Advance-April 2013

A MONTHLY PUBLICATION OF THE AUSTRALIAN-THAI CHAMBER OF COMMERCE IN PARTNERSHIP WITH THE AUSTRALIA THAILAND BUSINESS COUNCIL www.austchamthailand.com April 2013

Australia’s Largest Automotive Components Supplier in Thailand in this edition

Thai Property Market Outlook Board of Directors for 2013/14 Business brief Embassy News board of directors Planning for a Blue-collar Australia: Annual General Meeting (AGM) and Australian Minister for Foreign Will Labor’s Job Package Deliver? Board of Directors for 2013/14 Affairs visits Bangkok

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chamber events AustCham Sponsor Siam Winery Launches Berri Estates Wines

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Contents PATRON His Excellency James Wise Australian Ambassador to the Kingdom of Thailand PRESIDENT Leigh-Scott Kemmis DBM (Thailand) Ltd. VICE PRESIDENTS Jason Ellis BlueScope Steel (Thailand) Limited

6 business briefs 6 Australia’s Largest Automotive Components Supplier, Futuris, Booming in Thailand 8 Planning for a Blue-collar Australia: Will Labor’s Job Package Deliver?

10 Rates of Attrition 11 Thailand in Global Top Ten of Car Production 12 Thai Property Market Outlook 14 Australian University Takes Home Bangkok Business Challenge Prize

chamber Events 28 AustCham Sponsor Siam Winery Launches Berri Estates Wines 29 Eastern Seaboard Sundowners 29 Global Market Update by Australia’s ANZ Bank 30 Bangkok Sundowners at the Grand Hyatt Erawan

Belinda Skinner Top TalentAsia TREASURER Warwick Kneale Baker Tilly Thailand Limited DIRECTORS David Bell Crestcom-Ra-Kahng Associates Ltd. Josh Hyland AEC South East Asia Co., Ltd. Brenton Mauriello dwp Alan Polivnick Watson, Farley & Williams (Thailand) Limited

Embassy news 16 Australian Minister for Foreign Affairs visits Bangkok 17 English Language Training Shared with Thai Teachers 17 Thai Women’s Access to Justice

Rananda Rich Blackmores Ltd. Pratamaporn Svasti-Xuto Australia and New Zealand (ANZ) Banking Group Ltd.

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Austcham board of directors 18 Annual General Meeting (AGM) and Board of Directors for 2013/14

Community services 26 Voluntary English Teaching at Baan Khao Huay Mahad School, Rayong 27 Community Services Sponsor – The Beaumont Partnership Foundation

M.L. Laksasubha Kridakon Baan Laksasubha Resort Hua Hin

members’ changes 32 Changes of Member Companies’ Representatives

From the Chamber Office 33 Message from the Executive Director

Cover: Local workers at Futuris Thailand’s factory with their operations.

Charles Wrightman Natural Ville & Lenotre EX OFFICIO Greg Wallis Senior Trade Commissioner, Thailand COORDINATORS Paul Wilkinson JVK International Movers Ltd. ESB Coordinator Email: paul.wilkinson@jvkmovers.com Trevor Dick Indochine Asset Management ESB Coordinator Email: trevor@indochine-asset.com

From the Board

President’s Message Harry Usher Lady Pie Phuket Coordinator Email: phuket@austchamthailand.com Australian-Thai Chamber of Commerce 20th Floor, Thai CC Tower 889 South Sathorn Road Bangkok 10120 Tel.: +66 2 210 0216 Fax: +66 2 675 6696 office@austchamthailand.com www.austchamthailand.com

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am honoured to serve as the chamber’s president for the 2013 year and look forward to working with the newly elected board of directors, the very capable and hardworking AustCham staff and of course the most important group, you the members.

Editorial Committee Belinda Skinner, Domenica Agostino Marketing & Production Scand-Media Corp. Ltd 4/41-42 Moo 3, Thanyakarn Village Ramintra Soi 14, Bangkok Tel.: +66 2 943-7166/8 Fax: +66 2 943-7169 scandmedia@scandmedia.com Advertising Finn Balslev Email: finn@scandmedia.com Contributions to Advance magazine are welcome. Please submit content to domenica@austchamthailand.com by the first day of the month for publication in the following month’s magazine.

Opinions expressed in Advance do not necessarily reflect the views of the Chamber.

AustChamThailand Advance

The new board is very well balanced representing the full spectrum of Australian business in Thailand from large organisations to SMEs and a mix of new and experienced directors representing various major industries, interests and outlooks that should make 2013 a very productive and effective year for the chamber. The value proposition for our members is always the primary focus of the board and the new board is well equipped to further improve on that value proposition.

The last two years under the leadership of John Anderson and supported by our very effective executive director Mark Carroll has been a period of good progress for AustCham and this sets a very high bar for the new board to scale. A challenge I know they are all looking forward to and determined to meet. A very special thanks to our outgoing president John Anderson; John we will miss your wisdom and leadership.

As to the bigger picture the recent announcement by the Thai Government of a two trillion baht investment in infrastructure projects is of considerable interest to members and we will need to quickly figure out how to assist you in understanding where and how you can participate in this opportunity. Of course this is also happening against the back drop of the cost and hence productivity pressures that are confronting us all which will also need focus.

The chamber is able to operate through a combination of contributions including the very important support from our sponsors.

We are very grateful indeed to all of our sponsors that you will find listed on all AustCham communications and signage. Please wherever you can support them by supporting their products and services.

April is a challenging month as we dodge the deluge of water thrown our way along with the rising heat. To help prepare, the ThaiCanadian Chamber of Commerce will host a Joint Chamber Songkran Networking event on Thursday 11 April. Of course our own Sundowners will be held at the VIE Hotel on 3 April. Immediately prior to Sundowners we’ll have the opportunity to hear a debrief from Ambassador James Wise on his recent ‘roadshow’ around Australia to promote Australian business in Thailand. Those at the AGM will recall the preview he gave of his presentation. The local Australian view of Thailand opportunities and what, if anything, they are likely do about those opportunities is of great interest to us all.

I’ll be proudly representing AustCham this year at the ANZAC Day commemorations in Kanchanaburi. Our esteemed friend and highly-decorated veteran Barry Peterson will again this year assist in laying the AustCham wreath at the formal ceremony in Kanchanaburi town. I hope to see some of you there.

Leigh-Scott Kemmis President, AustCham Thailand www.austchamthailand.com

April 2013

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business brief

Australia’s Largest Automotive Components Supplier, Futuris, Booming in Thailand

By Ian Porter

face to face on their first day in the business so I can tell them what we think is important about working for Futuris.

“First and foremost it is about safety and well being. Secondly it is about having a strong team and third it is about the quality of what we do.”

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t is the stuff corporate dreams are made of. Build a factory in 2011, run out of space, build a second factory next door and then win enough contracts to force the construction of a third plant by the end of 2014.

That’s the story of Futuris, Australia’s largest automotive components supplier. Except that the strong growth the company is enjoying is not happening in Australia, it’s in the company’s Thai operations. According to executive general manager of the Thai operations, David Chuter, business in the South East Asian nation is thriving, with a growing base of local workers. “We opened this building in 2011, not that long ago, 18 months.

The second building is already open and is filling quickly,” he said “We have about 830 employees, including 100 staff. Of those the majority are Thai. There are only three expats here, although there is a constant flow of people from Australia.”

Thailand is not the company’s first overseas factory since directors decided in 2005 the company had to go international to survive. First, the automotive interiors and seating company went to China, building a plant right across the road from what was then a small producer named Chery. It now has five other plants in China, servicing JAC, GAC GoNow and Brilliance, among others. It also has a joint venture in South Africa servicing BMW and Mercedes-Benz and small in-factory operations with Tesla and Fisker in the US. Futuris now has a total of 1800 employees around the world, with more than 800 in Thailand, about the same as in Australia.

Mr Chuter said Futuris first set up in Thailand to supply seat covers for Australia.

“That was a valuable learning experience because it taught us how to employ people in Thailand and all about labor rela-

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tions,” he said. It turns out that, after the Asian financial crisis, Thailand adopted Australian-style corporate governance and labor relations laws. The rest of the story, he said, resembled the theme of the Kevin Costner film Field of Dreams: “build it and they will come”. “Once we had representation here, established customers (in Australia) came knocking,” he said.

Relying heavily on its research and development base in Australia, Futuris was able to win contracts to provide seat frames and seat covers for the GM TrailBlazer, known as the Holden Colorado 7 in Australia, and for the Ford/Mazda joint venture (Auto Alliance Thailand) that builds the Ford Ranger and Mazda BT-50.

“A year ago, we had just over 200 employees, so we have added 600 employees in the last 12 months. That was largely May/June last year, when we had all the new product launches here.

“Production started for the Ranger/BT50 and production started for the Colorado and we brought all these people in,” Mr Chuter said. The induction and training of the new employees has been a strain, but Mr Chuter says Futuris insists on a comprehensive induction. “I try to meet every new employee that comes in here. Clearly I don’t speak Thai, so there is always a barrier, but I try to meet every employee

Mr Chuter said safety was a high priority when operating in Asia because there is such a big difference in attitude to safety between Australia and many Asian countries. “When you travel around Asia, it’s a different world in terms of the risk out there every day that people live in. “You probably saw on the freeway 10 people on the back of a pick-up truck. So then, explaining to those 10 people when they walk in the factory doors that there is a different behaviour and culture we expect is a challenge in itself. “You have to be very clear that safety and well being are the absolute pinnacle of what we are trying to do here, because it also reinforces a culture of following rules and working as a team and identifying problems and identifying issues. “That flows through into how the business operates as a whole,” Mr Chuter said.

The issue of people getting to work also prompted the company to offer transport from nearby residential areas. Services like that and other working conditions virtually double the cost of each worker from the base daily wage of 300 baht or A$10 (that’s the new minimum wage introduced by the Thai Government in January), but Mr Chuter said it pays off in the long run.

He said it helped having long-established relationships back in Australia with GM and Ford when it came to winning new contracts in Thailand, although nothing was delivered on a plate.

For instance, Futuris initially won a contract for interiors for the Ford Focus, although it prefers to do the seats. “Our entry strategy was to do interiors and then

AustChamThailand Advance

business brief

very healthy excuse as to why they can’t use one of their long time suppliers and break a long term relationship. “We’re progressing well down that journey.” Mr Chuter said it made sense to be in Thailand because, after China, Thailand was the most accessible and fastest-growing market. “And it is the market where our biggest customers (GM and Ford) are making very significant investments.”

grow into seating. Now we have done that, we have secured contracts for future Ford models for seating. “And we are very well in the mix with a number of Japanese customers and have been invited to quote.”

Just being invited to quote is a big deal with the Japanese car-makers because they generally take their “keiretsu” suppliers with them. “We are down to the final stages of bid activity with some Japanese buyers, which is great news because the market here has always been dominated by the Japanese vehicle manufacturers and if you are going to be successful in Thailand, you need to find a way into supplying them as well.”

“Apart from Toyota in Australia, we don’t supply any of these others so you’ve got to really “wow” them and give them a very,

Mr Chuter said the Board of Investment wants more emphasis on design and development from the car and parts makers, and Futuris is well placed to meet that challenge. “Again, it’s a good fit with the Futuris strategy as a whole.” And he said Australian companies and executives need not fear being alone in Thailand, There are some Australian companies and many well-placed expats in the automotive industry. “Next door is MHG, another Australian company which makes plastic painted parts. Two minutes down the road is Harringtons, which makes metal pressings for the industry. “ARB has been here a long time. “Wherever you go you find Australians.” Trevor Negus, the manufacturing director at Ford Thailand, is ex Campbellfield. Sam Casabene, the purchasing director here in Asia for Ford is ex Ford Australia. “You can’t walk around this industry without seeing a lot of Australian capability here. I have to say you win business by being competitive, but having friends up here also helps.”

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April 2013

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business brief

Planning for a Blue-collar Australia: Will Labor’s Job Package Deliver?

By Professor Tim Mazzarol, The Conversation

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he Australian Government’s recently released Plan for Australian Jobs builds on some of the work undertaken last year by the Prime Minister’s Manufacturing Task Force and contains three core strategies of enhancing industry participation in major projects, boosting international competitiveness and growing the abilities of the nation’s small business sector.

The announcement was unfortunately crowded out by the media’s ongoing obsession with Kevin Rudd’s leadership ambitions and purported potential overthrow of yet another Labor Prime Minister.

Yet the plan seeks to address some very significant issues facing the future landscape of Australian industry, particularly our manufacturing sector and small firms.

Industry participation The first of the core strategies is a set of measures designed to enhance Australian industry’s participation in major projects, such as the liquid natural gas (LNG) construction work taking place in Western Australia and the Northern Territory.

Among the most significant of resource projects fuelled by Australia’s mining boom have been the Gorgon and Wheatstone LNG developments in WA. Sadly, much of the work in the construction phase of these projects has gone offshore. (Discussions I have had with key industry representatives suggest as much as 80% of Gorgon was sent outside Australia.) This is despite the presence of an Australian Industry Participation (AIP) National Framework, which has been in place since 2001. An agreement between federal, state and territory governments, AIP seeks to build up the capacity of Australia’s local industry, help identify opportunities at an early stage, promote local 8

April 2013

industry capacity, and facilitate industry partnerships in such projects.

There are also related programs such as the Enhanced Project By-law Scheme (EPBS) that enables major project leaders to access tariff duty concessions on eligible goods for major projects if they can demonstrate commitment to AIP and “full, fair and reasonable” opportunities for local firms. There is also the Supplier Access to Major Projects (SAMP) program that funds the state and territory based Industry Capability Network (ICN).

Established in 1997, SAMP assists Australian firms to secure contracts that might otherwise have gone offshore. Established in 1995, the ICN has offices nationwide and also offices in New Zealand.

It administers the SAMP and the online portal ICN Gateway. There is also the Buy Australian at Home and Abroad initiative, worth A$58.4 million with federal funding and commitments from major mining and energy firms. These firms also publicly express commitments to AIP and employ AIP consultants to help facilitate a local supply chain network. So one might ask why is there still a problem with local firms getting a share of these projects.

The jobs plan would see the AIP scheme

shift from an industry led initiative to a mandated one, requiring projects worth over A$500 million to submit AIP Plans.

Plus, owners of projects worth over A$ billion who apply under the EPBS for tariff concessions would need to have Australian government officials embedded in their global supply offices. There are also tougher anti-dumping provisions.

The apparent leakage of so much work offshore helps to explain what is behind the government’s initiatives. Yet what are likely to increase the level of local industry participation in major projects are less bureaucratic oversight of the project owners, and more support to get Australian firms, particularly SMEs, up to international best practice standards.

Reactions to the plan As the reaction from some in the mining sector to the jobs plan already suggests, there will be resistance to greater enforcement and government interference. Reactions fell broadly along ideological or party political lines. For example, Chris Berg from the politically conservative Institute of Public Affairs writing in the ABC’s Drum, dismissed the “Jobs Plan” as being little more than “an obvious sop to the protectionist wing of the union movement”.

This was echoed by Michael Roche from AustChamThailand Advance

business brief

the Queensland Resources Council, who described it as “a plan from Soviet Russia” – due to the proposal that government officials would be embedded in the procurement offices of major resources firms.

Both the Australian Chamber of Commerce and Industry (ACCI) and the Minerals Councils of Australia expressed concern over the impact of the loss of R&D tax concessions for large firms.

In contrast, the Australian Manufacturing Workers’ Union described the jobs plan as “smart policy”, while the Industry Capability Network (ICN), which assists Australian firms in securing contracts in major projects, also expressed support. Writing in The Conversation, Professor Roy Green from University of Technology Sydney, and co-author of the PM’s Manufacturing Task Force Report, broadly backed the plan, but did question the wisdom of cutting the R&D tax concessions to large firms, describing it as a “misplaced obsession with achieving a budget surplus at all costs”.

Now there are signs that the jobs plan might become a victim of party politics

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with the Greens indicating that they won’t support the R&D tax cuts unless the government fixes the flaws in the mineral resources rent tax (MRRT). The opposition is also likely to block these R&D tax cut measures, which would put the entire plan in jeopardy.

What is at stake?

As I have sought to explain, manufacturing matters to Australia. It also matters to most other countries, and there is no room for complacency or political bickering if our economy is to remain competitive over the long term. However, as I have also noted, Australia’s manufacturing sector faces a number of barriers.

First, there has been a decline in the level of capital investment in our manufacturing industries over the past 20 years. Second, there is a lack of skilled technical trades’ workers, and third, the majority (95 per cent) of our manufacturers are SMEs. There is also a relative absence of interfirm collaboration and networking.

This jobs plan is not without its flaws.

The ability to secure more work for local firms is more than might be fixed by more bureaucratic intervention. However, these are the issues that need to be addressed in order to help preserve the nearly one million skilled jobs within the Australian manufacturing sector. Most of these jobs are to be found in Victoria, NSW and South Australia: all large population states that don’t have the same degree of mining and energy project activity enjoyed

by Queensland and Western Australia.

This article was originally published in The Conversation, an online an independent source of news and views, sourced from the academic and research community and delivered direct to the public. It can be accessed at: https:// theconversation.edu.au/planning-for-ablue-collar-australia-will-labors-job-package-deliver-12303 Tim Mazzarol is a Winthrop Professor in Entrepreneurship, Innovation, Marketing and Strategy at the University of Western Australia and an affiliate Professor with the Burgundy School of Business, Groupe ESC Dijon, Bourgogne, France.

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AustChamThailand Advance

April 2013

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business brief

Rates of Attrition

By Paul Gambles

O

ne of the factors that have eased the pain of sending money back to Australia lately has been the strength of the Thai Baht. Thai residents earning in local currency have suffered nowhere nearly as badly as those paid in US Dollars (USD) or (God forbid) in Sterling. However the sustained rebound in the Australian Dollar (AUD), which started in 2008, may well be coming to an end and that could bring with it a whole raft of both risks and opportunities.

Admittedly, I’ve been calling the end of the latest AUD spike since the end of 2011.

Yet, when currencies form a top or a bottom it’s frequently a process rather than an event. That is why historically, although my team and I have had an exceptional record in forecasting turning points in AUD

rates, we’ve generally tended to be the first guest at the party (which is precisely how uncomfortable it feels when you’re the first one to make a currency call – you turn up all by myself, uncomfortably twiddling your thumbs, waiting everyone else to arrive and for the fun to start).

Before I look at the AUD itself, I’ll take a slight detour into risk management. The worst time to have exposure to a stock is when a company is in trouble. If that company stock is in your pension as well as your investment account, the problems are even worse. Added to that, if that company is your employer and because of its problems lays you off, disrupting your earnings and rendering all your stock options worthless, then you’re really up against it.

I wouldn’t suggest to people not to invest in their employer stock or hold it in their

MBMG Historic Track Record of AUD Calls

super plan but I would ask them to be aware of the risk. Similarly, there may be risks related to any weakening of the AUD – what if your employer pays you here in Bangkok in AUD? Your employer would benefit from that but life in Bangkok will suddenly get much more expensive overnight for you. On the other hand, if you’re paid in Baht then you’d suddenly become much more expensive on any Australian company’s P&L statement, possibly threatening and your position might be threatened by re-shoring.

In other words, in many of the environments where the Australian economy and AUD are strong, you are likely to benefit as this carries through into positive career development opportunities as well. However, with AUD as a barometer of global economic activity, a weakening currency may well signal the opposite. That’s before even looking at cross-currency liability and debt situations (e.g. Aussie properties with Yen mortgages which have been a great idea for the last 6 months but which would look a lot worse if the AUD were the currently going rapidly into reverse).

On the flip side, in the face of a weakening AUD international assets will start to look more attractive, which could be a much needed positive factor offsetting the drawbacks set out above – so there’s a strong argument that maintaining a largely offshore foreign currency allocation provides inherent diversification benefits from an overall wealth standpoint.

With that in mind, it is also important not to over-react to short-term movements. While much media attention is dominated by the daily zigs and zags of currency volatility, our focus on underlying fundamentals has been the key to capturing the big moves over time and adding significantly to client returns.

At the end of 1995 we anticipated AUD weakness which failed to materialise until the end of the following year. In 2000 we recommended buying AUD at 0.52 – it fell below 0.5 before rallying at the start of 2002. In 2008, at an AustCham lunch we wanted out of AUD again at 0.95. It rose to touch parity later that year before falling off a cliff. In 2009 we missed the bottom with AUD well on its way back to 80 Cents before we got back on board. Since the end of 2011 we’ve been keen to exit again.

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It is common knowledge that China’s construction boom has been the driving force behind Australian mineral exports. As the chart shows, export commodity prices have become the dominant driver of the Australian Dollar, and have led to its doubling in value since 2001. However, while mineral

AustChamThailand Advance

business brief

prices have been the Australian economy’s key strength, they are also its key weakness, as China moves down an inevitable path of rebalancing away from physical investment and towards the consumer sector.

AUD Exchange Rate (vs. USD) and Commodity Prices

Australia’s “two-speed economy”, with growth outside the resource sector having been weak for some time, makes the country particularly vulnerable to a slow-down in exports. Along with a reliance on international funding to support the richly-priced housing market, this raises the prospect of further cuts to the Reserve Bank of Australia (RBA) cash rate and of stimulatory Australian government and central bank responses both of which would put additional pressure on the AUD. Regardless of how long the AUD stays at these levels, we remain of the view that it is precariously placed if economic data should disappoint, and possibly with some catch-up due from the commodity price declines that we have already seen. As the US Dollar is still seen as the “safe-haven” currency of choice, minimizing holdings in AUD continues to be a good choice for Australian investors from a diversification standpoint. All this comes with the USD likely to rise in value at just the time that commodities and the AUD are sinking. Your property prices are under pressure and your career may have to take some unexpected turns.

The risks of an AUD downturn can be easily hedged against and the opportu-

nities easily exploited. It’s tantamount to bad risk management not to!

Paul Gambles, managing partner and chief investment officer of MBMG Group, is a regular speaker at events on market forecasting, financial planning, investing and legal issues. He features regularly on CNBC’s “Squawk Box”, and most days on Money Channel’s “News at Ten” program.

Paul’s regular MBMG Updates can be found at http://www.mbmg-group.com/ mbmg/blog and he can be contacted at paul@mbmg-international.com

MBMG Group provides solutions for corporate, institutional and individual clients in the areas of wealth creation and protection, insurance, mortgages, legal services, corporate advisory, accounting, audit and tax. MBMG Corporate Solutions is the exclusive correspondent firm of PKF International Limited (PKFI) in Thailand.

PKFI administers the PKF network of legally independent member firms.

There are over 300 member firms and correspondents in 440 locations in around 125 countries providing accounting and business advisory services.

Thailand in Global Top Ten of Car Production OICA, The International Organization of Motor Vehicle Manufacturers has officially confirmed that Thailand is now under the Top 10 Automotive Manufacturers in the World and is now Number 9 in total car production (passenger cars and commercial vehicles together) and Number 3 in commercial vehicles. This position should certainly help to further promote Thailand as the Automotive Superhub of ASEAN. For more details visit www.thaiautobook.com

AustChamThailand Advance

April 2013

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business brief

Thai Property Market Outlook

By James Pitchon Residential A positive market sentiment, a healthy economy with rising wages and no restrictive measures on buying residential property drove demand for both low and high rise residential in the last quarter of 2012. The challenge for developers was to acquire land at prices that would still allow them to build affordable products, while the shortage and cost of construction labour and possible construction material cost increases. All of these issues are going to be continuing themes in 2013.

Mass transit systems continue to open up new areas for development and we are only starting to see the first impact from the Dark Blue Line extension due for completion in 2016. We expect that construction will start on new lines in 2013 which will continue to open up new areas for both housing and condominium development. In the downtown market the majority of new condominium launches were one bedroom units. There were a total of 7,667 units launched downtown in 2012 compared to 9,705 in 2011.

In the fourth quarter of 2012, Sansiri reported that they had sold out all units at The 39 by Sansiri development on Soi 39 at prices of over Baht 200,000 baht per square metre. These are record prices for the Sukhumvit area. Supalai launched two downtown projects, one is Supalai Elite (Sathupradit) at prices of Baht 66,000 per square metre and one on Soi Suanplu at Baht 100,000 per square metre. Both projects sold well.

Piling has started on Sansiri’s 99 unit the Stable on Wireless Road. The units will be two to four bedrooms with sizes between 120-450 square metres with a 450 penthouse duplex. Prices for this project are expected to set new records, significantly higher than anyone has asked before. However, to assess pricing we should look at price per unit rather than price per sq.m. If prices per

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The challenge for developers was to acquire land at prices that would still allow them to build affordable products, while the shortage and cost of construction labour and possible construction material cost increases. unit is not above the affordable range, we believe there will be continued demand from end user buyers.

Private developers with limited experience continued to launch low-rise condominium projects in Sois along Sukhumvit but we believe that performance for these smaller developers will be mixed because there is a preference by purchasers for high-rise projects and to buy from well-known developers.

About 85 per cent of buyers of condominium property in the downtown market are Thai buying for occupation and both long and short term investment.

The midtown market continues to grow with a total of 49,500 units launched in 2012. The hot areas continue to change on a quarterly basis and in the last quarter of 2012 Rattanatibet along the purple line was the location of several new launches. Almost all the product in

AustChamThailand Advance

the mid market is one bedroom units.

The low-rise housing market for single detached houses and townhouses continued to be driven by almost 100 per cent end-user demand with no speculators or buy to rent investors. Sales grow along with new supply even in areas that were flooded in 2011.

The Office Market The total office supply was 8,100,000 square metres at the end of 2012 and occupancy rates rose to 88 per cent compared to 86 per cent at the beginning of the year with 45,000 square metres of new buildings completed during the year. Rents continued to rise with Park Ventures achieving record rents of Baht 925 per square metre and average CBD grade A rents now at Baht 766 per square metre, a 9 per cent increase on 2011.

There are only 420,000 square metres of new office space under construction.

Out of the total space under construction 200,000 square metres is located on Ratchadapisek at AIA Capital and five towers at G Land’s Grand Rama Nine development. Only two grade A buildings are under construction in the CBD, AIA Sathorn and Bhiraj Tower. We expect that CBD rents will rise for both grade A and grade B buildings but the amount of space on Ratchadapisek will keep rents flat for this location. Total take up (net growth) in total occupied space was 160,000 square metres compared to 83,000 square metres in 2011.

Retail There will be continued growth in the development of major shopping centres in Bangkok with CPN announcing that they will build new projects both in Rangsit and at the Rattanatibet/ Kanchanapisek intersection. There have been reports that in addition to the new Emquartier currently under construction opposite the existing development, the Emporium will also develop a new shopping centre between the Imperial Queen’s Park Hotel and Benjasiri Park.

Siam Future and Ikano (IKEA’s property) have also said that following the success of Mega Bagna they will look at other locations in Bangkok to develop

AustChamThailand Advance

shopping centres anchored by IKEA. Major developers continued their refurbishment programs of existing buildings with Silom Complex being reopened and Siam Centre re-opening in the first quarter of 2013. CPN, Robinson and other retailers continue to expand upcountry with CPN announcing plans for a new development in Phuket as well as a shopping centre in Koh Samui. Other retailers such as HomePro and Index also continued up-country expansion.

Private developers continued to build community malls but with mixed results and with some developments struggling to attract sufficient customers. The big box stores continued to expand their formats with Tesco Lotus and Big C expanding both supermarket and convenience store formats.

There will be more competition in the C store segment with Tops having taken over Family Mart and Japans Lawson brand opening in Thailand. International brands continued to expand with Uniqluo opening their fourth (Mega Bangna), fifth (Siam Paragon) and sixth (The Mall Bangkapi) stores, and Trucco the Spanish brand opening their first store. Siam Piwat continue to plan their new retail development on Charoen Nakorn Road between the Peninsula and Hilton hotels.

growing expatriate population, and limited new supply despite a 10 per cent annual increase in the number of hotel rooms which compete for the daily rate market. The total supply was 15,386 units, mainly one bedroom units, in the last quarter of 2012 occupancy was 82.5 per cent with grade A rates of Baht 1,109 per square metre. There is limited new supply with only 279 units under construction.

Hotels Thailand saw a record 22 million tourist arrivals in 2012 but the continuing growth in Bangkok hotel supply meant that the city continues to have some of the lowest average room rates in the region. Total downtown supply was 34,971 rooms and increase of 10 per cent on 2011, average occupancy rates were 70.6 per cent, average daily rates (ADR) were Baht 3,019 and REVPAR (Revenue per available room) was Baht 2,194 B. (STR figures).

We expect that a further 7,238 rooms will be completed in the Bangkok downtown area by 2015 although the number of new building permits for hotels seems to have slowed. This may mean that finally the growth in supply will start to slow. The growth in supply means that it is very hard for us to predict a rise in room rates or occupancy despite growing tourist numbers.

Apartments The apartment sector competes with one bedroom serviced apartment units and the rental units in condominiums.

Expatriate tenants continue to want to be located in the central areas with about 70-80 per cent of demand preferring the Lumpini and Sukhumvit area up to Soi Ekamai. The total number of expatriates with work permits grew to 113,663 from 100,641 at the end of 2011. New and refurbished apartments continue to do well in terms of occupancy but housing allowances have not changed significantly over the last 20 years.

Mr James Pitchon is an Executive Director of CB Richard Ellis (Thailand) Co., Ltd. He is responsible for servicing property requirements of multinational corporations in Thailand.

Mr. Pitchon has been responsible for the coordination of more than 1,000 multi-national corporation property transactions in Thailand over the last nineteen years.

Serviced Apartments

As an affiliate of CBRE, CB Richard Ellis (Thailand) Co., Ltd. was the first international real estate consultant firm to be established in Bangkok. Since opening in June 1988, they have grown to be the market leader in real estate services in Thailand.

Performance improved based on a significant increase in tourism numbers, a

For more information please visit www. cbr.co.th

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business brief

Australian University Takes Home Bangkok Business Challenge Prize

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ince 2002, Sasin Business School of Chulalongkorn University has played host to Thailand’s leading English language business plan competition, encouraging post-graduate students in business administration programs to develop their ideas in an entrepreneurial way.

The Challenge also provides students with an international platform to compete; educates on business planning and presentation techniques; as well as to bring sustainability concerns to mainstream commercial ventures. Teams of MBA students compete in a range of disciplines from elevator pitches, business plan writing and full pitching. The winning team gets to take home the prestigious H.M. the King of Thailand’s Award (and a A$10,000 cash prize).

The judging committee is made up of leading entrepreneurs, professionals and venture capitalists as well as, for the last four years, yours truly. This year’s competition had 63 applicant teams from five continents, of which 16 qualified for the

finals, held at Sasin recently. These teams were split into four groups, with the group winners and the two best runners-up advancing to the final.

For the first time, all business plans submitted were evaluated not only on their venture’s economic soundness, but also on their abilities to address relevant social and environmental concerns.

The three day event began on Thursday 28 February with an entrepreneurship forum chaired by M.L. Dispanadda Diskul, Chief Development Officer of the acclaimed Mae Fah Luang Foundation, which has Royal Patronage to develop rural areas in Thailand. The final took place on Saturday 2 March, where Latis Energy, a team from the Queensland University of Technology, emerged as this year’s winners. Latis is a provider of renewable energy to the global coal mining industry. It uses a system which combines large-scale floating solar farms and contracted supply services.

The overall competition was of a very high standard and included a wide range of excellent ideas, with a truly international flavour. The winning Aussie team collected their prize at an auspicious awards ceremony presided by H.E Admiral ML Usni Pramoj.

Thanks to Paul Gambles of MBMG International from the judging panel who provided this article detailing the competition. For more details of the competition please visit www.bbc.in.th

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AustChamThailand Advance

embassy news

Australian Minister for Foreign Affairs visits Bangkok

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oreign Minister Bob Carr held a talk in Bangkok with Thai Deputy Prime Minister and Minister of Foreign Affairs, Dr Surapong Tovichakchaikul. Senator Carr and Dr Surapong discussed a range of regional economic and security matters including the threat to international peace from North Korea’s development of nuclear weapons and missiles. “Dr Surapong and I are agreed in our condemnation of nuclear testing

by North Korea in contravention of unanimously agreed United Nations Security Council resolutions,” Senator Carr said.

“We discussed regional matters, including the South China Sea, cooperation in the East Asia Summit and the challenges of irregular people movements in the region.

“I expressed our appreciation for Thailand’s support for Australia’s election to the UN Security Council in October last year and briefed Dr Surapong on Australia’s priorities for its two year term on the Council. “I also expressed my strong support of Thailand’s 2017-18 UNSC bid. “Our mutual support on our respective UNSC bids reflects the enduring partnership between our two countries in regional and multilateral fora,” Senator Carr said. The talks took place during Senator Carr’s first visit to Thailand as Foreign Minister, and follow on from the visit of Thai Prime Minister Yingluck to Australia in 2012 during the 60th anniversary of diplomatic relations. Thailand is a founding member of ASEAN and a key South East Asian partner for Australia.

Senator Carr said education is a pillar of the relationship between Australia and Thailand. “In 2012, over 19,900 Thai students were enrolled in courses in Australia,” Senator Carr said. “This year, for the first time, we are providing 11 scholarships for Australian students to study in Thai universities. “We have established a BRIDGE program to link Australian and Thai schools which aims to build ties

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our two countries,” Senator Carr said.

Senator Carr and Foreign Minister Surapong also reviewed progress in the bilateral trade relationship, which is underpinned by the Thailand-Australia Free Trade Agreement (TAFTA) and the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA).

Both Ministers said they looked forward to Regional Comprehensive Economic Partnership (RCEP) negotiations to deliver new opportunities for business.

between our young people and to teach them language skills and provide knowledge and appreciation for the cultures of

As the second largest economy in ASEAN, Thailand offers export and investment opportunities for Australian business. Between 2009 and 2011, Thai investment in Australia increased more than 10 fold – from A$10,0001.3 billion to A$13.4 billion. Thailand is Australia’s ninth largest trading partner and Australia is Thailand’s eighth largest trading partner.

AustChamThailand Advance

embassy news

English Language Training Shared with Thai Teachers

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leven Australian English language centres recently visited Bangkok to showcase English language teaching methods to Thai teachers at a special seminar titled UECA Mission Thailand 2013: Australian Teaching Showcase organised by the Australian Trade Commission of the Australian Embassy and University English Centres Australia (UECA). Over 80 Thai teachers of English language and heads of English departments from prominent Thai universities attended.

The 13 delegates from 11 English language centres are all members of the UECA, an organisation of English language teaching and teacher training centres attached to Australian universities.

“Thailand has a strong commitment to improving its English language proficiency,

ies at University of Technology Sydney: INSEARCH. UECA centres are typically located at Australian university campuses. The teachers are highly qualified and generally hold Masters degrees or PhDs in English language teaching (TESOL), Applied Linguistics, Education or Adult Education.

particularly in readiness for the ASEAN Economic Community in 2015. This mission is an invaluable opportunity for Australian centres to learn directly from local institutions about their needs, so we can offer appropriate programs and expertise,” said David Larbalestier, President of UECA and Director of English Stud-

Programs offered at UECA centres include: English language pathways to Foundation Studies (high school equivalent), diploma programs (first year undergraduate equivalent) or post-graduate (Masters and doctorate) programs; Academic and General English; English for Business and Work; Teacher Training; test preparation (Cambridge suite, IELTS and TOEFL); and tailored English language programs (Study Tours and Study Abroad).

Thai Women’s Access to Justice

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n the occasion of International Women’s Day on 8 March 2013, the Australian Ambassador hosted a lunch for a group of prominent Thai women from various backgrounds, including female members of the parliament from different political parties, journalists, human rights advocates, representatives of international organisations and civil society leaders. They came together to discuss ways to promote women’s empowerment and tackle violence against women and girls.

than the end of violence”, Australian Minister for Foreign Affairs Bob Carr stated in his message for International Women’s Day this year.

Celebrated around the world, International Women’s Day highlights the advances women have made towards economic, political and social equality. The theme for this year’s celebration is the ‘Elimination and prevention of all forms of violence against Women’.

Australia’s Global Ambassador for Women and Girls, Ms Penny Williams earlier issued a global video address calling for an end to violence against women and girls.

“There is no more important building block for the empowerment of women and girls

To respond to this objective, Australian Ambassador to Thailand James Wise

AustChamThailand Advance

announced today that the Australian Government, through the AusAID Human Rights Grants Scheme, will provide A$ 100,000 for the International Commission of Jurists (ICJ) to conduct advocacy on improving women’s access to justice in Thailand. This project will tackle a range of challenges, including addressing gender-based violence through advocating stronger provisions within the Domestic Violence Victim Protection Act; raising awareness of officials on the investigation of incidents of domestic violence, sexual assault and harassment against women and girls; and working with victims of violence to understand their legal rights.

The ICJ is globally known for its strong advocacy work on the promotion of international human rights standards through the rule of law. Australia is delighted to support ICJ’s project in Thailand and to continue to work with Thailand to empower women in both our countries.

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Austcham board of directors

Annual General Meeting (AGM) and Board of Directors for 2013/14 Wednesday 6 March 2013 at Grand Hyatt Erawan

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ustCham held its AGM at the Grand Hyatt on Wednesday 6 March. Top of the agenda was the election of a new Board of Directors for the 2013/14 membership year – following which a new Chamber President, Leigh Scott-Kemmis, was appointed. Outgoing Chamber President, John Anderson, led the meeting and reviewed the previous year’s achievements. He highlighted the importance of the landmark 60th anniversary of Thai-Australian diplomatic bilateral relations. He pointed to AustCham’s Study of Australian Business in Thailand as the first of its kind in Thailand, and possibly anywhere in Asia. Completed in close cooperation with the Australian Economic Consultancy AEC Group, the study was

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released to coincide with the Thai Prime Minister’s visit to Australia last year.

Mr Anderson also pointed to the AustraliaThailand Business Conference as capping off a big year for AustCham in 2012.

Under the theme “Australia and Thailand in an Integrated Asia”, the conference presented a top-quality line-up of some 17 speakers, including top business leaders such as ANZ Bank’s CEO for Asia and the Pacific and the CEO of PTT EP. Having served the maximum period of six years on the AustCham Board, John Anderson was ineligible to again stand for election. He wished the new board well and promised to stay closely engaged. A

strong and friendly presence in the Chamber for many years, John’s leadership will be missed. We look forward to seeing him at events in the more relaxed role of guest.

Ending the AGM with a highly optimistic outlook for the year ahead, AustCham introduced its new catch phrase…. Business. Connections. Community. Thanks to the team at Capital TV, a new introductory video was featured to showcase the Chamber and its activities. To view the video please visit our website.

We would like to thank all those who served on the 2012/13 Board, and are proud to announce the new Board of Directors for 2013/14.

AustChamThailand Advance

Austcham board of directors

President Leigh Scott-Kemmis DBM (Thailand) Ltd. Leigh Scott-Kemmis is Chairman of Lee Hecht Harrison/DBM Thailand, Chairman of Potentia (Thailand) Co, Ltd and is also currently a non-executive director on a number of company Boards and is certified by the Thai Institute of Directors. He has over 30 years’ international business experience and has lived in Asia since 1991.

Leigh’s previous experience was in the banking and the investment industry, internationally and in Australia. He has 20 years of senior management experience and has held

Vice President Jason Ellis BlueScope Steel (Thailand) Limited Jason Ellis is originally from Sydney and has lived in Thailand on three separate occasions from 1997 to 2000, again from 2002 to 2005 and back in the country since 2010.

Jason holds Degrees in Commerce & Arts, from Sydney and Wollongong Universities respectively and is a Fellow of the Australian Institute of Company Directors (FAICD).

Vice President M.L. Laksasubha Kridakon Baan Laksasubha Resort Hua Hin M.L. Laksasubha Kridakon is the owner and director of her own business, Baan Laksasubha Resort in Hua Hin. She joined the AustCham Board in 2009 and has been Vice President for the last three years.

Seeing great worth in nurturing today’s younger generation to become tomorrow’s leaders, M.L. Laksasubha has invested much time to create and grow the Thai-Australia Association (TAA) and AustCham joint program; ‘Australi-

AustChamThailand Advance

roles including Vice President of Citibank, Director and Treasurer of the Australian Bank, Chief Executive of the Bank of New Zealand (Australia), and Chairman of stockbroker BNZ Norths.

Leigh was an advisor to the Australian Treasurer in respect of capital markets development, a consultant to the Commission reviewing the Australian financial system and a consultant to the World Bank.

He has had considerable experience in managing large organisational change and has a strong interest in the people issues associated with change and leadership development. In Thailand and regionally, Leigh has worked with over 200 major multinational and Thai corporations undergoing change and development.

Jason is currently the President & Director of BlueScope Steel Thailand Ltd, Director of BlueScope Lysaght Thailand Ltd & BlueScope Services Thailand Ltd. (BlueScope Steel and Nippon Steel will hold joint equity in the BlueScope Thailand group business from March 2013).

He has over 15 years’ experience working in Thailand and the broader Asian region with both management and director accountabilities.

Jason was previously elected as an AustCham Board member in 2004 and seeks a board position in 2013 to give greater focus for AustCham and its members on the opportunities to be gained through alliance with Japanese companies operating in Thailand.

anAlumni’. The group has created its own website which has seen over 700 people sign up already.

Khun Lak is determined to strengthen this program and further collaborate with likeminded organisations to increase awareness and promote the value of Australian business and academia.

Khun Lak is also an entrepreneur and has been owner of various business including Krystalina crystal company.

She also represents AustCham in the Professional Women’s Group (PWG). Khun Lak has spent much of her life in Australia including studying there. She has two children – one who has graduated from University of Melbourne and another has graduated from RMIT University.

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Austcham board of directors

Vice President Belinda Skinner Top TalentAsia Originally from Western Australia, Belinda Skinner is the Country Manager for TopTalentAsia, specialist recruitment consultants offering executive search services. With industry specialised consultants to ensure the best companies get the best fit employees.

Belinda relocated to Thailand with her husband over seven years ago and has thrown herself into various community activities/organisations in Thailand. Highly involved and manages AustCham’s Voluntary English teaching program, you will find her at most AustCham events. An active member of ANZWG and a supporter of the Beaumont Partnership Foundation, both of whom undertake significant fundraising and community services work.

Notwithstanding the fact that she is active in various community services, she is also a member of the British Club Golf, always up for a game. Golf however is not her only passion; she is an avid member of Fremantle

Australian Rules Football Club (however don’t hold that against her - someone has to be!). You will meet her at the AustCham AFL Grand Final function, proudly wearing Fremantle colours.

With 25 years working experience in Australia, London and Bangkok, a background and Degree in Management and Human Resources she was keen to join the AustCham Board.

A highly active member of the Board for the past five years, responsible for Communications; including the Chamber’s publications (Advance and the Handbook) electronic media (AustCham website and eNews communications).

Serving on numerous subcommittees: Community Services, AFL Grand Final, AustCham Ball and Business Awards, attending both Bangkok and Eastern Seaboard Sundowners, member site visits and ANZAC Day memorial services. As she has done for the past six years, remains an active volunteer and manages the AustCham English teaching program.

Treasurer Warwick Kneale Baker Tilly Thailand Limited Warwick Kneale joined Ferrier Hodgson Thailand, a major accounting firm from Australia in January 1999. He was previously employed as a senior resource by another insolvency specialist firm in Sydney, Australia.

Prior to that position, Warwick spent 28 years in banking, having worked for a number of reputable Australian financial institutions. Various senior positions were held during this time in numerous areas including in particular, distressed asset management and corporate recovery and turnaround.

Since commencing work in Thailand, Warwick has acted in the capacity of Director of a number of listed and nonlisted companies, both in Thailand and Vietnam.

In 2003, Warwick, along with other Partners, established Baker Tilly Thailand, and at present he remains a Senior

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Partner in the Corporate Advisory Services consultancy of Baker Tilly Thailand.

This will represent Warwick’s second year of a second term as a Board Member of AustCham Thailand, his previous tenure finishing in 2008. He has held the position of Chairman of the Community Services Committee and is an area he is becoming increasingly interested in. During his year in this capacity, a number of worthy groups have been assisted, but there still remains plenty of need for assistance to many less fortunate groups, which he is dedicated to help.

Warwick’s other main area of interest in joining the Board, apart from Community Services, once again is to promote business between Australia and Thailand and to assist service companies in Thailand obtain contacts with Australian companies to assist with entry to Thailand for manufacturing or trade. He remains steadfastly dedicated to promoting AustCham as a business conduit for Thai and Australian businesses.

AustChamThailand Advance

Austcham board of directors

director David Bell Crestcom - Ra-Kahng Associates Ltd. David Bell is a long term member of the Australian-Thai Chamber of Commerce.

He has lived and worked in Thailand for 30 years. He has served for two years as an elected director of AustCham, and offers himself for reelection. He has lived in SE Asia for 36 years. Twelve years ago, David founded Crestcom-RaKahng Associates Ltd. a leading management development organisation.

David came to Asia as General Manager of McCannErickson in Indonesia in 1976. He was later promoted to manage McCann-Erickson in Malaysia. In 1983 he was appointed Managing Director of McCann-Erickson in Bangkok. In 1989 he left McCann to found Bates Worldwide in Thailand and later in Indochina. He served as

Director Josh Hyland AEC South East Asia Co., Ltd Josh Hyland has many years of experience working with Australian and other foreign businesses in Asia. Following a scholarship program to study with one of Thailand’s leading international colleges, Mahidol University, he has developed a high level of skills in cross-cultural communication, project management and offshore business administration. Today Josh is one of only a handful of Australians to have studied in Thailand and continue working here.

Working three years for the Australian-Thai Chamber of Commerce, Josh has built strong networks with and a deep understanding of the business community in Thailand and

Director Brenton Mauriello dwp Brenton Mauriello first graduated from the University of South Australia, and then obtained a Masters in Business Administration from the University of Singapore.

Brenton is currently undertaking a Doctorate of Business with the Maastricht School of Management.

A licensed teacher, builder and auctioneer in Australia, Brenton has resided in Thailand since 1994 initially working with a leading pharmaceutical multinational before joining dwp (design

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Chairman of Bates Indochina until 1999 when he became interested in developing managers into leaders. He set up his own successful company, Crestcom-RaKahng which tutors managers in business and performance based topics such as Communication, Leadership, Conflict Resolution, Decision Making, Negotiating, Mentoring and Empowerment.

In the past two years as a director of the Australian-Thai Chamber of Commerce, his main portfolio has been presentations and conferences. He is keen to make more contributions and personal effort to continuously improve the quality of events and business functions offered by the AustralianThai Chamber of Commerce. He sees his role in the Chamber as being closely related to his professional life.

David is known throughout the region as a racing yachtsman, having won many major events including the King’s Cup in Phuket twice (1999 and 2001) and the Top of the Gulf International Regatta in 2012. He is also a keen scuba diver.

neighbouring ASEAN countries.

In addition to his main role in running the Chamber’s intensive communications program, Josh also played a key role facilitating seminars with over 100 high-profile business professionals, CEOs and diplomats. He also contributed extensively to the development and administration of the Chamber’s Manufacturers and Infrastructure Group and AustralianAlumni and CSR programs.

As a Manager with AEC South East Asia Josh deals daily with foreign companies wanting to establish operations in ASEAN. Key tasks include feasibility analysis, location analysis, risk analysis, business establishment, supplier procurement, logistics and supply chain advisory. He has hands-on experience in the issues facing investors establishing in ASEAN countries and an understanding of the key decision criteria these companies use in making their investment decisions. Josh is fluent in Thai language.

worldwide partnership) in 2005.

As CEO and partner of dwp, Brenton has been responsible for dwp’s group operations and strategy implementation since 2007. Growing from 40 to 400 staff with 10 offices across Asia, the Middle East and Australia, dwp is one of Thailand’s leading creative services based companies. dwp and Brenton have been long term supporters of AustCham and the Australian community in Thailand and has maintained strong political and business links with Australia. Brenton would seek to bring renewed focus to AustCham’s efforts to boost Australian representation and participation in Thailand’s infrastructure, construction and creative services industries.

AustChamThailand Advance

Austcham board of directors

director Alan Polivnick Watson, Farley & Williams (Thailand) Limited Alan Polivnick is a partner with Watson Farley & Williams. He moved to Bangkok to join Watson Farley & Williams in 2007. Alan has a Law Degree and an MA in Japanese from Sydney University. He is admitted to practice law in Australia and England & Wales.

In 2011, Watson Farley & Williams celebrated 10 years of operations in Thailand. With Thai, English, Singapore and Australian qualified lawyers, the Bangkok office provides legal services in three principal areas: corporate and commercial, finance and dispute resolution.

Director Rananda Rich Blackmores Ltd. Rananda Rich relocated to Bangkok in August 2012, with her husband and young daughter, to take up the role of Country Manager for Blackmores Thailand. Blackmores, Australia’s leading natural health brand, improves peoples’ lives by delivering the world’s best natural health solutions to become peoples’ first choice in healthcare. Blackmores has a strong presence throughout Asia Pacific and has been in Thailand for over 15 years where it has been voted Readers Digest Most Trusted Brand for seven years in a row.

Rananda has combined her Natural Sciences degree from Cambridge University and Chartered Accountant training with her passion for natural health during her time at Blackmores.

Prior to relocating to Thailand, she spent over five years with the

Director Pratamaporn Svasti-Xuto Australia and New Zealand (ANZ) Banking Group Ltd. Pratamaporn Svasti-Xuto is currently Group Representative of Australia and New Zealand Banking Group (ANZ) in Thailand, a position she has held since May 2010. Pratamaporn is married with Chawan Svasti-Xuto and they have two grown up daughters.

Pratamaporn holds a Bachelor of Accounting (with Hon-

AustChamThailand Advance

Alan represents clients in cross-border arbitrations and litigation, particularly in the aviation, shipping and insurance and reinsurance sectors.

He regularly advises MNCs, international airlines, insurers and reinsurers and international organisations on their operations in Thailand including company establishment and structures, contract negotiations, commercial and coverage disputes, employment law and regulatory issues. He also advises Thai companies on international and regional disputes and their international investments and operations.

If re-elected to the Board, Alan would like to continue and expand his involvement with the Chamber, particularly in areas beyond dealing with legal issues facing the Chamber and Board.

company in Sydney including roles in strategic initiatives, strategic sourcing, finance and investor relations.

Before joining Blackmores, Rananda spent several years with Lion Nathan and prior to that worked for Deloitte. In addition, she has had previous experience of working and living in Asia.

In 2011, Rananda graduated from the Company Directors Course with the AICD and attained her Diploma of Investor Relations from AIRA. In addition, she completed the CEW Development Program in 2010. The benefits of these courses and professional accreditations, in combination with her experience and skill set, mean that she is well placed to understand the responsibilities of a Directorship with AustCham. She has been an active participant in AustCham events since arriving in Bangkok and is willing to contribute further by being an active member of a Board that is focused on further developing business between Australia and Thailand.

ours) from Chulalongkorn University and has earned her Master Degree in Business Administration from Indiana University (Bloomington), USA. Pratamaporn also completed the Director Certification Program run by the Thai Institute of Director which is accredited by the Australian Institute of Company Directors.

Pratamaporn is a senior banker with over 25 years of experience covering leadership roles in investment banking, corporate finance, corporate & institutional banking, corporate affairs and government & regulatory relations with institutions such as Citibank, HSBC and Standard Chartered Bank in Thailand.

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Austcham board of directors

Director Charles Wrightman Natural Ville & Lenötre Charles Wrightman is the Managing Director of Natural Ville & Lenötre a leading hospitality and catering services company that is part of the global hotel chain Accor.

A pioneer in Accor with 30 years of experience Charles has Ex-Officio Greg Wallis Senior Trade Commissioner Australian Trade Commission Greg joined the Australian Trade Commission (Austrade) in 2008 and was posted to São Paulo, Brazil, as Consul-General and Trade Commissioner until August 2012. He has since been appointed Austrade’s Senior Trade and Investment Commissioner in Bangkok, Thailand. Greg joined Austrade with a diverse private sector background in global business management.

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claimed the Best Services Company Award in 2009 at the AustCham Business Awards. Charles is also a pioneer in the Accor Asia Pacific Crisis Management Committee. His worldwide experience has taken him from India to Baghdad, London, Paris, Muscat, Melbourne, Brisbane, China, Malaysia and now Thailand.

With great relationship marketing skills, a wonderful sense of humour and a single handicap in Golf, Charles is well known in all the corporate and diplomatic societies in Bangkok. Charles has been a member of the Australian Chamber since 2003.

Prior to his appointment in Brazil, Greg held executive positions with Philips Electronics in Australia and Brazil, International Road Dynamics in the USA and Canada, and with communications equipment specialist Codan in his home town of Adelaide, South Australia. He has relished the opportunity to use his corporate experience to help Australian companies develop trade, education and investment links with Brazil and Thailand, and to promote a greater engagement with these countries through government, commercial and cultural ties.

Greg holds a Bachelor of Arts in Political Science and Spanish from the University of Adelaide, and a diploma in Business Administration from Macquarie University. He speaks Spanish and Portuguese with fluency, and elementary Thai.

AustChamThailand Advance

Eric Kenso Ward, ISB Class of 1979

International School Bangkok Bringing out the superhero in each of us since 1951. www.isb.ac.th

community services

Voluntary English Teaching Saturday 16 March at Baan Khao Huay Mahad School, Rayong AustCham Thailand sponsors a number of schools in the provinces of Chonburi and Rayong. Part of this support includes the provision of English classes, which are conducted by volunteers from our community. Volunteers work with small groups of children aged between 5 and 12 years and play simple games and activities which encourage the children to use the English language. No prior teaching experience is necessary, just a lot of enthusiasm! If you are interested in becoming a volunteer, please contact varin@austchamthailand.com

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AustChamThailand Advance

community services

Community Services Sponsor – The Beaumont Partnership Foundation The Community Services Subcommittee have instigated an initiative to support some of our member related charities.

Our aim is to promote various charities in order to raise awareness and/or match the charity with a new CSR partner. Each month part of your Sundowners entry fee will go towards the monthly CS sponsor.

Each charity will have previously been approved by, AustCham’s Community Services Subcommittee

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he Beaumont Ruam Pattana School in Chaiyaphum was conceived as a means of re-dressing some of the inequalities in educational opportunities between Bangkok and the rest of Thailand. The Beaumont Partnership has been in business here for over the 23 years. Over that period of time the contin-

AustChamThailand Advance

uing drift of young people from rural areas to urban centres has remained clearly apparent. Typically the reason for this drift is the search for an improved standard of living for themselves and their families.

A recognition that the opportunity to improve standards of living is largely driven by access to education drove The Beaumont Partnership to establish the TBP Foundation with a focus on establishing a school in Chaiyaphum province.

In some way this is intended as a means of giving back to the community that has supported the company over many years. With the assistance of its extended network of fellow consultants, building suppliers, developers and generous individuals, the initial phase of the school is due to open in May this year.

Continuing economic sustainability is one of the fundamental principles embraced by the school’s board. On that basis the intention is that income derived from a construction industry focussed business park, a hospitality college and an organic farm, situated on land close to the school, will eventually provide for the ongoing financial needs of the school.

It is anticipated that the establishment of this support base will take between five to six years, and in the interim financial support is sought from the broader community.

To read more on the Beaumont Partnership foundation or to see how you can help please visit the website www.tbp-foundation.com/home.html

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Chamber Events

AustCham Sponsor Siam Winery Launches Berri Estates Wines Wednesday 20 February 2013 at the Australian Ambassadors’ Residence Siam Winery, Thailand’s leading wine producer and importer of premium brands, recently held an evening of great Australian wine as it launched Berri Estates under its World of Wines portfolio.

Recognised as Australia’s favourite wine, Berri Estates’ first night in Thailand was held at the Australian Ambassador’s residence, amidst the lush garden with an Aussie barbeque and music, entertaining the guests in classic Australian hospitality. H.E. James Wise, Australian Ambassador to Thailand was on hand to very kindly congratulate Siam Winery on this occasion. A great evening, at a wonderful locale was clearly enjoyed by all as Berri Estates, now available at leading supermarkets nationwide, got off to an excellent launch.

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Chamber Events

Eastern Seaboard Sundowners Friday 22nd February 2013 at Holiday Inn Pattaya Hosted by AustCham, and held in conjunction with British (BCCT) and American (AMCHAM) Chambers of Commerce, February Sundowners proved to be another enjoyable evening of networking for all attendees. AustCham would like to thank Catering and Venue Sponsor Holiday Inn, Wine Sponsor Berri Estates and Corporate Sponsor Automotive Focus Group for ensuring a successful evening.

Global Market Update by Australia’s ANZ Bank

Friday 8th March 2013 at Oriental Residence Bangkok AustCham and ANZ hosted a special luncheon address by Dr Mike Foskolos, Head of Capital Markets & Securities Research at Australia’s ANZ Bank. The presentation incorporated ANZ’s view of the present global equities market and examined specific investment styles including market sectors and industry groups which are particularly attractive in the current environment. The presentation went beyond merely outlining the ANZ view, but examined the rationale behind the view - while at the same time demystifying complex market concepts by explaining them in easy-to-understand terms. Many thanks to ANZ and Oriental Residence for helping to achieve a successful luncheon with a very special thank you also going to Dr Mike Foskolos and Mr Clarence Choon for sharing their time and insightful knowledge with our members.

AustChamThailand Advance

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Chamber Events

Bangkok Sundowners Wednesday 6 March 2013 at the Grand Hyatt Erawan Following AustCham’s Annual General Meeting, Bangkok Sundowners was held in the uniquely themed ‘Campus’ room of the Grand Hyatt Erawan. Well attended and thoroughly enjoyed by all guests, many thanks go to the Grand Hyatt for providing such professional service and wonderful catering, corporate sponsor MBMG for making the evening possible and community service sponsor The Beaumont Partnership Foundation for their educational presentation about such an inspiring project. To read more about the Foundation please visit the community service pages.

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1) Chanathan La-Ongsri, Meinhardt; John Pollard, Meinhardt. 2) Manasvee Vinijchaipattanakij, The Treedom Group; Robyn Macivor, The Treedom Group. 3) Lalidapun Chavananand, Grand Hyatt Erawan; John Pollard, Meinhardt; HE Mr James Wise, Australian Ambassasador to the Kingdom of Thailand; John Anderson, AustCham Past President, Meinhardt; Tim Beaumont, The Beaumont Partnership. 4) Toshio Goto, CEVA Logistics; Sareeya Sirichatrawong, Manarco Recruitment. 5) Duangpon Prempree, Servcorp; Natnaree Uriyapongson, Servcorp; Rakchanok Tiwa, Servcorp. 6) Josh Hyland, AustCham Director, AEC South East Asia; Niorn Maneesint, AEC South East Asia; Malik Benaissa, Nutrition Depot. 7) William Vaughan, Capital Television Group; Brenton Mauriello, AustCham Director, dwp; Raine Grady, Capital Television Group. 8) Simon Moran, Manheim Asia Pacific; Vincent; Brenton Mauriello, AustCham Director, dwp; Carolyn Keeling, dwp; Nicholas Henley,Talent Technologies (Asia). 9) Richard Jackson, RLC; Matthew Slater, Peppercan; Eddy Bellavoine, Peppercan; Branislav Balaz, Kone; Craig Tuazon, Infinity Financial Solutions. 10) The Beaumont Partnership. 11) Rafal Furdzik, DNNDirect Software Development; Larry Kessler, Caelan Wright Asia; Leigh Scott-Kemmis, AustCham President, DBM Thailand.

12) Achara Boonyahansa, Grant Thornton; John Anderson, AustCham Past President, Meinhardt; Trisak Lertsakwattana, Thai Australian Association. 13) AustCham Staff. 14) Rafal Furdzik, DNNDirect Software Development; Panadda Khamparat, RSM Advisory; Amy Byrum, RSM Advisory; Shane Torr, AustCham Past President, PeopleServe Asia. 15) Nichapa Mahuemuang; David Armstrong, AustCham Honorary Member. 16) Belinda Skinner, AustCham Vice President, TopTalentAsia; Karen Hochhauser, APM Group, Lynda Calver, Infinity Financial Solutions; Abigail Evans, Meinhardt. 17) Malik Benaissa, Nutrition Depot; Mariano Ordonez, Infinity Financial Solutions; Nitichai Vudjakorn, Smart Living Bangkok; Leanne Pamintuan, Sandee Thai Language School.

AustChamThailand Advance

April 2013

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members’ changes

Change of Representative • Mr Bob Averest, Manager of Thailand is a new representative of Qantas.

• Mr Timothy Jones, Vice President Business Development is a new representative of PeopleServe Asia Ltd. • Mr Thanawat Leungsuriya, Managing Director is a new representative of STA Travel Co., Ltd • Ms Worawan Wirungruangkul,Manager is a new representative of Deloitte Touche Tohmatsu Jaiyos Co., Ltd. • Mr Chakkarin Prinyasart, Engineering Services Manager is a new representative of Invensys Rail Pty Ltd. • Mr Dirk Bodschard, Senior Sales Manager is a new representative of MyWellcard Pte Ltd. • Mr Alexander R Blair, General Manager is a new representative of Oriental Residence Bangkok.

AustCham Bronze Corporate Sponsor: Servcorp

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April 2013

AustChamThailand Advance

From the Chamber Office

Message from the Executive Director

T

Wednesday 3 April Bangkok Sundowners

he Annual General Meeting (AGM) is always a big event for the AustCham office. As well as requiring a lot of careful organisation (including so we meet our obligations under the Thai Chamber of Commerce Act) the AGM, of course, decides our top-level management for the year ahead.

18.30-21.30 Venue: VIE Hotel Community Service Sponsor: Gift of Happiness Foundation Monday 8 April AustCham office closed in honour of Chakri Day

This year’s AGM was a big one. We introduced several innovative improvements to the AGM processes. The real news, however, was that with five new Directors we have a substantially new Board! We also have a new President, Leigh Scott-Kemmis. Congratulations to all those elected, and particularly to Leigh.

This year saw the highest participation ever in an AGM. As a result of the innovations we introduced it was also the most efficient, accountable and democratic. There were 154 ballots allocated, a nine percent increase on the 2011 benchmark (there was no vote in 2012). Fifteen percent of voters elected to receive postal votes, compared to just two percent in 2011. The percentage of votes that were cast by proxy this year was also lower than in 2011. The changes we made to the processes increased members’ ability to exercise their right to elect a board of their choosing. Clearly they embraced that opportunity, and I think that’s a very healthy sign.

Our thanks go to the Australian Embassy which– under the ever-watchful eye of Amelia Henty – scrutinised the vote count again this year. For the first time we completed the tally electronically, entering the votes into a Survey Monkey template. As well as reducing significantly any margin for error, the electronic tally was much quicker to administer. Our old process was literally scratches on a piece of paper. Considering that with 154 ballots there could have been 1,848 individual scratches, I’m glad we decided to switch to a more robust counting system!

I am very much looking forward to working with the new Board of Directors. It is an impressive cross-section of the Australian-related business community in Thailand. One of the first items I will be asking the Board to consider is whether AustCham submits a grant application for the Australian Government’s recently announced Asian Century Business Engagement Plan.

Some members may recall that in AustCham’s submission to the Asian Century White Paper we recommended the Australian Government develop a model to financially assist Chambers of Commerce that were already operating onthe-ground in Asia to promote Australian Business. At the end of last year when the Asian Century White paper was announced, it included such a model, called the Asian Century Business Engagement Plan grants. It also included fund-

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April 2013

Calendar of Events

Thursday 11 April Joint Songkran Networking Event

20.00-23.00 Venue: Q Bar Bangkok’s new Le Derriere French Bar ing of $AU 1.5 million per year. We were a little nervous when the draft grant guidelines were released in early 2013. As they were then formulated AustCham would not have been eligible to apply for a grant. But we recommended some changes, and they were broadly accepted.

The bottom line is that the funding model AustCham suggested for Chambers in March last year is now a reality. That’s not a bad time-line in bureaucratic terms.

Winning a grant and accepting money from the Government would be a big responsibility for AustCham. It’s not something we would want to enter into lightly. Nonetheless, one concept being considered is for AustCham and our Australian counterpart – the Australia Thailand Business Council – to apply for a grant to jointly administer an Australia-Thailand Regional Business Promotion (ATRBP) program and alliance. This would have two prime elements: a new high-level forum (the Australia-Thailand Regional Business Promotion Alliance forum - ATRBPA) to bring together key stakeholders to promote the Australia-Thailand business relationship; and a series of aligned initiatives that over the short- to medium-term would promote Australian business (particularly small and medium sizes enterprises) in Thailand and, through it, the greater Mekong region.

Monday 15 – Wednesday 17 April AustCham office closed in honour of Songkran Wednesday 24 – Thursday 25 April ANZAC Day and Visit to Wat Putakian Kindergarten

18.00-21.00 Location: Wat Putakian Kindergarten / Hellfire Pass

Thank you to March sponsors:

The period to fully develop the concept and to submit a grant application is a relatively short. If any members would like to contribute to the idea – or learn more about it – we’d of course welcome hearing from you.

Mark Carroll Executive Director, AustCham Thailand www.austchamthailand.com

AustChamThailand Advance

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