Advance june 2014

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

Australian Expatriates and the Residency Trap Business brief From Ashes to Production in Just a Few Weeks

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in this edition

Important Changes in the Australian Budget

AUSTRALIAN BUSINESS FORUM chamber events ANZAC Day Memorial Service Minor to Major

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chamber events Sponsors Cocktail Event

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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

business briefs 6 Australian Expatriates and the Residency Trap 10 Important Changes in the Australian Budget: Effects on Non-Residents with Australian Assets 12 From Ashes to Production in Just a Few Weeks

community services 20 AustCham Visit to Wat Phu Takian Kindergarten chamber events 22 ANZAC Day Memorial Service 26 Anti-Corruption Briefing: Promoting Clean Business

Australian Business Forum 14 Minor to Major

PRESIDENT Leigh Scott-Kemmis Lee Hecht Harrison / DBM (Thailand) Ltd VICE PRESIDENTS M.L. Laksasubha Kridakon Baan Laksasubha Resort Hua Hin Sam McMahon NS BlueScope Steel (Thailand) Limited TREASURER Warwick Kneale Baker Tilly Corporate Advisory Services (Thailand) Limited DIRECTORS Shane Burt CEVA Logistics (Thailand) Ltd

embassy news 18 Adam Kable Inspires Thai and South East Asian Swimming Coaches

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Josh Hyland AEC South East Asia Angus Kent Macquarie Securities Thailand Limited | Macquarie Group Limited Alan Polivnick Watson, Farley & Williams Rananda Rich Blackmores Ltd Simon Shale Visy Packaging (Thailand) Ltd & Visy Industries Wayne Williams Minor International Charles Wrightman Natural Ville

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EX-OFFICIO Greg Wallis Australian Trade Commission

28 Bangkok Sundowners at at Mode Sathorn Hotel 30 Sponsors Cocktail Event

HONORARY ADVISOR TO THE BOARD David Armstrong

AUSTCHAM MEMBERS 32 New Members

ADVISORS TO THE BOARD Raine Grady Capital TV

Chris Larkin CLC Asia

From the Chamber Office 34 Message from the Executive Director

From the Board

COORDINATORS Paul Wilkinson Cooper International Engineering & Services Co., Ltd ESB Coordinator Email: paul.wi@cies-group.com Trevor Dick Indochine Asset Managmenet ESB Coordinator Email: trevor@indochine-asset.com Harry Usher Lady Pie Phuket Coordinator Email: Phuket@austchamthailand.com Australian-Thai Chamber of Commerce 20th Floor, Thai CC Tower 889 South Sathorn Road Bangkok 10120 Tel.: +66 2 210 0216 Fax: +66 2 675 6696 office@austchamthailand.com www.austchamthailand.com For more information on individual Board Member focus please visit www.austchamthailand.com/ boardmembers

Editorial Committee 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.

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

AustChamThailand Advance

President’s Message

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s I write this message in late May, the elephant in the room is the five day old coup. A lot can happen between writing this message and when it goes to publication in June. So what to say?

AustCham’s current focus is on the commercial and economic health of the country, and in turn our members. Maybe we can look forward to some positive outcomes such as the unlocking of a number of major development projects that will help improve infrastructure and the implementation of a number of initiatives to improve commercial effectiveness. This includes issues with customs, revenue, work permits and many other procedures that are costly to business. The Thailand Board of Trade is doing a good job in leading these initiatives.

We are also mindful of the commercial contractual risks that come into focus from the declaration of Martial Law and will try and keep members informed of resulting risk management issues.

The 2013/14 Australian Business Engagement Plan Grant draws to a close in June with the last Australian Business Forum (ABF) in Phuket on 13 June. The grant helped AustCham produce an outstanding series of ABF events with supporting videos. We are grateful to all of those outstanding presenters, the Australian Embassy and Austrade for their support.

The grant also enabled the development of an effective referral service via the AustCham website. A major focus of the grant, and of course AustCham’s ongoing efforts, is to improve and facilitate access for Australian companies (especially SMEs) to Thailand’s supply chains.

Of course we cannot achieve this in just one year. It will always be an ongoing AustCham focus and priority – an example being the Japanese Engagement program lead by two AustCham Directors, Alan Polivnick and Sam Mcmahon.

We were pleased to see that the Asian Business Engagement Grant was not cut in the recently announced Australian budget. We are therefore hopeful of being able to continue with a program of heightened engagement which can

only be achieved via the grant. This year we will concentrate on trying to leverage one of our greatest assets: our people and people connections. One example is our conference and Australian Alumni Gala Dinner at the end of June, bringing together the richness of Thai-Australian Education as being an effective recourse for Australian business.

Fingers crossed that we will be asked to continue with the engagement project.

More information will become available in the near future.

For now we are punching on with all Chamber activities, and have a heavy schedule of events throughout the month including our first Eastern Seaboard located board meeting on 20 June. I look forward to catching up with you at one of the events and learning more about the current business issues and risks.

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

June 2014

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business brief

Australian Expatriates and the Residency Trap

By Stephen Lawrence

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he key tax issue for Australian expatriates in Thailand (indeed in any country) is whether or not they continue to be a resident of Australia for tax purposes. This article focuses on that issue to highlight the difficulties in determining residency, the effect residency has on how salary is taxed, the consequences of determining residency in contradiction to the Commissioner of Taxation’s view and the steps that an expatriate worker can take in order to minimise the risks associated with Australian tax residency.

Why is it important?

Expatriate workers will usually be paying tax in the country where they are working.

In many cases the tax on their salary in the country where they work will be lower than the tax they would pay on the same amount in Australia.

An Australian resident for tax purposes is assessed on income earned from all world-wide sources. A non-resident is only assessed on income from Australian sources. Source of income is a topic for another day, but in most cases a salary earned from work completed in Thailand will not be Australian sourced income. If an expatriate is a non-resident, his or her earnings will not be assessed in Australia.

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Getting it wrong can be costly. The Australian Tax Office (ATO) has fought and won a number of cases recently where expatriates returned to Australia after several years of thinking that they were non-residents and not required to pay tax in Australia on their earnings from overseas. The ATO took a different view and assessed the returning expatriates on the difference between what the Australian tax was and what they paid in the foreign country.

Under the foreign tax credit system, Australian residents get a credit for tax that they can prove was paid to an overseas tax authority. Add on penalties and interest, and the decision to consider themselves a non-resident of Australia for tax purposes became an expensive (and stressful) one.

How will the ATO know?

Computers. They will know when you left.

They will know where you went. They will know how long you stayed. They will know if you worked and for whom (via visa information). They know what industry you work in and will be able to estimate how much you will have earned. They will know what the tax rates are where you were working.

They will know how much cash you transfer back when you return. They will know. In addition, it has become a common occurrence for the ATO to conduct tax audits on returning expatriates notwithstanding the fact that they may have been away from Australia for a number of years.

Is an expatriate still a resident of Australia for tax purposes?

Australia uses four tests for residency and applies them on a fact and circumstances basis. A person only needs to satisfy one of the tests to be an Australian resident for tax purposes. They are generally referred to as follows: 1.

2.

3.

4.

Ordinarily resides test; Domicile test; Half an income year test; and, Superannuation test.

For the expatriate, the most relevant tests will almost always be the ordinarily resides test or the domicile test. In some cases, the courts have made conclusions that make it difficult to distinguish between the two. Nonetheless, there is guidance from the cases and ATO taxation rulings and there are some salient points that the expatriate can take away.

Ordinarily resides test This is often referred to as the common law test. The question here is whether a person’s behaviour has the degree of continuity, routine or habit that is consistent with residing in Australia. Many factors are relevant: • Where the usual place of abode is; • Where the family is; • Where children are at school;

AustChamThailand Advance

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We are currently accepting applications for Year 7 and Year 12 in August 2014. A limited number of places is available in other year groups.

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business brief

• The number, reason and duration of visits to Australia; • The extent of business ties with Australia; • The extent of family and social ties with Australia; • Ownership of real estate in Australia; • The location of other assets and personal effects; and, • Where bank accounts are maintained.

There are no strict criteria and there is no strict weighting of what may be the relevant factors. To make matters worse, different court and tribunal cases seem to come up with conflicting views. Some cases place reliance on the location of personal effects.

Others suggest that is not relevant.

Domicile test A person who is domiciled in Australia will be a resident of Australia unless he or she has a permanent place of abode outside Australia. Domicile is a strict legal concept and beyond the scope of this article. However, some general comments as they relate to expatriates can be made.

There are generally two types of domicile relevant to the expat. Domicile of origin and domicile of choice. The domicile of origin of a person is the domicile of the person’s father when they were born.

In order to obtain a domicile of choice a person must intend to obtain that domicile and act as though the new jurisdiction is the person’s new permanent home. Determining domicile can be a tricky exercise.

As a general rule, if you are travelling on an Australian passport and, or, you consider Australia home then you are likely to be domiciled in Australia. If that is the case, you will be considered an Australian resident unless you have a permanent place 8

June 2014

of abode outside Australia. What’s permanent? That’s a very good question.

One possible scenario that can be offered to explain permanent is that it doesn’t mean everlasting or eternal but it is more than temporary or transitory. The most important factor is a person’s intention to make a home outside Australia, but this is not determined by asking the person what their intention is. It is determined by the facts of the situation. This is where there seems to be significant overlap with the ordinarily resides test although this is unlikely to be helpful to the expatriate. The ATO will take the facts as they stand and fit them into whichever test they need to in order to get the residency outcome that they desire. Relevant factors for the domicile test include: • Intended length of the stay overseas; • Actual length of stay overseas; • Continuity of stay overseas; • Intention to return to Australia; • The establishment of a home overseas paid for by the person (not the person’s employer); and, • The existence of any residence in Australia.

In terms of the length of stay, a general rule of thumb is two years. An absence of 2 years or more is indicative of non-resident status although many unsuspecting taxpayers have spent much longer out of Australia and have returned to family, friends … and a tax bill.

ment, under their respective domestic tax laws. DTAs are complex documents and for present purposes, suffice to say that they do exist and should not be ignored.

What to do?

Get advice from a qualified, registered Australian tax practitioner. At a minimum, this will assist in establishing what is known as a reasonably arguable position (RAP) which in turn will assist in minimizing potential penalties in the event that the ATO takes a different view to you. In the event that some of the factors point to a conclusion that you are a resident of Australia for tax purposes then changes can possibly be made: bank accounts closed, investments sold, personal effects taken out of storage and donated.

A final thought Sometimes the worst thing is uncertainty. Not realizing until it’s too late that the ATO view of a person’s circumstances are that they are a resident of Australia and not being able to do anything about it until it’s too late – the money has already been spent. This uncertainty can be alleviated to a large extent by obtaining a private ruling from the ATO. Presenting all the facts. Describing all the circumstances.

And asking; ‘am I a resident of Australia for tax purposes?’ The answer will usually come within 28 days and if you don’t get the answer you are after you can begin the process of making the necessary changes to get that desired residency outcome.

Where do double tax agreements fit in?

In the context of this article, a double tax agreement will provide a tie breaker test if a person is considered a resident of BOTH countries who are parties to the agree-

RSM Advisory (Thailand) Limited can advise clients on any Australian residency issues that they may be faced with. For more information, please visit www. rsmthailand.com .

AustChamThailand Advance

AustChamThailand Advance

June 2014

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business brief

Important Changes in the Australian Budget: Effects on NonResidents with Australian Assets

By Stephen Caswell and Stephen French

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n the August 2012 edition of Advance we advised that non-residents with Australian assets needed to consider the impact of the announcement in the Australian Federal Budget of the removal of the 50% Capital Gains Tax (CGT) discount for nonresidents on capital gains accrued after 7.30pm (AEST) on 8 May 2012. Prior to the announcement, non-resident individuals and trusts were eligible for the 50% CGT discount on these gains where these assets were held for greater than 12 months.

Division 855 provides that non-residents will only be subject to income tax on capital gains derived on the disposal of ‘taxable Australian property’.

Section 855-15 lists five categories of CGT assets that are ‘taxable Australian property’: • taxable Australian real property • an indirect Australian real property interest • a business asset of an Australian permanent establishment • an option or right over the above items, or • assets on which a taxpayer has made an election under s104-165(2) to disregard a capital gain or loss on ceasing to be a resident of Australia The new rules reduce the discount percentage applicable to a discount capital gain of an individual where the individual was a non-resident for some or all of the period that the CGT asset was held after 8 May 2012.

For CGT events occurring after 8 May 2012, the discount percentage applying to a discount capital gain from that event will depend on: • whether the CGT asset was held on, or was acquired after, 8 May 2012; • if the CGT asset was held on 8 May

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2012, whether or not the individual was a resident on that date; • whether a choice is made by an individual who was a non-resident on 8 May 2012 to obtain a market valuation of their assets at that date to determine the part of the discount capital gain that accrued on and prior to that date; and • the residency of the individual during so much of the period that the CGT asset was held after 8 May 2012.

For CGT assets acquired after 8 May 2012 by an individual who was a non-resident for the entire period the CGT asset was held, the discount percentage will be zero as individuals are no longer eligible for the CGT discount.

For CGT assets acquired prior to 9 May 2012, and CGT assets acquired after 8 May 2012 where the residency status of the individual owner changes during the time the CGT asset was held, the discount percentage is reduced to reflect the periods the individual was eligible for the CGT discount. This is generally achieved by pro rating the discount percentage.

Is it necessary for a market valuation to be obtained?

Where an individual is a non-resident on 8 May 2012 and chooses to apply the market value method, a market valuation of the asset as of 8 May 2012 must be obtained to determine the discount percentage that applies to any capital gain derived on its sale.

The ATO’s guidelines indicate that it is not absolutely necessary to obtain a formal valuation but notes the need for any such value determined by a taxpayer to be supported by independent and verifiable evidence. The preference of the ATO is that valuations should be undertaken by suitably qualified and experienced persons to reduce the risk of its intervention.

Investing in Superannuation Eligibility to contribute to superannuation in Australia is the same for non-residents as that for residents. If you generate assessable income in Australia (such as rental income or capital gains) you may be able to make deductible super contributions to an Australian super fund to offset assessable income, up to the maximum contribution limits. It is important to note that non-resident investors should avoid making contributions to their Self-Managed Superannuation Funds as this can affect the fund’s residency. Alternatively, investors can make non-concessional contributions.

Accessing super entitlements are subject to the same preservation rules and the same tax treatment in Australia as for residents, for example super benefits are taxfree if you are over 60 and concessionally taxed from 55 to 60 years. It is also important to note that superannuation investments grow in a concessionally taxed environment, 15% for Accumulation and 0% for Pension Funds. Even where there is no intention of returning or ever living in Australia is it potentially worthwhile commencing or continuing an Australian superannuation income stream.

This article was contributed by MMT Partners Pty Ltd. If you have questions in respect of the above information, please contact MMT Partners Pty Ltd for more information. For Australian tax liabilities contact Stephen French on sfrench@ mmt.net.au . For investment and contributing to Superannuation in Australia contact Stephen Caswell on scaswell@ caswell.com.au The information contained in this article is of a general nature only and is not intended to address the circumstances of any particular individual or entity. No one should act on such information without appropriate professional advice.

AustChamThailand Advance

A Vision for the Future Transforming Education with the Global Citizen Diploma Advertorial

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chools are trapped in the past.

While much of the world has embraced the changes driven by technology and globalization, our schools are all too often grounded in an old-fashioned mindset that depends on the delivery of knowledge and standardized testing. Those that do succeed still often fail to realize that the universities themselves no longer want the straight-A student in every case. They want to know what makes students different. They want to hear their stories.

Education needs something different, and a small number of top schools around the globe have begun working together on a new initiative that aims to not only incorporate 21st century skills into their programmes, but also provide universities and employers with the means to evaluate them. NIST International School has worked with two other top IB schools to collaboratively launch the Global Citizen Diploma (GCD), an optional qualification that will be offered alongside the high school and IB diplomas.

As universities and employers have increasingly acknowledged, traditional grades simply do not provide enough information about the abilities and strengths of students. The GCD focuses on the abstract skills that existing

programmes do not directly measure, requiring students to reflect on their growth in areas such as leadership, community service and global citizenship.

Through the GCD, a student without top grades could demonstrate to universities that he led an initiative to solve development problems in a small rural village.

Another could showcase the photography project she undertook to raise funds for abused women in a neighboring country. All too often students like these are measured by a number—a number that says nothing about their capabilities or potential for success. The GCD gives them the opportunity to tell their stories and reveal what makes them unique as learners.

Since its creation the GCD has generated a positive reaction from universities. More

importantly, it has helped students develop and demonstrate the skills and passion for learning that both universities and employers are so desperately seeking. Though the GCD is an option for students at the participating schools, it clearly fills the existing void and offers the means for students to tell their stories, and to connect learning experiences in a way that once again makes education relevant to the needs of a changing world.

For more information about the Global Citizen Diploma, visit www.globalcitizendiploma.org.

NIST International School is the first full, not-for-profit IB school in Thailand.

To learn more about its programmes, visit www.nist.ac.th.

business brief

From Ashes to Production in Just a Few Weeks

By Janna De Vos

W

hen a devastating fire broke out recently in one of Bolwell’s major plants in Mordialloc, Victoria, rumours said this would be the end of the Bolwell legacy. The fire destroyed a large chunk of the company’s Australian production line and ruined a number of essential laminating moulds. The media reported that jobs would be lost and speculators assumed the disaster would prevent the company from continuing to service its major customers.

Just a few weeks after the disaster however, Bolwell, an acknowledged expert in fiberglass and advanced composites design and manufacturing, seems to have everything under control. Not a single job has been lost, and although there has been a momentary setback in production, the company has retained all customers and is set to be back on schedule within the month. What could have been a story of absolute chaos became a story of a surprising and admirable come-back. This begs the question: what was – and is – the key to Bolwell’s quick recovery?

AustCham spoke to Mr Linley Hughes, Managing Director of Bolwell, about the company’s ordeal. It turns out that a combination of factors mitigated the impact on operations

“At the end of the day, it is about effective operational and crisis management both before and after the incident”

Bolwell Team Australia

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and customers. “At the end of the day, it is about effective operational and crisis management both before and after the incident”, said Mr Hughes.

One of the reasons Bolwell was able to bounce back so quickly is its diversification. Bolwell not only designs and produces advanced composites, but also designs and produces award winning caravans and RVs at a separate production site. The fact that manufacturing took place at two different locations not only helped mitigate fire damage, but also gave the company mobility to shift some composite production to the caravan factory. This reduced disruption and enabled Bolwell to continue to service its key clients.

Bolwell also shipped a number of essential mouldings and materials from its factory in Thailand. Having set up just three years ago in Rayong, Bolwell has slowly expanded composite production in the Asian market. The fire has accelerated this expansion, strengthening integration between the Thai and Australian market. Such diversification and mobility alleviated operational disruptions in the short-term, but will also strengthen production processes and output in the long run.

Bolwell’s management and team-work also played a significant role in its quick recovery. “All of our staff worked together as a team” said Mr Hughes. “People were, and still are, working 16-hour days to make sure Bolwell gets back on its feet”. In the face of disaster, Bolwell’s management team approached the situation strategically by analysing their predicament before discussing action plans with their stakeholders. This calculated crisis response sent a

Bolwell Team Thailand

AustChamThailand Advance

you never know when or from whom you may need a little help.

The final factor that helped Bolwell bounce back was its insurance coverage. “We have a comprehensive and inclusive indemnity package” said Mr Hughes. This has helped the company with damage recovery as well as covering the cost of moving material between different sites. Having robust protection ensures that in the case of disaster, short term costs are easily recovered to ensure that the needs of customers continue to be met. message of assurance, not only to Bolwell’s customers, but also to its staff and surrounding community.

In fact, the community also contributed to Bolwell’s recovery. Past employees came forward to lend a helping hand, the local council offered transportation and aid, and even competitors offered provisional support. The strength of Bolwell’s network was evident as it faced disaster. This goes to show that maintaining good relations is paramount as 210x148.pdf

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A factory accident or disaster can strike any company at any time. Bolwell’s experience demonstrates that bouncing back relies heavily on ongoing preparation and awareness.

Factories must be maintained and insured, risks should be properly managed through diversification and other means, and staff must be prepared in the case of accidents. In the face of disaster, management and staff alike must analyse the situation and respond in a timely and appropriate manner. This is exactly what Bolwell did. And, as a result they have come back stronger than ever before.

9:56 AM

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AUSTRALIAN BUSINESS FORUM

Minor to Major and natural beauty of chosen locations and balancing the value-price ratio, the brand quickly expanded. Anantara Resorts now have properties in Thailand, Indonesia, Maldives and the United Arab Emirates. Further expansion is planned in China, Vietnam and Tanzania.

By Janna De Vos

W

hen Bill Heinecke founded Minor Holdings in Bangkok back in 1967, he was just eighteen years old. He chose the name “Minor” as a reflection of himself; a minor at the time.

Over the next four decades, the company grew exponentially. Operating under the name Minor International, the company has become one of the largest hospitality and leisure corporations in the Asia Pacific region. Today, it runs over 100 hotels, 1300 restaurants and 200 retail trading outlets across 28 countries, including Australia.

Looking back at Minor’s growth trajectory, one wonders: how does a company grow from a single hotel venture to a multi-billion dollar business in just one generation?

Speaking at the fourth Australian Business Forum (ABF) in Bangkok, Dillip Rajakarier, CEO of Minor Hotel Group and COO of Minor International, shared Minor’s compelling story of success. In this story, he isolated five factors that drove – and continue to drive – Minor’s expansion.

2. Be clever in choosing investment partners

Dillip Rajakarier, CEO of Minor Hotel Group and COO of Minor International

as Mister Donut, The Pizza Company, and Burger King. With these brands, Minor changed the face of Thailand’s culinary appetite. Today, fast food restaurants are almost as popular as the traditional road-side noodle stalls.

Minor International is also a pioneer in the hotel industry. Just over ten years ago it launched its first hotel trademark, Anantara Resorts. By drawing on the rich cultural traditions, heritage

When expanding or investing in a new business venture, it is imperative to choose the right investment partner.

Investment partners not only share resources but also knowledge, skills and expertise. In doing this, the whole becomes greater than the sum of its parts. It creates a win-win situation that not only drives business success but also business expansion.

Minor International has been fortunate in choosing suitable investment partners. For example, in 2008 Minor partnered with The Coffee Club in order to expand into the Australian market. In 2011, the company advanced its Australian expansion when The Coffee Club acquired Ribs & Rumps, an iconic Australian steakhouse brand. Combined, The Coffee Club and Ribs & Rumps

1. Always be one step ahead To achieve success a company must always be one step ahead. The ability to spot potential before it becomes a trend allows a business to advance beyond the scope of its competitors. This first mover advantage enables the company to attract and retain loyal customers before others enter the market.

Minor International has always been one step ahead. In its early days, it was one of the first companies to introduce American-style fast foods to the Thai market, including popular brands such

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AustChamThailand Advance

AUSTRALIAN BUSINESS FORUM

reported total sales of AUD 81 million in 2013. This is just one example of how Minor grew as a result of choosing the right investment partner.

3. Promote strong and consistent core values As a company it is crucial to establish and abide by a strong set of core values. This gives an organisation an identity. It not only sends a united and coherent message to customers but also to staff and stakeholders.

Minor International embraces five core values related to customers, results, people development, innovation and partnerships. These values are embedded in all operations, ensuring that the company exudes a single identity across all of its hotels, restaurant and retail operations – no matter where they are located.

4. Diversify Diversifying products and services can provide an effective path toward rapid growth. Diversification allows companies to gain new customers, achieve greater market share, and diversify risks.

Diversification is central to Minor International’s success. Starting in the hotel industry, Minor quickly branched out into the restaurant and retail sector. It not only diversified across industries but also within industries and beyond country borders. In the hotel and leisure industry, for example, Minor operates hotels, resorts, residences, spas and

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jets. Even within the hotel business, Minor markets each brand differently to attract a variety of customers.

5. Know your strengths, and draw from them A successful company is able to recognise its strengths and draw on them to achieve maximum potential. This may seem obvious but there are a surprising number of companies that are unaware of their key competencies. This identification not only allows a company to establish their niche and distinguish themselves from competitors, but it also assists in customer acquisition.

While Minor International has many strengths, one core competency is its

ability to provide quality service. Being a Thai company, Minor has embraced the service mentality of the Thai people.

Recognising this as a core strength, Minor ensures that businesses around the world embrace the same high standards of service provision.

Today Minor is anything but what the name suggests. It has grown into a multi-national company of epic proportions. By being a first-mover, choosing investment partners wisely, promoting strong and consistent core values and drawing on its key strengths, Minor International steered its own growth and wrote its own story. And, it is in this story that businesses, both big and small, can find invaluable lessons for success.

AustChamThailand Advance

AustCham Bronze Corporate Sponsor: MEINHARDT

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embassy news

Adam Kable Inspires Thai and South East Asian Swimming Coaches

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s part of its continuing commitment to growing sports linkages with Thailand, the Australian Embassy, Bangkok joined with Department of Physical Education within the Ministry of Tourism and Sports of the Kingdom of Thailand, Ruamrudee International School and the Thailand Swimming Association to support the 2014 Swimming Sport Science South East Asia Conference, in Bangkok from 26 to 27 April.

Adam Kable, High Performance Squad Coach from the Sydney Olympic Park Aquatic Centre (SOPAC) Swim Club, was the keynote speaker at the conference.

Over 100 swim coaches from across Thailand and South East Asia attended.

A qualified Strength and Conditioning Coach, as well as a practicing Sports Physiotherapist, Kable assisted Brant Best, SOPAC Head Coach, to coach James Magnussen to achieve his 2011 and 2013 World Championship titles and London Olympic medals.

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“Coaches in Thailand and South East Asia have limited training opportunities.

With his unique combination of skills, we were delighted Adam accepted our invitation to be the keynote speaker at the conference”, said Ms Chatchadaporn Pitaksathienkul, an officer of Research and Development Section, and the

Bureau of Sport Science, Department of Physical Education.

Mr Sathit Hongtong, a Thai swim coach who has trained in Australia with support from the Australia-Thailand Institute said, “Adam’s participation in the conference reflects Australia’s leading role in combining science and swimming”.

“The Australian Embassy, Bangkok is proud to have supported this conference. Adam Kable’s participation is another example of the friendly and close links between Australia and Thailand. I hope the knowledge shared and connections made will enable swimming communities in the region to develop ongoing professional dialogue”, Ms Sarah Roberts, acting Australian Embassy Deputy Head of Mission, said as part of her speech at the opening of the Conference.

For more Embassy news, please visit www.thailand.embassy.gov.au

AustChamThailand Advance

AustCham Silver Corporate Sponsor: CAPITAL TV PRODUCTIONS

community services

AustCham Visit to Wat Phu Takian Kindergarten Thursday 24 May 2014, Kanchanaburi The Wat Phu Takian Kindergarten, a local school based in Kanchanaburi, has been one of AustCham’s community service beneficiaries for the past five years. Each year prior to the ANZAC Day service in Kanchanaburi, AustCham and its members visit the school, bringing with them school supplies, cash donations, and – most anticipated event of all – Clown Eckie. We would like to thank all those who joined us on the visit to the Wat Phu Takian Kindergarten School. We would also like to thank all those who attended our April Sundowners for their generous donations.

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AustChamThailand Advance

chamber events

ANZAC Day Memorial Service Thursday 24 and Friday 25 April 2014, Kanchanaburi

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here are very few moments in life which are truly scared and instil feelings of pride and honour.

The ANZAC day memorial service in Kanchanburi on 25 April 2014 was one such moment.

Walking through the deep carvings of the Hellfire Pass in the early hours, on route to the official Dawn Service, served as a broad reminder of how Australians have suffered,

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endured and survived such torturous conditions.

We were honoured to meet Mr Harold Martin, 97, one of the few remaining prisoners of war (pictured below). He worked on the ThaiBurma Railway – ‘Hellfire Pass’ – before being sent to Japan where he miraculously survived a vessel attack after clinging to a raft in the South China Sea.

The ceremony, the last bugle call, and hearing the bagpipes echo through the woods was all equally moving as thousands paid respect to the 2,600 service men who died on these grounds and to others who have fallen in honour around the world.

The human spirit of those who endure endless battles, brutality, darkness and despair is truly courageous.

AustChamThailand Advance

chamber events

AustChamThailand Advance

June 2014

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Chamber Events

Anti-Corruption Briefing: Promoting Clean Business Wednesday 7 June 2014, Mode Sathorn Hotel

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hree years ago Dr Bandid Nijathaworn, a distinguished Academic, embarked on an anti-corruption mission by instigating the Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC). As Secretary General of the CAC, he has achieved a great deal since then. To date there are 307 companies listed on the CAC including Boots Retail, Siemens, PWC, RollsRoyce, Pfizer, Mercedes-Benz, Colliers international and Toshiba. There is however a notable absence of Australian companies on the list.

Despite persistent efforts, Thailand is still ranked poorly on the Transparency International Corruption Index 2013.

Corruption is clearly prevalent, and some say it’s getting even worse.

Speaking at Mode Sathorn Hotel on 7 May 2014, Mr Bandid emphasised

the need for collaboration between the public and private sector to promote

Thailand as a reputable place to do business.

The corporate sector in particular have the power to push for change by raising governance compliance standards and creating a more systematic approach through clear policy implementation.

Collectively businesses can assist in promoting the clean business movement and improving Thailand’s reputation and integrity.

Anti-corruption is still very much an uphill battle. When the lights are off corruption is rife. However when the lights are on and there is greater transparency people chose not to participate in corruptive behaviours. If you would like to learn more about how you can support the CAC please visit www.thai-iod.com

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AustChamThailand Advance

AustCham Silver Corporate Sponsor: QBE

We exist to

make it possible In a world of volatility, our ability to manage risk gives business the reassurance it needs to invest and grow, and makes it possible for things to happen.

With a focus on intermediary relationships, QBE has the widest range of product offers.

Our insurance specialists develop leading-edge products that are client-focused and provide cover tailored to deal with complex risks or straightforward solutions that meet the needs of our customers.

Winner of “Best Insurance Company Overall - Asia Pacific� - Reactions Global Awards 2010 & 2012 To find out more about our products and services, please visit our Thailand website at www.qbe.co.th

Made possible by

Chamber Events

Bangkok Sundowners Wednesday 7 May 2014, at Mode Sathorn Hotel AustCham held its May Sundowners at the beautifully decorated Theatre Bar at the Mode Sathorn Hotel in Bangkok.

Guests were welcomed with a delightful ambiance and spectacular service. We would like to thank Baker Tilly Thailand, our Corporate Sponsor for the evening, for their support in making the evening a great success. We would also like to thank the Mode Sathorn Hotel, our Venue Sponsor, for their wonderful hospitality and service. Lastly, thank you to our guests, without who the Sundowners would not be possible. See you next month!

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1) Roan Du Cloo, Baker Tilly; Maria Ehren, Asia Internship Programme; Axel Persson, TAILOR ON TEN. 2) Monjittra Tang-Aumpun; Tanida Hirunkham, Baker Tilly Thailand; Adulpol Charukesnunt, Baker Tilly Thailand. 3) Warwick Kneale, AustCham Treasurer, Baker Tilly Thailand; Renee Bowman, Executive Director; William Pang, Siam@Siam Hotels & Resorts. 4) Siam@Siam and Mode Sathorn Hotel Team. 5) Alex Taverner, Pandectum Pty Ltd; Chris Larkin, CLC Asia; Michael Waters, Deep Running Waters. 6) Thawee Kugasemrat, Mode Sathorn Hotel; Sirirak Wimolthat, Minor Hotel Group; Praewpailin Na Nakorn, Atrium Bangkok. 7) Alan Render, Gilt Edge International; Ben Cole, TAILOR ON TEN. 8) Dr Kraipope Jarupaiboon, Vejthani Hospital; Suphicha Anusirikul, University of Queensland; Alisa Khamrongsa; Panida Cherdjareewatananun, Lanna Interpack Ltd; Guljira Manimont, AustCham Thailand. 9) Sam Flanagan, Meinhardt; Phil Chilton, Xcite Golf; Alex Smith, Xcite Golf; Ben Giles, Australian Trade Commission. 10) Rapee Rojvirasingh, Mad Appe Development; Chulanon Trairattananin; Charlie Prasertsuk, Anantara Bangkok Sathorn. 11) John Koenig, C&C Industries; Greg Wallis, Australian Trade Commission. 12) Warwick Kneale, AustCham Treasurer, Baker Tilly Thailand; Dr Robin James Storer, University of California, San Francisco; Rod McNeil, Capital TV.

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Chamber Events

Sponsors Cocktail Event Wednesday 14 May 2014, at the Australian Ambassador’s Residence This year, the Australian Ambassador to Thailand, HE James Wise, and his wife Teresa kindly hosted AustCham’s 2014 Sponsors Cocktail Reception at their beautiful residence in Sathorn. Sponsors enjoyed a delicious selection of canapés and drinks while mingling among each other. We would like to thank all of our sponsors for their continued support throughout the year. We would also like to extend a very special thank you to the Ambassador and his wife for their wonderful hospitality. The evening was delightful and we would not have been able to do it without the help of our sponsors and Embassy affiliates.

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1) Monnakarn Suwannarak, NS BlueScope (Thailand); Ben Mitchell, Off Road Accessories; Vathanan Rujiviphusana, Off Road Accessories. 2) Colin Johnson, Aurecon Consulting; Evan Gillanders, Thai Leighton. 3) Leigh Scott-Kemmis, DBM, AustCham President; HE Mr James Wise, Australian Ambassador to the Kingdom of Thailand; Mike Monaghan, Akara Resources PLC, M.R. Chatu Mongol Sonakul, Akara Resources PLC; Peter Warren, Akara Resources PCL; Cherdsak Utha-Aroon, Akara Resources PCL; John Falconer, Akara Resources PCL. 4) Thiphathai Noksakul, The Beaumont Partnership; Yupa Chongpatiyutt, The Beaumont Partnership; Royy Cheenprachar, The Beaumont Partnership; Cheow Teck Ong, Singapore Airlines.

5) Chris Childs, QBE Insurance; Ian Bessant, Toll Logistics; Renee Bowman, AustCham Executive Director; James Tucker, CEVA Logistics. 6) Virapan Pulges, TICON Industrial Connection; Dechakom Boonma, NS BlueScope (Thailand); Soonthorn Tharnpipitchai, NS BlueScope (Thailand). 7) Alan Polivnick, Watson, Farley & Williams, AustCham Director; Clare Zitek; Michal Zitek, The Imperial Queen’s Park Hotel. 8) William Vaughan, Capital Television Group; Raine Grady, Capital Television Group; Warwick Kneale, Baker Tilly Thailand, AustCham Treasurer.9) John Falconer, Akara Resources PCL; Florian Maier, Antares Group; Michael Berger, Antares Group. 10) Shane Burt, CEVA Logistics, AustCham Director; Wannaporn Lertchaikulsathien, Singapore Airlines; Mathuros Kluaymai-ngarm, Singapore Airlines; Sumittra Meesuwan, CEVA Logistics. 11) Peter Skinner, The Beaumont Partnership; Gary Woollacott, Opus Recruitment; AustCham Past President; Wayne Williams, Minor Hotel Group, AustCham Director.12) Josh Hyland, AEC South East Asia, AustCham Director; Alistair Taylor, Central Food Retail; Nick Reitmeier, Central Food Retail; Pim-Orn Panapruksachart, Central Food Retail; Supavadee Nimmanakait, Central Food Retail. 13) AustCham Team.

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AUSTCHAM MEMBERS

AustCham Welcomes New Members

Genkan Creative 4th Floor, The Trendy Building Sukhumvit Soi 13, Bangkok 10110 Thailand Phone: +6688 729 8169 Email: ges@genkan.com.au Website: www.genkancreative.com

- Holiday Rental Management - Permanent Rental Management - Property Sales - Full Trust accounting - Email & SMS Marketing

GENKAN is a total, “end to end” online holiday rental, villa property management solution for Real Estate agents specialising in holiday property management and reservations. This style of software solution is often referred to as CRM or Customer Relationship Management.

With integrated trust accounting, GENKAN features email and SMS marketing, back office, housekeeping, client booking management and property owner management functionality plus much more.

Primary Representative Mr Glenn Smith - CEO Ms Jutamas Lajunnon - General Manager Company Profile: GENKAN brings a new approach to holiday rental property management with online bookings for Real Estate agents and property owners in the business of short term Holiday Rentals Property Management.

GENKAN incorporates functionality in one software solution only previously available by licensing multiple softwares with the hassle to integrate your system.

GENKAN is the CRM solution for short term, holiday rental property managers and offers a solution to meet the needs of all types and styles of businesses.

It operates on a multi-lingual basis for European and Asian dialects.

Change of Representatives - Mr Jansep Ejercito, Director of Sales and Marketing is a new representative of Neon Group Co.,Ltd. - Mr Rewat Suksod, Branch Manager,

Chonburi is a new representative of TOPTALENTASIA - Mr Ross Edward Marks, Director of Retail Development is a new representative of Bangkok Beer and Beverages Change of Company Name - Amari Orchid Pattaya change company name to Amari Pattaya - Fame Tech Co.,Ltd change company name to Fame Engineering Co., Ltd - HNP Counsellors Limited change company name to HNP Legal Ltd Change of Company Address - C D Dodd Scrap Recyclers change company address to PO Box 609, Cloverdale 6985, Western Australia, Australia - Superior A.R.T change company address to 1126/2 Vanit Building II, Lobby Floor, New Petchburi Road, Makkasan, Ratchathewi, Bangkok 10400 Tel: +662 660 1400 - Servcorp Co., Ltd. change company address to Level 29 The Offices at Centralworld 999/9 Rama I Road Khwaeng Pathumwan Khet Pathumwan, Bangkok 10330 Tel: +662 309 3400

“HEY KIDS - ENJOY A FREE BUFFET!” Tell Mum and Dad to take you to Atrium’s famous buffet. It’s stacked high with all their favourite dishes such as roasts, fresh seafood and crispy salads plus live cooking stations. Meanwhile, you can tuck into lots of your favourite kids’ treats and delicious desserts like Teppanyaki ice cream, candy floss and our Chocolate fountain. Best of all, it’s free for kids!

Available from now – June 30, 2014 at Atrium, Lobby floor at The Landmark Bangkok.

Every child under 12 years of age accompanied by one adult eats free during lunch or dinner. Maximum 2 children per adult.

For reservations, please call +66(0) 2254 0404 ext 7777

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AustChamThailand Advance

Eric Kenso Ward, ISB Class of 1979

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

Calendar of Events

From the Chamber Office

Message from the Executive Director

WEDNESDAY 4 JUNE Briefing by Australian Ambassador

Time: 16.30 – 18.00 Venue: The Imperial Queen’s Park Hotel Bangkok Sundowners

Time: 18.00 – 21.00 Venue: The Imperial Queen’s Park Hotel Corporate Sponsor: Servcorp FRIDAY 6 JUNE 13th Volvo Truck and Bus Thailand Convoy for Kids Charity Golf Event

Time: 10.00 Location: Burapha Golf Club, Chonburi WEDNESDAY 11 JUNE Bangkok ABF

Time: 12.00 – 14.00 Venue: The Eastin Grand Hotel, Sathorn FRIDAY 13 JUNE Phuket ABF

Time: 16.45 – 18.00 Venue: Holiday Inn Resort, Phuket FRIDAY 20 JUNE ESB Sundowners

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ast month I introduced members to our upcoming conference titled Enabling Prosperity: moving beyond the middleincome trap. The topic clearly resonated valuably with many of you resulting in swift bookings. This month I would like to draw your attention to a special dinner that will follow immediately after the conference on 25 June. The ‘Australian Alumni Annual Gala Dinner 2014’ will not only celebrate 60+ years of bilateral relations but also recognise the value of quality education; a factor that has a profound influence on the middle-income trap!

Held in partnership with the Australian Embassy Bangkok, this event will feature speeches from HE James Wise, Colombo Plan scholar Khun Mechai Viravaidya and young Alumni Rapee Rojvirasingh. Acclaimed young Alumni, Khun Lordfai Pachimsawat, will also delight the audience with a special contemporary dance performance. The evening will be capped off with an awards ceremony which recognises the significant achievements of Australian-educated alumni whose endeavours reflect admirably on, or bring honour to Australia and fellow alumni.

Four admirable alumni will be recognised for their leadership, entrepreneurship, community engagement and other exceptional accomplishments.

This month’s Advance draws attention to the land of opportunity; Australia. Some of you may not be aware that the international education industry is Australia’s largest non-resources sector and fourth largest export industry. The benefits for Australia extend way beyond revenue generation and the ability to improve

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education facilities and services. It elevates Australia’s reputation, fosters cultural exchange, builds relationships on a global scale, and improves diplomatic relations.

Time: 18.00 – 21.00 Venue: Ocean Marina Yacht Club, Pattaya Corporate Sponsor: Capital TV Productions

For Australian businesses in Thailand, Australian alumni become excellent employees due to their deeper understanding of the organisation’s originating culture, advanced language skills and exposure to divergent thinking around innovation, productivity, and organisational development.

With a room full of quality Alumni, this gala event is not to be missed.

WEDNESDAY 25 JUNE Conference – Enabling Prosperity: Moving Beyond the Middle-Income Trap

In my short time with AustCham I have quickly realised the value in establishing a strong relationship with the Australian Embassy in Bangkok. Their willingness to collaborate, generosity with time, and ongoing support and insight is especially appreciative during turbulent times.

Time: 10.0 – 17.00 Venue: Grand Hyatt Erawan, Bangkok Australian Alumni Annual Gala Dinner

Time: 17.30 Venue: Grand Hyatt Erawan Bangkok

Thank you to our May Sponsors

I am pleased that on countless occasions representatives from the Embassy, AustCham and the business sector are able to come together to achieve collaborative success; with June’s conference and gala dinner being another example of this.

I hope you will all join me later this month for what promises to be a truly insightful and inspiring day.

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

Sponsorship opportunities are currently available for the conference in June. Businesses can also showcase their products via trade booths at the conference. Please email Renee at executivedirector@ austchamthailand.com for more information.

AustChamThailand Advance