Advance October 2013

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

Thailand – A Surprisingly Big Investor in Australia in this edition

ABF Busts Myths about Business in Thailand!

Business Brief News and updates Key Strategies for Managing Your Thailand’s Automotive Sector Company’s People During Change Gearing Up

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community services Voluntary English Teaching: The Greatest Gift is Time

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Chamber events Bangkok Sundowners at Royal Orchid Sheraton Hotel and Towers, Bangkok

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specialist mortgage

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Contents PATRON His Excellency James Wise Australian Ambassador to the Kingdom of Thailand

business briefs 6 Thailand – A Surprisingly Big Investor in Australia 8 Mergers & Acquisitions: Key Strategies for Managing Your Company’s People During Change news and updates 14 Thailand’s Automotive Sector Gearing Up 16 New Era for Myanmar’s Financial Sector

PRESIDENT Leigh Scott-Kemmis DBM (Thailand) Ltd.

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Community services 22 Voluntary English Teaching: The Greatest Gift is Time australianalumni 25 Knowing Australia: The Challenge for Thai Students

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Australian Business Forum 18 ABF Busts Myths about Business in Thailand!

chamber events 26 Eastern Seaboard Sundowners at Cape Dara Resort Pattaya 28 Bangkok Sundowners at Royal Orchid Sheraton Hotel and Towers, Bangkok

AUSTCHAM MEMBERS 30 Member Offers – Accommodation 32 New Members

From the Chamber Office 34 Message from the Office

VICE PRESIDENTS M.L. Laksasubha Kridakon Baan Laksasubha Resort Hua Hin Belinda Skinner TopTalentAsia TREASURER Warwick Kneale Baker Tilly Thailand Limited DIRECTORS David Bell Crestcom-Ra-Kahng Associates Ltd. Josh Hyland AEC South East Asia Co., Ltd. Brenton Mauriello dwp Sam McMahon NS Bluescope Steel (Thailand) Limited Alan Polivnick Watson, Farley & Williams (Thailand) Limited Rananda Rich Blackmores Ltd. Charles Wrightman Natural Ville & Lenotre EX OFFICIO Greg Wallis Senior Trade Commissioner, Thailand COORDINATORS Paul Wilkinson JVK International Movers Ltd. ESB Coordinator Email: paul.wilkinson@jvkmovers.com Trevor Dick Indochine Asset Management ESB Coordinator Email: trevor@indochine-asset.com

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

From the Board

President’s Message Australian-Thai Chamber of Commerce 20th Floor, Thai CC Tower 889 South Sathorn Road Bangkok 10120 Tel.: +66 2 210 0216 Fax: +66 2 675 6696 office@austchamthailand.com www.austchamthailand.com For more information on individual Board Member focus please visit www.austchamthailand.com/ boardmembers

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eptember was a flagship month for AustCham. We launched our new Australian Business Forum (ABF) initiative with our first luncheons held in Bangkok and on the Eastern Seaboard.

You can read more about the Bangkok function in this month’s magazine. We’ll report on the ESB event in next month’s issue.

The turnout for the inaugural ABF was fantastic. We had almost 80 guests. They heard captivating presentations from Visy’s Simon Shale, and our incredibly supportive Ambassador HE James Wise.

It was a great way to start the ABF.

Editorial Committee Belinda Skinner, Rananda Rich, Domenica Agostino, 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 domenica@austchamthailand.com by the first day of the month for publication in the following month’s magazine.

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

AustChamThailand Advance

You can read more about the ABF on our website (www.austchamthailand. com/abf). However, I’d particularly like to encourage you to join our Australian Business Forum group on LinkedIn. You’ll see that there are already some valuable discussions happening on important issues such as the Trans-Pacific Partnership (TPP). We hear a lot about the Asean Economic Community (AEC) here in Thailand.; we shouldn’t forget there are other important trade policy developments as well. The TPP is one of those.

At the time of writing we are also well into the process to recruit a new Executive Director. This is an important decision for AustCham. It is one that I and my fellow Directors are devoting a lot of time to.

We were heartened to receive more than 20 applications for the job. It shows that the role is highly sought after. It’s a great reflection on the Chamber that we’ve had so much high quality interest. The final decision is going to be tough one. We are in the luxurious position, however, of choosing from an impressive bunch.

In my role as President I also sit as a Director on the Thai Board of Trade (BoT). Under the leadership of Khun Isara Vongkusolkit we’ve seen an increase in the already strong level of engagement between the BoT and Chambers like AustCham. At a recent meeting we discussed Thailand’s aspirations to be a regional hub. Is it likely to be realised? Maybe it has already happened? Is there anything holding Thailand back? Are Australian companies using Thailand as their Asian hub?

We’d be interested in your views on those questions. We’re also doing some research ourselves so that we can better understand the issues involved.

One a related note, it’s clear that booming stock markets notwithstanding, economic activity in Thailand is slowing from an admittedly high level. This means that future economic growth is going to depend more and more on productivity gains. Thailand has a lot of low hanging fruit in this regard.

At the same time, Australian companies have decades of experience operating in an environment where productivity is king. So presumably there’s a lot for Australian businesses to contribute to Thailand?

I fear, however, that there’s still a gap that needs to bridged. The challenges are on both sides. Australia needs to recognise Thailand’s business promise. And business in Thailand need to start making the investments required to unlock productivity.

Leigh Scott-Kemmis President, AustCham Thailand www.austchamthailand.com October 2013

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business brief

Thailand – A Surprisingly Big Investor in Australia

By Greg Wallis

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oreign investment in Australia is a hot media topic and China is often the target of this scrutiny, even though it ranks only 11th as a source country for total foreign investment stock in Australia. Thailand, whilst ranked 17th by the same measure, has had by far the fastest growth of our top 20 investor countries in the past five years (ABS, 2012). In 2012, total Thai investment stock in Australia was valued at A$ 7.3 billion, having skyrocketed 21-fold from A$ 338 million in 2007.

During the same five-year period (20072012), Thailand’s foreign direct investment outflows increased 13 times to US$ 74 billion, and in 2012 Australia was ranked as the 7th biggest recipient of Thailand’s FDI outflows (Bank of Thailand, 2013).

This rapid growth in Thailand’s footprint in Australia and abroad is a surprise to many who don’t usually think of the country as a significant foreign investor. But in fact the internationalisation of Thai companies is not a new phenomenon. It started in the 1990s when Thailand adopted financial liberalisation policies, although the first wave of rapid and opportunistic expansions ended abruptly with the devaluation of the baht during the Asian Financial Crisis from 1997.

Mitr Phol Sugar acquired Queensland company MSF Sugar Limited for A$ 313 million in 2012.

alisation is changing the mindset. Now Thai companies are recognising that a global presence is desirable and within their reach. This is mostly manifested in an expansion initially into ASEAN markets, but more global exceptions exist with companies that do not simply seek cost advantages but want to use interna-

tional expansion to upgrade their position in the value chain of their industries, and/ or to increase efficiency and diversify risk.

The significant growth in Thai investment in Australia in recent years has largely been on the back of a number of highvalue energy investments.

Still, Thai multinationals remain sparsely represented in the global arena, reflecting their latecomer status and limited size and scope of activities. Protection from foreign competition at home combined with a relatively large domestic market has made Thai companies comfortable in the domestic market, especially compared with their counterparts in Singapore or Malaysia. Thai firms have mostly sought to grow via diversification into other industries at home rather than expanding abroad.

But increased competition abroad resulting from growing globalisation and region6

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Minor International acquired Oaks Hotels & Resorts Ltd in July 2011.

AustChamThailand Advance

business brief

PTT Exploration and Production Public Company Limited (PTTEP) acquired 100 per cent of Coogee Resources Limited (now PTTEP Australasia) in 2009. PTTEP Australasia is currently developing the Montara field in the Timor Sea as well as additional oil and gas exploration permits in Western Australia with approximately 37 million barrels of oil reserves from these fields.

Banpu Public Company Limited acquired New South Wales-based Centennial Coal in November 2010 for A$ 2.5 billion as part of a strategy to increase growth and diversify its geographic base. Centennial Coal controls ten coal mines in the Hunter Valley and Lithgrow regions of NSW. Half of Banpu Group’s coal reserves (381 million tonnes out of 683 million tonnes) and over half its coal resources are located in Australia.

In 2012, Ratchaburi Electricity Generating Holding Public Company Limited acquired an 80 per cent stake in Transfield Services Infrastructure (TSI) Fund, which was renamed RATCH Australia Corporation Limited. RATCH holds three Australian wind farms and four thermal power plants. RATCH plans to spend AUD$ 1 billion in the next three years buying power plants and building wind farms, aiming at staying in step with Australia’s future energy policies, especially in renewable energy.

Most recently in July 2013 Electricity Generating Company Limited (EGCO), Thailand’s first Independent Power Producer, acquired Boco Rock wind farm in NSW for A$ 112 million. Thai companies have also made some significant investments in other sectors in Australia.

The significant growth in Thai investment in Australia in recent years has largely been on the back of a number of high-value energy investments.

Mitr Phol Sugar, the world’s fifth-largest sugar producer and the largest producer in Asia, acquired Queensland company MSF Sugar Limited for A$ 313 million in 2012. MSF Sugar is Australia’s thirdlargest milling group by annual crushing capacity of 4.7 million tons of cane.

It owns four sugar mills, including three in far north Queensland and a fourth at Maryborough.

In the tourism and hospitality sector, a number of Thai property and hotel companies have existing investments in Australian tourism infrastructure. TCC Hotels Group acquired three hotels in 20082009 namely, Novotel Rockford Sydney, Hyatt Hotel Canberra, and Intercontinental Adelaide. In addition, as a result of the acquisition of Singapore-based Fraser and Neave in 2013, the TCC Group’s presence in the hotel sector is likely to further expand. Minor International acquired Oaks Hotels & Resorts Ltd in July 2011.

Oaks own 39 properties with a total of 4,300 rooms in Australia, New Zealand and Dubai. Another Thai hotel company, Amora Group, operates the two Amora branded hotels in Sydney and Melbourne.

In the automotive sector, three Thai companies (Carryboy International, Aeroklas and Sammitr Motors Manufacturing) have established sales, distribution and assembly facilities in Australia. Sammitr Motors has also established a research and

development centre in Melbourne in collaboration with the Cooperative Research Centre for Advanced Automotive Technology (AutoCRC).

With the Thailand Board of Investment (BOI) now promoting Thai investment in foreign markets, and the growing globalisation of Thai corporations, the trajectory of growth of Thai FDI abroad is expected to continue. In Australia this is likely to be in tourism infrastructure, resources and energy, and food and the agribusiness sectors. This investment is unlikely to approach the levels of the US, UK, Japan and Singapore, but as new major investments occur it might make Australians more aware that ASEAN’s second biggest economy is starting to flex its considerable economic power on the international stage.

This article has been contributed by Greg Wallis, Senior Trade Commissioner for Austrade Thailand. The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency. Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.

More information can be found at: www.austrade.gov.au

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AustChamThailand Advance

October 2013

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business brief

Mergers & Acquisitions: Key Strategies for Managing Your Company’s People During Change

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ergers and acquisitions are common occurrences in any economic environment. Whether the markets are up or down, or the deals are friendly or hostile, M&A can be a key element of your company’s strategy to create additional value and maximise sustainable competitive advantage.

A number of factors – including strong corporate balance sheets, cash-rich companies looking to consolidate their industry positions, and low interest rates that allow for greater leverage – are driving high levels of M&A activity in today’s marketplace.

M&A is here to stay Every company and working professional should expect to be involved in a merger or acquisition at some point in time. This is especially true for individuals based in North America, where deal activity annually outpaces the rest of the world in terms of volume and size.

However, despite the potential downsides and general uncertainty typically associated with mergers and acquisitions, this shouldn’t necessarily be cause for concern. Well-conceived and executed transactions can dramatically alter the competitive landscape, giving companies a sudden and distinct advantage over their rivals. Smart deals also allow companies to rapidly accelerate their growth and development in ways they often could not have achieved by organic means alone.

At the same time – even assuming the perfect confluence of elements – the success or failure of a particular deal ultimately lies with the implementation. Combining product and service lines, employees, functions, locations and brands are but a few of the challenges that must be overcome to realize a transaction’s full potential.

Each of these potential integration stumbling blocks raises important human 8

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capital issues that must be addressed – from the announcement day through to the formal close of the transaction and beyond. The marketing, legal, human resources, accounting and finance departments are certainly no exception and will each have their own set of integration issues to manage.

As such, Lee Hecht Harrison developed the following recommendations to help business leaders better prepare for and manage through a merger or acquisition.

among employees and customers – your company’s most valuable assets. Employees will be justifiably concerned about job stability. This is certainly true for various functional areas including marketing, legal, human resources, accounting and finance departments where there are likely to be talent overlaps. Additionally, customers will be on alert to potential changes in product/service offerings or pricing. Depending on the degree of interaction between employees and customers, this can pose a significant risk.

Be prepared

Is your company an acquisition target?

One of the primary issues to overcome is the uncertainty created, particularly

First, understand if your company is a potential acquirer or acquisition target.

AustChamThailand Advance

business brief

Review public documents and statements by senior management. If the company is publicly traded, read earnings releases, securities analysts’ reports and the annual, half yearly and quarterly reports.

Also, study the industry at large. Where are the new growth avenues? How are customer demands evolving? What are your competitors doing to adapt? Understanding the underlying economic and competitive drivers will help you understand whether your company might see strategic value in a merger or acquisition of some kind.

Whether a potential acquirer or acquisition target, list the rationale or “why?” behind the deal. Some of the most common reasons companies become involved in M&A include creating synergies, increasing market share, vertical integration and geographic expansion.

Should a deal ever occur, answering these questions will help you understand the underlying factors for both the buyer and the seller, as well as the rationale for the combined entity in terms of creating value.

It also will allow you to make an informed projection as to the potential impact on the company as a whole.

Preparing yourself mentally for several different scenarios will lessen the element of surprise upon learning of a merger or acquisition. This is a critical head start.

Employees tend to react poorly to surprise, which can be disastrous for the organisation. Distinguish yourself by getting ready to move quickly and with certainty to help the combined entity realise the full promise of an M&A. Create standby plans While you may not receive advance notice of a merger or acquisition – given the confidentiality involved – this doesn’t mean you will be completely unprepared.

Regardless of whether your company is the acquirer or the acquired, there is a fairly standard set of steps necessary to complete a deal and begin the integration.

Address all constituents In almost every case – despite rampant use of the term “merger” – one company is typically dominant and the other subordinate. Since deals aren’t legally con10

October 2013

summated until the formal close, both companies need to prepare communications plans for the announcement day through the pre-close period. Acquiring companies will need plans that extend further to include the deal close and the beginning of the integration. Among the primary, core audiences for your company to address through M&A communications plans are senior managers, rank-and-file employees, customers, shareholders, partner companies and key suppliers.

Begin by drawing up a list of appropriate company spokespeople for each audience and list the preferred communications channels to reach each audience. Then, create a simulated calendar of activities beginning with the day of the announcement and continuing approximately 90 days to a proposed close date.

Designing an “inside-out” approach to communications that starts with employees will begin to temper some of the uneasiness caused by the deal announcement. At the same time, such a campaign will provide employees with key messages to amplify and extend to external audiences.

Identify key assets Deals announced to great fanfare that create high expectations among core audiences often wind up actually negatively impacting the value created independently by the two companies. Key metrics such as stock price, return on equity and return on assets commonly lag below pre-announcement levels long after the deal is completed.

Merger failure

Staff communication is key Of course, until the deal closes, there is very little a company can share about specific plans for the integration. Compensate by increasing the frequency of communications – specifically to employees – on issues large and small. By nature, accounting and finance departments communicate throughout the day on a range of issues. Capitalise on that internal traffic by providing small but meaningful reassurances to employees at each level.

What’s the cause? For one, integrating two companies takes resources away from day-to-day operations. Second, the upheaval caused by mergers and acquisitions creates problems specifically in the areas of employee retention and customer attrition. Finally, and somewhat incredibly, acquiring companies often conduct poor or incomplete due diligence. As a result, companies can find themselves the owner of something quite different than expected.

AustChamThailand Advance

business brief

Job number one during the pre-close period is to avert any disruption that might cause the other party to re-evaluate the initial terms of the deal or scuttle the agreement completely. If one or both companies are publicly traded, this applies to the shareholder base(s), which can actively oppose a deal.

Preserve your top performers From a human capital perspective, every good manager can instantly cite a list of productive and prized employees. Compile that information to identify valuable individuals across the entireorganisation.

Clearly establish what assets need and deserve “protection” during the pre-close period and integration process. Create formal action plans to secure critical employees and customer relationships.

Establish formal and informal channels to collect feedback. As much as possible, eliminate unnecessary distractions. And finally, aggressively work to maintain productivity at all levels.

Focus on the integration Agreeing to terms on a mutually acceptable deal is a difficult and daunting task.

The urge to “relax” once the terms are agreed upon must be resisted. Actually melding operations and corporate cultures is where theory meets practice and the hard work begins.

The big picture is key, but don’t lose sight of critical business tasks.

Mergers often fail not because of faulty vision or a bad fit, but poor communication and execution. The integration effort diverts resources and attention from key day-to-day activities like financial planning, budgeting and month-end close – all of which must continue seamlessly. In addition to regular duties, employees are tasked with new projects and other activities related to the effort.

Before beginning the process, it’s important to recognise that no two companies are alike. Different organisations have different processes and protocols that have evolved over time and work specifically for them. Two companies that, from all outward appearances seem alike, may not even share the same perspective on the marketplace!

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Aligning corporate cultures Start by identifying the primary obstacles to integrating the companies and realising the full value of the combination. For the accounting and finance department, documentation maintained on internal processes and controls for corporate governance purposes can serve as a useful tool for the re-engineering of functions and employees.

From a cultural perspective, put your knowledge of your own company – both the good and the not so good – to productive use. From the first interactions, take notes on the substantive differences in the two companies’ outlook, processes and styles. Be agnostic when evaluating best practices. In particular, resist wherever possible simply adopting the processes of the dominant company.

Communicate (relentlessly) Tensions among senior management and employees on both sides will run high from the outset. Since eliminating redundancies provides immediate cost savings, those most at risk following a merger include employees working in duplicated roles and those whose value to the organisation isn’t immediately apparent. Organisational changes, major and minor, are certain.

During the pre-close phase it’s important to constantly communicate to internal audiences, even when there is little “new” information to report. Leaving a communications void in such an environment will only increase the sense of uneasiness among employees and allow negativity to creep in.

As mentioned, once the deal isfinalised, the senior management team must be fully invested in making the new venture work. The first challenge for the combined entity is to mesh the communication style of the two companies. While specific details of the integration are under consideration, begin to communicate – in one voice – the process by which decisions will be made.

Energize and motivate your new staff In advance of the reorganisation announcement, utilize key managers to assess mood and morale. Prepare answers

to the tough questions so employees understand how the management team arrived at its conclusions. In the event job cuts are necessary, make them swift.

Following the announcement, schedule presentations by senior management to all remaining employees on the specific plans for the combined entity to compete in the marketplace.

Typically, there’s a strong sense of relief among the remaining employees that can beenergising. An effective communications program can help generate momentum among employees moving forward.

Proactive management is your best tool Mergers and acquisitions are a common occurrence, presenting companies large and small with uncommon challenges.

Aside from the operational aspects of combining the assets of two companies, there are significant human capital issues to address – beginning with the initial announcement, all the way through the integration.

Complicating matters are the personal and professional uncertainties individuals face during such a deal – from senior management to rank-and-file employees. In order to realise the full potential of a deal, your company must anticipate and actively manage these issues at every step.

LHH|DBM is a leading global human capital management firm providing transition services to private and public companies, not-for-profits and governments. With almost 45 years of experience creating innovative career transition solutions, LHH|DBM annually guides more than 7,000 organisations and 250,000 individuals through key transitions caused by significant change events or by the dynamic ongoing employee changes that impact business daily.

LHH|DBM counsels organisations on aligning workforces with business strategy after mergers, acquisitions and restructurings; transitioning employees for increased speed to competency or improved productivity; and outplacement planning and implementation. www.lhh.com

AustChamThailand Advance

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News and Updates

Thailand’s Automotive Sector Gearing Up

A

uto manufacturers based in Thailand are continuing to boost production capacity, with ground being broken for a series of new plants and expansions to existing facilities. However, there are some concerns that both domestic and export sales may ease later in the year due to expected economic cooling at home and abroad.

The automotive sector’s contribution to the Thai economy represents around 12 per cent of GDP, making it Thailand’s third largest industry, and one of its largest employers, providing some 400,000 jobs.

Unlike some of its regional rivals, Thailand’s automotive sector is fed by its own stream of parts, with locally manufactured components representing around 80 per cent of production input. The parts subsector also represents a significant export earner in its own right, generating revenue of US$ 5 billion in 2012, adding to vehicle exports of more than US$ 20 billion.

Having briefly been usurped by Indonesia as South-east Asia’s largest automotive market in 2011 due to flooding that year, Thailand returned to the top position in 2012, with sales of just over 1.44 million vehicles. This, combined with exports of a further one million, took total production for the year to 2.45m, a figure the industry looks set to overtake in 2013, with output as of the end of May running to 1.123 million units, well over twice the 488,000 vehicles that rolled out of Indonesia’s factories in the first five months of the year.

According to data issued by the Federation of Thai Industries in June, automotive exports for May were just over 86,500, a 28 per cent increase month-on-month, while overall shipments for the January to May period were up 21 per cent, to 438,000.

Local demand has also been accelerating, in part due to a strong recovery from the 2011 flooding, fostered by a government support scheme offering tax rebates to first-time car buyers, which helped post domestic sales by 80 per cent in 2012.

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Rising domestic demand and higher overseas sales have prompted a number of leading manufacturers to invest in capacity, with Japanese producers Mazda and Honda both building new facilities. Honda has started construction of a plant at the Rojana Industrial Park in Prachinburi province, which when operational in 2015 will add 120,000 units to the firm’s existing production capacity of 280,000. The company is also expanding its existing factory in Ayutthaya with the aim of lifting total national output to 420,000 units by 2015.

Not to be outdone, Mazda is in the process of building a plant to produce auto transmissions, with the US$ 257 million factory located in the province of Chonburi.

US manufacturer Ford is another company looking to boost its Thai output, having announced plans to expand its existing plant, a US$ 450 million factory that opened last year with a capacity of 150,000 units, up to 450,000. The first stage of this project, expected to come online this year or early 2014, will boost output to 200,000 units.

While

manufacturers

are

increasing

capacity, there could be some challenges further down the road for the industry.

Some experts are predicting a cooling of domestic demand, with the Thai economy widely expected to slow slightly. Though the Bank of Thailand still believes GDP could expand by 5.1 per cent this year, other agencies and analysts are taking a more conservative approach. The IMF has forecast growth of 4.75 per cent, while in early July the University of the Thai Chambers of Commerce predicted the economy would increase within the range of four per cent to 4.5 per cent, down from its earlier estimates of 4.8 per cent to 5.2 per cent.

Slower growth in other regional markets could also see a tapering off of automotive exports, though like domestic demand, these could rebound in the new year as the global economy regains momentum, as forecast by the IMF in its latest world economic outlook report.

There is also some uncertainty over proposed changes to government’s industrial incentives, a policy that has to date benefitted the automotive sector. The

AustChamThailand Advance

ISB Grade 2 - 1966

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

News and Updates

state offers tax breaks to certain enterprises to set up shop in designated industrial zones, with the geography-based support scheme favouring developments in areas well away from the capital. This policy has been successful in attracting investment to regions previously lacking in employment opportunities and industrial activity. However, the government is reportedly considering a change of focus, with incentives to be directed towards industries providing higher value-added goods and services.

While the automotive sector has been designated as one of several that will be able to take advantage of the new programme, it is as yet unclear what form this support will take or whether it will be extended

to cover existing investments. Government incentives may become increasingly important to Thailand’s auto industry, due to a growing shortage of skilled labour, which has pushed up wages and made it difficult to staff production lines.

Though most forecasts predict Thai domestic auto sales to increase or at least maintain last year’s levels, it is unlikely there will be the sharp jump in vehicle numbers rolling off the lots as happened in 2012. Export rates too will depend on how well overseas markets cope with the level of economic cooling predicted by the IMF, though as the increased investments by manufacturers indicates, the Thai automotive industry is looking beyond the occasional bump in the road.

Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of Asia, the Middle East, Africa and Latin America. OBG offers comprehensive analysis of macroeconomic and sectoral developments, including banking, capital markets, energy, infrastructure, industry and insurance.

OBG’s acclaimed economic and business reports are the leading source of local and regional intelligence, while OBG’s online economic briefings provide up-to-date indepth analysis. OBG’s consultancy arm offers tailor-made market intelligence and advice to firms operating in these markets and those looking to enter them. www.oxfordbusinessgroup.com

New Era for Myanmar’s Financial Sector

F

resh legislation has paved the way for a major shift in Myanmar’s financial sector, spearheaded by the separation of the central bank from the Ministry of Finance and Revenue.

The long-awaited Central Bank of Myanmar (CBM) Law was signed by the president, Thein Sein, on 11 July. The legislation secures the bank’s autonomy and clarifies its responsibilities. Widely seen as one of the key building blocks in the recent round of reforms, the law is set to radically shift the way the financial sector is regulated in Myanmar, while providing potential investors with a confidence boost.

The financial system in Myanmar remains one of the least developed in the world, with under 10 per cent of the population holding of a bank account and less than one citizen per 1000 active in the credit market. Both individuals and businesses have struggled to access capital from financial institutions for decades, due to a combination of high inflation, bank runs, insider lending and low capital bases.

Attracting depositors back into the banking system is regarded as one of the biggest challenges Myanmar faces.

The New Light of Myanmar, which usually voices state thinking, highlighted the problems that had plagued the old system when giving details of the new law. It cited “slow responses” and “bureaucratic sentiments”, adding that the central bank in its prior form was “most responsible for the current weak

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banking system” and “one of the main restrictions for potential investors”.

Bodies such as the IMF had criticised the CBM for its lack of budgetary and operational independence from the government of Myanmar, which permitted the state to print money to finance its deficit. The new CBM Law gives the central bank the authority and responsibility to implement monetary and exchange rate policies independently from the government. The institution is expected to act as a lender of last resort on rare occasions only, using its autonomous power to enact the policies needed to achieve its broader aims.

The primary objective of the central bank will be to keep inflation in check, while sustaining monetary and fiscal stability. The new body, alone, holds the right to issue new currency.

It has also been tasked with establishing a credit bureau that will gauge the creditworthiness of borrowers.

The law requires the CBM to regulate local banks, oversee the development of capital markets and manage the official foreign exchange reserves, which are forecast to increase in the coming years on the back of rising gas exports. As reserves build up, confidence in the local currency, the Myanmar kyat, is expected to grow, with investors likely to eye the country more favourably. The responsibility for deciding how to achieve these goals will rest largely on the shoulders of the new CBM governor. The post looks set to be filled by Kyaw Kyaw Maung, who

has been recommended by the president’s office, with a formal announcement likely to be made in the coming weeks.

Kyaw Kyaw Maung, who graduated from Mandalay University before joining the ministry of finance, has already served as the central bank governor, between 1997 and 2007. Under the new law, the role will be upgraded to ministerial level, giving the governor a responsibility which, until now, has been non-existent in Myanmar.

In line with international practice, the overhauled central bank will be expected to adhere to a much stricter level of transparency and accountability. Under the new law, the bank will be required to submit its reports on monetary affairs to the government at least twice a year and publish reports on monetary developments quarterly. The information flow will allow financial researchers and onlookers to assess risk more effectively and invest accordingly.

The complex systems of monetary policy and regulation required by a central bank take years of fine-tuning and can still fall prey to the market forces around them, as western nations, whose bank regulations are built on decades of detailed analysis and data, know all too well.

Myanmar’s challenges, however, will be those faced by a country starting almost from scratch. As it steels itself for the gargantuan task ahead, the world and its investors will be watching closely.

AustChamThailand Advance

AustCham Bronze Corporate Sponsor: NIST

NIST Celebrates Outstanding Results Achieved by Class of 2013 NISTâ&#x20AC;&#x2122;s graduating Class of 2013 achieved outstanding results, improving on the strength of previous years.

Of 98 students the average score of candidates who passed the IB Diploma was 35, compared to the 34 point average in 2012 and 33 point average in 2011. Additionally, 97 per cent of students from the Class of 2013 successfully passed the IB Diploma, a significant improvement from the 85 per cent pass rate last year.

Notably two students, Jenny Holloway and Ritah Chumdermpadetsuk, received a perfect total score of 45 points, placing them in the top 0.25 per cent of candidates worldwide. In addition, Emily Daykin and Marten Dondorp achieved a near-perfect score of 44 points. In total, 16 members of NISTâ&#x20AC;&#x2122;s graduating Class of 2013 attained

marks of 40 points or higher, placing them in the top 6.6 per cent of the world.

Members of the Class of 2013 have received offers to study a great range of courses at the most respected and prestigious universities in the world, including

the University of Cambridge, University of Oxford, Princeton University, UC Berkeley, Imperial College London, University of Toronto, University of Pennsylvania, New York University, University of Hong Kong, University of Sydney, and Pennsylvania State University.

Australian Business Forum

ABF Busts Myths about Business in Thailand!

By Janna De Vos and Mark Carroll

A

ustCham’s first Australian Business Forum (ABF) turned ‘mythbusters’ as Simon Shale, General Manager of Visy Packaging (Thailand) Ltd., and HE James Wise, the Australian Ambassador to the Kingdom of Thailand, took aim at two popular misconceptions about business in Thailand.

Recalling the recent success of Visy’s operations in Thailand, Shale debunked the view held in some quarters that commercial success there is founded on cheap labour. He also backed strongly the view of Ambassador Wise that political instability in Thailand had not hampered business growth in any large-scale way, pointing to his own business as an example. Thai politics was played tough, but all sides were pro-business at the end of the day.

The ABF is a new Chamber initiative, supported by the Australian Government through its Asian Century Business Engagement Plan. Shale spoke first at the inaugural ABF luncheon in Bangkok, rounding up as myth-buster number one. His opening salvo was to challenge perceptions that Thailand was simply a base for international business

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to outsource sweatshop-style labour intensive production processes. The extraordinary success of Visy’s Thailand operations was due to technology and expertise, not labour price.

In fact, Visy has nearly doubled the size of its factory in Rayong, investing some 180 million Baht (A$ 6 million) in an extrusion blow moulding machine.

This leading-edge technology is only the third of its type globally. It will allow Visy to produce up to a staggering 120 million plastic food jars. They are threequarters the weight of existing products. Such is the level of automation in Visy’s state of the art Thai facility that it employs just 70 staff locally.

well as being filled locally for domestic consumption, they are exported from Thailand for filling in China and the Philippines. As is the case for so many businesses in Thailand – both local and foreign – it is an ideal base for expanding into rapidly growing middle-income markets in Asia. So the off-shoring notion just doesn’t stack up. Coming to Thailand is about getting access to a much bigger market – in Visy’s case, reaching out to billions of customers.

Visy’s high-tech research and development remains in Australia. Experts fly-in regularly to share their knowledge with locals who run the sophisticated Thailand plant. This is a lynchpin of success according to Shale. It is a model that mixes the strengths of Thailand with the strengths of Australia – and produces something even more formidable.

The Ambassador’s overview of the political situation in Thailand focussed on three questions which commonly arise in Bangkok: Will there be political disturbances later in the year? Will there be an early election? Will there be a coup? His main conclusion was that for the next few years Thailand’s politics is likely to look a lot like the last two years.

The government is well established and an early election is unlikely before amnesty legislation and some constitutional amendments are passed by the Parliament. The government may even run its full term (to mid-2015).

On the myth that Thailand is simply a destination to off-shore Australian jobs, Shale landed a knock-out blow.

He explained that most of the superlightweight jars made in Thailand are for Visy’s major customer, Dole. As

The Ambassador also reminded the largely business audience that all political parties in Thailand are pro-business and that Thailand’s political conflicts rarely manifest themselves in the workplace. The numbers provided the proof.

AustChamThailand Advance

Australian Business Forum

Herein lies a crucial message for Australian business, says Shale, “Thailand is not Australia”. Thai business culture is significantly different to Australian and Western business practices. Foreign businesses operating in the Asian market should not assume that they can simply carbon copy their Australian business into an Asian country. They “have to learn to open their minds and embrace different business cultures”.

Shale implores Australian companies to consider their business ideas in an Asian market context. Too often, he says, they limit their vision to Australia. “Asia is large, diverse and potentially very lucrative”. Within Asia Shale points to Thailand as having some natural advantages. Its continued economic growth and expanding middle class means there is a substantial local customer base with dramatically increasing market-demand. Thailand’s central location in the Southeast Asian region also reduces logistics costs, and at the same time opens pathways to new business opportunities in the rapidly developing markets that surround Thailand.

Another advantage has been the Thai Board of Investment. It has been singleminded in its mission to smooth the way for foreign investors like Visy to establish in Thailand. BOI service and support has been world-class.

Significant economic downturns in Thailand coincided with economic crises such as those that occurred in 1997-98 and 2008 – or natural disasters such as the 2010 floods – not political instability.

Shale was quick to reinforce the Ambassador’s point. Having re-established in Thailand in 2009, Thai politics has had minimal impact on his business.

Visy’s success story in Asia, however, is not one without hardship. Visy first tried to tap the Asian market in 1987. With an initial joint venture investment of over 400 million Baht (A$ 14 million), Visy’s

AustChamThailand Advance

characteristically ambitious expectations were not initially realised. The JV relationship soured. With pockets many million of Baht lighter, Visy took a hiatus from Asia until 2009. Twenty-odd years later it re-entered the Asian market, its new outlook and approach turning Visy into a remarkable regional success story.

The impressive shift from first-time flop to today’s success begs the question “what was different second time around?”. According to Shale, it is Visy’s improved understanding and appreciation of the Asian business culture.

Shale’s final message to Australian companies looking to establish in Thailand is, “do your homework”. Like business anywhere, there must be a clearly identified customer and viable business case. “Set targets, be flexible and be willing to adapt”. To grow the business once it is established, continue the cycle.

In the case of Visy, Shale says that to understand its Thailand success story it is important to consider Visy’s history and corporate ethos. From modest beginnings in Melbourne, Australia, in 1948, it has become one of the world’s leading privately owned packaging, paper and recycling companies with an annual revenue of about 118 Billion Baht (A$ 4 Billion). It is singly driven

October 2013

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Australian Business Forum

in its vision â&#x20AC;&#x153;to be the leading provider of recycling, paper and packaging products and servicesâ&#x20AC;?. Visy aims to do this by â&#x20AC;&#x153;stepping out of its comfort zoneâ&#x20AC;? and â&#x20AC;&#x153;not doing what everyone else doesâ&#x20AC;?. The business operates around a dynamic business model that fosters innovative, sustainable solutions for superior business returns. Company leaders take great pride in knowing their market and knowing their product. One of their favourite sayings is â&#x20AC;&#x153;if we do not value it, no one will value itâ&#x20AC;?.

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As for the millions of new plastic jars now made in Thailand, they are a fine example of a Visy product reflecting the Visy corporate culture. Whatâ&#x20AC;&#x2122;s in a jar that weighs a quarter less than anything else on the market? For a start less material. Which means lower transport costs at all points in the supply chain. Less waste, less environmental impact, and less cost for consumers.

This is what Visy means by its corporate motto, â&#x20AC;&#x153;For a Better Worldâ&#x20AC;?.

Of course itâ&#x20AC;&#x2122;s not all altruism. For Visy, business in Thailand is rewarding. And

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October 2013

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that means profits are up! Well and truly up.

The Australian Business Forum (ABF) is a new initiative of the AustralianThai Chamber of Commerce. It is sup-

ported by funding from Austrade as part of the Asian Century Business Engagement Plan.

For more information please visit www. austchamthailand.com/abf.

AustChamThailand Advance

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Staffing

Research

Learning

Consulting

community services

Voluntary English Teaching: The Greatest Gift is Time

By Belinda Skinner

J

ust over six years ago, I had the desire to take part in some form of community activity. Here I am in Thailand and can see that so many could benefit from help and assistance, yet I was at a loss of what to do or how to go about it.

Then I read in AustCham’s Advance magazine about the voluntary English teaching program that they ran.

Although extremely hesitant, I put my name down, even though I had absolutely no teaching experience whatsoever! Saturday morning came and I joined a group of about eight eager volunteers - both Thai and Farang. I had no idea what this was about – I was going in green!

During the trip down to Chonburi, Martin Kyle (the then Executive Director) says to me “Sorry Belinda, but we don’t have any experienced people here today, you have to lead a class” … What the? I was horrified, shocked, scared, bewildered – you name it – I was feeling it! Martin reassures me “Don’t worry here are some games and some activities – just go in and have fun with them!“ Oh boy, fear took over. I wasn’t a teacher, I don’t even have kids!

These children were going to eat me alive!!

I walked in that door… and I was hooked!

Six and a half years later, I’m still religiously travelling down to our schools in the Eastern Seaboard. In that time, I’ve rarely missed a month. I now run the program and also write some lesson plans.

And yes, I hear myself telling some of the volunteers “Sorry xxx, but I need you to lead a class!” Oh the look on their faces is something I always remember well!

We have a wide variety of volunteers that join us – both Thai and Farang; some long timers and some new. Our biggest problem is that we don’t have regular people ,or a bigger list of interested people! We don’t ask for much; just reliability. If you say you will come along, then

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you come – no shows are very difficult to handle and we really are letting the children down.

No experience is needed. Just some enthusiasm! It’s really easy…honestly!

We take care of three schools in Chonburi and Rayong provinces. They are true upcountry schools. The students are from rubber plantation and farming families. Our visits are only once a month so, in reality, we only visit them three to four times a year. This is very little to be able to support the English they learn in class! However, our aim is twofold. First is to encourage them to learn English, make it fun, and encourage them to keep going. The second is to give them interaction with foreigners and show them that Farang really aren’t scary! Here I am with very little Thai and here you are with little English – yet we are trying to communicate!

After doing it for so long, I wanted to know the opinions and views of other volunteers.: Mark Digby from Linfox was one of those poor unfortunate guys who joined us a couple of months ago and on arrival,

I thrust a lesson plan in his hand and informed him he had to lead a class! Low and behold – he came back, so I was curious to find out why. His response was: “It’s rewarding and enjoyable and the children are so eager and keen to learn, and if they are prepared to give up their time on a Saturday then it’s the least I can do. My second session was more fun as I knew what to expect and may be a bit more relaxed. The louder the class the more fun the children were having but at the same time learning.”

Khun Kasemsri (Tai) who joined us quite some time ago, in the capacity of AustCham public relations, enjoyed it and felt so good to be able to give back, that she kept coming back! She states “I always feel happy every time I join the English class sharing some English experience with the children. It is the fact that people do not want to get up early especially during weekend when they do not have to go to office, however, it’s just only once a month why not. Talking in English as much as possible with children is a great experience they may not have much in their classrooms or their normal life”.

Josh Hyland from AEC and AustCham Director tells us “I seem to have noticed

AustChamThailand Advance

community services

about. How could we make it fun and get the kids to participate as this is not their usual style of learning. It’s certainly out of their comfort zone!

an increasing trend in simply donating cash to support communities. Whilst this is convenient – particularly with today’s fast-paced lifestyles – so much more is to be gained by the donor by getting involved with their project of their choice.

There’s nothing much more satisfying than to teach the children skills they will need to use in the future, having a laugh with them and making new friends on the trip. Certainly worth giving up your Saturday.”

What surprised Mark was that it wasn’t structured or disciplined, however he soon learnt that this was the way the kids enjoyed themselves. That’s what we are here for. To make it fun and enjoyable!

No one really knows what to expect when we first go and each one of us gain something that money just can’t buy. For Josh, he explains that his experience with the kids is that they are so eager to learn and really give it their best. “They also love to laugh and want to make friends with their English teachers. At the end of the day when the children line up and thank the teachers, we have to say thank you back for their effort and for teaching us how to be grateful for all we have”.

But what makes this special to people?

Mark tells me “it’s the look on the children’s faces as the team exit the mini bus and the buzz from the children’s excitement”. For Khun Tai “It’s the enthusiasm of the students and their smiles to learn

To me personally, the kids don’t judge you. They don’t criticise you for your lack of teaching ability, they really enjoy the simple things. If you can make them laugh and have some fun, they think you are great. The kids are wonderful to work with, well behaved and so willing to help each other out. No one in that room judges another – not them, not us, nor their friends.

After a couple of hours of teaching, the classes gather together and we provide lunch that we have brought.. One memorable moment that Khun Tai shares is “I still recall the first time AustCham ThaiEnglish even though it’s their weekend.

They always smile prior, during and after the two-hour-English class.”

The day is simple. We set off at 8.00am in a minivan from the AustCham office. All are very quiet, sleepy and anxious bunch of people. In fact Mark states when I asked him about what he likes best, he couldn’t pinpoint one thing but he did joke that it was the “ten minutes of chatter that happens before everyone falls asleep”!

Once we arrive, everyone is divided up into the three classes and set off to play games and activities with a bunch of very eager kids. Remember that for these kids it is all voluntary. They don’t have to

AustChamThailand Advance

attend! For Khun Tai, this is her best time.

She shares with me that “I am always pleased seeing children participate, the way they answer questions in English as well as the way they help their friends who may not be good at English”. They love to help each other. If someone is struggling, they always offer assistance and the answer. No one feels ashamed and that is something we encourage. No one is ever wrong, we just try again. For me that is how I start the day off. I sit on the floor and ask each child their name and in my very poor Thai I repeat it. 99 per cent of the time I get it wrong and have the kids in fits of laughter. This is my way of showing them, don’t worry – just try! We are there for them to have fun. This was something Khun Tai was concerned and curious

October 2013

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community services

If there is anything I can do to support the program further please let me know”.

land offered lunch with Au Bon Pain sandwiches for the students and we asked questions with those words related to food. However, it looked like they did not enjoy the menu. Probably they were not used to having a Western menu. When AustCham changed the lunch to sticky rice with fried pork it seems everyone enjoyed the menu.”

Afterwards, everyone boards back into the van… and boy is it a VERY different atmosphere!! There is a huge amount of chatter and excitement, comparing what funny incidences happened with the kids etc. People are on a natural high. We start the journey back to Bangkok. However we reward the hardwork from our volunteers by stopping for a seafood lunch.

After lunch everyone piles back into the van for the journey back… silence! As you look around the van, everyone has gone to sleep!! It’s been a tiring day. A couple of hours of full energy and a full belly makes for a bunch of happy people!

This is true, I would also hate to see this program die, the kids get so much from it, albeit what we provide is so small!

We would really love for you, or anyone you know to come and join us and see for yourselves (it is not necessary to be an AustCham member). It’s a very rewarding experience, one which you won’t regret!

Mark shares his concern: “I recall Belinda saying about the challenges of keeping the teaching program going; it would be great a shame if it were to stop as the children get so much from the teaching.

I welcome anyone that wants to come along. We are looking for people with some energy and enthusiasm. We need people who will commit. We’re not expecting everyone every month but a couple of times would be great! One discouraging thing for me is we have limited numbers we can take for a couple of reasons. Firstly, there is limited space in the van, and the second is we only have three classes. If we have too many volunteers per class there is limited opportunity to interact and feel your time was worthwhile. We want you to have fun too!

With that in mind, when you do say you will come – please do show up! Not only are your other volunteers relying on you …. But so are the kids!

AustCham Bronze Corporate Sponsor: CEVA

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October 2013

AustChamThailand Advance

Australianalumni

Knowing Australia: The Challenge for Thai Students

I

n celebration of its 30th anniversary and also as a part of its objective to develop Thai education and society, the ThaiAustralian Technology Service Center (TATSC), founded in 1983 by a group of graduates from Australian Universities, in collaboration with the Australian Education International (AEI), the Australian Trade Commission (AUSTRADE) of the Australian Embassy and the AustralianThai Chamber of Commerce (AustCham Thailand), organised ‘Knowing Australia: The Challenge’, a trivia English quiz for students from 30 select and leading schools in Thailand. The Quiz questions related to Australia’s history, culture, tourism, education, geography and sports.

During the final round, organised at Mahanakorn University of Technology, contestants were asked 15 questions.

Four teams from different schools competed including Suankularb Wittayalai Nonthaburi School, Prasarnmit Secondary Demonstration School, Horwang School and Mahidol Witthayanusorn School. The winners were Nawawan Panburana and Pongpeera Jirakitthirapat, of mattayom six (year six) from Horwang School, Bangkok.

The winners received return air tickets sponsored by Qantas Airways to visit several leading institutions and interesting places in Sydney, Australia for a week. All other expenses in Australia will be covered

by TATSC. The winners and runner-up contestants were also presented with Blackmores products.

Congratulations to everyone who participated and especially to the winners!

How would you have rated? Here is a small sample of the questions asked: How do you think you would have fared with the Australian trivia challenge?

1. Who is Sydney airport named after?

2. What was Tasmania originally called?

3. What does Qantas stand for?

AustChamThailand Advance

October 2013

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Chamber Events

Eastern Seaboard Sundowners Friday 13 September 2013 at Cape Dara Resort Pattaya

Eastern Seaboard Sundowners this month was hosted by AustCham and held in conjunction with the American Chamber Of Commerce In Thailand (AMCHAM), the British Chamber of Commerce Thailand (BCCT), the New Zealand Thai Chamber of Commerce (NZTCC) and the South African-Thai Chamber of Commerce (SATCC). Held at Cape Dara Resort

Pattaya, our venue sponsor, guests enjoyed a lovely evening of networking in the five star resort set amid lush natural surroundings including its own private beach. A special thank you also to our corporate sponsor for the evening, Asian Development Bank, who helped make the evening possible.

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AustChamThailand Advance

AustCham Silver Corporate Sponsor: SINGAPORE AIRLINES

Chamber Events

Bangkok Sundowners Wednesday 4 September 2013 at Royal Orchid Sheraton Hotel and Towers, Bangkok This month’s Sundowners was hosted in the beautifully scenic ‘Sambal Bar’ at Royal Orchid Sheraton. Located on the Chao Phraya River, guests were treated to exquisite river views while engaging in our monthly networking event. Thank you to Royal Orchid, our venue sponsor, for treating guests with their famed Thai hospitality and wonderful catering. A very special thank you also to our corporate sponsor for the evening, Akara Resources, for making the evening possible.

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1) Leigh Scott-Kemmis, DBM (Thailand), AustCham President; Regina Wilson, Royal Orchid Sheraton Hotel and Towers; Belinda Skinner, TopTalentAsia, AustCham Vice President, Australian Ambassador to Thailand HE Mr James Wise; John Falconer, Akara Resources Public Company Limited. 2) Philippe Dacquet, SmartSoftAsia; Shane Burt, CEVA Logistics; Ben Giles, Australian Trade Commission. 3) Liyuan Deckert, Karisma Industry (Asia Pacific); Andrew Gray, CETA; Mark Jayasinghe, BDO Advisory. 4) Gerry C.Healy, Raimon Land; Christian Schulz,Designer Bathware; Simon Bonython, SMC Power Public Company Limited; Aidan Stretch, SMC Power Public Company Limited. 5) Travis Bennett, Juslaws & Consult; Merle Mekelburg, Royal Orchid Sheraton Hotel and Towers; Dan Halloran, AEC South East Asia; Tim Jackson, Australian Embassy; Josh Hyland, AEC South East Asia, AustCham Director. 6) Surasak Chantaroton, Oriental Residence; Kwanchanok Paothongjeen,

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AustChamThailand Advance

Chamber Events

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Ku De Ta (Thailand); Sirisopa Tanbunpherm, Ku De Ta (Thailand); Adrian Chua, Oriental Residence. 7)Peetachai Dejkraisak, Jasberry; ML Laksasubha Kridakon, Baan Laksasubha, AustCham Vice President; Abhasiri Chutikul, Baan Laksasubha; Apilux Huvanandana, Jasberry. 8) Roatchana Sungthong, The CSR Asia Center at AIT; John Falconer, Akara Resources Public Company Limited; Clelia Daniel, The CSR Asia Center at AIT. 9) Nutthacha Gategrut, TopTalentAsia; Belinda Skinner, TopTalentAsia, AustCham Vice President; Krisana Yentragool, TopTalentAsia. 10) Peter Lucas, Park Plaza Bangkok Soi 18; Sophie Israsena Na Ayudhya-Bughin, The Beaumont Partnership; Faun Israsena Na Ayudhya. 11) Kris Snidvongs, Asian Tigers Mobility; David De Vos, Asian Tigers Mobitility; Russell Pang, CEVA Logistics. 12) Michael Grisaffi, United Relocation; Koollanaree Poolpol, Zestcreative; Eddy Bellavoine, Safecoms Network Security Consulting.

AustChamThailand Advance

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AUSTCHAM MEMBERS

Member Offers - Accommodation Phachara Suites Special offer for AustCham member at Phachara Suites five per cent off best available rate Rate includes: • Welcome refreshments including coffee, tea and bottled drinking water in the room • Complimentary unlimited internet access • Use of leisure facilities including tuktuk shuttle Terms and Conditions: • Rates are quoted in Thai Baht • All rates are inclusive of five per cent

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service charge and seven per cent VAT • All rates are payable in local currency • Check-in time is after 14:00 and check-out time is by 12:00 noon

15 per cent off best available room rates at Kuta EcoStay guesthouse in the heart of Kuta Bali; that means A$ 25 per night!

Offer valid until: 31 October 2013 Call: +662 262 9901 Email: sales@phacharasuites.com Website: www.phacharasuites.com

Hotel style accommodation with modern facilities; just 500 metres to the main entrance of famous Kuta beach; forget the car, forget the traffic; restaurants, beach, shopping and night life all within walking distance.

Kuta EcoStay Bali Accommodation in Kuta BALI Indonesia Special Kuta EcoStay offer only to AustCham members

Terms: Offer valid until 15 December 2013 Rooms to be booked direct via email below referring to this AustCham special offer Valid for stays of three nights or more Email: wantoecostay@gmail.com Call: +62 813 3867 0133 Website: www.kutaecostay.com

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 â&#x20AC;&#x153;Best Insurance Company Overall - Asia Pacificâ&#x20AC;? - 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

AUSTCHAM MEMBERS

AustCham Welcomes New Members

Representative: Bryan Smith, President and CEO

Company Profile: Holiday Inn Bangkok Sukhumvit 22 brings to Bangkok 300 stylish new guest rooms and suites in one of the city’s most vibrant and convenient locations. The distinctive 29-storey tower on Sukhumvit Road at Soi 22 stands between Phrom Phong BTS skytrain station and the Asok skytrain/Sukhumvit underground interchange, both only a short walk away. Also within walking distance, public transport or a taxi ride away are the city’s largest shopping centres and foremost cultural points of interest, as well as Bangkok’s main business and entertainment districts. For outdoor relaxation and activities, nearby Benjasiri Park offers a peaceful urban haven right in the middle of Bangkok.

Company Profile: Allianz Ayudhya Assurance Pcl. (AZAY) was established in 1951. With 62 years of experience and a partnership with the German top financial institute, Allianz Group and Bank of Ayudhya Group, the Company has become the largest Thai-German life insurance company with more than 1.4 million policies under the attentive care of 12 service centers and more than 267 agency offices nationwide.

The Royal Bank of Scotland N.V., Bangkok Branch 3-4 Floor, Bangkok City Tower 179/3 South Sathorn Road Bangkok 10120 Thailand Phone: + 662 679 5900 Fax: +662 679 5905 Website: www.rbs.com

Allianz Ayudhya Assurance Public Company Limited 6th Floor Ploenchit Tower 898 Ploenchit Road, Lumpini Pathumwan, Bangkok, 10330 Thailand Phone: +662 305 7000 Fax: +662 305 7999 ext 8127 Website: www.azay.co.th

Products and Services: Life Insurance products

Holiday Inn Bangkok Sukhumvit 22 1 Sukhumvit 22, Klongton Klongtoey, Bangkok, 10110 Thailand Phone: +66 2 683 4888 Fax: +66 2 683 4777 Email: info.bkkhi@ihg.com Website: www.holidayinn.com/bangkok22

Representatives: Piyalak Penkunaporn, Director of Sales & Marketing Supenporn Guntivanich, Sales & Marketing Coordinator

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October 2013

Representatives: Charly Madan,Country Executive and International Banking Ekapoj Tunsarawiphut, Vice President Network Client Coverage Company Profile: The RBS Group is a large international banking and financial services company serving over 30 million customers across the United Kingdom, Europe, the Middle East, the Americas and Asia.

In Thailand, RBS operates through its Markets and International Banking (M&IB) business, which provides industry leading products and services to local and multinational corporates, financial institutions, government and public sector clients.

Committed to serving clients’ needs internationally, RBS’s M&IB business has on-the-ground operations in 38 countries globally including 11 markets across Asia Pacific.

RBS was established in Thailand since 1993 and delivers to clients fixed income, foreign exchange, debt financing, transaction services and risk management solutions as well as its Markets business on currencies, rates, credits and e-commerce.

RBS remains committed on long-term client relationships and in delivering excellent in product execution underpinned by global insight, local knowledge and a prudent and sustainable banking model to its clients in Thailand.

Products and Services: - International debt financing - Risk management - Fixed income, FX - Investor Products - Transaction services - Cash Management - Trade Services - Supply Chain Financing

Hard Rock Cafe Bangkok 424/1, 424/3-6 Siam Square Soi 11 Phayathai Road, Pathumwan Pathumwan, Bangkok,10330 Thailand Phone: +662 658 4090-3 Fax: +662 254 0832 Email: banthita.s@hardrockcafe-bangkok.com Website: www.hardrock.com

Representatives: Nualprang Varongkriengkrai Assistant Events & Marketing Manager Pin Aviruttapong Public Relations and Marketing Company Profile: Hard Rock Cafe Bangkok is ideally located in the heart of Siam Square, near great shopping and offering a convenient destination for both local fans and travellers.

“One night in Bangkok, and the world’s your oyster!” As 80’s band Murray Head sang, Bangkok delivers a rockin’ great time

AustChamThailand Advance

AUSTCHAM MEMBERS

like no other. If you like the nightlife and like to boogie-oogie on the disco dance floor, have we got a place for you! The Hard Rock Cafe Bangkok—where good times are only as far away as your next electric slide step.

Capital of the big Kingdom of Thailand and capital of even bigger fun, you’ll be larger than Buddha with happiness when gazing upon our walls of hallowed memorabilia with a drink or two in hand. Everybody have fun tonight, everybody Wang Chung! Party on, Bangkok! Make the world YOUR oyster at the Hard Rock Cafe Bangkok.

Products and Services: Hard Rock Cafe Bangkok creates kickass menus for even the most discerning tastes! We impress rock stars with incredible backstage culinary delights.

Menus offer out-of-this world hamburgers, veggie burgers and famous BBQ ribs, giant sandwiches including the popular sandwich, grilled fajitas, homemade nachos and a variety of mouthwatering desserts.

Hard Rock Cafe Bangkok is more than just a cafe. From an intimate unplugged meeting to a full-blown production, Hard Rock’s unique and comprehensive resources allow you to execute corporate meetings and events, convention receptions, incentive rewards, Networking Receptions, Milestone Celebrations, Meet and Greets, Birthdays or even a rockin’ wedding.

Hard Rock is renowned for its authentic collection of collectible and fashionable merchandise. While our logo t-shirts are the best selling t-shirts of all time, we have a broad scope of apparel, glassware, drumsticks and pins that can be co-branded. With meetings and events, there’s no better way to define the moment and bring people together for a common cause.

It’s time to give your group the VIP experience!

Mr Christopher Larkin, CLC Asia L26 Capital Tower, All Seasons Place Wireless Road, Lumpini Bangkok, 10330 Thailand Phone: +6681 866 1002 Email: ct_larkin@hotmail.com Individual Profile: Chris is the founder of CLC Asia. CLC Asia provides Government Relations services as well as political and market intelligence.

AustChamThailand Advance

He has over 13 years’ experience working for both government and private sector clients in Asia, Australia and the UK. His previous experience includes working as a privatization and regulatory advisor for the Thai Ministry of Finance.

After beginning his career in Australia, Chris moved to Thailand where he became an internal advisor to the Thai government on privatisation and economic regulatory policy, working on the privatisations of PTT and Airports of Thailand, as well as working with a variety of State Owned Enterprises.

Since moving to the private sector, Chris has advised a number of private sector clients on M&A, Investor Relations market entry, policy and political risk issues.

Chris has an Honours degree in Economics and a Masters of Public Policy and Management from Monash University, Australia, as well as having completed a Minerals Economics course from the University of Melbourne. He is based in Bangkok, the geographical heart of emerging Asia.

Chris is fluent in Thai and English and has dual Australian and Thai citizenship. He is married with two children.

Australian Link: Australian Nationality

• Proven success in developing sales plans and account strategies • Adept at developing client relationships and stakeholder management • Building, leading and managing high performance teams • Extensive experience in planning and managing large and complex proposals and Tender responses • Demonstrated abilities in turning poor performing business groups around • Coaching and mentoring staff - providing guidance, direction and support Change of Representative • Mr William Chea, Partner – Indirect Tax is a new representative of Ernst & Young Corporate Services Limited • Mr Chris Van der Merwe is a new representative of Futuris Automotive (Thailand) Co., Ltd • Mr Sam McMahon, Vice President Commercial & Finance Thailand is a new representative of NS BlueScope (Thailand) Limited • Mr Somkiat Pintatham, President is a new representative of NS BlueScope (Thailand) Limited Change of Company Name/Address

Mr Peter Him, Conservenergy Pty Ltd 665 Lygon Street, Carlton North Victoria, Australia 3054 Phone: +61 448 533 282 Email: peter.r.him@gmail.com Individual Profile: Peter has over 20 years’ experience in sales and marketing of technical products and professional services together with strategic stakeholder management experience in complex and cross cultural organisational environments.

• Caswell & Associates Pty Ltd have changed their company name to Caswell/MMT Nominees Pty Ltd Suite 5, 578-580 Railway Parade, Hurstville, New South Wales 2220 Australia Phone: +612 9930 6100 Fax: +612 9580 6277 • Limcharoen Hughes & Glanville Phuket Co., Ltd have changed their company name to Limcharoen (Bangkok) Co., Ltd Change of Company Address

Extensive business development experience across sectors such as: - Mining - Energy and Utilities - Manufacturing - Telecommunications - Government - Consulting - ICT

• Jarrett Lloyd Company Limited 800 Unit A, Sukhumvit 71 Road, Klongton-Nua Sub-District, Wattana District, Bangkok 10110 Phone: +66 2 392 4187

Core competencies include: • Highly developed commercial acumen and negotiation skills

October 2013

33

From the Chamber Office

Message from the Executive Director

A

constant refrain during my 15 plus years as a public servant was the word ‘taxpayer’. As an employee the institution that is the Australian Government, that was who I ultimately worked for. Taxpayer’s collective interests and collective values (as represented by the Government of the day) were the foundation and purpose for all of the work that I did.

As executive director of the Chamber the mantra changed. It became ‘members’.

Of course there is a crucial difference between taxpayers and members. Failure to pay tax can land you in jail. AustCham membership is, however, a choice. People only join the Chamber – and therefore fund it – if they see a value in what we are doing. This is a strength of the Chamber. And it motivates us to deliver.

So we must be doing something right because membership this year is at a record high. Every year we turn over a small proportion of our membership, typically because of changeover in management personnel. It means that we must recruit new members to sustain our membership and revenue base.

At the end of the previous membership year we had 419 members. We presently have 404. With six months left to go and a signup rate of about six per month we are looking good to shatter AustCham’s membership record. It would be nice to hit 450!

The approach AustCham takes to deliver for members is largely the same as the approach used to represent taxpayers. At the macro level, AustCham is an institution that represents the collective interests, and collective values, of our members – as set down by the elected Board of Directors. We also deliver specific products and services for the different market segments of our diverse membership. That’s why we have our different brands. Sundowners, for example, for cocktail-style business networking; the Australian Business Forum (ABF) for learning about Australia-Thai business; AustralianAlumni as an important bridge into the Thai community.

The fact that the Chamber membership is broad and diverse is a substantial strength for AustCham. It represents some of our core

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October 2013

values – Australian values of egalitarianism and multi-culturalism. We are foremost Australian-Thai, but we encourage members from all areas of business and the world.

In the AustCham office we are always looking for ways to better serve members. An area where I think we can do more is business-to-business. Our broad and diverse membership means there is considerable potential for promoting goods and services. We have a few platforms already in place to enable that, such as Member News and Member Offers section of the website home page.

I’d like to give those a boost. I’d also like to consider a new event format that is unashamedly B2B. We would need to carefully differentiate a B2B format from our knowledge events (e.g. Boardroom Briefs, Luncheon Addresses etc.). But I think that can be done.

Calendar of Events Wednesday 2 October Bangkok Sundowners

18:00-21:00 Venue: Swissotel Le Concorde, Bangkok Corporate Sponsor: The Beaumont Foundation Friday 18 October 5th Women with a Mission Annual Charity Golf Tournament

11:00 Location: The Phoenix Golf Club Wednesday 23 October

AustCham Office closed in honour of Chulalongkorn Day

Great I hear you say. Do it!

The challenge, as always, is resources.

Most members see the Chamber through the window of the activity they are most interested. Sundowners, for example.

Sometimes it’s not apparent that in fact there are many windows into AustCham.

When you stand back and look through them all, it becomes apparent that we are actually very busy. We are operating at full capacity. We’ve already delivered some 47 events this year. And we do a lot more than just events.

Thank you to our September sponsors

You can help us increase our resources and thus our ability to deliver value back to you. We’ve just re-introduced our member-gets-member reward scheme.

We will credit Baht 2,000 to your AustCham account if you refer a new member. Help us help you by promoting AustCham membership!

Knowing Australia: The Challenge to Thai students

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

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Sir Charles Kingsford Smith Van Dieman’s Land Queensland and Northern Territory Aerial Services

AustChamThailand Advance