ADVANCE ~ January 2009

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AustChamThailand

A MONTHLY PUBLICATION OF THE AUSTRALIAN-THAI CHAMBER OF COMMERCE IN PARTNERSHIP WITH THE AUSTRALIA THAILAND BUSINESS COUNCIL

www.austchamthailand.com

January 2009

IN THIS EDITION

Design Australia

Embassy News Design Australia Highlighted in Bangkok Design Festival 2008

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BUSINESS AWARDS 2008 Kingsgate Consolidated: Best Employer Award Recipient

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COMMUNITY SERVICES Baan Khao Din School Visit on 8 November 2008

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CHAMBER EVENTS Australian Alumni Night at Raimon Land’s The River

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Inside Front Cover

KIS Int School

1/1 Note: __________________


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ANZ Bank

1/1 Note: __________________


Contents PATRON His Excellency Paul Grigson Australian Ambassador to the Kingdom of Thailand PRESIDENT Shane Torr ISM Technology Recruitment Portfolio: Embassy Liaison; Foreign Chambers/Presidents; ATBC; Regional AustChams VICE-PRESIDENTS Khun Sutipong Ittipong Siam City Bank Portfolio: Community Services Peter Emblin Thai Strategic Capital Management Ltd Portfolio: Events; Seminars and Luncheons; BOI; Marketing and PR

27 Business Briefs 06 Customs Ten: Fail to Manage Customs Requirements at Your Peril 11 SEO: How to Bring Your Website to the Top of Google 14 Customs, Trade & Transport Law Alert: Government releases details of new automotive industry plan EMBASSY NEWS 16 Design Australia Highlighted in Bangkok Design Festival 2008

austcham business awards 2008 18 Kingsgate Consolidated: Best Employer Award Recipient COMMUNITY SERVICES 19 Baan Khao Din School Visit on 8 November 2008 19 Correction – Jesters Charity Drive in Pattaya Australia Thailand Business Council 22 After the Elections – the Year Ahead... 23 Australian Reserve Bank’s December Monetary Policy Decision

23 World Weekly Economic Indicators CHAMBER’S PUBLICATION 24 AustCham Handbook 2008/09

TREASURER Bruce Wunderlich Oxyvital (Thailand) Portfolio: Treasury DIRECTORS John Anderson Meinhardt (Thailand) Portfolio: Events-Awards; Industry Groups

chamber Events 25 ESB Sundowners at Amari, Pattaya on 7 November 2008 26 Phuket Sundowners at Twin Palms, Phuket on 13 November 2008 27 Phuket Seminar: Why Invest in Phuket? 27 Information Bites: International Trade in Engineering Services 28 HR Focus Group Seminar 28 Site Visit: Bangkok Post Printing Plant 29 Australian Alumni Night at Raimon Land’s The River 30 Christmas Sundowners at Banyan Tree on Wednesday, 3 December 2008

Andrew Durieux Coverage Portfolio: Events-AFL; Business Content; BCP

New Members 32 New Members and Changes

Ben Yong Baker & McKenzie Portfolio: Business Advocacy; Joint Foreign Chambers; TAFTA; Legal

From the Chamber Office 34 Message from the ED

Cover Photo: Design Australia Highlighted in Bangkok Design Festival 2008

Brett Gannaway Siam Ocean World Portfolio: Sponsorship; Events-Ball Anne Lewinski The Sukhothai Bangkok Portfolio: Membership Belinda Skinner talent+ Portfolio: Communications Khun Seksan Tammakoon Bangkok Hospital Medical Center Portfolio: Alumni

Saeed Zaki dwp Portfolio: Industry Groups/Business Advocacy; Sustainable Development; CSR


v From the Board

Article waiting.... Ex officio Maurine Lam Trade Commissioner, Austrade COORDINATORS Paul Whyte and Paul Wilkinson Eastern Seaboard (ESB) Coordinators Email: esb@austchamthailand.com Steve Brajak Phuket Coordinator Email: phuket@austchamthailand.com Executive Director David Cole 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 execdirector@austchamthailand.com www.austchamthailand.com

Editorial Committee Shane Torr, Belinda Skinner, Robert Taylor, Gary Woollacott, Gregers Moller 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 Opinions expressed in Advance do not necessarily reflect the views AustChamThailand Advance of the Chamber.

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Business Brief

Customs Ten: Fail to Manage Customs Requirements at Your Peril By Sven Koops, Phil Bell and Richard Dearing, Ernst & Young

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anaging customs duty costs and compliance represents a significant and frequently underestimated challenge for many companies engaged in the international trade of goods. This will be the first of a series of articles aimed at helping importers and exporters to identify and manage their Customs risks. The primary aim of this column is to provide insights on the current issues, challenges as well as opportunities for proactive duty planning in Thailand. The article presented here shares ten golden rules for effective customs duty management. These rules very much reflect personal observations and conclusions, based on over 60 years’ collective experience of customs duty planning, compliance and dispute resolution assignments across the world. It is important to understand that the Customs environment in Thailand means the implications for “getting it wrong” are frequently very severe. Our ten rules for effective customs duty management are golden indeed if they assist companies to minimise risks in such a challenging environment. 1. Understand the Thai Customs Environment Customs Audits & Penalty Regime In common with most other countries, Thailand’s customs clearance process is based upon self-assessment principles, under which the majority of import shipments are cleared with minimal intervention at the time of importation. There is a price for obtaining quick clear-

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ance of imported goods – most importers can expect to be audited by Customs every two to three years, at which time Customs will scrutinise the company’s level of compliance with the various regulations. It is not surprising that Customs audits typically focus on recovering import duty and tax short payments, given the pressure Customs is under to meet the demanding revenue collection targets set by government. Multi-national corporations and those using special duty facilities come under particular attention. Further, Customs auditors are encouraged to maximise revenue recovery through an incentive scheme under which the auditors personally share in any administrative penalties that are imposed.

The primary aim is to provide insights on the current issues, challenges as well as opportunities for proactive duty planning in Thailand. Liabilities arising from a Customs audit can be very substantial, due to a variety of factors including: • Customs can, and does, recover short payments on goods imported in the past ten years (despite the fact that documents are only required to be kept for five years); • High duties and taxes are imposed on many goods imported into Thailand; • In the event an error is made, liabilities accrue very quickly if the import values and/or volumes are high; and • Administrative penalties equivalent to two times the amount of duty short paid are typically applied, even if the

short payments occurred through simple error or misunderstanding (these penalties are not contingent upon an importer having acted with bad intention or even negligently). Liabilities in relation to inadvertent errors on import declarations typically comprise: – Short paid customs duty; – Penalty equivalent to two times the duty short paid; – Short paid VAT; – VAT penalty equivalent to the VAT short paid; – Interest on VAT (1.5% per month, but capped at the VAT liability amount); – Excise duty short paid (if applicable); – Penalty equivalent to one time the Excise duty short paid (if applicable); and – In cases of smuggling, the maximum administrative penalties typically equal two times the duty paid value of the relevant goods. Typical Areas of Dispute with Customs • Importers are assumed to be both knowledgeable in customs matters that are technically complex, and to have a thorough understanding of Customs requirements. In our experience, it is rare for companies to have such expertise in-house, and there may be limited ability to find the necessary competence levels externally: – Correctly determining the Customs Value of imported goods can be a complex process (Customs Value is the value upon which ad valorem duty and tax rates are applied). • While based at the CIF (Cost, Insurance and Freight) level, there are a number of additional costs that may need to be added to the purchase value of the goods, in order to determine the Customs Value, eg. royalty and licence fees; assists including engineering/design costs; proceeds from the subsequent

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Raimon Land Plc

1/1 Note: __________________


Business Brief

sale, disposal or use of the goods; cost of packaging; commissions and brokerage, except buying commissions: – Establishing the correct HS tariff classification for particular goods can be a complex process (the tariff classification provides the applicable rate of customs duty). • Use of incorrect tariff classifications can result in the wrong rates of customs duties being collected: – Incorrect claim of preferential duty rates applying under FTAs (Free Trade Agreements). 2. Understand the Fundamental Differences Between Duty and Corporate Tax Recognising that customs duty is not a tax driven by national fiscal laws but a trade policy measure underpinned by international agreements and protocols is the beginning of this process (a common perception is that an acceptable transfer price for tax purposes is also acceptable for customs valuation purposes, and vice versa, however, this is not necessarily the case). Then add to the equation that customs duty is not technically a self-assessed charge but is rather determined by the respective national authorities based upon transaction specific declarations of absolute fact submitted by the importer. Finally, always remember that customs duty costs are invariably and deeply embedded within COGS (Cost of Goods Sold) and therefore do not have anything approaching the same levels of accounting transparency and controls as those available to support effective tax management. Understand these fundamental differences to tax and you are on the way to effective customs duty management!

Clearly, any strategic program to manage customs duty costs and risks must have this fact-pattern as its foundation stone! 4. Avoid Grey Areas and Benefits of Doubt The technicality of duty being based on declarations of absolute fact, rather than self-assessment, gives rise to the principle that all declarations made by the importer must either be right or wrong, correct or incorrect – in other words there is little room within customs law and policy for concepts such as grey areas or benefits of doubt. That the expectation of such black and white certainty becomes ever-more difficult to reconcile with technological product developments and advanced supply chain models is the root-source of many problems and challenges now faced by the customs duty manager. This is especially challenging in Thailand where the laws and regulations are typically not as precise as business would like, and where one could be forgiven for believing the penalty regime may affect the exercise of discretion in a company’s favour.

...customs duty is not a tax driven by national fiscal laws but a trade policy measure underpinned by international agreements and protocols... 5. Understand Existing Risks

3. Know Your Duty Costs

Despite the surety of Customs audits occurring regularly, the absoluteness of declarations and the severity of the penalty regime, time and again companies have been taken aback by the exposure to previously unidentified liabilities.

This rule may sound glaringly obvious but (for reasons perhaps apparent from the 2nd rule above) many businesses still have no clear knowledge and ready to hand information concerning their annual duty costs.

Understanding any potential liabilities, making adequate provisions and sound risk mitigation strategies have always been shown to be more effective than being in reactive mode once an audit is already taking place.

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Making provisions for potential liabilities where discretion by Customs is unlikely to be exercised or implementing risk mitigation strategies where errors are likely to have occurred are not luxuries; they are simply good risk management practice. 6. Optimise the Four Pillars of Customs Strategy Planning Essentially, all duty liabilities and risks are a function of four factors: • product customs valuation; • product tariff classification (HS Code); • Free Trade Agreement coverage and eligibility; and • customs regimes and special incentives. The exact dynamics and comparative weighting of these factors will vary from company to company and between specific individual supply chains. Effective customs duty strategy planning will always seek to achieve the appropriate best practice construction of these four pillars for each given trade flow. 7. Pay Attention to What is Declared Once having established your optimum customs strategy on the four pillars of duty determination, ensure that each and every import declaration properly reflects the facts you wish to be presented. Effective adherence to this rule will therefore revolve around: • diligent selection and management of the customs brokers to whom responsibility for preparation and submission of import entry documentation is often delegated; and • use of effective internal control programs. We have seen many entirely laudable and otherwise sustainable duty minimisation strategies unravel because this rule has not been adhered to! 8. Seek and Apply Rulings Wisely In specific circumstances a Customs Ruling can play an invaluable role in providing clarity and certainty of treatment – this especially being the case in relation to many complex tariff classification issues.

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Octagon

1/1 Note: __________________


Business Brief

However, rulings are difficult to obtain, especially for customs valuation issues, and even if obtained may be neither treated by Customs as binding nor expressed in crystal-clear terms.

management programs run from finance departments, tax departments, sales departments, business planning & strategy departments, production departments and logistics departments.

tary is a logical consequence of thorough planning and diligent execution – namely sustainable and well defended positions supported by watertight documentation!

As well as supporting proper strategy planning and submission of correct declarations, in Thailand Rulings can be an effective tool to minimise possible penalties.

The best location for the customs duty management function may require careful consideration of what is most appropriate for each organisation – but don’t let it inadvertently fall between the cracks!

9. Establish a Clear Home for Customs Duty Management

10. Treat Customs Duty Minimisation and Compliance as Complementary

It would be impossible in one short article to provide either a comprehensive source code or procedures manual for effective customs duty management but we would like to think that any business following sensitive adherence to the above ten rules will do much that is right and little that is wrong.

Effective observance of the other nine rules is dependent upon each business establishing clear demarcation of strong, committed and senior management responsibility for getting customs duty right. There is no natural or typically generic home for this responsibility and we have seen highly successful customs duty

There can only be one combined goal and outcome from a customs duty management program – namely, minimum duty exposure and maximum regulatory compliance. That the two objectives of duty minimisation and full regulatory compliance are mutually supportive and complemen-

In subsequent articles, we will discuss specific Customs technical issues that frequently cause companies to have problems with Customs. Sven Koops, Phil Bell and Richard Dearing are advisors on Customs, Excise and Trade matters with Ernst & Young. They may be reached at: 02 264 0777. For more information, visit their website at: www.ey.com/th

Int School Bangkok 1/2 Note: ______________

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Business Brief

This month, Bernard Collin, Founder, Chairman and Chief Executive Officer of Safecoms Co. Ltd. Explains the mysteries of search engine optimisation and offers some helpful advice on how you can improve your website ranking and get more potential customers to visit your site.

SEO: How to Bring Your Website to the Top of Google

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hat would you say if the owner of Siam Paragon, one of Thailand’s premier shopping malls, offered you a prime location on the main floor for half your current rent? Assuming there were no strings attached, you would probably say ‘yes’. This is the effect professional Search Engine Optimisation, or SEO, can have on your company website. Your website might look fantastic and your products and services can be stateof-the-art at ‘can’t resist’ prices, but 85% of the potential customers searching the Word Wide Web don’t look past the first page of their search results. Unless your site is one of the ten sites listed on that critical first page, chances are you are losing sales. “Most customers are not very skilful when it comes to searching for information on the web.” says SafeComs Bernard Collin, a 20 year veteran in the field. “Potential customers will spend a few minutes, at most, looking for a product or service. If your website isn’t listed on the first screen, chances are a competitor who invested in Search Engine Optimisation will get the business.” “SEO offers tangible, measurable benefits to your business.” If you have only recently heard about SEO, don’t feel left out. The constant pressure on companies to be ever more competitive is driving the search for new internet technologies to extend their reach and to have more impact in the marketplace. Bernard predicts that, “We are going to see websites without effective SEO fall farther down the rankings very quickly over the next few years.” Great return on investment SEO could be the best investment you make in your website. It’s estimated that 15 percent of all sales in the Thai econ-

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omy are now completely online. For 90 percent of the people using the internet, search engines like Google and Yahoo are how they find what they are looking for. Of those people, 85 percent never look farther than the bottom of page two of the search results, and 77% never click on paid or sponsored ads. SEO offers tangible, measurable benefits to your business. The first, and perhaps most important, is that SEO helps more potential customers find your site. It’s working 24 hours a day, 7 days a week, 365 days a year and can give your products and services a high international profile for a comparatively low cost.

The primary aim is to provide insights on the current issues, challenges as well as opportunities for proactive duty planning in Thailand. “Google search engines rank sites by how often other sites link to you, not by the content on your site.” On the technical side, a well optimised site will work with all World Wide Web compliant browsers, which means your site can be viewed by the greatest potential number of visitors. SEO also ensures that all your links are working correctly and that all the pages in your site are accessible to search engines, which makes your site easy to index. What this means is that visitors to our site have a much more enjoyable experience, which encourages them to come back for more.

Making the grade: Getting listed on the first page of search results While not exactly new, SEO has become an increasingly important factor in website impact. Simply put, Search Engine Optimisation, or SEO, is a way of getting internet search engines like Google, Yahoo or MSN to list your website near the top of the list it displays in response to whatever keywords a potential customer types into the search box. Sounds simple enough. But remember, you are competing with thousands, perhaps millions of websites that may be using the same or similar key words. “When a visitor opens your website, it should immediately be clear what you want them to do.” First, you need to understand a little about search engines and how they rank those 100 million websites. A ‘search engine’ is just a fancy name for a set of computer programs that search an index or master list of websites and returns matches to the specified keywords. According to Nielsen NetRatings, the most popular search engines by market share are Google, Yahoo and MSN. Exactly how that works isn’t important; what’s important is how a search engine ranks your website within an index. Google search engines rank sites by how often other sites link to you, not by the content on your site, they do of course use content to determine whether your site is relevant to the keywords in the search, but more about that later. The point is, the higher your site ranking, the more likely customers are to find your website quickly and start looking at your content. High ranking the first step Bernard cautions website owners, “There is a difference between Search Engine Optimisation and Search Engine Market-

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Business Brief

ing, or SEM. SEO helps get you website to the top of the search engine ranks. That’s an important first step. If visitors don’t immediately see good information, well written copy, great visuals and easy navigation, they very quickly move on to the next website, and you’ve lost a potential sale. SEO helps potential customers find your site, SEM helps ensure they actually look at your pages and transform in customers. This means well organised, high quality content, good writing and an easy flow leading to a purchase. “It’s the basic principle of good sales,” says Bernard. “When a visitor opens your website, it should immediately be clear what you want them to do, like download a test version or a white paper or send an email to get more info or click on the buy button. SEM ensures there is a flow from finding your site on the search engine to transforming a visitor into a customer. You need both for an effective website.” Boost your website ranking Getting a high ranking for your website is not rocket science, but it does take some work. The theory is simple enough if you pay attention to a few simple guidelines. Do not do-it-yourself. The bookstores, and the Internet itself, are full of do-it-yourself website design guides. They all tell you how easy it is and how you can have your website up and running in no time at all at little or no cost whatsoever! That’s fine if your website is a family photo album or your passion for Dutch tulip bulbs. If you have sales targets to reach, you need a professional design team. “Website design and search engine technology has got to the point where a single individual can no longer master all the skill sets needed to construct an effective website, “says SafeComs Bernard Collin. A professional website design team needs, at minimum, a graphic designer, a copywriter, and a programmer who understands the numerous technical ins-and-outs of exciting and mysterious topics like domain name registration, hosting, HTML, meta tags, spiders, Cascading Style Sheets and Search Engine Optimisation. Provide quality content. People who shop on the Internet want solid information, not advertising. “People don’t read web pages,” says Bernard Collin, SafeComs SEO expert, “they scan a page looking for keywords.” Good copywriting can increase reader attention by over 100 per cent. “On a web page, less is more,” advises Bernard.

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Focus on the goal. The goal of SEO is to bring new customers to your website. It is not about getting every possible keyword listed in a search engine index. “Many people try to get as many high search engine rankings as possible,” says SafeComs Bernard Collin. “It’s not important that your website is listed for a lot of keywords; it’s important that your site is listed for the right keywords.” Pick the wrong keywords and all your efforts are wasted.

“A fully optimised website is no guarantee that your site will retain its rank forever.”

Use effective keywords. ‘Effective’ key words are words that potential customers are most likely to use. This is where SEO really makes a difference, because it isn’t possible to guess what thousands of potential customers might be thinking when they sit down to do a search. The term ‘keyword’ is actually misleading. As Bernard explains, “Hardly anyone uses single keywords anymore. Nearly 30 percent of all searches use 2-word phrases, another 30 percent use 3-word phrases, and about 20 percent use 4-word phrases. “Getting the right keywords is just the beginning,” says Bernard. A critical aspect of optimising your website is gathering and analysing user statistics. For this, an SEO professional like SafeComs will use

• Use a Plain English writing style and the minimum number of words necessary to get your message across; • Use Cascading Style Sheets for layout, avoid using Frames; • Use page titles that describe page content; • Use lots of headings and sub-headings • Write an opening paragraph that summarises page content

“Many people try to get as many high search engine rankings as possible. It’s not important that your website is listed for a lot of keywords; it’s important that your site is listed for the right keywords.” tracking tools that will tell you not just how many people visited your site, but who they are, where they are, how they found your site, what search engine they are using, how your site performs compared with other web sites in the same category or country and lots more useful information. SEO uses this information to fine tune your keywords so you know which keywords lead to sales and which are just taking up space. This can push your ranking up another notch or two, more than enough to make the difference between a miss and a live customer contact.

Create convincing web pages. If you don’t have web pages that appeal to potential customers through quality visuals and brilliant copy, visitors don’t become customers. That’s why you need the graphic designer and the copywriter. Here are some simple guidelines for creating effective web pages:

Link or die “Search engines are constantly evolving.” says SafeComs Bernard Collin. “A fully optimised website is no guarantee that your site will retain its rank forever.” From the day the World Wide Web took form, people started looking for ways to manipulate their rankings. The cat-and-mouse game continues, which means that search engines are constantly developing increasingly sophisticated methods to rank pages. “You have to understand the mathematical algorithms and keep pace with new developments and trends to keep your ranking at or near the top,” says Bernard. “It’s a never-ending learning curve.” One of the big factors these days is the number of links into and from your website pages. Suppose, for example, your company sells an exciting new fire fighting technology. If you put links on your website pages that connect to websites for fire fighting associations, municipalities using your product, and sites for international fire safety standards, that’s going to be very good for your ranking. If those sites put your website address on their pages, that’s going to be really fantastic for your ranking! Why are links so important? Because most search engine designers feel that when one page links to another page, it’s like casting a vote for the other page. The more votes that are cast for a page, the more important the page must be. Also, the importance of the page that is casting the vote determines how important that vote is. Search engines calculate a numeric value

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Business Brief

or Page Rank that reflects the importance of a page based on the number of votes cast for it. Page Rank isn’t the only factor that search engines use to rank pages, but it is an important one. Today, search engines incorporate a wide range of undisclosed factors in their ranking algorithms to reduce the impact of link manipulation. Google says it ranks sites using more than 200 different factors, information it guards closely. The trend in ranking algorithms these days is toward factors such as the age, sex, location, and search history of people conducting searches. “Effective SEO is not a hobby,” says Bernard Collin. “Professional SEO practitioners invest a great deal of time participating in online forums and attending conferences, workshops and seminars to keep pace with developments in search engine technology.” Good versus bad SEO SEO practitioners talk about ‘white hat’ SEO and ‘black hat’ SEO. No mention of magic wands, at least not yet. White hat techniques are about creating content for users, not for search engines, and then making that content easily accessible. Black hat SEO uses deception to trick search engines into giving them a high rank. White hat techniques tend to produce results that last a long time. Black hat SEO works on the principle that a site will eventually be banned, either temporarily or permanently once the search engines discover what they are doing. “Successful search engine optimisation for international markets often requires professional translation of web pages.” Search engines may penalise sites they discover using black hat methods, either by reducing their rank or by banning them altogether. Such penalties can be applied either automatically by the search engines’ algorithms, or by a manual site review. Don’t think it doesn’t happen! In 2006, Google removed both BMW Germany and Ricoh Germany websites for using deceptive practices. Both companies quickly apologised, fixed the offending pages, and were restored to Google’s list. If you are tempted to use tricks, keep in mind that both those companies have lots of clout and lots of lawyers. Expand your market If your market is international, you need SEO that takes this into account. Search

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engine market share varies from one country to another. Google is currently the US market and overall world market leader with about 85%, followed by Yahoo and MSN. In markets outside the US, Google’s share is often larger. In Thailand, Google claims 98% of the search engine market. In Russia, local search engine Yandex has 50% of the paid advertising revenue, while Google has less than 9%. In China, Baidu leads in market share, although Google has been gaining. Successful search engine optimisation for international markets often requires professional translation of web pages, registration of a domain name with a top level domain in the target market, and web hosting that provides a local IP address. A good SEO company should be able to advise you on these matters. Be on top According to the latest survey, as of August 2008, there were 176,748,506 websites on the Internet. How do potential customers find your site before they find a competitor? Search Engine Optimisation is the key advantage. SEO is a positive, proactive step you can take to help ensure that potential customers see your website on the search results page before they see a site offering the same or similar products and services. SafeComs Bernard Collin advises people interested in SEO that, “Search Engine Optimisation is not a just a technical solution, it has to be part of your overall mar-

keting and communications strategy and include effective SEM as well. In terms of return on investment, it’s hard to think of anything that gives you a bigger ‘bang for your buck’ than SEO.” Want to know more? Netcraft Web Server Survey http://news.netcraft.com/archives/ web_server_survey.html Netcraft provide monthly Internet research reports on the hosting industry and specialise in phishing detection and countermeasures. SEO News http://www.seo-news.com/ Offers “search engine strategies for webmasters”. Jakob Nielsen’s Website http://www.useit.com/ Jakob Nielsen is the world’s leading expert on website usability. Plain English http://www.plainenglish.co.uk/ Practical advice on writing crystal clear web page copy. SafeComs Network Security Consulting Co., Ltd. 21/16 Premier Condominium 4th Floor, Unit 401, Sukhumwit 24 Road Klongton, Klongtoey, Bangkok 10110, Thailand Tel.: 02-259-6281-3 Website: www.safecoms.com E-mail: info@safecoms.com

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Business Brief

Customs, Trade & Transport Law Alert Government releases details of new automotive industry plan By Andrew Hudson, Partner, Hunt & Hunt n 10 November 2008, the Australian Federal Government released details of a new $6.2 billion plan (‘Plan’) intended to make the automotive industry more economically and environmentally sustainable by 2020.

ing scheduled tariff reductions will still take place in accordance with their scheduling. Further, the Plan also makes it clear that Australia will continue to pursue markets for automotive exports through its Free Trade Agreement negotiations. This will continue to open the Australian market to competition from overseas.

Background

The ATS

The release of the Plan follows a number of reviews all of which addressed, in part, the operation of the Australian automotive industry. Most specifically, the recent review undertaken by former Victorian Premier Steve Bracks included 42 recommendations, the majority of which have been included, in some form, in the Plan.

The ATS has a number of elements which are summarised as follows.

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Essential elements of the Plan The Plan entitled “The New Car Plan for a Greener Future” includes the following basic elements. • An Automotive Transformation Scheme (“ATS”) to replace the ACIS scheme. • Some amendments to the ACIS program for 2010 to aid the transfer to the ATS. • Funds to aid structural adjustment through consolidation in the component sector and labour market adjustment. • Funds to help suppliers to improve capabilities in integration and national and global supply chains. • An Enhanced Market Access Program. • A new Automotive Innovation Council. • An expansion to the LPG Vehicle Scheme. Some additional detail on some of these aspects is set out below. Tariff reductions and FTA The Bracks review had recommended that the existing plan to reduce tariff levels on automotive inputs should remain in place. That recommendation met with opposition by industry which had suggested, in part, that the planned tariff reduction should not take place. However, the Plan makes it very clear that the exist-

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• It replaces stage 3 of the current ACIS (previously scheduled to take place between 2011 to 2015). • The ATS places more emphasis on research and development and green aspects to improve competitiveness and productivity especially in the supply chain. • Funding is $1.5 billion for the period 2011 to 2015 (increased from $1 billion for ACIS). • There is new capped assistance of $1 billion for the period from 2016 to 2020.

Australia will continue to pursue markets for automotive exports through its Free Trade Agreement negotiations. • Capped funding is 55% available to vehicle producers and 45% available to those in the supply chain. All may claim a maximum of 15% of their investment in plant and equipment. However, the previous ACIS loading has been abolished. • Those parties in the supply chain can claim 50% of investment in approved research and development (up from 45%) and the list of eligible activities have been streamlined. However, there is no funding for recruitment and management expenditure.

• All parties seeking to claim the ATS will need. Importantly, from a day-to-day perspective, the ATS will operate by way of grant rather than by way of a duty credit. This will have an important cash flow impact for those involved in the industry and place a premium in ensuring that applications for funding are made in advance and totally comply with the Government’s requirements. Green Car Innovation Fund The Green Car Innovation Fund (“GCIF”) has the following elements. • It provides for $1.3 billion over 10 years to vehicle producers, component makers and researchers. • It will be allocated through a competitive selection process. • Again, the focus is on research and development and commercialising technologies to reduce fuel consumption, emissions and weight. • As a general proposition, $1 will be made available for every $3 contributed by industry but that percentage can vary. • There will be a limit of funding made available to each recipient but enough will be made available to individual recipients to facilitate major projects. • All parties and industry are eligible including those of the supply chain and those undertaking research and development (including international parties) as long as the work is done in Australia. Again, the assistance is provided by way of grants. The Automotive Industry Structural Adjustment Program The Automotive Industry Structural Adjustment Program (“AISAP”) has the following elements. • It recognises the need to consolidate the supply chain and that this may

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cause job losses. • The AISAP provides $116.3 million to facilitate adjustment in two ways. • First, it will help with legal, relocation and merger costs. The Plan says it is not intended to “prop up” business but only to support legitimate deals which “make the industry stronger.” It will not cover all costs and it will be allocated at the discretion of the Minister. • Secondly, the AISAP will provide labour market adjustment support. This will assist those to secure employment who have been required to leave employment and provide training for those who are displaced. Automotive Supply Chain Development Program This builds on other initiatives and provides $20 million over four years to strengthen capabilities of those in the automotive supply chain. Automotive Industry Innovation Council

This new Council will comprise representatives of the Federal Government, the Victorian and South Australian Governments, vehicle producers, component makers, unions and researchers.

understands the detail of the Plan (when that detail is released) to ensure that its projects are consistent with the policies behind the Plan and accommodates all the necessary procedural requirements.

The Automotive Market Access Program

The transition from the ACIS scheme to the new ATS will need to be properly timed and costed given that there will no longer be duty credits available through ACIS and that funding will only be provided by grants. This will have a potential cash flow impact on those importing goods to assist with their automotive industry activities.

This will provide funds to enable a “champion” to promote the automotive industry in China, India, Korea and the USA. LPG Vehicle Enhancement Scheme This has immediate impact which will raise the available rebate from $1,000 to $2,000 for those purchasing LPG vehicles. Conclusion – more work to be done! While the Plan presents a significant additional investment by Government, by no means will it provide the perfect answer to industry. Further, industry will need to be extremely careful to ensure that it

Dimet Siam 1/4 Note: _____________

AustChamThailand Advance

Andrew Hudson is Partner at Hunt & Hunt. He may be reached at: Tel.: +61 3 8602 9231 Email: ahudson@hunthunt.com.au The information contained is not advice and should not be relied upon as legal advice. Hunt & Hunt recommends that if you have a matter that is legal, or has legal implications, you consult with your legal adviser.

Three-on-Convent 1/4 Note: ______________

January 2009

15


Embassy News

Design Australia Highlighted in Bangkok Design Festival 2008

D

eputy Head of Mission at the Australian Embassy, Bronte Moules recently presided over Design Australia, an exhibition presented as part of the 2nd Bangkok Design Festival 2008 at Grand Hall of Siam Discovery Center. Design Australia brought together a fascinating range of design objects by eight leading studio designers from Melbourne: Marc Pascal, Maureen Williams, Sari Harris, Ilka White, Zaishu, Simon Lloyd, Gregory Bonasera and Volker Haug. The exhibition inspired design enthusiasts and people who enjoy innovative design ideas and the perfect blend between art, design and technology. “The rich variety of work on display gives insight into the designers’ creative process. It demonstrates the way in which Australian designers can make ordinary things extraordinary,” said Bronte. The exhibition space, which formed a mini Australian pavilion, was designed to reflect a classical urban look. It demonstrated the design flexibility and the capability of steel products to be used in innovative designs and complex shapes. A diverse group of guests gathered at the launch of the exhibition. Among those attending were designers and design-enthusiasts that met and exchanged ideas

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Colin Lawson, Managing Director of Right Angle Design, Peter Harper, Designer/Managing Director of Harper Design Studio, Khun Pratarn Teeratada, Director of Bangkok Design Festival, Deputy Head of Mission at the Australian Embassy, Bronte Moules, Khun Chatvichai Promadhattavedi, Acting Director of Bangkok Art and Cultural Center and Khun Pornwut Sarasin, a member of the Bangkok Governor’s Advisory team.

with leading Thai and international designers and creative professionals. Prominent guests included Khun Pornwut Sarasin, a member of the Bangkok Governor’s Advisory team, M.L. Kathathong Thongyai, Director of Product Development Center, Khun Pratarn Teeratada, Director of Bangkok Design Festival and Khun Chatvichai

Promadhattavedi, Acting Director of Bangkok Art and Cultural Center. Design Australia was successfully showcased with support from Harper Design Studio, Bluescope Steel (Thailand) Ltd, Aust-Thai Roofing, Lightstyle, Right Angle Interior and I-Studio.

AustChamThailand Advance


Siri Sathorn Serviced Residence 1/2 Note: ______________

Anglo Info Bangkok 1/4 Note: _____________

Jentana & Associates 1/4 Note: ______________


AustCham Business Awards 2008

Kingsgate Consolidated: Best Employer Award Recipient Congratulations to Kingsgate consolidated for receiving the AustCham Best Employer Award.

K

ingsgate Consolidated Limited (Kingsgate) is a gold mining and exploration company, traded on the Australian Stock Exchange (KCN: ASX). The company owns and operates the Chatree gold mine in central Thailand through its subsidiary, Akara Mining Limited.

Kingsgate Consolidated/Akara Mining as the Best Employer Kingsgate/Akara has achieved and maintained its accreditation for ISO 9001 for Quality Management, ISO 14001 for Environmental Management and OHSAS 18001 for Occupational Health and Safety Management. Akara has received accreditation for SA8000 for Social Accountability and TLS 8001 for Thailand Labour Standards Corporate Social Responsibil-

“Our expertise is based on embracing cultural diversity and skill development, fostering teamwork and a focus on the best result for all stakeholders.” ity Certification. It is believed that Akara is the first mining company in the world to be certified as being SA8000 compliant. Certification for ISO 17025 for Laboratory Certification has also been achieved. Kingsgate/Akara has been awarded a number of prestigious Thai and Australian awards during their tenure. Formula for Success Kingsgate/Akara seek to ensure that its mining and exploration activities are consistent with and integrate key aspects of sustainable development by ensuring a

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safe and environmentally sensitive workplace, employing local people and by engaging with local communities.

Current Market Position and Future Plans

Akara has developed a strong safety culture since it commenced construction in November 2000, with more than 11.5 million hours having been worked to date through three construction phases and nearly seven years of production, with only one lost time injury providing Chatree with a safety record better than any mining operation in the world, based on Kingsgate/Akara’s research.

The key growth initiatives for Kingsgate/ Akara are the continued development of the Chatree operation together with a focused gold exploration program and prudent acquisitions. Future expansion is planned to increase gold and silver output now that the new Chatree North Mine Leases have been granted. The aim of Kingsgate is to float the Thai subsidiary, Akara Mining Limited, on the Thai Stock Exchange, exhibiting long-term commitment to Australian-Thai investment.

Competitve Advantages in the Thai Market Kingsgate/Akara are committed to assess ways of enhancing the value of our operations in Thailand for the benefit of both countries and are committed to a long term partnership with Thailand to develop the country’s gold resources. Akara continually assists in generating new support industries in the local communities, some of which now export, and bringing in Australian-based international companies that use Thailand as their SE Asian base (Ausenco, Boart Longyear).

A Wining Concept Kingsgate/Akara is a gold expert in exploration, development and mining with a track record of “World’s Best Practice” in sustainability (safety, environment, community relations). Kingsgate / Akara is committed to long-term investment in Thailand with our Thai partners. Our expertise is based on embracing cultural diversity and skill development, fostering teamwork and a focus on the best result for all stakeholders.

AustChamThailand Advance


Community Projects

Baan Khao Din School Visit on 8 November 2008 On Saturday 8 November 2008, volunteers (together with AustCham staff), visited Baan Khao Din School, Chonburi. It was a successful day enjoyed by all. We thank the volunteers - Tricia Balmer, Murene Cassai, Khun Chuanpit Ngamsanga Meyer, Emma Fenby, Khun Jitrudee Nuj-fuang, Khun Juthamas (Kwan) Carranco, Khun Kasemsri (Tai) Eufemio, Gareth Marshall, Kevin McQuillan, Kevina Stewart and Khun Sudawan Kumar for their generous participation.

Correction – Jesters Charity Drive in Pattaya On Sunday 14 September 2008 AustCham Thailand sponsored and paid for children from the Camillian Centre to join the fun at the Jesters Care for Kids Charity Drive Fair in Pattaya. All the children are orphans with inherited HIV. Thanks to the Camillian Centre, the children can live lives as near to normal as possible. AustCham was proud to provide the Camillian Centre with donations and help. Thanks to our ESB Coordinator, Paul Wilkinson for making sure the kids had plenty of ice-cream from the AGS Four Winds stall and thanks to Peter Smith (AA Insurance Brokers) for providing lunch for all the children.

AustChamThailand Advance

January 2009

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pg 20

Cabinet (1/2)

1/1 Note: Artwork with Finn


pg 21

Cabinet (2/2)

1/1 Note: Artwork with Finn


ATBC President’s Column

After the Elections – the Year Ahead... PATRON His Excellency Mr Bandhit Sotipalalit Ambassador, Royal Thai Embassy, Canberra

T

he elections are over and plans can be made for the year ahead. I am, of course, referring to the ATBC elections which took place at the recent AGM – more on that later.

ATBC – Australian Section NATIONAL PRESIDENT Robert Taylor AusThai Connections president@aust-thai.org.au

We started out in 2008 with high hopes for the continued progress of bi-lateral trade and business with the new Australian Governments elected in November 2007 and the return to a democratically elected government in Thailand in December 2007; and the opportunities that were to arise from the liberalisation of the services sector via the TAFTA negotiations.

IMMEDIATE PAST PRESIDENT John Connor Karjura Pty Ltd FOUNDING PRESIDENT Charles Battersby Intelmar Australia Pty Limited

Sadly events did not work as we had all hoped. Instead 2008 was a year of street protests, blockades of Government House and, in late 2008, of the two main airports in Bangkok and the Constitutional Court sackings of two Prime ministers and their governments. Whilst business may have continued throughout most of 2008 notwithstanding the difficulties, the disruption to travel, business and trade arising from the closures of the two airports did have and will continue to have a major impact. Stories abound of lost opportunities arising from these troubled times. The worldwide bad publicity for the Thai brand was significant and will take an enormous effort in 2009 by the Thailand Tourism Authority, Department of Export Promotion, Board of Investment and other agencies to restore foreigners’ confidence in Thailand. Business has usually withstood the manmade troubles of the past and indeed even the natural disaster of the 2004 tsunami. However it may take a little longer for investment and trade to return to normal on this occasion given the continued political uncertainties and the coincidental global economic woes. Our new ATBC National Executive team will be closely following progress in this area and will seek the input of members so that we can provide government with our members’ views. In the year ahead we will continue to strive to deliver quality service to our members through facilitation of networking and business events. We hope that there will be an increased level of ministerial visits to and from Thailand, such that we can host events for members to meet inbound visitors or participate in missions to Thailand. We are also examining uses of technology to bring events from Thailand to Australia for our members. 22

January 2009

VICE PRESIDENTS Chair of the New South Wales Chapter Tamerlaine Beasley Beasley Intercultural nsw@aust-thai.org.au Chair of the Queensland Chapter C/O National Executive Director

We look forward to working with AustCham Thailand in bringing services and events of interest to our members, and the continued production of the monthly magazine Advance. Our National Executive will also maintain and develop further our relationships with the Thai Chamber of Commerce and the Federation of Thai Industries Of course we will also keep in close contact with the Ambassadors of both Thailand and Australia as they provide a vital link for our members to their respective governments. We also have plans during 2009 to upgrade our website and communications to members generally. Colin Mackenzie, our Executive Director is always on hand to assist members and can be contacted at secretariat@aust-thai.org.au On behalf of the National Executive I extend seasonal greetings to all our members and wish you well in your business endeavours in 2009. Regards,

Chair of the Victorian Chapter Graham Sherry Baker & McKenzie vic@aust-thai.org.au NATIONAL TREASURER Douglas Blunt EXECUTIVE MEMBERS Clare Florence Glen Robinson ASEAN Focus Group Pty Limited Gavin Thomas Kingsgate Consolidated Ltd John MacKillop MacKillop & Associates Director - Thailand Liaison Graham Storah storah@loxinfo.co.th SECRETARIAT Colin Mackenzie Australia Thailand Business Council PO Box 6005 KINGSTON ACT 2604 Tel: +61 2 6273 2311 Fax:+61 2 6273 3196 secretariat@aust-thai.org.au www.aust-thai.org.au ATBC – Thai Section Chairperson Khun Barbara Buranasilpin

Robert Taylor - National President – Australia Thailand AustChamThailand Advance


Australia Thailand Business Council

... The National President, Executive Committee, State Chapters and Secretariat of the Australia Thailand Business Council take this opportunity to wish all their members and readers of Advance a Happy New Year. .. Australian Business Indicators, September 2008 The Secretariat of the ATBC is housed within the Canberra Offices of the Australian Chamber of Commerce and Industry (ACCI), Australia’s largest and most representative business organisation, and utilizes the resources of ACCI to assist in servicing the membership. ACCI provides regular and timely comment on Australian political and economic issues on behalf of the business community. The ATBC will contribute the occasional article from ACCI on the Australian economy and business affairs which might be of general interest to readers in Australia and Thailand. The first contribution contains comments by Peter Anderson, CEO of the ACCI, on recent economic data released in December. The seasonally adjusted estimates for Manufacturing sales of goods and serv-

ices and Wholesale trade’s sales of goods and services fell 1.1 percent and 0.1 percent respectively in the September quarter. In September quarter, the seasonally adjusted estimate for inventories rose 0.7 percent; company gross operating profits rose 5.2 percent; and wages and salaries rose 1.4 percent. Australian National Accounts: National Income, Expenditure and Product, September 2008 In seasonally adjusted terms, GDP increased by 0.1 percent in the September quarter, while annual growth fell to 1.9 percent. The data shows that domestic demand is slowing from a very strong rate of annual GDP growth recorded at the September quarter 2007. Household final consumption expenditure increased 0.1 percent in the September quarter, after a negative 0.1 percent growth in the June quarter. Quarterly growth of total private business investment declined significantly from 4.7 percent in June quarter to 1.5 percent in September quarter.

Australian Reserve Bank’s December Monetary Policy Decision

O

n December 2, the Reserve Bank Board decided to reduce the cash rate by a further 100 basis points to 4.25 percent, the lowest since December 2001. Since September, the RBA has reduced the target cash rates by 300 basis points. The Reserve Bank indicated that despite Australian economy has been more resilient than other advanced economies; recent data has indicated that there has been a significant moderation in demand and activity. The RBA expected that private demand will remain subdued in the near term due to

AustChamThailand Advance

declining business and consumer confidence as well as declining terms of trade. Thus coupled with easing capacity pressures, inflation in Australia will soon start to fall.

World Weekly Economic Indicators

I

n early December, central banks worldwide delivered extensive interest rate cuts to rein in an accelerating global economic slowdown. The European Central Bank reduced its key rate by 75 basis points, the largest reduction in its 10 year history, to 2.5 percent. The Bank of England cut its key rate by 100 basis points to 2.0 percent, its lowest level in more than 30 years. The reserve bank of New Zealand slashed its key rate by an unprecedented 150 basis points to a five year low of 5 percent; and Sweden’s Riksbank cut its key rate by 175 basis points to 2.0 percent, its biggest reduction since 1992. Global manufacturing is shrinking rapidly. In US, the Institute of Supply Management’s index plummeted from 38.9 to 36.2, the lowest level since 1982 (a reading below 50 indicates contraction). The weakness was reflected by comparable surveys of purchasing managers in other developed countries. The manufacturing index in the Euro area fell to 35.6, a low for the 11-year survey; Britain’s dropped to 34.4 – a record low; while the index in Japan fell to 36.7.

Weighing up the international and domestic development of recent months, the Reserve Bank Board judged that a further significant reduction in the cash rate was justified to take the monetary policy to an expansionary setting. Given trends in money market yields, the RBA noted that most lending rates should start to fall significantly and will also reach belowaverage levels.

January 2009

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Chamber’s Publishcation

AustCham Handbook 2008/09

L

ast month saw the delivery of AustCham Thailand’s latest Handbook. We are again indebted to our publisher, Veritas Graphics, who have done an excellent job in helping us produce our third all-colour Handbook, as well as to dwp, a Bangkok-based world-class design firm, who helped with a further stylish redesign of this edition. Coordinating the project were Dean Outerson and Toby Coborn of Veritas Graphics who did a great job managing the extensive list of contents and updates from the Chamber, supported by Veritas’ Account Manger, Khun Lek. Jim Fowler, President of Veritas Graphics was again extremely pleased with the final Handbook. The Communications subcommittee is delighted that the Chamber’s outsourcing agreement with Veritas Graphics has continued to produce spectacular results for all parties involved. We encourage members to log on to the AustCham website and update their corporate profiles in real time as changes to their business occur. Major changes are reported in our monthly magazine Advance, which also includes details of new members who join throughout the year.

community services

sundowners Bangkok Sundowners 2008

AustCham Community Services

The Chamber’s Sundowners evenings continued to grow in popularity and maintained their reputation as one of the country’s best business networking events. In addition to the highly popular and very well attended All Chambers and Commonwealth Chambers events, interest continued to grow

The subcommittee was again very active this year and, with the help of volunteers and generous financial support from members, the Chamber was able to continue with its English teaching programme as well as providing help in various

outside Bangkok with our events on the Eastern Seaboard and in Phuket. With the generous support of our sponsors we have continued to be able to provide quality Australian wine, food, and hospitality at all of our Sundowners.

anzac day and remembrance day

history AustCham would like to express its debt to all those business leaders who have served on the annual General Committees over the years.

forms, covering schools and charitable institutions in Kanchanaburi, Chonburi and Rayong. The Annual Convoy For Kids was again a great success in a day that always brings happiness to many.

Achara Boonyahansa

Enscoe, Derek D.

Kneale, Warwick

Rossiter, Richard

Adams, Terry

Erswell, Anthony A.

Krag, Didrik

Rudh Thongvanit

Allingham, Peter W.

Faeste, Lars

Kulthida Suksawasdi

Ryan, Michael D.

Anderson, John

Fisk, Malcolm

Laurence, Mark

Sarasin, Ken

Baker, Angela

Folwell, Keith

Law, Barrie

Scott, Rory

Bekenn, Anthony C.

Ford, Peter

Leon, Chris G.

Scott-Kemmis, Leigh

Bell, Gordon S.

Forrest, Philip W.

Leslie, Simon

Seksan Tammakoon

Bodycoat, Ian J.

Furber, Jane

Liley, William R.

Shilbury, Neil

Bonython, Simon

Gibney, Paul

Lindeman, Roger

Smith, Kevin F.

Booth, Geoff

Goninon, Robert F.

Lindsay, Max

Sparks, Ron

Bradbury, John

Goodin, Donald J.

Mancell, Barry J.

Storah, Graham

Bradley, Kenneth

Graham, Paul

Massie, Hugh

Suraporn Simakulthorn

Bremner, Donald J.

Gundlach, Adrian L.

McDonald, Brian

Sutipong Ittipong

Burrow, John

Hancock, John W.

McDonnell, Ian

Thomas, Lloyd

Buttery, Neil

Hardy, Nigel J.

McKenzie, Valerie

Thomson, Fiona

Capon, Cecil J.

Hartrink, Jan W.

Miller, Bruce

Took, David

Carracher, Craig

Hay, Peter M.

Miller, Thomas

Took, Mike

Charn Saralertsophon

Healey, Anthony J.

Milston, Lawrence M.

Torr, Shane

Chote Sophonpanich

Hebbard, Clayton

Mitchell, Wayne D.

Turner, Eric

Cioccarelli, Stuart

Hendrie, Ian R.

Molan, David

Vinai Vamvanij

Clark, Christopher J.

Heycott, Andrew

Moran, Simon

Walters, Bruce W.

Clifton S. T. Punyanitya

Hind, David A.

Mosley, Hugh

Warburton, Richard

Cohen, David

Holmes, Desmond

Moushall, John W.

Wecker, Keith

Collins, Ian

Horgan, Robert

Mundy, P. D.

Weenerbom, Jim

Coombes, Bob

Hugh, Tim

Newell, David

Westall, Kenneth J.

Darley, Stephen

Human, Brian J.

Osborn, David

White, Gary H.

de Vries, Miles

Hurrell, Brian A.

Papson, Hardy

Williams, Peter

Dodd, Lindsay

Hyde, Robin P.C.

Pfeiffer, Tony

Woollacott, Gary

Driscoll, Mark

Jarvis, Stuart

Prendergast, Thomas J.

Wright, David

Eaton, Raymond

Johnstone, Alasdair

Prida Sananikorn

Wright, Graeme L.

Edwards, Jason

Kellaway, Stephen

Riley, Sean

Yong, Ben

Elliott, John W.

Keneally, Desmond H.

Robertson, Doug

Young, Eric E.

Ellis, Jason

Kesee Chantraprapawat

Robinson, John

Young, Peter

Emblin, Peter

King, Chris

Rogers, Julianne

Zanic, Kristina

Englebrecht, Geoffrey

Kiy, Graham S.

Ross, Keith H.

We apologise for any inadvertent omissions. We invite anyone who knows of an individual who has served on the Committee and has not been included in this list to contact the chamber office.

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business awards

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australia day ball

AustCham Thailand Business Awards 2008 Tanayong Public Company Limited

t+b solutions ltd. The Capstone Group Recruitment and Consulting (Thailand) Limited Peter Feeney

7th Floor, The Trendy Office Building 10/102 Soi Sukhumvit 13, Sukhumvit Road Klongtoey Nua, Wattana, Bangkok 10110

cargo-partner Logistics Ltd.

Stefan van der Sluys

This is the fourteenth consecutive year that AustCham Thailand has held its Business Awards to recognise high achievers in the Thai-Australian business community. The large number of nominations every year proves that there is a great deal of competition for these prestigious awards and this year has been no exception. Six independent judges, both Thai and expatriate, selected thirteen entrants as finalists for greater scrutiny and evaluation. Site visits were held to provide a further opportunity for finalists to make their case and for the judges to observe, first hand, the nominees’ businesses.

cargo-partner Logistics Ltd in Thailand is a 100% subsidiary of privately owned, cargo-partner group, which has its HQ in Vienna, Austria and founded 25 years ago.

“talent+” recognises that for the continued growth and prosperity of your business your recruitment priority is hiring the best people. Our success is based firmly on the principle that this is our single most important function for you. We strive to provide you with the quickest and best solution to your recruitment needs. With “talent+” you get a specialised consultant who only recruits in your industry and truly understands the uniqueness of your situation. We understand your needs faster making us better at finding the best people for your company.

Our guest speaker was George Negus, Australian Journalist and Anchor for SBS Dateline. AustCham Thailand is pleased to confirm the businesses chosen as the best in their categories for the 2008 AustCham Thailand Business Awards, as announced at a black tie dinner held at the Grand Hyatt Erawan Hotel, Bangkok on Wednesday 20 August 2008:

In addition to helping with your recruitment needs we have the capability to assist with retrenchment programmes, assessing the strengths and weaknesses of your people and helping you and them manage their career development.

BUSINESS OF THE YEAR: Bangkok Hospital Medical Center Bangkok Hospital is recognised as the leader in private medical healthcare in Thailand and the South East Asian region. Outstanding facilities, leading expertise and latest advancements in medical technology place Bangkok Hospital amongst the world’s premier global healthcare providers. World-renowned physicians and excellent nursing staff provide all patients with the utmost level of medical care. With overseas training and experience, all needs and expectations are met. In addition, a team of multilingual interpreters are present to assist in overcoming language or cultural barriers. Bangkok Hospital has a long history of serving the Australian community in Thailand and is a Bronze Sponsor of AustCham Thailand.

Ownership U.S.A

In Thailand the company is operating out of 3 locations which is Bangkok Main office, Airport branch at Suvarnabhum International Airport and the Laem Chabang Branch. Apart from this we can offer the value added services out of a strategically located warehouse inside the Free Trade Zone in Bangplee which is 18 Km away only from airport, 35 km from Bangkok Port and approx 90km from Eastern Seaboard only. For more information, www.cargo-partner.com For specifically the business with Australia, cargopartner have teamed up with one of the largest indendently Australian owned and operated freight forwarders. Operating since 1986, Wordlink International Ltd. has the experience, competence and knowledge to comfortably suit your needs. At all major ports/ airports (Seven in total), throughout Australia. For more information please visit website: www.worldlinkau.com

Products or Services Sea freight, both export & import to worldwide destinations on basis of FCL, Buyers consolidation or LCL Aircargo, standard and priority services Project cargo movements Custom Clearance Management, inbound & outbound Transport Cost Analyses and Consulting Order Management & Information / Cargo tracking Free Trade Zone warehousing / Value Added Services & inventory management (excellent for use as an Asia HUB)

Senior Management

Senior Management

Executive Director: Mr. Carl Denny Country Manager: Mr. Peter Feeney

Managing Director/ cargo-partner Logistics Ltd.: Mr. Stefan van der Sluys Managing Director/ Worldlink International Ltd.: Mr. Angus Morisson

AustCham Representatives Mr. Peter Feeney Ms. Belinda Skinner

AustCham Representatives Mr. Stefan van der Sluys Mrs. Thitima Iamphibool

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January 2009

Background

Formed in Bangkok in 1999, as the Thai office of one of the largest international recruitment agencies, our heritage, methodology, support and CRM system result in a guarantee of superior, results driven activities that balance the needs of the client with the career needs of the candidate. Trading as “talent+” with an office in Dubai, and an Asian regional search capability, we have successfully sourced candidates for roles in Thailand, the Philippines, China and the Middle East. When you need to find permanent staff we can help. “talent+” is a specialist recruitment consultancy and recognised in the fields of; Banking, Accounting & Finance; Technology; Consumer, Sales & Marketing; Technical & Operations; and Human Resources recruitment. We recruit at all levels from Supervisor to CEO.

The Inaugural recipient of Young Alumnus of the Year was Dr Num Tanthuwanit for the transfer of his medical knowledge of patient rehabilitation to the public hospital system in Thailand.

Thitima Iamphibool

Background

Products or Services

The independent panel of judges asked that DLA Piper (Thailand) be given a Special Mention for their CSR activities and that Raimon Land be given a Special Mention for their extensive community activities.

24

Business Activities: • Consultants - Other • Recruitment/Employment Services

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Level 15 Suite 1507 One Pacific Place 140 Sukhumvit Road (Klong Toey) Bangkok 10110 T: +66 (0) 2653 1596-7 F: +66 (0) 2653 3825 E: administration@tandbsolutions.com W: www.tandbsolutions.com

Peter Bull

T: +66 (0) 2649 9888 F: +66 (0) 2649 9899 E: thbkk@cargo-partner.com W: www.cargo-partner.com

T: +66 (0) 2168 7070 F: +66 (0) 2168 7077 E: peter@talentplusasia.com W: www.talentplusasia.com Belinda Skinner

1011 Supalai Grand Tower 9th Fl., Unit 06-07, Rama 3 Road Chongnonsee, Yannawa Bangkok 10120

14/F, TST Tower, 21 Soi Choei Phuang Viphavadi-Rangsit Road, Jatujak Bangkok 10900 Kavin Kanjanapas

Business Activities: • Consultants - Management • Training • Education

T: +66 (0) 2273 8511-5 F: +66 (0) 2273 8516 E: services@tanayong.co.th W: www.tanayong.co.th Business Activities: • Property Development • Hotel, Hospitality, Hotel Management and Services • Project Management

Al Lock

Martin Kyle

Background

Background

In today’s highly competitive global market, the need of the individual must be aligned with the needs of the organisation and vice-versa to ensure relevancy of learning interventions. This alignment supports staff retention, succession planning, the achievement of the strategic goals & objectives of the organization and is fundamental to achieving financial return from an investment in learning.

Tanayong Public Company Limited (the Company) was established on March 27, 1968 with initial registered capital of Baht 5,000,000 to operate a property development business. The Company launched its first property development project “Thana City” on Bangna-Trad road Km. 14 in 1988. The project consists of single detached houses, townhouses, condominium units and land for sale next to the golf course designed by Greg Norman which is part of the Thana City development.

As a performance improvement company, t+b solutions ltd. assists organisations to establish this alignment and thereby achieve a return on the investment that they make in their people. t+b solutions ltd. has extensive experience in Asia-Pacific, particularly Vietnam, Thailand, Sri Lanka, Australia, Indonesia, Lao PDR and Cambodia.

Products or Services t+b solutions provides services in three areas of expertise: Strategic Consulting • Strategy Development • Leadership Development • Executive Coaching • Managing Teams • Strategic Planning • Etc. Operational Consulting • Product Development • Competency Modelling • Succession Planning • Etc. Diagnostic Tools and Assessments • Suitability and Selection • Team Effectiveness • Surveys • Audits • Psychometric Tools • Etc.

Senior Management Managing Director: Mr. Peter Bull General Manager: Jutaporn Boonrawd

AustCham Representatives

The Company was listed on the Stock Exchange of Thailand and commenced first day trading of its securities on March 1, 1991. The Company was converted from a private limited company into a public limited company on June 2, 1993 and changed name from Tanayong Company Limited to Tanayong Public Company Limited. At the same time, the Company expanded its business to condominiums in the city center, serviced apartments, office buildings, hotels and public utility projects that require substantial investment capital. It was the initiator / operator of the first sky train system in Thailand under the Bangkok Mass Transit System Public Company Limited, which commenced services on December 5, 1999 and has been instrumental in redefining the CBD of Bangkok.

Product or Services • Property Development • Hotel, Hospitality, Hotel Management and Services • Project Management

Senior Management Managing Director: Kavin Kanjanapas Deputy Managing Director - Business Development: Kong Chi Keung Deputy Managing Director - Operations: Rangsin Kritalug Deputy Managing Director - Project Development: Sutham Siritipsakorn

AustCham Representatives Mr. Kavin Kanjanapas Mr. Martin Kyle

Mr. Peter Bull Mr. Al Lock

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Chamber Events

ESB Sundowners at Amari, Pattaya on 7 November 2008 On Friday 7 November 2008, Eastern Seaboard Sundowners (ESB) was held at Ice Bar, Amari Orchid Resort & Tower, Pattaya. We thank AA Insurance Brokers and PVC Windows Thailand (event sponsors) and Amari Orchid Resort & Tower (catering and venue sponsor) for their generous support.

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1) Khun Piyanuch Thanasakrungruang - Pattaya.com, Peter Smith - AA Insurance Brokers; 2) Khun Dhaninrat Klinhom - Amari Orchid Resort & Tower, Khun Dueanpen Thongsombat - Amari Orchid Resort & Tower; 3) John Gillies - IndoChine, Barry Main - PVC Windows Thailand; 4) Paul Axford - Credenda Associates, Colin Beech Credenda Associates, Steve Hovi; 5) Brent Clegg - Touchwood, Malcolm Scorer - AA Insurance Brokers, Khun Nisa; 6) Khun Pattaravadee Wangviriyaphan - Bangkok Hospital Pattaya, Khun Jitra Wongjuan - AA Insurance Brokers, Khun Kunchaya Fuengfoo - Horseshoe Point.

AustChamThailand Advance

January 2009

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Chamber Events

Phuket Sundowners at Twin Palms, Phuket on 13 November 2008 On Thursday 13 November 2008, Phuket Sundowners was held at Catch Bar, Twin Palms, Phuket. We thank corporate sponsor Bovis Lend Lease and corporate and catering sponsor Raimon Land for their generous support.

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1) Susan Usher - Lady Pie, Harry Usher - Lady Pie, Steve Brajak - AustCham Phuket Coordinator, Raimon Land; 2) Khun Sanit Nisyamatr - Bovis Lend Lease, Khun Keerana Dulyapraphan - Bovis Lend Lease; 3) Robert Gunnell - Bovis Lend Lease, Mark Kennedy - Bovis Lend Lease, Andrew Durieux - AustCham Director, Coverage.

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January 2009

AustChamThailand Advance


Phuket Seminar: Why Invest in Phuket? KSMB 1/4 Note: ______________

On Thursday 13 November 2008 the ‘Why Invest in Phuket’ seminar was held at Twin Palms, Phuket. The panelists were: Simon Derville, VP Research & Development Raimon Land; Khun Tanan Tanphaibul, President Phuket Real Estate Club; Bill Barnett, MD C9 Hotelworks; Andrew Durieux, AustCham Director, Coverage Director; and Khun Chantouch Srinilta, District Sales Manager Phuket Thai Airways.

Information Bites: International Trade in Engineering Services

Tria 1/4 Note: ______________

On Wednesday 26 November 2008, AustCham Thailand was pleased to host an “Information Bite -Luncheon at the Pan Pacific hotel, Bangkok. The guest speaker was Peter Godfrey -President of Engineers Australia. The topic was “International Trade in Engineering Services.” Key areas discussed were: The export of Australian engineering services and the role of free trade agreements; Australian engineering expertise.

AustChamThailand Advance

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Chamber Events

HR Focus Group Seminar By Al Lock On Friday 21 November, AustCham’s HR Focus Group met for a Breakfast Briefing at the AustCham office. Sasirusm B. Chunhakasikarn of Tilleke & Gibbins provided an update on current labour law in Thailand. Khun Sasirusm is a published and often interviewed expert on Thai labour law and current development, has an LLM from Howard University School of Law in the USA, and a Graduate Diploma in International Trade Law from the Thai Bar Association. Key items No employer shall demand or accept any security for employment from the employee, except where the employee’s work involves financial or property management. The operator shall be deemed the employer of subcontractor’s employees if the nature of the work performed is identical to those performed by the operator’s employees. No employer, chief, supervisor or inspector shall commit an act of sexual harassment, sexual advance or sexual disturbance against the employee. The probationary employee is entitled to all legal rights as an employee, including all types of leave and holiday. If the probationary period is 120 days or longer, the employer may have to pay severance pay. Submission of documents to the authority or any relevant party may be done by electronic or information technology means.

Some modifications to the normal work hours for daily workers, hourly-rate workers and piece-rate workers. A newly added section regarding pregnant employees. Prohibited places of employment for child employees and no demand or acceptance of security from a child employee is allowed.Added type of employee not entitled to overtime pay.

as a result of conviction of a crime that does not damage the employer.

Wage for accumulated annual vacation (previous year) must be paid to all types of terminations. Wage rate for employees of suspended business up to 75%. Requirement to pay severance to employee fired

Labour Welfare Committee has the power to consider whether the relocation of the business place will significantly affect the employee as well as to order the employer to make special compensation.

Warning letter shall be valid for one year from the date the offence was committed by the employer. If the cause of termination is not specified in the termination letter, such cause cannot be raised as the defence in court.

Site Visit: Bangkok Post Printing Plant

On Friday 21 November 2008, AustCham Thailand members and guests paid a site visit to Bangkok Post’s new printing and distribution centre. The official opening of the new printing facility - the biggest single investment The Post Publishing Plc has ever made to date, was graciously presided over by Her Royal Highness Princess Maha Chakri Sirindhorn on 7 November 2007.

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January 2009

AustChamThailand Advance


Chamber Events

Australian Alumni Night at Raimon Land’s The River Our fifth Alumni networking function for Thai students who graduated from Australian institutions was held at Raimon Land’s The River, Bangkok on Wednesday 26 September, generously sponsored by Raimon Land. Nearly 100 attendees including 75 alumni attended our networking night. Thanks also go to our guest speaker, Dr. Thon Thumrongnawasawas, Faculty of Marine Science, Kasetsart University. We hope that our Alumni networking nights will evolve into a forum where Thai graduates from Australian institutions can network and develop professionally, whilst contributing to Australian-Thai relations. Many attendees took advantage of the opportunity to join the Chamber’s membership program for alumni.

AustChamThailand Advance

January 2009

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Chamber Events

Christmas Sundowners at Banyan Tree on Wednesday, 3 December 2008 Sundowners is AustCham Thailand’s monthly business networking function. It is a great opportunity for members of the Chamber to meet, network and exchange views in a social environment. On Wednesday 3 December 2008, a special Christmas Sundowners was held at the Banyan Tree, Bangkok to celebrate the festive season. AustCham Thailand wishes to thank dwp (corporate sponsor) and Banyan Tree, Bangkok (catering and venue sponsor) for their generous support.

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1) George Koumemdakos - Banyan Tree, Ivan Kovarik - The Siam Gypsum Industry, Kevin McQuillan - Qantas/British Airways, Shane Torr - AustCham President, ISM Technology Recruitment; 2) Saeed Zaki - dwp, Phillip Hannaford - Hassell, Brenton Mauriello - dwp; 3) Gary Woollacott - Opus Recruitment, Ian Till - Hewitt Associates; 4) Bryan Dodd Meinhardt, Mike Holloway - RSM Thailand, Belinda Skinner - talent +; 5) Luisa Rust - Austrade, Maurine Lam - Austrade, Colonel John Blaxland - ADF, Australian Embassy; 6) Mark Adam Cope - Downer EDI, Warwick Baglin - Meinhardt, Malcolm Isteed - Credenda Associates; 7) Sally Knorr - Ayudhya Allianz C.P., Lynn McDonald - Bangkok Hospital, John

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January 2009

AustChamThailand Advance


Chamber Events

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Duke - Bangkok Hospital; 8) Robyn Taylor, Louise Taylor - Servcorp, Katherine Collett - Servcorp, Michaela Julian - Servcorp; 9) Ross Werner - Siam Ocean World, Brett Gannaway ED, AustCham Thailand, Craig Smith, Siam Ocean World; 10) David Nardone - Hemaraj, Nandor G. von der Luehe - JFCCT, Neil Chiu - Allied Pickfords; Khun Ekjaree Thanasawangkul - Dataconsult; 11) Gary Denson - Cigna International, Nicholas McPhee - Coverage, Stuart Winters - Sodexo; 12) Wayne Buckingham - Starwood, Thomas Hoeborn - Millennium Hilton, Scott Wilson - Millennium Hilton; 13) Richard Ganeshmoorthy - dwp, Donatien Carratier - dwp.

AustChamThailand Advance

January 2009

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New Members

Coming From AustCham Office...

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January 2009

AustChamThailand Advance



From the Chamber Office

Message from the ED

Calendar of Events THURSDAY, 1 JANUARY Public Holiday: New Year’s Day

AustCham Office Closed SATURDAY 10, JANUARY Voluntary English Teaching

Venue: Baan Khao Huay Mahad School, Rayong Saturday, 24 January 2009 AustCham Australia Day Ball

Details: TBA TUESDAY, 27 JANUARY Breakfast Briefing: Know someone that wants to study in Australia?

Coming From AustCham Office...

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January 2009

07.30 – 08.30 Guest Speaker: Andrew Grey Complete Education and Touring Australia Venue: AustCham Office

AustChamThailand Advance


Inside Back Cover

Landmark Hotel

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Back Cover

Allied Pickford

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