BCCT Link Magazine - Issue 5 2014

Magazine of the British Chamber of Commerce Thailand Issue 5 2014

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Thailand BCCT October 2014

www.pkf.com 28/06/2011 11:19

Tesco Lotus launches first “No Bag” store in Bangkok and “iHold” campaign Target to reduce plastic bags by 20 million

Tesco Lotus, Thailand’s leading green retailer, continues its campaign to reduce plastic bags with the first “No Bag” store in Bangkok and its “iHold” campaign to “hold it” rather than put it in a plastic bag. The target is to reduce plastic bag usage by 20 million bags.

Each Thai person currently produces 1.15 kg of waste per day and Thailand has to deal with 26 million tons of waste. This huge quantity of waste impacts the environment and public health. Thais averagely use eight plastic bags per day. If every one of 65 million Thais reduced plastic bag usage by one bag per day, we could reduce 20 billion plastic bags in a year, which would also help reduce waste and help the environment.

Tesco Lotus Head of Public Affairs Charkrit Direkwattanachai said, “Tesco Lotus has a continuing commitment to reduce the amount of plastic bags in the system, to help mitigate global warming.

Last year we launched “Proud not to use a bag” campaign which was quite successful in instilling the idea of “No Bag” shopping among Thai people. We were able to reduce plastic bags by 14 million bags in 2013, and our “Proud not to use a bag” campaign was awarded by the Marketing Association of Thailand for building awareness of the need to reduce plastic bags.

“This year, our target is to reduce plastic bag usage by 20 million bags. We will have a continuous stream of activities to encourage our customers to shop without plastic bags. Part of this is the first “No Bag” store in Bangkok at Tesco Lotus Express Sukhapiban 1. We are calling for customers’ cooperation in not using plastic bags at this store, after the ‘no bag store’ concept has proved successful in Phuket and Koh Samui.”

Tesco Lotus is also launching the “iHold” campaign through social media to stimulate the idea of “holding it” instead of putting it in a plastic bag. The idea came from “handheld” mobile phones which are common among Thais.

On top of this, Tesco Lotus is offering “Green Points” to thank customers for shopping without a plastic bag.

Contents BCCT

Board of Directors 2014 Chairman Simon Matthews ManpowerGroup Thailand T: 02 634 7273 matthews@manpower.th.com

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Vice Chairman & Treasurer John Sim PKF Tax and Consulting Services (Thailand) Ltd. T: 02 679-5100 john.sim@pkfthailand.asia Vice Chairmen Viriya (Boyd) Chongphaisal GlaxoSmithKline T: 02 659 3000 viriya.x.chongphaisal@gsk.com Simon Landy Colliers International Thailand T: 02 656 7000 simon.landy@colliers.com Chris Thatcher Anglo-Thai Legal Company Ltd. T: 081 803 7377 christhatcher1@gmail.com Directors: David Cumming Onyx Hospitality Group (Amari Orchid Pattaya) T: 02 255 3767 david.cumming@onyx-hospitality.com Michael Farley Harrow International School Bangkok T: 02 503 7222 m_farley@harrowschool.ac.th Stephen Frost Bangkok International Associates T: 02 231 6201/6455 sfrost@bia.co.th Charly Madan The Royal Bank of Scotland N.V. T: 02 679 5900 charly.madan@rbs.com Andrew McBean Grant Thornton T: 02 205 8222 andrew.mcbean@th.gt.com Siew Meng Tan HSBC T: 02 614 4040 siewmengtan@hsbc.com Rituraj Mohan Boots Retail (Thailand) T: 02 694 5900 Ritu.Mohan@bootsri.com Thana Thiramanus Property Care Services (Thailand) T: 02 741-8800 thana@pcs.co.th

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Rising tourism revenues boost region’s economies Managing travel risks TAT bids to stage iconic Tour de France race ESCAP Asia Pacific Trade and Investment Report 2014

Bank remains cautious about branch opening in Yangon Lord Puttnam keeps Myanmar in focus ASEAN Business Summit set for Nay Pyi Taw Experts stay upbeat on Thailand’s residential property sector The Link

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Contents

The Link is published by the British Chamber of Commerce Thailand.

Advertising enquiries: Greg Watkins Email: greg@bccthai.com Editor: Dale Lawrence Email: dalelawrence2008@gmail.com Front cover design: GSBI Production: Scand-Media Corp., Ltd The views expressed by individual authors are not necessarily those of the British Chamber of Commerce Thailand or of the publisher. Reproduction in whole or in part without written permission from the British Chamber of Commerce Thailand is strictly prohibited.

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Every Edition

7 Chairman’s Message

9 Executive Director’s Message British Chamber of Commerce Thailand 7th Floor, 208 Wireless Road Bangkok 10330, Thailand Tel: 02-651 5350/3 Fax: 02-651 5354 Website: www.bccthai.com Email: greg@bccthai.com Greg Watkins, Executive Director

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Member News

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By the Numbers

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British Council: UK experts endorse university engagement

Chamber events

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Comings and Goings

Helping the Needy: SET students give back to society

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Final Word The Link

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Chairman’s Message

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e are fast coming to the end of 2014 but we still have a full schedule of events in the busy BCCT calendar. This follows the joint chambers event in early October when Khun Arkhom Termpittayapaisith, Secretary General of National Economic and Social Development Board (NESDB), presented the Board’s new five-year plan (Plan 11).

Simon Matthews

Sustaining Partners

On 30th October we have our first Halloween night at the British Club and on 26th November we welcome Deputy Prime Minister MR Pridiyathorn Devakula as keynote speaker for the Chamber’s Annual Lecture and Dinner kindly sponsored by Standard Chartered Bank.

Advocacy is still high on our agenda and we have sent our ‘wish list’ to the Prime Minister. On Monday 10th November we have a meeting scheduled with Khun Chutima Bunyapraphasara, Permanent Secretary of the Ministry of Commerce, to follow up on key issues relating to the Foreign Business Act such as the broad liberalisation of categories, maintaining the definition of ‘alien’ in terms of company control, and simplifying the process of securing a special licence.

We have not had a membership survey for three years and at the board meeting in September it was agreed to undertake one this year. The two main objectives of the survey are: 1. To secure specific feedback from members on their current and future needs regarding BCCT services and activities in order to help prioritise potential areas for future investment 2. To gauge members’ satisfaction levels regarding specific services and activities It is intended that the survey will be largely based on telephone interviews conducted by a market research company with members randomly selected by them. Please support this survey if you are contacted by the appointed market research company as your input is important to us.

On a final note, I would like to take this opportunity to thank Graham Balchin of Salamander Energy for all his support to the BCCT. Graham recently tendered his resignation as a board director.

I look forward to meeting you at upcoming chamber events.

The Link

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We “sweat” the fine print . . so you don’t have to

Executive Director’s Message

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t is my privilege to write this message in lieu of Executive Director, Greg Watkins. It gives me the opportunity to explain more about the “project” and what we have achieved to date. Hopefully this will remove any lingering mystery!

Barry Nicholson

Annual Airline Partners

The “project” has evolved over the past 12 months and we now operate under the new title of ‘International UK business network’ - as do the other 40 countries that are participating in this UK government sponsored scheme. Our primary objective is to help and support UK companies that are seeking to trade with Thailand – exports, investment and some sourcing – through the provision of market advice and research. We are largely funded by UK Trade & Investment (UKTI) with other revenue mostly derived from the provision of research and other business services to UK companies. Unlike the main operations of the Chamber, our primary audience is based in the UK. We also work closely with the British Chambers of Commerce and their 52 accredited Chambers (whose corporate members have five million employees).

Speaking of accreditation, BCCT is assembling all the material and documentary evidence that will provide us with formal accreditation by March 2015. This will provide further reassurance to companies that we operate efficiently and effectively and can be expected to provide a high quality service.

Supporting Partners

Of the 41 markets enrolled in the international UK business network BCCT is one of only seven that UKTI has entrusted to carry out business services on its behalf.

This was a major challenge but the testimonials to date provide concrete evidence that our work is hugely appreciated and has already led to new business being won.

Since April we have provided information, assistance and advice to well over 400 UK companies, meeting our annual target with nearly six months to spare. As a result of our activities, BCCT’s reputation has been considerably enhanced in the UK (both within government and the private sector), in Thailand, and overseas via interactions with many other British Chambers. But what of the benefits have accrued to BCCT members?

• The British Business Centre within the BCCT, which many of you will have visited, is a result of this initiative and is now the home to many Chamber groups.

We have vastly improved our A/V and ICT facilities, enabling us to run everything from webinars and seminars to meetings and training sessions. Do, please contact us if you are interested in hiring this excellent venue • The introduction of new UK companies to Thailand provides opportunities for members to provide goods and services to new customers • Our work has significantly contributed towards the rising number of BCCT overseas members • BCCT’s greater linkage back to the UK has resulted in a more direct involvement in Thai-UK commercial relations and a corresponding increase in influencing decisions that impact members Hopefully readers will agree that joining the ‘International UK business network’ has provided BCCT and its members with an additional range of substantial benefits.

It’s not yet year-end but I will use this opportunity to thank our stakeholders. As it’s been a great year to date you will have to forgive the Oscar-style hyperbole!

UKTI, based at the British Embassy in Bangkok, has been immensely supportive and partners BCCT in a growing range of activities. (Keep an eye open for some major events in early 2015!)

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100% Yellow

11% Cyan

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The BCCT Board has been instrumental in our success to date through the provision of much needed advice and participation in events, webinars and other promotional activities. Team members Ching, Laddawan, Pattra and Siriluck have made hugely impressive contributions as, indeed has Greg Watkins who had the vision to expand the BCCT operation in the first place.

The Link

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cover story

Rising tourism revenues boost region’s economies

By Dr Sarawut Niamloi

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sia Pacific tourism continues to outperform other regions according to the latest report from the United Nations World Tourism Organization.

The UNWTO’s ‘Tourism Highlights 2014 Edition’ reports that international tourist arrivals grew by five percent last year to a record 1,087 million arrivals with the Asia Pacific region recording six percent growth in 2013 and similar growth to date in 2014.

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Although the global economy continues towards a slow recovery, there were an additional 52 million international tourists last year. The report notes that ‘international tourism receipts in destinations around the world grew five percent in real terms (taking into account exchange rate fluctuations and inflation) to reach US$ 1,159 billion. Growth in receipts mirrored the growth in international arrivals - confirming the strong correlation between these two key indicators of international tourism’.

When measured by tourism earnings, the Asia Pacific region enjoyed some eight percent growth in 2013 at US$ 359 billion.

‘As in 2012 south east Asia was again the fastest growing sub-region with an increase of 11 percent in international tourist arrivals on the back of buoyant intra-regional demand.

Thailand reported strong growth (+19%), welcoming 27 million tourists, four million more than in 2012’, the report adds.

The report also shows that Thailand has moved into the list of the world’s top 10 tourism destinations, in terms of both visitor numbers and visitor expenditure, with record-breaking arrivals in 2013.

‘Thailand moved up two positions in the ranking by international receipts to seventh while it entered the top 10 by arrivals in 10th position, in a bumper 2013 when international arrivals were up by 19 percent to 27 million and receipts by 23 percent to 42 billion US dollars’.

It is the first time that Thailand entered the top 10 list in terms of arrivals. Thailand was ranked eleventh in 2012 when tourist numbers totalled 22.4 million. UNWTO referred to

this climb of five positions as an ‘amazing development’.

Thailand’s Board Of Investment, welcoming the UNWTO report, states that ‘this year began with a slow start for tourism, for obvious reasons, and from January to July 2014 Thailand saw a 10 percent year on year drop with 13.6 million foreign arrivals’.

Malaysia is Thailand’s largest tourist market, followed by China and Russia.

The latest prediction from the Tourism Authority of Thailand puts international arrivals for 2014 at some 25.5 million.

Europe also shows a positive trend as Thailand continues marketing efforts to encourage tourists, especially from

France, Italy, and Spain. A recent news report shows that confidence remains strong among French tourists in particular, as a report released

by French travel website Le Quotidien du Tourisme shows that Thailand is the most searched for destination in online search engines.

The TAT projects visitor numbers from France to exceed 636,400 by the end of 2014. In a move to boost tourism the Immigration Bureau has allowed citizens of 48 countries and Hong Kong Special Administrative Region to get a 30-day extension of their stay in Thailand after the expiry of their normal period of stay. The 49 tourist markets generate about half of Thailand’s total visitor arrivals.

Air France presses ahead with low cost carrier plans A

ir France-KLM is pressing ahead with expansion of its low cost brand in France according to Chairman and CEO Alexandre de Juniac (pictured right).

The strike by pilots working at airline ended in late September spite continued deadlock with carrier over the development of firm’s low-cost subsidiary.

the dethe the

Alexandre de Juniac is now waiting for agreement from the pilots to the company’s plans to develop Transavia.

“To remain in the race in Europe, we have no alternative than to rapidly expand Transavia. We are now taking every measure to explain and accelerate its growth out of France. The Air France-KLM Group is reaffirming its aim of reaching a fleet of more than 100 Transavia aircraft by 2017,” he said.

An airline statement added that ‘the expansion of Transavia in France is

vital for Air France, notably in order to defend the Group’s position at Orly, as highlighted by the experts’ report published in July 2014 and supported by the SNPL ( a trades union representing pilots). It is now urgent to implement this plan’.

The pilot unions’ have been demanding that Air France pilots employed under Air France working terms and conditions are used on the Transavia network.

Air France is seeking to enhance the Transavia fleet, creating some one thousand new jobs over the next five years. The project will, as expected, be primarily open to Air France pilots on a voluntary basis.

“We should move quickly to avoid the risk of leaving the room for our competitors, especially at Orly (airport), where slots may become available,” Mr de Juniac added.

The Link

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Qatar backing for top Saudi soccer team Q

atar Airways has announced sponsorship of Al-Ahli Football Club, one of Saudi Arabia’s most successful professional teams. The deal was confirmed at a ceremony with Prince Fahd bin Khaled bin Abdullah, Chairman of Al-Ahli F.C., and Akbar Al Baker, Group CEO of Qatar Airways.

Prince Fahd said, “Al Ahli Football Club is renowned for its pioneering role in the promotion of the sport in Saudi Arabia. Our partnership with Qatar Airways will support us in our continued journey to be the best in the Kingdom and beyond.”

Akbar Al Baker said, “Qatar Airways has developed strong ties with Saudi Arabia, operating flights to seven key destinations across the Kingdom.”

Qatar is set to launch a new Saudi Arabian based airline Al Maha Airways in 2015. Qatar Airways currently operates 86 flights per week to sev-

Prince Fahd bin Khaled bin Abdullah, Chairman of Al-Ahli F.C., and Akbar Al Baker, Group CEO of Qatar Airways.

en destinations in Saudi Arabia. The airline was awarded three accolades at Skytrax Awards 2014: World’s Best Business Class, Best Middle East Airline and Best Business Class Lounge.

It has also been named Airline of the

Year by Skytrax, Air Transport News, and Business Aviation and won Best Business Class and Best Airline for International Travel at the recent Business Travel Awards.

New route for Thai Air Asia T hai AirAsia has added a new domestic destination to its network with the introduction of twice-daily flights Bangkok Don Mueang (DMK) and Sakon Nakhon (SNO). And the new route has taken off with consumers as Commercial Director Santisuk Klongchaiya explained. “Until the end of the year, we have advanced bookings for the Don Mueang-Sakon Nakhon service at an average load factor of 85 percent per flight. This is a very strong sign that the tourism sector is returning to vibrancy.”

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New airline partnerships for Etihad Airways A

bu Dhabi-based Etihad Airways has unveiled a mini airline alliance. Etihad Airways Partners is a new brand that initially comprises six airlines: AirBerlin, Air Serbia, Air Seychelles, Jet Airways, Darwin Airline and Etihad Airways.

The objective is to offer customers more choice through improved networks, schedules and enhanced frequent flyer benefits.

Any airline may become an Etihad Airways Partners member, irrespective of whether or not it is part of an existing alliance. Etihad has, traditionally, resisted the temptation to join one of the three global airline alliances: Star Alliance, Oneworld or Skyteam.

Etihad CEO James Hogan said frequent flyer benefits will include standardised mileage and tier benefits across all partners. “Frequent flyers will benefit as it will remove the complexity and confusion that exists within the global alliances. We’re aiming to deliver a consistent experience for frequent flyers when they travel, as well as a consistent framework for earning and using their miles.”

Hogan added that the aim of the new grouping is to allow for strong commercial partnerships and shared values between member airlines.

From left to right: Maurizio Merlo, CEO Darwin Airline; Wolfgang Prock-Schauer, CEO airberlin, James Hogan, President and CEO Etihad Airways; Cramer Ball, CEO Jet Airways; Dane Kondi, CEO Air Serbia and Manoj Papa, CEO Air Seychelles at the launching of the Etihad Airways Partnership.

ation. It will be displayed on aircraft and on branded materials by a group of airlines working together to connect travellers around the world, and increasingly to harmonise standards in the air and on the ground,” he said.

Seychelles success Air Seychelles and equity alliance partner Etihad Airways have been celebrating the success of their partnership.

Guests at a reception in Mahe includ-

ed Danny Faure, Vice President of the Republic of Seychelles; Minister for Transport and Chairman of Air Seychelles Jöel Morgan, and Minister for Tourism and Culture Alain St. Ange.

James Hogan, Etihad Airways’ CEO, said: “Air Seychelles is on track for a very exciting future. As its strategic equity partner, Etihad Airways is very proud to be part of that journey as Air Seychelles continues to make a significant contribution to the Seychellois community and become the leading airline in the region.”

“We are broadening our business model to articulate and define a partner proposition for like-minded airlines which will result in synergies and efficiencies for participating airlines on the one side, and enhanced network choice, service and frequent flyer benefits for the consumer on the other.

“The Etihad Airways Partners logo is a seal of excellence and global cooper-

The Link

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Walsh calls for decision on airport expansion W

illie Walsh, CEO of chief executive of International Airlines Group - owner of British Airways – claims that UK politicians lack the character required to implement the muchneeded third runway at London Heathrow.

Speaking on board the carrier’s new A380 service to Washington DC he said that ‘historically politicians have not been brave enough and I don’t think they will be brave enough going forward. You need a big shift in the politics of the country,” he said.

More Dreamliners are scheduled to join the British Airways fleet.

“You won’t find many airlines that say ‘God I’d love to be able to fly to Gatwick’. That’s why this isn’t a business issue, an economic argument. It’s a political argument and the politics of expanding Heathrow are significantly more difficult than the politics of expanding Gatwick,” he added.

Mr Walsh continues to oppose any proposal to create a second runway at London Gatwick, stating that the case for expanding the capital’s second largest airport is significantly weaker.

“The airport does have capacity. You could make a case to build a second runway. The case is significantly weaker – and I don’t care what scale you want to use – than the case you can make to expand Heathrow.” He

Willie Walsh

added that Gatwick did not have the same international attraction.

British Airways has taken delivery of seven Airbus A380 aircraft.

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Recommendations on airport expansion will be presented to the UK after the General Election in 2015.

BA to resume KL services British Airways plans a return to Kuala Lumpur in May 2015 and is looking at other routes as more of its Boeing 787 Dreamliners are delivered. But Willie Walsh admitted that its expansion in China had been slow with results on the latest Chinese route to Chengdu not as good as had been hoped.

“In terms of passenger demand, we are struggling as a result of Chinese visas. That’s a perfect example of where UK government policy is working against the UK interests of developing more business with China,” he said.

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The Link

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Tourists demanding unplugged travel

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onely Planet and the International Air Transport Association (IATA) have joined forces to celebrate the 100th anniversary of commercial air travel by revealing Lonely Planet’s top 10 predictions for the future of world travel.

According to Lonely Planet’s team of travel experts, holiday makers are set to demand more ‘unplugged travel’ and secret escapes as the fast pace of modern life continues to grow.

Top of Lonely Planet’s list of predictions is that travel will soon become fully integrated into our lives as opposed to a special event. Data from the Air Transport Action Group (ATAG) forecasts that 6.6 billion passengers will fly worldwide by

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2032, growing an average of 4.4 percent annually from 2014.

The increasing volume of commercial flights has brought a large shift in travellers’ mind-sets and Lonely Planet argues the concept of travel as a rare treat is disappearing, replaced by travel as a lifestyle choice.

Lonely Planet also predicts that green travel is also on the rise as a new generation of travellers builds sustainability into every step of their journeys.

Seventy percent of travellers expect companies to demonstrate commitment to preserving the natural environment prompting a boom in ecotourism and volunteering abroad.

The aviation industry in particular has set its own objectives for carbon neutral growth and cutting CO2 emissions in half.

Sourcing online reviews remains second-nature for travellers, but hunger for secret coves and local secrets is emboldening them to embrace faceto-face or local recommendations.

Lonely Planet experts suggest online reviews will remain part of a traveller’s toolkit, but a local recommendation has never been more highly prized.

The pressures of modern life are also recognised and Lonely Planet suggests we can expect an increase in ‘unplugged travel’. With no emails

or mobile signal, guests can immerse themselves in their destination and truly forget about work and everyday life.

events will be sent directly to travellers’ smart phones or tablets during a flight – creating an ever more tailored travelling experience.

opportunity to travel and particularly travel by air as the world becomes a smaller and more accessible place than ever before.

Lonely Planet’s predictions also bode well for economy fliers as increased competition on well-trodden flight paths is encouraging airlines to improve the experience for everyone.

Airports are also due for an overhaul as innovative departure lounges are a key part of any future travel landscape. With airport spas, art galleries, green areas and even cinemas now a common site at most departure lounges, Lonely Planet suggests we can expect bigger and bolder leisure activities.

“It is amazing to see how far we have come over the past 100 years and even more so to think of what we can expect from the next century. Air travel connects us to the world and reminds us of the importance of being there, whether it is the places or the people we love.”

As true comparison shopping for air travel increases choice and competition, the future looks bright for economy flights - perhaps lie-flat seats, high quality food and more luxurious touches are not too far away.

Technology is also going to play an increasingly significant role, with more airlines offering paperless travel and integrated smartphones key to planning and tracking your travels.

Soon technology will mean suggested tweaks to travellers’ itineraries based on weather conditions and local

Other future travel predictions include the rise of experience hotels and event travel as travellers’ explore the globe in search of memorial experiences and once in a lifetime sights.

Tony Tyler, IATA’s Director General and CEO, said, “One hundred years after the first passenger flew on a scheduled flight the predictions from Lonely Planet clearly show that millions more people are set to enjoy the

Tom Hall, Lonely Planet’s Editorial Director, said, “Travel has changed dramatically since the first commercial flight 100 years ago. The next 100 years offer endless possibilities.

At Lonely Plant we’re constantly monitoring trends and developments in travel as we seek to find emerging destinations, hot topics and what is really getting travellers excited. This selection highlights some of the big trends that we predict for the next few years.”

The future of travel – Lonely Planet’s top 10 predictions 1. Travel as life not special event – Travel is becoming an integrated part of everyday life 2. International festival fever – With flights faster and cheaper than ever before, travellers are taking advantage of a global calendar of events 3. Flight of fantasy – Increased competition on travel routes is encouraging airlines to improve experience for economy fliers 4. The evolution of airports – The success of airport spas, art galleries and green areas is sure to bring bigger and bolder leisure activities within the airport experience 5. The rise of experience hotels – the increase in demand for hotels that offer something extra 6. Smarter sustainable travel – Green travel has hit the big time as a new generation of

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travellers builds sustainability into every step of their journeys Travel planning in your palm – As more airlines offer paperless travel, a smartphone can be the key to planning and tracking your travel, all tailored for your experience The rise of unplugged travel – True escapes are becoming highly valued, and remote hotels are starting to make a feature of their lack of internet and phone signal Return to local knowledge – Travellers’ hunger for secret coves and local trattorias is emboldening them to rely once more on faceto-face recommendations Virtual travel – Travellers can now plan their travels from the comfort of their laptop, exploring on Google Streetview before seeing it for real

The Link

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Managing travel risks

By Dr Sarawut Niamloi

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hen you are travelling, you want your trip to be as carefree and enjoyable as possible, and a big part of that is preventing illness or injury during the trip.

Depending on your destination, some environments are substantially different from where you live and can expose you to health risks.

International travel presents increased health risks, especially travelling in developing countries. It is important that you learn the particular hazards of the area to which you are travelling and that you take the necessary precautions to protect your health.

Before you travel overseas there are four basic things you should do: • Prepare or obtain a complete travel itinerary. This should include the names of the cities you will be visiting, how long you will be staying in each city, and the types of activities you have planned. Some activities may vary the level of health risks associated with a location • Get an up-to-date record of your immunizations. In addition to getting immunizations to protect yourself against disease, some countries do have immunization entry requirements. These measures are designed to protect their own citizens from imported diseases • At least six weeks before your departure date, call and make an appointment with your doctor if you need any vaccinations. You should also consult your physician if you have any existing medical conditions that may require special precautions and/or if you are taking prescription medica-

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tions that may need to be refilled • Visit the International SOS member’s website: www.internationalsos.com and the Center for Disease Control and Prevention’s Travel Information site: www.cdc.com for helpful and up-to-date information on international travel. Of particular interest are the preventive health recommendations based on your itinerary (Geographic Health Recommendations) Avoiding Deep Vein Thrombosis (DVT) The body has mechanisms that keep blood from clotting inappropriately. It is normal for blood clotting to occur when an artery or vein has ruptured or been pierced.

However, there are instances where the blood begins to clot outside those conditions.

Although this can occur in any artery or vein it is far more common in veins. It is most common in the veins of the legs, principally the calf.

Any situation that diminishes the rate of blood flow or causes an inflammation of the vein will increase the likelihood of a clot occurring.

Dehydration, crossed legs and cigarette smoking are three factors that increase the likelihood of clots.

If a deep vein is completely blocked the blood cannot travel back to the heart and therefore accumulates in the leg. This can lead to massive swelling and pain. What can be catastrophic is if a piece of clot breaks off and works its way to the lung. This is called a pulmonary embolism and can be rapidly fatal.

In a recent study, ten percent of a group of passengers following an

eight-hour flight had ultrasound evidence of small blood clots forming in their deep veins but none had any symptoms.

The cramped conditions in which most of us fly almost certainly make the situation worse but those travelling in Business Class or First Class are not immune.

If you have a pre-existing problem with your veins, such as varicose veins or phlebitis, wearing elastic stockings that compress the vein circumferentially at least to midthigh are an excellent idea. Getting up to stretch and walk about regularly is beneficial. Keeping yourself well hydrated also helps.

The Air Health Organisation recommends the following tips to reduce the risk of deep vein thrombosis (DVT): • Don’t wear anything that could impede the circulation (such as a knee brace) • Risk increases with time in the air. A flight of less than two hours may be free of risk unless it follows another flight of two or more hours or if you spent two hours in your seat waiting to take off • Frequent leg flexing as described below, is the best preventive measure. You need to activate the muscles enough to push the blood through the veins. Do it firmly and deliberately but not strenuously. How often? The UK Department of Health recommends 30-minute intervals and more frequently than this if you have any of the risk factors listed below • Extend your legs straight out in front of you and flex your ankles,

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pulling up and spreading your toes, then pushing down and curling the toes. If your shoes limit toe movement, just make the effort and don’t worry, or remove the shoes If there isn’t room to extend your legs, start with your feet flat on the floor and push down and curl your toes while lifting your heels from the floor. Then, with your heels back on the floor, lift and spread your toes. Repeat this heel - toe cycle ten times Exercise your thigh muscles by sitting with your feet flat on the floor and slide your feet forward a few inches, then slide them back and repeat Sleeping is dangerous because it means you are inactive for too long with your legs in a dependent position thereby allowing blood to clot A thirty-minute nap would probably be OK, perhaps using an alarm to waken yourself. You could sleep longer if there is enough room for you to lie with your legs up on the same level as your upper body.

Flex thoroughly when you are awake Avoid sitting with your legs

crossed for more than a few minutes at a time • Massaging the leg muscles (as some experts recommend) could be dangerous if a clot has formed (a clot may have formed without your knowing about it) • Some experts recommend drinking extra non-alcoholic caffeinefree beverages before and during your flight. Others say this makes no difference If you are at heightened risk for blood clots, talk to your doctor about possibly taking anticoagulants and/or wearing medical compression stockings. Personal or family history of blood clots is an important risk factor.

Others are cancer, women who are pregnant or taking oestrogen (including birth control pills), recent injury (including sprain or bruise, especially of the lower limbs or torso), recent surgery, obesity, diabetes, heart disease and age (risk increases for those aged over 60 years). Recent injury and surgery means about six weeks post. If you still have any sign of bruising or injury, you are definitely at risk.

Athletic, fit individuals are also at risk as they are often more likely to have bruises and sore muscles that can trigger clotting and generally have a slower resting blood flow which means that they are at a greater risk of stagnant blood subject to clotting.

Following these tips as suggested

by International SOS medical and security specialists will increase your chances of enjoying a hasslefree trip and will have the peace of mind to focus on mission while travelling overseas.

Wing Commander Dr Sarawut Niamloi is Medical Director of International SOS. Tel. +66 2614 3656 Email: sarawut.n@ internationalsos.com

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Nok Air flies high with Wi-Fi test N

ok Air has flown 140 journalists and travel writers, Tuesday, to test its free inflight Wi-Fi service on its newest Boeing Next-Generation 737-800 flying the route to Phuket.

Nok Air claims to be the first low-cost airline in Asia to offer passengers free inflight Wi-Fi connectivity provided

by Thailand’s satellite supplier, Thaicom PLC, reports respected online travel industry news service TTR. Inflight Wi-Fi connectivity will be provided using KU-band, which is capable of delivering 3G-like speed with a maximum connection speed of 8 Mbps.

Thaicom In-Flight Connectivity (IFC) broadband service, using Global Eagle Entertainment content, is a value-added service for Nok Air passengers offered free of charge, but limited to a single aircraft at present.

The airline’s CEO, Patee Sarasin, told invited media: “We are very excited to be the first in Asia to offer free WiFi to passengers on top of our other free services. We planned this innovation with Thaicom for 18 months to achieve this crucial connectivity.”

“This is testament to our promise of being proactive in bringing new and innovative services to our passengers.”

He added: “In-flight Wi-Fi will provide our passengers with a whole new travelling experience, as they can still connect to what is important to them at 35,000 feet in the air.”

“The service will tap a new generation that loves to use social media…

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now they can get on the internet, selfie, up photos on Instagram as well as use Facetime, Facebook, LINE, Twitter or whatever,” he said.

The CEO confirmed the service is safe to use on board and does not interrupt flight deck navigation. However, passengers must switch their phones to flight mode and use Wi-Fi connection for communications onboard.

more than 3,000 aircraft in Asia will be Wi-Fi enabled.

On the launch flight, TTR Weekly found that the service was not stable due to teething problems. It took quite a few minutes to connect to applications. Some journalists could not get the service at all. The airline is resolving the issues.

Passengers can start to use the free Wi-Fi service once the plane reaches 10,000 feet altitude.

Experiencing connectivity inflight will be a hit-and-miss affair as long as it is only available on a single aircraft. Passengers will not know when that aircraft is serving the route they are due to fly. However, there are plans to extend Wi-Fi cover as new aircraft are delivered.

Established in 2004, Nok Air operates from Bangkok’s Don Mueang Airport with a fleet of 16 Boeing 737800, two ATR 72-500, and one Q400 NextGen aircraft, serving 24 domestic routes and one international route.

Thaicom confirmed that in Asia, there are around 80 aircraft equipped with Wi-Fi, but the Nok Air 737 was the first equipped with Next Generation broadband. Over the next 10 years

Fleet expansion is in place with confirmed orders for six Bombardier Q400 NextGen and seven Boeing 737-800 Next-Generation and eight Boeing 737 Max aircraft.

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Bangkok Patana is an IB World School accredited by CIS and NEASC The Link

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New travel app boosts Thailand’s tourism profile T he Tourism Authority of Thailand (TAT) has introduced an updated ‘New Amazing Thailand’ mobile app for Android and Apple platforms.

travel information of their choice; Interactive Map which helps tourists to travel to their desired destination easily; Search and Filter functions from which travellers can search for required travel information when in need, and Check-In feature which allows travellers to update to their friends so they know of their exact locations real-time. There is also a ‘Share’ function that automatically links to popular social networks like Facebook and Twitter.

TAT Governor Thawatchai Arunyik (pictured right) told menia that ‘the mobile application offers even more user-friendly features’. “It is enhanced with up-to-date technologies and functions with the key objective of providing useful travel information for international travellers planning a trip to Thailand or already travelling in the country.”

The ‘app’ boasts easy-to-use features that allow smartphone users to get the latest travel information on Thailand including special tour and accommodation deals as well as attractive packages offered by hotels, tour operators and online travel-related businesses.

Key functions of the New Amazing Thailand application include Augmented Reality or AR, a function that allows travellers to see the symbols and travel information from any given location; QR code scanner which gives users to quickly get

Other highlight functions are the ‘Thai Live Cam’ feature that allows travellers to see tourist attractions real-time through live stream videos and the ‘Activities’ tab that enables users to participate in fun quizzes, if any.

More details at: www.tourismthailand.org/mobile

IATA reports air travel upturn

A

ir travel volumes were up by a strong 5.9 percent in August 2014 compared to the same month in 2013, according to new figures published by IATA. International revenue passenger kilometres were up 6.7 percent in August compared to a year ago and strong volume expansion was recorded compared to July as well.

European airlines recorded yearon-year growth of 6.8 percent in August.

Demand for air travel on regionallybased carriers remains strong but latest indicators show weakness in the economic recovery of the Eurozone.

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By contrast, conditions in Asia Pacific have been improving. After a slow start to the year, the Chinese economy has been stabilising over recent months and regional trade activity which encourages business travel has rebounded fully.

Airlines in the region recorded a 5.8 percent rise in international RPKs in August year-on-year. Industry load factors increased in August compared to July as a result of a strong expansion in both domestic and international traffic volumes.

Although load factors remain at high levels, the trend throughout 2014 has been slightly negative as

a result of growth in capacity outstripping expansion in demand.

IATA states that the outlook for air travel remains ‘broadly positive despite the emergence of some downside risk’.

Growth in business activity continues to edge higher, albeit slowly, indicating relatively stronger rates of global economic growth in months ahead. Improvements have been driven by positive developments in the US and careful management of the Chinese economy.

This should help offset some adverse developments in other parts of the world, including the recent faltering of the Eurozone economic recovery.

New jets for Air China A

ir China has taken delivery of its first Boeing 747-800 Intercontinental wide-bodied aircraft. Air China is the first carrier in Asia to operate the passenger version of the new, fuel-efficient 747-8.

This delivery is the first of seven from Boeing’s plant in Seattle.

“Air China has been operating 747s since the 1980s,” said Song Zhiyong, president of Air China. “This iconic airplane has played an important role in Air China’s international development and has also witnessed many milestones of the reform and opening-up of China. We are very proud to introduce the new 747-8 into our fleet to continue its tradition into the future.”

The 747-8 Intercontinental brings double-digit improvements in fuel

Air China’s new 747-800.

consumption and emissions over its predecessor, the 747-400, while generating 30 percent less noise. The airplane’s interior, inspired by the 787 Dreamliner, includes a new curved, upswept architecture giving passen-

gers a greater feeling of space and comfort.

The new aircraft is expected to be used on the busy route between Beijing and Frankfurt.

Beijing tempts travellers with visa-free transits T ourists may now explore China’s capital city as part of a new 72-hour visa free transit system. Authorities in China PRC have been considering the scheme for some time.

Accounts on social media sites are promoting tourist options in Beijing and the authorities are working in cooperation with Travelport – a distribution services and e-commerce provider for the global travel industry – to provide preferential transit flight booking services for tourists from countries such as the United States, United Kingdom, Germany, France and Australia. Travel agencies located within Beijing Capital International Airport will assist tourists in booking tours.

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Thailand zooms in on movie revenues T

hailand earned a record 1,115.67 million Baht from onlocation film shoots in January to August this year, according to the Ministry of Tourism and Sports’ Thailand Film Office Department.

During the first eight months of 2014 some 384 productions, categorised as 89 documentaries, 187 advertising spots, 54 television programmes, 26 music videos and 28 films, were shot in Thailand.

Thailand is tops with European filmmakers (73 productions) followed by 67 from Japan, 64 from India, 26 from China, 17 each from South Korea and US, 15 from Hong Kong, eight from Australia, one from Taiwan and 96 from other markets.

Promoting film shoots comes under a department that is part of Thailand’s Ministry of Tourism and Sports based on the belief that films provide positive tourism awareness that encourag-

Nicolas Cage (centre) pictured on the set of ‘Bangkok Dangerous’.

es travel without a major investment in media or advertising, explains a news report in the online version of travel industry news service TTR. While revenue earned from film crews is substantial, as stated in the

ministry’s data, the bigger picture is the positive awareness of Thailand once the films are circulated. Film earnings this year are expected to grow by some 15 percent. Earnings in 2013 were recorded at 2,173.35 million Baht.

Kasikorn issues new forecast for Phuket K asikorn Research Centre (KRC) estimates international tourist arrivals to Phuket will reach 13 million and generate revenues of 279 billion Baht by the end of 2014.

The centre said that although tourist arrivals were hit by political unrest Phuket had faired better than many other destinations due to its direct flight links with important source markets in the Asia Pacific. However, the coup and martial law ultimately 24

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caused declines that impacted on the island’s hotel performance in the second and third quarter of the year.

Since early September there was an improvement in bookings, reports KRC, and this continued with the popular Vegetarian Festival and China’s Golden Week in early October.

KRC was predicting some 258,000 visitor arrivals and tourism revenues of 3,100 million Baht in the period 24 September to 2 October.

TAT bids to stage iconic Tour de France race T

hailand could soon be hosting the world’s biggest cycling race, the Tour de France, The Tourism Authority of Thailand (TAT) is in talks with Paris-based Amaury Sport Organisation about staging the race in Thailand next year.

A delegation led by TAT’s Deputy Governor for Tourism Products and Business, Mrs. Vilaiwan Twichasri, held preliminary talks with Jean-Etienne Amaury, Chairman of the Amaury Sport Organisation – the main agency organising the annual Tour de France – in Paris to seek ways of organising such a prestigious sporting event in Thailand.

TAT Governor Thawatchai Arunyik said, “More talks are underway but we expect Thailand to play the perfect host to this esteemed and prominent cycling race as early as in 2015.”

The Tour de France is an annual multiple stage bicycle race, primarily held in France. The race was first held in 1903 originally just to increase sales for France’s L’Auto magazine. Following the inaugural event’s tremendous success, the race turned into an annual event and has since become so famous that riders from all over

the world make it a must-participate race of a lifetime.

Khun Thawatchai added, “The Tour de France, being the world’s oldest, biggest and most famous international cycling race, is the ultimate hope and dream for all professional cyclists to participate in at least once in a lifetime. Thailand has also become a destination that international tourists must visit at least once in their lifetime. This makes a perfect combination for the Tour de France,

the world’s famous bicycling race, to be held in Thailand - the world’s famous tourist destination.

“By playing host to a world famous cycling race as the Tour de France, we are saying that Thailand is ready to host any international sporting events of all types and sizes. We are saying that Thailand is the place to enjoy sporting events, to enjoy unique natural and cultural experiences, and to share the memorable travel moments with the world.”

The Hellfire Pass Memorial Museum in Kanchanaburi has been named as the ‘Top Museum in Thailand’ and the ‘Fifth Top Museum in Asia’ in listings compiled by TripAdvisor.

Announcing the results of its Travellers’ Choice awards for museums around the globe, a TripAdvisor spokesman stated that ‘the Hellfire Pass Memorial Museum is a must for anyone visiting the Kanchanaburi area to pursue their interest in the history of the Burma-Siam Death Railway in World War II’. Barbara Messing, Chief Marketing Officer for TripAdvisor, added, “Some of the world’s most significant cultural institutions are represented within the Travellers’ Choice Museums - thanks to the feedback shared by millions of travellers around the world. Featuring some of the world’s finest art, scientific discoveries and historical events, these world-class attractions offer both educational and enriching experiences.”

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Tourism Council sets course on new roadmap T

he Tourism Council of Thailand is recommending eight key measures in what it calls a roadmap to secure four trillion Baht in tourism revenues by 2018.

Addressing the Council, TCT President Piyaman Techapaibul said the country tourism needed reform if it was to reach this ambitious revenue target. A roadmap to achieve this objective has since been presented to Thailand’s Ministry of Tourism and Sports.

“It is expected that Thailand will welcome 50 million international tourist arrivals by 2020 but we must reform the tourism sector to improve competency,” added Khun Piyaman.

“The average tourism growth rate in the past three years was almost 20 percent despite the political problems, making the new revenue target achievable.”

“Thailand has the potential to reach four trillion Baht in tourism revenue

by 2018 if the interim-government implements a number of measures,” she said.

The key measures outlined by Khun Piyaman are: • To position the country’s tourism direction according to the market demand study of the Tourism Authority of Thailand • To set up tourism development committees in five key areas Lanna civilisation involving Chiang Mai, Chiang Rai, Lamphun, and Lampang; Active beaches in Chonburi, Rayong, Chanthaburi, and Trat; Southern I-san covering Nakhon Ratchasima, Buri Ram, Surin, Si Saket, and Ubon Ratchathani; Royal Coast in Phetchaburi, Prachuap Khiri Khan, Chumporn and Ranong; and the Andaman Sea covering Krabi, Phang Nga, Phuket, Trang and Satun • To integrate a marketing strategy using a single team/single website/ single message to reduce duplication

• To develop tourism human resources to have more quality and competency • To improve tour operator quality focusing on setting up a network, creating standards, increasing product and service value as well as providing financial resources • To support domestic tourism, which is one of major contributor for the country’s tourism industry • Encourage tourists to travel to community-based tourism projects to spread revenue directly to local people • Tighten tourism facility measures particularly creating a one-stop tourism service website; developing mass transportation in key tourist attractions such as on Rattanakosin island; producing tourism applications such as maps and transportation GPS; upgrading the online visa service; doing away with departure cards for Thais; adopting the advance passenger processing (APP) system; upgrading tourism call centres; and solving tourism fraud.

Tourism Council of Thailand’s Board of Directors Meeting at Napalai Room, Dusit Thani Bangkok New Tourism Minister Kobkarn Wattanavrangkul (pictured centre) was guest of honour at the recent Tourism Council of Thailand Board Meeting held at the Dusit Thani hotel, Bangkok. Also pictured are Pornthip Pornthip Hirunkate, Vice President - Marketing; Somsong Sachaphimukh, Vice President Special Activity; Piyaman Tejapaibul; Kobkarn Wattanavrangkul; Surapong Teeharuvichit, Vice President - Planning & Evaluation and Sisdivachr Cheewarattanaporn, Vice President - Membership.

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Survey highlights hotel guests demands A

survey from hotel solutions provider HRS, conducted with the Fraunhofer IAO, has revealed that smartphones, tablets and corresponding apps are essential companions for many travelers today.

The survey showed that 42 percent of guests from the UK would rather operate their hotel room’s lighting, air conditioning and television via a display instead of using a separate remote control or switch.

“As the fast-paced high-tech world finds its way into hotels with tablets instead of guest folders, smartphones instead of room keys, and apps instead of remote controls, the findings show that the hotel industry needs to adapt to the new user behaviour of many of their guests or risk falling behind,” John West, MD for HRS UK, told Conference News.

The survey also revealed that business travellers in particular are looking for a ‘home away from home’ experience when it comes to technology in their hotel room.

Globally, 44 percent said they would like the availability of a tablet while 23 percent wanted a laptop in their room.

One example of a UK hotel setting standards in delivering the latest technology is the Eccleston Square in London, a boutique hotel within a historic building, intuitive technology meets luxurious design. Guests receive a personal iPad as a digital concierge and can navigate almost everything in their room via a touchpad. Amongst other innovations, the see-through bathroom wall can be turned into frosted glass.

“Hotels are certainly starting to respond to customer demands and recognising that busy business travellers want the latest technology and best gadgets available during their stay to ensure that they have the best experience,” said Jens Luik, hotels solutions director for HRS UK and Ireland.

Lift off for NASA event at convention centre T

he NASA Space Exhibition opens in Bangkok on 1st December at the Bangkok Convention Centre – fifth floor, Central Plaza Ladprao – with the backing of the Tourism Authority of Thailand (TAT).

TAT Governor Thawatchai Arunyik said, “This news says simply everything about the capability of Thailand as the region’s leader in space technology and initiative, especially as all countries are moving towards the implementation of the ASEAN Economic Community in 2015.

“It also brings much joy to the Thai people, being a part of the grand celebrations to mark the auspicious 87th birthday of His Majesty King Bhumibol Adulyadej, Thailand’s father of technology.”

The NASA Space Exhibition, which runs for three months, also commemorates the 180th anniversary of Thai-US relations. The exhibition will be divided into four zones: space technology, rides, souvenirs and space café. Entry tickets are 500 Baht and reservations may be made at: www.thaiticketmajor.com The Link

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Challenges remain for Asian trading nations T

rade growth in Asia and the Pacific continued to weaken in 2013. In the final two quarters of 2013, growth rates for exports and imports in the region were below global averages for the first time in a decade.

Despite this slowdown, Asia and the Pacific has become the largest trading area in the world, accounting for close to 37 percent of world trade.

More than half the total trade in the region is with other Asia-Pacific economies.

China is the second-largest merchandise exporter and third-largest merchandise importer globally. More than 10 other developing economies of the region are in the global top 25 exporters and importers, alongside Japan and Australia.

The overall economic performance of the region continues to outpace other parts of the world, although Africa is now also growing rapidly. Growth remains lower than in the pre-crisis era, but there is no doubt that rising trade and investment flows continue to be behind much of the region’s relative success.

Economies in the region continue, however, to re-examine the longterm viability of export reliance. The sharp collapse of world trade in 2008 and 2009 illustrated the need to reduce dependence on external sources of demand. Instead, growth strategies need to focus on identifying more diversified and stable sources of demand growth, which will include fostering domestic and regional sources of demand through deeper integration, enhanced connectivity and reform of trade policy.

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The Asia-Pacific Trade and Investment Report (APTIR) 2014 describes recent regional trends and provides an analysis of developments in (a) intraregional trade in goods and services; (b) foreign direct investment; (c) trade facilitation measures; (d) trade policy measures; and (e) preferential trade agreements. The main findings of the report are summarised below.

Continuing shadow of crisis highlights the ongoing need for rebalancing Developments in 2013 and, so far, in 2014 show that the prolonged consequences of the 2008-2009 global financial crisis have cast a shadow over the trade prospects of Asia and the Pacific. Intraregional demand is evidently vulnerable to the ongoing global economic slowdown.

while its imports fell by more than 13 percent.

Nevertheless, several economies that are labour- and resource-intensive exporters registered double-digit export growth in 2013. They included Bangladesh (16%), Cambodia (16%), Georgia (22%), Kiribati (29%), the Lao People’s Democratic Republic (15%), Myanmar (16%), Vietnam (15%) and Uzbekistan (11%).

Intraregional trade increased in importance during the past decade, especially on the export side. The share of intraregional exports increased from 44 percent of total Asia-Pacific exports in 2000 to 52 percent in 2013. However, intraregional trade patterns are not uniform across subregions.

It is expected that the growth of merchandise trade by developing AsiaPacific economies will continue to be slow-paced in the remainder of 2014 compared with the pre-crisis period, with average export growth of 5percent in real terms. This growth is expected to range from a low of 2percent (Russian Federation) to a high of 7percent (Singapore and the Philippines).

In fact, the largest trading partner of most subregions is East and NorthEast Asia (see table 1.2 in chapter 1), mainly because China figures so prominently in trading by those countries. Furthermore, heavy reliance on a few trading partners yields an extreme level of intraregional trade dependence in the cases of the Asia-Pacific’s least developed countries and landlocked developing countries (figure A).

Analysis of individual country performances confirms that most otherwise dynamic trading economies in Asia and the Pacific are experiencing an export growth slowdown compared with the same period in 2013.

The export performance of the AsiaPacific region is expected to improve in 2015, to reach a growth rate of seven percent in real terms. However, considerable uncertainties in the trade outlook remain.

China experienced trade stagnation during the first five months of 2014.

Exports from India, the second-most populous country in the region, increased marginally by 1.9 percent

On the economic side, these stem from fluctuations in the economic recovery of the United States and the risks of a Chinese economic hardlanding. Politically, the risks of in-

Figure A. Intraregional import dependency by Asia-Pacific economies, 2012 (Unit: Percentage of total merchandise imports)

Source: Figure 1.7 in chapter 1.

creased geopolitical tension and instability remain high, with possible spillovers for trade and investment.

As the region is not immune to global economic uncertainties, the need to focus on long-term strategies for increasing competitiveness has never been greater. Policies should be adjusted to secure benefits from new and emerging forms of trade and production. These encompass growing connections between countries through participation in global value chains (GVCs).

Dispersed production across many locations is fuelling both growing trade in intermediate inputs and rising demand for services related to coordination of production, such as logistics. In a world where most countries participate increasingly in GVCs, raising the value-added of exports is more important than increasing gross exports.

APTIR 2014 uses a simple indicator of revealed comparative advantage to demonstrate that the value-added by domestic producers is the key to enhancing overall competitiveness and facilitating entry to international production networks or GVCs.

As explained in chapter 1, failure in the world of globalised production to distinguish between gross exports and domestic value-added in exports can lead to misguided trade and industrial policies.

Regional potential in services trade going unexploited Growth in commercial services exports from the Asia-Pacific region lagged behind the world average in 2013. This slowing of overall services export growth was driven by the diverse performances of leading regional services exporters. While China and India performed strongly, other exporters – especially the advanced economies – were unable to maintain their export growth momentum.

Although the divergence in export performance is discouraging, of more general concern is the uneven use of services trade opportunities in the region. The concentration of services exports and imports is extremely high with 70 percent of services exports attributable to just six economies in the region: China, India, Japan, the Republic of Korea, Singapore and Hong Kong.

This implies that a large gap exists in trade competitiveness between these leading performers and the rest of the region. Given that the main component of regional service exports is business services, which contribute significantly to the value-added of industrial exports, the performance gap is quite alarming for the rest of the Asia Pacific.

This gap in business service exports could also indicate a bottleneck in improving the competitiveness of an economy’s industrial exports. The removal of restrictions on trade in services could raise the efficiency of service industries and provide support for exports.

Travel services are also an important growth sector, particularly for small island economies and least developed countries. Through strong backward and forward linkages with domestic activities, the sector has significant consequences on employment and environmental prospects.

It is encouraging that, in contrast to services trade in general Asia Pacific trade in travel services has continued to grow strongly during recent years.

Yet there remains considerable scope

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for further improvements to tourism infrastructure in order to boost arrivals in emerging economies, especially Pacific island countries.

While trade in commercial services amounts to only 15-17 percent of total Asia Pacific trade – less than the share globally – this measurement under-represents the true importance of services in trade.

As discussed in chapter 2, services are increasingly becoming embedded in manufacturing production. The expansion of global value chains involving multiple Asia-Pacific economies has contributed to the increasing importance of business, communications and transportation services as critical components that link and facilitate these international production networks for industrial exports.

While the role of services valueadded in industrial exports has been increasing, detailed evaluations are still very limited because of a lack of data. Chapter 2 uses the most recent OECD-WTO Trade in Value-Added (TiVA) database, launched in May 2013, to shed further light on the extent of this so-called “servicification.”

According to the trade value-added data, services contributed 29 percent to the value of global industrial output in 2009. Exports by many industrial sectors included services content of more than 30 percent by value (see figure 2.6 in chapter 2).

Exports from high-tech industrial sectors participating in global value chains, especially transport equipment, tend to have higher services content (37%) than other sectors. In contrast, gross exports by traditional industrial sectors typically contain a lower value of embodied services at not more than 30 percent of total value. For example, in the case of mining and quarrying, the exports services share was only 10 percent while in agriculture, forestry, hunting and fishing it was 24 percent and in textiles, textile products, leather and footwear it was 25 percent.

Although domestically-provided services dominate the service content in 30

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manufacturing exports, it is expected that imported services will supply an increasing share among those industries that are characterized by international product fragmentation.

Available data, although still limited at present, appear to support this conjecture. Overall, domestic services content accounts for about 19 percent of the value of industrial exports while foreign content accounts for about 10 percent. Foreign services content appears to be relatively higher than average in those industrial sectors perceived to be part of fragmented international production networks, including electrical and optical equipment, and transport equipment. The foreign services content in exports from those two sectors was 15 percent and 13 percent respectively.

New locations and sectors capture growing interest from asia pacific investors In 2013, global foreign direct investment (FDI) showed signs of recovery from the weaker performance recorded in 2012, reaching a total value of $1.46 trillion. Developing economies, in particular, continued to attract an increased share global FDI and were recipients of more than a half of global FDI inflows. The AsiaPacific region experienced a 7percent increase of FDI inflows – lower than the 9percent global increase.

Although the Asia-Pacific region remained attractive to investors, accounting for 38percent of total global FDI, growth in FDI lagged behind the performance of recent years and was lower than in other fast-growing regions such as Latin America.

Whether this represents a longerterm slowdown in regional investment or is a temporary trend remains uncertain. Nonetheless, there does appear to be a shift in the destination of FDI within the region; traditional major recipients are seeing slower growth with smaller players now attract more foreign investors and on a larger scale. As a result, investments across the region are characterized by increasing diversification in locations and sectors.

Government policies that encourage or hinder FDI play an important role in explaining performance in attracting investment. Indeed, FDI inflows varied greatly among different subregions and countries. The East and North-East Asia subregion experienced the biggest growth of FDI inflows, attracting 36percent more compared with 2012. However, the South-East Asia subregion has proved to be the most resilient, experiencing undisrupted growth in FDI inflows since 2009.

Many Asia-Pacific economies are also significant external investors.

In terms of FDI outflows, in 2013 the Asia-Pacific region experienced a significant increase of 15.1percent.

The region accounted for a 38percent share of global FDI outflows. China is undoubtedly one of the most important players in the region, not only as an investment destination but also as a source of investment. China’s outward FDI flows have risen continuously during the past decade, encouraged by explicit government support for businesses to internationalize.

Investment from Japan also rose by 33percent in 2013.

The usage of different modes of investment is also changing. Traditionally, within the Asia-Pacific region, greenfield FDI was the most significant mode of entry for investors.

However, since 2008 there has been a decline in the relative importance of greenfield FDI and an increase in mergers and acquisitions (M&A).

Between 2011 and 2013, intraregional greenfield FDI inflows in the region dropped by 43percent, with the downward trend visible in most major destination countries.

Intraregional FDI continues to be shaped by global macroeconomic changes. Reflecting the shift in the global centre of economic gravity towards the Asia-Pacific region, intraregional FDI investors are increasingly replacing investors from European countries and the United States – traditionally the top investors in the region. Intraregional M&A deals accounted for a significant share of total FDI inflows in several major markets. Although global FDI

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inflows through M&A to the AsiaPacific region decreased in both 2012 and 2013, intraregional FDI inflows through M&A remained substantial at a total of $153.8 billion, accounting for almost one third of total FDI inflows and a much higher share in certain economies including, for example, China (71.5percent), Hong Kong, China (66percent), and the Republic of Korea, (45.1percent).

Intraregional FDI investors are also investing in a broader range of industries – diversifying away from natural resource-heavy industries to more knowledge-based industries and services. FDI increased in industries such as health care, pharmaceuticals and biotechnology, building and construction, consumer products and business services.

Looking ahead, a number of the “mega-regional” trade agreements under negotiation (see below) also include discussions on investment.

These treaties, if agreed, could further improve the investment climate and support more open trade and investment regimes, thereby improving future economic prospects in the region.

Inefficient regulations drive up trade costs The Trade Facilitation Agreement (TFA), concluded at the ninth WTO Ministerial Conference in December 2013, is the first major global trade agreement to be concluded since the establishment of WTO in 1995. Although implementation of the TFA remains uncertain, the Agreement provides evidence of a global consensus on the importance of trade facilitation for sustainable economic development as well as a narrow, but concrete, framework through which countries may simplify and enhance the transparency of their trade procedures.

At the regional level, progress is being made towards a regional arrangement on the facilitation of crossborder paperless trade, since the adoption by ESCAP member States in May 2012 of a resolution on enabling the cross-border recognition 32

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of electronic data and documents for inclusive and sustainable intraregional trade facilitation. This also suggests that the region is committed to making significant progress in this area in the coming years.

Chapter 4 provides a preliminary regional assessment of the implementation of trade facilitation measures included in the TFA as well as the development of trade services and systems for paperless trade facilitation based on surveys carried out by the ESCAP secretariat since 2012. Because of the great importance of the agricultural sector for inclusive trade and development on the one hand and the fact that agricultural trade costs on the other are typically twice as high as those for manufacturing goods, this year’s APTIR presents findings from country- and productspecific agricultural trade process analyses. It reveals significant and persistent barriers to trade. For example, in Myanmar, no less than 20 actors are involved in the export of rice (see table 4.1 in chapter 4).

In the Lao People’s Democratic Republic, visits are required by three agencies to the premises of animal feed importers to provide three separate reports for verifying the request for import. In Nepal, local administration still charges an export fee even though there is a national policy of not imposing such fees. Furthermore, in Bangladesh and Thailand it can take up to 17.5 days and 14 days, respectively, to obtain the sanitary and phytosanitary (SPS) certificate, including laboratory tests, necessary for exporting shrimp (see figure B).

This accounts for more than half of the total time required to complete export procedures within these two countries. In Cambodia, it takes between five to seven days to complete the same procedure. In Nepal, Cambodia, Myanmar and Sri Lanka, it takes only one day to obtain the SPS certificate.

These findings have important implications for policymakers and other stakeholders involved in trade facilitation. First, they confirm that many agricultural trade procedures are not only complex but also specific to the

sector or product, suggesting the need for trade facilitation support programmes dedicated to agriculture and food products.

Second and more generally, the trade process analysis studies suggest that a whole-supply-chain approach is essential to making significant progress in reducing trade transaction costs and improving competitiveness. This is because the most important bottlenecks may not be at the border and may also relate to inefficient services by the private sector rather than by government agencies.

Accordingly, this requires policymakers to monitor the performance along the entire supply chain and to identify solutions to streamline trade process continuously, as proposed in previous issues of APTIR. The chapter also proposes some concrete actions as a way forward for countries and the region in three areas of immediate importance: (a) implementation of the WTO TFA measures; (b) development of cross-border paperless trade; and (c) establishment of sustainable trade facilitation monitoring mechanisms.

Dangerous drift away from openess needs to be reversed Trade policies in the Asia-Pacific economies show signs of both protectionist and liberalizing tendencies, with the overall outlook remaining uncertain. The latter half of 2013 and the first half of 2014 have seen some positive signs of renewed interest in liberalization, suggesting that post-2008 crisis pressures for protection of domestic producers may be weakening. In the major G20 economies, the pace of introducing new trade-restrictive measures recorded

by WTO had at least plateaued in the six months up to May 2014.

However, regional trade policy continues to show worrying signs of a drift away from openness. While Asia-Pacific countries adopted both liberalizing and trade-restrictive measures, from October 2012 to November 2013 the balance tipped further towards trade-restrictive measures, when 72 new trade-restrictive

Figure B. Days required for exports of agricultural products

Source: Figure 4.6 in chapter 4.

measures were recorded compared with 37 liberalizing measures. Overall, tariff increases were the most common trade-restrictive measure (see table 5.1 in chapter 5); the period saw 106 tariff increases globally, 28 of these in the Asia-Pacific region (of which all but three were in the region’s developing countries).

Usage of trade remedies is also increasing barriers to trade; during the above period 70 new measures were introduced in the Asia-Pacific region.

This was greater than the number of terminations, meaning that the overall number of barriers to trade increased, although this trend may be turning (see box 5.1 in chapter 5).

Anti-dumping initiations were by far the most common form of action, with India being the largest initiator.

China was the country most targeted by trade remedies.

New energy is needed to reverse this trend and seize opportunities to boost trade, growth and prosperity.

In the near-term, many temporary trade barriers introduced in the im-

mediate aftermath of the global financial crisis are approaching their “sunset clauses”. By choosing not to renew these trade restrictive measures, Governments could send a strong signal in favour of openness.

In the longer-term, real progress is needed, both through the negotiation of effective regional trade agreements and through a commitment to implement the WTO “Bali Package” as a first step towards further multilateral liberalization.

Likewise, securing greater market access for least developed countries’ products and ensuring that they do not suffer impacts unduly from trade restrictive measures should be a high priority for regional policymakers.

The total number of new less-transparent measures having an impact on at least one Asia-Pacific least developed countries was at its highest in 2009 immediately after the financial crisis, as many countries took steps to protect domestic industries.

Worryingly, despite a fall in new measures in 2010 and 2011, there

has been a recent rebound in traderestrictive measures that have had an impact on Asia-Pacific least developed countries (see figure 5.6 in chapter 5). In 2013, the total number of measures introduced was more than 60percent higher than in 2011. New measures in 2013 were dominated by behind-the-border, non-tariff measures, which present particular obstacles for small and medium-sized exporters from the least developed countries.

It is important that least developed countries gain meaningful market access to not only developed country markets but also to large, growing emerging markets. For example, more could be done in the “BRICS” economies (Brazil, the Russian Federation, India, China and South Africa) to remove barriers to least developed countries’ products. While trade volumes have grown substantially between these groups of economies, there is scope for increasing trade further by lowering tariff and non-tariff barriers on both sides, reducing tariff escalation, extending

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preferential access for least developed country exports and making rules of origin more liberal in the existing preference schemes. For example, China and India have introduced duty-free, quota-free access for many products from least developed countries; however, while this is to be welcomed, coverage could be extended further.

In addition to greater commitment to tackling the most significant tariff and non-tariff barriers through international coordination, scaled-up technical assistance – for example, through Aid for Trade – can also help least developed countries realize their trade and development potential.

Mega-regional deals can help untangle the ‘noodle bowl’ The proliferation of preferential trade agreements (PTAs) continues, although there is evidence of a plateau being reached, especially with regard to the involvement of Asia-Pacific economies. Whether this is due to positive movement in the WTO Bali Ministerial Conference, or to the fact that most of the countries have already concluded PTAs with their most desired trading partners, is undetermined.

However, some economies may be expected to revisit existing agreements and to negotiate deeper integration as well as expanding coverage. This could follow the trend, in recent PTAs, of including additional issues such as competition, government procurement and investments – which were dropped from the Doha agenda.

There are already a number of examples of current members repeatedly expanding bilateral commitments (for example, China and Hong Kong, China and Macao, China, respective-

ly; Australia and New Zealand; and the plurilateral agreements moving towards creating economic communities such as the ASEAN Economic Community and the Euro-Asian Economic Community). Efforts appear to be underway to forge a consensus for including these WTO-plus areas in future multilateral discussions by first building a critical mass of PTAs that incorporate such provisions.

The Asia-Pacific region has been the nexus of PTA activity; of a total of 253 global physical trade agreements in force, 150 agreements involve regional economies. Many agreements are between developing economies, thus establishing a foundation for stronger South-South trade. The economies in the North and Central Asian subregion were the major contributors to Asia-Pacific PTAs in the 1990s.

However, success in reformulating some of the arrangements in that subregion into ambitious customs unions – for example, the one between Belarus, Kazakhstan and the Russian Federation – and plans to move towards an economic community might re-energize the drive by those countries towards regional integration. Since the early 2000s, South-East Asia, through ASEAN, has played a dynamic role in expanding the web of PTAs. Almost as many Asia-Pacific PTAs involve partners outside the region as countries within the region – 72 of the total 150 agreements are with external countries. Judging from the total number, it appears that the agreements in the region are mostly bilateral in nature; however, most subregions also have significant initiatives with multiple members, with the exception of East and North-East Asian economies.

The Asia-Pacific region suffers from a multiplicity of PTAs with complex and overlapping rules – a problem known as the “noodle bowl”. Regional economies therefore need to start reducing the complexity of terms negotiated in PTAs and to try to consolidate their numerous PTAs. This will simplify trade transactions and reduce costs for exporters. At present, the usage of PTAs by businesses is often low because of excessive complexity. A few such efforts in the Asia-Pacific region appear to be under way.

The Asia-Pacific Trade Agreement (APTA) is expanding its membership and provides an open-ended agreement that any developing member State of ESCAP can join. It remains to be seen if the agreement can also be opened to the three developed countries in the region and if, at the same time, it can be converted into a more progressive type of free trade agreement covering more areas.

Other agreements that are emerging as strong alternatives are the Regional Comprehensive Economic Partnership (RCEP), which involves 16 Asia-Pacific economies, and the Trans-Pacific Partnership (TPP) between 12 economies from Asia and the Pacific Rim. It is important to note that there are seven economies opting for membership of both mega-blocs (figure 6.5 in chapter 6). It is not certain whether, after the implementation of the RCEP and TPP agreements, ASEAN+1 and other existing agreements (more than 50 in total) will be nullified or not. Only when RCEP and TPP become openended agreements, and replace all other existing bilateral agreements between their members, can a true consolidation be achieved that will genuinely address the “noodle bowl” problem.

1 When excluding intra-European Union trade, and when the European Union is not treated as a single entity, China becomes the largest trader when measured by the sum of merchandise exports and imports.

2 United Nations, Economic and Social Commission for Asia and the Pacific, “Turning the tide: Toward inclusive trade and investment” in AsiaPacific Trade and Investment Report 2013, Sales No. E.14.II.F.2. Available from www.unescap.org/resources/asia-pacific-trade-and-investmentreport-2013-turning-tide-towards-inclusive-trade-and.

3 Ibid.

4 This process might be complicated in the near future due to political problems that deepened in some parts of the subregion during 2014.

5 The most recent example is the one among those members of the ASEAN-Australia-New Zealand FTA (AANZFTA) that signed the First Protocol to Amend the Agreement Establishing the AANZFTA on 27 August 2014. The Protocol will provide for improved administrative efficiency by customs authorities as well as encourage enhanced business utilization of AANZFTA.

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SUCCESSFUL LAUNCH OF THE “ENGLISH TEACHING ASSISTANT PROGRAMME” In 2014, Salamander Energy sponsored 10 British undergraduate volunteers for the English Teaching Assistant (ETA) Programme. The programme is initiated by British Council, with the support from Thailand’s Ministry of Education and Ministry of Tourisms and Sports. The ETA’s have been assigned to 4 schools in Chumphon and 1 school in Koh Tao , Surat Thani provinces. During the 9 weeks of the programme, the ETA’s supported to local Thai teachers in encouraging and enhancing the students’ English proficiency through conversation and engagement with English native speakers.

Salamander supported this programme based on the needs identified by the local communities. Education is one of the core themes in our Corporate Social Responsibilities initiative and we offered this opportunity to the teachers and students in Chumphon and Surat Thani. The ETA programme will enhance students’ opportunities in higher education as part of the preparation to enter into Asean Economic Community (AEC) in 2015.

Salamander Energy continuously carries out CSR initiatives under the “Happy Community with Salamander” theme in Chumphon and Surat Thani provinces. The English Teaching Assistant programme is another initiative that we would like to reiterate our strong commitment with the local communities wherever we work.

Terrific Energetic Able Cheerful Hardworking Enthusiastic Remarkable

BRITISH COUNCIL

UK experts endorse university engagement A

na Lemmo Charnalia, Social Enterprise Business Manager from UCL Business (UCLB), University College London Technology Transfer Office, and Mike Britton, Managing Director of Good Will Solutions, a logistic business and Social Enterprise supported by the University of Northampton, were invited to speak at a high profile social enterprise conference organised in Chiang Mai. Over 150 university council chairmen, university presidents, vice-presidents, deans, directors, lectures and researchers from all over Thailand attended.

The conference, entitled ‘University Engagement and Social Enterprise: Experiences from UK and Thailand’, was collaboratively organised by the British Council, Chiang Mai University and Engagement Thailand. The aims of the conference were to introduce and extend the concept of social enterprise to Thailand so as to create business opportunities that improve the living standards of the Thai population in general, and relieve suffering in the poorer communities. This conference also provided a chance for the delegations to share their knowledge and experiences on university engagement and social enterprise issues with other Thai university executives and participants.

“University engagement and social enterprise can bring about significant massive change at your institutions, including students and staff, and empower your communities to solve social problems,” said Peredur Evans, Director Programmes, British Council Thailand.

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Ana Lemmo Charnalia delivered a talk on the Community Engagement: a Case of University College London (UCL), UK and provided

an overview of social enterprise, the benefits of university engagement and social enterprise, and shared the experience of UCL and UCLB on

the realisation of research for public benefits.

The UK is widely regarded as a global hub for social innovation and many countries are eager to learn from its experience. The UK is home to some 70,000 social enterprises that provide over one million jobs and last year contributed 24 billion GBP to the economy. Social enterprises in the UK and in other countries overcome challenges, thrive in difficult economic climates and deliver positive change.

With its mission, UCLB helps support and commercialise research from University College London (UCL) and associated NHS trusts for the benefit of humankind. UCLB is also a pioneer among technology transfer offices for developing social ventures – businesses that address social and/or environmental needs, reinvesting profits into the community or back into the business.

Academic staff who would like to start up a social enterprise arising from their research can access comprehensive services including business plan development, contractual and company formation advice, social impact measurement advice and identification of social investors.

Mike Britton gave a presentation on Industry Engagement and Social Enterprising: a Case of Goodwill Solutions. He presented an overview of operational social enterprises in the UK and reviewed the various models employed to support UK-based activities and how community assets are protected. A case study of Social Goodwill Solutions was presented, focusing upon the social impact cre-

ated by the organisation and the durability and sustainability of the social enterprise model. His presentation continued with an analysis of the future potential for social enterprise in general, identifying a social motive for all businesses.

Goodwill Solutions and the University of Northampton are working together to reduce re-offending in an enterprise way by supporting exoffenders to get the training and development they need in order to turn their lives around, as well as providing life changing placement opportunities for students from the University of Northampton.

They promote dialogue and build links between social entrepreneurs, academics, policy experts in other countries and the UK through conferences, video dialogues, online networks and UK study tours.

Such engagement broadens participants’ horizons, disseminates best practice and fosters partnerships across borders. This in turn delivers social and environmental benefits and builds trust and opportunity between other countries and the UK. For more information, please contact Pasiwat Sutthirak, Programmes Manager, Society T: 02 657 5628 E: Pasiwat.sutthirak@britishcouncil.or.th

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Thailand’s economy getting there slowly

By Paul Gambles

I

f you spent any time in the UK in the 1980’s, you may be familiar with the national railway operator’s telling slogan We’re getting there. How quickly was a detail the accompanying advertising campaign failed to divulge. Fast-forward 30 years and the slogan seems equally as apt to describe Thailand’s economic performance.

Current performance In August, the Thai government’s National Economic and Social Development Board (NESB) released reports for Q2 of 2014 and full year forecasts. They showed that in Q2, Thai GDP grew by 0.4 percent yearon-year. This is an improvement after its Q1 contraction of 0.9 percent but it means that in the first half of 2014 overall the economy contracted by 0.1 percent year-on-year.

A breakdown of these year-on-year figures shows that the agriculture sector grew by 2.2 percent and nonagricultural sectors by 0.2 percent.

The slight rise in non-agricultural came from an improvement in utilities (from -3.1 in Q1 to 3.4 percent in Q2); transport and communications (Q1 3.4 percent , Q2 2.6 percent) and wholesale-retail trade (Q1 -0.4, Q2 0.3). There were continued rises, albeit at decreasing rates, in financial intermediation (7.4 percent rise in Q1, followed by 6.1 percent in Q2); and education (Q1 7.3%, Q2 2.6%).

Unsurprisingly, given the political situation, these increases were checked by a decline in the tourism and restaurant sector: -4.2 percent in Q2 meaning a 7.3 percent decline in the first half of 2014. Worryingly, the manufacturing industry also suffered

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a continued decrease of 1.6 percent in Q2 following a horrible 2.7 percent decrease in Q1, meaning a -4.3 percent for H1 2014.

Overall, the small expansion that did occur was largely through government expenditure, private consumption and exports; whereas private investment declined. This was really to be expected as previous commentaries such as the Bank of Thailand’s Q1 Report had highlighted the headwinds of: (i) Softer global export markets (ii) Reduced domestic consumption constrained by the dramatic increase in private debt from 2010-13 (iii) The uncertainty created by the political deadlock in the second half of 2013 and the first half of 2014 Outlook The government body suggested that in 2014 as a whole, the Thai economy was likely to grow at a slower rate than previously projected. It put this down to the political disturbances in the first five months of the year, the slow recovery of the export sector and the continual decline in car production and sales.

So although the economy contracted in the first half of the year as expected the NESB still expected growth, thanks to improved confidence and ‘the return of government administration and budget disbursement to normal’.

That said, headwinds remain which are expected to continue to inhibit economic growth:

(i)

the constraints on export expansion due to slower than expected recovery of the global economy and the decline in terms of trade (i.e. export prices) (ii) the delay in tourism recovery and the damage to Thailand’s image at a time of heightened competition among the global tourism market, which have combined to reduce the number of tourist arrivals (iii) the constraints on investment growth due to the low capacity utilisation and the slow progress in investment promotion approval in the first half of 2014 (iv) continued declining car production because of the inflated sales base in the previous years This analysis certainly rings true with what I discussed with Adrian Dunn of The Brooker Group at the BCCTMBMG Insights event in June. At this event Adrian Dunn also suggested that the new government would attempt to speed up approval of infrastructure projects and foreign investment.

The NESB forecasted that the Thai economy would grow by 1.5 to two percent in 2014. The export sector was expected to expand by two percent and private consumption by 0.8 percent. It still expects total investment to decline by two percent. It also predicts that headline inflation will be at between 1.9-2.4 percent and the current account in surplus of 2.6 percent of GDP. As with any economic picture, some aspects are decidedly mixed but there are already aspects of the new government’s policy that are being well received at home, if not internationally:

(i)

A healthy approach to structural reform – tourism may be temporarily affected but some of the ‘cleaning-up’ activities proposed by new administration should, in the long run, help improve the image of the country in the eyes of foreign tourists in a way that makes it more transparent and sustainable (ii) Attempts at wealth redistribution – proposed inheritance and wealth tax programmes will actually make a difference in terms of tackling the constraints of the Middle Income Trap; improved income distribution and wealth distribution will help to spread the private debt burden more affordably, stimulate consumption and boost GDP in the long run; although this may take a while (iii) Plans to encourage greater domestic consumption are designed in the long term to help reduce export dependence.

Thailand should continue to fire up its export engines but with a focus on the development of more value-added sectors especially services; there are some areas where Thailand is able to add value rather than just act 1 2 3 4 5 6 7

as a source of cheap labour and materials. Salaries in Thailand (excluding in the agricultural sector) have risen by 80 percent in the last ten years but there are no indications that productivity has outstripped this in recent years. This is essential for Thailand’s economic development.

Again this is a long-term change which the military government says it is implementing (iv) As the new government has centred policy on anti-corruption measures, inefficiency should hopefully be consigned to the past.

This would give Thailand the opportunity to move towards an efficient, market-based economy that owes no allegiances to rentiers Certainly, Q3 hasn’t been the easiest time to resume an export boom and the final quarter of 2014 looks like being even more challenging. The demonstrations in Hong Kong are evidence that there are global contentions to current socio-economic conditions – not just in Thailand.

The challenge for the new government, therefore, is the sheer scale of the structural problems that they are aiming to tackle and the inevitable

resistance that they’ll meet along the way. Their greatest asset is the goodwill that currently underpins their overwhelming popularity , but the macro-economic situation is troublesome. For all the focus on domestic politics, it’s the global economic situation that dominates. Any failures may be pinned on the farang and their lessthan-warm acceptance of the government, but Japan and China are the economies where the wheels are falling off. Ironically they are the only two of the main economic players who understood the Thai political situation and handled it with understanding.

Paul Gambles is co-founder of MBMG Group – an advisory firm that assists expatriates and locals in south east Asia.

Tel: +66 2665 2536 e-mail: info@mbmg-group.com Linkedin: MBMG Group Twitter: @MBMGIntl Facebook: /MBMGGroup

http://eng.nesdb.go.th/Default.aspx?tabid=481 http://www.nationmultimedia.com/webmobile/politics/Expectations-high-that-reforms-under-NCPO-will-end-30240650.html http://englishnews.thaipbs.or.th/inheritance-tax-bill-ncpos-scrutiny/ http://www.bot.or.th/Thai/MonetaryPolicy/Documents/MPC_Minutes_52014.pdf Source: Labour Force Survey, National Statistics Office http://www.bangkokpost.com/opinion/opinion/417625/public-must-own-anti-corruption-drive http://blogs.wsj.com/searealtime/2014/06/23/thai-junta-scores-high-approval-rating-despite-concerns/?mod=WSJ_SEA_Blog

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Clear communication vital to success in global market

By Neil Stoneham

T

he internet has changed our channels of communication beyond all recognition. Today, the buzzword is ‘speed’ and we think nothing of sending an instantly delivered email to people thousands of miles away or ‘Skyping’ with our associate on another continent.

Indeed, access to information has never been easier. On the one hand, this represents real progress. But on the other, it means there is more of it, resulting in a lot of noise.

In order to rise above the din and compete, your company’s communications must be razor sharp. If your message is garbled or badly constructed – a flaw of many businesses the world over – then you run the risk of losing potential customers. If it is targeted and focused, more people will understand the benefits of engaging with your company and come knocking.

Sadly, however, poor communication costs businesses every day and, in some cases, leads to collapse.

In the global marketplace, English is largely acknowledged as the lingua franca. In fact, English has been designated the official language of communication for the ASEAN Economic Community, due to launch next year.

That’s why member states are working hard to develop the English speaking and writing skills of their citizens, so as to become more competitive.

It is also something of a priority for Thailand, especially after the country came 42nd out of 44 in a recent sur-

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vey of English proficiency in the region. The government has spent lots of money attempting to improve on this, but it will be a while before any real results show through.

Importantly, good communication is not simply a case of getting your spelling or grammar right. Strong business communication is all about creating engaging messages that people want to read and share.

The rise of social media has brought the benefits of sharing content into sharp relief. As such, businesses must quickly learn new rules of engagement to keep up with an increasingly web-savvy clientele in a constantly changing environment.

In the modern world, much of our business comes from the Internet – whether through search or more directly from e-commerce. Websites and social media are the major forces driving customers our way, and quickly taking over the traditional forms of PR and advertising we once relied on.

Clearly, then, getting your message right has never been so important.

Given that Thailand is lagging behind its local competitors in this sense, what can be done? Training is key, here. Businesses need to provide training so that employees grasp not just the complexities of the English language, but also how to apply it successfully in a business context.

English courses offered by language schools are a good foundation. For more experienced staff or expats, however, it pays to invest in training that instills the principles of effective business communication first and foremost.

Such skills are vital, as our competitors – who already understand this issue – race ahead. Businesses in Thailand have every opportunity to shine here. It just needs sound judgment and a good long-term strategy to make all the difference.

Getting your business listed on the first page of Google is no doubt a prize worth fighting for. But to win, you need to have something worth reading, and leading search engines rank ‘quality’ above all else.

That means your content has to be well written and produced. Great design is certainly a vital component. But whatever media you use to get your message across, clarity, relevance and persuasiveness are what set you apart from the competition.

Neil Stoneham is a Director at Voxtree.

Email: neil@voxtree.com Twitter: @neilstoneham Blog: voxtreeblog.wordpress.com/ Facebook: www.facebook.com/voxtree www.voxtree.com

Office renovations need expert guidance

By Pattra Jotikabhukkana

T

o fit-out or renovate an office can be one of the most challenging and time consuming tasks for any company. Every renovation project should be aligned with the company’s strategic planning, keeping in mind short-term and long term targets.

Unfortunately, many of those responsible for these kinds of projects do not have the experience and technical knowledge to manage the different parties involved such as landlords, designers, consultants, contractors and suppliers. Therefore, many companies are now deciding to outsource the project management of their fit out or renovation to professional project management teams so that their employees can focus on their core business.

A Project Manager will run a competitive and transparent bidding process with the knowledge of comparable prices achieved for materials from previous projects. Project Managers will also review the design and recommend changes that will provide the same quality at a cheaper price. This is known as a value-engineering process.

In today’s heavily supervised business environment, the importance of compliance due to corporate transparency requirements is critical. A project manager will ensure that the whole procurement process can be transparently audited and completed on time.

We know that every company wants the best quality at the best price, delivered on time, in a transparent manner, and achieving this objective requires a specific set of skills and experience.

Among various key players in a fitout project, the role of the landlord is sometimes overlooked by the company. The key real estate objective of the

fit-out work schedule is to minimise the amount of time that a tenant has to pay rental on two premises.

Many tenants forget that they are obligated under the lease agreement to reinstate their existing premises to the original hand-over condition. Depending on how many modifications have been made, the reinstatement work to the original condition can take at least one month.

Most landlords will give tenants a rent free period for new leased space; in an ideal world, the fit-out is completed within the rent-free period and the tenant moves in a month before the lease at the existing premises expires.

The project manager saves money by delivering the project on time, satisfying the requirement of both new and old landlords and avoiding or minimising the period when rent is payable on both the old and the new premises.

The significant risks of not using a project manager include an increase in the possibility of costs going over budget, projects being delayed resulting in extra costs if the lease for existing premises has to be extended, and quality issues. Among these, the most common problem arising from a delayed fit-out project is a double-rent period. Given that the average grade A CBD office rent in Q1 2014 was about THB 837 per square metre per month, on a 30-day basis, each day of the delay would cost a minimum of THB 28 per square metre.

This can be more than doubled if the tenant cannot move out or complete reinstatement of the existing premises by the lease expiration date since the old landlord may agree to a short tem extension but will charge a rental that is at least double the market rate.

For example, let us take a 1,000 square metre project with an original capital cost of 20 million Baht where the tenant is one month late. Supposing the rent at the old and new premises are at the Grade A average of THB 837 per square metre per month and the old landlord has doubled the rate for a short term extension, then the combined rent on the old and new premises will add up to a penalty rate of almost 2.5 Baht million on top of the original 20 million Baht capital cost of the fit out.

Hence, CBRE sees the market in Thailand for managing fit-outs following the same course as the rest of Asia with more companies deciding to outsource project management. It is our recommendation that, for the most effective outcome, companies should appoint a project manager when commencing the search for new premises.

A project manager is very valuable during this process – he or she will assess the various options and determine the most efficient locations where the tenant can have the most people in the least amount of space, thereby saving money while simultaneously providing a comfortable and productive workplace environment.

Pattra Jotikabhukkana is Head of Project Management Services at CBRE Thailand.

Tel: +66 2 654 1111 Fax: +66 2 685 3300-1 www.cbre.co.th

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Positioning e-commerce for growth

By Jamie Helm

E-commerce is a booming business in the west. Thailand however has been slow in adopting e-commerce and lags far behind in the services being offered as well as market penetration. People in general do not trust online payments; credit card penetration is fairly low compared to western countries and, of course, internet penetration is low in rural areas.

The first shoots of e-commerce business are now showing in Thailand with some of the larger corporations making a move to an online presence. The offerings are fairly simplistic but large brand names tend to be able to put momentum behind their efforts and this is probably the start of the e-commerce boom in Thailand.

If growth does occur, there could be many companies vying for online business, and the challenge to them will be cornering the traffic. Having the right products or services, search engine optimisation and easy to use sites is of course critical, but you also need to be able to federate, grow and ultimately turn traffic in to revenue, ideally having other people selling the products for you as a means to grow your business.

Most companies attempting this approach often fall in to a simple trap. They approach potential partners and initiate discussions on how product data can be shared and end up implementing a custom integration to sell their products on their partner’s site. Do this a few times and the costs will really rack up. So what can we do about that?

The simplest answer lies in a simple

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concept – a technology called REST. This technology standardises the way in which information can be exchanged between computers, typically using the standard web HTTP protocol.

tegrate to the warehouse. Creating a REST interface to the product database would provide a single access point for the web site, mobile and warehouse to access and interact with data.

Without going into too much detail, creating a REST interface for your products or services via your web site would allow your partner to access the data and present it in any way they want through their own portals or applications without any partner specific integrations, connections or custom interfaces.

The alternative would be creating an interface to the database for all three. If the company later wants a mobile application, they can reuse the REST interface reducing development costs.

This reduces your cost, increases your speed to market and, if done well, can remove the need for any customisation at all – simply supply your REST documentation to the partner and they can implement simply and quickly.

This technology is not limited to B2C business as B2B enterprises can also reap similar rewards. Suppliers can provide an interface for their clients who could integrate it with their own ERP systems, project management systems or reports.

Of course, development would still be needed but since REST is a standard it will still lead to cost reductions compared to designing an integration from scratch.

REST can even be applied within a single organisation. Take an example where a manufacturing company has an internal office network containing their product / inventory database.

The company wants to provide a web site, mobile application and in-

REST has been adopted by many large players in the market. Amazon, E-Bay, Twitter and Sales Force all provide REST interfaces to interact with their products and services.

The technology itself was named in 2000. It is not a new technology, and there are alternatives but REST has been growing steadily. One key benefit is that REST is a protocol and not a programming language.

REST data can be consumed in web pages, mobile applications, PC applications or tablets. Most modern programming languages support REST out of the box meaning that developers only need to learn the protocol, not a new language.

REST is primarily concerned with the transportation of data from system to system; REST itself stands for Representational State Transfer.

REST does not define a common standard for the data being transferred. One of the most popular data formats is JSON (Java Script Object Notation). This data format is quite easy to use and manipulate and is prevalent among most existing services providing REST interfaces.

JSON is also widely supported with-

in many programming languages and can easily be manipulated.

There are of course related technologies. Many people have probably heard of web services (similar to REST) and XML (similar to JSON), which is a competing standard pushed mainly by Microsoft.

There are also other options which can be considered, but ultimately, REST combined with JSON is preferred by many developers because it is easier to deal with, uses less computer resources to process data exchanges and of course is not tied to your servers’ operating system – all of which reduces operating costs and gives you more flexibility.

The obvious question at this point is how can this technology possibly

affect a small business, operating in Thailand, selling goods online to international customers through partners and their own site.

The answer is quite simple: you can either continue to manually enter products in to E-Bay or Amazon or whatever other channels you use, or you can use their REST API and automate it.

How much time would that save you? If you have retail partners in those countries, you can create a REST API for them to access your inventory and place orders real time.

They can embed it right in their POS systems, mobile applications or whatever other channels they have.

How does that compare to the usual manual email process that many small companies use?

More information about REST and JSON can be found online – there are many articles for developers and business people alike explaining how to use the technology, what the benefits are and of course, how to implement it.

Jamie Helm is a member of the BCCT’s ICT Group. You may contact him at: jamiehelm@ hotmail.com

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ESCAP Asia Pacific Trade and Investment Report 2014

By Dr Shamshad Akhtar

T

rade and investment have been indispensable driving forces of economic growth in Asia-Pacific economies for more than two decades. Growing exports and rising regional economic integration helped countries in the region to create productive employment and to more widely share the benefits of such growth.

The 2008-2009 global financial crisis, however, provided powerful illustrations of the limitations of this approach.

Increased volatility and deepened uncertainties, which continue today, create strong incentives for our region to adjust its model of export-led growth to mitigate the adverse impacts of the external environment. To more fully harness opportunities and improve public welfare there is a need to exploit newer trade frontiers. Twenty first century trade and investment offers a renewed opportunity to support and nurture sustainable development.

This edition of ESCAP’s Asia-Pacific Trade and Investment Report (APTIR) shows that, while the Asia-Pacific region remains the most dynamic pole of the global economy, growth in trade and investment has yet to return to pre-crisis levels. Regional trade growth weakened in 2013, and in the first half of 2014, and although growth in 2015 is expected to increase to seven percent, ongoing uncertainties in global macroeconomic prospects mean this is far from assured.

The lengthy shadows cast by the crisis highlight the need for economic rebalancing. In part, this requires refocusing

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on domestic value addition of exports, rather than increasing gross exports alone. Regional economies also need to diversify away from dependence on traditional sources of export-demand in Europe and the United States, developing domestic demand and better integrating with other regional economies.

In this context, it is encouraging that APTIR 2014 shows consolidated intraregional trade, with more than half of regional exports now directed to other Asia-Pacific countries.

A key finding of the Report is that concentrations of exports and imports remain uneven across the region. North East Asia alone accounted for about 60 percent of both total regional merchandise exports and imports in 2013. In a similar vein, 65 percent of all services exports from the Asia-Pacific region are

attributable to just six economies. This implies that large gaps remain between countries in terms of their trade competitiveness and level of diversification, and that great potential remains still untapped, especially in the services sectors of many countries. The availability of competitive business and trade services, which support industrial exports, is also increasingly essential.

Asia-Pacific attracted $549 billion of foreign direct investment (FDI) in 2013, a rise of 6.6 percent accounting for almost 38 percent of global inflows, yet this was still lower than the global increase and lagged behind other fastgrowing regions such as Latin America.

On a more positive note, the Report indicates a noticeable diversification in the destination of FDI within the region – with new locations and smaller

players now attracting more foreign investors, and on a larger scale.

Intraregional FDI is also expanding in importance, with inflows through mergers and acquisitions totalling more than $153 billion, accounting for almost one third of total regional FDI inflows last year, and also flowing to a diverse range of destinations. Given the importance of foreign investment in transferring technology and generating jobs, this is a promising development and augurs well for deepening global value chains, stimulating higher returns and generating decent jobs.

APTIR 2014 underscores the importance of countries remaining open to imports, and not resorting to unnecessarily trade-restrictive measures. The Report traces a worrying trend of increasingly restrictive measures across the region, dominated by behind-theborder non-tariff measures, many of which have had unintended and detrimental consequences for the region’s

least developed countries, presenting particular obstacles to small and medium sized exporters.

Trade facilitation measures can reduce trade costs and boost competitiveness.

ESCAP’s analysis shows numerous hurdles to trade in the form of inefficient regulations and customs procedures, but encouraging progress is being made in introducing paperless trade and other trade facilitation measures.

Policymakers should take steps to lower barriers to trade. Progress in multilateral negotiations, including effective and speedy implementation of the WTO Trade Facilitation Agreement, would help. Regional trade liberalisation agreements can also boost trade and integration, especially if many of the existing agreements can be consolidated. Completion of the Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP) as open-ended agreements, for example, could lead to the cancelling

or consolidation of as many as 54 separate preferential trade agreements, and vastly simplify the Asia-Pacific ‘noodlebowl’ problem, while also addressing investment and other barriers to trade.

Asia and the Pacific must lead the way in fostering multilateralism to ensure that trade supports sustainable development and helps to deliver the future of inclusive and sustainable growth we want. The data and analysis in this 2014 Asia-Pacific Trade and Investment Report are valuable inputs to the work being done to mainstream trade considerations in the post-2015 development agenda.

Dr Shamshad Akhtar is UnderSecretary-General of the United Nations & Executive Secretary of the Economic and Social Commission for Asia and the Pacific

Service sector plays important role A

tals and health care; film and entertainment; regional operating headquarters; distribution centres and logistics; international procurement offices; trade and investment support offices; aircraft maintenance; research and development; design and printing.

ccording to the National Economic and Social Development Board (NESDB), Thailand’s service sector in 2013 represented around 52 percent of GDP and 43 percent of the Thai labour force. This sector’s contribution to the national economy has increased significantly since 1997.

Major sub-sectors that played a part in the rapid growth of the service industry in recent years are transport and storage; hotels and restaurants; real estate; telecommunications; wholesale and retail trade, and financial intermediation.

The Thailand Board of Investment (BOI) has been promoting the service industry for several years. Indeed, investment and growth opportunities

Hotels such as The Okura Prestige Bangkok employ significant numbers of service sector staff.

exist in many service areas, including tourism promotion services and activities to support tourism; hospi-

During 2014 (Jan-Aug), there were 9,410 applications submitted to the BOI. Among those, 2,886 applications with a value of more than 1,700 billion Baht were in services and public utilities. According to figures for the first eight months of this year, foreign projects investing in services and public utilities sector account for 58 percent of total applications. This trend demonstrates great opportunities exist in this area for foreign investors.

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Protecting products at Trade Fairs T

rade fairs are now a wellestablished part of the business calendar in Thailand, particularly in Bangkok, with a number of high-tech industries represented, as well as areas of the creative sector such as furniture and design. Trade fairs provide foreign businesses with the opportunity to present their innovations and ideas to potential business partners and customers, and allow them to learn from and collaborate with other innovators. There is, however, a risk, in that disclosing your innovations to the public leaves you exposed to other copying and infringement of your IP. Infringement of innovations may not necessarily be straightforward ‘counterfeiting’ – i.e. exact product, packaging and brand imitation. It is more likely that competitors could

Preparing for a trade fair When preparing your materials for an exhibition, it is wise to notify the public – where appropriate – of your IP ownership. This can be done by using the following symbols and phrases:

©

This can be combined with the year of creation or publication to assert copyright ownership in works such as brochures, websites, software, pictures, music, etc.

TM

If you have applied for a trade mark but it is not yet registered or even if you have not applied but are using the trade mark, the TM abbreviation can be used to assert your rights over the trade mark.

®

This symbol can only be used for registered trade marks. It can be a criminal offence to use this symbol if the trade mark is not registered (prosecutions are, however, very rare).

Patent Pending

If the patent application has been made but has not yet been granted, this phrase can be used.

Patent WO/12345678

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be using, intentionally or otherwise, a certain part of your product or innovation. It is therefore advisable to be as diligent as possible and to get to know competitors’ products well.

Given this, a practical and realistic approach must be taken when preparing for and attending trade fairs in Thailand. IP owners must also be patient and pragmatic, as it is unlikely that immediate action can be taken against an infringer. There are, however, steps that IP owners can take before, during and after the event to best protect their IP.

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Once the patent is granted, usually the patent number and jurisdiction are used to show where the patent has been issued.

It is a good idea to research the trade fair organiser’s material as much as possible. For example, it is worth taking the below steps in advance: i) Checking for an IP or business centre that may be able to provide assistance or advice during the trade fair and review carefully the terms and conditions of the trade fair. ii) Liaising with a local lawyer and providing that lawyer with a Power of Attorney (for example, three to four months in advance) and other proof of IP ownership so that legal action can be taken swiftly, if necessary. iii) Checking the list of exhibitors and making a note to check their stands.

What to do if an infringement is discovered at a trade fair?

If an infringement is confirmed at or as a consequence of a trade fair, there are several enforcement options for companies that are usually recommended. These include: a) A notification letter. This letter simply provides the infringer with notice of your IP rights. You may wish to also include a statement that you would be willing to discuss the issue or license the IP to them. These are seen as a softer approach and are often used when there is not strong evidence of infringement. It may be possible to send such a letter on the letterhead of the IP owner (i.e. without instructing lawyers). b) A ‘cease and desist’ letter. This letter will usually threaten legal proceedings and demand that the infringer ceases and desists from infringing the IP in question. It is possible to ask for damages

and legal costs in such letters.

The letter may be accompanied by a form of settlement agreement known as ‘undertakings’ to contractually bind the infringer by the settlement terms. Usually lawyers are instructed to send these letters. c) Raid or ‘search and seize’ actions. These are usually done ex parte, i.e. without informing the infringer, so as to take them by surprise. In Thailand, in the case of patent infringement, the court, authorities or police will most likely not be willing to seize the goods, since there may be complex factual and legal issues involved. However, products infringing trade marks or copyright would be suitable for such an action. d) Investigate the infringer. It may be that the infringer is sourcing infringing materials from a larger supplier that may reside in another country. It may be that an investigation would help provide you with information about their customers and network. Your local lawyer or business partner

may be able to assist with an investigation. There are investigation companies specialising in IP across Southeast Asia. e) Issue legal proceedings. This is often a last resort. Legal actions are not as costly in Thailand as in Europe, but they are still a significant drain on resources, particularly for a SME. Criminal, civil, and administrative actions may be available to the IP owner for injunctions and damages, though awards from the court to recover legal costs are generally very rare

in Thailand and cases are generally only taken seriously where there is evidence of wide scale infringement. Local legal advice is essential when considering such options.

Trade fairs present huge opportunities for collaboration and progressive business, but at the same time, they present a degree of risk in relation to theft of IP. With a robust and wellprepared approach to trade fairs, IP value can be maximised to the benefit of the IP owner.

The ASEAN IPR SME Helpdesk is a European Union co-funded project that provides free, practical, business advice relating to ASEAN IPR to European SMEs. To learn about any aspect of intellectual property rights in Southeast Asia, visit our online portal at www.asean-iprhelpdesk.eu. For free expert advice on ASEAN IPR for your business, e-mail your questions to: question@aseasniprhelpdesk.eu. You will receive a reply from one of the Helpdesk experts within five working days. The ASEAN IPR SME Helpdesk is jointly implemented by DEVELOPMENT Solutions, the European Business Chamber of Commerce Indonesia and the European Business Organisations Worldwide Network.

UK inflation takes August dip

N

ew figures for UK inflation reveal that CPI inflation fell to 1.5 percent in August from 1.6 percent in July. Falls in the prices of motor fuels, food and non-alcoholic drinks provided the largest downward contributions to the change in the rate. The largest upward effects came from clothing, transport services and alcohol.

The latest UK labour market figures revealed that in the three months to July 2014, the number of people in employment increased by 74,000, the smallest quarterly increase since April to June 2013.

The unemployment rate continued to fall, reaching 6.2 percent, the lowest since late 2008. Retail sales rose by 0.4 percent in August. On an annual basis, sales increased by 3.9 percent.

The Eurozone inflation rate held steady at 0.4 percent in August, slightly higher than the original estimate of 0.3 percent. The revision means that the rate was unchanged from July’s

0.4 percent. However, it is still much lower than August 2013’s figure of 1.3 percent. The latest figures show that Italy and Estonia joined Spain, Greece, Slovakia and Portugal in seeing falling prices over the past 12 months.

The OECD has cut its growth forecasts for some of the world’s biggest economies as they believe the weakness among many European economies is holding back global growth.

It cut its gross domestic product growth forecast for the Eurozone this year to just 0.8 percent, down from 1.2 percent in May. The Ukraine and Middle East conflicts are expected to weigh on global growth. The UK has had 0.1 percentage points taken off this year’s growth forecast and added to next year’s, with expectations of 3.1 percent and 2.8 percent GDP growth in 2014 and 2015 respectively.

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Trade and investment growth remains slow in Asia Pacific region W

hile the Asia Pacific region remains the most dynamic pole of the global economy, growth in trade and investment flows is yet to return to its levels of strength prior to the global financial crisis. That’s according to the Asia Pacific Trade and Investment Report (APTIR) 2014 published by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

The report states that total exports and imports from the region grew by only two percent in 2013 and were also weak in the first half of 2014.

Growth in 2015 is expected to increase to seven percent but considerable uncertainties in global macroeconomic prospects mean this is far from assured.

“The overarching message of this year’s report is that the lengthy shadows cast by the crisis highlight the need for economic rebalancing,” said Dr Shamshad Akhtar, Under-Secretary-General of the United Nations and ESCAP Executive Secretary.

“In part, this requires refocusing on domestic value addition of exports, rather than increasing gross exports alone.

“Regional economies also need to diversify away from dependence on traditional sources of export-demand in Europe and the United States, developing domestic demand and better integrating with other regional economies,” added Dr. Akhtar. “In this context, it is encouraging that APTIR 2014 shows consolidated intraregional trade, with more than

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UN General Secretary Ban Ki-Moon and Shamshad Akhtar - Executive Secretary, United Nations Economic and Social Commission for Asia and the Pacific.

half of regional exports now directed to other Asia-Pacific countries.”

Exports and imports remain uneven across region

Patterns of global trade are changing and national policies must adapt, according to ESCAP. The report reveals production is increasingly fragmented across national borders as part of global value chains. “To succeed in this globalized world, countries will need to enhance competitiveness and find areas where they can best integrate in these value chains,” said Dr Ravi Ratnayake, Director of ESCAP Trade and Investment Division.

Amongst the report’s findings, North East Asia alone was responsible for about 60 percent of both total regional merchandise exports and imports in 2013. Similarly, 65 percent of all services exports from the Asia-Pacific region are attributable to just six economies: China, India, Japan, the Republic of Korea, Singapore and Hong Kong, China.

This suggests that large gaps remain between countries in terms of their

trade competitiveness and level of diversification, and that great potential remains still untapped, especially in the services sectors of many countries.

The report also revealed that growth in commercial services exports from the Asia Pacific region at 5.2 percent lagged behind the world total of 5.5 percent in 2013. Asia Pacific attracted $549 billion of foreign direct investment (FDI) in 2013; a rise of 6.6 percent, accounting for almost 38 percent of global inflows, yet this was still lower than the global increase and lagged behind other fast-growing regions such as Latin America.

to deliver the future of inclusive and sustainable growth we want,” said Dr. Akhtar. “The data and analysis in this 2014 Asia Pacific Trade and

Investment Report are valuable inputs to the work being done to mainstream trade considerations in the post-2015 development agenda.”

The Asia-Pacific Trade and Investment Report (APTIR) is a recurrent publication prepared by the Trade and Investment Division of the United Nations, Economic and Social Commission for Asia and the Pacific. It provides information on and independent analyses of trends and developments in: (a) intra- and inter-regional trade in goods and services; (b) foreign direct investment; (c) trade facilitation measures; (d) trade policy measures; and (e) preferential trade policies and agreements.

The report provides insights into the impacts of these recent and emerging developments on countries’ abilities to meet the challenges of achieving inclusive and sustainable development.

On a more positive note, the report indicates a noticeable diversification in the destination of FDI within the region – with new locations and smaller players now attracting more foreign investors and on a larger scale.

Intraregional FDI is also found to be expanding in importance, with inflows through mergers and acquisitions totalling more than $153 billion, accounting for almost one third of total regional FDI inflows last year, and also flowing to a diverse range of destinations. According to ESCAP, given the importance of foreign investment in transferring technology and generating jobs, this is a promising development and augurs well for deepening global value chains, stimulating higher returns and generating decent jobs.

APTIR 2014 underscores the importance of countries remaining open to imports, and not resorting to unnecessarily trade-restrictive measures. The report traces a worrying trend of increasingly restrictive measures across the region, dominated by behind-theborder non-tariff measures, many of which have had unintended and detrimental consequences for the region’s least developed countries, presenting particular obstacles to small and medium sized exporters.

Sustainable Growth “Asia and the Pacific must lead the way in fostering multilateralism to ensure that trade supports sustainable development and helps

The Economic and Social Survey of Asia and the Pacific is the oldest and most comprehensive annual review of economic and social development in Asia and the Pacific. This flagship publication of ESCAP outlines policies to sustain dynamic growth and to make it inclusive such as unlocking fiscal space to finance higher productive government spending and enhancing regional connectivity through stronger institutional coordination across the region. More details: http://www. unescap.org/resources/economic-and-social-survey-asia-and-pacific-2014

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Reducing trade costs key for increasing jobs and reducing poverty T

mon economic growth, as explained

by Mrs Chutima Bunyapraphasara, Permanent Secretary of the Thai Ministry of Commerce. She said that unfavourable trade regulation and inadequate cooperation to harmonise customs are some of the barriers impeding economic and trade development in the Asia Pacific region.

rade facilitation measures as a critical component for ensuring inclusive development in Asia and Pacific, was the key focus of discussions at the Asia Pacific Trade Facilitation Forum (APTFF) in Bangkok.

Organised by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Asian Development Bank (ADB), in partnership with the Thailand Ministry of Commerce, the forum included Asia Pacific policymakers, government officials, trade facilitation service providers, international organisations and development agencies from more than 35 countries.

Dr Ravi Ratnayake

Talks centred upon the WTO trade facilitation agreement and implications for the region as well as sessions on agricultural trade facilitation, small and medium-sized enterprises (SMEs), trade facilitation and inter-agency coordination for trade facilitation.

facilitation performance and pointed out that Thailand was among the top ten Asian countries in terms of international supply chain connectivity and among the top five Asian countries in terms of trade facilitation and paperless trade implementation.

Dr. Ravi Ratnayake, Director of ESCAP’s Trade and Investment Division, explained that whilst many countries in the Asia Pacific region were top performers in terms of connectivity to international supply chains, intra-regional trade remains a challenge due to high trade costs between Asian sub-regions.

Arjun Goswami, Director of ADB’s Office of Economic Regional Integration, noted that the link between trade and economic growth is wellestablished and Asian economies have excelled in applying trade-led economic growth. He said that poverty and widening inequality continue to be key issues within countries and across borders. While trade facilitation has an increasingly important role to play in addressing this, Arjun Goswami stressed the importance of cooperation and collaboration.

“Implementing strategic trade facilitation measures can promote economic growth and inclusive development by improving the access to more actors to international supply chains,” said Dr Ratnayake. He also congratulated Thailand on its trade 50

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Within ASEAN, Thailand has been pushing for new drivers of com-

The forum also saw the launch of a key ADB-ESCAP publication ‘Towards a National Integrated and Sustainable Trade and Transport Facilitation Monitoring Mechanism’. This publication aims to enable countries to establish a sustainable and affordable system to monitor trade facilitation on a regular basis. In this process, the bottlenecks identified would become essential input to formulate and prioritise recommendations for advancing trade facilitation.

Key recommendations developed during the forum included: improving trade facilitation in Asia and the Pacific through simplifying, harmonising, standardising and monitoring trade processes; improving information and communication technologies (ICT), and gaining sustainable commitment from collaborative private and public sector stakeholders. Participants underscored that inclusive and competitive trade relied on the dependability, efficiency and effectiveness of trade networks. Cutting down unproductive and complicated aspects of trade is crucial for the region.

For more information, please see this link: http://www.unescap.org/ resources/towards-national-integrated-and-sustainable-trade-andtransport-facilitation-monitoring

Thai online retail sales to stagnate O

nline sales in Thailand will continue account for just one percent of the total retail sales until 2018. According to research firm Euromonitor International, online retailers in Thailand will experience stagnating sales over the next four years due to stiff competition from traditional retailers who are fast expanding across the country.

Many Thais prefer to touch products before buying them, a factor against online sales. Lack of confidence in online payment security and delivery services are also a barrier to online retail growth.

Euromonitor says Thailand’s internet penetration, at 28 percent, remains low compared to the global average of 35 percent, making it difficult for online retailers to woo customers.

“Without more efforts by the Thai government to develop the country’s telecommunications network, internet retailing in Thailand is unlikely to grow faster,” said Mylan Nguyen, retail analyst at Euromonitor International.

“For internet retailing to take off, retailers will also need to develop more innovations and services to make it easy for consumers to buy and access products, such as quick deliveries or convenient click-and-collect locations.”

purchase items online, while in Indonesia, Malaysia and Thailand consumers are more likely to go online to browse, finds Nielsen.

The research house says travel services such as airline tickets and tour and hotel reservations are the most commonly purchased items online in Southeast Asia, along with tickets for events such as movies, live performances, exhibitions and sports games.

Consumers across south east Asia are increasingly searching online channels to research and purchase products and services.

Singaporeans have the highest online purchasing intention globally for airline tickets and hotel and tour reservations and the second highest globally for event tickets; around seven in 10 Singaporeans plan to go online to purchase flights (70%) and make hotel and tour reservations (69%) within the next six months.

Digital consumers across Southeast Asia enjoy going online to shop, although Filipinos, Vietnamese and Singaporeans are most inclined to

Malaysians’ online purchase intent is also high, with Malaysia ranking second globally for tours and hotel reservations and third globally for

intention to purchase airline tickets and event tickets online.

Around half of consumers in Indonesia, the Philippines and Vietnam intend to make travel and event purchases online, along with approximately four in 10 consumers in Thailand.

Credit card security remains a key concern for consumers across the region with five of the six south east Asia markets ranking above the global average with respect to their concern around providing credit card information online.

Filipinos are the most cautious when it comes to paying online by credit card (67% do not trust giving their credit card information online), followed by Thais (62%), Indonesians (60%), Vietnamese (55%), Malaysians (52%) and Singaporeans (41%), compared to 49 percent of consumers globally.

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ESCAP report highlights closer links with China T

he saying used to be ‘when America sneezes, the world catches a cold’. Today, it is China’s health that many Asia Pacific countries worry about. The latest Asia-Pacific Trade and Investment Report (APTIR) from the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) shows that many Asia Pacific economies have become more integrated with China and more dependent on Chinese demand for their exports over recent years. But, as China restructures its economy, what consequences will this have for growth and employment elsewhere?

China’s strong economic growth over the past decade has drawn in rising volumes of imports from the Asia Pacific region. Some economies, like Indonesia, export mainly commodities to China and have done well from China’s growing demand for raw materials. Others, like Thailand and Malaysia, supply components which are then assembled in Chinese factories into final products, like electronics or household goods, for export elsewhere, such as the European Union and the United States. ESCAP analysis shows that the connection between China’s industrial output and total exports from countries like India, Malaysia and the Republic of Korea was much higher in the past decade than in the 1990s.

But China is now changing: as it rebalances its economy away from export- and investment-led expansion to a model of growth based on innovation and domestic demand, it may be entering a new phase characterized by lower growth rates. While the economy continues to expand, it is unlikely to recapture the doubledigit growth rates seen in the recent past. China’s export growth contin52

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which are in growing competition with Chinese companies to supply inputs for China-centric production networks.

Separately, new investment is also slowing as returns diminish, not least in the construction sector. Countries which are mainly commodity exporters will therefore also be affected by the resulting dent in demand for, say, timber or metals.

ues to outperform the region overall; in 2013 China’s merchandise exports grew by 7.8 percent and service exports grew by 7.5 percent compared with figures for the Asia-Pacific of 2.1 percent and 4.9 percent respectively.

However, the first five months of 2014 saw a considerably weaker performance in China: exports dropped by 0.3 percent on a year-on-year basis. This weaker growth will have knock-on effects for many regional economies - meaning slower growth and less employment.

Further, it seems that other Asia-Pacific economies may not be benefitting from Chinese export growth as much as in the past. China’s imports from other regional developing economies fell by 1.4 percent in 2013 even though, as noted, total Chinese exports continued to expand relatively strongly by 7.8 percent.

What is causing this shift? It may be that China is now producing domestically the intermediate inputs for manufacturing that it used to import. If true, this could have serious consequences for firms in countries like Thailand or Republic of Korea,

However, restructuring in China could also mean new opportunities for emerging Asia Pacific economies over the long-term. As China moves into more sophisticated production activities, and wages in China continue to rise, other countries can take over the production and assembly work previously done in China. Vietnam, for instance, could be well positioned to expand its manufacturing sector and has already seen growing exports.

The analysis in APTIR 2014 suggests that growing exports and rising regional economic integration have helped countries to create productive employment and have shared the benefits of growth more widely.

China has been at the center of many of these trends. Yet the patterns of regional trade and integration are evolving and countries, including China, will need to adapt.

So what is the prescription for those Asia-Pacific economies feeling under the weather? While ‘immunisation’ is not possible ESCAP is making a number of recommendations for policy makers and governments; to take steps to support domestic demand, increase competitiveness (with a focus on services) and improve connectivity with the wider region and the world.

Historic mansion wins UNESCO heritage award R

estoration work on a house once owned by a Thai civil servant has won an Award of Merit in this year’s UNESCO Asia Pacific Awards for Cultural Heritage Conservation. A total of 14 projects from 10 countries were recognised by a panel of international conservation experts that reviewed 46 entries from across the region.

The Award of Merit is for the Phraya Si Thammathirat Residence in Bangkok (pictured right). UNESCO states that the restoration of the early 20th century property in Bangkok’s Pathumwan district is a prime example of multiple-stakeholder commitment to the preservation of a building with significant heritage value.

Phraya Si Thammathirat was a civil servant in the reign of King Rama VI. His house was later sold to the Crown Property Bureau and the present tenant is the Thai-Chinese Education and Culture Foundation.

It sits in the compound of Sitabutr Bamrung School. The work undertaken by the Bureau and the Foundation to restore the historic mansion has been praised by UNESCO. The project renewed the landscape setting and exterior finishes and reinstated the rich interior treatment of the former private house now housing Sitabutr Bamrung School.

‘After restoration, the property enjoys a vibrant role as a centre for cultural exchange and education for the Thai-Chinese community’, the UNESCO statement added.

The UNESCO Asia Pacific Awards for Cultural Heritage Conservation programme recognises the efforts of private individuals and organisations that have successfully restored and conserved structures and build-

ings of heritage value in the region.

By recognising private efforts to restore and adapt historic properties the awards aim to encourage other property owners to undertake conservation projects within their communities, either independently or by seeking public‐private partnerships.

The winners were selected based on how the projects reflected a clear understanding and application of various criteria, such as the articulation of the spirit of place, technical achievement, appropriate use or adaption, and the project’s contribu-

tion to the surrounding environment as well as the local community’s cultural and historical continuity.

Eligible projects must be more than 50 years old and the restoration must have been completed within the past 10 years. Buildings with a new use must have also been in viable use for at least one year from the date of the awards announcement.

Entries are now invited for the 2015 UNESCO Heritage Awards. Further details at: http://www.unescobkk. org/culture/heritage/wh/heritageawards The Link

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Bank remains cautious about branch opening in Yangon S

tandard Chartered Bank’s presence in Burma dates back to the opening of the first branch in Rangoon in 1862. That operation was nationalised in 1963. After a hiatus of more than 30 years the bank returned in 1995 to open a representative office. That office closed in 2004.

We continue to support clients who are engaging with or seeking to engage with Myanmar to help promote trade, investment and economic growth. We serve their needs via our Myanmar representative office.

We also remain committed to partnering with the Central Bank of Myanmar and other stakeholders including the UK-Myanmar Financial Services Taskforce to collectively pursue the development of the country’s banking and financial services sector.

The bank returned once again in 2013 when the Central Bank of Myanmar granted Standard Chartered a licence to re-open its representative office in Yangon. This most recent return to Myanmar established Standard Chartered as the only major international bank operating in all 10 ASEAN markets.

At the time Jaspal Bindra, Standard Chartered Bank’s Group Executive Director and Chief Executive Officer for Asia, said that the bank was looking forward to supporting its global network of clients in their efforts to tap into emerging opportunities in Myanmar, which in turn will help spur further economic growth for the country.

With this in mind there was surprise in some quarters when the bank recently declined the opportunity to apply for a foreign bank licence.

We spoke to Tina Singsacha, Chief Representative at Standard Chartered’s Yangon office, and we began by asking her why the bank did not apply for that licence. Tina explained that the bank’s representative office in Yangon was opened in 2013 to manage trade and investment flows between international clients and Myanmar.

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Q. Have you set a timescale on seeking a full banking licence from the Myanmar authorities?

Tina Singhsacha

She added that the decision not to apply for an onshore branch licence was ‘for commercial reasons’ but stressed that Standard Chartered would continue to grow its presence in Myanmar through the representative office ‘which serves international clients seeking to explore opportunities and invest in the country’.

Tina said that they were confident about Myanmar’s long term prospects and remained committed to partnering with Myanmar on its capacity building efforts to help develop the country’s financial services sector and broader community.

Q. How are you competing in Myanmar’s fast expanding banking sector when your status remains that of a representative office?

We will seek to establish a branch in Myanmar when and where appropriate and when it makes commercial sense to do so.

Q. How is SC providing assistance to UK companies seeking to explore and exploit business opportunities in Myanmar?

We are continuing to support the entry of our clients into Myanmar by providing solutions to their needs into the country through the strength of our offshore markets. We are also exploring other co-operative opportunities with local and foreign banks to support Myanmar’s engagement with the international community.

Myanmar’s reforms are set to continue to move forward at a fast pace and we see lots of opportunities for UK companies in virtually all sectors of the economy. We can provide up to date market research and advice via

Flashback to the opening of Standard Chartered Bank’s Yangon office in 2013.

our onshore representative office and can support project financing for UK clients operating in Myanmar from offshore. There are currently around 30 British companies with an office presence in Myanmar.

Q. Which business sectors need your support – and what level of service are you able to provide?

As a Bank that has deep roots and a long history in the ASEAN region, Standard Chartered has an innate understanding of how it can best contribute to the sustainable growth of businesses in developing economies.

Generally, we are able to assist all business sectors. However, the demand is driven by the country’s own development. Hence we have seen more demand and need from telecommunications, oil and gas, and power sector clients.

Q. When William Hague made his most recent visit to Myanmar (as British Foreign Secretary) he was bullish about prospects for UK busi-

ness. Are you now seeing evidence that doors are opening for UK investors? If so, in which sectors are these prospects most encouraging?

Myanmar has made great strides in its reintegration efforts with the international community and it has done so in a very short period of time. The goal of quick, seamless reintegration is being driven by government’s desire to transform the country socially and economically. We have seen a deep political desire and openness for progressive reforms that will benefit the country.

We believe that Myanmar will not be turning back.

In the near term the signs are most encouraging for UK businesses, particularly in industries where the UK has traditionally been strong. Key among them are corporate/financial sector firms like legal, accounting and financial services as well as oil and gas players such as BP and Shell.

Even consumer driven products such as cars (Land Rover) and heavy duty vehicles (JB) have established themselves in the country.

Q. In which country is the SC banking hub for Myanmar activities located?

Depending on our clients’ needs we support our Myanmar activities either through Thailand or Singapore.

Q. In Thailand, Standard Chartered Bank works closely with the British Chamber. Do you envisage a similar partnership with the new Chamber in Myanmar?

Most definitely. We are one of the founding patrons of the Chamber in Myanmar and I am a founding member of the Chamber’s Board. We believe that the Chamber will provide an excellent platform to promote the growth of British business in the country and we are strong believers in the value of the Chamber.

Tina Singhsacha is Chief Representative at Standard Chartered Bank in Myanmar.

Email: Tina.Singhsacha@sc.com

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Lord Puttnam keeps Myanmar in focus T

rade Envoy Lord Puttnam has been visiting Myanmar to identify business opportunities for British companies and to participate in discussions about public policy and culture.

Lord Puttnam said,” I am delighted to have the opportunity to return to Burma. It is a country with many well preserved traditions and fascinating cultures, while simultaneously undergoing exciting economic and political changes. As new opportunities emerge, I am thrilled to be part of connecting UK business with local counterparts across a range of sectors.”

In a career spanning 30 years, David Puttnam produced critically acclaimed films such as Chariots of Fire, The Killing Fields, Bugsy Malone and Memphis Belle. His films have won ten Oscars, 25 Baftas and the Palme D’Or at Cannes. From 1994 to 2004, he served as Vice President and Chairman of the Trustees at the British Academy of Film and Television Arts (BAFTA).

He was awarded a BAFTA Fellowship in 2006. He retired from film

production in 1998 to focus on public policy as it relates to education, environmental issues and the creative and communications industries.

As part of the two-day visit to Yangon and Nay Pyi Taw Lord Puttnam met with Minister of Culture U Aye Myint Kyu to discuss ways in which the United Kingdom may be able to support the preservation and development of the nation’s culture.

He also met with the Minister of Electric Power, U Khin Maung Soe, to identify business opportunities for British companies. Lord Puttnam reaffirmed the UK’s commitment to responsible investment.

He also met with members of Yangon’s British business community - including the board and members of the recently established British Chamber of Commerce.

British Ambassador Andrew Patrick said, “It was great to have such a distinguished British figure in Burma, our first senior trade visitor since the establishment of the British Chamber of Commerce. He was able

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to meet a wide range of British and Burmese businesses and the visit will help us boost trade ties and uncover opportunities for investment.

Swe Zin Htaik of Myanmar Motion Picture Organisation and Nay Lin Soe from Myanmar Independent Living Initiative.

During his visit Lord Puttnam spoke at a panel discussion titled ‘Putting culture at the heart of public policy’, hosted by the British Council and UK Trade and Investment.

The discussion elaborated on a number of ideas contained in a recently published report by the British Council called ‘Culture Matters’ such as recognising the social and aesthetic value of culture and the potential benefits it can bring to Myanmar’s developing economy.

During his address, Lord Puttnam described culture as a powerful force in uniting nations and peoples. Other panellists included U Kyaw Oo, Rector of the National University of Arts & Culture, Grace

Lord Puttnam also paid a visit to Yangon Film School and observed a sound design class, with students

taking part in an informal question and answer session. During a visit to the Myanmar Motion Picture Organisation Lord Puttnam was met by the celebrated Burmese actress Grace Swe Zin Htaik, who serves as the organisation’s international relations committee, and toured the Myanmar Motion Picture Museum.

Lord Puttnam is the UK Trade Envoy to Vietnam, Laos, Cambodia, and Myanmar. He was awarded a CBE in 1982; received a knighthood in 1995 and was appointed to the House of Lords in 1997.

Myanmar takes first step towards World Heritage status for Bagan M

yanmar has begun the process to nominate Bagan to the UNESCO World Heritage List with an international consultation meeting. The ancient archaeological site is at the top of the country’s priority list for World Heritage nominations.

The meeting brought together international experts to discuss the future safeguarding of Bagan under the World Heritage framework with national and local stakeholders.

These discussions were timely in the face of accelerated development at the site caused by a boom in visitor arrivals and tourism-related investment.

The consultation meeting was organised by UNESCO and the Myanmar’s Ministry of Culture and UNESCO. Minister of Culture U Aye Myint Kyu presided at the meeting alongside Italy’ Ambassador to Myanmar Paolo Bartorelli.

The meeting was conducted within the framework of the project ‘Capacity Building for Safeguarding Cultural Heritage in Myanmar’ which is funded by the Government of Italy, the lead donor country supporting Myanmar’s World Heritage efforts.

Decisions about World Heritage are made by the inter-governmental World Heritage Committee. The Committee comprises 21 State Parties who are elected for terms up to six years by the General Assembly of States Parties to the World Heritage Convention at their biennial meeting.

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Work begins on essential Myanmar reforms T

he Asian Development Bank is proving important support to the Myanmar government as it seeks to modernise the legal framework within which international companies may invest and operate.

The Bank has commissioned BCCT members Baker & McKenzie to undertake the technical work.

“The reform process has just begun so it is a little early to give a comprehensive picture. The reform details are being prepared and are subject to government review, consultation with key stakeholders such as the legal community and private sector operators and, of course, the parliamentary process,” explained Winfried Wicklein, Country Director at ADB’s Myanmar Resident Mission.

ADB had kindly provided a summary of the reform process.

The primary objective of the Companies Act reform process is the modernisation of the law to align with international development and commercial practices; clarification and enhancement of the law, policy and procedure applicable to companies to provide certainty for business and the government administration; strengthening the Myanmar economy through clear, transparent, consistent and stable regulation and better corporate governance and accountability.

The reform will focus on the core elements of the law relevant to the incorporation, financing, governance, administration and regulation of

limited liability companies making investments and doing business in Myanmar.

The reform aims at clarifying registration requirements and improving registration procedures for companies; modernising the management and administration of companies; strengthening the corporate governance of companies; supporting the regulatory role of the Directorate of Investment and Companies Administration (DICA) in administering the company law.

In a second phase, the reform will also include the establishment of a modern company registry.

ASEAN Business Summit set for Nay Pyi Taw T he ASEAN Business & Investment Summit is organised annually by the ASEAN Business and Advisory Council (ASEAN BAC). It is the key platform bringing together ASEAN’s leading influencers from the government and business communities.

This year’s summit takes place in Nay Pyi Taw on 11 – 13 November and is organised in conjunction with the 24th ASEAN Summit. It aims to identify the key issues facing the regional economy and bring together thought leaders in finding ways to address them.

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Myanmar is one of the fastest growing economies in ASEAN and has taken on the chair of the ASEAN for the first time since it joined the regional body.

The country looks forward to hosting ABIS and welcomes all delegates, speakers and guests to the country.

Key discussions to be addressed at ABIS 2014: • How can ASEAN companies better respond to the changing demographic of regional consumers • What must the ASEAN Economic Communities do to address growing gaps between its diverse members • How can the region create a more conducive environment for entrepreneurs to thrive • What are the challenges and trends that lie ahead for ASEAN 2015

Britain in South East Asia (BiSEA) Fax: 603-2163-1781 Email: britcham@bmcc.org.my Website: www.bmcc.org.my Chairman: Dato Larry Gan General Manager: Nik Tasha Nik Kamaruddin Cambodia British Chamber of Commerce in Cambodia British Chamber of Commerce, Cambodia (BritCham) Office: British Embassy, #27-29 Street 75, Phnom Penh, Cambodia Tel: 855-1232-3121 E-mail: executivedirector@ britchamcambodia.org Website: www.britchamcambodia.org Chairman: Darren Conquest Executive Director: Olivia Widen

Indonesia British Chamber of Commerce in Indonesia Wisma Metropolitan 1, 15th Floor, Jl. Jend, Sudirman Kav 29-31 Jakarta, Indonesia 12920 Tel: 62-21-522-9453 Fax: 62-21-527-9135 Email: chriswren@britcham.or.id Website: www.britcham.or.id Chairman: Adrian Short Executive Director: Chris Wren

Malaysia British Malaysian Chamber of Commerce E04C1, 4th Floor East Block Wisma Selangor Dredging 142-B Jalan Ampang 50450 Kuala Lumpur, Malaysia Tel: 603-2163-1784 /1786

MYANMAR British Chamber of Commerce Myanmar Hintha Business Centre Floor 3, 608 Merchant Street (corner of Merchant & 31st) Pabedan Township Yangon, Myanmar Mobile: +95 (0)9250423475 Email: stephanie@ britishchambermyanmar.com President: Antony Picon Executive Director: Stephanie Ashmore

Philippines British Chamber of Commerce of the Philippines c/o The British Embassy Manila 120 Upper McKinley Road McKinley hill, Taguig City 1634 Metro Manila, Philippines Tel: 632-858-2255/858-2372/ 858-2373 Fax: 632-858-2390 Email: chairman@bccphil.com Website: www.bccphil.com Chairman: Roger Lamb General Manager: Chris Boughton

Singapore British Chamber of Commerce in Singapore 138 Cecil Street, #11-01 Cecil Court Singapore 069538 Tel: 65-6222-3552 Fax: 65-6222-3556 Email: info@britcham.org.sg Website: www.britcham.org.sg President: Mr. Hugo Walkinshaw Executive Director: Brigitte Holtschneider

Thailand British Chamber of Commerce Thailand (BCCT) 7th Floor, 208 Wireless Rd., Lumpini Pathumwan, Bangkok 10330 Tel: 66-2651-5350-3 Fax: 66-2651-5354 Email: greg@bccthai.com Website: www.bccthai.com Chairman: Simon Matthews Executive Director: Greg Watkins

Vietnam British Business Group Vietnam Ho Chi Minh City G/F 25 Le Duan Blvd, District 1 Ho Chi Minh City, Vietnam Tel: 84-8-3829-8430 Fax: 84-8-3822-5172 Email: info@bbgv.org Website: www.bbgv.org Hanoi 193B Ba Trien, Hai Ba Trung District Hanoi, Vietnam Tel: 84 4 6674 0945 Chairman: Nick Holder Executive Director: Wai Kit The Link IssueHo 5/2014 59

Experts stay upbeat on Thailand’s residential property sector In part two of our review of the Thailand property sector we ask BCCT members for their views on the residential market.

Q: Prospective purchasers are told constantly that ‘there has never been a better time to buy a condo in Bangkok’ - despite the series of manmade and natural catastrophes over the past 10 years. Do you foresee the property bubble bursting and is there a danger of negative equity for some owners that have purchasing property with loans and mortgages?

James Pitchon is Executive Director at CB Richard Ellis (Thailand).

He said that the property market in Bangkok was complex and that prices were being driven by market dynamics for individual buildings – and by location.

“Prices can vary from building to building in the same location by as much as 200 percent, depending on a range of factors aside from location. Broadly speaking there is no oversupply of units in the downtown area. Built but unsold inventory has been cleared and there is limited new supply. Land prices and construction costs are only like to rise further meaning that new products will cost more. Anyone expecting prices in the downtown area to fall for the best buildings will be disappointed,” he added.

“The stress test will be in the midtown and suburban condominium market where peak new supply over the next two years has coincided with weaker

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consumer demand due to high debt.

Low down payments mean that speculative purchasers who bought two years ago may default rather than complete if they cannot resell or cannot get a mortgage.”

Simon Landy, Executive Chairman at Colliers, told us that there was considerable misunderstanding surrounding the risks and returns that accrue to condominium investment in Bangkok.

“While it is evident that, in absolute terms, supply in the pipeline is running ahead of occupational demand from residents this does not necessarily equate to a property bubble.

When measuring oversupply, it is

essential to estimate the level of demand coming from investors buying for rental returns and, in the Asian context, from buyers who view investments in property in terms of storage of wealth.

“Nevertheless, there is clearly some risk that today’s buyers in Bangkok will see limited upside growth, though given the liquidity in the market there is scant evidence that leveraged buyers are in danger of experiencing negative equity.”

At Debenham Tie Leung (Thailand), Pornpun Chalitkriengkai does not foresee the property bubble bursting but she does believe that some speculative investors may choose not to transfer condominium units when the overall project is completed.

“This scenario is more likely for midpriced condominiums,” she explains.

“High-end condominium projects in CBD, especially those close to mass transit lines, are still receiving positive feedback.”

Andrew Gulbrandson, Senior Manager for Research and Consultancy at JLL Thailand, is adamant that ‘there is neither a property bubble nor a condo bubble in Bangkok’.

Simon Landy

“Overall, the metropolitan area’s condo market is robust. Around the world, property bubbles are typically driven by easy credit. This is increasingly difficult for lower-income consumers in Bangkok to access as both banks and developers have imposed tighter lending and purchase restrictions. That said, the most vulnerable

segment of the condo market at present is in small, inexpensive units (e.g.

30 sq m studio units for around one million Baht) located in suburban parts of Bangkok,” said Andrew.

“This segment is heading potentially towards an oversupply situation and, as potential buyers are mostly at the lower-income end of the spectrum, they could be hardest hit over the next few years as interest rates are expected to rise.”

cent per annum. Whether or not such returns are compelling for potential investors really depends on each individual’s risk profile and investment strategy. For example, an investor from Hong Kong or Singapore might double their return by investing in a condo in Bangkok as average annual returns in those markets are around two percent per year. For individuals simply looking to maximise their returns Thailand’s capital markets are,

CBRE’s James Pitchon says that there is a wide range of gross rental yields for condominiums (before operating expenses and tax) in the downtown area favoured by expatriate tenants.

He added, “CBRE closes over 400 residential letting transactions every year in downtown Bangkok and we have seen gross yields range from three to nine percent. The challenge is to find a property that not only easy to lease at a reasonable yield but also has the best potential for capital growth. Prices do not rise at the same rate for every building.

In Pattaya, Cees Cuijpers at Town & Country Property thinks that there could be a downturn in the residential market by mid 2015. “This will cause some problems for buyers that bought units with loans and mortgages.”

Q. Can you make a compelling case for investing in residential property in Thailand as a buy-to-let investment? What is the range of returns on the investment?

At JLL, Andrew Gulbrandson said,” Our research suggests that returns for individual investors in the buy-tolet segment average around 4-5 per-

on average, providing more attractive returns. Good examples would be the average performance of Office and Retail property funds which, in aggregate, delivered returns of 7-8 percent in 2013.

Pornpun Chalitkriengkai

“Eighty percent of downtown condominium purchasers are Thai and there is a general preference for new rather than old property. Only the best managed and maintained older properties have seen significant capital growth and even then they lag be-

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hind the prices of new developments, said James.

“While Europeans are the traditional source of demand for retirement properties in Thailand, particularly Scandinavians who have established prominent communities in places such as Hua Hin and Pattaya, the community has been growing to include Russians and small clusters of British and other European nationalities, she added.

Simon Landy at Colliers said, “Buyto-let investments are possible in the Thai market and, if well thought through, buyers can achieve yields of around six percent per annum which are attractive compared to many other investment options in the market. However, not all properties have the same yield prospects so it is important for buyers to understand the rental potential of specific investments before making a buying decision.”

Cees Cuijpers says that there is a shortage of executive houses and condos available for letting in Pattaya. “The growth of international businesses on the Eastern Seaboard industrial estates has resulted in a situation where demand is outstripping supply. The average return on investment for the ‘right’ properties is six to eight percent.”

Ming Tze Low

Q. Is there a noticeable increase in demand for retirement properties and holiday homes in locations such as Pattaya, Hua Hin, Chiang Mai and Chiang Rai? Which nationalities are leading the search for such properties?

“Demand for retirement properties has grown substantially in recent years, both in seaside resorts such as Pattaya, Hua Hin and Phuket and in inland resorts such as Chiang, Mai, Chiang Rai and Khao Yai,” says Simon Landy.

“Demand is coming from a wide variety of nationalities. Traditionally, Scandinavians, Germans, British and other northern Europeans have seen the resorts of Hua Hin, Rayong and Pattaya as prime retirement destinations although hill resorts are finding increasing favour. Chiang Mai and the Sriracha area have attracted a number of Japanese and other Asian retirees as well,” he added.

In Pattaya, Cees Cuijpers says there has been some growth in the holiday rental market but no real noticeable increase in property sales to retirees.

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“In Asia, Japanese retirees have been a growing presence and their preference is in cooler climate northern regions such as Chiang Mai. Among neighbouring countries, Malaysians and Singaporeans are also purchasing third and fourth homes in Thailand for temporary getaways and also for secondary retirement and holiday-homes. As properties in the more matured regions such as Hong Kong and Singapore become less affordable, place such as Thailand and the neighbouring Indochina regions will become more appealing supported by improving infrastructure, rising standards of living through better amenities and leisure and entertainment offerings,” said Low Ming Tze. Q. Malaysia actively encourages foreigners to buy property. Are you lobbying the Thai government to adopt similar incentives?

Ming Tze Low

James Pitchon at CBRE says that demand has been slower for properties in Pattaya this year. “At the high end of the market, fifty percent of purchasers have been Thai with Russian investors forming the majority of the foreign component. In Hua Hin the majority of buyers for high end properties are Thai nationals.”

Miss Low Ming Tze at DTZ said, “Whilst the sector is young, we have seen a noticeable rise in demand for retirement properties throughout Thailand, particularly in resort destinations outside of Bangkok. The warm tropical climate, affordable cost of living particularly in terms of adequate health care standards and good infrastructure and quality of life are some of the inducing factors for many foreign retirees.

James Pitchon said that chambers of commerce in Thailand, including BCCT, have been proposing measures such as increasing the quota of foreign ownership in condominiums, allowing foreigners to borrow money onshore to fund a condominium purchase and extending the longest length of lease from 30 years to 90 years.

Former BCCT Chairman Simon Landy, speaking on behalf of Colliers, said, ”Thailand is an attractive residential location for many foreign nationalities even though it has not matched the ownership advantages of Malaysia’s My Second Home programme. A similar programme in Thailand would be a big incentive for encouraging more foreign investment. Through the foreign chambers and as individual companies we have been actively involved in lobbying the Thai government for more attractive incentives.”

helping the needy

SET students give back to society U

niversity students in Nakhon Sawan who received scholarships from the SET programme are encouraged to give back to society and it has become a tradition amongst students at Rajabaht University to provide a building at a needy rural school.

Each year a group of 50-100 students select a school to help. A leader is elected and students are allocated areas of responsibility such as design, budgeting, logistics and labour for the construction project. This could be an activity sala, a library or general renovation of the school.

These projects have been running for over 10 years and despite the extremely hard work in the blistering heat and the very basic living conditions they have to endure for a week or more there is competition from students both male and female to work on these projects. The volunteers include some who have taken part in at least one previous project so that experience is passed on to the new team Apart from providing needy schools with a great new building the project develops the students in teamwork, project management and a community spirit. The end result is a construction

as good as any professional building company could put up and a deep sense of accomplishment by the students.

Each year BTCFN gives around Baht 250,000 to the project for purchase of the building materials. All labour is provided free of cost by the volunteers.

On completion the project is inspected and there is an official opening ceremony attended by students, teachers, parents and local dignitaries. At the end of the project the school has a great new building while the students learn valuable lessons of teamwork, project management and the importance of giving back to society.

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New advice from FCA T

he UK’s Financial Conduct Authority has issued new advice to consumers that is very relevant to those now considering investment and retirement planning.

This FCA advisory note was issued on 12 September 2014.

Firms and individuals can only conduct regulated financial services activities in the UK if they are authorised by us or registered to do so, or are otherwise exempt. Yet some act without our authorisation or knowingly run scams.

If you deal with an unauthorised firm you will not be covered by the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS) if things go wrong.

But there are steps you can take to make sure you are dealing with an authorised firm and to protect yourself from fraud and unauthorised activity.

Ten steps to avoid unauthorised firms Check the Register We strongly advise you to only deal with financial services firms that are authorised by us or registered, and check the Register to ensure they are. The Register has information on firms and individual that are, or have been, regulated by us. If a firm does not appear on the Register but claims it does, contact our Consumer Helpline on 0800 111 6768.

Ring them back To confirm the identity of an authorised firm on the Register, ask for their ‘firm reference number’ (FRN) and contact details but always call them back on the switchboard number given on the Register rather than a direct line they might give you. If there are no contact details on the Register or the firm claims they are out of date, contact our Consumer Helpline on 0800 111 6768.

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Use the right website You should access the Register from our website – www.fca.org.uk – rather than through links in emails or on the website of a firm offering you an investment. Also check the address of our website is correct and there are not subtle changes that mean it is a fake.

You can contact our Consumer Helpline on 0800 111 6768 if you have any problems or questions about using the Register or what the information in it means.

Search our list of unauthorised firms

You should also beware of fraudsters pretending to be from a firm authorised by us, as it could be what we call a ‘cloned firm’. These scammers often claim to be from overseas firms that appear on the Register as these firms do not always have their full contact and website details listed.

You can look through our list of unauthorised firms to avoid doing business with, although their names are likely to change regularly. This is a list of firms and individuals that are currently targeting UK investors and we have received complaints about.

We add new names to this list as soon as possible but, if the firm which has approached you does not appear on our list, do not assume it is legitimate. It may not have been reported to us yet.

Make additional checks

See warnings from abroad

With fraudsters adapting their tactics you should make additional checks to confirm you are dealing with the financial services firm in question and have the correct contact details – especially if you have been cold-called.

You might want to check the details on the firm’s website, with directory enquiries or Companies House.

If you are dealing with an overseas firm or scheme you should check how it is regulated and follow similar steps to these. We also have some warnings from foreign regulators about firms conducting unauthorised business.

Beware of cloned firms

Check if a firm is authorised or registered Almost all financial services firms and individuals must be authorised by us. But certain types of firms may instead be registered with us, including some payment services providers and electronic money (e-money) institutions, mutual societies like credit unions, friendly societies, cooperative societies, working men’s clubs and building societies. You can check the Register to see whether a firm is authorised by us or registered.

Beware that registered firms do not have to provide us with as much detail about their business and we have less power to check on the firm

Avoid unwanted sales calls Keep in mind that authorised firms that you have no relationship with are highly unlikely to contact you out of the blue. You can also reduce the number of unsolicited mailings and cold calls you receive by registering with the Telephone Preference Service and Mailing Preference Service.

Report an unauthorised firm If you think you have been approached by an unauthorised firm you should contact our Consumer Helpline on 0800 111 6768. We also have reporting forms that you can use to tell us about an unauthorised firm or broker involved in certain business areas, such as consumer credit, mortgages, insurance products, payment services and share fraud.

Member News

Top industry award for Centara’s Suparat T he AHF International Hotel Investment Summit has awarded Suparat Chirathivat, vice president of Centara International Management, the management arm within the Centara Hotels & Resorts group, as one of the Best Hotel Development Executives of Asia. The award was presented during the 7th AHF International Hotel Investment Summit in Beijing.

Suparat Chirathivat is responsible for driving strategic partnerships for Centara Hotels & Resorts, and for overseeing the chain’s expansion plans to international destinations.During his seven-year tenure, Suparat has helped to increase the Centara portfolio from 11 to 74 properties, of which 80 percent are managed properties.

“The entire Centara Hotels & Resorts group is honoured to receive this

Centara to become a global brand, not just an international brand. “Right now we are concentrating on Asia,” he said. “After Asia, the Middle East and Africa, our expansion plans will focus on Europe and then America.”

Suparat Chirathivat (right) collects the award in Beijing.

prestigious award from the AHF International Hotel Investment Summit,” said Suparat. “The credit for this award goes to all of our employees at Centara Hotels & Resorts. I want to personally thank all of my colleagues for their focused hard work and strong commitment that has allowed us to win such an important award.”

Suparat said that the intention is for

Dr. Virachai Techavijit, Chairman of Regent International Schools and Chairman of the Catholic Business Executive Group, gave a lecture at the ‘5th Strategic Training Programme for the Prevention and Suppression of Highlevel Corruption’, organised by Thailand’s National Anti Corruption Commission. The event was attend by some 75 senior officials from government agencies. Pictured, from left to right, Imam Vinai Sa Ma Un, Dr. Virachai Techavijit, Phra Kampeerayan (Dr. Somjint Sammapanyo) and Dr. Surawat Chompoopong (moderator).

CEO Thirayuth Chirathivat said that Suparat was ‘a true visionary able to combine this with practicality, a profound ability to understand the needs and aspirations of business partners and a strong sense of tourism markets’.

“Suparat is a great driving force within Centara Hotels & Resorts,” he said. “His warm personality, his enormous experience, his reputation as a man of integrity, and his sheer love of the business have been amongst the factors that have allowed us to expand in Thailand and other countries.”

International SOS Regional MD Philippe Huinck attended the ribbon cutting ceremony at the company’s new offices in Bangkok’s Wireless road. He was joined

by Pipat Kananuwat, Managing Director – Thailand & Laos of International SOS; Prasit Chirawongviroj from Thai Cardif and Panchana Vatanasathien - advisor to the Amata Foundation. International SOS Bangkok employs over 200 staff and operates an assistance centre.

Globally, the company operates from 700 locations in 89 countries.

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Member News

Design award for Bangkok Patana School B angkok Patana School is the first school in Thailand to have been awarded The Design Mark in recognition of its excellence in teaching design. This quality standards framework has been developed by the UK Government’s Department for Education, The Design Council and the Design & Technology Association.

As a Design Mark holder the school joins an elite list of only 51 other schools in the world and just two outside of the UK that are delivering the very best design education to their students.

Richard Smith, Head of the Design and Technology Faculty said, “The inspiration behind the school’s application came from attending the first International Design and Technology Conference in south east Asia in 2012. I immediately recognised that the work we do at Bangkok Patana was worthy of this aspirational recognition and status.

The process has spanned just over 18 months and has involved the members of the faculty evaluating our provision for, and practice in, design education in order to meet the criteria of the quality standards framework.”

The attainment of The Design Mark reflects the strong design ethos embedded throughout Bangkok Patana school. It also recognises the innovative practice undertaken by the faculty, such as working with industry leaders to make potential design scenarios real and its commitment to sharing good practice locally within Thailand and throughout the region.

Belinda back in saddle for Phuket triathlon A

ussie triathlon superstar Belinda Granger is set to return to Phuket in November for her twelfth appearance in the gruelling Laguna Phuket event.

Prapa Hemmin, LPT Event Director and Laguna Phuket’s Director of Sales-MICE & Corporate Events, said, “Belinda has become a true and valued friend of LPT and we’ve been delighted to see her competing here year after year. As well as always being an exciting competitor she’s also been a fantastic global ambassador for LPT and we’re truly grateful for her commitment to our event.”

Belinda first raced in the Laguna Phuket Triathlon (LPT) in 2001 and has missed only two years since then.

She landed the champion’s title in 2008 and 2010.

“It’s really hard to believe that this will be my twelfth time racing LPT,” she said. “I knew from my very first time in Phuket that I would make this a race I would return to year after year. The best part is that over the years many of my family and friends have decided to join me in this annual trip. Every year I look forward

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Belinda Grainger

to returning. There are so many wonderful memories,” said Belinda.

The Laguna Phuket Triathlon, to be staged on 23 November, is Asia’s premier destination triathlon featuring a 1.8 kilometre swim; 55 kilometre bike race and a 12 kilometre run through spectacular tropical scenery.

SALA Hospitality Group opens new Ayutthaya hotel S ALA Hospitality Group has opened a new property on the north bank of the Chao Phraya river in the heart of historic Ayutthaya. The new Sala Ayutthaya comprises 26 rooms and suites, many with views of the river and the ancient city’s famous Wat Phutthaisawan.

This is the fourth SALA boutique branded property for the Group that also owns and operates the beach resorts of SALA Samui Resort and Spa and SALA Phuket Resort and Spa. “SALA is thrilled to now operate the first and only five-star branded property in the enchanting city of Ayutthaya,” said COO Brian Moodie.

New Heads at Bangkok Prep

B

angkok International Preparatory and Secondary School (Bangkok Prep) has appointed Valerie Thomas-Peter as the new Head of School and Duncan Stonehouse as Head of Primary.

Valerie began her career in teaching in York before leading and managing a range of independent and international schools. She was the Head of School at the British School of Boston in USA; Principal of The British International School, Shanghai; Principal of Dubai British School in UAE, and most recently, Director of School at The Alice Smith School in Malaysia.

Duncan Stonehouse taught for several years at schools in Gloucester-

Valerie Thomas-Peter

Duncan Stonehouse

shire before his appointment as Assistant Primary Head teacher at the

British School of Al Khubairat in the UAE.

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Member News

Riverside hotels tackle Chao Phraya pollution E mployees from the eight member hotels of the Bangkok Riverside Marketing Partnership (BRMP), including the Ramada Plaza Bangkok Menam Riverside managed by Klaus Sennik, have taken part in a major clean-up exercise on the city’s Chao Phraya river with crucial support from the Bangkok Metropolitan Authority (BMA).

The BMA’s Environment Department provided 48 ‘yellow’ boats to enable hotel employees to access each hotel’s river frontage.

After a ribbon-cutting ceremony at the Chatrium Hotel Riverside Bangkok, presided over by Khun Panasda Thongfark - Chief of the BMA’s Solid Waste sub-division - and accompanied by General Managers from the eight member hotels, the clean-up teams tackled waste, garbage and vegetation at each hotel’s river frontage.

The river clean-up project is an integral part of the BRMP’s commitment to Corporate Social Responsibility and is designed to heighten awareness of the importance of maintain-

General Managers at eight top Bangkok riverside hotels joined forces in a major clean-up exercise on the Chao Phraya river. From left to right: Klaus Sennik, Ramada Plaza Bangkok Menam Riverside; Nicolaus Priesnitz, Anantara Bangkok Riverside & Spa; Dirk de Cuyper, Millennium Hilton Bangkok; Adrian Brown, Chatrium Hotel Riverside Bangkok; Katja Henke, The Peninsula, Amanda Hyndman, Mandarin Oriental, Edward Brea, Shangri-La Hotel, and Keith Hardie, Royal Orchid Sheraton Hotel & Towers.

ing a clean and healthy river amongst the 5,350 staff employed at BRMP member hotels as well as hotel guests and other stakeholders.

At the conclusion of the river cleanup exercise the hotels’ General Managers met at the showroom of the

Minister of Commerce H.E. General Chatchai Sarikulya (centre) was welcomed by executives from Standard Chartered Bank at the opening of the ‘Insight ASEAN Summit’. This gathering of business leaders was looking to leverage potential economic growth under the formation of AEC. The three-day summit, sponsored by Standard Chartered Bank (Thai), was held at the Plaza Athénée Hotel in Bangkok.

Dr Surin Pitsuwan, former SecretaryGeneral of ASEAN, (pictured fifth from right) delivered the keynote address titled ‘AEC Roadmap: Opportunities and Challenge’.

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Magnolia Waterfront Residences at ICONSIAM to discuss the results of this important CSR project. They also met with representatives of potential BRMP partners including Asiatique, ICONSIAM and River City as well as the Thailand Incentive and Convention Association.

Member News

Chao Xiao Liang (centre), Consulate General for China PRC in Chiang Mai, attended the Prem Tinsulanonda International School’s inaugural Autumn Moon Festival.

He was welcomed by Head of School Alun Cooper and Head of Community Lynda Rolph. The event marks the thriving growth of friendship between the threegeneration community of Prem and other Chinese communities in Chiang Mai.

Douglas Glen, General Manager of The Landmark hotel in Bangkok, hosted a Domaines Barons de Rothschild wine dinner featuring a five-course menu prepared

by Executive Chef Philippe Gaudal. Pictured are ( from left) Khun Keerati Suabsing; M.L. Chantanipa Kasemsri, Director of Marketing Communications - The Landmark; Douglas Glen; Khun Dumrong Puttarn; Khun Santi Imjaijit and Khun Winit Kitchaiya - F&B Director.

Monsoon Island is a new wet and wild water fun zone for younger guests staying at the Centara Grand Mirage Beach Resort Pattaya.

Island joins the five swimming pools, 12 waterslides, waterfalls, lazy river and the rope bridges of the Lost World water park that leads directly to Wong Amat Beach.

Standard Chartered Bank (Thai) has been named ‘Best Foreign Commercial Bank in Thailand’ for the second consecutive year. Lim Cheng Teck (left), Regional CEO Asean and Lyn Kok (right), President and CEO, Standard Chartered Bank, Thailand and Greater Mekong accepted the award from FinanceAsia at a ceremony in Singapore.

NIST International School’s annual ‘Pinktober’ charity event has raised over 190,000 Baht. The funds are used to raise awareness about cancer and women’s health.

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Member News

Global trade poised for sustained recovery – HSBC

E

merging from a period of stagnation triggered by the global financial crisis,

try boost its goods exports more than five-fold by 2030, at an average rate of 11 percent a year.

World trade is set to resume its growth trajectory in 2016, presenting fresh opportunities for businesses that have positioned themselves to benefit.

That’s according to study published

by HSBC Commercial Banking.

India’s exports are currently dominated by goods at the lower end of the value chain, including mineral fuels, textiles and jewellery. Looking ahead, however, HSBC forecasts more capital and skill-intensive sectors like pharmaceuticals and automobiles will emerge as major contributors to overall exports.

Exporters and importers in cyclical sectors, such as transport equipment and metals, will be the first beneficiaries as the pace of growth in cross-border commerce recovers to eight percent in 2016 from just 2.5 percent last year, according to the HSBC Trade Forecast.

The Forecast projects that global merchandise trade will more than triple by 2030 as astute companies capitalise on increasing productivity and consumer wealth in the emerging markets.

“Businesses can’t afford to fixate on the risks posed by today’s geopolitical problems and uneven rates of growth at the expense of their future planning,” said Simon Cooper, Chief Executive of HSBC Commercial Banking. “Conditions have undoubtedly been tough for trade recently, but we are now turning a corner. The medium and long term prospects look significantly better for businesses that have prepared themselves for recovery in both developed and developing markets.”

Increasingly robust economic conditions in the US and the UK, along with a gradual rebound in the Eurozone, will give many international businesses a platform on which to build during 2015. In the short term, emerging markets growth looks more vulnerable – while still rapid in relative terms – reflecting a combination 70

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Simon Cooper

of structural challenges and political uncertainties in Eastern Europe and the Middle East.

By 2030, China is expected to increase its overseas shipments five-fold as it strengthens commercial ties to emerging Asia, the Middle East and North Africa. China currently exports 1.4 times more goods than Germany and the US by value, and will widen this gap to almost three times US exports.

India, meanwhile, is likely to be the world’s fastest-growing exporter from 2014 to 2030, and has the potential to move from the 14th largest exporter of goods by value to the world’s fifth largest. In order to explore this trend in more detail, the bank’s Global Connections report places a special focus on India: New Prime Minister Narendra Modi recently outlined a roadmap of structural reforms for India’s economy in his first budget announcement; reforms we expect will help the coun-

The Forecast predicts that the UAE will become the leading destination for India’s exports by 2030. With the UAE’s expanding role as a re-exportation hub, this indicates a shift in the shape of future trade. India will also increasingly look east for export opportunities.

At the same time, India’s rapidly expanding consumer classes will present an enticing export opportunity for the rest of the world’s producers.

By 2030, HSBC predicts that India’s imports will increase nearly five-fold.

China is expected to capitalise most on the growing Indian market, expanding exports to the country more than nine times over and maintaining its position as the world’s leading exporter of goods to India.

The US, meanwhile, will edge up from fifth to fourth position, more than tripling its exports to the country in the same period.

• HSBC’s Trade Forecast encompasses trade data for 25 countries and territories key to world trade For a copy of the Global Connections Trade Forecast report and for further information: http://www. globalconnections.hsbc.com

Member News

Ray shines on US golf courses

S

tudents of Bangkok International Preparatory and Secondary School (Bangkok Prep) had a field day participating in various sporting tournaments this summer proving that the school’s strategy of balancing academics with sports has been successful.

Topping the list of sports achievers was eight-year old Year 3 student and keen golfer Achira Chumchaivate (Monte) who made it to the final round of the U.S Kids Golf world championship 2014. The largest junior golfing event, the threeday tournament is played over nine different golf courses in Pinehurst, North Carolina. Playing against a field of 108 golfers from 47 countries and 42 states, who all achieved first place in their respective countries, Monte achieved the first position in Thailand and took second place in the world championship.

Playing in three junior golf tournaments in the USA during the month of July, Amarin Kraivixien (Ray), a Year 13 student, also kept the school flag

ship offers from a number of colleges in the United States.

Bangkok Prep students Miki Romanyk (Year 9) and Lorry Cassio (Year 8) took top honours as part of the team that won the 25th Platu National Championships (sailing) held at Ocean Marina Pattaya. Both were presented with the Young Sailors Award. Meanwhile, Thaninwat Bunchasakdiphat, a Year 5 student, took part in the Future Cup Junior Sailing competition at the Royal Varuna Yacht Club, Pattaya and finished in first place.

flying high. In the FCG International Junior Golf Championship, held in San Diego, Ray (pictured above) took the top spot winning by eight strokes against a field of 137 players. He represented Thailand in the Callaway junior world golf championship, also held in San Diego, where he finished fourth in a field of 209 players. Ray’s fine performances prompted scholar-

The Old England Students’ Association under Royal Patronage (OESA) elected Dr Thaweewet Srinarong ( fourth from left) as its new President during the AGM held at the Dusit Thani hotel in Bangkok. Also pictured are outgoing President Burin Nakcharoen ( fifth from left), Vararom Pachimsawasdi; Second Lieutenant Porapol Adireksarn; Supatana Atornp’tai; Dr Jindarat Jumsai na Ayudhya and Sopapim Sethrabutr Simakulthorn.

Making his debut for the All Indochina Australian Rules Football Team was Alex Brewer, a Year 12 student.

The tournament was held at Horseshoe Point, Chonburi and the team won the first game against an Australian Expat team. On the same day, Alex was also part of the undefeated Thailand Tigers squad that won the Indochina Cup. Alex played in two games against Myanmar and Laos bringing his total of international caps to eight.

Dusit Thani Bangkok has received awards in two categories of the ‘Best in Travel’ Poll 2014. The five star hotel was recognised as a ‘Top 25 Business Hotel in Asia’ and a ‘Top 25 Conference Hotel in Asia’ by readers of SmartTravelAsia. com, an online frequent traveller magazine. General Manager Khun Sukanya Janchoo (left) receives the awards from Vijay Verghese, Editor of SmartTravelAsia.com.

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Member News

Top awards for CBRE

C

BRE Thailand has won more top honours in the annual Euromoney real estate awards.

In addition, CBRE Group has been named the Top Global Real Estate Advisory Firm and Top Global Valuation Services Provider this year.

CBRE is the only firm to achieve both top honours in three consecutive years and has now earned the highest award seven times in the 10 years that Euromoney has been running its real estate awards programme.

In Asia Pacific, CBRE secured 18 awards in the Advisors and Consultants category, including six overall country wins. These included awards for Agency/Letting, Valuation and Research in Thailand.

Bob Sulentic, CBRE’s President and CEO, said, “We are exceptionally proud that our clients and industry peers have again named us as the leading real estate advisor globally.

Winning the top global award for the third consecutive year is a significant achievement.”

David Simister (pictured right), Chairman of CBRE Thailand, said, “This is the second time we have won the Top Agency/Lettings and Top Research awards in Thailand. CBRE Thailand is proud that our expertise, experience and staff ’s dedication in brokerage, research and valuation is recognised by the industry professionals and real estate related parties.”

More honours for Centara

C

entara Hotels & Resorts CEO Thirayuth Chirathivat (third right), receives five awards from Vijay Verghese (centre), editor of SmartTravel Asia online magazine.

The awards resulted from the publication’s Best of Travel Poll 2014.

Centara Grand at CentralWorld was named one of the ‘Top 25 Conference Hotels’ in Asia and ‘Top 25 Business Hotels’ in Asia. Centara Grand Beach Resort & Villas Hua Hin was voted one of the ‘Top 25 Spa Hotels and Resorts’ in Asia. There were also two awards for the Centara Grand Beach Resort Samui.

Also pictured, from left to right, are Nisara Khamphong, PR Manager of Centara Grand & Bangkok Convention Centre at CentralWorld; Kanokros Sakdanares, corporate Director of Marketing Communications of Cen-

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tara Hotels & Resorts; John Kendes, Resident Manager of Centara Grand & Bangkok Convention Centre at

CentralWorld, and Tara Hanrahan, corporate Director of Spa Operations at Centara Hotels & Resorts.

Member News

Polo funds aid elephant centre

A

nantara’s annual King’s Cup elephant polo tournament, held in Bangkok for the first time, attracted 16 teams and featured 50 street elephants. The tournament was introduced to Thailand in 2001

by Anantara Hotels, Resorts & Spas, raising funds for projects that better the lives of Thailand’s elephant population.

Plans on how to allocate fund raised from this year’s tournament are being finalised but will include an extension of the Thai Elephant Therapy Project undertaken in conjunction with Chiang Mai University Department of Occupational Therapy. There are also plans to

build an elephant hospital in Krabi and to erect a gantry that will assist

lame elephants at the Thai Elephant Conservation Centre.

Knight Frank Thailand has been appointed sole sales and marketing agent for The Stage – a new condominium project in the Taopoon Interchange area of Bangkok. Pictured at the contract signing ceremony are, from left to right: Patraravadee Roywirat; Kobku Suthisa-ard; Natthaporn Klanruangsang and Sakulthorn Juangroongruangkit – Managing Director of Real Asset Development Company Limited; Phanom Kanjanathiemthao - Managing Director, Knight Frank Chartered (Thailand); Frank Khan and Potjaman Vorakitpokathorn. The project has a total value in excess of 2.4 billion Baht.

This year’s Bangkok Patana School fun run attracted a record number of entries. More than 1,000 participants ran, jogged and walked through the grounds of Siam park.

Participants had a choice of three courses over distances of nine, five and 1.3 kilometres.

Many of those registered were from the Bangkok Patana community of students, staff and parents but the organisers also welcomed participants from five other international schools.

A new system this year meant that runners and walkers over the nine and five kilometer courses were ‘chip timed’. Proceeds from this annual event will be donated to Habitat for Humanity, Interact and the Smile Club.

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Make a date for Ploenchit fair

By Carolyn Tarrant

T

he British Community’s annual fund-raising blockbuster event for Thai charities will be held again this year on Saturday 29th November.

ries and cosmetics. When exhaustion overtakes after the shopping, you can leave your purchases with Left Luggage and maybe have a foot massage before heading to the stage area for the entertainment programme from lunch-time.

Ploenchit Fair, arguably the largest such event in Asia, is a traditional day for all the family and has been one of the biggest events in Bangkok’s social calendar since it was first held at the British Embassy in 1956.

Everybody goes to the Ploenchit Fair – there is something for all – and with thousands of prizes to be won you can go home rich in the knowledge that every baht you spend will go towards those less fortunate.

Our Cuisine

For Dads

For Kids Once again we will have the alltime favourites: Bangkok Hospital’s Hands spin boats, Transpo’s giant waveslide, shooting gallery, water roller ball, the happy train and the bungy as well as many games stalls, colouring competition, clown Eckie and our Ploenchit clown. Bumrungrad’s Father Christmas will be paying an early visit to the Fair.

All the usual old favourites are confirmed: Coconut Shy, Darts, Standard Chartered Bank’s Water Splash and Golf to name but a few and not to mention whisky galore to be won on the Bangkok Banger’s Bottle stall. Nestle’s Pirate’s Treasure Island will be full of great prizes and Castrol BP Speed 2 has games for all the family. The British Chamber will be manning the Grand Raffle which this year has 80 top prizes to be won - including tickets to London.

For Mums The Petticoat Lane bazaar, some 50 shopping outlets along with our usual Charity stalls selling their wares, offer a vast array of different products for all your Christmas gifts and needs – services, handicrafts and ‘bits of nonsense’. Tesco return with their ‘Finest’ range and Boots, our favourite High Street store, will have their range of tempting toilet-

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This year we have a variety of tempting foods – Fish & Chips, Masala Art, Sunrise Tacos, Tenderloins and Bistro 33 – all sorts of pasta, hot dogs, hamburgers, pizzas and steak sandwiches grilled to your taste and Olive-Greek’s Mediterranean to ensure a range of foods to sate your appetite.

Krispy Kremes, ice cream and fresh fruit drinks from Rocket Coffee B will be in the grounds.

Our ‘Refreshments’ Tenderloins will provide premium beers and connoisseur wines; Paulaner will offer ice cold lager; Chang Beer, Thailand’s own, will be pulling the pints and The Londoner Brew Pub will return to the Fair with their cocktail specials.

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Dataconsult

Chamber Events

Global Competitiveness Index 2014

more than wishful plans to achieve the desired results.

By the Numbers

The World Economic Forum recently produced the 2014 / 2015 edition of the World Competitiveness Index, rating 144 countries by a range of factors. Overall, Thailand ranks at 31. In individual factors, Thailand ranks within the top 40 countries, but is weaker in innovation. In specific factors. Thailand rates relatively poorly in institutional factors especially in view of the high level of corruption.

Thailand also performs poorly in labour market efficiency, while in education, although not well-placed overall, performance appears relatively better than most other regional countries. In just about everything, Singapore and Malaysia are well ahead of all other regional countries, with China moving steadily upwards.

World Competitiveness Index 2014

Chris Bruton Director, Dataconsult Ltd.

T

hailand’s competitiveness within the upcoming ASEAN Economic Community is an increasingly significant topic as the day of official inauguration relentlessly approaches. By most accounts, the region as a whole is not ready for AEC, and Thailand is one of the less ready members among the major regional partners.

A number of recent surveys have highlighted this lack of readiness, and add urgency to the need to get moving. Hopefully the new government will carry out its promised reforms, but it will take

The Institute of Management Development in Switzerland produces an annual Competitiveness Index, ranking 60 countries in respect of their Competitiveness, with an overall ranking, assessment of the general country image for business promotion, economic performance, business efficiency and infrastructure. Thailand ranks at 29 out of 60, but has slipped from 27 in 2013.

The great weakness appears to be in infrastructure, whereas economic performance was rated relatively strongly, perhaps surprising in view of recent performance.

It must be stressed that most of these surveys measure perceptions rather than realities. Singapore manages its image with professional skill, typically rating more highly than perhaps is justified. If Thailand could tailor behavior to meet international rather than domestic expectations, then surely its ranking would soar upwards, with real achievements also improving.

Anti-Money laundering Index 2014 The Basel Institute on Governance produces its annual Anti-Money laundering Index, rating 162 countries worldwide for their anti-money laundering performance. Thailand, at 114, achieves a poor performance but better than the CLMV countries.

Table 1: IMD World Competitiveness Index Overall

(Ranking among 60 countries)

2014

2013

Image for business promotion

Economic Performance

Govt efficiency

Business efficiency

Infrastructure

Singapore

3

5

1

6

4

7

10

Malaysia

12

15

15

9

15

5

25

China

23

21

33

5

34

28

26

Country

Thailand

29

27

28

12

28

25

48

Indonesia

37

39

29

39

25

22

54

Philippines

42

38

38

37

40

27

59

India

44

40

32

21

47

34

57

Source: Institute of Management Development: World Competitiveness Ranking 2014

Table 2: Anti-Money Laundering Index: 2014 (Ranking among 162 countries) Country

Rank no.

Score Range

Singapore

36

4.96

Malaysia

61

5.41

Singapore

(Ranking among 144 countries)

Overall Score Country

Key elements 2014

2014

2013

2012

2011

Basics

Efficiency

Innovation

2

2

2

2

1

2

11

India

75

5.64

Malaysia

20

24

25

21

23

24

17

Brunei

81

5.84

China

28

29

29

26

28

30

33

China

93

6.06

Thailand

31

37

38

39

40

39

54

34

38

50

46

46

46

30

52

59

69

75

66

58

48

Indonesia

99

6.25

Indonesia

Philippines

107

6.39

Philippines

Thailand

114

6.53

Vietnam

68

70

75

65

79

74

98

71

60

59

56

92

61

52

93

81

-

-

98

107

80

Vietnam

125

6.76

India

Laos

144

7.45

Laos

Myanmar

153

7.89

Cambodia

95

88

85

97

103

100

116

8.39

Myanmar

134

139

-

-

132

134

139

Cambodia

160

Source: The Basel Institute on Governance

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Table 3: Global Competitiveness Index 2014/2015

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Source: World Economic Forum 2014

Table 4: Global Competitiveness Index 2014 / 2015: Institutions Country

Overall

Public Fund Diversion

Trust in Politicians

Public Official Decision Favoritism

Govt Spending Waste

Policy Transparency

Crime Cost for Business

Organised Crime

Police Reliability

Company ethics

Bribe Payments

Singapore Malaysia China Indonesia Laos Philippines India Thailand Vietnam Cambodia Myanmar

3 20 47 53 63 67 70 84 92 119 136

6 26 45 63 59 78 60 108 76 113 122

1 17 26 37 29 89 50 129 49 91 72

3 14 22 33 38 66 49 88 74 102 127

3 8 24 29 25 73 49 115 83 110 78

1 15 33 52 113 85 64 100 116 130 136

4 47 52 80 43 77 98 84 64 91 125

4 51 70 102 71 69 114 89 78 86 136

8 35 61 67 64 101 88 113 99 123 126

3 23 55 47 65 49 88 92 109 89 133

3 37 66 87 96 86 93 84 109 129 139

Source: World Economic Forum 2014

Table 5: Global Competitiveness Index 2014/2015: Infrastructure Country

Rank

Roads

Rail

Port

Air

Airline seats

Electric

Telephone mobile

Telephone fixed

Overall quality

Singapore Malaysia China Thailand Indonesia Vietnam India Philippines Laos Cambodia Myanmar

2 28 46 48 56 81 87 91 94 107 137

6 19 49 50 72 104 76 87 68 93 134

12 17 74 41 52 27 80 98 94

2 19 53 54 77 88 76 101 129 97 125

1 19 58 37 64 87 71 108 82 106 137

19 22 2 15 14 30 12 25 123 83 86

6 39 56 58 84 88 103 87 64 110 117

17 30 108 34 54 42 121 86 130 39 144

31 73 59 91 71 86 118 113 87 116 125

5 20 64 76 72 112 90 95 66 109 138

Source: World Economic Forum 2014

Table 6: Global Competitiveness Index 2014/2015 : Education and Training Country

Overall Rank

Secondary education

Tertiary education

Education quality

Maths / science quality

Management school quality

School internet access

R&D services

Staff training

Singapore Malaysia Thailand Indonesia Philippines China India Vietnam Laos Cambodia Myanmar

2 46 59 61 64 65 93 96 110 123 135

16 108 79 92 89 72 106 98 124 125 122

10 72 54 77 82 85 87 88 99 101 103

4 10 87 32 29 52 45 94 60 101 129

1 16 81 36 70 56 67 82 83 111 129

6 25 81 49 40 85 56 119 79 123 139

6 34 61 48 66 38 87 47 88 100 137

12 13 69 50 49 58 64 118 83 104 135

7 4 37 24 27 46 77 85 45 82 138

Source: World Economic Forum 2014

Table 7: Global Competitiveness Index 2014/2015 : Innovation Country

Overall Ranking

Innovation capacity

Research institution quality

Company R&D Spending

R&D university company collaboration

Govt advanced technology procurement

Scientist engineer availability

Patent applications

Singapore Malaysia Indonesia China India Philippines Thailand Laos Vietnam Cambodia Myanmar

9 21 31 32 49 52 67 84 87 116 138

18 13 22 40 48 30 70 71 95 101 137

11 20 41 39 52 75 61 86 96 118 136

10 9 24 23 30 42 56 51 63 79 140

5 12 30 32 50 55 46 76 92 115 138

4 3 13 10 61 53 114 51 34 104 139

16 9 31 43 45 71 54 127 87 123 131

13 32 106 34 61 86 67 115 93 124 124

Source: World Economic Forum 2014

Table 8: Global Competitiveness Index 2014 / 2015: Labour Market Efficiency Country

Overall Ranking

Labour Employer Relations

Wage Deter mination Flexibility

Hiring / Firing Practices

Redun dancy Costs

Tax Disincentive for Work

Pay and Produc tivity

Reliance on Professional Management

Retain Talent

Attract Talent

Women in Labour Force

Singapore Malaysia Laos China Vietnam Thailand Myanmar Philippines Indonesia India

2 19 34 37 49 66 72 91 110 112

2 14 21 58 79 32 115 29 46 90

7 33 22 84 60 116 36 86 114 113

3 9 46 15 65 23 51 104 32 47

6 111 136 120 112 133 94 124 139 75

4 8 32 36 86 60 56 47 31 45

4 2 8 15 23 50 79 27 30 69

6 15 65 43 117 51 137 29 28 77

8 9 34 31 84 33 144 60 32 42

2 12 73 27 74 36 113 82 25 46

76 119 5 60 23 67 19 106 112 133

Source: World Economic Forum 2014

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Chamber Events BCCT Pub Night

BCCT Boardroom Briefing

5 August 2014

7 August 2014

On Tuesday 5th August the Bistro 33 kindly hosted the BCCT Pub Night.

BCCT hosted ICT Briefing on The Cloud — Part 2 on Thursday 7th AugustAugust with guest speaker Shane Tor (left) - CEO of Gummy Bear Recruitment Company, and Andrew McBean, BCCT ICT Chairman/Grant Thornton.

From left: - Chris Thatcher, BCCT Vice Chairman - Barry Shea, Bistro 33 Owner - Simon Matthews, BCCT Chairman/ManpowerGroup Thailand

- Another successful Boardroom Briefing at BCCT.

Lunch with Dr. Narongchai Akrasanee

BCCT Boardroom Briefing

14 August 2014

19 August 2014

On Thursday 14th August Dr. Narongchai Akrasanee (pictured), a former Minister of Commerce and Special Adviser to the NCPO was guest speaker at a Joint Lunch organised

by AMCHAM on “What difference does a coup make: an economic perspective?”

On Tuesday 19th August, Graham Catterwell (centre) presented a detailed update on the political situation in Thailand at a BCCT Boardroom Briefing.

- Dr Narongchai’s speech was well received.

From left: - Charly Madan, BCCT Director/The Royal Bank of Scotland

Thank you to our sponsors and partners.

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- Graham Catterwell, speaker - Chris Thatcher, BCCT Vice Chairman

Chamber Events

BCCT Half-Day Workshop

3rd Thursday Networking Evening

21 August 2014

21 August 2014

BCCT’s Management Development Group (MDG) organised a Half-Day Workshop on Performance Management on Thursday 21st August, conducted by Chachanunn Nimvibulsom (pictured) from HSBC.

On Thursday 21st August The Royal Orchid Sheraton kindly sponsored the T3 networking evening at Sambal Bar & Grill on the bank of the Chao Phraya river.

- Thanks to Khun Chachanunn from HSBC.

From left: - Rituraj Mohan, BCCT Director/Boots (Retail) Thailand - Keith Hardie, Royal Orchid Sheraton General Manager - Simon Matthews, BCCT Chairman/ManpowerGroup Thailand

GTCC Joint Chambers Lunch

Greg accepts Ice Bucket Challenge

22 August 2014

31 August 2014

On Friday 22nd August Khun Vikrom Kromadit (pictured), CEO of Amata was guest speaker at a Joint Lunch organised

by GTCC on “Back to the Future of ASEAN 2015”

BCCT Executive Director Greg Watkins accepted the Ice Bucket Challenge to promote awareness of the disease amyotrophic lateral sclerosis (ALS). He then challenged Adam Zilber, Hotel Manager at the Grand Hyatt Erawan (second left) and Yves Mudry, GM of the Sofitel So (Accor Group).

- Khun Vikrom outlined the challenges and opportunities in the ASEAN economic Community.

- A chilling challenge for charity.

Thank you to our sponsors and partners.

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Chamber Events

TBCA Mini Marathon

Joint Chambers Luncheon

31 August 2014

2 September 2014

TBCA Chairman and BCCT Executive Director Greg Watkins presents a thank you plaque to major sponsor the Accor Group represented by Yves Mudry, General Manager of the Sofitel So. The Accor Group entered more than 130 staff in the Thailand Business Coalition on AIDS (TBCA) Mini Marathon.

On Tuesday 2nd September Khun Pichai Chuensuksawadi, Editor-in-Chief of Bangkok Post, was guest speaker at the special BCCT/ AMCHAM/AustCham Luncheon.

- Greg Watkins (left) makes the presentation to Yves Mudry.

- Khun Pichai receives a thank you gift from BCCT Vice Chairman Chris Thatcher.

BCCT-MBMG Insights

BCCT/AustCham P&I Evening

3 September 2014

4 September 2014

Scott Campbell (right), Managing Director and Chief Investment Officer of MitonOptimal, was guest speaker for the second BCCT-MBMG Insights presentation.

On Thursday 4th September BCCT hosted Joint BCCT/ AustCham P&I Evening Presentation (Update on Myanmar).

From left - Stephen Frost, BCCT Director - Paul Gambles, MBMG Group - Scott Campbell, MitonOptimal

From left: - Gil Amilbangsa , NS Bluescope - Tony Picon , Colliers International Myanmar /President of the British

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Thank you to our sponsors and partners.

Chamber of Commerce in Myanmar - Ali Adam , BCCT P&I Chairman/Arcadia(Thailand) - John Anderson , Meinhardt Myanmar/Thailand

Chamber Events

Western Seaboard Networking

Visit to centenary SCG building

5 September 2014

10 September 2014

On Friday 5th September BCCT organised the first Western Seaboard Networking in Hua Hin.

Siam Cement Group (SCG) welcomed BCCT members on Wednesday 10th September to visit their centenary SCG building.

From left: - Martin Raich, Sheraton Hua Hin General Manager - Simon Matthews, BCCT Chairman/ManpowerGroup Thailand - John Walker and Anthony Kelly of Hot Property - Kowit Somwaiya, LawPlus

From left: - Nittha Pusachewa and Thanissara Pedyod of SCG - Thana Thiramanus, BCCT Health Safety & Environment Chairman / PCS - Thanasak Kulrattanarak, Starbucks Coffee (Thailand)

Joint PWG Networking

BCCT One-Day Workshop

10 September 2014

18 September 2014

KIS kindly sponsored the Joint Professional Women’s Group Networking hosted by TCCC.

BCCT’s Management Development Group organised a OneDay Workshop on How to Win Cooperation and Influence Others on Thursday 18th September conducted by Thanawan Metmunkul (first right on front row), Manager of Learning Academy at Standard Chartered Bank.

- Thanks to KIS for sponsoring this event.

- Plenty of cooperation at the BCCT workshop.

Thank you to our sponsors and partners.

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Chamber Events

3rd Thursday Networking Evening

Joint Chambers ESB Networking

18 September 2014

19 September 2014

Aloft Bangkok-Sukhumvit 11 kindly hosted and sponsored the T3 at EX:CHANGE room on Thursday 18th September.

BCCT Chairman Simon Matthews (3rd from right) represented BCCT at the Joint Chambers Eastern Seaboard Networking Evening hosted by AMCHAM on Friday 19th September.

From left: - Justin Malcolm, Aloft Bangkok-Sukhumvit 11 General Manager - Simon Matthews, BCCT Chairman/ManpowerGroup Thailand

- The event on the Eastern Seaboard was well attended.

BCCT Boardroom Briefing

Site Visit to Seagate Korat

23 September 2014

24 September 2014

Doungporn Prasertsomsuk (pictured), Counsel at Clifford Chance, presented at the BCCT Boardroom Briefing on Infrastructure Funds on Tuesday 23rd September.

On September 24, the ICT Committee and BCCT members visited Seagate Manufacturing in Korat. Pictured are the host from Seagate Technology (Thailand) Ltd., committee leader and attendees.

- Khun Doungporn makes her presentation.

- Thanks to Seagate Technology for the very warm welcome.

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Thank you to our sponsors and partners.

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Chamber Events

BCCT Luncheon – Cambodia Update

BCCT Luncheon-IFC

26 September 2014

26 September 2014

Members and non-members joined the BCCT Luncheon on Cambodia Update on Friday 26th September. Pictured from left:

On 30 September Allen & Overy kindly sponsored the BCCT Lunch on IFC and its role in Thailand and Myanmar.

From left: - Darren Conquest of BritCham Cambodia - Paul Glew of BritCham Cambodia - Chris Thatcher, BCCT Vice Chairman

From left: - Stephen Jaggs of Allen & Overy - Adel Meer (guest speaker) - Greg Watkins, BCCT Executive Director

Joint Chambers Luncheon - NESDB 1 October 2014 On Thursday 2nd October Khun Arkhom Termpittayapaisith, Secretary General of National Economic and Social Development Board (NESDB), was guest speaker at a BCCT/AustCham/AMCHAM/TCCC/SATCC Lunch on The 11th National Economic and Social Development Five-Year Plan (Plan 11) at The Sukhothai Bangkok.

From Left: - Graham Berry, The Royal Bank of Scotland - Simon Matthews, BCCT Chairman/ ManpowerGroup Thailand

- Arkhom Termpittayapaisith, NESDB - Leigh Scott-Kemmis, AustCham Chairman - Somboon Krobteeranon, AMCHAM Board of Governor - Danupong Panitpichet, SATCC Director

Khun Arkhom’s presentation was very well received.

Thank you to our sponsors and partners.

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83

Comings and Goings The British Chamber of Commerce Thailand welcomes the following new members: AAM (Thailand) Co., Ltd. 99/127, Monchaya 2 Saimai Road 49 Khwaeng Sai Mai Khet Sai Mai, Bangkok 10220 T: +66 (0) 2536-0910 M: +66 (0) 81 8132402 F: +66 (0) 2536-0913 Website: www.eurekaheatrecovery.co.uk Email: aamtsurvey@yahoo.com, eurekaheatrecovery.thailand@gmail.com

Representative: Mr. Dennis Rose, Managing Director

Amari Phuket 2 Muen-ngern Road Kathu District Phuket 83150 T: +66 (0) 7634-0106-14 F: +66 (0) 7634-0115 Website: www.amari.com/phuket Email: phuket@amari.com

Representative: Mr. Pierre-Andre Pelletier, Vice President & Area General Manager, South Thailand

Antares Group 10th Floor, RSU Tower 571 Sukhumvit Road (Soi 31), Klongtan-Nua, Wattana Bangkok 10110 T: +66 (0) 2259-6925 F: +66 (0) 2662-3416 Website: www.bangkokbase.com Email: michael@bangkokbase.com

Representative: Mr. Michael Berger, General Manager Mr. Alexander Polgar, Managing Director Business Activity: Legal Services, Accounting, and Business Services

The Bangchak Petroleum Public Company Limited 10th Floor, Building A, Energy Complex, 555/1, Vibhavadi Rangsit Road, Chatuchak, Bangkok 10900 T: +66 (0) 2140-8999 F: +66 (0) 2140-8911 Website: www.bangchak.co.th/

Berger Paints (Thailand) Ltd. 83 Moo 4, Poochoasamingprai Road Samrong Klang, Prapradaeng Samutprakarn 10130 T: +66 (0) 2754-2004-8 F: +66 (0) 2754-2084 Email: vbsingh@bergerthailand.com Representative: Mr. V B Singh, Managing Director Business Activity: Manufacturing Bravothai Lifestyles Co., Ltd. 31/20 Moo. 6, Pong Banglamung, Chonburi 20150 Website: www.siamdevelopments.com Email: info@siamdevelopments.com

Representative: Mr. Terrence Allen Collins, Managing Director

Cape Dara Resort Pattaya 256 Dara Beach, Soi 20 Pattaya-Naklua Road Pattaya 20150 T: +66 (0) 3893-3888 F: +66 (0) 3893-3800 Website: www.capedarapattaya.com Email: sales@capedarapattaya.com

Business Activity: Hospitality, Hotel and Restaurant Representative: Mr. Vichien Usanachote, President Business Activity: Chemical / Petroleum, Retail / Wholesale / Sourcing

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Representative: Mr. Sittidej Rochanavibhata, General Manager Mr. Tanin Suphavittayakorn, Executive Assistant Manager Business Activity: Hotel

Complete Capital Solutions Limited Third Floor, 1 Bell Court, Guildford, Surrey GU1 4LY, United Kingdom T: +44 1483-330-065 Website: www.completecapitalsolutions.com Email: ms@completecapitalsolutions.com

Representative: Mr. Mark Sharman, Director Mr. Jon Scott, Managing Director Business Activity: Property Consultants Creatus Corporation Ltd. 2534/107-9 Raj-Uthit 1 Rd., Bangklo, Bangkholaem, Bangkok 10120 T: +66 (0) 2295-2951-74 F: +66 (0) 2295-5102-03 Website: http://www.creatuscorp.com Email: secretary@creatuscorp.com Representative: Mr. Vanchai Jiratritarn, President

Representative: Mr. Lars Ydmark, Managing Director Mrs. Lillian Woon Carpenter, General Manager Business Activity: Resort, Restaurant, Spa Travel and Tourism Go Holiday Tour 446/9, Soi 20 Mithuna, Pracharatbampen, Huaykwang, Bangkok 10310 T: +66 (0) 2277-6000 F: +66 (0) 2277-3399 Website: www.goholidaytour.com Email: jiraporn@go365travel.com Representative: Mr. Thanapol Cheewarattanaporn Ms. Jiraporn Supprasom

Hughes Krupica Consulting Co., Ltd. 23/123-5 Boat Lagoon, Moo 2 Thekprassatri Road, Kohkaew, Muang Phuket 83000 T: +66 (0) 76 238 473-4 Website: www.hugheskrupica.com

Business Activity: Computer / Technology Representative: Mr. Desmond Hughes, Senior Partner DEWA PHUKET 65 Moo 1, Tambon Sakoo, Amphur Thalang, Phuket 83110 T: +66 (0) 7637-2300 F: +66 (0) 7637-2399 Website: www.dewaphuketresort.com Email: reservation@dewaphuket.com

Business Activity: Legal Services

LAMP Services Limited Office No. 39, 6th Floor Q House Phloen Chit 598 Phloen Chit Road, Lumpini Pathumwan, Bangkok 10330 Thailand T: +66 (0) 2663-7808 F: +66 (0) 2663-7880 Website: www.lampinsurance.com

Representative: Mr. Jerome Newman, General Manager SE Asia Business Activity: Health Insurance, Medical / Healthcare, and Healthcare Services

Lions & Tigers Limited Victoria House 26 Queen Victoria Street Reading RG1 1TG United Kingdom T: +44 792517 6329 Website: www.lionsandtigers.eu Email: contact@lionsandtigers.eu , graham@lionsandtigers.eu

Representative: Mr. Graham Davies, Director Business Activity: Business Services, Computer / Technology, and Recruitment

London Office Asia Co., Ltd. 434/042 Viewtalay 2A Thappraya Road, Jomtien/Pattaya Chonburi 20150 T: +66 (0) 3825-1608 Website: www.londonofficeasia.com

Representative: Mr. Alistair Macpherson, Director Business Activity: Business Services, Telecommunications

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Mint Cosmetics UK LTD Suite 1/18 Park Lane House 47 Broad Street Glasgow G40 2QW United Kingdom T: +44 800 0124 153 Website: www.mintcosmetics.com Representative: Mr. Allan Morris, Owner

Mode Sathorn Hotel 144 North Sathorn Road, Silom, Bangrak, Bangkok 10500 T: +66 (0) 2623-4555 F: +66 (0) 2623-4666 Website: www.modesathorn.com Email: sales@modesathorn.com

Representative: Mr. Roland Aung, Hotel Manager Mr. Thawee Kuhasemrat, Director of Sales & Marketing Business Activity: Hotel

Oat Services Ltd. The White House 226 Bassett Avenue Southampton SO16 7FU United Kingdom T: +44 2380 767228 F: +44 2380 768851 Website: http://oat.co.uk/ or http://oatcosmetics.com/ Email: cm@oat.co.uk or ar@oat.co.uk

Representative: Mr. Cark Maunsell, Managing Director Mr. Angus Robertson, Business Development Manager Business Activity: Cosmetic, Medical / Healthcare, Biotechnology, Food & Beverage

Organix Brands Limited The Greenhouse 120-122 Commercial Road Bournemouth Dorset BH2 5LT United Kingdom Website: www.organix.com/

Representative: Ms. Katie Grennall, Senior International Account Manager Business Activity: Food & Beverage

Proventus UK Ltd. Unit 3 , 5 Westland Square Leeds LS11 5SS United Kingdom T: +44 113 2705013 F: +44 113 2771392 Website: www.proventusuk.com Email: info@proventusuk.com Representative: Mr. Ranjit Panesar, Managing Director Business Activity: Manufacturing, Specialist Lubricants

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The Siam Cement Public Company Limited 1 Siam Cement Road, Bangsue, Bangkok 10800 T: +66 (0) 2586-5983-4 F: +66 (0) 2586-5593 Website: www.scg.co.th

Representative: Mr. Chaovalit Ekabut, VP-Finance & Investment, CFO of SCG Mr. Bunn Kasemsap, MD of SCG Trading Co., Ltd. Business Activity: Industrial Conglomerates, Retail / Wholesale / Sourcing, Sales / Distribution / Logistics Siam Printing Solutions Co., Ltd. 13 Pacific Apartment, Room 106 Soi Napasap 2, Sukhumvit 36 Road, Klongton, Klongtoey Bangkok 10110 T: +66 (0) 2259-0898 F: +66 (0) 2260-3688 Website: www.siamprintingsolutions.com Email: sales@siamprintingsolutions.com Representative: Mr. Martin Abel, Sales Director

Syntor Fine Chemicals Ltd. 11, Boleyn Court, Manor Park, Runcorn, Cheshire WA7 1SR United Kingdom T: + 44 01928 579865 Website: www.syntor.co.uk Representative: Mr. Simon Knowles, Managing Director

Thai Children’s Trust 124 North End House Fitzjames Avenue London W14 0RZ, United Kingdom T: +44 207 602 6203 F: +44 207 603 6468 Website: www.thaichildrenstrust.org.uk Email: AScadding@thaichildrenstrust. org.uk

8. Logistics Bureau (Asia) Ltd. 9. Method International 10. Oxford Business Group 11. Reflex Solutions (Thailand) Co., Ltd. 12. Robert J Griffiths Ltd 13. Rock n’ Rolla Corporation Co., Ltd. 14. Siam Gazette Co.,Ltd. (Bangkok Trader) 15. Sunsail (Thailand) Co Ltd 16. Swissotel Le Concorde Bangkok 17. Systra MVA (Thailand) Ltd 18. Waste Management Siam Ltd 19. World of Wine Co.,Ltd., The New Company Representatives:

Representative: Mr. Andrew Scadding, Chief Executive Ms. Natalia Baloghova, Regular Giving Fundraiser Business Activity: Charity / Non-Profit

White Ball Co., Ltd. Benz Mall 3 Floor. Sukhumvit 55 Thonglor 18, Klongteoy Nua, Wattana Bangkok 10110 T: +66 (0) 2714-9777 F: +66 (0) 2714-0776 Website: www.whiteballacademy.com Email: info@whiteballacademy.com

Representative: Mr. Stephane Taib, Managing Partner Ms. Sumitra Chumchuen, Director of Sales and Operation Resignations & Cancellations: 1.

2.

3.

4.

British School of Bangkok, The ECC (Thailand) Euro Creations Co., Ltd. Generali Life Assurance (Thailand) Co.,Ltd. 5. Hemingway’s Bar and Restaurant Bangkok 6. KLBD Kosher Certification 7. Liverpool Football Club

1. Aberdeen Asset Management Company Limited, changed from Ms. Sujaree Junsawang, to Mr. Korawut Leenabanchong 2. Amari Watergate Bangkok, changed from Mr. Pierre Andre Pelletier, to Mr. David Cumming 3. Bangkok Hospital Pattaya, changed from Ms. Juthaporn Huyakorn, to Dr. Pichit Kangwolkij 4. Banyan Tree Bangkok, changed from Mr. Andrew Federick Langston, to Ms. Nopparat Aumpa 5. Bromsgrove International School Thailand, changed from Mr. Steve Challoner, to Dr. Dan Moore 6. Chateau de Bangkok, changed from Mr. Andres Rubio, to Mr. Richard Murphy 7. Crown Agents, changed from Mr. Mike Byfield, to Mr. Tristan Burton 8. Gaysorn Land Asset Management Co., Ltd. , changed from Mr. David Tibbott, to Mr. Edward Michael Barrow 9. Holiday Inn Pattaya, changed from Mr. Garth Solly, to Ms. Kate Gerits 10. Regents International School Pattaya, changed from Mr. Mike Walton, to Mr. Iain Blaikie 11. Regent’s School (The), changed from Mr. Martin H Kneath, to Mr. Peter A. Hogan 12. Rolls-Royce (Thailand) Ltd., changed from Mr Ewen McDonald, to Mr. Hugh Vanijprabha 13. Sofitel So Bangkok., changed from Mr. Gilles Cretallaz, to Mr. Yves Mudry 14. St. Stephen’s International School, changed from Mr. Chris Whitfield, to Mr. John Rolfe

15. Tilleke & Gibbins International Ltd., changed from Mr. James Evans, to Mr. Aaron Le Marquer 16. Wallem Shipping (Thailand) Ltd., changed from Mr. Dickson Chin, to Mr. Bill Wilcox Changes of company name: 1. Sindicatum Carbon Capital (Thailand) Limited, changed to Sindicatum Sustainable Resources (Thailand) Limited Members with new addresses: 1.

2.

3.

4.

5.

Anglo-Thai Legal Co., Ltd. 133 Sukhumvit 57, Klong Ton Nua, Wattana, Bangkok 10110 T: +66 (0) 2714-2968 Destination Spa Management Thai Leisure International Co., Ltd. 126/9 Soi Sukhumvit 63 (Ekkamai), Klongtan Nua, Wattana, Bangkok 10110 T: +66 (0) 2714-1189 Intertek Testing Services (Thailand) Ltd. 1285/5 Prachachuen Road, Wong Sawang, Bangsue Bangkok 10800 Robert Walters Recruitment (Thailand) Ltd. Q House Lumpini, 12th Floor, Unit 1201, 1 South Sathorn Road, Thungmahamek, Sathorn Bangkok 10120 Smart World Asia Co., Ltd. ZEN @CentralWorld, Level 12, 4, 4/5 Rajdamri Road, Pathumwan Bangkok 10330

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FINAL WORD

Saddled with bureaucracy

R

esidents in the peaceful village of Osbaldwick, close to the city of York, are seeing far too little of their neighbourhood bobby. These days it’s not so much a ‘bobby on the beat’ as a Police Community Support Officer prowling the High Streets of Britain dressed resplendently in a hi-viz jacket whilst seeking out hardened criminals that defy ludicrous local by-laws and nonsensical parking restrictions.

They don’t carry warrant cards but they can, apparently, attempt to make a ‘citizens arrest’ for a range of indictable offences including arson, criminal damage, burglary and theft. Travel wardens with attitude.

Back to Osbaldwick, mentioned in the Domesday Book and once served by the Derwent Valley Light Railway when travellers sought sustenance at the Derwent Arms (pictured right). PCSO James Gibson is apparently walking between the various villages on his patrol, having been denied the use of a bicycle because he has yet to pass his Cycling Proficiency Test.

Older readers may remember this stern examination which, if I recall

accurately, involved a quick circuit of the junior school playground interrupted by some dodgy hand signals and an emergency stop. There may even have been a couple of tricky questions based on the Highway Code.

In the late 1950s in my Wiltshire

Home Office out of tune I hear that a children’s choir comprising Ugandan orphans has been refused entry to the United Kingdom. The choir has been invited to sing at a fund-raising festival in Norwich.

Apparently the UK immigration authorities rejected the visa applications because the choir members had failed to provide letters of consent from their parents. You couldn’t make it up.

market town the sight of PC Bill Bryant on his black bike was a reassuring image to residents and a proven deterrent to the criminal classes. criminal classes. And he didn’t wear a hi-viz vest. A police spokesman in Yorkshire said that to claim PCSO Gibson had not passed his cycling proficiency was ‘trivialising the matter’. “He simply has not been trained to level three of national standards which involves negotiating roundabouts and using bikes if you have to rush to a job and go down steps.”

I learn that the Cycling Proficiency Test, introduced by the Royal Society for the Prevention of Accidents in 1947, has been superceded by the National Standards for Cycle Training – branded as Bikeability.

Of course it has.

The views and opinions expressed on this page by Editor Dale Lawrence are entirely personal and do not reflect official BCCT policy.

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