Advance January 2014

A MONTHLY PUBLICATION OF THE AUSTRALIAN-THAI CHAMBER OF COMMERCE IN PARTNERSHIP WITH THE AUSTRALIA THAILAND BUSINESS COUNCIL www.austchamthailand.com January 2014

AustCham Thailand 2013 President’s Award

in this edition

Private Debt, Public Problem Australian business forum EMBASSY NEWS AND UPDATE dwp’s Rollercoaster Story Austrade Thailand Opens the Door to a World of Opportunities

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AUSTCHAM AWARDS AustCham Thailand Recognition Award

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Chamber events Christmas Sundowners at the Australian Ambassador’s Residence

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specialist mortgage

specialist mortgage

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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 M.L. Laksasubha Kridakon Baan Laksasubha Resort Hua Hin Belinda Skinner TopTalentAsia TREASURER Warwick Kneale Baker Tilly Thailand Limited DIRECTORS David Bell Crestcom-Ra-Kahng Associates Ltd.

10 business briefs 6 Private Debt, Public Problem 8 Next Generation of Thai Industry: Strategies to Drive the Future

AUSTRALIAN BUSINESS FORUM 10 dwp’s Rollercoaster Story 12 Southeast Asia: E-Commerce Goldmine

EMBASSY NEWS AND UPDATES 16 Austrade Thailand Opens the Door to a World of Opportunities

AUSTCHAM AWARDS 18 AustCham Thailand President’s Award

18 AustCham Thailand Recognition Award chamber events 20 Gadget Night – Joint Networking High-Tech Style!

22 AustCham Visits Bayer Thai in Map Ta Phut Industrial Estate, Rayong 24 ESB Christmas Sundowners 26 Christmas Sundowners at the Australian Ambassador’s Residence

AUSTCHAM MEMBERS 28 New Members

From the Chamber Office 30 Message from the Office

Josh Hyland AEC South East Asia Co., Ltd. Brenton Mauriello dwp Sam McMahon NS Bluescope (Thailand) Limited Alan Polivnick Watson, Farley & Williams (Thailand) Limited Rananda Rich Blackmores Ltd. 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

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Harry Usher Lady Pie Phuket Coordinator Email: phuket@austchamthailand.com

From the Board

President’s Message 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 For more information on individual Board Member focus please visit www.austchamthailand.com/ boardmembers

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elcome back to another year at AustCham. I hope you all had a pleasant Christmas and a happy New Year. Now that we have had our welldeserved break and are full of energy, we plan to hit the ground running, carrying with us the momentum we built in 2013.

Last year was certainly a big one. We broke a raft of records including the highest number of AustCham members ever; the best sponsorship year ever; the biggest Sundowners (467 guests); and the most community services funds raised in a year.

Editorial Committee Belinda Skinner, Rananda Rich, Janna De Vos, Gary Woollacott 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 communications@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

Likewise, November and December were exceptionally busy months for AustCham.

We held two very successful Australian Business Forum (ABF) events, one in Phuket and one in Bangkok. We joined the American, British and New Zealand chambers in a joint-networking ‘Gadget Night’ which showcased some of the latest technology. We welcomed our new Executive Director (ED), Renee Bowman, and said farewell to our outgoing ED, Mark Carroll. We held two Christmas Sundowners, one in Bangkok and one on the Eastern Seaboard. We went on a trip to the Bayer Map Ta Phut plant. And, on top of that, we hosted the AustralianAlumni end of year cocktails. You can find photos and coverage of all of these events in this month’s magazine.

At Christmas Sundowners I had the honour of presenting the 2013 AustCham President’s Award to the Australian Ambassador to the Kingdom of Thailand, HE James Wise, and his team at the Australian Embassy in Bangkok. The Chamber has benefited from an extraordinarily active focus by the Ambassador and his

team on Australian-Thai business. I look forward to continuing to develop the strong relationship between AustCham and the Embassy in the coming year.

On behalf of the Board of Directors, I would like to thank all AustCham Members for their continued support in 2013, both financial and through your engagement with the Chamber’s activities. Similarly, the support of our Annual Corporate Sponsors is invaluable. We look forward to revealing a new sponsorship line-up early in the new year. If you are interested in partnering with the Chamber as a sponsor, please do not hesitate to contact our new ED, Renee.

This month’s Advance magazine focuses on ‘productive investment’. It is a topic particularly relevant to Thailand, both because Thailand has benefited substantially from such investment over the past decades, and because of the challenging decisions Thailand faces. The year is beginning with some uncertainty and unease. Recent history tells us that business in Thailand for the most part marches on regardless. There is no reason to believe that will change fundamentally, although it may be too early to tell if significant investment decisions have been deferred or re-directed and whether the current uncertainty will have any lasting impact on the Thai economy. Let us hope that conditions in 2014 are ones that allow Thailand to reach its full business potential.

Leigh Scott-Kemmis President, AustCham Thailand www.austchamthailand.com January 2014

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business brief

Private Debt, Public Problem

By Mark Carroll and Janna De Vos

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hen the global financial system faced catastrophic collapse in 2008, policy-makers and financial executives alike claimed that no one could have foreseen the crisis or the scale of its effects. A few economists did, however, predict the GFC – or global economic crisis – as it is now known. Amongst them was Australian Steve Keen, Professor of Economics and Finance and author of the controversial book Debunking Economics.

Keen warned of mounting crisis conditions as early as December 2005. His broader concerns with international economic stability go back to at least 1995.

Keen’s economic arguments focus on the failures he sees in conventional economic theory – arguments that are gaining traction amongst a mainstream audience. That is not to say that economic theory in the main has shifted. Economic teaching and policy advice continues to be dominated by conventional thinking. This, according to Keen, is why nations found themselves in a global economic pickle in the first place. It also explains why they are having such difficultly finding a way out.

One of Keen’s most strident criticisms of conventional economics is the role of private debt (in other words, the combined debt of individuals, households and organisations other than governments). By ignoring it, he argues, mainstream economists deem banks irrelevant. They view loans as mere transfers from ‘saver’ to ‘borrower’.

Thus, any change in the level of private debt – in their view – has no inherent macroeconomic impact and is considered not relevant to gross domestic product (GDP).

Paul Krugman, a leading conventional economist and popular New York Times columnist, describes it as simply a transfer of money from the ‘patient’ saver to the ‘impatient’ spender.

Keen believes that ignoring the role of private debt in an economy is both foolish and dangerous. Excessive private lending generates debt-driven consumption and investment. This adds to an economy’s

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performance. Thus private debt – and, crucially, the rate at which it accumulates – becomes an intrinsic component of GDP. Keen believes that conventional economic models fail to account for this ‘endogenous’ creation of money and, therefore, misrepresent the true health of an economy.

This is not to say that all debt is bad. When debt finances a productive investment (in a new highway or innovation, for example), then it can make a valuable contribution to a growing economy. As this ‘good’ debt grows, it contributes to GDP growth by financing investment. ‘Bad’ debt, however, finances asset price speculation and excessive consumption. During booms, it grows faster than GDP and often results in abnormal financial sector profits. In essence, this debt creates Ponzi-type economic growth that inevitably implodes under its own weight. Keen would point to boiling Australian housing markets as an example. Though”, he said, “this continues to be stoked by new sources of Ponzi finance, now including self-managed superannuation funds taking levered punts on property prices and calling it investment for their retirement.

By recognising the role of bad private debt in an economic system, Keen believes

post World War II economic crises, including the Great Depression and Japan’s crisis in the 1990s, are not only explainable but foreseeable. The problem begins when an economy becomes overly reliant on private debt as a driver of economic growth.

The rapid accumulation of debt funds consumption and speculative investment.

This inflates prices and creates asset bubbles. When a bubble bursts, the economy is then hit by a double-whammy – first by the large fall in asset prices; and second by the rapid deceleration in debt-driven consumption and investment.

In western economies – particularly the United States, Europe and Australia – governments have fought back against such economic turmoil with extensive government intervention. While the growth of private debt (and, therefore, its stimulating effect on the economy) has declined, public debt has exploded as governments attempt to keep economies buoyant.

However, according to Keen, high government spending alone is insufficient – it treats the symptoms but not the disease.

Difficult structural adjustments are, in fact, required.

Keen argues that if afflicted economies want to avoid decades of low growth – as has been experienced by Japan – then levels of private debt must be reduced.

Doing so would require governments to systematically cancel debt and embark on a a deliberate process of deleveraging process of deleveraging. He points out that such measures are a political nightmare and, therefore, highly unlikely to eventuate. These economies are, therefore, likely to face years – perhaps decades – of low, even stagnant, economic growth.

Japan is a national example of what Keen says is unfolding on a global scale. When Japan’s bubble burst in the late 1990s, private debt had escalated to a shocking 220 per cent of GDP. In response to the crisis – and in the hope of resuscitating the economy – the Japanese government followed a traditional approach to crisis management by running large government deficits and, on one occasion in

AustChamThailand Advance

business brief

2002, radically increasing money supply (which drives down interest rates and subsequently encourages further borrowing).

More than a decade later Japan’s economy continues to oscillate around stagnant economic growth and is effectively in the midst of long-running low-level depression.

The Central Bank of Thailand has already warned about a possible credit bubble and risks to financial stability. There are concerns about Thailand’s sluggish economic growth and the effect this may have on the sustainability of household debt. There are also worries about the government’s budget deficit.

AustCham Thailand spoke briefly to Keen about emerging markets during his recent visit to Bangkok. While emphasising that he is not an expert on emerging market economies, he clearly had concerns about the accumulation of credit bubbles in this region.

In Thailand, private debt has skyrocketed since the Asian crisis in 1998. Loans to the private sector have increased over 50 percent in just three short years. Thai household debt has grown at a rapid 13.6 percent per year since 2008, raising the household debt-to-GDP ratio to 77 per cent. At this level, Thailand now has one of the highest household debt-to-GDP ratios in the whole of Asia!

There is growing concern about the ability of Thai households to repay their increasing debt. Over the past three years, the debt-service ratio (the ratio of required debt payments to disposable income) has increased from 30 to 34 percent. For lowincome households, this ratio is a massive 62 percent. In other words, debt accumulation of Thai households has increased at a much faster rate than income – raising the debt burden significantly. The trend is particularly worrying because it is widely believed that ratios above 40 percent expose households to excessive financial risk.

To make matters worse, some experts are saying that Thailand’s credit bubble is accompanied by a growing property bubble. According to Bank of Thailand statistics, prices of condominiums and townhouses increased 9.4 and 6.9 percent respectively in the first quarter of 2013.

In the same period, total transactions for land and buildings increased by 35.3 percent, reaching a total value of THB 219 billion. Total outstanding property credits increased by a dramatic 13.3 percent.

These figures not only show that property demand in Thailand is rising fast, but also that more property is being acquired on the basis of credit (private debt). Most of these new mortgages are concentrated at the lower end of the Thai housing market.

Past experience – particularly the American housing bubble prior to the GFC – suggests that such markets are particularly susceptible to bursting property bubbles.

If they were to follow Keen’s advice, Thai policy-makers should start to consider writing off large amounts of unrepayable household debt. Such measures are, however, drastic to the point of being impossible to implement. If nothing else, loans should be made less attractive to reduce debt growth.

But this also presents a wicked conundrum –reducing debt growth in such conditions also slows economic growth. Thus, as the Thai Finance Minister has argued, keeping interest rates high and reducing government stimulus will hurt the Thai economy.

Thai policy-makers face a difficult balancing-act to contain debt accumulation while sustaining economic growth.

The good news for Thailand is that it has many opportunities for productive investment, rather than asset inflating speculative investment. Thailand’s already robust manufacturing base has significant room for growth. There is broad scope to innovate away from labour intensive production to higher valued added processes.

Productive investment – in innovation and technology, human capital, infrastructure and the like – is the best prescription for sustainable economic growth. No doubt Keen would applaud such an approach as helping Thailand to avoid the debtgrowth addiction that is debilitating other economies.

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January 2014

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business brief

Next Generation of Thai Industry: Strategies to Drive the Future

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n 3 October 2013 the Office of Industrial Economics (OIE), under the Ministry of Industry, hosted the OIE Forum. The forum was presided over by the former Ministry of Industry and Deputy Prime Minister Suwat Liptapanlop, who also shared his views on trends of future Thai industry.

Industry Minister Prasert Boonchaisuk delivered the special keynote address entitled “Next Generation of Thai Industry”, accompanied by other distinguished speakers.

Speaking about the upcoming AEC and global change factors, Minister Prasert presented strategies to drive Thai industry into the future while pushing attempts to support Thai SMEs and other established industries to catch up with global industrial and economic trends. Major changes, such as globalisation, trade liberalisation, climate change and geographic change will affect Thailand’s future economy, as well as its social and environment direction.

Under these circumstances, the Ministry of Industry established guidelines for its 20 Year Master Plan of Thailand’s Future Industrial Development during 2010-2029. The vision is to attain inno-

vative, well-balanced, and sustainable industries, which are divided into three phases: 1.

Knowledge-based industry 2014), Innovative Industry

(2010(2010-

2019) and Sustainable Industry (2010-2029). Each phase has a clearcut theme. The first phase is about “Preparation for the AEC.” This 5-yearperiod will use fundamental knowledge to improve relevant regulations, lay down an efficient raw materials/ labour structure, drive R&D efforts, develop industrial clusters, and create an ASEAN supply chain.

2. Becoming a Recognized ASEAN or Regional Supply Chain Manager, is a continuous development from the knowledge stage to the technology stage by using more advanced technology and innovation in the products and services sectors. In the meantime, upgrading manufacturing standards for the agricultural sector is also a focus as it can add value to agricultural products while emphasizing the use of an eco-friendly manufacturing system.

3.

The third phase, “Thai Brands to Shine in Global Market” will support

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AustChamThailand Advance

business brief

Thai entrepreneurs and promote Thai brands to achieve global standards and wide recognition.

Under the Thai Government’s policies, the concept of Thai industrial development is to: First, connect the country to the region and the world by expanding logistics networks and strengthening efficient management, creating a strong infrastructure in order to become a manufacturing base and regional supply chain. To attract more investors, the Thai government also is exploring new economic areas for investment, especially in the border trade area. It is also looking at new industrial estate development in each region in Thailand, such as the Chiang Khong Industrial Estate, Northeastern Estate, and SMEs Estate. Also, the road expansion from Bann Pu Nam Ron to Dawei Port is now proceeding.

Second, the application of technology integrated with knowledge will create sustainable development. This approach focuses on the promotion of OTOP or SME products by using cultural capital and local wisdom for commercial purposes, while promoting R&D and innovation in manufacturing processes in response to market demand.

Other industries include food, fashion and eco cars.

industrial town can be formed and benefit every party.

Third, to ensure Thai industries are balanced amongst economic, social, human development and environment considerations the Government encourages entrepreneurs to take part in the Green Program to attain Green standard levels according to the Green Industry concept. This is to remind the entrepreneurs to carefully operate their business with concern for the community and surroundings as they have to rely on each other and live together. Finally, the eco

It is believed that if all stakeholders, both private and public, cooperate and strongly support each other it will eventually drive the next generation of Thai industry towards more stability and reliability in a sustainable manner.

The Ministry of Industry provided full support to entrepreneurs with databases and relevant information related to the industrial sector. The ministry staff act as facilitators and is ready to cooperate with Thai SMEs and investors to strengthen Thai industry and increase competitiveness in a global competition.

This article was originally published in Thailand Investment Review (TIR), Volume 23:11. TIR is a monthly publication of the Thailand Board of Investment (BOI).

AustCham Bronze Corporate Sponsor: ASIAN TIGERS

AustChamThailand Advance

January 2014

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AUSTRALIAN BUSINESS FORUM

dwp’s Rollercoaster Story

By Mark Carroll and Janna De Vos

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ll businesses face challenges from time to time. They might be hurdles that are taken in stride; or crises that pose an imminent threat to business survival. Either way, says Brenton Mauriello – Chief Executive Officer (CEO) of top design firm dwp – the difficult times are the ones that let the true character of a company shine. And it is not just the decisions made that can be make or break. The tone set by company leadership, and how you manage day-to-day frustrations, is crucial – particularly in an international company like dwp.

As a nineteen year veteran of business in Thailand, Mauriello should know – during that time he’s faced more than a fair share of political turmoil, economic emergencies and natural disasters. Speaking at the Australian-Thai Chamber of Commerce’s inaugural Australian Business Forum (ABF) in Phuket, Mauriello shared the lessons he has learnt during what he describes as his ‘roller coaster’ experience of doing business in Thailand.

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The genesis of dwp as a company was, in fact, a crisis response. Originally established as City Space by two Australian entrepreneurs, the 1997 Asian financial crisis hit the company hard. The survival strategy was a fundamental change in business model to diversify and expand market reach through an alliance structure, while simultaneously boosting brand recognition. Five like-minded companies, all facing similar difficulties, thus became Design Worldwide Partnership. At first, the individual companies leveraged common processes, policies and an integrated IT system. As brand value grew, the alliance transitioned to a single integrated company under the name of dwp, with Australian-born Mauriello as CEO. The diversification strategy served dwp well when the global financial crisis (GFC) began to bite in 2008 – though there were painful times. Many of dwp’s competitors were hit harder because their work was concentrated in a few markets. dwp, on the other hand, was able to build on its brand reputation to secure new investment and expand even further, including to markets in the Middle East. In March 2013, dwp formed

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AUSTRALIAN BUSINESS FORUM

a strategic partnership with Australian architectural company Suters to create dwp|Suters in Australia. The collaboration strengthens both companies, bringing Suter’s architectural expertise together with dwp’s design know-how. It allows them to offer one-stop integrated design services throughout Asia and the Middle East.

Good business strategy decisions such as dwp’s diversification and brand building approach are, of course, vital to business success. Mauriello argues, however, that the tone-at-the-top and culturally sensitive management of everyday challenges are just as important. Strong leadership, he says, is essential – and it must be enthusiastic, personal and flexible. Thai workforces are typically comfortable with strong organisational hierarchies. They generally prefer it when company leaders provide clear directions or, even better, detailed instructions.

Some would argue that such qualities are universal, but Mauriello says that there are important subtleties in Thailand that foreigners frequently misunderstand.

The seemingly small things can make a big difference. The traditional Thai ‘waay’ (greeting gesture), for example, is much more than a simple “hello”. Its origins are deeply entrenched within Thai culture and foreigners often do not understand its hierarchical significance. Mauriello admits that even after two decades of living in the country, some of the cultural subtleties remain a mystery to him. In business, it is not necessary for foreigners to fully understand them, but it is crucial to appreciate that they exist and demonstrate to Thai colleagues and friends that you are open to learning more about them.

Acknowledging and respecting cultural differences is key to effective business in Thailand.

Human capital, says Mauriello, is sometimes mentioned as a challenge for international businesses in Thailand. Some criticise the Thai workforce for lacking skills, intuition and the ability to think ‘outside the box’. He believes that such views often reflect a lack of understanding of how to capitalise on Thai strengths. With a Thai workforce, it is important to be clear about your expectations, communicate effectively and continuously, provide frequent feedback and positive reinforcement, and to give a lot of attention to the details.

Thailand’s legal environment and bureaucracy are also an occasional source of headaches for businesses. On this, Mauriello says it is important to remember three points. First, regulation and bureaucracy generate challenges in every country. Second, the environment in Thailand has significantly improved even in just a few years – and getting better.

Establishing a business, for example, is typically just a matter of finding a reputable lawyer or business advisory firm and following the rules – much as you would in Australia. Finally, if you do hit bumps in the bureaucratic or legal road then it is important to remain calm. Keep smiling and don’t lose your cool. A polite smile can go a long way in Thailand whereas a lost temper can irretrievably damage a business relationship.

Mauriello acknowledges that corruption is sometimes part of the landscape in Asia, including Thailand. For businesses like his, however, it is not a major concern. Again, it is important

AustChamThailand Advance

that management and corporate leaders set the right tone against corrupt practices. A simple (and sometimes persistent) “no” combined with a calm temper is often all that is required. A single “yes”, on the other hand, can lead to ongoing demands.

On corruption in Thailand more broadly, Mauriello sees a much improved – and still improving – environment. The business community is increasingly objecting to corrupt practices and leading a forceful anti-corruption charge. Important anti-graft institutions have been established and becoming stronger.

Ultimately, however, Mauriello stresses that it is an individual and corporate choice of whether or not to engage in corrupt practices. He believes companies have a moral and business responsibility to fight corrupt practices.

Whether it be the 2003 SARS epidemic, 2011 Bangkok mega-floods, riots, coups, political instability or just the dayto-day trials and tribulations, Mauriello and dwp have faced some difficult challenges. Overcoming them, however, has strengthened the business and its leaders. Ironically enough, it was responding to the tough times that allowed dwp to develop the character and capability to become an awardwinning design company with global reach.

January 2014

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AUSTRALIAN BUSINESS FORUM

Southeast Asia: E-Commerce Goldmine

By Mark Carroll and Janna De Vos

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ere‘s a little known secret: Thailand is an e-commerce goldmine. In fact, e-commerce is poised to boom across Southeast Asia as consumers and businesses increasingly purchase their real-world goods via virtual means.

Adrian Vanzyl, CEO of Ardent Capital, is one of the few that has begun seriously prospecting in this largely untapped market.

Encouraging others to join the rush, he shared the story of his success – and his enthusiastic outlook for e-commerce – at the second Australian Business Forum (ABF) luncheon in Bangkok.

Now a tech start-up veteran, Vanzyl began his career after graduating in medicine from Monash University, Melbourne.

He went on to become a lecturer and researcher in medical informatics. Fascinated by the potential of technology and the power of information, he was soon drawn to the cyber frontier via Sausage Software, the first ever Australian internet company to be publicly listed. Its market value peaked at $1.5 billion.

Building on the Australian Success, Vanzyl moved on to the proven but ultra-competitive grounds of San Francisco’s bay area, the home of Silicon Valley and where some of the world’s largest technology corporations mix with thousands of small start-ups and entrepreneurs. After repeating the success of Sausage several times over – and with a nice bounty of capital in the vault – Vanzyl and his partners began surveying for new opportunities. Southeast Asia quickly stood out as having windfall characteristics.

With Vanzyl as founding CEO and Board member, Ardent Capital was established and given the singular purpose of investing venture capital in Southeast Asian tech companies whose founders and primary customers are in Southeast Asia. Ardent is headquartered in Bangkok and has offices in Singapore and Indonesia. The company has grown at an astonishing rate, says Vanzyl. It has made seven investments in the past 24 months and now employs 100 people in Bangkok and 300 across the region in these portfolio companies.

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In an eye-opening and data-driven presentation to the Australian Business Forum (available for download via AustCham’s ABF LinkedIn page), Vanzyl set out the evidence of why he and Adrent Capital believe that e-commerce is set to explode in Southeast Asia, and why Thailand is the ideal base from which to set the spark.

He cautioned, however, that traditional e-commerce models were not fully applicable to the Southeast Asian environment. Success required an appropriately tailored approach.

Looking at the e-commerce potential of the region, Vanzyl points to a rare convergence of rising disposable incomes, booming internet penetration, rapid smartphone growth, widespread usage of social media and increasing popularity of credit cards. Meanwhile, economic integration facilitated by agreements such as the ASEAN Economic Community (AEC) provides a combined market of 600 million consumers and an increasingly free flow of goods.

In contrast to markets like the United States where television remains dominant, the internet is already the number one media choice in Southeast Asia. Internet penetration is expected to

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AUSTRALIAN BUSINESS FORUM

double to 360 million users by 2020. Smartphones sales are projected to grow at a compound annual rate of 43 percent from 2008 to 2016, reaching 59 million units in 2016. Amongst global internet users, Southeast Asians spend the highest share of their online time on social networking and media sites.

Messaging programs are taking the region by storm. The ‘Line’ communications app registered 20 million users in Thailand alone in a single year. Thailand is also home to some of the most Instagrammed locations globally, including Suvarnabhumi Airport, Terminal 21, and Siam Paragon. Bangkok has the most registered Facebook users anywhere in the world.

Vanzyl points out that Ardent isn’t the only digital prospector that sees potential in Southeast Asia. On-line retailing in the key markets of Indonesia, Malaysia, Philippines and Thailand has grown six fold since 2005. Larger tech companies are acquiring start-ups at high values, with 53 tech acquisitions – or ‘exits’ – in the same period.

Industry investment is inflowing swiftly on the back of projections of more than US$ 17 billion of branded and direct consumer e-commerce in Southeast Asia in the next three years. Techgiants such as Rocket Internet – whose investors include heavyhitters like J.P Morgan Asset Management, Holtzbrink Ventures and Summit Partners – have pumped almost US$ 450 million into the regional market. Rocket’s Lazada on-line retailing platform is set to displace Amazon.com as the local preference.

For Ardent Capital, Thailand is the ideal base camp for its Southeast Asian focus. Vanzyl describes it as following the ‘Goldilocks principle’. Thailand presents many of the challenges an e-commerce start-up is likely to face in Southeast Asia’s developing economies, but it also had a sophisticated and enthusiastic consumer market and a welcoming business environment. Singapore is an easy place to establish and run a business but is small and unlike much of the rest of Southeast Asia. Indonesia is highly complex and risky. Thailand is ‘just right’.

It presents the right environment for learning how to succeed in e-commerce in Southeast Asia – and to prosper in the process.

Ardent’s Thailand-first strategy is crucial, according to Vanzyl, because e-commerce in Southeast Asia is notably different from traditional markets. It remains relatively under-developed and 14

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involves substantial risks. There are language barriers to overcome as well as differences in human capital, infrastructure, payments, and logistics. Payment on delivery remains the norm; the sums involved often many times the monthly salary of the delivery driver. Consequently – and in a major departure from his previous start-up experience – Vanzyl finds himself the proud builder of warehouses and operator of a fleet of motorcycle delivery drivers – hardware that would be an anathema in Silicon Valley!

Vanzyl cautions that diversification is important in such an environment. Ardent’s approach is to progress multiple projects in a way that leverages common knowledge and infrastructure. For example, Ardent Capital recently helped to launch aCommerce. com, a company that facilitates on-line sales of branded goods and helps traditional ‘bricks and mortar’ shops to add a cyber-shopfront. The business addresses a lack of logistics infrastructure that has hitherto hampered e-commerce sales. It offers full end-to-end solution services from building websites to warehouse storage, customer service, delivery of products and everything in between. Still in its infancy, the company already has a list of high-profile clients, including the likes of L’Oreal Thailand, LINE Chat, dtac and Australia’s own Blackmores.

Ardent Capital has also launched a vertical e-commerce company called WhatsNew. It specifically targets the sale of bulky and inconvenient – but essential – home products. Petloft. com, for example, is a website that sells pet food and care products and is just one of WhatsNew’s initiatives. In the space of five months, it has become the number one online retailer of pet products in Thailand.

Ahead of the pack, Vanzyl and his colleagues at Ardent Capital are enjoying a landscape of relatively few competitors. They have the opportunity to be amongst the first to adapt traditional e-commerce models for Southeast Asian success. The opportunities abound, says Vanzyl, and calls for thinkers with the skill to recognise the differences of operating in Asia, and the creativity to overcome them. It’s an exciting time and the word is spreading. Large international investors from Japan and the US are starting to circle, their eyes on the rich veins that frontiersmen like Vanzyl seek to uncover.

AustChamThailand Advance

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EMBASSY NEWS AND UPDATES

Austrade Thailand Opens the Door to a World of Opportunities

By Mark Carroll and Janna De Vos

A

lthough Ben Giles has only been an Australian Trade Commissioner in Thailand for a few months, he’s hit the ground running. Given the heavy program of activity being managed by the Australian Trade Commission (Austrade) office in Bangkok he didn’t have much choice! Ben briefed AustCham members and friends on Austrade’s priorities at the inaugural Australian Business Forum (ABF) gathering in Phuket.

Austrade is responsible for Australia’s trade and investment development. As an Australian Government agency, it aims to create value for the business sector by generating market information and insight, promoting Australian capabilities, developing policy, making connections, and providing quality advice and services. Austrade is a global network, with 15 offices in Australia and over 50 across the rest of the world.

Thailand is a busy market for Austrade.

Its main focus is on assisting Thai companies to source products and services from Australia; attracting productive direct investment into Australia; and promoting Australian education to Thai students.

Developing the Thai-Australian trade and investment relationships is important to Australia’s economic prosperity. With total bilateral trade valued at A$ 19 billion, Thailand is Australia’s ninth largest trading partner. An estimated 300 Australian companies are currently operating in Thailand.

Thai companies have also started to move into the Australian market, ramping up the value of Thai investment flowing into Australia. In fact, Thai investment flows into Australia are stronger than those in the opposite direction. Promoting a stronger investment relationship is one of Austrade Thailand’s main goals.

Austrade is highly active in the auto and advanced manufacturing industry. Thailand is without a doubt an important player in manufacturing. It houses over 20 Australian Tier 1 and Tier 2 auto industry suppliers. Austrade Bangkok is on hand to assist

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any Australian parts companies considering the Thai market. Indeed, Austrade has launched a number of initiatives, such as the Automotive Skills Development Mission and the Victorian Automotive Market Mission, to further promote manufacturing ties between Australia and Thailand. The Thai marine sector is also growing rapidly, providing opportunities for greater trade cooperation in this particular industry.

Austrade is also looking to create stronger Australia-Thai connections in the energy and resources industry. In March 2014, it will hold an Energy Series in Thailand, focusing on energy security, energy efficiency and oil and gas technology.

Food and agribusiness is another area of Austrade focus. Both Australian and Thai populations have undergone a change in taste preferences with an increasing the demand for quality imported food products. This has encouraged more wheat, cotton and milk powder exports from Australia to Thailand and more rice exports from Thailand to Australia. To improve the trade relationship between the two countries, Austrade endorses food safety and meat handling training, encourages food retail pro-

motions and works closely with the Department of Agriculture, Fisheries and Forestry (DAFF) and the Department of Foreign Affairs and Trade (DFAT) on Special Agricultural Safeguards (SSGs) and import protocols.

Finally, education and training is also on Austrade’s agenda. Education dominates Australia’s service exports to Thailand.

Austrade strongly promotes opportunities in English training, teacher training and institutional collaboration. It also encourages opportunities for specific industry skill development such as automotive and hospitality skill development. Austrade has also built connections with health care providers and relevant officials to facilitate potential future cooperation on elderly care. As the Thai population follows Australia’s population towards an ageing society, Austrade hopes to bring Australian knowledge and experience to Thailand.

With all of these industries on Austrade’s agenda, its role in the commercial link between Thailand and Australia is extensive. It connects the strengths of Australian and Thai businesses with the needs of both, opening the door to a world of business opportunities.

AustChamThailand Advance

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AUSTCHAM AWARDS

AustCham Thailand President’s Award

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ustCham President, Leigh ScottKemmis, was delighted to present the 2013 AustCham President’s Award to HE James Wise, the Australian Ambassador to the Kingdom of Thailand, and his dedicated team at the Australian Embassy in Bangkok.

The President’s Award recognises an individual or organisation that has made a significant contribution to the Australian and Thai business communities, to the relationship between Australia and Thailand, or has substantially facilitated investment or trade between the two nations.

It acknowledges support of the Chamber and its mission.

Over the past three years, Ambassador Wise has been tireless in his efforts to promote Australian business in Thailand.

He and the Embassy team have extended exceptionally strong support to AustCham, particularly as the Chamber has built its focus on business and business issues. Their assistance with the Chamber’s new programs such the AustralianA-

lumni group and new Australian Business Forum (ABF) has been outstanding.

Reflecting on the new Australian Government’s focus on ‘economic diplomacy’, the AustCham President pointed out that

there was no better example of how that term should be applied on-the-ground than in Thailand. The Ambassador and his team have been invaluable advocates for the Australian-Thai commercial relationship.

AustCham Thailand Recognition Award

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his year, AustCham representative and ex-President, Mr John Anderson, presented a special award to Mark Carroll, out-going AustCham Executive Director, in recognition for his exceptional dedication to the Chamber.

member-centric website and member management system, an online handbook, the Australia Thailand Business Study, and the very successful Australian Business Conference. Mark also obtained funding from the Australian government to launch a new and highly active business dimension to the Chamber, known to all as the Australian Business Forum (ABF). This has subsequently expanded AustCham’s influence into the online world, particularly via LinkedIn.

Since joining AustCham three years ago, Mark has played a leading role in helping to transform the Chamber. Joining from a senior position in the Australian federal government, he used his experience and extensive skills to lead AustCham towards excellence. Without a doubt, Mark has been an outstanding Executive Director on all fronts, displaying many qualities of a CEO. His role was not always easy, however. It was often both demanding and challenging.

“With over 420 members” said Mr Anderson jokingly, “there can also be quite a number of problem members to deal with.

But Mark has taken all of this in his stride”.

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Mark also motivated change. Indeed, change is never easy. But using his considerable management skills, Mark transformed the Chamber, and in doing so accomplished remarkable results. Some of Mark’s achievements include a brand new sponsor and

“We have been very fortunate to have a man of Mark’s talents apply such dedication to our Chamber”, said Mr. Anderson.

Mark has been highly devoted, volunteering many extra hours outside of what would normally be expected. “From a personal level”, Mr Anderson concluded, “I would like to think of Mark as a very good friend. He made my time as President much easier.”

On behalf of all of the AustCham members, Board and staff, thank you Mark!

AustChamThailand Advance

SCHOLARSHIPS (aged 16+) The school is proud to announce a scholarship programme for students’ entry to Year 12* (aged 16+) in August 2014 with outstanding achievements according to the Academic criterion.

Deadline for applications: Friday 24th January 2014

www.bkkprep.ac.th/scholarship *Successful Year 12 scholars must remain enrolled until Year 13 completion.

Sukhumvit 53 | www.bkkprep.ac.th | Phone 02-260-7890 Adjacent to Thonglo BTS Skytrain

Accredited and Affiliated with

Scholarships BKKPrep_TAB_178x128mm_FCHP_DEC2013.indd 1

12/4/13 6:33 PM

Chamber Events

Gadget Night – Joint Networking High-Tech Style!

By Alex Taverner

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n 20 November 2013, representatives of the ICT committees of AustCham, AMCHAM and BCCT put on their ‘Gadget Night’ event and welcomed over 300 members of AustCham, AMCHAM, BCCT, NZCTT and TCCC to an evening of networking, catching up with friends and finding out about all the latest and greatest gadgets and tech devices. Taking over the entire Conrad Hotel’s New York and Beverly Hills conference suites, vendors prepared all day bringing in box after box, exciting devices, toys and gadgets.

Microsoft and Nokia displayed their latest phones and Surface 2 devices, Apple showed off their latest and coolest MacBook Air and various iPhone accessories, LG stunned with their new super-high resolution televisions and the 3D Guy blew everyone away with their 3D printer, tablets that provide 3D images without the need for special glasses and demonstration of stereoscopic video recording using GoPros.

Local purveyors of all things gadget, ‘Tank Store’ yet again didn’t disappoint with their fantastic range of high tech torches and camping equipment and were flanked

by Western Digital and Seagate displaying their home data storage and media streaming solutions, Blackberry with their recently released and highly acclaimed Z10 handset, Qualcomm with all things wireless and last, but not least, Kiwi company WaterCloud brought along their amazing machine that makes drinking water from moisture in the air!

We would like to extend out thanks to everyone who came along and provided such great feedback and compliments about the event. We would also like to thank the team from the Conrad Hotel who catered the event and made sure that nobody went home hungry.

It was great to see so many people being really engaged at the various displays and we received updates from a number of the vendors that quite a few orders came about as a result of that night, which is a fantastic result. One of the highlights of the event for me personally, was the somewhat amusing incident with the WiFi controlled helicopter that someone (who shall remain nameless, but wasn’t me) managed to fly into the main chandelier with the resultant ‘Black Hawk Down’ outcome. Thankfully only the erstwhile pilot’s pride was hurt.

There are discussions underway about making ‘Gadget Night’ event an annual occurrence and we have received requests for an Eastern Seaboard event as well, so watch this space for future events.

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AustChamThailand Advance

Austcham Bronze Corporate Sponsor and AustralianAlumni Supporter: Blackmores Thailand

Chamber Events

AustCham Visits Bayer Thai in Map Ta Phut Industrial Estate, Rayong

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ustCham members and friends visited the Bayer Thai production plant in Map Ta Phut Industrial Estate on 13 December, 2013. The afternoon started of wonderfully as Mr Stefaan De Vos, Site Manager of Bayer Thai, and his team invited us to a delicious lunch at a Thai restaurant by the Ban Chang Sea before heading to the production plant.

Most famously known for their aspirin, Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech materials.

With focus on these competencies, the company’s business areas include Bayer HealthCare, Bayer CropScience and Bayer MaterialScience. In all three capacities, Bayer is highly innovative and sets trends in research-intensive areas.

Its products and services are designed to benefit people and improve the quality

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of life. At the same time, it aims to create value through innovation, growth and high earning power.

Bayer is represented in almost every country and employs over 110,000 people world-wide, of which 26,700 are in the Asia Pacific. In 2012, the company generated almost 40 Billion Euro in sales. 47 per cent of this was in Bayer HealthCare, 21 percent in Bayer CropScience and 29 percent in Bayer MaterialScience.

Bayer’s production site in Map Ta Phut is part of Bayer MaterialScience and contributes significantly to the company’s presence in Asia. It mainly produces polyurethanes, polycarbonates and coatings, adhesives and specialities, which are essential parts in the local, regional and global production processes

of automotive and electronic appliances, among others.

As part of the tour, AustCham members and friends got a glimpse of the plant’s high-tech production process. We visited the Research and Development Department, where new products and processes are developed and tested thoroughly. Their equipment is state-ofthe-art and testing procedures highly impressive. We then visited the production and process control department, where we were given a detailed demonstration of how the production process is controlled from a building full of computers.

Bayer’s high-tech production plant was highly impressive. On behalf of all of us who joined the tour, we would like to extend a warm thank you to Bayer Thai for their hospitality.

AustChamThailand Advance

Helping children in Thailand

On the 24th November over 250 handicapped and underprivileged children were taken by the Convoy for Kids team and supporters for a great day out to Safari World. Included were children from The Sri Sangwal School in Pakred, Sister Joan’s project in Klong Toey and kids from the Bang Seu area.

Our thanks again go to our supporters DHL, Ceva, Linfox, Toll, Ceva, Sika, Asian Tigers, Santa Fe, Jelly Belly Candy, Loscam, Volvo, FLS, Sahatham Transport, DBM, JNP Legal, Tipco, Baker Tilly, Volvo, Thai Union Foods and Thana Burin.

Thank you to Clown Eckie who entertained the kids at The Sri Sangwal school who were unable to go on the day out.

Thanks also to the many staff of our sponsors who turned out to help with the kids and make the day go well.

Our thanks to all of our generous supporters

V OLVO Volvo Truck & Bus (Thailand) Co., Ltd

SAHATHAM TRANSPORT

Chamber Events

ESB Christmas Sundowners Friday 13 December 2013 at Amari Orchid Pattaya Held at the beautiful Amari Orchid Resort in Pattaya, AustCham hosted this year’s Christmas Eastern Seaboard Sundowners in conjunction with the American Chamber of Commerce in Thailand (AMCHAM) and the British Chamber of Commerce Thailand (BCCT). Guests were welcomed to a beautiful compilation of Christmas decorations, food and drinks.

The Christmas spirit really came to life when a group of children from the Father Ray Foundation took to the stage to sing a selection of Christmas carols. To top that off, guests were blown away as fireworks of all colours raced into the sky in celebration of the end of the year. We would like to extend a very special thank you to Amari Orchid Pattaya, our venue sponsors, for their delicious catering, wonderful service and continued support. We would also like to thank ANCA, our corporate sponsors, for their contribution and support in making this night possible.

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AustChamThailand Advance

Chamber Events

Christmas Sundowners Wednesday 4 December 2013 at the Australian Ambassador’s Residence This year, the Australian Ambassador to Thailand, HE James Wise, and his wife Teresa once again kindly hosted the Austcham Christmas Sundowners at their beautiful residence in Sathorn. Guests enjoyed a delicious selection of canapés and drinks while mingling among each other. We would like to thank all who joined for your continued support. We would also like to thank you for your continued generous contributions towards our community service program. This year, all proceeds from the raffle ticket sales will go towards the Beaumont Partnership Foundation. We extend a very special thank you to The Imperial Queen’s Park Hotel, our catering sponsor, for spoiling our guests – as they always do – with delicious foods and excellent service. We would also like to thank dwp, our corporate sponsor, for their support on the evening.

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1) Leigh Scott-Kemmis, DBM (Thailand), AustCham President; Mark Carroll, out-going AustCham Executive Director; HE James Wise, Australian Ambassador to Thailand; John Anderson, Meinhardt, AustCham Past President; Brenton Mauriello, dwp, AustCham Director. 2) Pakkapan Kitikun, PTTEP, Chanakarn Lim, AustCham Thailand; Romsamorn Pichayathitinan, PTTEP; Preecha Peomwattanachai ,PTTEP. 3) Tip-Arpa Sapanon, Centara Grand Phratamnak; Kongkeiat Karasuta, Business Research Specialists; Panisara Rattanatham, Business Research Specialists; Puttisarn Mongkolwisetwara, Business Research Specialists; Parkpoom Jitjaeng Business Research Specialists. 4) Simon Landy, Colliers International; Saeed Zaki,dwp; Martin Kyle,Harrow International School; David Armstrong, AustCham Honorary Member

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AustChamThailand Advance

Chamber Events

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5) Dr Veerachai Sachdev;Bangkok Hospital; Claus Padkaer, Bangkok Hospital; Wijarana Satasook ,Conrad Bangkok. 6) Mike Griffis, Harrington Industries Thailand ; Rosanne Diamente. 7) Nicholas Collins, Telsta Global; Andrew Gemmell, Marlo Group; Lynda Calver, Infinity Financial Solutions. 8) Poonsak Kummung, Swissotel Le Concorde Bangkok; Charles Wrightman, Naturalville, AustCham Director; Marcel Sawyere, Swissotel Le Concorde Bangkok. 9) Porntip Utsahaphan, Samitivej; Renee Bowman, in-coming AustCham Executive Director; Apipavadee Putipanpong,ANZ Bank; Prapatpong Weeramon, ANZ Bank. 10) Stuart Winters, Sodexo; Kylie Winters, Sodexo; Porntip Utsahaphan, Samitivej; Wanpen Jatupornwipat, Singapore Airlines.

AustChamThailand Advance

January 2014

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AUSTCHAM MEMBERS

AustCham Welcomes New Members Centara Grand Phratamnak Pattaya 352/430 Moo 12, Nongprue, Banglamung, Chonburi, 20150 Thailand Phone: +6638 306 337 Fax: +6638 306 338 Email: cgpx@chr.co.th Website: www.centarahotelsresorts.com/cgpx

Representatives: Dominique Ronge, General Manager Arpa Sapanon, Director of Sales & Marketing Company Profile: A new luxury property under the Centara Grand brand, located at the southern end of Pattaya at Phratamnak. A few steps from the beautiful beach, this five-star hotel is just 10 minutes from Pattaya city center and less than two hours from Bangkok.

Centara Grand Phratamnak features a stylish design with a dramatic marine themed lobby, Italian luxury furnishings, and a pool and Jacuzzi on the stunning roof-top. The elegant hotel features 165 exquisitely appointed guestrooms, each including a flat-screen television, Nespresso machine, a large balcony or terrace, refrigerator, delicate cotton bedsheets, in-room safe, and rain shower.

Family rooms and suites are available.

Restaurants include Oceana, for allday dining, and the signature Ruffino Restaurant & Lounge, located on the roof and featuring superb views across the bay.

There is also a bakery, fitness centre, concierge, and free internet. A complimentary shuttle service operates to the centre of Pattaya, and transfers to and from Suvarnabhumi Airport can be arranged. Centara Grand Phratamnak is perfectly located for enjoying the attractions of Pattaya, which include a large number of golf courses within easy travelling distance of the hotel.

Products and Services: Hotel/ Hospitality/Accommodation / F&B

Niedax (Thailand) Ltd 62/10 Moo 6, Tambol Samnaktorn Banchang,Rayong, 21130 Thailand Phone: +6638 963 258 Fax: +6638 963 595 Email: info@niedax.co.th Membership Level: Corporate Ordinary Website: www.niedax.co.th Representatives: Tassanai Bumnannophawong HR & Administration Manager Ken Brookes, Managing Director Company Profile: We have been manufacturing and trading in Thailand since 1996. We supply a large range of ORIGINALSTRUT速 products to the global market with huge varieties of application ranging from construction, mining, industrial, offshore, petrochemical, Power Plants, commercial and residential buildings to hospitals and infrastructure.

Products and Services: Our factory manufactures a complete range of electrical and mechanical support systems. All products are manufactured to NEMA International VE-1:2009, AS, BS, ASTM, NZS Standards and ISO 9001: 2008 Certified.

Electrical support systems range from very light computer cables to large High Voltage current carrying power cables used on heavy industrial sites.

Mechanical support systems used in major industrial project sites to support pipes, bracketing on commercial buildings, facades and under floor computer systems etc.

Cable Trays: Light gauge perforated trays supporting light cables. Sizes range from 50 mm wide to 900 mm wide and 2.43.0m in length. Materials used are Hot dipped galvanized steel, Aluminium, Stainless steel, Epoxy painted steel or FRP fiberglass.

Cable Ducting: Light to heavy ducts that can carry multiple cables from Switch boards to source of requirement. Can be made with either quick fitting lids or screwed on lids. Sizes range from 50 x 50 mm to 900 x 900 mm in 2.4-3.0m lengths.

Materials used are Hot dipped galvanized steel, Aluminium, Stainless steel, Epoxy painted steel or FRP fiberglass.

Cable Ladders or Racking: Ladders carry large cables with high power carrying

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capacity, used on all major industrial sites. Ladders come in various strengths depending on loading capacity and in either 3 or 6m lengths. Materials used are Hot dipped galvanized steel, Aluminium, Stainless Steel, Epoxy painted steel or FRP fiberglass.

Strut Channels: Strong forms of supports in many sizes made of Hot dipped galvanized steel, Stainless steel or Epoxy painted steel. There is a multitude of fittings associated with Strut to enable pipes and other items to be supported and retained.

These products are also used on all major industrial sites.

South East Capital Pte Ltd Address: 6/78 1st Floor, Srisoonthorn Road, Cherngtalay, Thalang Phuket, 83110 Thailand Phone: +6681 737 1866 Email: ceo@richmondth.com Website: www.southeastcapital.org Representative: Graham Bibby, CEO Company Profile: South East Capital is a business tailored to the needs of investors in the Australian Property market. We understand that some businesses can neglect the personal needs of investors at various stages of the process and that no one offers an end-toend service throughout your investment journey.

South East Capital have specialized consultants who can give the best advice depending on your needs, at any stage.

Whether it be consulting on various options available to you, advising on your best Finance options or guiding you through the rental process to ensure your property is suitably tenanted and maintained, we are here to assist and advise on your Purchase, Finance and Rental Management.

Telstra Global 414 4/F, CAT Telecom Tower, Charoenkrung Road. Bangkok 10500,Thailand Phone: +662 639 5384 Fax: +662 6395380 Email: General-Asia@team.telstra.com Website: www.telstraglobal.com

AustChamThailand Advance

AUSTCHAM MEMBERS

Representative Nicholas Collins, Head of South East Asia Company Profile: Telstra Global is a leading global supplier of managed network services and international data, voice and satellite services. It is a division of the leading Australia-based, tier 1 telecommunications and media services company, Telstra Corporation Limited. It owns one of the most technologically advanced IP backbone networks in the world.

Telstra provides global telecommunications services and solutions and is an expert in bringing the advantages of customer centric managed network solutions to the business community. Together with its offshore subsidiaries and international investments, Telstra serves many the world’s top companies, spanning Europe, Asia Pacific and the Americas. Telstra Global is ideally suited to provide your IT solutions, with its experience and expertise; security and reliability; trust and financial strength.

Telstra operates award-winning networks which are amongst the largest and most diverse in Asia Pacific. We have operating licences and landing rights in most major Asian markets, the US and EMEA, facilitating access to over 1,400 PoPs in 230 countries and territories.

Ms Sandy Walsh, Cisco 239/36 Soi Langsuan Rajadamri Rd, Lumpini, Pathumwan Bangkok, 10330 Thailand Phone: +6681 081 8774 Email: sandyw@cisco.com Membership Level: Individual Ordinary Ms Jan Drew, JMD Consulting Ltd E-03-02 Seri Maya Condo, Jalan Jelatek, Kuala Lumpur, Malaysia 54200 Individual profile: With seventeen plus years in the Australian higher education sector, my experience covers the entire gamut of the international student experience from marketing and recruitment at exhibitions, through orientation and student support programs, and finally to alumni relations. It has also provided opportunity to work in outbound student mobility, TNE program development and Govt to Govt projects.

My 14 years working in Asia, with the past 7 residing in Kuala Lumpur, together with my past relationship management responsibilities have resulted in extensive networks both within Australia and offshore in SE Asia.

I have now built on these experiences to provide the following:

AustChamThailand Advance

• Development of customised international study tours and field trips, volunteer placements and internship programs in SE Asia through THE GLOBAL STUDENT http://theglobalstudent.net/ • Marketing Consulting, Business Development and Project Management in South East Asia.

• Market Research and Advisory Services for Australian Higher Education, TAFE and Schools Sector.

Transworld Group Ltd Acclaim House, 12 Mount Havelock, Douglas, IM1 2QG, Isle of Man United Kingdom Phone: +61 7 3358 5665 Fax: +61 7 3358 5664 Email: info@transworldgroup.im Website: www.transworldgroup.im

Representatives: Jaime Terauds, Senior Vice President Vic McCluskey, Chief Financial Officer Company Profile: The Transworld Group provides highly personalised global commercial, legal and corporate services to its clients as well as originating and sponsoring its own global ventures, concepts and business undertakings by making full use of its specialist skills, experience, know-how and expertise.

Transworld provides cost effective and practical solutions in the areas of business structuring and development; IP creation, protection and commercialisation; asset management and wealth realisation Products and Services: In addition to undertakings its own projects, Transworld acts as principals and intermediaries in providing commercial, business, legal and corporate services to international enterprises and high ‘net worth’ individuals.

Transworld has a network of international investors, entrepreneurs, businesses and professional service providers and through these affiliations is able to provide a range and depth of professional and commercial services in addition to its core skills and experience.

With offices in London, Brisbane, Kuala Lumpur and Boston, Transworld is well

positioned to deliver global services and participate in international projects wherever they may be located.

Change of Representative • Ms Tash Tobias, General Manager is a new representative of Crowne Plaza Bangkok Lumpini Park • Mrs Myla Caceres, Director of Sales & Marketing is a new representative of Crowne Plaza Bangkok Lumpini Park • Ms Jesselyn Koh, General Manager is a new representative of Four Points by Sheraton Bangkok, Sukhumvit 15 • Ms Sukanya Viriyathanaporn, Director of Sales & Marketing is a new representative of Four Points by Sheraton Bangkok, Sukhumvit 15 • Mr Rudolf Troestler, General Manager is a new representative of Hilton Pattaya • Ms Phatrarika Phatraprasit, Director of Business Development is a new representative of Hilton Pattaya • Ms Rewadee Khamkhieo, General Manager is a new representative of MyWellcard Ltd • Mr Gerald Hougardy, General Manager is a new representative of Novotel Bangkok Fenix Silom • Mr Sraithong Boonburaphong, Director of Sales is a new representative of Novotel Bangkok Fenix Silom • Mr Dan Benzaquen, Resident Manager is a new representative of Pullman Bangkok Hotel G • Ms Tankorn Somprasong, Director of Business Development is a new representative of Pullman Bangkok Hotel G • Ms Caroline Cheah, Hotel Manager is a new representative of Shangri-La Hotel • Mr Craig McKay, Director is a new representative of Gold Coast Ships • Ms Wanirat Tonjun, Operations Coordinator is a new representative of Primaweld Consultants (Thailand) Ltd • Mr Viranat Silananda, General Manager is a new representative of Oriental Residence Bangkok Change of Company Name Akara Mining change name to Akara Resources Public Company Limited CEA Projects change name to CEA Project Logistics Change of Company Address DP Clean Tech (Thailand) Co., Ltd. change address to 33/4 The Ninth Towers, Tower B 17th Fl., Room No. TNB05, Rama 9 Road Huay Kwang, Huay Kwang Bangkok 10310 Tel: +66 2 116 4899 Fax: +66 2 116 4747 January 2014

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From the Chamber Office

Message from the Executive Director

Calendar of Events Wednesday 1 January

AustCham Office Closed Wednesday 15 January TRANSEARCH Tri Nations Braai and BBQ

18.30 Venue: The Sukhothai Hotel, Sathorn Road Friday 17 January Eastern Seaboard Networking

18.00 – 21.00 Venue: TBC Friday 24 January AustCham Australia Day Golf Day

10.30 Location: Muang Kaew Golf Club, 52 Moo 8 Bangna-Trad Highway KM 7.7

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s we begin the new year, many of us will take time to reflect on past successes and learnings, and look ahead to what the future may hold. For AustCham, as we enter this new chapter, we will be strategic in fulfilling our mission of strengthening business, connections and the community. We will continue to respond to key trends by providing services which help businesses achieve economic and investment growth. We will look to our members and associates to share their experience, in the hope of seizing new opportunities that shape our future.

This month’s Advance magazine focuses on “productive investment”. In a world impacted by globalisation, climate change, and trade liberalisation, we should not underestimate the importance of knowledge, innovation, diversification and taking a strategic approach to securing a sustainable future.

If I think about what the dominant brands were 20, 10 or even five years ago, the reality is that many of them have fallen from their pedestals, while many more have ceased to exist altogether. Perhaps their demise can be attributed to a lack of foresight, under-valuing research and development, or failing to respond to change.

Gone are the days where we solely focus on internal operations and work hard to drive costs down. Nowadays we would be naive if we didn’t adopt a broader and longer-term perspective and actively consider ‘productive investment’.

The new year is a good time to consider how much we are investing in our future. For many, this may involve branching out, capitalising on new ventures, or moving into more sophisticated industries. Regardless, there is no deny-

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ing that the pace of change will continue to accelerate and we shouldn’t take anything for granted, including business. Survival for many may ultimately depend on how closely aligned we are with the ever changing world we live in. I wonder how AustCham’s Executive Director will be communicating with you in five or ten years time!

In 2014 the team are rolling up their sleeves for an even bigger and better year. On 15 January we are co-hosting the 7th Annual Tri-Nations BBQ with the South African and New Zealand Chambers of Commerce. Set in the beautiful grounds of the Sukhothai Hotel, this event presents a unified partnership opportunity.

As a proud Australian I will be stepping outside my comfort zone for AustCham’s Australia Day Golf Day on 24 January. Whether you are a golf enthusiast or not, I invite you to join me for what promises to be a fabulous, and no doubt very entertaining, day!

As I conclude my first Executive Director message it goes without saying that it is an honour to be representing the Chamber and its loyal members and I look forward to building on the strong foundation that Mark has helped build.

Thank you to our December sponsors

Here’s to a happy, healthy and prosperous New Year.

Warm Regards, Renee Bowman Executive Director, AustCham Thailand www.austchamthailand.com

AustChamThailand Advance