK retailers. So, by being an early adopter of innovative multichannel retail technologies, Thailand can like-wise grab a sizeable share of the intra-ASEAN ecommerce.

It is a common misconception that Napoleon coined the description of the UK as a ‘nation of shopkeepers’. In fact it was Adam Smith who first came up with the phrase. However, they both intended the comment to be disparag-ing. As things have turned out, the UK retail sector has bolstered the British economy and been a key weapon in our armoury of cultural diplomacy.

It has consistently been at the cutting edge of innovation, creativity, quality and consumer choice, and our brands are recognised around the world as being the very best in their field. We are likely to see more top-end UK retail brands making their mark in Thailand over the course of the next few months, such is their confidence in this market and the opportunities that Thailand presents as the shop-ping hub of ASEAN.

UKTI’s Hazel Hector briefed BCCT members on business opportunities and operational challenges in Myanmar, highlighting the need for legal expertise to cut through the bureaucratic maze and stressing the importance of banking reforms. She said that potential is high in the field of energy, education and agri-business but some business sectors remain closed to foreign investors.

Hazel homes in on Myanmar


As leaders we are expected to look into the future for our or-ganisations. It’s our responsi-

bility to create and execute our vision, develop strategies, and reassure our stakeholders that we know what we are doing and everything is going to be ok. As leaders the most important thing we have are our good people in helping us to achieve the above.

As leaders it is also our duty to look into the future for our people, espe-cially if we wish to keep them, and this grows more important every day from both business and ethical standpoints. Many of the more proactive leaders I work and talk with are doing just this. The reason is the huge opportunities, and threats, that are coming with the ASEAN Economic Community 2015.

The AEC 2015 promises us a free flow of goods, services and investments, and capital. Capitalising upon this will mean having good people and keeping them - because people with the best capabilities will have more options available to them. The incred-ible change in the economic land-scape, where the market will swell from 60 million to 650 million peo-ple, means that even our best people will need to develop a whole range of new capabilities if we are all to enjoy the advantages available to us.

The AEC will definitely require us to develop a more effective workforce and many of the leaders I speak with are facing this question: “How can my organisation prepare for this upcom-ing challenge?” Unfortunately it’s just not possible to force good people to stay at our company as much as we need them, but I would like to share some ideas I have seen used by some of the more enlightened Thai and for-eign leaders to get and keep the people

Keeping talent is key to ASEAN success

with the right capabilities in place. They are not new or revolutionary, but they are producing benefits in devel-oping and keeping talent.

One practical strategy used to good ef-fect is ensuring that you develop people with the required attributes as well as the desired skills and knowledge. This may mean developing the values you need, or the flexibility working in the new market will require. Developing attributes takes longer and the smart companies are developing for tomor-row not just for today. As a leader this means getting closer to your good peo-ple; attributes usually can’t be devel-oped in a classroom but require a more holistic and reflective approach. This also allows us to identify and touch their individual needs and provide whatever it is that creates job satisfac-tion for them. Personal attributes have a direct impact on job commitment, values, integrity, empathy and loyalty that can foster employee commitment towards achieving business goals.

Developing the desired attributes also gives us moral and ethical lead-ers as integrity and responsibility are impossible to get from a book. Devel-oping attributes in your best people also produces other benefits as lead-ers with integrity create a high level of loyalty and commitment - factors that are absolutely crucial to successfully keeping talent.

Another approach is increasing your trust; letting go of the reins and be-lieving in the ability of your people to succeed. Of course there is a risk here but your best people need to be in the right seats. They don’t necessar-ily need you to tell them what to do, and getting them into the right seats requires letting them try. In doing this a leader’s prime responsibility is to

respect their existing capabilities and share leadership, let them take deci-sions on certain issues, so that they can grow the knowledge, skills and most importantly the attributes they and you will need tomorrow.

Keeping talent requires inspiring team members to achieve their full potential. Create a relaxed and open environment that engages employee commitment will helps draw out loy-alty and integrity.

The AEC has created higher demand for advanced skills, expanded knowl-edge but more importantly for good people. Finding and keeping the right talent is critical. Engaging and moti-vating workers are especially tough tasks today but more than anything they require leaders to demonstrate a positive attitude, a warm personality and to be role-models for their peo-ple. By showing empathy and open-mindedness to innovation, listening to controversial ideas or opening the door to different opinions, leaders can learn something new, and the payoffs can be tremendous to oneself and the entire organisation.

Arinya Talerngsri is Group Managing Director of the APM Group, a leading organisation and people development consultancy. Tel. (662) 656-9310 ext. 113 Email: [email protected]

By Arinya Talerngsri


Great Britain and Thailand have built strong economic rela-tionship and business ties over

the decades. Within Europe, Great Britain is by far the second biggest trading partner of Thailand, account-ing for 13.9 percent of total trade vol-ume between Europe and Thailand. In terms of foreign direct investment, Britain is also the second most im-portant investors among European nations, particularly in banking, real estate, and retail sales sectors. I there-fore hope that Thailand and Britain will continue this strong tie both in terms of trade and investment and to prosper together in the future.

The past few years have brought us many economic surprises and chal-lenges. After severe floods took a toll last year Thailand is currently facing many challenges from the global eco-nomic downturn, particularly from the continued Euro debt crisis and more intensified global competition. Despite this backdrop of strong headwinds from abroad I believe that the Thai economy will be able to sail through.

I am pleased to say that, during the first half of this year, post-flood recov-ery has been robust. Production con-straints continue to ease, while pri-vate sector demand is back on track. The growth momentum in the period ahead is likely to sustain, driven main-ly by domestic demand. We expect that economy will grow at 5.7 percent this year and five percent next year.

This episode of rapid growth recov-ery is that it also witnessed macro-economic stability. Thailand has a long history of low and stable infla-tion, averaging around three percent

British business wins praise from BOT Governor

over the decades. The unemployment rate in recent years has also been low at around one percent. Meanwhile, external position remains solid with moderate short-term external in-debtedness.

The banking sector has been safe and sound with sustained profitability amidst the on-going global financial crisis. Despite capital inflows into Thailand, there appears to be no sign of asset price bubble while the degree of leverage in the corporate and household sector is still low. Such promising outlook is reflected in Thailand’s sovereign credit rating which has been stable at investment grade despite intermittent political tension.

At this juncture, please allow me to highlight a number of Thailand’s fundamental strengths that under-pin this positive outlook. First, our corporate sector remains competi-

tive with accumulated robust savings and profitability. This fact is well evidenced by their healthy balance sheets and their ability to explore in-vestment opportunities overseas. Net profit of most listed companies in the second quarter 2012 turned out be positive despite damages inflicted by the floods. With strong financial positions and more trade liberalisa-tion, an increasing number of firms have gone overseas, as indicated by a marked increase in Thai direct in-vestment from $3 billion in 2007 to $10.6 billion in 2011.

Second, supportive fiscal and mon-etary policy has helped enhance growth while continuously strength-ened stability in the Thai economy. This achievement has been attribut-able to responsive fiscal and mon-etary policy, together with market-friendly regulations aimed at keeping the economy operating close to its potential. The rapid recovery from the great floods last year amid global economic uncertainty has revealed the importance of fiscal stimulus and government efforts in restoring pub-lic confidence.

At the same time, the expansionary monetary policy stance has helped accommodate business restoration process. Third, Thailand has a stra-tegically well placed- location for international investors to benefit from rising Asian integration. The rise of China and the ASEAN Eco-nomic Community (AEC) evidently provide enormous opportunities for businesses operating in Thailand to expand and prosper from enlarging market size and integrated regional supply chain.

Automotive and electronics indus-tries are prominent examples that have long gained competitiveness after establishing complex supply

Dr. Prasarn Trairatvorakul, Governor of the Bank of Thailand

This is an edited version of the recent speech by BOT Governor Dr. Prasarn Trairatvorakul to BCCT members.


chain hub in Thailand and obtain-ing a critical foothold in the region. Finally, the Thai financial system has been resilient to the global fi-nancial crisis. The key reason for the banking sector’s resiliency is that our financial system remains relatively non-complex.

The financial transactions are de-rived from real economic activities and hence risks are understand-able and manageable, with lending to domestic companies accounting for 70 percent of loan portfolio. The rest is mainly mortgage loan. The direct exposure of Thai banks to Eu-ropean countries is also very small. Investments and loans made by Thai banks to Europe are only 0.3 per-cent of total assets, while claims on Thai banks by European countries are even smaller at 0.03 percent of total liabilities. Nevertheless, we will be watchful of the second round im-pact of the EU crisis, particularly via impact on exports that could impact asset quality.

Apart from the existing solid funda-mentals outlined above, Thailand is currently striving to develop a more efficient financial system to anticipate increased regional integration. The key driver and rationale behind this momentum is clear. ASEAN econo-mies aim to increase competitiveness from increased economy of scale and scope, and technology transfer, with link up of supply chain of ASEAN and ASEAN plus 3, in particular.

This, in turn, will help strengthen our competitive position in the global market. Thus, the vision of financial sector is that it should seamlessly fa-cilitate this process, whilst safeguard-ing financial stability. It should be em-phasised that economic integration in ASEAN is not aimed to reach the same level of integration as EU, as the single currency and monetary union is not on the agenda. The banking sec-tor liberalisation agenda includes dis-cussion on harmonised standards of regulations, which are key criteria for licensing, as well as financial stability arrangement. This will be finalised this year, with a timeline of liberalisa-tion in 2014 to 2020, depending on the country’s readiness.

Capital market integration will also be important to ensure that regional mar-ket becomes deeper and wider to serve growing needs of growing and large investment projects to link up the re-gion’s production and infrastructure. Moreover, it will also help to interme-diate capital inflows into the region in a more efficient and stable manner.

Regional capital market will also be important for managing the growing pension funds of the region, where some countries are facing growing savings but aging population. It will offer a regional alternative to the currently fragile market in the west. How well prepared is Thailand for this? The banking system already has high degree of foreign participation.

Market share of foreign banks and hybrid banks is 20 percent. The for-eign banks also accounts for about 50 percent of transactions in OTC derivatives market here. These main players in foreign and hybrid banks include banks from the UK, EU, US, Japan, and China, as well as banks from Singapore and Malaysia.

Thus, the banking system and Thai banks are familiar with international competition. Thai banks already have presence in all ASEAN countries ex-cept Brunei. And, for this, the AEC will help reduce barriers and enhance business operations of Thai banks abroad. The Financial Sector Mas-ter Plan phase II, for 2010-2014, has outlined to the banks the timeline of increased competition and thus banks have prepared themselves. In line with this we have already announced that existing foreign bank branches can open up to 20 branches in Thailand if they choose to become local subsid-iaries with capital base in the country. We are also assessing the possibility of allowing a new restricted banking li-cence 2012-2013 and, possibly, a new commercial bank licence in 2014 if such banks facilitate our regional eco-nomic and investment policy.

Finally, let me turn to the progress in capital market to complete a picture of the financial sector. Collective ac-tion of both public authorities and private sector since the ASEAN crisis has rebalanced our financial market

from a predominantly bank-based to a more balanced one with a growing role of capital market.

Sizes of the bond and stock markets have noticeably increased. Num-ber of market participants has also been rising with a more variety of financial products. Moreover, since March 2012, the Thai capital market has been upgraded to the Advanced Emerging Market status in the FTSE Global Equity Index Series from Sec-ondary Emerging Market status. A more exciting development is expect-ed to continue under the 5-year Capi-tal Market Development Master Plan which was established in 2009. Apart from the internal push, ASEAN ex-change linkage under the vision of AEC is taking place this year to allow global investors to trade ASEAN blue chip stocks at lower costs through a single platform. This initiative will ul-timately raise the visibility of ASEAN capital market and continue to attract more capital flow.

To sum up, as economic integration and upgrade of efficiency and com-petitiveness is key to our develop-ment, Thailand’s financial system is geared to facilitate this process. To do so, financial liberalisation will play a key role, with contribution by ASE-AN banks as well as foreign banks operating in this region.

I would like to reiterate that, with solid economic strengths and a wide-ranging development in Thailand’s financial system, the Thai economy will continue to be resilient in the face of the dismal global outlook. The BOT is fully committed to sound monetary policy conduct and financial-sector development via the Financial Sector Master Plan as well as play a supporting role in Capital Market Development Master Plan.

Let me end by thanking the British business community for its substan-tial contribution to our economy. Your contribution will not only strengthen our long history of economic partner-ship but also bring economic prosper-ity to both Britain and Thailand. I very much hope that the mutually benefi-cial ties between British and Thailand will blossom into the future.


Development of public infra-structure has been increasing in line with Thailand’s eco-

nomic growth, and the private sector has played an important role in this regard. However, the existing law gov-erning Public-Private Partnerships (PPP) is somewhat unclear and unsuit-able for the current economic climate.

PPP refers to a government or state en-terprise’s project in which the private sector participates or jointly invests. Generally, PPP involves infrastructure development in sectors such as power and electricity, telecommunications, water, sanitation, and transport. PPP in Thailand is governed by the Private Participation in State Undertaking Act B.E. 2535, which has been effec-tive since April 1992.

The purpose of this legislation is to prevent corruption because, in the past, granting approvals or conces-sions for private sector entities to par-ticipate in government projects was subject to the consideration of only one government agency. In relation to private participation, the government may grant the concession, approval, or rights to a private sector entity via different forms, depending on the ap-propriateness of each project. Exam-ples of high-profile PPP projects in Thailand include the Electricity Gen-erating Authority of Thailand, BTS Skytrain and the Don Muang tollway.

The Private Participation in State Undertaking Act applies to private participation in state projects which involve funds or assets valued at THB

one billion or more. However, state undertakings with funds or assets worth less than THB one billion may have to comply with this law if the Council of Ministers (i.e. the Cabi-net) deems it appropriate.

The procedures for PPP projects un-der this statute are divided into three

steps: (1) project initiation; (2) se-lection of a private sector entity and (3) project monitoring. The approval process of a PPP project is sum-marised below:

1. Project Study. The project agency must conduct a study and analy-sis of the project and present it

PPP law paves way for progress with new infrastructureBy Passanan Suwannoi

The Silom line needs increased capacity to ease overcrowding.


to the responsible Minister of the project agency for approval. It will be then submitted to the Office of National Economic and Social Development or the Ministry of Finance, depending on whether the project is a new or existing project.

2. Approval by the Cabinet. After consideration by the Office of National Economic and Social Development or the Ministry of Finance, the project will be sub-mitted to the Cabinet for approv-al.

3. Invitation for Private Participa-tion. Once the Cabinet grants approval, the project agency will prepare an invitation letter for private participation in the proj-ect. A committee will also be ap-pointed by the project agency for the next stage of the selection of private sector entities.

4. Selection Process. Once selection of a private sector entity, conduct-ed by the appointed committee, is

final a draft agreement between the project agency and the select-ed private entity must be prepared and approved by the Office of the Attorney General.

5. Final Approval by the Cabinet. The result of the selection, draft agreement and relevant informa-tion must be submitted to the Cabinet again for final approval.

As the law stipulates a long consid-eration process and the involvement of many government agencies, it may take up to two years to initiate a PPP project. In addition to these approval delays there are also some practi-cal problems with the application of the current law to PPP projects. The Private Participation in State Under-taking Act contains only 25 sections while the number of PPP projects is dramatically increasing.

The definitions of many terms in the Act are not provided or clearly specified, for example, ‘project,’ ‘the

project’s value or asset’, or ‘new and existing project’. The calculation of a project’s value is not defined, the consideration process is lengthy, the governing framework is unclear and there is no provision for the amend-ment or renewal of an agreement be-tween the public and private sector. In addition, there is no central agency to provide support to PPP projects.

In order to repeal the existing legis-lation and to help address the prob-lems in connection with PPP projects a new PPP law has been proposed, namely the Private Joint Investment in State Undertaking Act. The bill was approved by the Cabinet on 10 April 2012 and sent to the House of Representatives for their approval on a fast-track consideration basis.

If the draft is approved by the House of Representatives, it will be further sent to the Senate for final approval, and once granted, announced in the Government Gazette by the Prime Minister and will subsequently be-come effective. The draft new PPP law, as it currently stands, contains the fol-lowing key provisions (see box out).

With more streamlined procedures and clearer guidelines, if and when the bill is passed by the relevant au-thorities, it will be a significant devel-opment for Thailand’s PPP projects, and will hopefully strengthen the country’s infrastructure sector.

Passanan Suwannoi may be contacted at Tilleke & Gibbins, Supalai Grand Tower, 26th Floor, 1011 Rama 3 Road, Chongnonsi, Yannawa, Bangkok 10120, Thailand. Tel: +66 2653 5555. Fax: +66 2653 5678. [email protected]

• The Private Participation in State Undertaking Act B.E. 2535 will be repealed

• The Committee of Private Investment in State Undertaking will be appointed to set up policies and strategic plans in connection with PPP projects and to approve PPP projects, instead of the Cabinet

• More specific definitions of terms will be provided such as ‘state un-dertaking’

• The consideration procedure will be shortened and a time period for consideration will be set. Only approval from the Cabinet is required, while approval of the draft agreement between the project agency and the selected private entity by the Office of the Attorney General will no longer be required. The entire process for approval of a PPP project will be approximately 7-12 months instead of two years

• Projects will not be classified as a new or existing project• The conditions and criteria to calculate a project’s value will be subse-

quently announced by the Ministry of Finance• Clauses to amend and renew an agreement between the public and

private sector will be provided• The project development funds to support the PPP project will be es-

tablished as a source of funds for the government, rather than an an-nual government statement of expenditures. The funds will be used for the preparation of a strategic plan and consideration of the proj-ect’s feasibility

Key provisions of draft PPP legislation


Tail risks arising from the Eu-ropean crisis will remain the key challenge to Thailand’s

growth in 2013. Given heightened uncertainty, Thailand’s export sector is likely to continue to suffer from fal-tering global demand.

Although Thailand’s export markets are well diversified, past experience suggests that this does not fully in-sulate it from external shocks. In 2009, following the US sub-prime crisis, Thai exports contracted by 14 percent – despite the fact that the US market accounts for only about 11 percent of Thailand’s total exports. Based on this experience, persistent-ly high global risk does not bode well for the export outlook in 2013.

Thailand’s household consumption has expanded continuously since 2000, with the exceptions of 2009 and Q4-2011 (see Figure 1). Con-sumption growth has been driven by a combination of factors – favour-able employment conditions, rising disposable income, fiscal stimulus measures, and supportive monetary policy conditions. Unemployment has averaged only two percent in the past decade, and per-capita GDP has risen 2.7 times, to USD 5,024 in 2011 from USD 1,852 in 2001.

On the policy front, in recent years Thai political parties have often used populist fiscal measures – such as mini-mum wage increases, agricultural price subsidies, and tax breaks for first car purchases – in order to gain popularity among voters. Meanwhile, monetary policy conditions have been supportive. The real policy rate has averaged only 0.2 percent since Thailand adopted in-flation targeting in May 2000.

Thailand striving for growth from withinBy Usara Wilaipich

We believe that on-going fiscal stim-ulus measures and benign monetary policy conditions will continue to support consumption growth in 2013. However, the pace of growth

is likely to cool as consumer spend-ing on reconstruction after the 2011 floods fades. In addition, tax breaks for first car purchases will expire at the end of 2012. Event risk from Eu-

Figure 1: Asian regional inflation average

Standard Chartered Asia Focus Global and regional overview – Resilience in the midst of slowdown

24 September 2012 3

Last December, we predicted global growth of 2.2% for this year. This was the lowest forecast from any major organisation or financial institution A few months ago, we revised this to 2.6%. We use slightly different weightings to the IMF, which reports growth on a PPP basis, but our story is consistent with the IMF‟s analysis. Back in December 2011, our expectations for this year were a steady, not spectacular, recovery in the US; recession in the UK and Europe; and cooling across the emerging world. We thought China could weaken in the first half, possibly even recording growth with a 6% handle, and expected a pick-up in growth by Q3. It turns out that the US recovery has been sluggish and that Europe has remained in recession. China was slightly stronger in H1 than we had expected, but it looks like the current weakness will last slightly longer than expected. India, meanwhile, was expected to slow but has weakened more than we thought. Next year, we believe global growth will rise to 3.1%, and, if this is to be achieved, China will play an important role. In looking at Asia in this global context, three words stand out: risk, insulation and differentiation. The global context means that financial markets are now not fully pricing in risk, while, at the same time, it is difficult to say what constitutes a risk-free asset. Despite its present cooling, one could argue that Asia offers more attractive return opportunities given its better growth prospects. Yet, international investors still appear underinvested in the region, and markets with much opportunity – including Indonesia and Thailand – are less favoured than the „safe‟ destinations of Hong Kong and Singapore. Insulation reflects the fact that, while Asia is not fully decoupled from events in the West, it is better insulated

and able to rebound, as was seen in the wake of the global financial crisis. Likewise now. Differentiation reflects the need to make a distinction across the region: between the more open economies, hit harder by the global slowdown, and closed economies. It also points to the need to differentiate between the export and domestic sectors. In much of Asia, domestic demand has been growing more strongly than the export sector, a welcome step towards rebalancing the global economy.

Asia's cycle is cooling The outlook depends on the interaction between the fundamentals, policy and confidence. Throughout this year, I have stressed that the outlook for any region or country depends on the interaction between these three key factors. For Asia, the underlying fundamentals remain good but the near-term outlook continues to be impacted by events in the West. Naturally, there are significant differences across the region, as the latest economic performance has shown. Because of the growth it has seen in recent years, Asia is at a different stage of the cycle to economies in the West. Meanwhile, Asia's policy cupboard is relatively full, and in recent months it has been geared more towards boosting growth. This is in sharp contrast to over a year ago, when inflation was the worry. Now, downside risks to growth have come to the fore, and the policy bias across the region has shifted towards easing. Still, it is necessary to look at each country on its own merits to determine the immediate policy outlook.


Figure 3: Post-crisis GDP levels in Asian economies Real GDP, seasonally adjusted, Q4-2008 = 100

Sources: CEIC, Bloomberg, Standard Chartered Research Sources: CEIC, Standard Chartered Research

-2 -1 0 1 2 3 4 5 6 7 8

2008 2009 2010 2011 2012 2013

Q4 09

Q4 10

Q4 11

80

90

100

110

120

130

140

CN IN SG ID TW VN MY KR HK PH TH

Bottom bar = Q4-09 Middle bar = Q4-10

Top bar = Q4-11

Source: CEIC, Bloomberg, Standard Chartered Research


rope could also undermine Thai con-sumer confidence.

Recent history suggests that Thai con-sumers are highly sensitive to event risk, both domestically and externally. Figure 2 shows the correlation between Thailand’s Consumer Confidence In-dex (CCI) and Private Consumption Index (PCI). The US sub-prime crisis in late 2008 and the global recession in 2009 dampened confidence among Thai consumers, and they subsequent-ly cut consumption.

This suggests that Thailand’s do-mestic consumption is not decou-pled from external shocks. The same pattern was seen in response to the domestic shock of severe floods in late 2011. Thai consumers could cut and/or delay spending in response to deteriorating confidence if there are unexpected headwinds from the European debt crisis in the coming quarters.

Fiscal policy will play a greater role

Thailand’s low public debt (currently 43% of GDP) implies that there is ample room for policy manoeuvre, if needed, to protect growth. In FY13 (year starting 1 October 2012), the government plans to run a budget deficit of THB 300bn (about 2.6% of GDP). This is lower than the planned deficit of THB 400bn (about 3.2% of GDP) in FY12.

The government also plans off-bud-get spending of about THB 350bn

under a special water management decree aimed at preventing future flood disasters. Larger government spending and investment in FY13 should contribute positively to the Thai economy. However, private in-vestment is likely to slow as demand for post-flood reconstruction fades.Taking all of these factors into ac-count, we now expect the Thai econo-my to grow four percent in 2013 (ver-sus our previous forecast of 4.9%). We also raise our 2012 growth fore-cast to 4.4 percent from 3.5 percent.

Policy rebalancing may be needed

Policy uncertainty in Europe will continue to complicate Thailand’s monetary policy outlook. While the current policy stance remains accom-modative enough to support growth, the prolonged European crisis may require some policy rebalancing over the coming quarters. To ensure the continuity of the economic recovery, we now see potential for gradual rate cuts – 25bps in Q4-2012 and 25bps cut in H1-2013 – taking the policy rate to 2.5 percent from three percent currently. Thereafter, we expect the policy rate to be on hold in H2-2013.

In our view, the current downward inflation trend is unlikely to con-tinue into 2013 given the minimum wage increase to THB 300 per day, to take effect nationwide for two years from 1 January 2013. Mean-while, the Bank of Thailand (BOT) has recently voiced concerns that rapid credit growth in some sectors

Usara Wilaipich is Senior Economist, Global Research at Standard Chartered Bank (Thai).Tel: +662 724 8878 Fax: +662 636 8079 Email: [email protected]

warrants close monitoring. Against this backdrop, we believe the BOT is unlikely to cut rates aggressively.

We expect the Thai baht (THB) to strengthen in Q4-2012 and espe-cially at the beginning of 2013, sup-ported by positive growth dynamics and stabilising external balances. Thailand is among the few Asian economies where positive growth dynamics are continuing.

This should support capital inflows. We expect growth to slow in 2013, but from a relatively high level, and this is unlikely to be a significant negative for the THB. Meanwhile, the current account (C/A) appears to be stabilis-ing thanks to a recovery in exports following the floods in late 2011. We expect the C/A to continue to stabilise in 2013, after having been a net nega-tive in H1-2012. Finally, the Standard Chartered Transaction Flows (SCTF) index suggests that the market is sub-stantially long USD-THB, in contrast to general USD-AXJ client position-ing (see FX Alert – Flow Analysis, 17 August 2012, ‘Standard Chartered Transaction Flows – August’).

FY13 bond supply is heavy. Gross Loan Bond supply will be THB 651bn, including THB 110bn of link-ers and THB 16bn of FRBs. Net sup-ply will be THB 443bn. The issuance profile will also be more long-dated, which should exert further steepen-ing pressure on the curve. We recom-mend switching from the 10Y THB into the 3Y BOT (BOT157A) bond.

Figure 2: Post-crisis GDP levels in Asian economies

Standard Chartered Asia Focus Global and regional overview – Resilience in the midst of slowdown

24 September 2012 3

Last December, we predicted global growth of 2.2% for this year. This was the lowest forecast from any major organisation or financial institution A few months ago, we revised this to 2.6%. We use slightly different weightings to the IMF, which reports growth on a PPP basis, but our story is consistent with the IMF‟s analysis. Back in December 2011, our expectations for this year were a steady, not spectacular, recovery in the US; recession in the UK and Europe; and cooling across the emerging world. We thought China could weaken in the first half, possibly even recording growth with a 6% handle, and expected a pick-up in growth by Q3. It turns out that the US recovery has been sluggish and that Europe has remained in recession. China was slightly stronger in H1 than we had expected, but it looks like the current weakness will last slightly longer than expected. India, meanwhile, was expected to slow but has weakened more than we thought. Next year, we believe global growth will rise to 3.1%, and, if this is to be achieved, China will play an important role. In looking at Asia in this global context, three words stand out: risk, insulation and differentiation. The global context means that financial markets are now not fully pricing in risk, while, at the same time, it is difficult to say what constitutes a risk-free asset. Despite its present cooling, one could argue that Asia offers more attractive return opportunities given its better growth prospects. Yet, international investors still appear underinvested in the region, and markets with much opportunity – including Indonesia and Thailand – are less favoured than the „safe‟ destinations of Hong Kong and Singapore. Insulation reflects the fact that, while Asia is not fully decoupled from events in the West, it is better insulated

and able to rebound, as was seen in the wake of the global financial crisis. Likewise now. Differentiation reflects the need to make a distinction across the region: between the more open economies, hit harder by the global slowdown, and closed economies. It also points to the need to differentiate between the export and domestic sectors. In much of Asia, domestic demand has been growing more strongly than the export sector, a welcome step towards rebalancing the global economy.

Asia's cycle is cooling The outlook depends on the interaction between the fundamentals, policy and confidence. Throughout this year, I have stressed that the outlook for any region or country depends on the interaction between these three key factors. For Asia, the underlying fundamentals remain good but the near-term outlook continues to be impacted by events in the West. Naturally, there are significant differences across the region, as the latest economic performance has shown. Because of the growth it has seen in recent years, Asia is at a different stage of the cycle to economies in the West. Meanwhile, Asia's policy cupboard is relatively full, and in recent months it has been geared more towards boosting growth. This is in sharp contrast to over a year ago, when inflation was the worry. Now, downside risks to growth have come to the fore, and the policy bias across the region has shifted towards easing. Still, it is necessary to look at each country on its own merits to determine the immediate policy outlook.


Figure 3: Post-crisis GDP levels in Asian economies Real GDP, seasonally adjusted, Q4-2008 = 100

Sources: CEIC, Bloomberg, Standard Chartered Research Sources: CEIC, Standard Chartered Research

-2 -1 0 1 2 3 4 5 6 7 8

2008 2009 2010 2011 2012 2013

Q4 09

Q4 10

Q4 11

80

90

100

110

120

130

140

CN IN SG ID TW VN MY KR HK PH TH

Bottom bar = Q4-09 Middle bar = Q4-10

Top bar = Q4-11

Source: CEIC, Bloomberg, Standard Chartered Research


With the ambitious target of implementing the Association of Southeast Asian Nations Economic Community (AEC) by 2015, the opportunities for corporate occupiers and real estate investors across an enlarged single market of some 600 million people look promising. Knight Frank’s Research Director for Asia Pacific Nicholas Holt looks into the background, the challenges and the possible impacts.

AEC impacts real estate market

Nearly five years on from the signing of the AEC blueprint in November 2007, the re-

gion is now only three years away from the target of fully implement-ing measures to create a single mar-ket with free movement of goods, services, foreign direct investment and skilled labour.

The possible impacts of actually reaching all of the AEC milestones by 2015 are significant for member states, Asia Pacific and the world economy. The increasing coopera-tion of 10 countries that are so divid-ed by language, political, religious, and economic philosophy is impres-sive. The acceleration of integration which includes the AEC as its focal point will enhance the ASEAN re-gion’s emergence as a serious world economic region.

For corporates the reduced cost of doing business, potential for econo-mies of scale, improved transport in-frastructure and a wider labour pool are tangible benefits, whether look-ing at the region as a manufacturing or service base. For real estate inves-tors, the boost to economic growth, increased transparency and capital markets integration, add to sound underlying fundamentals to provide a compelling story for the region.

In reality, integration as set out in the AEC blueprint is likely to take longer than planned. Protectionism, especially in the form of non-tariff barriers, is an obstacle that will be extremely difficult to eliminate. The

lack of central institutions and a re-liance on consensus politics are also likely to ensure that the integration exercise will be a more prolonged process. Despite these challenges however, the fast growing, diverse economic landscape of the region will provide a huge range of oppor-tunities over the coming years.

The most obvious impact will be an increase in trade between member countries. In terms of existing trade patterns, intra-regional trade is al-ready significant, making up around a quarter of the region’s total trade, but this number only increased slightly between 2000 and 2011 (from 23% to 25%).

Policy makers hope that as trade bar-riers come down, trade will increase

significantly between member states. It should be noted that intra-region-al trade in the European Union (EU) accounts for over 60 percent of total trade. The room to grow is, there-fore, significant.

An increase in intra-regional trade is likely to bring about a number of ef-fects. For firms, it will lower costs as inputs can be imported more cheaply and transportation costs drop as in-frastructure is improved. Economies of scale will also be reaped by busi-nesses that can consolidate regional offices and production sites, with easier mobility across markets en-abling occupiers to choose the most cost-effective locations.

The increase in competition in each market will drive productivity, which will again drive down costs and should be passed on to consumers. The purchasing power of households will increase as they benefit from in-creased competition, higher incomes and more imported goods and ser-vices. The overall effect will be to boost economic growth, by some estimates as much as five percent across the region (Petri, Plummer and Zhai 2010).

The increase in trade will however accelerate some regional disparities, as goods and services previously pro-duced at high costs within a country, will be replaced by cheaper imports from more competitive markets. The free movement of skilled labour will mean that the countries that have a comparative advantage in goods or

By Nicholas Holt

Marcus Burtenshaw, Knight Frank Chartered (Thailand)


services could attract the best talent from around the region.

These changes will influence com-mercial real estate markets, whose demand is derived from growth and changes in the economy. With a boost in GDP, there will be a general increase in demand for commercial real estate, as employment growth will be accelerated as production of goods and services increases.

The movement of capital and la-bour towards the strongest markets for each good and service is likely as barriers come down. This could have certain repercussions on the mem-ber states and respective real estate markets across ASEAN, notably:

• Singapore to remain and increase its importance as the key finan-cial and high end service centre for the ASEAN region. As a truly global city with an important stock market, Singapore will act as the key business hub of the re-gion. This will ensure demand for prime office accommodation in the city state remains high

• Cost driven manufacturing is likely to move towards markets such as Cambodia, Laos, Myan-mar and Vietnam as their physical infrastructure improves. Thailand and Malaysia will have to compete higher up the value chain

• With the continuing increase in incomes and emerging middle classes, retail expenditure will grow significantly, and foreign retailers will be increasingly at-tracted to an enlarged urbanising single market. Significant urban centres will develop more impor-tant retail offerings with foreign goods more prevalent

Cross-border real estate investment within the ASEAN region has been concentrated around Singapore, both as the largest recipient of cross-border investment flows in the re-gion, but also as the main investor itself within the ASEAN region.

These numbers reflect Singapore’s im-portance as a financial centre of the region and the number of institutional investors based out of Singapore (de-

ploying capital raised from through-out the world). As a destination for cross border investment, the transpar-ent and liquid Singaporean market has certainly been seen as a relative safe haven when compared to some of the additional risks elsewhere.

As the AEC targets are met, the aim of strengthening capital market inte-gration across the region will boost real estate investment, while bilateral tax agreements between all the mem-ber states will improve transparency and reduce exit risk.

As capital is more efficiently allocat-ed across the ASEAN countries, and capital raising across borders be-comes easier, we expect investment volumes to increase and pricing be-come more straightforward.

“Last year Thailand’s biggest export destination (24%) and its second big-gest supplier (after Japan) was ASEAN itself and, as the ASEAN economies continue to mature, and the inter-industry linkages deepen, the oppor-tunities should grow too. Planned investment and improvements in logistical linkages with the member states of the AEC should reduce the transportation costs of goods and raw materials, boosting Thai competi-tiveness. But this will take time, and while minimising cost is important, from a manufacturer’s perspective, the depth of capability and market access when taken together are given just as much weight, in a firm’s decision

making analysis,” said Marcus Burten-shaw, Director of Commercial Agency, Knight Frank Chartered (Thailand).

“It is here that Thailand competes to-day and not just with its ASEAN neigh-bours but on the world stage against such countries as China. To attract more manufacturing FDI after 2015, the challenge for Thailand will be the same as it faces today: to compete high-er up the value chain by implementing well thought out policies designed to upgrade the industrial infrastructure and human capital. Further liberalisa-tion of Thailand’s service sector should present many opportunities for service providers with a regional presence to open a base here to not only take ad-vantage of the opportunities present in ASEAN’s second largest economy (Thailand) but also of the geographic advantages that the country offers through its borders to Cambodia, Laos, Myanmar and Vietnam,” he added.

Nicholas Holt is a Research Director, Asia Pacific for Knight Frank. Tel: +65 6228 7313Email: [email protected]

Britain’s new Ambassador to Thailand Mark Kent (centre) with BCCT Executive Director Greg Watkins and the Chamber team.


Skills shortage hinders ASEAN business growth

The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967

by Indonesia, Malaysia, the Philip-pines, Singapore and Thailand. Bru-nei Darussalam, Vietnam, Laos PDR, Myanmar and Cambodia have since joined the group, the aims of which include the acceleration of economic growth and the expansion of trade.

Despite the slowdown in the global economy as a result of the continu-ing sovereign debt crisis in the Euro-zone, the region is expected to grow robustly in the medium-term. In the period 2012-16 these economies are expected to expand by 10 percent per annum on average, double the rate of the global economy.

This growth is expected to account for 6.5 percent of total global growth over the next five years, increasing the share of global output of the ASE-AN region to 3.9 percent in 2016. In 2011, the combined economies of ASEAN accounted for 3.1 percent of global output. The largest members are Indonesia, which accounts for 39 percent of regional output, Thailand (16%), Malaysia (13%), Singapore (12%) and the Philippines (10%).

mistic about their economy over the next 12 months (90%), behind only Peru. Businesses in Malaysia are much less confident (0%), with Sin-gapore (12%), Thailand and Viet-nam (both 8%) also lower down.

Revenue & profit

Net 51 percent of ASEAN businesses expect to see revenues rise over the next 12 months, very similar to the global average (net 52%), but well below the APAC (ex. Japan) figure of net 70 percent. Businesses in Viet-nam are the most positive about see-ing revenues rise (86%), and those in the Philippines the least (44%).

Business confidence

Business optimism slipped slightly in the ASEAN1 region in Q2-2012, falling from net 27 percent to net 23 percent. Globally, business con-fidence picked up slightly to net 23 percent, up from net 19 percent in Q1-2012 on the back of improve-ments in mainland China and the United States. Within the region there are some significant variations in business confidence. Businesses in the Philippines remain very opti-

This is an edited version of the Grant Thornton International Business Report, a quarterly survey of 3,000 businesses in 40 economies that examines south east Asia. Our thanks to Grant Thornton Thailand for their help in providing this report.

Business operations: net percentage of businesses indicating an increase (next 12 month)

Source: Grant Thornton IBR 2012

Growth rate in the ASEAN region


Business leaders in Singapore, Thailand and Vietnam were asked for their views on the creation of the AEC, and which other countries and regions they would like their governments to develop closer trade links with. Sixty percent of busi-ness leaders in these countries are supportive of efforts to develop the AEC, with just seven percent unsupportive. The greatest perceived benefit of the AEC is greater integration into the global economy (62%).

This is followed by the elimination of tariffs, streamlined customs clearance pro-cedure (both 58%) and easier movement of capital (56%). A further 51 percent believe the AEC would help with labour mobility, helping ASEAN businesses over-come the issues they have in finding skilled workers. Indeed, 78 percent of busi-nesses in Singapore believe easier movement of workers will be a benefit of the AEC. Perhaps unsurprisingly given its location, businesses in the ASEAN region would like their governments to improve trade relations most with China (58%). A further 26 percent want better trade relations with India and 54 percent mention other APAC economies. The United States (34%) and Europe (33%) also remain attractive for businesses in the region despite their slower growing economies.

More details: www.internationalbusinessreport.com

About the Grant Thornton IBR

Businesses in Singapore are not ex-pecting huge rises in profits over the next 12 months. Just 19 percent expect to see profitability increase, compared with 50 percent in Thai-land and the ASEAN average of 42 percent. Businesses in Malaysia are the most positive about increasing exports (34%).

Employment

The proportion of businesses in the ASEAN region expanding their workforce climbed to net 40 percent in Q2-2012, up from net 27 percent three months previously. The largest rise was observed in Malaysia, where hiring climbed from net 20 percent in Q1-2012 to net 50 percent in Q2-2012, with Thailand very close be-hind.

Prospects for jobs creation are also more positive in the ASEAN region than elsewhere. Globally, net 29 per-cent of businesses plan to hire more workers over the next 12 months, ris-ing to net 31 percent in APAC (ex.Ja-pan) and net 35 percent in ASEAN. In Thailand, net 42 percent of busi-nesses plan to expand their work-forces in the coming months.

Investment

Despite huge uncertainty in the global economy, the results sug-gest that ASEAN businesses are far from reluctant to invest in the future growth of their operations. Net 24 percent expect to increase invest-ment in new buildings over the next 12 months, and net 39 percent are planning to increase investment in plant and machinery, both above the global average.

A further net 28 percent plan to in-crease R&D spend, although this is well below the APAC (ex. Japan) figure of net 50 percent. Within ASEAN, 34 percent of businesses in Thailand are planning investment in R&D over the next 12 months, fol-lowed by Vietnam (32%) and the Philippines (30%).

Inflation

Inflationary pressures look set to be slightly higher in the ASEAN re-

gion than globally over the next 12 months. Net 31 percent of ASEAN businesses plan to increase selling prices, and a further 75 percent plan to raise employee salaries at least in line with inflation. Businesses in Thailand (38%) and Singapore (37%) are planning the biggest price increases.

Meanwhile, workers in the Philippines (80%), Singapore (79%) and Malaysia (78%) are most likely to receive a pay rise over the next 12 months. Those in Vietnam (66%) are least likely al-though this is only marginally below the global average (68%).

Constraints

A lack of skilled workers is the key constraint on growth for businesses in the ASEAN region, cited by 43 percent of businesses. It is also cited as a major constraint by businesses in the wider APAC (ex. Japan) region (37%), well above the global average (28%). This lack of talent is a particular problem for businesses in Singapore (53%), Malaysia and Vietnam (both 46%).

The ASEAN nations are committed to regional economic integration by 2015, in the form of the ASEAN Economic Community (AEC), its key aims being to develop: • a single market and production base • a highly competitive economic region • a region of equitable economic development• a region fully integrated into the global economy

The cost of finance is also cited as a ma-jor growth constraint by ASEAN busi-nesses (32%), led by Vietnam (50%). Globally, regulations and red tape emerges as the top growth constraint (34%), but only Thailand in the ASEAN region comes in above this figure (40%).

In Vietnam, the slowdown in global trade is a particular concern – short-age of orders/reduced demand emerg-es as the top constraint (56%).

Ian Pascoe, Managing Partner of Grant Thornton Thailand, commented, “According to the survey, unlike other ASEAN members, Thailand currently seems to be somewhat unsupportive (20%) or more indifferent (38%) than its ASEAN neighbours towards plans for the introduction of this single market to its region. This may be because we are not ready yet to embrace the ASEAN Community to our advantage. A clear road map for the country of how we will do that is essential for Thailand - covering many major aspects including foreign business ownership rules, immigration, governance and English language education.”


Since 1971 the EU Generalised System of Preferences has en-sured that exporters from de-

veloping countries pay lower duties on some or all of what they sell to the member countries – creating vital ac-cess to EU markets and contributing to the growth of their economies.

The Commission has put forward a comprehensive GSP package. This includes a proposal for the continu-ation of the existing system (rollover) until the end of 2013 to avoid the lapse of the scheme (as happened in the United States, pending the ap-proval of Congress) and to allow eligible countries to submit applica-tions for GSP+. The Commission also proposes a revised scheme (review) effective 1 January 2014.

The rollover has been adopted by the European Parliament and Council of Ministers and was published in May 2012. The proposal for a new scheme, as adopted by the Commis-sion, aims to focus upon those truly in need; to strengthen GSP+ as an in-centive to good governance and sus-tainable development and to make the system more transparent, stable and predictable.

The three main variants of the scheme (the overall GSP scheme, the “GSP+” incentive scheme for the re-spect of labour, human, environmen-tal and good governance rights and rules, and the ‘Everything But Arms’ scheme for least developed countries) are reinforced, by re-adjusting the preferences and ensuring they have a higher impact.

“Global economic balances have shifted tremendously in the last de-cades. World tariffs are at all-time lows. If we grant tariff preferences in

this competitive environment, those countries most in need must reap the most benefits. Trade and development go hand in hand and tariff preferences are a small part of our wider agenda to help poorer economies scale up their presence in global markets”, said EU Trade Commissioner Karel De Gucht.

A main feature of the proposal is the concentration of GSP prefer-ences on fewer countries. Whilst the generous product coverage and preference margins would remain unchanged, a number of countries would no longer benefit from the scheme, including:

European Commission adopts proposal for GSP

Since 1971, the Generalised System of Preferences (GSP) has allowed develop-ing countries to pay lower import tariffs on some or all of their exports to the EU.

The current GSP scheme covers three elements:

• The general GSP arrangement which provides for import tariff reductions for 176 developing countries and territories

• The special incentive arrangement for sustainable development and good governance (known as GSP+). This offers additional preferences to support vulnerable developing countries in their ratification and implementation of international conventions in the field of human and labour rights, sustain-able development and good economic governance

• The ‘Everything But Arms’ arrangement which provides for complete access (duty-free and quota-free) to the EU market save for arms and armaments for the 48 Least-Developed Countries as defined by the United Nations

The Generalised System of Preferences

EU Trade Commissioner Karel de Gucht


Over the last 40 years, trade has proved to be one of the most effective tools to fos-

ter development. Increased trade with developing countries enhanc-es their export earnings, promote their industrialisation and en-courage the diversification of their economies. The classical instru-ments for achieving these objec-tives are tariff preferences, which provide an incentive to traders to import products from developing countries and thus help them to compete on international markets.

In 1968, the first United Nations Conference on Trade and Devel-opment (UNCTAD) recommend-ed the creation of a Generalised System Tariff of Preferences un-der which industrialised coun-tries would grant autonomous trade preferences to all developing countries.

A waiver was granted in 1971 from Article 1 of the GATT, which prohibits discrimination, to au-thorise developed countries to establish individual Generalised Schemes of Tariff Preferences. (The acronym “GSP” sometimes refers to the system as a whole, sometimes to one of the individu-al schemes). The European Com-munity was the first to implement a GSP scheme in 1971.

Other countries have subsequent-ly established their own GSP schemes that differ both in their product coverage and rules of ori-gin. In order to update its scheme on a regular basis and to adjust it to the changing environment of the multilateral trading system, the EU’s GSP is implemented follow-ing a cycle of ten years. The pres-ent cycle which lasts from 2006 to 2015 was adopted in 2004.

Everything but arms• Countries which have achieved a

high or upper middle income per capita, according to World Bank classification, such as Saudi Ara-bia, Qatar, Belarus and Russia

• Countries that have preferential access to the EU which is at least as good as under GSP – for ex-ample under a Free Trade Agree-ment or a special autonomous trade regime

• A number of overseas countries and territories (OCTs), which have an alternative market ac-cess arrangement for developed markets

• Reinforcing the incentives for the respect of core human and labour rights, environmental and good governance standards through the GSP+ scheme

• Strengthen the effectiveness of the trade concessions for Least Developed Countries through the Everything but Arms scheme. Reducing GSP to fewer benefi-ciaries will reduce competitive pressure and make the prefer-ences for LDCs more meaning-ful. The EU’s EBA scheme is al-ready unmatched by any other developed country

• Increasing predictability, trans-parency and stability. The sys-tem will become open-ended, while now it is subject to review every three years. This will make it easier and more attractive for EU importers to purchase from GSP beneficiary countries. In addition, procedures will be-come more transparent, with clear and better defined legal principles

The proposal will be debated in the Council of Ministers and European Parliament with a view to having the reformed GSP in place by 1 January 2014.

Preferential access to the EU mar-ket may be suspended if beneficiary countries engage in serious and sys-tematic violations of core human rights or labour rights conventions, as established by the competent monitoring bodies of the United Nations or the International Labour Organisation.

Traditionally, it has been admitted that the group of least developed countries (LDCs) should receive more favourable treatment than other developing countries. Gradu-ally, market access for products from these countries has been fully liberalised. In February 2001 the Council adopted Everything But Arms Regulation (EC) 416/2001 (the so-called ‘EBA Regulation’) granting duty-free access to imports of all products from LDCs, except arms and ammunitions, without any quantitative restrictions (with the exception of bananas, sugar and rice for a limited period).

EBA was later incorporated into the GSP Council Regulation (EC) No 2501/2001. The Regulation foresees that the special arrange-ments for LDCs should be main-tained for an unlimited period of time and not be subject to the pe-riodic renewal of the Community’s scheme of generalised preferences.

Beneficiaries of the special arrange-ments for least developed coun-tries require formal recognition by the United Nations. At present, 48 developing countries belong to the category of LDCs. EBA provides the most favourable regime available.

The EBA gives the 48 LDCs duty free access to the EU for all prod-ucts, except arms and ammunition.

• Myanmar was withdrawn from the list of GSP countries in 1997 (Council Regulation 552/97) based on article 9 of Regulation (EC) No 3218/94 and article 9 of Regula-tion (EC) No 1256/96 which pro-vided that preferences could be withdrawn in circumstances in-cluding the practice of any form of forced labour, as defined by ILO Conventions No. 29 and 105

This report is based on material provided courtesy of the European Commission.


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Duke’s Chamber speech highlights UK successes

Catherine and I are delighted to be here on what is our first visit to Malaysia. We are particularly

pleased that our visit is specifically to celebrate the Diamond Jubilee of Her Majesty The Queen. Her dedication has been extraordinary to all her Realms; and to the Commonwealth of which Malaysia is such an important and influential member. My Grandmother told me that Malaysia would provide us with some wonderful experiences and unforgettable memories. And so indeed it has proved.

Over these three days here in Kuala Lumpur and in Sabah, we are getting to learn more of the different cul-tures that make up this great nation and seeing for ourselves something of the fabulous natural heritage of this land. We would like to thank the Malaysian people for giving us this marvellous opportunity.

The Queen has asked me to convey to the Malaysian people her deepest good wishes in this, her Diamond Ju-bilee Year. Thank you for this lunch and thank you from the bottom of our hearts for welcoming us to Malaysia.

I am conscious that we come here as part of a long tradition of friendship and partnership between the United Kingdom and Malaysia. Indeed, the past year has seen so many high level visits in both directions that it has been difficult to keep up with the revolving door. Highlights have included Prime Minister Najib’s visit to the United

nomic backdrop. The United Kingdom has for the first time in some 40 years again become a net exporter of cars.

I am, delighted too, that our business relationship is very much a two way street. I know that British companies in a wide variety of sectors from oil and gas to the creative industries are doing excellent business here.

The UK education sector is particu-larly active. I was very impressed to learn that more students study for UK qualifications here than in any other country in the World. This is not just important for educational or commer-cial reasons. When our students share the same curricula, and strive for com-mon qualifications, we are building invaluable links between our younger generations that will continue to en-rich and strengthen the relations be-tween our countries for years to come.

Catherine and I have only been here a very short time – much too short, in fact. But I am already clear that your energetic commitment now, and the potential of our young people to work together in the years ahead, will en-sure that the relationship between the United Kingdom and Malaysia is full of promise and possibility.

Let me end by thanking the British Malaysian Chamber of Commerce most warmly for your generosity in giving the proceeds from this event to Hospis Malaysia. Catherine and I had a most moving visit to the Hospis yesterday. You are supporting a really wonderful cause.

On behalf of Catherine and myself, I wish to say again how delighted we are to see so many of you here today; and to thank you and all Malaysians for the warmth of your truly unfor-gettable welcome.

Kingdom and the British Prime Min-ister’s visit here in April. We also had the great pleasure of welcoming His Majesty The Yang Di-Pertuan Agong and The Raja Permaisuri Agong dur-ing their two visits to London for the celebrations of the Diamond Jubilee and for the Olympic Games.

At the heart of our longstanding partnership is business. Britain is an innovative, competitive and above all an open economy that warmly wel-comes Malaysia’s businessmen and women. Nothing could make that clearer than the recent acquisition, by a Malaysian consortium, of the iconic Battersea Power Station site in London, just a mile from the Brit-ish Parliament at Westminster. The striking Battersea investment is part of a welcome and growing pattern. DRB-Hicom has invested in Lotus, another British icon; and the Malay-sian SME InfoValley, and many other Malaysian firms, have also been mak-ing significant investments in the British economy.

Incidentally, I can’t help pointing out that investing in the British automotive sector is a smart move, despite what is currently a difficult international eco-

We are delighted to share with readers the full transcript of the speech given by HRH the Duke of Cambridge upon the occasion of the recent royal visit to Malaysia. He was speaking at a lunch-eon hosted by the British Malaysian Chamber of Commerce.


Centre

Royal visit to Rolls-RoyceRolls-Royce welcomed Their

Royal Highnesses The Duke and Duchess of Cambridge

to the company’s Seletar Campus in Singapore where they unveiled the first Rolls-Royce aero engine assembled and tested in Singapore. The engine, a Trent 900, is type used to power the Airbus A380.

The Rolls-Royce Seletar Campus is the largest aerospace facility in Singa-pore. It includes an assembly and test unit; a wide chord fan blade manu-facturing facility; advanced technol-ogy and regional training centres.

Mark King, President – Civil Aero-space at Rolls Royce, said, “We are proud and delighted to welcome The Duke and Duchess of Cambridge to Rolls-Royce as we celebrate two important milestones today: the completion of our first batch of wide chord fan blades and the completion of the first Trent aero engine assem-bled and tested in Singapore.

“At Seletar we are bringing together state of the art technologies, ad-vanced manufacturing techniques

ing over 500 new jobs, bringing the number of people employed by Rolls-Royce in Singapore to over 2,000.

It is expected that the Group’s value-added contribution in Singapore will increase from 0.3 percent of GDP currently to 0.5 percent of the GDP projected in 2015. Rolls-Royce will also assemble and test the Trent 1000 engine at the Seletar Campus. The Trent 1000 powers the Boeing 787 Dreamliner.

and highly skilled people to produce some of the most advanced aero en-gines in the world. This fantastic new facility gives us the extra capacity we need to deliver on our order book, which stands at over £60 billion.”

The campus opened in February 2012 and represents an investment of over S$700 million. It increases the Group’s manufacturing capacity and proximity to customers in the Asia Pacific region as well as creat-


BiSEA report from Singapore conferenceBiSEA is an informal grouping

of the British chambers and business associations/groups

in Brunei, Cambodia, Indonesia, Ma-laysia, Philippines, Singapore, Thai-land and Vietnam. BiSEA meets ev-ery six months in order to exchange ideas and best practice on key opera-tional issues and to discuss topics of importance to the companies BiSEA members represent.

BCCT has played a major role in BiSEA since hosting the first formal conference in Bangkok in 2008 and was represented this time by Chairman Simon Landy and Executive Director Greg Watkins.

Within BiSEA BCCT has responsi-bility for lobbying the British gov-ernment for material improvement to the stated 28 days for British na-tionals working in BiSEA countries to receive their renewed passports. Often busy executives are effectively grounded and unable to travel. Mr Watkins undertook to meet the re-sponsible government agency during his next visit to the UK in October.

Britcham Singapore tabled a position paper which reaffirmed key aspects of BiSEA’s mission:

Mission Statement• BiSEA Chambers and Business

Groups work together to increase member value in all BiSEA markets

• BiSEA facilitates cross-country member connection to better serve members’ business interests

• Lead connection to and collabo-ration with the UK ASEAN Busi-ness Council (UKABC)

Goals• Increase value for members• Increase member engagement- Continuously improve the Cham-

ber/BG operations

Howard Rosen of the Council of British Chambers in Europe (COB-COE) briefed BiSEA on COBCOE’s activities. It represents 40 Chambers from 37 countries and 10,000 busi-nesses. COBCOE acts as co-ordina-tor and a source of ideas and pub-lishes a magazine – LINKS. It also runs an annual training academy for chamber Executive Directors. There is an annual conference and regular meetings with the UK Government.

A recent COBCOE initiative is Brit-ish Business Worldwide (BBW), an informal alliance allowing Brit-ish businesses to connect and col-laborate. BBW currently comprises: British American Business, British Chamber of Commerce in Japan, British Chamber of Commerce Ko-rea, British Chambers of Commerce in Latin America, British Egyptian Business Association, China-Britain Business Council, The Australian British Chamber of Commerce, The British Business Group, Dubai and Northern Emirates and the UK India Business Council.

The BCCT board has resolved to develop formal bilateral links with COBCOE and to join BBW.

- Translate collaboration with UKTI into benefits for members and Chamber/HMG operations

Critical Success Factors - Regularly exchange best practice- Add proven concepts to our

respective offerings- Continuously improve our

offering with BiSEA in mind- Communicate BiSEA values to

our members

BiSEA Member Values - Access to events in BiSEA mar-

kets at member rates- Access to Executive Directors in

the markets- Directory opportunities (listing,

advertising) at member rates- Exposure through articles in

Chamber magazines- Business contact referrals - Exposure through presentations

to members

Communication Channels for BiSEA values- Existing: respective websites,

magazines, one-to-one meetings, AGM and others

- New: BiSEA newsletter and website

BCCT Chairman Simon Landy (second left) and Executive Director Greg Watkins (far right) attending the BiSEA conference in Singapore.


CAMBODIABritish Business Association of Cambodia c/o Top Recruitment Cambodia592, Building F, Phnom Penh CentreCorner Sothearos & Sihanouk Boulevards, Phnom Penh, CambodiaTel: 855-23-997-492 Fax: 855-23-997-493Email: [email protected]: www.bbacambodia.comChairman: Tom SterlingCommittee Secretary: Kevin Britten

INDONESIABritish Chamber of Commerce in IndonesiaWisma Metropolitan 1, 15th Floor, Jl. Jend, Sudirman Kav 29-31Jakarta, Indonesia 12920Tel: 62-21-522-9453 Fax: 62-21-527-9135 Email: [email protected]: www.britcham.or.idChairman: Haslam PreestonExecutive Director: Chris Wren

MALAySIABritish Malaysian Chamber of CommerceE04C1, 4th Floor East Block Wisma Selangor Dredging, 142-B Jalan Ampang 50450 Kuala Lumpur, Malaysia

Tel: 603-2163-1784 /1786Fax: 603-2163-1781Email: [email protected]: www.bmcc.org.myChairman: Dato Larry GanDirector, Business Development: Molly Jagpal

PHILIPPINESBritish Chamber of Commerce of the Philippines c/o The British Embassy Manila120 Upper McKinley RoadMcKinley Hill, Taguig City 1634Metro Manila, PhilippinesTel: 632-858-2255/858-2372/858-2373Fax: 632-858-2390Email: [email protected]: www.bccphil.com Chairman: Keith PerrinExecutive Director: Alison Doig Henderson

SINGAPOREBritish Chamber of Commerce in Singapore138 Cecil Street, #11-01 Cecil CourtSingapore 069538Tel: 65-6222-3552 Fax: 65-6222-3556 Email: [email protected] Website: www.britcham.org.sg President: Mr. Steve PuckettExecutive Director: Brigitte Holtschneider

THAILANDBritish Chamber of Commerce Thailand (BCCT)7th Floor, 208 Wireless Road, LumpiniPathumwan, Bangkok 10330Tel: 66-2651-5350-3 Fax: 66-2651-5354Email: [email protected] Website: www.bccthai.com Chairman: Simon Landy Executive Director: Greg Watkins

VIETNAMBritish Business Group Vietnam

Ho Chi Minh CityG/F 25 Le Duan Blvd, District 1Ho Chi Minh City, VietnamTel: 84-8-3829-8430 Fax: 84-8-3822-5172Email: [email protected]: www.bbgv.org

Hanoi67 Le Van Huu, Hai Ba Trung, Hanoi, VietnamTel: 84 4 6674 0945Chairman: Patrick RegisExecutive Director: Jakki Lydall

Britain in South East Asia (BiSEA)

The Bliss of European Cuisine

The European-ASEAN Business Centre (EABC), led by Executive Director John Svengren, organised a networking event with the theme ‘The Bliss of European Cuisine’ – highlighting exhibitors from European countries participating in the European Pavilion at Food and Hotel Thailand 2012. EABC is an European trade organisation situated in Bangkok with an objective to contribute to the improvement of trade and investment opportunities for European companies in Thailand. More details: http://www.eabc-thailand.eu/


Thailand pensions update

Whenever a discussion about pensions takes place, one often hears reference being made to “the three pillars of savings.” The purpose of these pillars is

to promote a system that allows the elderly and disabled to retire from work with dignity. This article provides an update on the status of second-pillar tools in Thailand: the occupa-tional pensions that are available to private company em-ployees. (We are not providing updates on the government pension fund, as this is for civil servants only.)

Pensions are important in the Thai context because Thailand’s population growth rate has dropped from over three percent in the ’60s to 0.6 percent in 2010. This demographic presages increasing numbers of old people and fewer young people to pay the taxes necessary for their care. By 2023, it is expected that growth in the Thai population will have ceased. Whereas the world average for the retired as a percentage of national population is eight percent, today in Thailand 13 percent of the population has already retired. This figure will nearly double over the next twenty years to 22 percent (UN 2030 estimate).

ingly, owing to the failure of Thai salaries to keep pace with the cost of living, from 1989 to 2003 the household savings rate declined from 14.4 percent to just 3.3 percent of GDP. Today’s households have a lower net worth than ever before.

This is despite Thailand having more jobs than it has Thai workers. Today’s unemployment rate is at a level (0.6 percent) that would normally produce wage inflation. However, because of the relatively under-developed state of most of its neighbouring economies, Thailand is today able to put off such issues and now survives by attracting Burmese, Laotian and Cambodian workers, estimated to number around six million. These workers largely perform the jobs that Thais are no longer so keen on – crew for fishing vessels, warehouses, construction, and janitorial work – jobs without social security or benefits – thus allowing Thai workers to move up the value chain.

This is a very fragile accommodation. The point of the above chart is that tomorrow, developments within Thailand’s neighbouring economies (viz. what’s happening in Myanmar today) may render Thailand’s access to imported human resources much scarcer. The key long-term question is whether the ageing that is simultaneously occurring in China and Singapore (not to mention that in Japan) will draw away imported workers and even Thai workers, who are so essential to Thailand today?

In the immediate short-term, regional economic union in 2015 (the creation of the ASEAN Economic Community or AEC) will certainly intensify competition among neighbouring nations to attract mobile workforces. The prevailing quality of life and total compensation offered will be the key attractors, with pension forming a large part of the compensation component. Hong Kong, Singapore and Malaysia have already legislated compulsory pensions and can therefore expect to out-compete for the skilled sectors.

It needs to be emphasised quite how far behind Thailand lags in this respect: in the past, Aon Hewitt surveys have suggested

By Tim Beevor

* Does not yet exist.

Pillar1994 World

Bank DefinitionThailand Equivalents

Public Pension

Non-contributory (basic pension)

Dept. of Public Welfare’s means-tested social pension (THB 500 per month)

Occupational Pension

Contributory (forced savings)

• Social Security (maximum insurable monthly salary of THB 15,000)

• National Savings Fund• The proposed National Pension Fund*• Private Provident Funds • Government Pension Fund

Personal Pension

Contributory (voluntary savings)

Trade-union sponsored savings co-ops, Long Term Equity Funds, Retirement Mutual Funds, insurance policies, banking products, personal portfolios, etc.

Three pillars of savings

Consulting © Aon Consulting (Singapore) Pte. Ltd. | Co. Reg. No.: 198301764G 2

On the positive side, this year has seen the introduction of the National Savings Fund, a voluntary fund to provide a pension scheme for citizens currently not covered by either Social Security or a private pension plan (predominantly the self-employed and people employed in the informal sector). It was created under the mandate of the National Savings Fund Act BE 2554 (2011) and launched on 8 May, 2012. Anyone aged between 15 and 60 years is eligible, with monthly contributions of between THB 50 and THB 1,100; these are matched by government contributions according to an age-related scale.

This article contends that, despite the presence of such schemes, Thailand remains unprepared for its rapidly ageing society. This is not just due to government inactivity. Alarmingly, owing to the failure of Thai salaries to keep pace with the cost of living, from 1989 to 2003 the household savings rate declined from 14.4% to just 3.3% of GDP. Today’s households have a lower net worth than ever before.

This is despite Thailand having more jobs than it has Thai workers. Today’s unemployment rate is at a level (0.6%) that would normally produce wage inflation. However, because of the relatively under-developed state of most of its neighboring economies, Thailand is today able to put off such issues, and now survives by attracting Burmese, Laotian and Cambodian workers, estimated to number around six million. These workers largely perform the jobs that Thais are no longer so keen on – crew for fishing vessels, warehouses, construction, and janitorial work – jobs without social security or benefits – thus allowing Thai workers to move up the value chain.

Source: Institute of Population Studies, Chulalongkorn University

Proportion of single Thai women aged 15-49 years

This ageing demographic is reason enough for the urgent in-troduction of the now long-mooted National Pension Fund (NPF), a vital savings tool whose introduction successive governments have continued to shelve.

On the positive side, this year has seen the introduction of the National Savings Fund, a voluntary fund to provide a pension scheme for citizens currently not covered by either Social Se-curity or a private pension plan (predominantly the self-em-ployed and people employed in the informal sector). It was created under the mandate of the National Savings Fund Act BE 2554 (2011) and launched on 8 May, 2012. Anyone aged between 15 and 60 years is eligible, with monthly contributions of between THB 50 and THB 1,100; these are matched by gov-ernment contributions according to an age-related scale.

This article contends that, despite the presence of such schemes, Thailand remains unprepared for its rapidly ageing society. This is not just due to government inactivity. Alarm-



Myanmar Laos China Vietnam V: 43% D: 41% V: 11% D: 62% V: 74% D: 47% V: 44% D: 43%

Malaysia Thailand Cambodia Singapore V: 29% D: 55% V: 84% D: 47% V: 17% D: 55% V: 170% D: 45%


Social Security, which entitles members to up to 20% of their average salaries over the five years leading to retirement, requires contributions to have been made for fifteen years, and is limited to a maximum monthly retirement payment of THB 3,000 (approximately USD 100).

Earlier this year, the uproar from the business community that greeted the government’s legislated increases to the minimum wage underscores just how margin-sensitive many Thai businesses are. In the future, if this sensitivity persists and margins can’t be improved, then such businesses will need to relocate to cheaper neighbouring countries. A provident fund adds a minimum of 3% to employment costs.

The failure of many Thai employers to provide long-term security to their employees encourages neither loyalty nor adequate investment by employers in skills improvement, thus anchoring the country in low-cost manufacturing, just as its more sophisticated neighbours are developing their service industries.

Being realistic, despite the pressing need for a National Pension Fund, the Thai government is presently focused on political bickering and has its hands full solving flooding issues. So today’s concern is that by further delaying pensions reform, Thailand will be uncompetitive when the 2015 AEC race begins. The more skilled Thai workers, responding to their own ageing crisis, may well migrate to countries where a pension is included in the employee benefit offerings, leaving Thailand facing a critical skills shortage … and this time, without the assistance of migrant workers from its poorer neighbours.

Contact Tim Beevor is the Managing Director of Aon Hewitt’s Health & Benefits practice in Thailand. He can be reached at [email protected].

Source: Ministry of Commerce Thailand – Total registered companies 1999-2011

Availability of pension in Thailand companies

Tim Beevor is the Managing Director of Aon Hewitt’s Health & Benefits practice in Thailand. He can be reached at [email protected].

margins can’t be improved, then such businesses will need to relocate to cheaper neighbouring countries. A provident fund adds a minimum of three percent to employment costs.

The failure of many Thai employers to provide long-term security to their employees encourages neither loyalty nor adequate investment by employers in skills improvement, thus anchoring the country in low-cost manufacturing, just as its more sophisticated neighbours are developing their service industries.

Being realistic, despite the pressing need for a National Pension Fund, the Thai government is presently focused on political bickering and has its hands full solving flooding issues. So today’s concern is that by further delaying pensions reform, Thailand will be uncompetitive when the 2015 AEC race begins. The more skilled Thai workers, responding to their own ageing crisis, may well migrate to countries where a pension is included in the employee benefit offerings, leaving Thailand facing a critical skills shortage … and this time, without the assistance of migrant workers from its poorer neighbours.

This article also appeared in the last issue of The Brief but some charts were inadvertently omitted. We apologise to the author for the error.

Thailand and Its Neighbours: 1996–2025, Population Pyramids, Vitality and Dependency Ratios

Population Pyramids show the age tree (vertical scale) in 1996 (grey line) and the projection for 2025 (orange line).Vitality or V (first percentage, on left hand side) is the number of old (>65 yrs) divided by the number of young (<15 yrs): if the number is over 100%, it means there are more old people than young people: Singapore, Thailand and China have the biggest future problem in this respect.Dependency or D (second percentage, on right hand side) is the old and the young (<15 yrs and >65 yrs) added together and divided by the number of adults (>15 yrs and <65 yrs): lower numbers mean the population has fewer unproductive people.: (should be no paragraph break here but I can’t seem to delete it)Myanmar, Vietnam and Singapore have the best positions here.

Source: US Census Bureau

that 80 percent of Thai companies have a provident fund, but this is true only in a multinational company context. In a wider national context, most Thai companies do not offer a pension and only just over two percent offer this benefit. Every company and its employees are obliged to make Social Security contributions.

Social Security, which entitles members to up to 20 percent of their average salaries over the five years leading to retirement, requires contributions to have been made for fifteen years, and is limited to a maximum monthly retirement payment of THB 3,000 (approximately USD 100).

Earlier this year, the uproar from the business community that greeted the government’s legislated increases to the mini-mum wage underscores just how margin-sensitive many Thai businesses are. In the future, if this sensitivity persists and


OSMEP targets new linkswith British businessThe government agency

charged with aiding SMEs in Thailand is looking to create

business links with boat builders in the United Kingdom.

Dr Wimonkan Kosumas, Deputy Di-rector General of the Office of Small and Medium Enterprises Promo-tion (OSMEP), floated the idea dur-ing a briefing to BCCT members. Dr Wimonkan said that British boat builders could find real advantages in establishing new supply chains and sourcing expertise from Thai-land businesses. She explained that Singapore was regional hub for boat and yacht repairs but Thailand could match the quality at a more competi-tive price.

OSMEP is targeting a broad range of business sectors in a bid to help the country’s 2.7 million SMEs. These sectors include fashion and design, ICT, nano technology, tourism/spas and specialist foodstuffs and herbs.

OSMEP was created in the wake of the SME Promotion Act 2000 and has, hitherto, focussed mainly upon opportunities within the ASEAN plus 6 region. One exception is Italy, regarded by OSMEP officials as a model for cluster development. OS-MEP established an ‘Italy help-desk’ at its Bangkok headquarters to fa-cilitate better links with Italian busi-nesses and Dr Wimonkan confirmed that a similar move could be made to support better links with the United Kingdom. OSMEP will cover airfare and accommodation costs for UK buyers attending SME Expo events in Thailand.

SMEs in Thailand account employ some 83 percent of the nation’s work-force and contribute around 37 per-cent to GDP.

experiences of UK SMEs who have capitalised on the opportunities of doing business in the EU. We believe that the lessons learned can be shared with Thai SMEs looking ahead to op-portunities within the ASEAN Eco-nomic Community from 2015. They must now consider the entire ASE-AN region as their customer base in much the same way as British SMEs consider market potential in, say, Po-land or Finland.”

Dr Wimonkan concluded her pre-sentation by reminding BCCT mem-bers that UK businesses establishing a commercial presence in Thailand with a local partner may qualify for OSMEP support as the current legal framework of share ownership (max-imum 49 percent foreign owned) will deem the company as Thai.

In Thailand SMEs are categorised by assets (not more than 200 million baht) and by employees (not more than 200).

“We will not escape the middle in-come trap unless we do more to help SMEs in Thailand,” she said. “We need international partners to help us launch our brands because their expertise is vital. Our SMEs must im-prove their competitive edge or face takeover.”

Dr Wimonkan told the BCCT brief-ing that there are ‘knowledge incu-bators ‘now well established at uni-versities throughout Thailand to aid SMEs and OSMEP is prepared to create forums at these universities to enable UK businesses to better un-derstand and appreciate the oppor-tunities that exist.

Bangkok-based UKTI director Brad-ley Jones has welcomed the interest shown by OSMEP. He said,” This is good news for British business. There have been recent high level exchang-es between Thailand and the UK on this subject and we hope to develop an initiative that will draw upon the

Dr Wimonkan Kosumas (left) is thanked by BCCT Director Chris Thatcher.


Top tips on email etiquette for jobseekers in ThailandNowadays, communication in

the corporate world rarely takes place in person. Given

the advancement of technology, the primary medium of communication has become email correspondence. Likewise, the majority of the dialogue in a recruitment process is conducted by email.

In order to sell yourself as a perfect fit to potential employers, you need to master the art of communicating effec-tively through emails – better known as email netiquette. First and foremost, the candidate needs to present him/herself as a professional. Given that a potential employer’s first impression of the candidate is their email address account, using a name that includes inappropriate words and phrases, such as ‘[email protected]’ or ‘[email protected]’, will probably not be the best representation of you.

The easiest solution is to create a sepa-rate email address account for business purposes only. Just simply combine your first and last name and/or initials and you will be taken more seriously by potential employers.

The next step is to use an effective sub-ject line. In order to encourage the re-ceiver to actually open the email, the subject line needs to be clear and en-gaging. Make it concise, yet reflective of the contents of the message. For job seekers, make sure to list the job you are applying for in the subject line, in-cluding the job posting reference num-ber if responding to an advertisement.

Keep in mind not to be too generic with your word choices, as some filters may consider your email as ‘spam’. How-ever, the worst thing you can do is to leave the subject line blank. This is un-acceptable and, in the event that you do this, you may expect the message to be deleted or end up in a ‘spam’ mailbox.

say that you will get back to them later. This sends a message to the recruiter that you are enthusiastic for the posi-tion and may place you ahead of slow responders. Emails are immediate and recruiters know this.

Lastly, do pay attention to your spell-ing and grammar. Job seekers need to make sure to proofread the entire email once, twice and maybe three times be-fore clicking the ‘send’ button. It is al-ways a good idea to have a third-party look over the email just to make sure that there are no punctuation or gram-matical errors. Not using a proper structure (no punctuation, all caps or lower caps) sends out a clear signal to recruiters of your level of education and professionalism. It’s better to be safe than sorry. (And do not reply solely upon spellchecker. Ed)

Emails have become a powerful tool in any job seeker’s arsenal and should be used appropriately. In order to get the job, candidates need to send emails that look, act and sound professional. Just take an extra 30 seconds to look over the email to make sure that you have applied these simple tips. Poor email ‘netiquette’ could cost you the position.

In order to keep the recruiters’ atten-tion, job seekers need to keep shirt the length of their email as well as make sure that it is clear at the begin-ning of the message why you are writ-ing the email. A good tip is to use the K.I.S.S formula: Keep It Short and Simple. Don’t bore the recruiter with a long message. These messages will be pushed aside and usually forgotten.

The majority of corporations utilise Microsoft Outlook as their email ser-vice provider. Since the recipient is sent a pop-up preview of the email, senders should spend most of the time on the top three inches of the email. Further-more, if job seekers keep their mes-sages and responses brief and to the point, they will lose the job by using ONLY CAPS, texting abbreviations, slang words or emoticons. This sort of language belongs on Facebook, Twitter and in SMS. Candidates need to keep a formal professional tone in all email correspondence.

The last impression in an email is the sender’s closing and signature block. An electronic signature is similar to a name signed on paper. It seals the email. Never send blind emails to an employer. It’s like leaving a voice mes-sage without providing the call back number. A handy tip is to set up an automated signature. For the signa-ture block, you should always include a professional closing and your contact information such as your full name, email address and phone number. It makes candidates easily accessible and effortless for the recruiters to get in touch with them.

If a potential employer or recruiter contacts you via email, make sure to respond promptly. Whenever pos-sible, job seekers should reply within the same day. Simply use the 24 hour rule: deal with any email within 24 hours of receiving it even if it is only to

Amy Byrum is a Consultant at RSM Audit Services (Thailand) Limited. She is currently on secondment to RSM Thailand from RSM McGladrey in the USA.Tel: +66 2 670 9002 Fax: +66 2 670 9027/8Email: [email protected]


Taking care in ThailandMany people come to Thai-

land to work, fall in love with the country and end

up retiring here. At first, everything is wonderful. They have time to play golf on some of the best courses in the world; they can tour the country tak-ing in the most amazing sights and enjoy a very diverse culture. Despite recent financial changes in the world, Thailand is still a relatively cheap place to live when compared to many Western countries. The attraction of retirement in Thailand is obvious.

As these retirees grow older they can begin to suffer many problems. These may be financial, mental or physical illness, declining mental ability or just simple infirmity. These problems are often exacerbated when one part-ner dies, leaving the other without support. Very often, the cost, upheav-al and general unattractiveness of re-turning to their country of origin is unpalatable to many foreign retirees, however infirm they may be.

UK citizens are particularly vulner-able as state pensions are frozen as soon as they are known to reside per-manently abroad and their access to the National Health Service is cut off. It is not surprising therefore that in Chiang Mai, where there are estimat-ed to be over 2,000 British retirees, that relatively few register with the British Consulate.

It was in response to the increasing number of elderly, infirm and severe-ly ill people that required help from the British Consulate that British Consult Ben Savasti and Susan Ste-venson, the then American Consul, instigated what later became known as Lanna Care Net (LCN) - a group of people who help ageing foreigners live safe and healthy lives in Chiang Mai and surrounding areas.

They do this by providing advice and practical assistance where necessary. All its work is undertaken with the full and informed consent of their clients

as shop and look after herself was beyond her daily, decreasing capa-bilities. Her friends turned to Lanna Care Net which, with Luanne’s agree-ment, provided experts to help sort out her finances and organised some inexpensive assistance to help her in her everyday life. She continues to live in Chiang Mai, has regular visits from friends and lives as full a social life as possible. A space has been found in local sheltered accommodation for when she becomes incapable of living in the wider community.

Cheers!

Jake drank far too much. Sadly there are many foreigners who come to live in Thailand who either have, or ac-quire, an alcohol problem. Such peo-ple often have a series of accidents and frequently are unable to organise their financial responsibilities. Quite often such people are brought to the atten-tion of LCN by the police or medi-cal institutions if they start to cause problems. On several occasions LCN has helped such people become sober, helped them organise their financial affairs so they are more secure and less likely to be taken advantage of and helped them become fit and healthy again. Sometimes they return to their country of origin, sometimes they change their lifestyle and live full and fruitful lives in Chiang Mai and sadly, sometimes they revert back to their old habits but at least they are normally more financially secure than before.

Where am I?

Charlie had an accident and woke up in hospital. Accidents and medical emergencies are all too common and in this very stressful state foreign-ers find few people who can explain what has happened to them. They may need to contact their place of residence or their friends and family either in Thailand or in their home country. In such cases LCN can pro-vide medical practitioners to explain the medical situation to the patient,

and is completely confidential. Ser-vices are also provided without charge.

Lanna Care Net has grown rapidly since its formation just over a year ago. Already it has made a signifi-cant and positive difference to many people’s lives. Support has been given to terminally ill residents either by giving them support locally or help-ing repatriate them. At the other end of the scale simple hospital visiting is a regular activity and LCN is now training Thais, to physically handle infirm or bedridden partners without injuring either party.

The following case studies are typical of the work LCN does but do not re-late to specific clients due to the strict confidentiality rule promised to all clients.

Getting Home:

Pierre had had a couple of heart at-tacks and wanted to return home to Europe where he was still eligible for free medical treatment, in order to have some major surgery. He at-tempted to buy a ticket but could not find an airline willing to take him. LCN was able to arrange for a flight and a nurse to accompany him to the hospital in Europe. Left to his own devices he might never have been able to make the trip. It is important to remember that airlines are reluc-tant to fly sick people and leaving it too late may mean it is impossible to leave Thailand by air.

I Forget:

Luanne and her husband had lived in Chiang Mai for 25 years. They had completely lost touch with friends and relations in the USA but had had a good social life in a part of the world that they loved dearly. Sadly Luanne’s husband died and her friends realised that she was suffering from the early stages of dementia. Her manage-ment of her finances became erratic. Her ability to do simple things such

By Colin Jarvis


Colin Jarvis is a BCCT member living in Chiang Mai. He may be reached at [email protected]

in their own language, provide regu-lar hospital visits to patients who would find them useful and under-take any other activity that will help these patients recover quickly and with the minimum of stress.

At the end of the day:

Sadly LCN comes across many people who have been diagnosed with a ter-minal illness. People can react to this news in different ways. Some are posi-tive and determined to make the best of the situation, others become angry and yet others just seem to give up. When LCN discovers such a case they first ensure that the patient is looked after so that they may exit this world in as much comfort and with as much dignity as possible. LCN can also pro-vide advisers to help sort out their fi-nances and other affairs so they do not leave behind problems for other people and they can organise visits according to the needs and wishes of the patient.

Although anyone may recommend either themselves or someone else

for assistance by Lanna Care Net any support they give has to be with the permission of the client and all activity must be undertaken on con-fidential basis. If you, or someone you know, could benefit from their services and is resident in Northern Thailand, please contact Lanna Care Net. They can be contacted by e-mail at [email protected] or by telephone on 085 709 8801.

There is a growing need for such organisations throughout Thailand due to the ever increasing number of foreign retirees. Although the driving force behind Lanna Care Net is British and American, LCN cares for all foreigners. In just one year of operation LCN has discov-ered many individuals who would desperately required help and as-sistance. The people working within LCN have received great satisfaction from this work and as the organisa-tion becomes better known with in the Thai and expat communities more cases are being discovered each week.

It would be very surprising if such organisations were not needed else-where in Thailand. We need to re-member that the Thai government cannot offer health or other assistance to foreigners who must provide for themselves. Sadly, sometimes this is not possible. When such cases arise the embassies and consulates are not normally able to assist. If you think you would like to help form an organ-isation such as Lanna Care Net then telephone the number above or sug-gest the need for such an organisation to the British Embassy, which is aware of the activities of this organisation.

Grant Thornton UK aids post-Olympics evaluation Grant Thornton UK has been

selected by the Government Olympic Executive (GOE),

a unit within the Department of Culture, Media and Sport (DCMS), to help assess the impact and legacy from the 2012 Olympic and Paralympic Games.

A press release issued by Grant Thornton Thailand stated that ‘the meta-evaluation is arguably the first truly comprehensive evaluation of an Olympic Games and will enable UK’s Government to understand and demonstrate the long-term impact of the Games to help ensure cur-rent and future programmes provide value for money. It will pull together the results of evaluations of individ-ual legacy programmes, projects and initiatives, and use these along with

additional research to evaluate the overall legacy of the Games. It will aim to address overarching questions such as the impact of the Games on the UK economy and on the uptake of sport’.

Project leader is Stephen Gifford, Grant Thornton UK Chief Econo-mist. He said, “Completing the me-ta-evaluation of the 2012 games is a huge task. We broke the project down to four themes; sport, econ-omy, community engagement and regeneration and four impact areas; geography, diversity, outcomes and value for money. From this we were able to build our framework for the project. There are a number of chal-lenges to this evaluation not least the interdependency of different proj-ects and the challenge of separating

games investment from existing re-generation projects.”

A post Games initial evaluation will be published in 2013. Further re-search will be commissioned sepa-rately to look at the effect of the Games up to around 2020.

Ian Pascoe, Managing Partner of Grant Thornton Thailand, said: “It’s more often the case that developed economies will have the venues, transport and technology infrastructure already in place for any major event. Capital investment required to build new infrastructure is therefore much more limited in these economies, compared with the level of investment required in emerging markets such Thailand, or Brazil – the host for the next Olympic Games.


Better news from IATAbut margins remain tight

The International Air Transport Association (IATA) has an-nounced an upward revision to

its global aviation outlook for 2012. The fall in airline profits from the US$8.4 billion that the industry earned in 2011 is set to be cushioned by improved air-line performance.

Airlines are expected to earn US$4.1 billion in 2012 (up $1.1 billion from the $3.0 billion forecast in June). The revision will still see the industry’s net profit margins fall from the 1.4 percent realised in 2011 to 0.6 percent. In a look ahead to 2013 IATA sees global profits rising modestly to US$7.5 billion – a net margin of just 1.1 percent.

“The European sovereign debt crisis lingers on. China continues to mod-erate its growth and the impact of re-cent quantitative easing in Japan and the US will take time to yield growth. While some of these risks have dimin-

ished slightly over recent months, they continue to take their toll on business confidence. The outlook improvement is due to airlines performing better in a difficult environment,” said Tony Tyler (pictured above), IATA’s Director Gen-eral and CEO. “Even six years ago, gen-erating a profit with oil at $110/barrel (Brent) would have been unthinkable.

The industry has re-shaped itself to cope by investing in new fleets, adopt-ing more efficient processes, carefully managing capacity and consolidating. But despite these efforts, the industry’s profitability still balances on a knife-edge, with profit margins that do not cover the cost of capital.”

IATA’s outlook for Asia Pacific indicates that airlines based in this region will post collectively a US$2.3 billion prof-it for the year. With 40 percent of the global cargo market, the region’s carri-ers are the most exposed to weak cargo demand – and this demand for the first eight months of 2012 was down 6.6 per-cent compared to 2011.

“Aviation has an important role to play as the global economy struggles. Growth is the only way forward and a healthy avia-tion industry can stimulate that – link-ing stagnating developed economies to robust emerging markets,” added Tyler.

Qantas strikes global deal with EmiratesQantas is to end its joint

business agreement British Airways next March 2013

as it embarks on a new global partnership with Dubai-based Emirates.

The joint business agreement with BA was established in 1995 and resulted in the two airline’s sharing country offices, marketing and sale, airport lounges and ground handling.

The airlines will continue as partners in the oneworld alliance and bilateral codeshare agreements

will remain in place. Qantas chief executive Alan Joyce said, “Global operating conditions have changed and partnership with Emirates is the right strategy for Qantas.”

Willie Walsh (pictured left), CEO of BA parent group IAG, put on a brave face. He said, “We’re ending the joint business agreement on amicable terms and support Qantas’ decision to work with Emirates. The world has changed since 1995. This is a small part of our overall network and this move fits in with changes in our global strategy.”


Thailand’s post-flood rebound wins IMF praiseThailand remains one of the

world’s top investment des-tinations and continues to

receive accolades and high rankings from a variety of international organ-isations and rating companies, ac-cording to the latest update from the country’s Board of Investment.

Christine Lagarde, Managing Direc-tor of the IMF, reportedly described the post-flood rebound in the Thai economy as ‘a testament to the resil-ience of the Thai people’.

The IMF also states that ‘Thailand is one of the great development suc-cess stories. Due to smart economic policies it has become an upper mid-dle income economy and is making progress towards meeting the Mil-lennium Development Goals’.

The BOI bulletin reports that the Fiscal Policy Office at Thailand’s Ministry of Finance has forecasted Thailand’s economy to grow by be-tween 5.2 and 6.2 percent this year.

The BOI has extended the applica-tion period for its flood relief mea-sure for replacement of damaged equipment or new investment until 31st December 2012. This will allow more than 150 companies in Pathum Thani and Ayutthaya the time to ac-cess this incentive. As of 30th June 2012, 490 projects received approval for import duty exemption for ma-chinery replacement with the total value of Baht 108.65 billion.

The BOI Board has also revised pro-motional incentives for large-size motorcycle manufacturing projects. Previous BOI incentives were offered only to motorcycles manufactured with larger than a 500cc engine. This has now been reduced to engines with at least 250cc. The change in the

ing cooperation with other relevant government agencies and financial sectors for tax and financial support, training programmes on outbound investment for entrepreneurs and Thai employees as well as an informa-tion centre for overseas investment.

Thailand also continued to show im-provement in attracting foreign direct investment, moving up four places to an 8th place ranking in the UNCTAD World Investment Report 2012-2014. Among the ASEAN economies, only Indonesia ranked higher.

measure should support Thailand’s goal to become a manufacturing hub for big motorcycle exports.

BOI has also approved the Thai Overseas Investment (TOI) Plan with Indonesia, Myanmar and Viet-nam as target countries in ASEAN economies. India and China are also listed as important target markets with high potential for Thai’s over-seas investment.

Action plans have been approved to support overseas investment, includ-

Christine Lagarde, Managing Director of the IMF


MEMBER NEwS

Second export award for Bangkok Patana School Bangkok Patana School has

been honoured for a second time as a ‘Best Service Pro-

vider’ in the Prime Minister’s Export Award 2012. The award was pre-sented personally by Prime Minis-ter Yingluck Shinawatra. It is Thai government’s highest official award granted annually to Thai exporters of products and services in recognition of their high quality and standards.

Dr. Tej Bunnag, Chairman of the Bangkok Patana School Foundation Board, said, “It is a great honour to receive this prestigious award. We appreciate being recognised for the efforts we make and the ensuing success we achieve through our students. The award truly belongs to our teachers and students who, every day, strive for excellence, good character and to fulfil potential.”

The Prime Minister’s Export Award was founded in 1992. Bangkok

Patana School is Thailand’s original British International School, founded in 1957, and is governed by a

Pictured above (left to right): Prime Minister yingluck Shinawatra, Matthew Mills (Head of Bangkok Patana School), Khun Pornpimol Charoen (School Manager), Laura Stamp (Vice Chairman of the Foun-

dation Board) and David Humphreys (Foundation Board Member).

not-for-profit foundation board. The school has almost 2,200 students representing more than 60 nations.

Christian Zunk is the new General Manager of Anantara Golden Triangle Resort & Spa. He was previously Director of Operations at the Bangkok Marriott Resort & Spa in Thailand which was re-branded as Anantara Bangkok Riverside Resort & Spa in November 2011 and also worked as General Manager of Desert Islands Resort & Spa by Anantara with additional responsibility for the pre-opening phases of Al Yamm Lodge by Anantara and Al Sahel Lodge by Anantara, all located near Abu Dhabi in the United Arab Emirates.


BANGKOK PATANA SCHOOL CELEBRATES IB AND (I)GCSE ACHIEVEMENTS

Congratulations to the Class of 2012 on your IB results: The highest average points score to be recorded at Bangkok Patana to date (33.1

against a world average (WA) of 29.6) A mean grade of 5.4 in individual subjects (WA = 4.7) Three students scored 44 out of a possible 45 points 17% of Bangkok Patana students scored over 40 points (WA = 6%) 91% pass rate (WA = 80%) 22% of our students received a bilingual diploma

We wish the Class of 2012 the best of luck in their future endeavours.

Last year 184 of our students sat their (I)GCSE exams: 23.9% of grades awarded were A* (UK GCSE = 7.3%) 52.1% of grades awarded were A*- A (UK GCSE = 22.4%) 92.6% of grades awarded were A*- C (UK GCSE = 69.4%) All 18 candidates, who sat AS Maths a year early, achieved the top A grade 11 students, pictured above, were awarded eight or more A*s

Many congratulations to all our (I)GCSE students and we wish them the very best as they progress in their academic studies.

643 Lasalle Road (Sukhumvit 105)

Bangna, Bangkok, 10260 Thailand

Tel: +66 (0) 2398 0200 [email protected]

www.patana.ac.th


MEMBER NEwS

Advice for Thailand SMEs

Asia’s small and medium sized enterprises (SMEs) are thriving, benefiting from

strong economic growth throughout the region. But in an increasingly interconnected world, they are not immune to problems elsewhere, such as euro crisis.

Even for SMEs not directly exposed to European trade flows and/or currencies, there could be bottom line implications. The uncertain outcome of the crisis could lead to increased volatility in foreign exchange and commodity prices, both of which could impact SMEs involved in trade and manufacturing. Given these risks, it is important for all SMEs to have sufficient liquidity, including access to debt, to ensure business continuity in their operations.

SMEs are often an integral part of the supply chain of multinational compa-nies (MNCs). For larger medium sized enterprises, they may supply to or buy direct from the MNCs and for smaller businesses. They may also deal direct or through other companies, includ-ing other SMEs. If a MNC is head-quartered or based in Europe, then all SMEs in its supply chain are likely to feel the impact of the debt crisis.

The challenge is that MNCs literally ‘anchor’ the chain and often dictate buying and selling terms. During lean

lationships with the MNCs – many SMEs would rather end up absorbing the working capital impact than end-ing the erstwhile valuable relationship.

The irony is that SMEs are in fact in an inferior position to absorb these downstream macro effects and this consequently has a number of impli-cations for them:

• Reduced credit appetite from their banks due to their European expo-sure (in complete contrast to the generally positive impact this has for SMEs during better times)

• Increased working capital require-ments relative to the proportion of the impact they in turn can pass on to their customers

• Managing the lag between the im-pact of the changes and passing them on

• Reduced bank and country risk limits and/or increased pricing on solutions or products incorporat-ing these as risk mitigants

• Increased currency volatility that they may not be resourced for or experienced enough to deal with

• New or additional currency hedg-ing costs

• Credit insurance costs on counter-parties not considered as a default risk before

• Possibility of price increases for SME buyers or price reductions for

times, MNCs will need to balance their own survival and shareholder expectations with the longer term ob-jective of creating a sustainable and reliable supply chain.

It is no surprise then that some MNCs would need to shorten the credit terms extended to SME buyers and lengthen payment periods to SME suppliers (or perhaps completely can-cel orders) in order to reduce their own working capital requirements in the short term.

The downstream knock-on effect is clear when considering the significant reliance that SMEs place on their re-

Tim Hinton

A new website created to help pregnant expat women in Thailand features an advisory panel of gynaecologists from Samitivej Sukhumvit hospital.

The website, launched by Bangkok-based Bedside Media, is also providing a host of tips for new mothers.

More details at: www.expectingexpats.com.

By Tim Hinton


BCT looking for spirited castAuditions begin soon for next year’s Bangkok Community Theatre pro-duction of the classic Noel Coward comedy Blithe Spirit. BCT is seek-ing a cast of five women and two men to make up the cast of one of Coward’s most popular plays.

Characters can be played by any na-tionality and the roles range in size from cameo parts to lead roles. Good comic timing, a commitment to the rehearsal schedule and the right mix of characters will be most important in casting. Naturally, those chosen will be English speakers.

Coward, knighted in 1969, wrote Blithe Spirit in 1941 whilst work-ing for British Intelligence. He was initially denied a knighthood by Winston Churchill on account of his (Coward’s) flamboyant lifestyle. Coward loved Thailand and was a frequent guest at the Oriental Hotel. He died in 1973.

Auditions for Blithe Spirit are open to the general public and will be held at the British Club on 11 November from 1pm. More details from [email protected] or www.bct-th.org.

SME suppliers to MNCs• Need to consider diversifying their

reliance on a particular MNC or country but it is not a simple pro-cess to replicate a track record and long relationship

• It is difficult for SMEs to com-pletely stop one MNC relationship and start another. It requires over-lap and additional resources and time to pursue the new partner-ship while still relying on the exist-ing, possibly strained, relationship

Asian SMEs should assess their FX, interest rate and commodity exposures and review the different options avail-able in mitigating these risks. These can be in the form of FX forwards, in-terest rate/currency swaps, vanilla op-tions or commodity hedging solutions.With the help of treasury specialists, SMEs can mitigate some of these un-certainties in their operating costs.

SMEs should also analyse their ongo-ing business exposures to clients, in particular, those that are in or are deal-ing with Europe. Credit risk on receiv-able counterparties can be mitigated by taking appropriate insurance and working capital lines to support any lengthening of payment terms should be secured now rather than when the company has a cash crunch. Business-es often fail due to cash shortages and not because they are not profitable.

Surplus cash-flow can also be invested in less risky high investment grade bonds and/ or principle protected de-posits. SMEs who are concerned about maintaining cash-flow liquidity can also opt for loan-to-value investments, which allow them the option of drawing on the value of their yield enhancing in-vestments should the requirement arise.

There are different opinions on the ulti-mate outcome to the euro crisis and the extent to which it may affect businesses in Asia. However, there is no doubt that SMEs should be prepared and plan ahead, taking measured actions to en-sure their continued survival.

Marlon Hirsh is the new Resident Manager at the Shangri-La hotel, Bangkok. He was formerly Executive Assistant Manager – Rooms at Shangri-La’s Barr Al Jissah Resort and Spa in the Sultanate of Oman and has also worked in Manila, Singapore, Bali and Atlanta, Georgia.

Sir Noel Coward

Tim Hinton is Global Head - SME Banking at Standard Chartered Bank.www.standardchartered.co.th


What are your first impressions of Thailand?

Lots of adjectives are needed. Smiley, steamy, tasty, dynamic, colourful, contrasting, complex, adventurous, busy, and friendly. I’m going to love living and working here. There’s so much happening all the time.

What are the challenges in the education sector for Thailand?

The challenge for the international sector is to provide high quality programmes that allow each child to reach his or her full potential, both in terms of academic attainment and as a person. The global economy is hungry for bright young professionals who are able to adapt swiftly to change, assess needs and find innovative solutions. This requires a specially balanced range of opportunities.

MEMBER NEwS

well prepared

Harrow International School has opened its renovated Preparatory School building where pupils in Years 6-8 are now benefiting from the facilities for Art, ICT, Music and Performance. Pictured outside the building are, from left to right, Jonathan Horsnell, Head of Prep School, Michael Farley, Head Master - Harrow International School and Mathew Rees, Business Director.

Mick heads for HarrowAnyone who has met this fifty

year old racing a mountain bike on a Welsh trail or skiing

in Japanese powder snow would be surprised to learn that Mick Farley is a head master. Somehow he doesn’t quite fit the mould. If your stereotypical head master is a stuffy traditionalist, prepare yourself for something different. Mick has energy, ideas and sparkle.

Harrow International School’s new Head Master hails from the UK’s beautiful Peak District. He read Psychology at Nottingham and em-barked on several years of outdoor and adventurous activities instruc-tion before finding his way into teaching.

Mick was the founding Head Master of a school in Qatar before moving to The British School in Tokyo. During

his time in Japan a senior school site was added and much was done to improve both teaching and learning and crisis preparedness – work that proved invaluable during the earthquake and tsunami in March 2011.

“Harrow is a vibrant, happy and high achieving school that is blending the best of the UK independent sector with high quality British International education. In 15 years of headship I haven’t met a harder working or more professional staff and the students are a pleasure to work with,” says Mick Farley.

“The School’s foundations are very strong. I’m looking and listening in order to settle on the priorities for further development. We need to make better use of our unique lakeside setting and spacious environment.” Mick Farley


Proms night wins backing from Rolls-Royce

Shrewsbury International School has won backing from Rolls-Royce for this year’s ‘Last Night

of the Proms’ in Bangkok. The con-cert takes place at the school on 1st November when conductor John Moore takes the baton. Mr Moore, Director of Music at Shrewsbury School in the UK, is also a guest con-ductor with the Eighteenth Century Concert Orchestra and Chorus. This year’s Proms concert features music from stage and screen. The programme has yet to be finalised but is likely to include The Forrest Gump Suite by Alan Silverstri, Send in the Clowns by Stephen Sond-heim, The Theme from the Magnifi-cent Seven by Elmer Bernstein and the Waltz from Tchaikovsky’s Swan Lake.

Now in its sixth year, the Proms con-cert is designed to support the devel-opment of young musicians in Thai-land. The concert offers students

The orchestra leader is 17-year-old Shrewsbury music scholar and lead violinist Runn Charksmithanont.

The concert is preceded by cocktails and a buffet dinner in the grounds of the school on the banks of the Chao Phraya river. The concert attracts music lovers from a broad cross-sec-tion of the local and international communities and the audience this year will include the school’s new Headmaster Mark Turner.

Rolls-Royce is lead supporter for this year’s event, reflecting the com-pany’s long-standing commitment to Thailand through investment, innovation and education. The company has enjoyed a presence in Thailand since 1989 and has estab-lished a strong position in each of its global markets - civil aerospace, de-fence aerospace, marine and energy.

More details: [email protected] or call 02 675 1888.

an opportunity to play as part of a full symphony orchestra with pro-fessional musicians. At the heart of the Shrewsbury Proms orchestra are music scholars studying at Shrews-bury International School as well as talented students from other schools such as The Regents Bangkok.

NIST has kicked off its 20 year celebrations with a birthday party that included students creating an impressive live portrait and students signing ‘Happy Birthday’ in nine different languages - Japanese, German, French, Spanish, Mandarin, Korean, Hindi, Dutch and Hebrew.

John Moore takes the baton


IPSEF heads to Hong Kong

Presidential event at Madame Tussauds

Hong Kong is to host the International and Private Schools Education Forum

in November. The event, which also runs in London, Dubai and Malaysia, will feature a session on how schools and investors work with governments and regulators.

“This is an essential element for any operator looking to expand into a new territory”, said Rhona Greenhill, Director at event organiser Method International.

“‘Governments around the world are increasingly facing demands

Madame Tussauds Bangkok has added to its impres-sive display of world lead-

ers with the unveiling of Indonesia President Sukarno. Guest of honour at the ceremony was the President Sukarno’s daughter Megawati, who served as the nation’s fifth leader from 2001 to 2004. She was Indo-nesia’s first female president.

Former President Megawati (pic-tured right) donated her father’s traditional songkok cap to Madame Tussauds to help to create a sense of authenticity. The initial approach to the Sukarno family was made by the staff working at the Jakarta office of the Tourism Authority of Thailand.

President Sukarno, who died in 1970, led his country’s fight for in-dependence and served as Presi-dent from 1945 to 1967 when he

from new operators to set up in their markets and their responses, understandably, are different as each country has its own legislative and cultural environments,” she added.

Other themes to be discussed in Hong Kong include curriculum choices, school design and project management, teacher recruitment, and education as an investment. Planned school visits include a tour of the new Harrow School in Hong Kong. One of the forum moderators is Dr Mark Hensman, COO of Harrow Asia Management Services Ltd.

is significant because all eyes are on ASEAN ahead of AEC 2015.

“We are greatly honoured to be hosts to the new statue of President Sukarno, one of the most important regional and international leaders, who had a profound influence on the development of not only Indo-nesia but the region as a whole,” Mr. Pidgeon said.

“By bringing together world lead-ers, celebrities, newsmakers and other famous people in our wax ex-hibits, Madame Tussauds Bangkok has become a pivotal tourism at-traction which combines entertain-ment with education and provides a valuable, and value for money, ex-perience for the whole family.”

Madame Tussauds is part of the UK-based Merlin Entertainments Group.

was stripped of his title and placed under house arrest.

Bret Pidgeon, General Manager of Madame Tussauds Bangkok, said the timing of the Sukarno unveiling

MEMBER NEwS


Etihad Airways has begun a daily nonstop service between Abu Dhabi and Ho Chi Minh, offering a two-class service on an Airbus A330-200. The air-

line has been operating a codeshare service with Vietnam Airlines to Hanoi and Ho Chi Minh City via Bangkok.

Etihad president and CEO James Hogan told media, “The new air services to Ho Chi Minh City are set to meet growing demand from Vietnam’s rapidly expanding economy and will support the country’s increasing commercial ties with the United Arab Emirates and in particular Abu Dhabi.”

Etihad operates three flights daily in each direction between Bangkok and its Abu Dhabi hub.

Etihad bypasses Bangkok with direct service to Ho Chi Minh

Pachyderm polo tournament isjumbo fund raiser in Hua Hin

The annual King’s Cup Elephant Polo Tournament in Hua Hin has become one of Thailand’s

biggest and most successful charity events. The auction at this year’s gala dinner raised THB 3.3 million. Total funds raised over the past 11 years have now reached US$600,000. Forty two street elephants took part in this year’s tournament, receiving essential vitamin supplements and full veterinary checks and care for the duration of the event.

Lead sponsors for this year’s King’s Cup were Audemars Piguet, the Tour-ism Authority of Thailand and Anan-tara Hotels, Resorts & Spas. A high-light of this year’s tournament was a match between the New Zealand All Blacks and Miss Tiffany Thailand – the popular trans-gender cabaret show.


PERIOD2012

Q1 Q2 Jun July yTD

Private Consumption Indicators

Real Value Added Tax Collecton (%yoy) 12.0 6.3 10.1 18.8 10.3

Imports of Consumer Goods (%yoy) 14.1 7.5 4.1 11.2 10.9

Passenger Car Sales (%yoy -5.4 77.0 84.2 99.6 41.5

Motorcycle Sales (%yoy) -0.6 4.4 -4.2 6.1 2.6

Consumer Confidence Index 65.3 67.7 68.5 68.2 66.8

Private Investment Indicators

Machinery sector

Imports of Capital Goods (%yoy) 11.0 22.0 8.8 34.1 19.0

Commercial Vehicle Sales (%yoy) 33.5 62.3 68.3 65.5 49.1

Construction sector

Real Estate Tax Collecton (%yoy) 4.7 23.7 45.1 2.5 13.8

Cement Sales (%yoy) 5.3 5.2 7.7 12.9 6.4

Major Export Markets (quarterly yoy change)

Total Export value (Quarterly yoy change) -1.4 2.0 -2.3 -4.5 -0.4

1. China (12% total exports) 1.4 13.7 3.1 -7.5 0.5

2. Japan (10.5% total exports) -6.3 -1.2 -1.9 -3.5 -3.9

3. US (9.6% total exports) 2.1 4.6 3.1 2.3 3.0

4. Euro Area (9.4% total exports) -16.9 -7.5 -17.6 -21.4 -13.8

5. Malaysia (5.6% total exports) 4.7 0.8 -12.1 -20.1 -0.6

6. Singapore (5.1% total exports) 2.7 1.0 2.6 -25.4 -2.4

7. ASEAN-5 (16.9% total exports) 4.8 6.8 0.2 -11.9 3.2

Supply Side Indicators

Manufacturing Production Index (%yoy) -6.8 -1.5 -9.5 -5.8 -4.5

Agricultural Production Index (%yoy) 2.7 2.4 5.7 15.3 4.1

Number of In-Bound Tourists (%yoy) 8.1 10.0 11.1 4.6 8.3

Macroeconomic Stability Indicators

Internal Stability Indicators

Headline Inflation (%yoy) 3.4 2.9 2.6 2.7 2.9

Core Inflation (%yoy) 2.7 2.0 1.9 1.9 2.3

Unemploymetn rate (% of total labor force) 0.7 0.9 0.7 n.a. 0.8

External Stability Indicators

Current Account Balance (Billion USD) 0.6 -2.5 0.6 n.a. -1.9

International Reserves (Billion USD) 179.2 174.7 174.7 175.4 175.4

This month’s By the Numbers updates the Thailand Statistics presented in the January 2012 edition of The Brief,

with month-by-month figures for August 2011 through July 2012. The attached table of Economic Trends indicates, for the first two quarters of 2012 and for June and July 2012 with year-to-date, the trends for key indicators.

For private consumption the main stimulus has been sales of passenger cars, heavily influenced by the government first car buyer scheme al-though the same trend is also evident for com-mercial vehicles. Imports of capital goods have been influenced by flood damage replacements.

Export performance displays a worrying trend with marginal decline compared with 2011. The Euro area predictably is in decline as is Ja-pan, with China and ASEAN growth unable to compensate for shortfalls in other major mar-kets. Manufacturing production is experienc-ing continuous decline whereas agriculture is achieving modest growth. Tourism is perform-ing well. Overall, macroeconomic stability is being maintained, with inflation held in check and employment at high levels.

Chamber Events

By the Numbers

Director, Dataconsult Ltd.Chris Bruton

Dataconsult

Item Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug

Production Indicators

Agricultural Production Index (y-on-y %) 15.3 5.7 5.3 -3.3 0.7 5.2 2.3 8.4 -3.1 2.4 0.1 -0.4

Manufacturing Production Index (y-on-y %) -5.8 -9.5 6.1 0.0 -2.7 -3.2 -15.0 -25.3 -47.2 -30.1 -0.3 6.8

Industrial Capacity Utilisation (%) 66.8 66.3 68.7 58.8 67.2 62.3 58.3 51.9 40.5 46.5 65.5 65.0

Key domestic product sales

Electricity (KWH bn.) 14.42 14.18 14.93 13.86 14.61 13.11 12.56 11.44 11.72 12.60 13.43 13.76

Benzene/gasohol (mn. litres) 438.74 490.10 441.65 456.35 513.32 471.37 482.63 446.84 404.73 418.44 408.17 620.18

Beer (mn. litres) 149.11 143.85 156.08 152.73 191.67 163.89 154.04 183.45 162.14 114.14 155.68 129.64

Soda / soft drinks (mn. litres) 58.10 55.12 69.32 61.86 70.77 63.34 58.07 69.55 42.44 29.79 44.52 45.29

Passenger cars (000 units) 54.24 49.90 46.76 37.00 29.80 26.27 22.40 16.95 9.79 16.56 35.81 33.02

Motorcycles (000 units) 210.60 202.93 200.80 168.30 202.13 183.08 173.51 133.82 52.28 63.74 168.78 182.87

Commercial vehicles (000 units) 58.00 56.85 56.15 43.56 62.77 53.69 50.34 23.00 4.64 16.76 39.17 41.49

Cement (mn. metric tonnes) 2.63 2.61 2.70 2.29 2.70 2.53 2.49 2.36 2.07 2.12 2.32 2.41

Passenger cars (y-on-y %) 99.6 84.2 137.5 23.4 -3.3 -4.0 -9.8 -28.1 -62.1 -38.8 29.6 26.4

Motorcycles (y-on-y %) 6.1 -4.2 14.7 4.2 -1.2 6.3 -7.1 -21.7 -11.0 -4.3 11.4 15.9

Commercial vehicles (y-on-y %) 65.5 68.3 85.8 35.2 36.7 33.4 29.1 -46.9 -71.5 -41.8 25.7 15.7

Cement (y-on-y %) 12.9 7.7 3.1 4.7 4.6 4.5 7.1 6.3 -0.3 11.7 12.3 15.3

Producer / Consumer Price Indicators

Producer Price Index 138.1 138.1 139.9 140.4 139.9 139.8 138.8 138.0 138.4 138.4 139.1 138.4

Change (m-on-m %) 0.0 -1.3 -0.4 0.4 0.1 0.7 0.6 -0.3 0.0 -0.5 0.5 0.9

Change (y-on-y %) 0.7 -0.4 1.2 0.8 1.8 1.8 3.6 4.5 3.5 4.2 5.6 6.0

Construction Materials Price Index 125.1 125.5 125.4 125.4 124.4 123.6 123.1 123.1 122.9 121.9 120.8 120.9

Change (m-on-m %) -0.3 0.1 0.0 0.8 0.6 0.4 0.0 0.2 0.8 0.9 -0.1 0.1

Thailand Statistical Update (September 2012)20112012

Source: Ministry of Finance: Fiscal Policy Office


20112012

Statistical sources: these statistics have been derived from the following official sources: Bank of Thailand, Ministry of Commerce, Ministry of Finance (Department of Customs, Fiscal Policy Office), Ministry of Industry, Board of Investment, Immigration Department, Stock Exchange of Thailand. The above statistics represent the principal economic indicators for Thailand, but the original sources provide much more extensive and detailed coverage of different aspects of the economy. Statistics as presented are, in most cases, provisional figures, which will be adjusted at a later date when final returns are available from the respective sources. While best efforts have been made to ensure accuracy, readers are referred to original sources for definitive statistics.

Note 1: month-by-month figures are updated as adjustments are made in the original statistical sources Note 2: up to December 2010, Index was 2000 = 100; From January 2011, Index is 2005 = 100

Item Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug

Change (y-on-y %) 3.6 4.5 4.3 4.8 4.5 4.8 4.6 6.7 7.3 7.2 5.8 6.3

Consumer Price Index (headline) (2007 = 100) 115.82 115.40 115.23 114.80 114.30 113.60 113.21 112.77 113.31 113.10 112.90 113.20

Change (m-on-m %) 0.4 0.2 0.4 0.4 0.6 0.4 0.4 -0.5 0.2 0.2 -0.3 0.4

Change (y-on-y %) 2.7 2.6 2.5 2.5 3.4 3.3 3.4 3.5 4.2 4.2 4.0 4.3

Core Inflation (2007 = 100) 108.3 108.3 108.2 107.8 107.7 107.4 107.3 107.0 106.9 106.8 106.8 106.6

Change (m-on-m %) 0.0 0.2 0.3 0.1 0.3 0.1 0.3 0.1 0.0 0.1 0.1 0.3

Change (y-on-y %) 1.9 1.9 2.0 2.1 2.8 2.7 2.8 2.7 2.9 2.9 2.9 2.9

Consumption & Confidence Indicators

Industrial Confidence Index 98.7 102.7 106.0 104.0 102.1 100.9 99.6 93.7 87.5 89.0 90.7 102.5

Business Sentiment Index 51.7 51.5 53.8 47.7 55.5 52.7 50.8 48.5 39.0 36.7 48.5 52.2

Private Consumption Index 146.7 146.0 150.0 143.9 145.7 147.1 140.7 140.6 135.0 136.6 139.9 141.7

Private Investment Index 241.4 239.7 239.6 234.9 227.9 217.3 198.2 185.6 191.0 203.7 209.0 207.0

Consumer Confidence Index 29.1 27.6 27.4 24.3 23.0 25.8 24.2 21.4 19.1 23.8 30.4 30.0

Fuel Prices

Benzene 91 (Baht per litre) 41.81 40.39 41.90 43.21 41.85 39.80 37.62 34.69 35.26 35.97 36.29 40.92

Diesel (Baht/litre) 29.74 29.58 30.51 31.99 32.12 31.31 30.45 29.12 28.88 27.83 27.99 29.51

Foreign Trade of Thailand: exports

Manufactured products (Baht bn.) 522.61 538.16 567.87 447.75 538.82 497.89 406.87 417.91 382.05 420.25 536.4 536.65

Agricultural products (Baht bn.) 52.53 39.48 51.31 44.22 46.71 53.78 46.56 52.53 54.53 61.84 54.46 64.11

Total exports (Baht bn.) 610.94 616.51 641.14 515.99 606.45 597.15 488.71 491.75 471.55 511.22 617.51 630.38

Total exports (y-on-y %) -4.5 -2.3 10.2 -2.0 -4.8 3.7 -2.6 -8.1 -12.9 -1.4 14.9 29.0

Foreign Trade of Thailand: imports

Consumer goods (Baht bn.) 52.16 48.07 53.70 43.71 51.17 48.38 46.61 49.87 45.93 39.14 46.85 47.99

Raw materials (Baht bn.) 397.1 382.22 402.26 354.89 421.65 348.27 290.46 327.23 297.53 307.54 348.46 400.13

Capital goods (Baht bn.) 161.88 156.58 162.56 150.72 172.14 141.87 126.93 125.89 114.38 115.03 114.69 156.33

Other Imports (Baht bn.) 62.41 54.34 84.51 61.69 110.81 48.93 66.08 107.08 64.67 92.42 128.41 80.48

Total Imports (Baht bn.) 673.54 641.21 703.03 611.01 755.77 587.45 530.08 610.08 522.51 554.13 638.40 684.93

Total Imports (y-on-y %) 21.3 20.3 22.7 19.8 24.5 18.5 16.9 19.1 16.9 18.2 21.3 22.8

Tourism Indicators

Suvarnabhumi Arrivals (000 persons) 1,203 1,080 1,021 1,110 1,221 1,187 1,236 1,101 730 917 1,029 1,109

Change (y-on-y %) 7.05 12.09 14.82 10.55 11.28 3.54 4.20 -4.82 -27.53 6.22 31.25 32.87

Nationwide Arrivals (000 persons) 1,799 1,624 1,523 1,659 1,906 1,839 1,944 1,775 1,214 1,409 1,490 1,721

Change (y-on-y %) 4.63 9.44 8.27 6.87 11.99 2.00 7.65 -2.47 -17.92 7.02 22.68 35.43

Hotel Occupancy Rate (%) 58.05 53.11 58.97 58.41 64.32 69.92 65.02 57.66 56.86 53.21 55.12 57.87

Commercial Banking Indicators

Loans (Baht billion) n.a 10,221.4 10,306.0 10,074.3 9,997.4 9,982.5 9,773.6 9,612.3 9,655.6 9,588.0 9,440.9 9,692.4

Deposits (Baht billion) n.a 9,017.2 8,702.8 8,553.2 8,424.1 8,132.1 8,038.5 7,936.9 7,864.7 7,839.2 7,614.1 7,723.8

Stock Exchange and Foreign Investment indicators

SET Index (1975 = 100) 1,199.30 1,172.11 1,141.50 1,228.49 1,196.77 1,160.90 1,083.97 1,025.32 995.33 974.75 916.21 1,070.05

Market Capitalisation (bn. Baht) 9,941 9,709 9,454 10,107 9,853 9,523 8,891 8,408 8,160 7,987 7,502 8,757

Foreign Purchase (bn. Baht) 149.31 136.26 159.77 132.66 182.15 192.20 122.01 99.09 108.97 128.04 113.15 165.33

Foreign Sale (bn. Baht) 149.02 141.92 174.51 131.48 148.79 145.77 119.03 87.08 121.55 97.24 129.65 207.37

Foreign Direct Investment (net, bn. Baht) n.a 23.31 39.23 22.57 43.01 28.10 16.70 43.70 48.46 26.42 28.07 15.67

Foreign Portfolio Investment (net, bn. Baht) n.a. 49.88 -27.58 20.07 33.80 124.93 39.89 13.76 -18.95 7.96 -33.25 -50.61

Board of Investment indicators

Applications (Baht bn.) 97.9 102.1 82.5 65.2 78.6 71.8 76.2 69.9 132.1 37.3 103.4 34.5

Approvals (Baht bn.) 70.5 40.1 88.8 26.5 124.2 37.5 21.2 56.0 114.6 4.4 4.9 4.2

Certificates (Baht bn.) 47.8 57.9 95.7 35.4 38.2 48.3 45.7 57.2 5.9 17.2 15.9 54.2

International monetary indicators

US$ / Baht (mid-rate) 31.65 31.65 31.34 30.89 30.69 30.73 31.58 31.21 30.95 30.89 30.42 29.88

£ / Baht (mid-rate) 49.36 49.24 49.87 49.50 48.59 48.55 48.97 48.66 48.94 48.59 48.04 48.91

Euro / Baht (mid-rate) 38.94 39.72 40.07 40.71 40.57 40.63 40.71 41.03 41.99 42.28 41.90 42.86

Japan (100) Yen / Baht (mid-rate) 40.07 39.92 39.31 37.94 37.20 39.23 41.04 40.10 39.93 40.26 39.61 38.74

Exports (f.o.b. US$ billion) 19.25 19.51 20.55 16.63 19.66 18.62 15.52 1580 1521 16.72 20.49 20.60

Imports (f.o.b. US$ billion) 18.76 17.86 19.98 17.36 21.06 16.57 15.00 17.45 15.07 15.90 18.84 20.24

Trade balance (US$ mn) 482.79 1,643.56 573.91 -734.43 -1,401.49 2,052.34 522.28 -1653.35 144.95 820.52 1,646.46 365.78

Current account balance ( US$ mn) 107.34 603.57 -1,539.96 -1,516.36 -1,521.77 1,091.86 980.83 483.27 -210.91 -141.21 -367.67 -1,036.17

Balance of payments ( US$ mn.) 514.90 518.60 -2,773.70 -1,008.20 766.40 2,081.80 -160.20 -1,029.00 -1,505.80 -1,885.90 -1,674.20 -556.30

Foreign currency reserves ( US$ bn.) 175.37 174.69 171.73 178.96 179.25 180.36 178.55 175.12 178.25 182.01 180.11 188.32


All the fun of the fair at Bangkok’s big British annual fund raiser

The British Community’s annual fund-raising blockbuster event for Thai charities takes place at Bangkok Patana School on Saturday 24 November. Ploenchit Fair has

long been a traditional day of fun for all the family and is well-established as a major event in the Bangkok social calendar. The first Fair was held in the British Embassy in 1957.

“Everybody comes to Ploenchit Fair. You are guaranteed to meet old friends and also make new friends. It’s a chance to find some bargains on our many stalls, enjoy the fabulous in-ternational cuisine and totally exhaust your children with the variety of attractions on offer,” says Carolyn Tarrant, President of the British Community Foundation for the Needy.

“Our varied entertainment programme on the big stage con-tinues throughout the day and into the evening. There are literally thousands of prizes to be won and, importantly, you go home rich in the knowledge that every baht that you have spent goes towards those less fortunate than yourselves.”

All-time favourites return to Ploenchit Fair this year including the HSBC Ferris Wheel, Carousel, Transpo’s giant Wave Slide, Shooting Gallery, Bungy Jump and the Water Roller Ball. The Nestlé Pirate’s Treasure Island - Health will be full of great priz-es and Castrol is providing games for all the family. The British Chamber will be manning their stall, the Grand Raffle, which this year will have 80 top prizes to be won including tickets to London!!

“Clown Eckie is always a favourite with the children and Bum-rungrad Hospital’s Father Christmas will be paying an early visit to the Fair,” adds Carolyn. “The ‘Petticoat Lane’ bazaar features some 60 shopping and services outlets as well as some of our charity stalls. Tesco is selling items from its ‘finest’ range and Boots is selling toiletries and cosmetics. There is always plenty to eat and drink at Ploenchit Fair and this year is no exception.

“This year we have a variety of tempting British and Asian foods. It will be hard to choose between Witch’s British fish and chips,


Staff from the BCCT office, with support from our members and friends in our extended community, manage the raffle stall at Ploenchit Fair. We are grateful for the prizes

donated each year for the grand raffle to the value of hundreds of thousands Baht – and there is still time to donate for this year’s Ploenchit Fair. Please contact the BCCT Deputy Director at [email protected].

You may purchase tickets prior to and during the fair. Last year’s raffle raised more than THB 800,000. BCCT has been involved in Ploenchit Fair for many years and it continues to feature as a highlight in the Chamber’s calendar and vocational skills proj-ects. Many Thai charities are supported every year.

More details: www.ploenchitfair.org

Please support the BCCT raffle

BCTFN has raised over 60 million baht at the Ploenchit Fair since 2000. This has enabled the Committee to support a vast range of diverse charity projects in all regions

of Thailand. The fundamental aim of BCTFN is to promote self-sufficiency and to improve the lives of the needy. The Committee never allocates cash but rather oversees projects personally and monitors progress on a monthly basis.

Projects include agricultural schemes, sanitation and irriga-tion, educational materials and equipment, medical equip-ment and training, fish and silk worms raising, assistance with HIV and Aids awareness programmes, rice banks and village weaving.

Outstanding work over many years

the Pie Factory, Flavours of India, Masala Art and Bistro 33 as well as some delicious Thai favourites. La Vanille is proving home-made ice cream and fresh fruit sorbets and joining us for the first time this year is Sunrise Tacos where you can enjoy ‘the best taco in town’ with a frosty margarita,” adds Carolyn.

“The Londoner Brew Pub makes its debut this year, selling a tempting range of cocktails. Tenderloins is selling premium beers and connoisseur wines. Paulaner offers ice-cold lager, Chang Beer is pulling the pints and there is also a Guinness and Kilkenny Bar.”

Ploenchit Fair would not be possible without the assistance of some 2,000 volunteers who work not only on the day but, in many cases, for some months in advance to ensure that it re-mains a successful fund-raising event. Vital, too, is the gener-ous support and assistance provided by more than 200 spon-sors, from multi-national corporations to individual donors.

“The British Community Foundation for the Needy would like to take this opportunity to thank each and every one,” says Carolyn. ”Please spend freely at the Fair, have a wonderful day and do not forget that every baht you spend helps someone in Thailand less fortunate.”

It’s worth noting that shopping bags and prizes may be de-posited at the left luggage area. ATMs and Standard Char-tered’s mobile bank ensure that you never run out of cash.

How to get there: Take the BTS Skytrain to Bang Na Station and use one of the free shuttle buses to Bangkok Patana School. Parking is available in the school grounds


Steve Eaton Sadly Steve Eaton, for so long a familiar

face in the BCCB having represented Frank Small and Associates, Asia Mar-

ket Intelligence and Synovate, at different times, passed away in Joondalup Hospital, Western Australia on 19th August 2012 after an unsuccessful battle with throat cancer.

I first met Steve when he was a young Brand Manager at Adams Foods in Leek (Staf-fordshire) in 1979. He was my client! Steve was working on the launch of Just Juice, a pioneer product as the first ‘Tetra-Brick’ 100 percent fruit juice launched in the UK. He also worked on Kerrygold butter and cheese. We became firm friends and spent many happy hours in the Jester at Leek, at the Friday of the Lord’s test match and at the Varsity match at Twickenham as I pro-vided ‘client service’ which he and his col-leagues appreciated greatly.

Steve moved on from Adams Foods to Shell Consumer Products in Chester in 1981 and was the Product Manager on many insec-ticide brands that Shell produced and he assisted many of his colleagues in other ar-eas of the business and on new brands that Shell was developing.

Steve suffered a brain haemorrhage while crossing a road in Amsterdam in the early

80s and was in intensive care for three weeks. The fact he survived was a miracle and only because when he was admitted to hospital a specialist was present and realised what had happened and operated immedi-ately to put a plastic tube into his brain to shore up the burst blood vessel.

Swampy, as he was better known by his friends in Bangkok, claimed he was never the same again as the drugs he had to take impaired his previously legendary drinking ability. I am sure many will be surprised to learn this! In 1988 Steve moved to Bangkok as he believed the future lay in Asia. Initially

he did whatever it took to make ends meet. He taught English and worked part time for Frank Small and Associates, writing reports which were always insightful and attracted many commendations from the clients. As the business grew he was taken on as a full time manager and continued in that organ-isation until 1993 when he moved to the newly started AMI (Asia Market Intelligence).

He worked his way up in AMI and in due course became General Manager, staying with the company until 2003 by which time it had become part of a global group Synovate.

There have been many tributes circulating amongst Steve’s friends in Bangkok at the British Club, where he was a stalwart mem-ber of the Gentlemen Spoofers, as Chairman for several years and the Balut Section. In fact he was the first club member to score over 160. My own memories are of a talent-ed man with a healthy disregard for author-ity, an amusingly cynical outlook on many issues, a great sense of humour (often dark), a cackling laugh and a complete disregard for political correctness. Above all he had a great grasp of the complexity of sales and marketing issues and a towering intellect. He will be sadly missed.

Peter Snell

OBITUARIES

Nigel Overy

Nigel Overy arrived in Thailand in De-cember 1952 to join Henry Waugh & Co Ltd, a member of the Jardine

Matheson Group, having completed his National Service in the Royal Navy. Ten years later he was posted to Singapore with the same organisation. In 1971 he left Jar-dines to join Anglo-Thai Limited to take up the position of General Manager, Thailand Branch, and also that of Chairman of the non-motor activities of Anglo-Thai.

In 1975 Anglo-Thai was taken over by Inch-cape Plc and became a sister organisation of the Borneo companies in Thailand. Both groups were involved in consumer and engineering goods distribution, insurance, shipping and travel, and consumer goods manufacturing; in addition Borneo was involved in airline handling and manage-ment, and pharmaceutical manufacturing; Anglo-Thai had an injection and blow-

moulding plastics plant, and a steel fabrica-tion operation.

He retired in September 1986 from his roles as Chairman and Chief Executive in Thailand. Nigel Overy also served for three years as non-executive Chairman of Inch-cape Thailand, four years as Advisor to

United Distillers, Pacific Region, and two years as Advisor for Thailand to Wimpey In-ternational.

Extra-curricular activities included service on Royal Bangkok Sports Club sub-commit-tees for rugby, cricket, and hockey; General Committee of the British Club in the 1950s; British Club Vice Chairman in 1975, Chair-man in 1976 and 1977; from 1971 to 1986 General Committee Member of the British Chamber of Commerce, serving as Chair-man or Vice-Chairman at various times; General Committee of the Bangkok Nurs-ing Home Association from 1986 to 2006, Vice-Chairman 1988 & Chairman from 1989 to 2004.

He was made a Commander of the British Empire in 1979 and received the Most Ex-alted Order of the White Elephant, 4th Class in 1986.


Chamber Events Chamber Events

Joint AustCham/AMCHAM/BCCT Eastern Seaboard Networking Evening17 August 2012

Third Thursday Networking Evening16 August 2012

The T3 – Third Thursday Social Networking at Manhattan Bar on 16th August was an enjoyable evening. A warm thanks to our sponsor JW Marriott Hotel.

On Friday 17th August BCCT joined hands with AMCHAM and AustCham for an Eastern Seaboard Networking Evening at Dicey Reilly’s, Pattaya Marriott Resort & Spa.

01 (from left to right)- Bruno Rotschaedl, JW Marriott - Simon Landy, Colliers/BCCT Chairman- Boyd Chongphaisal, GlaxoSmithKline (Thailand) Limited/BCCT Board Director- Simon Matthews, ManpowerGroup Thailand/BCCT Vice Chairman

02 (from left to right)- Jane Bailey, Equitech (Thailand) Ltd/BCCT Board Director- Rungnapha Kaewduangsri/Santa Fe (Thailand) Co., Ltd.- Matthew Silvester/Meinhardt- Rujureke Sakdapipanich/Meinhardt

Thank you to our sponsors and partners.

01 02

01 (from left to right)- Judy Benn, AMCHAM- Simon Landy, Colliers/BCCT Chairman- Dylan Counsel, Pattaya Marriott & Spa- David Bell, AustCham Board of Director- David Nardone, Hemaraj- Greg Watkins, BCCT

02 (from left to right)- Joe Barker-Bennett, Crestcom International, Ltd.- David Cumming, Amari Pattaya/BCCT Board Director

01 02


Chamber Events

European Networking Night3 September 2012

BCCT One Day Workshop 24 August 2012

On Friday 24th August, the BCCT Management Development Group organised a Thai language One Day Workshop on ‘Personality Development.’

On Monday 3rd September, BCCT and various European chambers of commerce joined hands with EABC in promoting the European Networking Night at the Eastin Grand Hotel Sathorn.

01- Khun Varitthorn Sreesai, Training Manager CB Academy

02- This one day workshop was well attended by BCCT members.


01 02

01 (from left to right)- John Svengren, EABC- Christopher Bruton, Dataconsult Ltd.

02- Guests network at the Eastin Grand Hotel Sathorn

01 02


Chamber Events

Jesters Care for Kids Pattaya9 September 2012

Special BCCT Luncheon (Bank of Thailand)4 September 2012

On 4th September Dr. Prasarn Trairatvorakul, Governor, Bank of Thailand was guest speaker at the BCCT Special Luncheon sponsored by Standard Chartered and HSBC at the Conrad Bangkok hotel. He shared his thoughts and insights on the strength of Thai economy and future development in Thailand’s financial system.

On 9th September BCCT Office, with support from Amari Orchid Pattaya, participated in the annual Jesters Care for Kids Fair in Pattaya. There were games, a variety of shows, raffles, food and drinks for children and adults to enjoy at the fair. The proceeds from this event will be channelled towards helping disabled, orphaned, abandoned and underprivileged children.

01- Fun for the children in Pattaya

01 (from left to right)- Dr. Prasarn Trairatvorakul, Governor of the Bank of Thailand- Simon Matthews, ManpowerGroup/BCCT Vice Chairman

02 - Children try their hands at electric buzzer challenge.

02 (from left to right)- Andrew McBean, Grant Thornton/BCCT Board

Director- Chris Thatcher, Anglo-Thai Legal/BCCT Board Director- Asdaporn Vanabriksha, HSBC- Dr. Prasarn Trairatvorakul

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- Simon Matthews, ManpowerGroup/BCCT Vice Chairman

- Keith De Vaz, Standard Chartered Bank- Boyd Chongphaisal, GlaxoSmithKline/BCCT

Board Director


Chamber EventsChamber Events

Third Thursday Networking Evening20 September 2012

BCCT Boardroom Briefing (Burma/Myanmar)10 September 2012

On 10th September Hazel Hector, Deputy Director, UK Trade & Investment (UKTI)’s Strategic Trade Directorate, was guest speaker at the BCCT Boardroom briefing at the Sivatel.

St Regis kindly sponsored the T3- Third Thursday Social Networking at Decanter on 20th October. It was a great night and well attended. Thank you to our sponsor for their support of this event.

01 (from left to right)- Holger Jakobs , St Regis- Greg Watkins, BCCT- Simon Matthews, Manpower Thailand/BCCT Vice Chairman

01- Hazel Hector, Deputy Director, UKTI’s Strategic Trade Directorate

02 (From left to right)- Brendan Cunningham, Robert Walters Recruitment (Thailand) Ltd.- Karen Kang, St. Regis

02- Greg Watkins (right), BCCT Executive Director, presents a gift to Hazel Hector.

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Joint AMCHAM/AustCham/BCCT Eastern Seaboard Networking Evening21 September 2012

Eastern Seaboard Evening Presentation (Taxation in Thailand)21 September 2012

On 21st September, BCCT Legal and Taxation committee held a seminar on Taxation in Thailand at the Amari Orchid Pattaya.

On 21st September the BCCT joint hands with AMCHAM and AustCham in organising the monthly Eastern Seaboard Networking Evening at Amari Orchid Pattaya.

01 (from left to right)- Picharn Sukpatangsee, Siam City Law Office Limited- Simon Matthews, Manpower Thailand / BCCT Vice Chairman

01 (from left to right)- Pichan Sulparangsee, Siam City Law Offices Ltd.- Stephen Frost, Bangkok International Associates Ltd./Chairman BCCT

Legal & Taxation Group- John Sim, MBMG Group/BCCT Vice Chairman & Treasurer

02 - All smiles on the Eastern Seaboard

02 The seminar was well attended by BCCT members.

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Joint BCCT/ ITCC Breakfast Briefing (Earthquake Risk)26 September 2012

BCCT Evening Presentation (SME Promotion)25 September 2012

On 25th September, Dr. Wimonkan Kosumas, Deputy Director – General of Office of Small and Medium Enterprises Promotion (OSMEP) was guest speaker at a BCCT evening presentation on the role of OSMEP.

On 26th September, Dr. Kit Miyamoto, CEO Miyamoto International, was guest speaker at a joint BCCT/ ITCC breakfast briefing at Swissotel Nai Lert Park. He Shared insights on ways to control seismic disaster in Bangkok, earthquake risk management, and the cost and benefit of retrofitting existing buildings.

01 (from left to right)- James Pitchon, CB Richard Ellis (Thailand) Co., Ltd.- Dan Harsono, Bank of Ayudhya Public Company Limited- Dr. Kit Miyamoto, Miyamoto International- Paul Scales, Pacific Investments PLC./ ITCC President- Pran Siamwalla, Bank of Ayudhya Public Company Limited

01- Chris Thatcher, BCCT Board of Director, presents a gift to Dr. Wimonkan

Kosumas on behalf of the chamber.

02 - Guests listen to the presentation from Dr. Kit Miyamoto

02 - Dr. Wimonkan Kosumas (third from left) is looking to build even stronger business

contact with BCCT members.

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Special BCCT Luncheon (Eurozone & ASEAN)28 September 2012

On 28th September, Lord Powell of Bayswater, KCMG, Co-Chairman of the UK Asia Task Force, was guest speaker at a Special BCCT Luncheon at the Landmark Bangkok. Lord Powell shared his thoughts on Eurozone developments and how the UK sees business opportunities in Thailand and ASEAN.

01- Simon Landy, BCCT Chairman, presents a gift to Lord Powell.

02 (from left to right)- Jonathan Fryer, Mazars (Thailand) Ltd.- Simon Landy, Colliers International Thailand/ BCCT Chairman - Lord Powell of Bayswater- HMA Mark Kent- Graham Balchin, Salamander Energy (E&P) Ltd.- Christopher Thatcher, Anglo – Thai Legal Co., Ltd./ BCCT Board of Director

01 02

Accredited and Affiliated with

10th Anni BKKPrep_The Brief_210x145mm_FCHP.indd 1 9/20/12 2:00 PM

Chamber Events


Comings and GoingsThe British Chamber of Commerce Thailand welcomes the following new members:

Aloft Bangkok - Sukhumvit 1135 Sukhumvit Soi 11, Sukhumvit RoadKlongtoey-nua, WattanaBangkok 10110T: +66 (0) 2207 7000F: +66 (0) 2207 7100Representative: Mr. Brendan Daly, General ManagerBusiness Activity: Hotel

Eastin Grand Hotel Sathorn Bangkok33/1 South Sathorn, Yannawa RoadBangkok 10120T: +66 (0) 2210 8100F: +66 (0) 2210 8399Representative: Mr. John Westoby, Regional Managing Director and General ManagerBusiness Activity: Deluxe hotel with 390 rooms, infinity pool, Italian, Chinese, all day dining restaurants, Executive floor / lounge, gym, 1,200 sqm of function space with direct access to the BTS at Surasak.

Imonit Trading Ltd. (Oversea Member)Mansley CentreUnited Kingdom CV379NQRepresentative: Mr. Ersin Nazif, Managing DirectorBusiness Activity: We manufacture and distribute mail room category products and protective packaging.

Oriental Residence Bangkok110 Wireless RoadBangkok 10330T: +66 (0) 2125 9000F: +66 (0) 2125 9111Representative: Mr. Patrick Schaub, General ManagerBusiness Activity: Hospitality

Reading Room Pte Ltd (Overseas member)21 Tanjong Pagar Road#04/01, Singapore 088444T: +65 (0) 6603 6020E: [email protected] Representative: Mr. Mark Kelly, Asia DirectorBusiness Activity: Reading Room is an award winning global digital communications agency. We have industry-leading skills spanning digital strategy, interface design, social media and technical development.

Rock n’ Rolla Corporation Co., Ltd.67/9, Dynasty ComplexLadprao, WangthonglangBangkok 10310T: +66 (0) 2955 9783F: +66 (0) 2460 0258Representative: Mr. Narongsak Thongvattanavanich, Co-Founder & DirectorBusiness Activity: We are one of the professionals in Concert and Music event promoting business as well as event organiser.

Sofitel So Bangkok2 North Sathorn RoadBangrak, Bangkok 10500T: +66 (0) 2624 0000F: +66 (0) 2624 0111Representative: Mr. Gilles Cretallaz, General ManagerBusiness Activity: Hotel

REjOIn

Reed Institute, The27 Soi SaengchaiSukhumvit Road Soi 38Bangkok 10110T: +66 (0) 2391 0107F: +66 (0) 2712 0565Representative: Mr. Ali Khakpoor, DirectorBusiness Activity: A multidisciplinary Special Educational facility, catering for the educational, behavioral, social and emotional needs of children and adolescents in Bangkok and SE Asia.

RESIGnATIOnS

1. A & C Associates Ltd. (Oversea)2. Aditya Birla Chemicals (Thailand) Ltd. 3. Briardene Asia Limited 4. C.A.T Accounting & Tax Co., Ltd. 5. Cross-Cultural Management Co., Ltd. 6. D Management and Consultancy Ltd 7. DHI Services (Thailand) Co., Ltd. 8. Fluid Asia Pacific 9. Gower Pensions Management Ltd.10. Katoen Natie (Thailand) Ltd.11. Katoen Natie Services (Thailand) Ltd.12. MSNA Ltd.13. Mufasa Co., Ltd.


Forthcoming eventsnOvEmBER

PLOEnCHIT FAIRDate: Saturday 24 November 2012Venue: Bangkok Patana School, Sukhumvit 105 (accessible from Bangna BTS station, shuttle buses depart from exit 1)

DECEmBER

BCCT AnnuAL CHRISTmAS LunCHEOnDate: Friday 14 December 2012Venue: Grand Hyatt Erawan

14. OGP (Oil Gas & Power) Consulting Co Ltd.15. One Stop Real Estate (Group) Co Ltd16. Oxygenholding Co., Ltd. (Bed Supperclub)17. President Park Group18. Select IT Co., Ltd.19. Six Senses Resorts and Spas

nEw COmPAny REPRESEnTATIvES

1. RAPP, changed from Mr. Neil Holt, to Mr. Weerapol Ruetrakul

2. TÜV Rheinland Thailand Ltd., changed from Mr. Arno Zimmer, to Mr. Stefan Heuer

3. KPMG in Thailand, changed from Mr. John Sim, to Mr. Ian Thornhill

4. Praputt Kamlang, changed from Mr. Jonathan Pereira, to Mrs. Phornsan Kamlang-ek

5. Swissotel Nai Lert Park Bangkok, A Raffles International Hotel, changed from Mr. Torsten Pinter, to Mr. Eric Piatti

6. TNT Express Worldwide (Thailand) Co., Ltd., changed from Ms. Toni Weber, to Mr. Alan Miu

CHAnGES OF COmPAny nAmE

1. DBM (Thailand) Co., Ltd., changed to Lee Hecht Harrison DBM

2. Estia Co Ltd., changed to Witch’s Group

3. Davis Langdon & Seah (Thailand) Ltd., changed to Langdon & Seah (Thailand) Ltd.

4. Thaitan Logistics Co., Ltd., changed to Albatross Logistics Company Limited

5. WPP Marketing Communications (Thailand) Co., Ltd. – Hill & Knowlton., changed to Hill+Knowlton Strategies Thailand

6. Sofitel Centara Grand Bangkok, changed to Centara Grand at Central Plaza Ladprao Bangkok

mEmBERS wITH nEw ADDRESSES

1. Asianet Insurance & Reinsurance Brokers Ltd.

Asianet House, 50/243 Moo 14, Bangna-Trad Road Bangna-Trad Soi 45,

ErratumIn the Events section of the last issue we printed an incorrect name for the Finnair Country Sales Manager in Thailand in the photograph above. The correct name is Khun Isaraporn Kongchana (third from right). We thank once again Finnair for its generous support of the event in Pattaya and we apologise to Khun Isaraporn for the error.

Bang Kaew, Bang Plee Samut Prakan 10540 Tel: +66 (0) 2728-4276 Fax: +66 (0) 2728-42782. DTC Travel Co., Ltd. 12/11, Soi Prompak, Sukhumvit 49 Bangkok 10110 Tel: +66 (0) 2392-1953, 2392-1958 Fax: +66 (0) 2392-19593. Forbears Freedom Wealth

Management Co., Ltd. 11th Floor, 253 Asoke Building Sukhumvit 21 (Asoke) Road Klongtoey-Nue, Wattana Bangkok 10110 Tel: +66 (0) 2664-4242 Fax: +66 (0) 2259-3611

4. Primus International Bangkok Limited

388 Exchange Tower Sukhumvit Road, Klongtoey Klongtoey, Bangkok 10110 Tel: +66 (0) 2663-4346-49 Fax: +66 (0) 2663-43505. School of Sound Recording 65-69 Downing Street Manchester M1 7JE, United Kingdom6. ScandMedia Corp., Ltd. 211 Soi Prasert-Manukitch 29 Prasert-Manukitch Road Chorakaebua, Ladprao Bangkok 10230 Tel: +66 (0) 2943-7166 Fax: +66 (0) 2943-7169


chair. In a move reminiscent of Harold Macmillan’s ‘night of the long knives’ in 1962, when he sacked seven Cabinet ministers in his summer re-shuffle, PM Cameron dumped Larry unceremoniously in favour of Freya, the fearsome tabby living next door with Chancellor George Osborne and his family. In a bid to avoid any feline anxiety a Downing Street spokesman described the new arrangement as a ‘job share’.

FINAL wORD

The wheels of justice in the UK have been turning somewhat strangely in recent weeks. It

started with the controversial remarks from Judge Peter Bowers at Teesside Crown Court when sentencing Richard Rochford for burglary.

Rochford, familiar with the hospitality afforded by the Her Majesty’s Prison Service, was facing another lengthy spell in chokey. But Judge Bowers, displaying remarkable tolerance and sensitivity to the criminal classes, handed down a suspended prison sentence telling him that ‘it takes a huge amount of courage as far as I can see to burgle somebody’s house. I wouldn’t have the nerve’. I think prison very rarely does anybody any good. I don’t think anybody would benefit from sending you to prison today’.

Prime Minister David Cameron was quick to respond. “Burglary is not bravery, it’s cowardice”, he told TV viewers. Law abiding citizens quickly made their feelings known to the Office for Judicial Complaints. Judge Bowers may yet face a period of contemplation in an inactive post.

The judge’s comments drew a furious response from David Hines, chairman of the National Victims’ Association. He asked, “What message does this send out to society. Burglars are going to believe that judges think they are courageous. This judge is on a different wavelength to everyone else.”

Reflecting perhaps on the words of David Hines, Judge Michael Pert was less sympathetic when sentencing

two burglars at Leicester Crown Court. Joshua O’Gorman and Daniel Mansell had been left nursing their wounds after homeowner Andy Ferrie blasted them with his shotgun as they attempted to burgle his isolated cottage near Melton Mowbray.

Replying to a defence lawyer pleading for leniency Judge Pert roared ‘if you burgle a house in the country where the householder owns a legally-held shotgun, that is the chance you take. You cannot come to court and ask for a lighter sentence because of it.’ O’Gorman and Mansell, who were out of prison on licence when they committed this latest offence, were sent down again – this time for four years.

Police had held crime victims Andy and Tracey Ferrie for 40 hours in custody on suspicion of causing grievous bodily harm. Prosecutors eventually saw sense and lifted the threat of charges against Mr and Mrs Ferrie, stating that they had acted in ‘reasonable self-defence’. With more than a tinge of irony the Ferries, fearing reprisals, packed their bags and headed for Australia.

By Dale Lawrence

Poor Judge of character

Larry fired after paw performance

David Cameron’s summer re-shuffle stretched beyond Cabinet and

junior ministerial posts. Larry, the Downing Street ‘chief mouser’ (pictured right), has been shown the cat flap after taking one cat nap too many.

The PM took action after spotting a mouse waltzing across the floor of the Downing Street study while Larry slept soundly in his usual

Judge Peter Bowers

Sarinthorn (Jyoti) SachavirawongDeputy Director

Sarinthorn (Jyoti) has several years of project management

experience in the public affairs, development and international relations fields in Asia and Australia. Her most recent assignment prior to joining BCCT was with the Events and Communications unit of the NSW Government in Australia. Other projects managed include the AusAID funded ‘Youth Ambassadors for Development’ in Thailand; the EU-funded ‘community centres for women empowerment’ in Malaysia, an international conference on ‘Migration and the Wealth of Nations’ and the associated Freedom Festival in Indonesia and, more recently, coordination of the independent election observation mission for the Thai general elections in July 2011. Jyoti’s primary responsibilities include membership and public relations, partnerships projects, publications including the Brief, BCCT website, social media and other communications channels.


Sivaporn PeungpianMembership and Website Co-ordinator

Sivaporn (Air) is our Membership and Website Coordinator and is your

first contact for membership matters. Khun Air is pleased to assist you with help in updating your company details, contacts and any changes of address. She is also able to assist with booking sponsored emails and the uploading of special offers and members and groups reports to the BCCT website.


Greg WatkinsExecutive Director

Greg has worked in Thailand for 21 years, the last 16 as BCCT Executive Director. He

is responsible for the overall day-to-day operations and development of the BCCT. Greg began his career with the Department of Trade and Industry in London and served in a variety of roles over seven years, including desk officer for Malaysia, Singapore, Brunei, Thailand, Burma, Cambodia, Laos and Vietnam. He was also secretary to the South East Asia Trade Advisory Group (SEATAG) and editor of the SEATAG bulletin. Greg also spent nine months in 1989 on attachment to the Commercial Section of the British Embassy in Bangkok. He moved to Thailand in December 1991 and spent five years as Marketing Director for Tara Siam, a business research organisation employing 50 staff before joining BCCT.


Kalyakorn MongkolchartEvents Manager

Kalyakorn joined the Chamber in September 2012 and is responsible

for all aspects of BCCT events and joint events. Members and BCCT groups wishing to propose speakers for BCCT events are encouraged to contact Khun Kalyakorn. She also coordinates the raffles for the BCCT Christmas lunch.


Gann KeerakachindaEvents Coordinator

Gann is responsible for all event registration, feedback coordination and networking events

matters. She is the contact for BCCT

Groups wishing to hold events or use the BCCT meeting room and will assist you with general membership issues.


Kingkaew PrihachindaFinance Manager

Kingkaew joined the Chamber as Finance/Accounting Manager in February 2011. Please

contact Khun Kingkaew for all matters relating to finance and membership pay-ment matters.


Cate-Gwynthyst SuphastianAdministrative Assistant

Khun Cate is our Administrative Assistant and your first point of

contact for queries on payments, receipts, invoices or other accounts matters.


Krit FongpitakDriver

Krit joined the Chamber in September 2004. He was previously the personal driver to the

President of the Netherlands-Thai Chamber of Commerce.

Somphong PuengpienMessenger

Somphong has general office duties and acts as mailing clerk, bill collector and messenger. He is the

longest serving member of the Chamber’s staff, having joined in November 1973.

British Chamber of Commerce Thailand

Bangkok Bank’s International Funds Transfer Service via Bualuang iBanking gives you the power to conveniently transfer funds online anytime to recipients across the world.

Cost effective: Our base transfer fee is just 300Bt per transfer. Choose your fee: Elect to pay Bangkok Bank’s sending fee only (300Bt) or pay both Bangkok Bank’s sending fee and the overseas banks’ receiving fee (1,050Bt). Free SMS/e-mail notifif ication: Activate a free notifif ication from the bank conf irming your transaction. One time registration: No need to renew the service each year.

Worldwide money transferat your fififfiingertips

For more information, please contact any Bangkok Bank branch,call Bualuang Phone 1333 or visit www.bangkokbank.com/ibanking

H IGHER CONVENI E

NC

ELOWERFEES

The Brief, Issue 5/2012

Documents

Transcript of The Brief, Issue 5/2012