BCCT Link Magazine - Issue 1 2015

Magazine of the British Chamber of Commerce Thailand Issue 1 2015

Medical Services

Contents BCCT

Board of Directors 2015 CHAIRMAN Simon Matthews ManpowerGroup Thailand T: 02 2634 7273 matthews@manpower.th.com

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VICE CHAIRMEN Viriya (Boyd) Chongphaisal GlaxoSmithKline (Thailand) Limited T: 02 659 3000 viriya.x.chongphaisal@gsk.com Simon Landy Colliers International Thailand T: 02 656 7000 simon.landy@colliers.com Christopher Thatcher Anglo-Thai Legal Co., Ltd. T: 081 803 7377 christhatcher1@gmail.com DIRECTORS Ali Adam Arcadia (Thailand) Co., Ltd. T: 02 108 1822 ali@arcadia-engineering.com

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Billy Chomsakorn British Airways PLC T: 001 80044 15906 billy.chomsakorn@ba.com John Christie Ek-Chai Distribution System Co., Ltd. T: 02 797 9000 john.christie@th.tesco.com David Cumming ONYX Hospitality Group (Amari Watergate Bangkok) T: 02 653 9000 david.cumming@amari.com Stephen Frost Bangkok International Associates Ltd T: 02 231 6201/6455 sfrost@bia.co.th Andrew McBean Grant Thornton T: 02 205 8222 Andrew.McBean@th.gt.com Tan Siew Meng HSBC T: 02 614 4000 siewmengtan@hsbc.com

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Panun Prachuabmoh The Shell Company of Thailand Ltd. T: 02 262 6000 panun.prachuabmoh@shell.com

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Hugh Vanijprabha Rolls-Royce (Thailand) Ltd. T: 02 263 0500 Hugh.Vanijprabha@Rolls-Royce.com

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Rituraj Mohan Boots Retail (Thailand) Ltd. T: 02 694 5991 ritu.mohan@bootsri.com

HONORARY TREASURER John Sim PKF Tax and Consulting Services (Thailand) Ltd. T: 02 108 1591-96 john.sim@pkf.com 2

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Healthy future for medical sector Bumrungrad selects IBM Watson as cancer care partner Getting help for shoulder muscle and tendon tears

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New hope for treatment of heart arrhythmia

Samitivej heralds medical breakthrough on genetic disorders Report from the Eastern Seaboard

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Thailand investment: Changes for the better

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Investing in UK property

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Importance of IT in early years

Contents Issue 1/2015 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 49

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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Member News

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Executive Director’s Message

30 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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Chairman’s Message

ASEAN IPR SME Helpdesk: Protecting R&D innovations in Thailand

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Helping the Needy: BCTFN gives vital support to Camillian Home Latkrabang

By the Numbers

67 Chamber events

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Comings and Goings

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Final Word

Chairman’s Message

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n this my first message of 2015 I would like to thank the Board for re-electing me as Chairman. I have said before, this is a huge honour and responsibility and I thank all those who have given me such tremendous support and encouragement over the past 12 months.

I would like to continue this year in three key areas: Advocacy. I want to build upon the progress made in 2014 and to continue to work closely with other foreign chambers of commerce, the European ASEAN Business Centre (EABC) and the Thailand Board of Trade in order to best represent BCCT members in seeking important and necessary changes to the key issues that face them. These issues include Work Permits and Visas as well as the liberalisation of the Foreign Business Act.

Simon Matthews

Sustaining Partners

Events. Chamber functions are the main touch-point for many members. Using the response received from the second annual members’ feedback session we will work on making improvements where necessary to our events. We will seek to achieve the best balance between informational/educational and fun events; between income-generating and free or subsidised events, and between Bangkok and provincial locations for BCCT events. We will also seek to strike that allimportant balance between quantity and quality.

UK Trade and Investment. We will continue to work closely with UKTI and the British Embassy in the drive to increase the number of UK companies exporting to and investing in Thailand through the Overseas Business Network initiative and introduce these companies to the wide range of services that our members may offer.

At the AGM in January 2015 a new Board of Directors was elected and I am pleased to welcome four new board directors Al Adam, Executive Director Arcadia (Thailand) Co Ltd, Billy Chomsakorn Commercial Manager British Airways Thailand, John Christie, Chief Executive Officer of Tesco Lotus and Hugh Vanijprabha Managing Director of Rolls-Royce (Thailand) Ltd. I also express my thanks to Mick Farley, Headmaster of Harrow International School Bangkok, who due to work commitments has had to resign from the Board.

His place is taken up by Panun Prachuabmoh, Chief Financial Officer of The Shell Company of Thailand. I am confident all our new directors will add vitality and fresh ideas to BCCT. I am pleased that Simon Landy, Chris Thatcher and Viriya (Boyd) Chongphaisal continue as Vice-Chairmen. The Board has appointed John Sim to serve as Honorary Treasurer.

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As I mentioned we are working closely with UKTI and I am pleased that the BCCT, in partnership with Central Food Retail, launched the ‘Taste of Britain 2015: Food is GREAT’ campaign in February to promote over 1,000 quality UK food and drink products across supermarket stores in Thailand. The campaign ran for four weeks across all Central Food Hall and Tops outlets nationwide.

The BCCT is also delighted to receive support from British Airways and the Landmark Hotel this year with sponsorship of air tickets and accommodation to London for the campaign’s lucky draw.

Finally, I hope that many of you were able to attend the BCCT Life & Style Garden Party in the delightful setting of the gardens of the British Ambassador’s residence in Wireless Road, Bangkok. Please remember to check our events calendar and I look forward to seeing you soon.

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Executive Director’s Message

M Greg Watkins

Airline Partner

Supporting Partners

uch has been written about the Overseas Business Network initiative (OBNi) with UK Trade and Investment (UKTI). A major requirement of the OBNi is that BCCT receives accreditation by British Chambers of Commerce (BCC) in the UK before being able to provide UKTI-funded chargeable business support to UK SMEs. BCC has accredited 52 regional chambers of commerce in UK. In fact BCCT was permitted to provide support to British companies while accreditation was taking place. Each specific section of accreditation is graded green, amber or red: green – meets the standard; amber does not fully meet the standard but there is a process and timeline to do so; and red – does not meet the standard.

Governance. The first part focuses on BCCT having a documented Business Management System (BMS) that defines its approach to undertaking business.

This includes a clear and workable strategy; mission statement; three-year rolling business plan; sustainable financial strategy; budget/management accounts to support the delivery of the business plan; memorandum and articles of association consistent with the BCC model; ethics policy/code of conduct; risk and issue management process; business continuity plan, and a complaints management process. The second part of the Governance section documents processes that drive continuous improvement such as allocating ownership and responsibility for each component of the BMS; periodic two-way communication with stakeholders; ensuring capability to deliver stated objectives/KPIs, and a periodic review of the contents of the BMS. Resources. This section covers having appropriate insurances; clear reporting lines, roles, job descriptions and KPIs for each position; a transparent recruitment process; an effective resource management process; evidence of effective working relationships between the board, staff and members; management of the chamber’s accounts in accordance with international accounting practice; third party relationships contracted in a transparent and ethical manner; management of strategic partnerships (e.g. with UKTI) such that each party understands the requirements and expectations of the partnership; appropriate information management systems, and an assets register with current value and a depreciation policy stated in the management accounts.

Services. This section is in three parts. Self-awareness and business intelligence sets standards to ensure that the Chamber has the means in place to fully understand: current membership levels, the structure and reasons for members joining/leaving; the local business environment; members’ needs; how services and performance are perceived by customers, and how to develop appropriate partnership arrangements for service provision. The second part is headed ‘service development’ and covers the development of a marketing and communications strategy to raise the chamber’s profile and the take-up of its services including house-style guidelines for stakeholder communications; a membership growth strategy; a clearly-priced and understood membership proposition; a clear service proposition; regular review of the marketing and communications strategy, and the capability to log and manage all requests for information and services. The final part covers service provision and defines the Market Promotion, Entry and Development services delivered under the OBNi.

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In February BCCT received notice that provisional accreditation had been awarded

by BCC’s Global Accreditation Board. There were no ‘red’ issues raised by the assessor and the dozen or so ‘amber’ issues have deadlines for completion from May to August this year. BCCT is therefore due to receive the BCC accreditation ‘kite-mark’ by the end of March 2015. The process of achieving accreditation was very labour intensive but of considerable value in terms of upgrading the chambers internal processes.

Many of the areas covered were already being undertaken but had either not been documented fully or not at all. A file of all the documents and processes listed in this message and more is available at the BCCT office for members to study. I would be happy to go through any aspects of accreditation with any member.

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Healthy future for medical sector Continued growth in medical tourism and the impending arrival of the ASEAN Economic Community suggests that there are exciting prospects in store for private hospitals in Thailand.

We asked experts at Bumrungrad International Hospital in Bangkok about the opportunities that lie ahead.

As the ASEAN region becomes more connected and its borders more relaxed, it is expected that there will be an increase in the number of patients from countries such as Myanmar, Laos and Cambodia taking advantage of the higher standard of medical facilities across the border in Thailand.

Bumrungrad International Hospital is already well-established as a regional referral centre for specialty care and a leader in medical tourism led by an experienced medical coordination team of doctors, nurses, and interpreters who serve the special needs of international patients.

The advent of the AEC will also remove many restrictions on the flow of labour across the region, making it easier for Bumrungrad to hire interpreters and international support personnel for patients who may not be fluent in either Thai or English.

Are you concerned about the intensity of competition in neighbouring markets and what are your main strategies for increasing market share?

Each country in the AEC has something to offer the community.

However, not every country can offer everything. Only Singapore and Thailand have the established medical infrastructure and expertise needed

to provide international standard medical services. In terms of medical tourism, Thailand has the competitive edge over Singapore because of its international reputation as one of the world’s best travel destinations, renowned for exotic locations, reasonable prices and welcoming hospitality. In short, only Thailand has the ability to combine world class medical care with high-end tourism.

Among the competitors within Thailand, Bumrungrad leads the way in offering state-or-the-art diagnostic, therapeutic and intensive care facilities in a one-stop medical centre. It is well-known for attracting the most talented medical professionals, with over 1200 doctors representing virtually all specialties and subspecialties of medicine. Bumrungrad will continue to focus on delivering the best quality medical services as the cornerstone of its strategy for expanding its market share.

Is medical tourism in Thailand likely to grow in 2015 and does membership of the AEC offer further growth opportunities for medical tourism?

As with many regions of the world, the AEC is faced with a rise in degenerative conditions caused by aging populations and decreasing birth rates. In addition, with increasing adaptation to Western food and stressful lifestyle, chronic diseases are expected As a result, the need for high quality medical care is on the rise.

Since many countries do not have the medical facilities or standards to meet demand, the number of people seeking medical care in countries like Thailand is certain to grow. The relaxation of visa restrictions resulting from membership of the AEC will not only make it easier for medical tourists to travel to Thailand, but will also facilitate the process of hiring skilled support staff fluent in a wider variety of languages.

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Bumrungrad selects IBM Watson as cancer care partner B

umrungrad International Hospital in Bangkok has forged a new collaboration with IBM Watson that is designed to improve the quality of cancer care for patients.

As part of a five-year plan Bumrungrad will use IBM Watson for Oncology, trained by Memorial Sloan Kettering (MSK), one of the world’s leading cancer centres.

Bumrungrad plans to use IBM Watson for Oncology to help its doctors plan the most effective treatments for cancer patients based on each patient’s profile, medical evidence, published research and the extensive clinical expertise of MSK. Watson will analyse vast quantities of this information and present a summary of findings relevant to each patient case, including treatment options based on National Comprehensive Cancer Network (NCCN) guidelines.

Bumrungrad is the first medical institution outside of North America to embark on an IBM Watson for Oncology initiative.

“It is like having a capable and knowledgeable colleague who can review the current information that relates to my patient,” said Dr. James Miser, Bumrungrad’s Chief Medical Information Officer. “It is fast, thorough and has the uncanny ability to understand how the available evidence applies to the unique individual I am treating.”

“Watson supports our vision of being the leading healthcare provider in Thailand and Asia,” said Dr. Num Tanthuwanit, Chief Executive Officer

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From left to right: Ryan Musch - Director of Product Management and Strategy, IBM Watson Group; Dr. Narongsak Kiatikajornthada - Co-Director, Bumrungrad Horizon Regional Cancer Centre; Dr. James Miser - Bumrungrad’s Chief Medical Information Officer; Khun Parnsiree Amatayakul, Managing Director, IBM Thailand; Dr. Num Tanthuwanit and Khun Nattee Kosolpisit – Moderator.

and Medical Director of Bumrungrad. “Medical knowledge is increasing very fast and cancer care is particularly complex. Oncologists race against time to find the best treatment for their patients. Our physicians will have a more powerful tool to help them make treatment decisions, ultimately improving our care and increasing patients’ lifespans.”

“Technology is the key impetus to the healthcare development in Thailand, and IBM is thrilled to be supporting Bumrungrad in this ground-breaking initiative to help hospital’s physicians access the latest information on treatments, including advances in individualised medicine based on patients’ individual biological information. This will help physicians accelerate better-informed medical decision making processes with evidence-based recommendations for

patients,” said Parnsiree Amatayakul, Managing Director, IBM Thailand.

Watson is another example of IBM’s collaboration with medical institutions worldwide to use cognitive computing to help improve medical research and patient care.

Bumrungrad serves over a million patients each year with around 50 percent travelling to Thailand from overseas. Families from the Middle East and the emerging economies of Asia travel to the hospital for advanced treatment of cancer and other serious conditions. Bumrungrad is the key player in Thailand’s booming medical tourism industry which the country estimates will attract three million international patients in 2015. For more information visit: www.bumrungrad.com and www. ibmwatson.com

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Getting help for shoulder muscle and tendon tears

By Dr. Withoon Boonthanomwong

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he various joints of the human body are necessary for movement. While they provide flexibility and movement, the joints also need to be stable. However, the more mobile a joint is the less stable it becomes. The shoulder joint is the most commonly dislocated joint. Its stability comes from the muscles and tendons of the rotator cuff. If you tear these muscles or tendons, you will need to seek medical attention for a thorough diagnosis and treatment in order to reduce the pain and regain the ability to move the shoulder freely once more.

The shoulder is the joint most susceptible to dislocation in the body. Our body’s joints help us move around.

Without the ability to move, we cannot perform our daily activities. However, it is not only the mobility of a joint that is important but also its stability. Stability helps to resist the effects of dynamic forces on the joints. The ability to stabilise the joints comes from the bone structure and ligaments that connect the different parts of the joints as well as from the muscles within the joints. Generally, an antagonistic relationship exists between joint mobility and joint stability.

The shoulder joint is the most mobile joint in the body. This joint allows the arms to be placed in different positions so that the hands can be used to perform countless activities.

The shoulder joint has greater mobility than other joints, but also less stability. As a result, the shoulder is the most commonly dislocated joint in the body. There is no bone structure providing stability at the shoulder joint. Its stability comes from the

muscles of the rotator cuff, particularly the four muscles of the rotator cuff and deltoid muscle. It is very important for these muscles to work in concert with each other.

Rotator cuff tears can be repaired

Tears of the rotator cuff are very common. In the past, it was thought that tears of the rotator cuff were not a big problem. However, it is now known that it can have serious consequences if left untreated because the pain can affect the ability to lift the arm and move the shoulder. Rotator cuff tears usually cause pain over the deltoid region and the pain becomes worse at night.

In the early stages of this condition, the shoulder can work normally, but the inability to raise the arm and weakness will increase in line with the severity of the rotator cuff tear.

Rotator cuff tears can be identified during a physical examination. An MRI scan is used to assess the severity of the rotator cuff tear and to plan the most appropriate treatment option.

The conventional treatment method is effective in patients with small tears and mild conditions.

However, ongoing observation of the condition is required because a rotator cuff tear cannot heal itself. With the large tear causing pain and an inability to raise the arm, arthroscopic surgery or arthroscopic repair is the best treatment option.

Dr. Withoon Boonthanomwong is a specialist based at Bumrungrad International Hospital, Bangkok.

More details: https://www. bumrungrad.com/healthpoint/ February-2015/painful-shouldermuscle-tendon-tears

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Tips for saving health insurance costs

By Andrew Crawford

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t was Dr. Sneh Khemka from BUPA who stated that medical cost had been increasing at twice the rate of normal inflation for the past 20 years. It’s perhaps no surprise then that a common complaint from people is that they are facing another doubledigit increase in their health insurance costs when they’ve not made a single claim. But, it’s not just the inflationary increases that need to be considered.

Age is a significant risk factor.

Age-related diseases are illnesses and conditions that occur more frequently in people as they get older. For example, according to the American Cancer Association, 77 percent of all cancers are diagnosed in people over the age of 55. And this is why every five years or so there is the double financial whammy; an inflationary increase and an increase for crossing into the next age band.

The task is to try to minimise this cost impact when the underlying issues – inflation and age related premiums – are not going to go away? Here are five tips to bear in mind when shopping for health insurance that will help you to reduce costs.

Opt to take a voluntary excess Most international insures offer deductible/excess options that attract varying levels of discount on the annual premium. The larger the excess, the larger the discount. Check to make sure how the deductible or excess is applied as there are a number of variations including: per claim, per condition or per annum. Although it requires a little more administration by the policy holder, an annual excess

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seems practical as the maximum annual exposure is known at the outset.

However, this is personal preference.

The excess amounts vary from insurer to insurer, but a premium saving of up to 25 percent is fairly easily achievable and a saving of over 40 percent is possible with some companies.

Choosing a plan that offers five million Baht in overall coverage with an appropriate excess to make the premium more affordable makes much more sense than opting for a cheaper plan with less cover. Having to borrow Baht 30,000 to pay the excess is a far better option than trying to find Baht 500,000 to pay the hospital bill because of insufficient cover.

Choose an insurer that offers a noclaims discount Frustrated by the annual increase when no claims have been made?

Then look for an insurer that offers a no-claims discount. They do exist. It might not satisfy completely, but it’s possible by not making a claim for three or four years to save as much as 20 to 25 percent on the annual premium.

Consider health insurance costs longer term It’s a fact that health insurance gets more expensive with age. For most insurers this means perhaps two or three age band rates for children and young adults up to the age of 25 or thereabouts and then groups of fiveyear timespans thereafter. So, how much are premiums likely to increase every five years and what is the impact?

In order to try to answer this question, a comparison of premium increments was made between two local health insurance providers to determine the

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overall impact of age-related increases. The result was surprising.

Insurance Company ‘A’ Between the ages of 30 and 60, premiums increase by between eight and 15 percent for each five year age band. To be fair, in most cases the increases are nearer to eight percent than 15 percent. At age 61, the premium increase is 20 percent and at age 66 things start ramping up as the premium goes up by nearly 40 percent. At age 71, some people might not feel wanted anymore as there is another steep increase - this time by 50 percent.

Insurance Company ‘B’

minimum these will include heart attack or stroke. What are the options?

How do these age band increases impact the overall costs?

There is little point in comparing the premiums of the companies directly as the policies are different. The task is to try to understand the financial impact of age-related premium increases outlined above.

Insure for what you cannot afford Take, for example, a 45 year old. Good health insurance cover can be bought for around US$1,000 per annum. Applying the real age-related increments for these two health insurance companies for the 45 year old through to age 75 yields a surprising result.

Between the ages of 30 and 50, premiums increase by between 11 and 16 percent for each five-year age band (not a significant difference from Insurer ‘A’). Then, for each five year increment between the ages of 50 and 65 the premiums increase by a little over 20 percent. The real kicker is what happens next because at the age of 70 the premium doubles.

Ignoring the effects of inflation, the cost of health insurance with Company ‘A’ would cost a total of US$52,000 whereas the same policy with Company ‘B’ would cost US$68,000.

What if this was known in the beginning? Is this really a good way to reward a loyal customer? What alternatives are there, if any, at this stage?

Well, there are companies out there that will insure a 70 year old, but predictably the list is a bit thin.

Choose an appropriate geographic area of coverage

Imagine being in this position and how stressful this might be. Assuming it’s even possible to get insurance, there will be problems that may not have palatable solutions: • Possible waiting periods for a variety of diseases • Probable exclusions or waiting periods for age-related illness • Definite exclusions for pre-existing conditions As an example, take a condition as common as high blood pressure. Under the current policy its treatment may have been covered but, with a change of insurer, it almost certainly will not be. It gets worse. Many insurers exclude related conditions. At a

cost Asia region. This excludes countries such as China, Japan and Singapore where healthcare costs are high but includes Cambodia, Malaysia and Thailand where costs are lower. The difference in premium between the two regions is staggering. In some cases people requiring cover in China, Japan and Singapore have to pay up to three times more.

It is worth doing some homework if long-term health cover is required; surprises can be avoided along the way and there might be some significant savings.

It is pretty much universally understood that the cost of healthcare varies significantly across the globe. Insurance companies recognise this by having different premiums for different geographic areas of cover, based on their experience of the health costs in these areas. So, for example, a typical insurer might divide up the world like this:

Protection against financial disaster is the real purpose of any insurance policy. It’s easy to lose sight of this when there are options to cover routine treatment for out-patient, dental and optical care. These are all very nice to have, but on the whole routine treatment for coughs and colds is still affordable in Thailand. On the other hand, the inclusion of a modest amount of routine out-patient and dental cover could more than double your premium.

Don’t be tempted to compromise on the basic in-patient plan. The key thing is to make sure appropriate cover is in place for anything that is likely to have a big financial impact – heart attack, cancer treatment, or a serious injury.

Before making any decisions about anything as important as your health it’s worth considering getting some good independent advice from your insurance broker. It doesn’t cost anymore if you do - but it could cost you a whole lot if you do not.

• Europe • Worldwide excluding USA • Worldwide However, additional regions are now being defined by insurers based on changing and differing health costs.

This differentiates countries such as Singapore and China (where medical costs are high) from the likes of Thailand, where the medical costs are still regarded as being reasonable.

For example, one international health insurer in Bangkok has created a low

Andrew Crawford is Employee Benefits Director at Trafalgar International.

Tel: 02 645 1178 E-mail: acrawford@ trafalgar-intl.com Web: http://trafalgar-int.com

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New hope for treatment of heart arrhythmia Heart arrhythmia is caused by changes in the heart’s electrical system preventing the electrical current that begins each heartbeat from working properly. Arrhythmia can affect patients at any time even though they take good care of their health. It is also considered a silent threat because, in some cases, doctors cannot detect any irregular heartbeat during an examination. As a result, the condition remains undiagnosed and untreated.

To prevent arrhythmia, it is important to watch out for the warning signs and symptoms.

When heart arrhythmia is identified, medical advice from specialists in combination with the latest technology can help you solve the problem before it is too late. Thanks to the latest advances in medical technology, heart arrhythmia can now be effectively diagnosed and treated with an Electrophysiology Study (EP Study) and as Dr. Koonlawee Nademanee, a specialist in cardiac electrophysiology at Bumrungrad Hospital explained, arrhythmia is a general term that describes a variety of heart rhythm disorders.

“There are various types of heart arrhythmias,” explained Dr. Koonlawee.

“Some are not life-threatening but other types are potentially fatal and require medical treatment. Ventricular Tachycardia and Atrial Fibrillation are the most common types of arrhythmias that require timely and appropriate treatment. Of these, Atrial Fibrillation is the most common heart rhythm disorder and highly prevalent in people over 75 years old. The risk for people in this age group is around 13 times higher compared to people under 50 years of age.”

Heart arrhythmia can be caused by many different factors. “Arrhythmia can be congenital, or sometimes the heart muscle can be affected by physical abnormalities, such as heart failure from coronary artery disease, high blood pressure, hypothyroidism, genetic disorders and electrolyte imbalance, which lead to changes in the heart’s electrical system,” added Dr. Koonlawee.

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He explained that heart arrhythmia can be detected from several symptoms, such as a fast heartbeat (fluttering of the heart or palpitations), shortness of breath, chest pain, sweating, and blackouts. “When these symp-

toms appear, a patient should seek immediate medical attention,” said Dr. Koonlawee. “In assessing the risk of arrhythmia, the doctor will take other factors into consideration as well. For example, the risk of fatality is higher in patients with arrhythmia and heart muscle weakness than it is for patients with arrhythmia alone, and so the treatment procedures differ accordingly.

“To find the accurate cause and treatment option for each patient, the doctor must have reliable information, especially for patients exhibiting the signs of arrhythmia or those whose heart is at risk of stopping. Medical imaging technology, software and processing chips in combination with the cardiologists’ knowledge and experience are key factors in the success of an Electrophysiology Study (EP Study).”

Dr. Koonlawee Nademanee

This is a test performed to analyse and treat the abnormal electrical activity of the heart which is the cause of the

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arrhythmia. Electrodes are placed on the chest in order to evaluate the heart rhythms.

The doctor then inserts a small tube through a blood vessel and runs it to the heart. The electrodes are positioned to receive signals from inside the heart chambers. The doctor may perform the test by sending electrical signals to stimulate the heart so as to gather data for analysis or perform any additional tests as and if required.

ages of the heart that help the doctor observe the heart from different angles and record its electrical activity. Abnormal rhythms in any location are color coded to highlight where the arrhythmia is being caused, and catheters with special tips are placed over that area.

The tips are heated, which causes the abnormal tissue to die. This immediately stops abnormally fast and/or irregular impulses being transmitted from that area.

Data obtained from the EP Study is imported to software and threedimensional images are generated, thus enabling the exact location of the arrhythmia to be identified. The doctor will choose the most appropriate treatment based on the cause of the arrhythmia.

Using the latest medical technology, the EP Study provides effective treatment for patients with arrhythmia because it enables the exact cause of the abnormal electrical activity to be identified and treated, resulting in the heart arrhythmia being permanently cured following the procedure.

The EP study provides real-time im-

“Although the EP Study is effective

in treating patients with arrhythmia and helping them to return to their normal daily activities, it does not change the other risk factors that affect heart disease,” warned Dr. Koonlawee.

“If patients have problems of high blood pressure, coronary artery disease, or cardiac fibrosis, those risks will still persist. Therefore, even though the heart arrhythmia is cured, the patients still have to manage the other factors that will affect their heart.”

He added that it important to keep in mind that heart arrhythmia can occur at any time and it should not be left untreated. “In many cases, when patients are not properly diagnosed and treated, the arrhythmia can cause permanent damage to the heart. When any of the warning signs of arrhythmia are observed, medical attention should be sought immediately.”

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Samitivej heralds medical breakthrough on genetic disorders S

amitivej, in cooperation with N Health and a team of specialists from Ramathibodi Hospital, has identified successfully 600 genetic disorders which can be passed from a father or mother to their child.

This pioneering technique enables parents to be sure of having a healthy baby.

Dr. Chairat Panthuraamphorn, Managing Director and CEO of Samitivej Public Company Limited, said that testing for disorders inherited by a child from the father or mother was a major medical achievement in Thailand and is the result of cooperation between the public and private sectors, including a research team from the Medical Genome Centre at Ramathibodi Hospital under the support by the Thailand Centre of Excellence for

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Life Sciences (TCELS), Leader Medical Genetics and Genomics company (LMGG), Thai Reproductive Genetic Company (TRG), N-Health and Samitivej Hospital.

“According to statistics, about seven in 100 people have a chance of genetic disorders that can be passed on to their children,” explained Dr. Chairat.

“Some people suffer from the disorders or are carriers of the disorders, so their babies are born unhealthy and cannot be cured which may be costly. The common inherited disorders in Thailand include thalassemia, Duchenne muscular dystrophies, spinal muscular atrophy and haemophilia.

“This genetic screening reduces the risk of genetic disorders in newborns and helps identify the healthy embryos

for parents who are experiencing infertility problems or at risk of genetic disorders,” added Dr. Chairat.

Dr. Boonsaeng Wutthiphan, an obstetrician and gynaecologist with specialities in reproductive medicine and gynaecologic endoscopic surgery, explained that this technology can be used in two cases. Firstly this technique is used for couples wanting to have a child but who are over the age of 35, have genetic disorders, are carriers of disorders, have a family history of genetic disorders or had their first child with genetic disorders and now plan to have their second one.

Secondly, this technique is used for couples who are experiencing infertility problems. In these cases, genetic disease free embryos can be selected for implantation so as to ensure that the baby is healthy.

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The technique involves doctors examining DNA extracted from the blood or cheek cells of the couple, their relatives, the embryo and the amniotic fluid so as to check for abnormalities.

The testing takes about 3-6 months to complete and can be performed in three phases: 1. Pre-conception carrier screening for 12 common genetic disorders in Asian people and up to 600 genetic disorders in total.

2. Pre-implantation genetic diagnosis to examine IVF embryos for genetic abnormalities and avoid genetic abnormalities inherited from parents who suffer from the disorders or are carriers of the disorders.

3. Pregnancy screening to check for chromosomal abnormalities causing intellectual and physical disabilities through testing of the

mother’s blood or amniotic fluid analysis.

In the past, newborns could only be screened for thalassemia and no other conditions causing disabilities could be detected. When a first child was born with disorders the parents would be examined to determine whether they were carriers of the disorders, resulting in reluctance for these couples to have a second child. However, if parents know that they are carriers of certain disorders or are at risk of having children with genetic disorders, they can avoid passing on genetic abnormalities through IVF technology and pre-implantation genetic diagnosis.

Samitivej and collaborating medical research organisations are holding an event to mark this research achievement. The event provides information

on the situation regarding current genetic disorders and the new hope for families at risk of genetic disorders. ‘Next Generation Sequencing (NGS) Technology in Pre-natal Screening’ is being hosted by Dr. Boonsaeng Wutthiphan, an obstetrician and gynaecologist with specialities in reproductive medicine and gynaecologic endoscopic surgery, and Dr. Objoon Trachoo, a specialist in medical genetics from N Health.

This research is 95 percent accurate in solving genetic abnormalities passed on from a father or mother to their child. It is another medical achievement that will bring happiness and health in the family by preventing genetic disorders in children. The genetic code can be compared to a book of life that can tell our future.

CR ad Japan ACCJ Directory.indd 1

1/6/2015 10:18:38 AM

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Bangkok Patana School’s Foundation Stage: Building on parents’ expertise as their child’s first educators

s parents you are the most successful educators in your

children’s lives, using strategies instinctively which imaA pct on your child’s development in the first few years of life.

When children use toys to make up scenarios or friends, the representation of multiple perspectives occurs naturally.

Children who are allowed to learn by playing are shown to Your children feel the love and care you show for them and experience enhanced cognitive benefits, such as an have a sense of emotional well being. They respond well to increases in more complex language usage, and ultimately the positive relationships that exist within your family and creativity. know that you have a genuine interest in what they do, say For children to become actively engaged in learning, they and think. You are part of your child’s ‘real-life’ experiences; also need to feel at ease, secure and confident. Our the walk in the park, a visit to the supermarket, a friend’s teachers are always looking to develop positive relationbirthday party, planting seeds in a pot, playing with bubbles ships with the children in their care, regarding them too as in the bath or maybe tasting something for the first time. unique individuals. Children with a high level of well being Through ‘talk’ you share the sights, sounds and smells. You feel wonderful. With support, they develop self-confidence, bring alive the sensory experiences of your children, helphigh self-esteem and resilience; great attributes for effective ing them to make sense of their world. play-based learning. Speech, language and communicaAs parents, you are able to give your children the opport- tion skills are the building blocks for their future developunity to explore, to play and time to learn. They can begin ment. These are some of the prime areas focused on in the to try out their own theories and experiment. You are able Foundation Stage at Bangkok Patana. As children move to let them make mistakes, enabling them to feel that great towards more collaborative play they can practice and feeling of success when they eventually achieve their goal! develop social skills including those of negotiation, empaSo, when your children join their first educational setting, thy, cooperation and sharing. they are already competent learners. They bring a range Learning is an interactive event. Shared child-initiated of attitudes, skills and knowledge from home to their new interests and experiences are fundamental aspects of early learning environment. Working closely in partnership with partnerships. Our Foundation Stage team look at your parents, our Foundation Stage (Nursery, FS1 and FS2) child as a ‘whole’, building up a picture of their interests, teachers create environments that offer play-based learncharacteristics and development across all areas of learning experiences that are sensitive to the needs of young ing. They can then ensure that through a range of rich and children, enabling them to make connections with what playful learning experiences, your children develop as they already know and understand. individuals and as learners alongside their peers.

As a quick aside you may want to ask “What is ‘playBut it is to the parents of our young learners that we must based learning’”? It is in fact very straight-forward, because say a whole hearted “thank you” for the part you play in for young children, play is learning. Research shows that your children’s learning journey; you are your children’s make-believe games are forerunners to the important capa- first and most enduring educators! city for forms of self-regulation including civility and empathy.

Bangkok Patana School Foundation Stage Team

What have you been doing at Nurser y today?

Playing, Thinking, Learning!

Our specialist Nurser y staf f suppor t ever y young child at the star t of their journey to become independent, lifelong learners.

For more information on our provision for children from 2 years of age, please contact admissions@patana.ac.th Bangkok Patana School 643 Lasalle Road Bangkok BTS: Bangna/Bearing Tel: +66 (0) 2785 2200 www.patana.ac.th Theadmissions@patana.ac.th Link Issue 1/2015 21

Report from the Eastern Seaboard

By Mark Bowling

Tourism News Update Hotel and tour operators learned what high-income tourists want while staying in Thailand in a seminar aimed at helping Pattaya businesses prepare for the ASEAN Economic Community.

The “High-End ASEAN, China, India, and Russia” workshop at the Hard Rock Hotel Jan. 22 was organised to disseminate research findings on the needs and behaviour of tourists in the ASEAN region and China, India and Russia to help tourism-related companies drive marketing plans in unison and allow government agencies to support development of their products and services.

Tourism Authority of Thailand advisor Apichart Intharapongpan noted that the plunge in Russian tourists to Thailand has forced both the public and private sectors to adjust their plans.

TAT previously announced it planned to go after “high-end” tourists to replace the Russian masses. The seminar was organised to help hoteliers and travel agents do that as well.

Apichart noted the ASEAN region had more than 100 million tourists in 2014, 6.6 million of whom travelled to Thailand, accounting for 26.7 percent of the country’s foreign tourists. China remained Thailand’s biggest market, with 4.6 million visitors in 2014 and an 18.7 percent market share. Russia, despite its currency problems, still sent 1.6 million tourists to Thailand, accounting for 6.5 percent of all Thailand’s foreign visitors. Russia remains an important market for Thailand and topped the number of foreign tourists arrivals to Thailand in 2013, he said.

With Russian tourists falling 21-27 percent a month for the past three

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months, the government and tourism related companies in Pattaya are following the economic situation closely in order to respond quickly and adjust plans to support tourists from high-end markets in other countries, particularly ASEAN, China and India, Apichart said.

Thailand’s nationwide beach cleanups continue into the New Year with Pattaya and Jomtien receiving a new zoning regulation to reduce space for beach chairs and umbrellas and offer larger space for more fun under the sun for holidaymakers. Ms. Suladda Sarutilavan, Director of the Tourism Authority of Thailand (TAT) Pattaya Office said, “The new zoning policy is being enforced under the Provincial Regulation with the objective of providing more public space on the beach and improving the experience of travellers. Tourists can choose to relax on wide stretches of empty sand or seek out deckchairs and umbrellas in the designated areas.”

Under the new zoning regulation, Pattaya and Jomtien Beaches are now offering 10 metres of public space or empty sand every 100-metre-wide beach-chair zone with each vendor concession separated from another by one metre. The 2.9-kilometre stretch of Pattaya Beach is now offering public space of 1.75 kilometres or 60 percent of the total area. At Jomtien Beach, its 5.9-kilometre stretch is now offering public space of 3.4 kilometres or about 58 percent of the total area. The remaining areas at both beaches are for deckchair and umbrella rentals.

In addition, authorities have declared Wednesday as the day-off for beach vendors who are operating business on the Pattaya and Jomtien Beaches

to allow more public space for both the local people and holidaymakers, which as a pilot scheme has been very well received.

Tourists voted with their deck shoes when deciding the best place to visit during the holidays: Koh Larn. Boat operators at Bali Hai Pier on Dec. 30 estimated crowds were 50 percent larger than normal, with Chinese tour groups comprising 60 percent of the visitors to the island and Thai tourists most of the rest.

Property News Update The Ascott Ltd’s Citadines Grand Central Sri Racha serviced residence was officially opened to the public on January 15, announcing itself as the first internationally branded service residence in the city. Strategically located in the heart of Sri Racha’s city centre, Citadines Grand Central Sri Racha is aimed at businessmen and tourists alike. The property is in close proximity to a number of retail outlets such as Robinson Sriracha, restaurants, international schools and medical facilities.

The 136-room serviced residence offer a choice of studios, one and two-bedroom apartments and all come with a fully-equipped kitchen, separate work and living areas, as well as modern amenities. Communal facilities include a gymnasium, sauna and rooftop pool.

Award winning local property developer the Nova Group confirmed its continued confidence in the Pattaya real estate market with the launch of the Pacific Bay project in Jomtien earlier this week, making it the twenty-fifth development by Nova in the Eastern Seaboard region. Pacific Bay

will be a 33-storey residential development built on the highest part of Jomtien second road, opposite the Urban Group’s Acqua condominium. The project will include 481 units ranging in size from 22sqm studios up to 69.4sqm two-bedroom apartments and prices start at Bt70,000 per sq.metre, making an entry level price of Bt. 1.54M for the studio configuration.

All units will contain quality fully fitted kitchens and bathrooms plus fitted wardrobes.

Onyx Development, not to be confused with Onyx Hospitality last month officially began construction of the Onyx Residence South Pattaya, a shared use building with Marriott Executive Apartments where 48% of the units can be privately owned, and already 70% of those units have been sold. The developers say that the building will be unique in Pattaya, with no other residential building having ever been constructed to the same high standards.

Pattaya officials hope to begin work on simultaneously refilling Pattaya Beach with sand and laying new beachfront drainage pipes in March. Top city officials, representatives from Marine Construction Joint Venture Co., and engineers met with business owners and boat operators Jan. 21 to lay out the details on the nine-month, 622-million-baht construction project. Budgets for both the 430 million baht sand-refill project and the 192.8 million baht drainage pipes have yet to be approved. But officials are hopeful that everything will fall into place so

work can begin at the start of March.

Plans to rebuild Pattaya Beach began in 2011 when researchers from Chulalongkorn University warned that the beach would disappear within five years if nothing was done to counter erosion.

Pattaya and regional police, and the Department of Rural Roads agreed on a traffic-management system aimed at relieving the inevitable worsening congestion on Sukhumvit Road while a traffic-bypass tunnel is built at the Central Road intersection over the next three years.

Mayor Itthiphol Kunplome, police chiefs from Pattaya and Chonburi, and Rural Roads Department officials signed the agreement Jan 20. Five metres - one and a half lanes - bordering Sukhumvit’s centre median will be closed to traffic from the Boonthavorn shop to Soi Wat Boonsampan in the initial stage of construction. Parking will be banned in the construction zone while work is in progress and traffic from North Pattaya and Highway 7 cannot turn right on to Central Pattaya Road. Likewise, traffic from South Pattaya will be barred from turning right onto Pornprapanimit Road.

about 1,000 regional business executives attending the Eastern Industrial Strategic Plan Forum Jan. 14 that a seven-year investment-promotion programme begun this month will focus on developing infrastructure with a dual-track railroad serving Chonburi’s Maptaput industrial estate being the linchpin of the plan. It will help reduce logistics costs and facilitate international business, he said. Chonburi Gov. Khomsan Ekachai opened the “Building Thailand as the Centre for International Trade” seminar at the Bangsaen Heritage Hotel in Chonburi.

He said the province is an important location for industry as it offers potential and services that allow continuous development. Currently, there are approximately 2,130 factories in Chonburi amounting to 1.5 trillion baht in investment.

The following news is reproduced with kind permission of SATCC

The planned 68-kilometre, 50-billionbaht Buraphavithi-Pattaya Expressway project will likely be scrapped after facing strong resistance from people living along the route, according to a project adviser. “The financial return from the project is estimated to be low and many residents along the way do not want it so we think it might not be worthwhile to proceed,” said Kerati Kijmanawat, a project adviser, at the fourth and last public hearing in Si Racha.

Deputy Prime Minister Pridiyathorn Devakula outlined the government’s strategies to make Thailand Southeast Asia’s centre of international trade at a forum in Chonburi. Pridiyathorn told

THE DAIKIN GROUP has assigned its factory in Chonburi, Thailand to act as a regional training centre for its people involved in manufacturing, installation and maintenance services in

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ASEAN. The move is part of the Japanbased air-conditioner maker’s plan to cash in on the ASEAN Economic Community, to be effective this year.

Paisal Aowsathaporn, vice president for food operations at Oishi Group, said the company would invest more than Bt1 billion on establishing a central kitchen for its Japanese restaurants, to be located on a 195-rai plot in Chon Buri’s Ban Bung district. The facility will be capable of serving the company’s expansion for the next 10 years.

Tetra Pak has opened a 5m technical training centre in Rayong, with courses in automation, filling line equipment, quality assurance and food safety for dairy and beverage producers.

The 3,000mA2 Tetra Pak Technical Training Centre Rayong features three packaging lines: Tetra Pak A3/Speed, Tetra Pak A3/CompactFlex and Tetra Pak A3/Flex and microbiological and package evaluation labs.

A new aviation hub is being sought.

Four airports shortlisted are Nakhon Ratchasima airport, the navy’s UTapao airport in Rayong, the airport of the air force’s Flying Training School in Nakhon Pathom and Suvarnabhumi airport in Samut Prakan, deputy permanent secretary for transport Woradech Harnprasert said yesterday. “Nakhon Ratchasima airport appears to be best suited for the project. However, we can’t overlook U-Tapao airport, which is going to be the country’s new commercial airport,” he said. Mr Woradech chairs a committee working on the aviation industrial estate project.

Nakhon Ratchasima airport sits on 1,300 rai of land previously owned by the Royal Forest Department. The site needs improvement to its basic infrastructure, but there is no military security restricted area that might hinder commercial development of the airport. U-Tapao airport also has potential for the project, but talks with the navy are needed first to clearly designate areas for commercial purposes, well away from restricted military zones. The airport serves as the maintenance centre for national carrier Thai Airways International and has 110 rai of space available for future developments.

The committee is expected to choose the site by the middle of next month, 24

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Mr Woradech said. The estate will be a hub for repairs, manufacturing parts for aircraft, and conducting aviation research, and is expected to draw interest from many firms servicing the industry.

The government will present Japan with three options for investment in double-track railways during Prime Minister Prayut Chan-o-cha’s visit to Japan next month. The first is the Mae Sot-Phitsanulok-Khon Kaen-Mukdahan route covering 770km. A second 339km-route is from Kanchanaburi’s Ban Phu Nam Ron via Bangkok to Rayong’s Mab Ta Phut. The Kanchanaburi-Rayong route will be the gateway for goods moving from the Dawei industrial zone in Myanmar to Rayong, where there is a deep-sea port serving the Pacific Ocean, ACM Prajin said. The third route, covering 653km, is from Bangkok to Chiang Mai. Britain is keen to invest in infrastructure including the double-rail track project and Suvarnabhumi airport expansion, the Transport Ministry says.

Transport Minister Prajin Juntong said British ambassador to Thailand Mark Kent has called on him and conveyed Britain’s interest in investing in large-scale infrastructure projects.

The double-track service will come with new 1.435-metre standard gauge tracks while Suvaranabhumi airport needs an additional runway and parking bays. Britain is also interested in investing in major seaports, the Map Ta Put industrial complex in Rayong, Laem Chabang port in Chon Buri, the proposed Pak Bara project in Satun and the Songkhla 2 seaport.

Bosch, one of the world’s leading automotive suppliers, has localised production of active safety systems at its manufacturing facility in Rayong. This marks the first time Bosch will produce Anti-lock Braking Systems and Electronic Stability Programme systems in Thailand.

BEKO, Europe’s second-best-selling home-appliance brand, yesterday announced that it had selected Thailand as the location of its first ASEAN production facility, with the plant going into operation by the end of this year.

The factory, for which the foundationstone-laying ceremony was conducted on Tuesday, is on a 164-rai plot at the Hemaraj Rayong Industrial Land estate.

BoI applications are the highest in the 50 years of its existence, underscoring the recovery of industrial land sales.

This is excellent news for AMATA, which is ideally positioned to capitalize on this trend and we estimate a tripling of its land sales to 1,600 rai this year.

A Thai-Chinese railway project worth Bt400 billion is to be discussed by leading officials from the two nations in a couple of weeks at their first meeting. “Officials of both sides under the Thai-Chinese Railway Development Committee will hold a meeting to discuss and determine the project’s time frame and the project’s framework from January 20 to 22,” said Transport Minister Air Chief Marshal Prajin Juntong.

Last month, the Thai and Chinese governments reached a memorandum of understanding for joint development of two standard-gauge railroads running trains capable of speeds up to 180km/h. One 737-kilometre route will run from Nong Khai to Bangkok via Nakhon Ratchasima, Kaeng Khoi district of Saraburi, and Laem Chabang in Chon Buri to Map Ta Phut in Rayong. The other route will run 133km from Kaeng Khoi to Bangkok.

Mark Bowling, Associate Director | Sales & Leasing | Pattaya Colliers International Thailand 519/4-5 Moo 10, Pattaya Second Road, Nongprue, Banglamung, Chonburi, Thailand 20150 (Opposite Central Festival Pattaya Beach) Mobile: +66 85 282 8120 Tel: +66 38 427 771 Fax: +66 38 427 772 http://www.colliers.co.th/ pattaya www.colliers.co.th/pattaya

NESDB forecasts healthy growth for Thailand in 2015 I

n its latest Economic Outlook, the National Economic and Social Development Board (NESDB) expects to see the world economy to grow by 3.6 percent in 2015 as a result of a stronger than expected recovery among some economies.

NESDB is forecasting economic growth for Thailand in 2015 of some 3.5 - 4.5 percent. The factors going into this growth include a four percent growth in export value, a 2.6 percent expansion in private consumption expenditure, a 5.8 percent expansion in investment and likely headline inflation in the range of 1.4 - 2.4 percent. The current account surplus will in the area of 2.2 percent to GDP. The Outlook states that ‘the Thai economy in 2015 is likely to accelerate from 2014, contributed mainly to (1) an improvement in export sector in line with further recovery of the global economy, (2) a recovery of tourism sector and investment, (3) an increase in government expenditure, (4) a drop in crude oil prices, and (5) less base effect caused by unusual high volume of car sales and production’.

By all measurements, 2015 is set to be a productive year for Thailand, with NESDB forecasting private consumption expanding by 2.6 percent, with an expansion in car sales.

Likewise, recovery of the export and tourism sectors will lead to increased household income. Public expenditure is seen to grow by 5.6 percent with efficiency enhancement of the budget expenditure.

Economic Outlook and Projections 2014-2015 Projection (% YoY) 2014

2015

GDP (at 1988 price)

1.0

3.5-4.5

Export of goods (US$)

0.0

4.0

Volume

-6.5

5.0

Import of goods (US$)

-5.8

5.5

Current Account to GDP (%)

2.9

2.2

Current Account to GDP (%)

2.1

1.4-2.4

Source: NESDB and Bank of Thailand

NESDB also states that total investment will expand next year by 5.8 percent, with private investment growing by 4.8 percent.

This is all due to improved business and investor confidence, among other things, and “…several BOI invest-

ment approval projects which are expected to start operations in 2015.”

Exports are likely to be up four percent says NESDB, with imports growing at five percent. Overall, there is expected to be a trade surplus of US$19.6 billion.

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Investment in Thailand shows upward trend T

he project on ‘Foreign Investors’ Confidence in Thailand’ has been conducted on a yearly basis by the Thailand Board of Investment (BOI) in order to survey the confidence of foreign investors in Thailand and their investment plans.

The results are used when BOI formulates policies and measures for the as a means of providing a better investment environment for foreign companies.

Framework for Foreign Investors’ Confidence Survey 2014 In surveying foreign investors’ confidence in Thailand for the year 2014, the BOI commissioned Bolliger and Company (Thailand) Ltd. to conduct the study. To gather the information required, a questionnaire was sent to

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3,000 foreign companies located in Thailand. Selected companies were restricted to having foreign shareholding of at least 20 percent and included both BOI-promoted and non-BOI-promoted companies.

Of 3,000 companies, 600 replied. Bolliger also conducted in-depth interviews with 32 out of 600 companies so as to gain additional information, comments, and suggestions. In addition to the survey, Bolliger studied the overall investment situation and trend in Thailand so as to gain a better understanding of those factors that affect investors’ investment decisions.

Investment situation and trends in Thailand From 2005-2013, foreign direct investment (FDI) in Thailand showed

an upward trend despite the reduction in investment during 2006-2009 due to the economic crisis that first took place in the United States. After the crisis, FDI significantly increased, especially in 2012. The reason behind this increase was that the United States, the European Union, and Japan, began to recover. This led to a higher flow of funds to Thailand.

As for the GDP growth rate of Thailand, it was decreased from 6.48 percent in 2012 to 2.81 percent in 2013.

The forecast by the Fiscal Policy Office (FPO) suggests that the growth for 2014 will be 1.5 percent and this will increase to 5.5 percent in 2015.

It is found that factors affecting Thailand’s investment climate in a positive way include the recovery of the global economy, infrastructure development

plans, especially those related to logistics and transportation.

General information and investment plans of foreign investors in 20142015 Of the 600 companies that completed the questionnaire, 96.8 percent are promoted by the BOI. The majority of these companies are Japanese (51%).

Categorising by industry, investors in metal products, machinery and transportation industry make up the largest proportion of respondents (23%).

In terms of size, most respondents are large companies, with 31 percent having assets more than 500 million baht, 33.70 percent employing between 51 and 200 employees, 30.30 percent having operated in Thailand for more than 20 years, 33 percent having revenue of more than 500 million baht, and 71 percent sourcing their income from domestic and international markets.

Most foreign investors plan to maintain or increase their investment level in Thailand. To be more specific, 74 percent intend to maintain investment level while 24 percent intend to expand their investment level. On the other hand, two percent plan to reduce investment. None of the respondents intend to withdraw their investment from Thailand.

Factors that have had the greatest impact on foreign investors’ decision to maintain or increase their investment level are: • • • • •

Sufficient suppliers Sufficient raw materials/parts Sufficient overall infrastructure Supportive investment incentives Reasonable cost of skilled labour

Regarding those investors that plan to reduce their investment level, factors with the greatest impact are: • • • • •

Political instability High minimum wage High cost of skilled labour Instability of the Thai economy Not transparent government procedures

In addition to investing in Thailand, some foreign investors (17.67%) plan

to expand their investment abroad.

The countries in which foreign investors are most interested are China, Vietnam, Indonesia, Myanmar, and Laos.

The majority (62.26%) of foreign investors who plan to expand their investment abroad are interested in investing in ASEAN. Confidence of foreign investors in Thailand To estimate foreign investors’ confidence level, Business Sentiment Index (BSI Index) was calculated around six indicators. These are: • • • • • •

Total revenue Domestic sales International sales Profits Liability Total investment

The BSI Index can be interpreted as follows. If the BSI is equal to 50.00, then foreign investment confidence remains unchanged from the previous period. If the BSI is greater than 50.00, then foreign investment confidence has improved from the previous period. The result reveals that foreign investors believe their total revenue, revenue from domestic sales, revenue from international market sales, profits, and total investment in 2014 would increase from those in 2013. As for liability, they believe that it would decrease from the previous year.

Supportive investment factors in Thailand and abroad Most foreign investors considered the investment climate in Thailand to be positive and the factors that are most supportive for the year 2014 are • • • • •

Availability of suppliers Availability of raw materials/parts Transportation and logistics system Communications services Access to domestic loans

Comparing the results of 2014 with those of 2013, it appears that the scores of almost supportive investment factors in 2014 are greater than 2013, except overall infrastructure, investment incentives, stability of the domestic economy and political envi-

ronment. With respect to the scores of supportive investment factors in other ASEAN countries, Singapore is ranked first as the country most supporting of foreign investment, followed by Thailand and Malaysia.

In contrast, Brunei, Cambodia, and Myanmar are the least supportive.

Importance of Thai government policies and BOI measures Foreign investors were asked to provide their opinion on the importance of government policies and the BOI measures that help in establishing good environment for investment.

These measures include: • Reform government bureaucracy, e.g. lift unnecessary permits and procedures • Announce strict measures to protect intellectual property rights • Reform education and job training systems to meet labour demand • Introduce strict measures to prevent corruption • Introduce more effective flood relief measures • Reform and simplify revenue tax regulations and procedures • Reform and simplify customs tax regulations and procedures • Reform procedures for application to investment promotions • Reform procedures for visa and work permit applications • Increase understanding on privileges from AEC and FTAs • Develop logistic system and Construct infrastructures and facilities The survey shows that most foreign investors believe that all these measures are important. The most important government policy is to reform government bureaucracy (lift unnecessary permits and procedures) followed by policies to introduce strict measures to prevent corruptions and the reform and simplification of customs tax regulations and procedures.

The least important measures are to increase the understanding on privileges from AEC and FTAs and to reform procedures for visa and work permit applications.

For a copy of the entire survey report, visit: www.boi.go.th

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Thailand investment: Changes for the better Poised to become a major driving force for economic growth in the Southeast Asian region and increase long-term national competitiveness, Thailand is experiencing sweeping changes to achieve a balance of political, economic and social advancement to provide a pleasant investment climate. At the same time, it is paving the way and laying the foundation for a digital economy.

T

hailand’s neighbouring countries are moving fast, and quickly increasing their production capabilities. To remain at the forefront, Thailand sees developing a digital economy as the key. The country must offer higher value for investors and propel its economy forward using high and digital technology.

Recognised as an industrial producer that already is strong, Thailand will develop this aspect of its economy further by encouraging more investment in value added, creative and digital industries, such as alternative energy, automotive, animation, software and aviation.

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Thailand aspires to establish itself as a regional hub and its ensuing progress will be a strong stimulant to regional development. The formation of the ASEAN Economic Community (AEC) at the end of 2015 will create a free flow of trade and investment. It is therefore a good opportunity for the country to help connect economies, people and trade while enhancing regional social and economic stability.

In anticipation of the region’s economic integration, great importance is being placed on improving the country’s infrastructure, connectivity with neighbouring countries, nurturing new high-value industries, optimizing

local resources and promoting ecofriendly development.

Huge investment on infrastructure Infrastructure development would be among the top priorities, considering that Thailand is located at the centre of south east Asia and midway between India and China, making it a strategic location for businesses looking for opportunity to grow in Asia and reach billions of consumers - over 600 million in south east Asia alone. As good infrastructure is essential to this development, an 8-year infrastructure improvement plan was drafted.

investment promotion strategy has been revamped, with promotion criteria shifted to focus on target sectors.

Investment incentives now include subcategories of activity-based and meritbased incentives, as defined below.

Activity-based incentives are based on the importance of the promoted activities to development. For example, businesses that involve knowledge-based activities, R&D, high technology and infrastructure or any value-added industries would receive more privileges.

Merit-based incentives are given to projects that help enhance the country’s competitiveness. For example, R&D activities, whether in-house or outsourced in Thailand, or joint R&D with overseas institutions would enjoy additional corporate income tax exemption.

Thailand as your business headquarters MR Pridiyathorn Devakula, Deputy Prime Minister

The five areas of infrastructure development are the provincial rail network, public transportation in Bangkok, national highways, and water and air transport systems. Dual track rail lines, extension of the mass rapid transit in Bangkok (BTS SkyTrain and MRT subway), airport expansion and improvement of highways connecting neighbouring countries are central to the project.

Digital economy to boost investment competitiveness MR Pridiyathorn Devakula, Deputy Prime Minister, told the recent ‘New BOI Investment Promotion Strategy seminar that it was time for the country to change its investment profile in order to nurture a healthy digital economy and maintain solid growth in the long run.

“A digital-based economy is not only about hardware or software, but also a new economic base. It is fundamental if other sectors such as manufacturing, agriculture, services, finance and banking are to grow,” he said.

The Thai government recently announced five themes to pave the way to a ‘digital Economy’. These include the strengthening of the country’s IT hard infrastructure, soft infrastructure, service infrastructure, digital economy promotion and innovation, and digital

society and knowledge. The government is also working hard to adopt new laws and regulations related to a digital economy.

New target industries While infrastructure and connectivity are being enhanced, the country has shifted its targets to high-value industries and eco-friendly production that will promote sustainable development, as well as to projects that promote cluster creation.

Attracting investment in these industries will encourage value creation and technology transfer that will in turn lead to sustainable development and lift the country out of the middle income trap. Furthermore, investments in bordering provinces or special economic zones are promoted to improve the quality of life of the local population and strengthen the local economy.

At the same time, overseas investment

by Thai entrepreneurs is promoted in order to increase national competitiveness in the global market.

New incentives package focuses on value creation Acting Secretary General of the Thailand Board of Investment Hirunya Suchinai said that the BOI’s incentives package already has been adjusted to address the new strategy. The overall

The establishment of regional and international headquarters is another new focus area focus to boost international trade activities in the country.

Several tax and non-tax incentives offered include tax exemption on capital gains, dividends received by the headquarters, income from servicing other companies within the group, and sales of raw materials to subsidiaries, and the withholding of tax on profits generated by company headquarters through the provision of financial management services to subsidiaries. In addition, longer-term work permits will be issued to expats working at either a regional or international headquarters, with a shortening of the approval process for work permit applications.

“The new investment strategy and incentive package will change the face of Thailand’s investment direction and economy. With a stronger focus on value creation rather than investment value, Thailand will soon become an advanced economy that offers not only higher value to investors but also one that nurtures sustainable development and a better quality of life for its people.

Most importantly, this direction will place Thailand in the right position to become a regional hub, the investment destination of choice when people think of Asia,” declared Hirunya.

Article submitted by Thailand’s Board Of Investment. For more details, visit: www.boi.go.th.

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Protecting R&D innovations in Thailand M

any European small and medium-sized enterprises (SMEs) may not consider that they conduct any research and development (R&D) in Thailand because they do not have a laboratory or research facility there, but in reality, a high proportion of these companies engage in activities which fall under at least one of the terms ‘research’ and ‘development’.

Some examples of R&D might include an SME that enters into a contract with a local company to use their engineers to develop a prototype into a commercial product or application; or an SME that works with local researchers in a Thai university to design a digital database that is to be accessible via the internet to users in Europe.

Intellectual property (IP) is a critical consideration for European SMEs that come to Thailand wishing to tap into this increasingly high-tech production network, or the talent pool for technology development. When engaging in R&D in Thailand, new intellectual property is being created, the rights to which need to be clearly defined from the outset to avoid disagreements later on.

Protecting innovations through contracts Contracts and agreements can be one of the most effective ways to keep hold of innovations that result from research and development. Examples include using non-compete clauses in employment contracts or requiring all employees to sign non-disclosure

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agreements (NDAs) to ensure new ideas are not leaked to competitors.

NDAs are quick and inexpensive, and a basic template will require little modification for use with different products and clients.

If the primary inventors are non-Thai citizens, you will have much more leverage in deciding how to control the IPR. If, however, the Thai team is expected to make key contributions, IPR ownership will be a more sensitive issue when negotiating the terms of your agreement.

Innovations that are created during the course of the employee’s work can be specified as the property of the company in employee contract clauses. However, to retain the innovators you will need to include a sufficient amount of rewards and incentives for them as individuals if the ownership of the innovation will not be granted to them.

You will also need to consider the legal status of the individual inventors.

If the inventor is an employee of another party, for example a researcher at a local university, he or she may be under contractual duty to assign their IP rights to that employer. Ignoring the inventor’s existing legal duties can cause serious problems down the line.

Protection of new IP rights generated (derivative works and technology improvements) Business ventures involving complex, innovative technology often involve licensing the technology to local companies for production. As research and development may be on-going or incidental to the process of operating with the technology, it is very important to address ownership issues in licence agreements (i.e. who owns rights to the derivative works and improvements of licensed technologies), so that there will be no later disputes.

In the absence of a clear contract on ownership rights the law generally recognises the creator of a work/inventor as the owner, even if the underlying licensed rights belong to another party.

For example, the translator of an original licensed literary work would be the owner of the copyright of the translated work, even though the copyright of the

underlying licensed work belongs to the original owner. The party who makes improvements to a technology based on the licensed technology automatically owns the IP rights on such improvements.

first step should be to review your business strategy. Ask yourself the following questions: who are you working with, what is the potential of your technologies under the R&D, and what are the worst case scenarios?

The licensee can afterwards enter into a separate agreement to assign or license its improvements back to the licensor. However, many licensors in IP licensing contracts include so called ‘grant-back’ clauses providing that any improvements/modifications made to the licenced technology/work by the licensee shall belong to the licensor. Drafting of an effectual licensing agreement is a complicated and challenging process and it is advisable to seek the advice of a local legal practitioner in order to avoid legal pitfalls.

Precautions should also be taken even when there is no dedicated R&D programme. It is not only under commission that technical innovations are made. Advances are often discovered during normal working operations, especially improvements to production line processes. The important point to remember is that for all potential problems you foresee there are always preventative measures that can be taken.

Stay safe, think ahead When deciding to conduct research and development in Thailand your

If you have a question about how to protect you IP while conducting R&D in Thailand, contact our IP Business Advisor for free first-line legal advice at question@aseaniprhelpdesk.eu.

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@asean-iprhelpdesk.eu. You will receive a reply from one of the Helpdesk experts within three working days.

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Paws for thought

By Paul Gambles

I

’m increasingly described these days as a perma-bear or something of a pessimist. I think this is a little unfair because, as I often point out, I’ve only been bearish for only most of the last 18 or 19 years or so and only in respect of most aspects of the global economy. Plus, it’s not so much that I’m being unduly pessimistic in my assessment of the global outlook as the fact that things are grim out in the world and they’re getting worse every day. But I suppose that is what a perma-bear would say.

Global debt-deflation In fact, my only permanent economic belief is in cyclicality. Where we are now is just part of the cycle, albeit the worst part; debt-deflation. At least 15 years into the current phase, we’re far from through this. We may even be barely halfway through but, once this phase of the cycle is complete, we have several decades of increasing relative prosperity to look forward to.

Every economic cycle since time began has started off with a relatively clean slate – with low asset values, low prices, low debt, an underemployed population and low levels of economic activity. People then get new jobs, open new businesses, buy new cars (or in the past chariots?) and houses (maybe caves?) and all this generally creates an upswing, from ground zero or at least from a very low base, to a gradually higher level of economic activity.

At that point, everyone feels good because things are going so well; everyone sees this and wants some part of the action. This tends to result in initially tentative private borrowing from initially low but gradually rising inter-

1

Data from the Whitehouse: Office of Management and Budget.

2 http://www.positivemoney.org/how-moneyworks/proof-that-banks-create-money/ 3 http://www.zacks.com/commentary/37843/ retail-sector-in-focus-as-q4-earnings-season-

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est rates. The borrowing tends to be largely directed into production and increases employment, incomes and profitability. A look at the period prior to and after the Wall Street Crash demonstrates this. Then private borrowing starts to accelerate and becomes more focused on consumption (which of course drives more consumption) and also on assets such as property. The upswing then turns into a full-on boom – salaries and the values of assets tend to go up, as do interest rates and eventually inflation starts to run away and we tend to enter a bubble. The combined impact of higher private debt and higher interest rates causes a gradual slowdown, which initially looks healthy because inflation and interest rates start to moderate. However the consumer debt that has been borrowed becomes much harder to repay, even as interest rates fall, because wages start declining in real terms. All the speculative assets that were bought stop going up in value and the world finds itself facing debt deflation. Heavily in debt, unable to increase salaries in real terms and struggling to get the kinds of investment returns that you used to get – welcome to debt-deflation, where the global economy has been trapped for a long time now. Treating the symptoms not the causes of debt-deflation, which is what global policy makers have done throughout this period, actually makes things worse not better.

vate debt in terms of making national economies and the global economy tick – both up and down. Private debt, created by commercial banks, represents the vast majority of the money that is deemed to exist. In the UK it’s at more than 97 percent, for example.2 Relatively small percentage changes in these figures make huge differences to the economy.

Where does that leave Thailand?

Like everywhere, the situation leaves Thailand on a pretty sticky wicket (in a difficult situation’ for readers not familiar with cricketing terms). Meanwhile, back in Thailand, exports have been the primary mover of economic growth here ever since 1997 when the country exited its own version of the Euro – the ASEAN region’s obsessively rigid peg to the US$. However exports will be increasingly difficult in a slowing global economy. Over the past few weeks and months, I’ve been asked by countless people, “Isn’t it good for the economy that oil, which Thailand imports more than any other ASEAN country except Singapore, has fallen to $60, then $50 and even $40 a barrel?”

The world is in debt like never before.

George W. Bush created more debt than every preceding US president added together since Richard Nixon took office in 1969;1 and now President Obama has outdone him. Having said that, one major misconception is that government debt is the real issue. It’s not; it’s much less important than pri-

My answer has been “No it isn’t – it’s terrible. Because it’s telling us that private demand is falling off a cliff.” We know that, because all other commodities are struggling. We also know that because, if you take out the addicts buying iPhone 6’s, then sales revenues for the global companies listed in New York were weak in Q4 last year.3 And we also know that because Thai export and GDP growth hit a brick wall at that same time.4 That wasn’t really a Thai problem – it was a global ripple reaching Thailand’s shores which is building in intensity the longer the

winds-down 4 http://www.cnbc.com/id/102427944 5 68% in USA: OECD, Household final consumption expenditure, etc. (% of GDP) USA (2013) 6 Bank of Thailand 7 UNDP & China Translation and Publishing

Corporation (2013), China Human Development Report 8 BOT Paper “Rising Household Debt: Implications for Economic Stability” (October 2014) 9 idem

world remains trapped in debt-deflation. The last time that we were here – in debt-deflation - was the 1930s. It took extreme policy measures to end debt deflation back then. Not the New Deal, not the Rentenmark but rather a policy, or at least an outcome, called World War II. So not only are we in debt-deflation now, but we could be in it for years to come. This means that we should recognise that Thailand’s export-driven miracle phase is coming to an end – or at least a multi-year if not multi-decadal pause or hiatus.

If that gap isn’t filled with something else then, just as export economies have suffered the most in major downturns previously, Thailand has a pretty rough few years ahead. That said the glass is still half full because there are two sensible ways to fill the export gap: 1) Domestic spending. In economies like America, consumer spending accounts for around the 70 percent5 of GDP that exports make up in Thailand. Give Thai consumers money to spend and we could move to a more balanced, more developed looking economy – the problem is Thailand has virtually full employment (unemployment rates in 2013 and 2014 were both 0.6 percent6) but, despite or maybe partly because of minimum wage policies, real wages remain stubbornly too low and Thailand is still caught in the middle income trap.

I call this the ‘Thai Disease’ – if you’re born and raised in a land of plenty, in one of the most fertile, resource-rich regions of the world, you don’t have much incentive to do too much. Every entrepreneur needs to know how hunger feels. I’m not really talking about Bangkok and other urban areas, but Thailand has an extremely ruralised population mainly living in badlyconnected small villages that institutionalise sub-standard education, lack of opportunity and marginalisation from participating in the socio-economic development of the Kingdom.

Thailand’s urban dominance keeps most of its population under-skilled,

10 11 12 13

http://www.ideaeconomics.org/ http://www.debtdeflation.com/blogs/manifesto/ http://www.cnbc.com/id/102388026 http://www.bangkokpost.com/news/ transport/450907/thailand-china-signrailway-deal and http://www.business-in-asia.

underpaid and underrepresented in the politics of the country. When the likes of BBC TV reporter Jonathan Head mock Thailand’s elite for concerns about how democracy can work in the Thai landscape, they’re only showing their ignorance of Thai realities. There is a genuine problem in terms of the marginalization of vast swathes of the Thai population, one that is best solved by finding a way to include the vast majority of Thai people in the socio and political economy.

If we recognise their marginalisation and its root causes, we stand some chance of dealing with it.

In China the equivalent of more than the entire population of America will have moved from rural populations to urban ones by 20337. While there are many, many problems with the Chinese growth model, increasing average salaries at over 10 percent per year for several years and largely absorbing these extra costs through increased productivity is a salutary lesson as to what can be achieved.

Of course, as mentioned earlier, one impediment to consumption is high consumer debt. Interestingly Thailand’s consumer debt increased very significantly during the last government (for a lot of reasons) but there’s definitely not a consumer debt problem in most income sectors - in fact it’s only the lowest 20 percent of earners who are heavily indebted8 – which is sad on an individual level but on an economic level, it means that the most powerful 80 percent9 of consumers are still able to increase consumption and also that the problem is more easily remediable.

For one thing, it tends to be easier to increase average incomes and enable debt repayment amongst the lowest paid sectors of society. Also other effective policy tools are available. My colleague at IDEA Economics,10 Prof Steve Keen, often talks about a debt jubilee11 – governments cancelling consumer debts – a policy that not only has a very sound historical justification but actually was implemented

com/thailand_infrastruture.htm 14 http://www.nationmultimedia.com/politics/ NCPO-aims-to-avoid-debt-30241210.html 15 See MBMG Article for The Nation Newspaper, Experts discuss outlook for Thailand, ASEAN and China, September 2013

just the other week by the Croatian government.12 It’s also believed to be a populist policy that actually does have a positive economic impact; Thailand take note!

(2) The second way to fill the export gap would be for the government to actually implement the much needed infrastructure reforms. While I welcome some initiatives that have seen the Chinese and Japanese encouraged to open their governmental wallets to help improve Thai infrastructure13 and while I very much welcome the fact that Prime Minister Prayuth has committed to save 30 percent of the cost of projects,14 speed is of the essence and disbursement is in danger of missing the critical point in time when it’s most needed.

So, the world has a problem – a huge problem and finding a better economic solution than another World War is a really difficult challenge – one that sadly looks beyond the grasp of the policy makers that I’ve met or spoken to from developed countries, especially in Europe.

Thailand is very much affected by that problem. It also has homemade problems of its own. The good news is that they are remediable but the bad news is that there’s not much time left. We have some very impressive individuals in Thailand – Dr. Prasarn at the BoT is for me the standout global central banker.15 The current ruling administration isn’t short of talent either and it certainly seems to know the right policy measures and direction – but it needs to get a move on – or else things could turn very dark indeed.

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

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Tide turns against beach vendors in Thailand T

hailand’s nationwide programme of beach clean-ups has continued with Pattaya and Jomtien receiving new zoning regulations that reduce the space allocated for beach chairs and umbrellas.

Similar clean-up exercises and zoning regulations have been introduced at beaches in Phuket, Prachuap Khiri Khan and Chon Buri to ensure that international travellers and local tourists enjoy hassle-free fun when visiting the kingdom’s beautiful resort destinations.

However, some tourists reportedly claimed at the lack of facilities and opportunities to purchase food and drink.

Khun Suladda Sarutilavan, Director of the Tourism Authority of Thailand (TAT) Pattaya office, said, “The new zoning policy is being enforced under the Provincial Regulation with the objective of providing more public space on the beach and improving the experience of travellers. Tourists can choose to relax on wide stretches of empty sand or seek out deckchairs and umbrellas in the designated areas.”

in every 100 metre-wide beach chair zone. Vendor concessions are separated from another by one metre.

Under the new zoning regulation, Pattaya and Jomtien beaches now offer 10 metres of public space or empty sand

Authorities have declared Wednesday as the day when beach vendors may not operate.

Khun Suladda added, “We appreciate the Thai government and the local authorities in their efforts to return the natural charms to these beautiful destinations, allowing visitors to enjoy them without hindrance. We hope that the images of these stunning beaches will entire more international travellers to Thailand to immerse themselves in the impressive ‘Thainess’ experience.”

Modest increase in passenger numbers at AoT airports A

irports of Thailand reports overall passenger traffic at its six airports increased by 2.53 percent in 2014. New figures from AoT state that some 90,528,345 passengers passed through these six airports, compared to 88,290,830 in 2013.

Bangkok’s Suvarnabhumi airport welcomed 46.42 million passengers, followed by Don Mueang with 21.54 million and Phuket with 11.40 million. Chiang Mai airport handled 6.63 million passengers. The authority also reported an improvement in aircraft movements of just over nine percent in December 2014.

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UK trade gap widens T

he UK’s deficit of trade in goods and services for December 2014 widened to £2.9 billion, from £1.8 billion in the previous month, according to the Office for National Statistics.

The trade position reflects exports minus imports. Between November and December, exports decreased by less than £0.1 billion to £42.1 billion and imports increased by £1.0 billion to £45.0 billion.

This release is the first opportunity to analyse the performance of UK trade in 2014. The total trade deficit widened to £34.8 billion in 2014.

This was the largest deficit since 2010 when the deficit stood at £37.1 billion. Both exports and imports fell in 2014, however, exports fell more significantly.

The widening of the deficit is mainly attributed to trade in goods as exports of goods decreased by £14.6 billion from the previous year and imports of goods decreased by £7.3 billion; this was the first annual fall in imports since 2009.

In terms of commodities, trade in fuels saw the biggest year on year decrease; exports of fuels fell by £6.4 billion and imports of fuels fell by £9.8 billion.

The deficit on trade in goods was £10.2 billion in December 2014, narrowing by £0.9 billion from November. Exports rose by less than £0.1 billion between November and December, whilst imports rose by £0.9 billion over the same period.

In detail, exports of goods rose by less than £0.1 billion to £24.6 billion in De-

cember; a £0.2 billion increase in fuel exports was almost entirely offset by a £0.2 billion decrease in exports of manufactured goods. In value terms, exports of oil increased £0.2 billion in December 2014, whilst the volume of oil exports grew 22.7 percent over the same period; reaching its highest level since July 2012.

Imports of goods rose by £0.9 billion in December 2014, mainly reflecting a £0.7 billion rise in imports of fuels; specifically oil imports (up £0.6 billion). The volume of oil imports reached its highest level since July 2008, growing 37.5 percent between November and December. Aside from fuels, imports of finished manufactures rose by £0.4 billion in December, £0.3 billion of which was attributed to imports of aircraft.

Tower crowned top London tourist attraction T

he Tower of London tops the list of popular 2014 tourist attractions in the capital. The impressive poppy display at the Tower of London did much to boost visitor numbers. Indeed, it is estimated that over five million visitors from around the world visited the First World War commemorative poppy installation.

Between 17 July and 12 November over 100,000 visitors a day queued to pay their respects to the Blood Swept Lands and Seas of Red installation.

Bryn Parry, CEO of Help for Heroes, said, “The Poppies at the Tower installation has been extraordinary. It has become the symbol of reflection and a national focus for remembrance.”

Top 10 London attractions as measured by 365Tickets were: 1. Tower of London; 2. London Eye; 3. Windsor

Tower of London

Castle; 4. SEA LIFE London Aquarium; 5. Tower Bridge Exhibition; 6.

Madame Tussauds; 7. HMS Belfast;

8. Hampton Court Palace; 9. Kew Gardens and 10. Buckingham Palace - The State Rooms.

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Busy start to year for LHR L ondon Heathrow Airport saw its busiest ever January with a record 5.45 million passengers travelling through the airport’s terminals, an increase of 1.3 percent on January 2014

Larger, fuller, quieter aircraft at Heathrow continued to be a driver for passenger growth. Seats per aircraft increased two percent to 209.0, while load factors increased 0.2 percentage points to 70.7 percent. Passengers per aircraft rose 2.2 percent to 147.7 Within emerging markets, passenger volumes were particularly strong to Latin America – with Mexico increasing 17.9 percent and Brazil 4.7 percent.

The Middle East & Central Asia also saw growth of 4.9 percent and passenger volumes to China grew 2.0 percent

54 percent to Mexico, 28.6 percent to Brazil, 11.3 percent to India, and 11.2 percent to Turkey

Heathrow continued to welcome an increasing number of the transfer passengers that make such long-haul routes viable, with year-on-year volumes up 4.3 percent

Heathrow unveiled a £700 million enhanced noise insulation offer for local residents if the Government grants planning approval for Heathrow expansion. Shaped by feedback from a local public consultation, the offer is the only privately-funded of its kind and brings Heathrow in-line with other European hub airports.

Cargo volumes recorded growth of 3.3 percent overall, including increases of

Major low-cost carrier easyJet declared its support for Heathrow expansion, cit-

ing it was in the best interests of its passengers, the airline and the UK economy.

The independent ‘Back Heathrow’ campaign celebrated its 80,000th supporter as it delivered its consultation response to Airports Commission in Westminster. Heathrow CEO John Holland-Kaye said, “I have been overwhelmed by the support from our local community, businesses, Chambers of Commerce and politicians all over the country, unions and airlines. Politicians can now have the confidence that expanding Heathrow is not only Best for Britain, but also Backed by Britain.”

Pedal power raises funds for World AIDS Day H undreds of cyclists joined the Thailand Business Coalition on AIDS charity fundraiser as part of World AIDS Day 2014. Funds raised by this event will be used to help people who are infected and affected by HIV/AIDS; to promote knowledge about HIV/AIDS; to build positive attitudes towards HIV affected people; and to reduce the spread of HIV. The event was held on the Green Bike Lane at Bangkok’s Suvarnabhumi airport. Visit www. tbca.or.th.

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UK tourism revenues set to break records this year V

isitors from overseas are set to earn Britain a record £22 billion this year. The figure would exceed the milestone £20 billion receipts in 2013. More than 35 million visits to the UK are forecast, compared with 29.8 million in 2010.

US tourists are the biggest spenders but the numbers of Chinese and Mexican visitors have soared. Culture Secretary Sajid Javid, revealing the forecasts, said, “We will continue to champion the UK abroad. The tourism sector is driving economic growth for Britain.”

Tourist arrivals to the UK this year is expected to increase, with 35.1 million trips expected in 2015, up 2.5 percent on last year.

“The Olympic Games and the Diamond Jubilee gave us a great platform to showcase the best of Britain

but we didn’t stop there and we have kept up the momentum in the last two years. Britain has so much to of-

fer tourists with its stunning countryside, great heritage and world class sport and culture,” added Mr Javid.

Thailand reels in cash from location filming T

hailand earned a record THB1, 934 million from on-location film shoots in 2014, according to the Ministry of Tourism and Sports’ Thailand Film Office Department.

Some 631 documentaries, advertising slots, TV series, movies and music videos were filmed on location, a slight reduction of 2013. Japanese filmmakers topped the list in 2014 with 133 productions, followed by Europe (122), India (107), China PRC (37) and Hong Kong (28).

In December alone, there were 57 productions that generated THB179.92 million compared to 35 that circulated THB82.1 million during the same month in 2013.

Japan also led the field in December with 14 productions following by nine from Europe, eight from India, five from Hong Kong, three each from China, US and Australia, two from South Korea, one from Taiwan, and nine from others.

Christopher Lee (left) and Roger Moore during filming of ‘The Man with Golden Gun’ in Bangkok.

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Pressure grows on London airport expansion T

he UK’s two largest airports, Heathrow and Gatwick, report record passenger numbers in 2014.

London Heathrow handled 73.4 million passengers while some 38 million people used Gatwick.

Each airport seized on its own growth as further evidence that it needs to be expanded with an extra runway. The government’s Airports Commission, led by Sir Howard Davies, is examining ways in which capacity may be expanded.

Heathrow Airport executives contend that it is the only viable location for more direct flights to what they describe as ‘growing cities’ around the world. Gatwick chiefs are pressing for a second runway, adding that it was the ‘obvious solution for any airport expansion in south east England’.

that long-haul flights need a hub such as Heathrow from which to operate.

wick is the obvious solution if we want all passengers and all types of travel to benefit.”

Both airports have been lobbying intensely with advertising campaigns supporting their arguments that they alone should be the preferred location for any new runway.

“Only by expanding Heathrow can we add direct flights to the world’s growing cities, increase our exports and connect all of the UK to global growth,” he said. “Expanding Heathrow will help Britain win the race for growth.”

The Airports Commission is now considering a short-list of three options and a recommendation is expected later this year. The three options now being reviewed in detail are:

Heathrow Airport CEO John HollandKaye used the decision taken by Vietnam Airlines to move its UK flights from Gatwick to Heathrow as evidence

A Gatwick Airport spokesman retorted, “Airport expansion should be for the many not the few. Our broad range of growth underlines that Gat-

• Third runway at London Heathrow • Lengthening an existing runway at Heathrow • Second runway at London Gatwick

Rouble trouble for Thai resorts T

he economic crisis in Russia is likely to cut visitor numbers from that country to Thailand by up to 25 percent this year, according to the Kasikorn Research Centre.

speaking markets delivered annual growth. The Centre states that the Russian economy faces a crisis caused by the conflict in Ukraine, EU’s sanctions on economic and the fall in oil prices.

It’s a blow for destinations such as Pattaya and Phuket that have prospered in recent years as visitors from Russian

The bank projects that Russian tourist numbers to Thailand will drop by 24.6 percent to 1.19 million in 2015.

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Figures from the Ministry of Tourism and Sports indicate that 1.74 million Russian tourists visited Thailand in 2014, an increase of over 32 percent on 2013. Those visitors generated estimated revenues of some THB122,502 million.

Thai hotels chief calls for action on illegal operators T

The THA is calling for the Ministry of the Interior to take immediate action in the wake of Cabinet approval of the Ministry’s draft law to allow type A (fewer than 50 rooms) and type B (fewer than 50 rooms but with food service) hotels to obtain full certification.

hai Hotels Association is hopeful that amendments to the law governing hotel construction in the country will help the fight against illegal operators.

THA president Surapong Techaruvichit told a conference that development sin online booking technology and banking via the internet were key factors that have been encouraging unlawful hotels to prosper and he called for investigations into serviced apartments and condominiums that may be flouting the law.

“Most illegal operations are small hotels with less than 50 rooms and no meetings facilities or restaurants,” he said.

Although government figures state that there are 7,364 hotels with 366,632 rooms nationwide the THA states that some 9,299 hotels in Thailand than can be booked via the internet. Khun Surapong identified Phuket and Pattaya as having the highest number of illegal hotels.

The THA president said the association and the ministry have been revising hotel regulations for years.

Khun Surapong Techaruvichit, THA President

“Under a draft law currently under consideration, small hotels will be able to register and qualify for the same certification as larger hotels.

However, it could take as much as six months for such legislation to take effect.

Safety and security concerns were uppermost in Khun Surapong’s mind, stressing that illegal hotel operators were ignoring important fire department and police inspections.

“If small hotels were included in the new regulations, it would be much easier to control services and standards. It is expected that the regulations will encourage 50 percent of the illegal hotels to register,” he added.

Upbeat tourism forecast for Thailand K

asikorn Research Centre says tourist arrivals to Thailand will rebound in the first quarter of 2015, forecasting growth of 15 percent to reach 7.3 million visits. The Centre, in its latest report, states that an improving domestic tourism climate and the government’s aggressive marketing campaigns should bolster international tourist arrivals to Thailand. It adds

that a recovery was already evident in the fourth quarter of last year with December tourist arrivals totaling more than 2.84 million - up 11.8 percent compared to the same month in 2013.

The Centre’s forecast is hinged to new marketing activities including the ‘2015 Discover Thainess’ campaign. The report states that the campaign ‘will help

retain Thailand’s status as one of the top destinations for foreign tourists’.

The Centre, with an eye on the lucrative Chinese New Year, is also forecasting revenues of some THB 382.9 billion in the first quarter of 2015 and it adds that any longer term recovery for Thailand’s tourism sector will rely heavily upon visitors from mainland China.

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Investing in UK property

By William Clements and Samuel Goldring

T

he UK continues to be a popular place for international investors whether they are institutional investment businesses, trading companies or high net worth individuals.

There is an ever increasing demand for UK real estate which means the UK generally offers consistently strong returns on investments. The UK offers political stability, a wealth of professionals and a respected legal system to enable investors to successfully manage and maximise their investments.

There are many issues to think about when investing in the UK but the key issues are considered below.

The role of the investor The starting point is how the investor sees their role in holding UK property.

Are they a passive investor looking to take a low profile role? They may decide to grant a long lease of a whole building at a premium and get a regular rental income. If the investor is an individual, that person may be looking to live in the property when visiting the UK and see the value of the underlying property increase over time.

Alternatively, are they an active investor? They may decide to grant shorter leases to tenants of a shopping mall for instance and provide services to the tenants. These types of investments require more management but they have the potential for greater profits.

Perhaps they are a developer investor where they are looking to fund or participate in a development that is due to be built.

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Asset selection Generally, the best class of asset is ‘freehold’ which gives the owner near absolute control over the land. Sometimes it is not possible to acquire this because, for example, some institutions such as local councils are unable to part with the freehold. Sometimes it may not be desirable from a commercial perspective. In this case, the investor will purchase the ‘leasehold’ interest of a property. The lease can vary in length from a few months to 100 plus years and there are various conditions imposed. It is therefore important to seek advice when considering what type of property is being purchased to ensure it meets the investor’s needs.

The ownership structure An investor needs to consider the vehicle to be used for purchasing the

property. With both corporate and individual investors, tax will often be a guiding factor.

For corporate investors, structures range from simple non-UK resident corporate entities to joint venture vehicles and offshore investments funds.

The vehicle will need to be tailored to the investor’s UK activities, commercial objectives and UK tax treatment.

For individual investors structures range from owning property personally, through to offshore companies and/or trusts. The ownership structure will depend on whether the property is residential or not and where the investor is resident and domiciled. The structure will also depend on how the property will be used (will the investor reside in the property or will it be rented) and how the property will be passed to the next generation.

Funding Investors may self-fund but they may choose to obtain finance from other sources. For companies, they may choose to raise finance through debt or equity financing for cash flow reasons, tax or other commercial reasons. For individuals, their wealth may be tied up in other assets. They may choose to finance for tax reasons or to take advantage of competitive mortgage rates.

Tax Tax is an important issue and requires careful consideration. The most immediate issue is Stamp Duty Land Tax (SDLT) which is levied on any purchase of UK real estate regardless of whether the purchaser is resident or not.

There have been a number of significant changes recently to the taxation of UK residential property and particularly the tax treatment of those owned by UK non-residents. A new Annual Tax on Enveloped Dwellings (ATED) has been introduced which is a tax on high value residential property owned through companies. There have also been changes as to how SDLT is calculated and the rates have increased for residential properties held through companies. Generally, non-residents have not been subject to tax on their gains however, residential property owned by non-residents will

be brought into the scope of Capital Gains Tax (CGT) from 6 April 2015.

Immigration and visas UK immigration issues need to be considered as investors may need visas to visit the UK. Immigration is often one of the first things individual investors need to consider if they want to spend more time in the UK following their investment.

The Tier 1 Investor visa route offers investors (and their dependants) the ability to live, settle and obtain British citizenship if they invest a minimum of ÂŁ2 million in specified UK investments. Having been granted a Tier 1 Investor visa, an investor can enter the UK multiple times and live in the UK during the validity of their visa. If ÂŁ2 million is invested, an investor can obtain settlement after five years of being in the UK and British citizenship a year after that provided they spend the requisite time living in the UK. There may be other routes available to visit and live in the UK, such as Tier 1 Entrepreneur visas, and advice should be sought as to which visa is most appropriate.

Professional advisors It is essential to assemble a trusted team of UK professional advisors whether the investor is a company or an individual.

The team of advisors will be invalu-

able in guiding the investor through the myriad of issues involved including surveys, planning permissions, consents and due diligence on the property.

For companies, they will also assist with the finance arrangements and corporate advice on structuring the purchase.

With individuals, they will provide advice on personal tax issues and passing the property to the next generation.

Immigration issues are also important for investors looking to visit, live, settle or obtain British citizenship in the UK and a good team of advisors will be able to advise on this.

For more information please contact William Clements, Partner, Commercial Property Tel: +44 (0)20 7423 8622 Email: wclements@trowers.com Simon Goldring, Partner, Private Wealth and Immigration Tel: +44 (0)20 7423 8634 E-mail: sgoldring@trowers.com

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Office vacancies at 20 year low as rent rises continue T

here is renewed interest in Bangkok’s property market, according to CB Richard Ellis (Thailand). The agency’s latest report states that the domestic midtown market is being fed by a ‘generational shift in local lifestyle that sees younger, smaller households relocating to mass market condominiums’.

The super luxury market has restarted with new projects actively launched in prime downtown locations. Individual foreign investors from Hong Kong and Singapore are once again exploring opportunities in the high end residential properties.

The growth of modern retail has had a positive effect on demand for modern logistics properties.

The downtown condominium market in 2015 will be competitive with the launch of many new developments but continued demand will ensure that opportunities exist for the canny investor, states CBRE. Foreign investors ate being attracted by the more stable political situation and lack of opportunity in their own markets.

The outlook remains bright for super luxury projects. Despite being a slow year overall, 2014 saw units at five super luxury properties achieve recordbreaking prices upwards of THB 300,000 per square metre These were 185 Rajdamri (THB 330,000 per square metre) and The Sukhothai Residences, The Ritz-Carlton Residences Bangkok, Magnolias Waterfront Residences, and Marque Sukhumvit (each at THB 310,000

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per square metre). “The luxury market has proven to be solid with a low cancellation rate, unlike the speculative market,” said Miss Aliwassa Pathnadabutr, Managing Director at CBRE.

management, timely maintenance and renovations are the key to value appreciation in older buildings. However, this is still somewhat of a rarity in Bangkok where the emphasis is on new product.

It is important to note that these properties did not achieve these prices based on a single factor – location, no doubt, played a key role but these projects managed to tick several boxes including understanding market requirement in terms of unit sizes, style of architecture and interior design; space and functionality; a high standard of specifications and attention to detail; other selling points such as internationally branded management, amazing views and (most crucially) prime location.

This is why location is not the sole determinant when it comes to price – it is possible to have a condominium completed before 1997 where prices have barely moved over the past 20 years just down the road from a relatively newer, well-maintained product with better specifications. “Each building,” according to Mr. Pitchon, “has its own individual market characteristics.”

Buyers paying a premium price naturally expect a premium product. “The products that achieve new benchmarks in price are the latest buildings with advanced specifications when compared to older generation buildings,” added Miss Pathnadabutr.

“This is a niche market which serves the top-end segment,” said Mr. James Pitchon, Executive Director – Head of CBRE Research, Thailand.

This price increase is reflected to a somewhat lesser extent in the resale market as well. Buildings that have been completed over the last 10 years in prime locations, such as Athenee Residence and The Park Chidlom, have achieved prices in excess of THB 200,000 per square metres, which is double the price when they were sold off-plan in the mid-2000s. Good

With land prices on the rise, this could be a new golden era in the making for owners of older buildings who invest in the renovation of common areas and system maintenance at their properties, making them more attractive to prospective buyers.

The midtown and suburban market is facing challenges of its own. CBRE calculates more than 100,000 units are due for completion over the next 18 months; the majority of these will be one-bedrooms.

Various developers have reported cancellation rates ranging between 15 -20 percent but the real stress test will come when these units are ready to transfer title. Can developers convert all the presales of units under construction into recognised revenue by transfer of title to buyers or will some speculative buyers default because they cannot resell? Or will some bona fide end user purchasers not be able

at a condominium in a midtown suburban location is higher than the cost per square metre of living area in a townhouse or single detached house due to higher constructions costs.

A 100 square metre condominium on Rattanatibet along the MRT Purple Line would cost about THB 7 million.

For that price you could buy a single detached house with 200 square metres of living area, less than one or two kilometres from a Purple Line station.

Demand for midtown and suburban condominiums will be limited to one bedroom units. Given that prices of single detached houses have been rising because of higher land prices, we see townhouses as being the most affordable and therefore most popular type of landed property.

“The next couple of years will be the years of the townhouses,” added James Pitchon.

Residential Rental There are a growing number of expatriates working in Thailand and most want to rent rather than buy residential accommodation. A significant amount of the demand is for large 2 – 3 bedroom units, which outstrips supply.

Most of the new condominiums (multi-ownership buildings) are of the one bedroom type. There are few new single ownership apartments being built, limiting the stock of two, three and four bedroom units for rent in the most popular expatriate locations such as Silom, Sathorn and Sukhumvit.

In 2015, only two new apartment buildings targeting expats are expected to open in the CBD: The Philo Residence on Sukhumvit Soi 24 and The Willows on Sathorn-Narathiwas Soi 7. “It’s an exciting time for us,” said Theerathorn Prapunpong, Director of Residential Leasing Services, CBRE. “There are a lot of new arrivals in the city, especially compared to last year.” to get mortgages due to the increasingly stringent lending regulations?

Affordable landed property such as townhouses and single detached houses are of much interest to fami-

lies that would like a large living area and perhaps a garden with ample parking. Families needing a large living area will not select a midtown or suburban condominium because the price per square metre of living area

Our big forecast for the year, however, is a likely increase in lump sum rents for two, three and four bedroom units. This would be the first such rise in 25 years and would greatly benefit buy-to-rent condominium investors.

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It’s good to talk

By Jason Marsh

R

emember when we all used to have to contact each other via landline telephones and by hand written or typewritten letters that were dependent upon postal systems? When electronic goods in general were really expensive & mobile phones used to be the size of house bricks? And when Apple’s main product was the Macintosh followed by their saving grace…..the iPod? Before terms and acronyms such as 2G; 3G; 4G; Bluetooth; Bps; Cellular; Coverage; Digital Zoom; EDGE; GB;GPS; GPRS; GSM; Hands-free; HSC SD; HD; HSDPA; HSUPA; IM; IMAP; IrDA; Java; Kbps; LCD; LED; MB; OS; POP3; PUK; QVGA; SAR; TFT; VGA and WiFi? It has all become another language as highlighted in a comedy sketch by brilliant British comedy legends Ronnie Corbett and Harry Enfield entitled ‘My Blackberry Is Not Working’.

I can remember my first Motorola mobile phone 15 years ago which was still chunky; text messaging people was still coming in; my work computer was an IBM with a green monochrome monitor, the printers were huge and noisy drum printers; laptops if picked up incorrectly could slip one or two of your spinal discs; tablets were still something you obtained from a pharmacy and the internet was not yet main stream.

How things change. Apple is now one of the most successful and profitable companies in the world. Motorola, which produced the world’s first portable mobile phone in 1973, was bought out by Google which was only registered as a website domain in 1997. Mobile phones are small devices that you can easily fit in your pocket, laptops and tablets can now weigh less than three pounds. You can now get all-in-one printers which are quiet and cheap to buy, albeit the ink cartridges for the things are an exorbitant 44

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Mobile phones don’t just make phone calls. They also sync with the internet to download your work and personal emails, access webpages and send text messages. They incorporate a calendar, take and store your photos, tell you the weather, provide maps, play videos and music and so the list goes on and on.

Genesis has developed a patented technology that will redefine the future of broadband for an estimated 300 million users worldwide by allowing high speed broadband of up to 400mb/s to people and homes even in the most rural locations without the need to deploy highly expensive and uneconomical fibre optic cable and at a cost of only 1-10 percent of that of installing fibre. This is achieved by utilising the existing copper wire infrastructure.

It was estimated that the number of mobile phones would exceed the world population in 2014. That’s over 7.3 billion active mobile phones. There are more than 100 countries throughout the world where the number of mobile phones exceeds the population.

They have also developed another product specifically for mobile operators who have an overwhelming problem right now, coping with the huge demand placed on the current 3G base station infrastructure by mobile phones.

Russia, for example, has 1.8 times more active mobile phone accounts than people. Brazil has 1.2 times as many. Most of the active devices exist in Asia, particularly China, which is considered by the International Telecommunications Union to be the main market for smartphones and mobile phone growth. Currently, there are some six billion active mobile phones in the world.

Digital Subscriber Lines (DSL) is a common technology delivering internet access to millions of telecommunications customers worldwide.

However, even latest generation DSL suffers from being very sensitive to the distance that the signal has to travel from the exchange to the end users home and bandwidth ‘falls off ’ rapidly the greater the distance.

price. And how could we live without the internet?

Based on the six billion mobile phones in use, only around 1.1 billion are mobile-broadband devices. This doesn’t mean that everyone around the globe will have one, or even that mobile service will exist everywhere. It is down to the increasing number of people that own multiple devices, which will continue to grow as more and more people are given secondary phones to be used for work purposes (the main reason most people would need more than one device).

Genesis Technical Systems was founded in Canada in 2008 by Stephen Cooke, a former telecoms chief designer. The UK subsidiary and operating business was established in 2009 and is based at the Warwick University Science Park.

Optical fibre based internet is prohibitively expensive to deploy and noneconomical in rural areas. BT estimated it would cost GBP 30 billion to lay fibre throughout the UK and France Telecom estimated for them it would be at least a 30 year payback on their investment.

For mobile operators using 3G and Long Term Evolution (LTE) technology their problem is associated with ‘backhaul’ capacity as a result of mobile phones using data-heavy applications such as videos and the difficulty is found at the base stations.

Demand of this traffic is expected to grow by 1,250 percent per cell site in 2014 alone. Current 3G base stations can only offer 8mb/s upstream and downstream.

graph pole or cabinet serving a neighbourhood). The CN connects up to 12 houses in the DSL Ring with the Telcos main network at the Exchange, delivering the high bandwidth over the short distance from the Distribution Point to the Home Gateway box in each house in the ring.

The Exchange Gateway (EXGW) is the third piece of the system and is not necessary in all cases. This is a server that sits in the Exchange and implements the logical bonding where older equipment does not allow this to be done natively.

Genesis has won a number of accolades including ‘Fierce Telecom Last Mile Innovation Award’, ‘TechRev Innovator Award’, ‘Connect Midlands Most Investable Company’ and ‘The Venture Academy Most Investable Company’.

Martin Cooper, credited with the invention of the mobile phone, is pictured with an early example.

Genesis simply re-use the existing copper infrastructure in an optimum way. Over time masses of copper wire worth trillions of dollars has been laid from telephone exchanges to houses throughout the world.

What Genesis has done is to move the sharing point closer to your neighbourhood. With DSL Rings they take the strength of numbers by ‘bonding’ multiple pairs of existing copper wires going to different houses in the neighbourhood to achieve high bandwidth in short distances from the local distribution point to the home. For the user it’s a simple plug and play solution.

With the mBond solutions it also allows the same bonding to be used for ‘backhaul’ between exchanges and 3G base stations with up to 160mbphs upstream and downstream.

Key benefits for telecommunication companies, (Telcos) providing fixed line broadband: • Significant savings on installation of fibre (1-10% of the cost) as infrastructure already exists • High speed broadband (up to

400mb/s) on Telcos existing networks with a simple solution • Shared bandwidth without compromising performance.

• A rural solution • Eco friendly solution by negating the need for fibre it significantly reduces the energy consumption and carbon footprint related to Fibre Optics production and installation Key benefits for mobile operators: • mBond solves 3G mast backhaul capacity problems where other solutions are not feasible • Costs per cell site significantly lower than alternatives (less than 3% of the cost of fibre and approximately nine percent of the cost of microwave with improved performance)

There are over 300 million fixed line broadband subscribers worldwide; over 500 fixed line Telcos worldwide with over 1.2 billion copper phone lines installed. The Genesis DSL Rings offers Telcos the opportunity to offer genuine superfast 400 mb/s broadband service to even their most remote customers at a fraction of the cost of fibre (1-10%) and a ROI in typically two to three years instead of 20-30 years. The time to installation is one day, compared with several months for Fibre Optic.

Finally, please remember that Private Equity (PE) is high risk, the flip side being high returns. PE should not exceed 10 to 15 percent of your overall financial portfolio.

How does it work?

The Home Gateway (HGW) is a proprietary solution provided by Genesis hardware and software embedded in a small modem box and is installed directly in the home.

The Convergence Node (CN) is the network piece of equipment that sits in the Distribution Point (the tele-

Jason Marsh is Senior Adviser at Professional Portfolio International.

E-mail: jason.marsh@ppi-advisory.com Tel: +662 664 0968 Mob: +66 812 789 425

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More rule changes on UK pensions

By Eric Jordan

‘‘Soon I am going to retire and live off my savings; I have no idea what I will do the second week’’ British expatriates may be forgiven if they are confused at the speed with which rules affecting pensions are being rapidly rolled out back home.

Briefly, here are some salient points to sum up the current position: • The government has announced that the existing pension will be replaced by a flat rate pension, believed to be in the region of £150 a week, in 2016 • According to a media report in January, official figures show that less than half of workers will actually receive the full ‘flat rate’ pension • No mention has been made of changing the existing option to defer the claiming of one’s pension beyond 65 to benefit from a 10.4% increase in pension for each full year it is delayed. (So if you wait for 10 years you can double your pension.)

• Despite some rigorous campaigning UK nationals retiring in Thailand, or a number of other listed countries, will still not be eligible to receive annual increments to their pensions which will be frozen from the date of retirement or upon leaving the UK • The state pension age will increase from the present 65 to 66 in 2020, to 67 in 2028 and to 68 in the mid2030’s Changes to private pensions • For decades successive governments have held to the principle that private pensions should be structured to ensure that recipients enjoy a pension for life. This often entailed the purchase of an annuity

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• In his March 2014 budget Chancellor George Osborne turned the long-established principle on its head when he announced that, from April 2015, members of private schemes would have full access to their pensions and would no longer be forced to buy annuities • Members would still be able to take a 25% tax-free lump sum but further withdrawals would be subject to tax at the full marginal rate, which could range from 34% to 56% for larger pension pots • The Chancellor’s comment that pensioners are ‘responsible people’ who can manage their own savings could turn out to be a disastrous assumption. (Research published by Harvard University suggests that people’s ability to make good financial decisions peaks at 53 and then starts to decline.)

• Many pensions are likely to run out in short time while the Treasury stands to gain an estimated £3.8 billion in income tax over the next five years. But how many povertystricken pensioners will have to be supported, and by whom, in later years?

• In September 2014 the Chancellor confirmed that the 55% ‘death charge’ on UK private pensions was to be scrapped, provided that the pensioner dies before reaching 75 years of age. After that there would still be a flat charge of 45% although this is proposed to be changed to the beneficiary’s marginal rate after April 2016 • For UK nationals who have settled abroad, transferring to an offshore QROPS still offers in most cases the best opportunity to dramatically reduce future tax liability • Another compelling reason to transfer from an existing scheme could

be the very solvency of the scheme.

A reported 79% of UK defined benefit schemes are currently in deficit to a combined total of £3.7 billion.

In some cases the deficit exceeds the value of the companies • According to the Occupational Pension Regulatory Authority (OPRA) an astonishing 58,000 schemes have been wound up. For those in failed schemes there is relief in the form of a Pension Protection Fund but its benefits have limitations and its long term existence is not certain • New proposals are now under consideration for the liberation of QROPS schemes (although the ensuing tax treatment has not been clarified) and there is even talk of allowing existing annuities to be converted to cash. One can foresee a spending bonanza, followed by a severe hangover.

Disclaimer: The above notes have been compiled from a number of sources for general information and guidance only. Any decisions regarding pensions should be taken only after seeking professional advice.

Eric Jordan of Professional Portfolio International (PPI) has spent over 18 years in Thailand. If you have any questions on this article or related topics you can contact him at 02 662 664 0968 or eric.jordan@ ppi-advisory.com

Importance of IT in early years

By Ashley Holst and Sandy Bay

R

esearch indicates that by the year 2020 there will be over one million more jobs in the area of computer science than there are graduating students able to fill these positions. By exposing students at the early years to skills such as programming, coding and exploratory practices using technology we will better prepare students for the rapidly evolving technological world ahead of them.

During the 2014-2015 school year Berkeley International School has undertaken a complete redesign of its Kindergarten Technology Lab, moving from a traditional desktop computerbased instructional lab to perhaps the most innovative and cutting edge Technology Exploration Lab in Thailand.

The aim is to prepare fully pupils at BIS for a technology driven future.

The room that once held standard desktop computers now hosts a variety of technology tools where students explore their creativity, develop problem solving skills and begin to learn basic programming skills. Berkeley’s new Technology Exploration Lab was originally constructed for Kindergarten and Lower Elementary but teachers and students from the rest of the school are looking forward to using these new technology tools.

New technology tools - Robots: Berkeley’s Exploration lab has three different types of robots including; Lego WeDos, BeeBots and KIBOs - the newest robots on the market - iPads: The iPads provide access to multiple games that expose students to early programming skills as well as activities that strengthen students’ problem solving skills.

- Green screen: The Lab hosts a fullsize green screen where students are able to dress up and film their own mini-movies using the iPads.

- Legos: Students have access to Lego manipulatives throughout the room.

These Legos are designed to specifically focus on teaching students about simple machines and engineering.

Revamping our older, traditional computer lab into a cutting edge Exploration Lab has required not only a change in resources but also a change in pedagogy. Where technology was once used to practice the traditional skills of literacy and numeracy it now is used to support students’ creativity, problem solving and programming skills as well as promoting innovative thinking.

The skills learned in Kindergarten provide the foundation for future student success, academically and socially.

There are several educational benefits that can be identified through such an Exploratory Lab, including: • Shifting technology use from simple consumption and skill practice to creation and innovation, which is

much higher on Bloom’s Taxonomy • Strengthening problem solving skills both independently and as a group • Exposing students in early years to programming and coding language, which is becoming more and more prevalent in today’s society • Providing a safe environment for students to take risks to be innovative • Encouraging students to collaborate on projects together • Exposing students to technology as a tool for creating instead of simple content consumption • Strengthening language acquisition, fine and gross motor skills Creativity, problem solving and programming skills are such important issues within the field of education that the East Asia Regional Council of Schools (EARCOS) has selected Berkeley International School to lead a cutting-edge, action research project based on their new Kinder Technology Exploration Lab. The findings will be shared with the EARCOS community and other educators interested in the topic. Berkeley is leading the way in technology innovation starting with our youngest learners.

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helping the needy

BCTFN gives vital support to Camillian Home Latkrabang

By John McTaggart

C

and harnesses. There are many interactive stations where the children can play instruments, drums, cymbals, xylophone and gongs. They have added raised fruit and vegetable beds where the children can help grow food for the home’s kitchen.

amillian Home in Latkrabang is a specialised project supporting abandoned children living with disabilities. These include physical and mental disabilities, blindness, limited speech and hearing, autism and HIV. Many of the children have multiple disabilities.

The new three-storey building will allow double the number of children to receive specialised care in a more spacious and visually stimulating environment. The programmes offered include non-formal education, occupational training, a school for the blind, physical therapy, basic daily living skills, art and music therapy as well as many other social activities.

The home was founded by Father Giovanni Contarin who has been living in Thailand for 28 years. Camillian provides a unique and peaceful environment where each child receives specialised care and treatment unavailable in most of Thailand. Each child’s development is different and the programme includes physical and mental stimulation through art, music, physical therapy and one-to-one education. Camillian is currently home to 25 children and there are also daycare and weekend programmes for 60 children living in the local community.

BCTFN has been involved with Camillian in Rayong since the early 1990s and has been supporting projects at the home in Latkrabang for the past seven years.

In 2009 BCTFN provided a specialised hydraulic wheelchair lift for one of the daycare vans. This enabled children using specialised wheelchairs that lived with their families to visit the centre on a daily basis. In 2010 the home needed to renovate the kitchen facilities. BCTFN provided funding for stainless steel kitchen equipment so that 85 children could receive meals while attending classes.

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The next phase to be built on the site will be a covered community area. This will allow the home to become a greater part of the local community, hosting events common throughout Thailand each weekend and holidays.

Over the next three years BCTFN helped to fund the physical therapy programme by adding stainless steel hand rails and, in 2013, work was completed on the aqua therapy pool that enabled children to experience the freedom of water for the first time. This year BCTFN is supporting the equipping of the new physical therapy department which will then be able to accommodate more children on a daily basis.

The home is expanding its facilities which will be open to the wider community. Camillian has added a wheelchair accessible play area which includes specialised full body swings

Camillian home is certified by the Ministry of Education and last year had 16 children receiving formal education with two of the children graduating to grade 6 and moving on to lower secondary school.

Like most charities the biggest challenge is finding funds on a regular basis. BCTFN regularly supports the home and the children in their care who are among the most challenged in Thailand. Visiting them shows that with devotion, care and education all the children and able to reach their full potential and thrive in this tranquil setting.

helping the needy

Supporting Childlife

By Mattieu Frison

W

hen Enfants des MinoritĂŠs arrived at the Childlife shelter that caters for street kids and abused children in 2013 there were around 35 children in the shelter.

The living conditions were very basic with electricity for three hours a day, very unhealthy accommodation with unsuitable toilets and washrooms.

There were no showers – just concrete buckets outside. Children were sleeping on small mattresses on the concrete and the dormitories were flooded during the rainy season. There was insufficient food and a poor diet which resulted in skin and general health problems.

The first priority was to provide a continuous electrical supply using solar energy financed by the French Abbe Pierre Foundation. This was a great success and batteries were added for night time use.

With electricity many things were possible and BCTFN financed refrigerators, freezers, a computer and fans.

These basics really changed the lives of both the children and the staff. Food could be stored for longer with less waste. Working in the office was more

comfortable during the hot season and accounting and administration could be computerised.

Further requests were made and BCTFN helped improved the boys’ dormitories which were regularly flooded.

With the help of French and German organisations a new building was con-

structed which included a new kitchen, boys and girls washrooms and a canteen. The children attended a cooking workshop to teach them how to make healthy meals from local products.

Looking to the future The main problem is the operating budget. More donations are required for food and staff salaries, school fees and all the other needs of the shelter.

Childlife does some organic farming where the main crop is rice but the problem has been to sell the rice while taking care of day to day operations. We are trying to develop a programme based on solidarity where donors buy some of the rice and the remainder is delivered free to other shelters with insufficient funds. More than two tons of rice has been delivered so far.

Our next challenge is to find donors to support the setting up of a school inside the shelter to provide better education for the children.

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fromt the chamber

Bcct Board of Directors 2015 The BCCT is pleased to welcome five new members to the Board of Directors. They are Ali Adam, Billy Chomsakorn, John Christie, Hugh Vanijprabha and Panun Prachuabmoh.

John Christie Ek-Chai Distribution System Co., Ltd. John Christie was born in Scotland and has spent most of my working life with Tesco PLC, most recently in Japan, Poland and Slovakia where he was actively involved in British Chamber activities before moving to Thailand as CEO in Jan 2012. As a keen golfer he regards Thailand as a dream posting and he also become well accustomed to the ‘food, culture and people of this wonderful country’. As a seasoned international CEO, and being part of a large business in Thailand, he intends to use his broad business experience and stakeholder relationships to contribute to the Board of the BCCT. Hugh Vanijprabha Rolls-Royce Thailand Ltd. Hugh Vanijprabha was appointed Managing Director of Rolls-Royce (Thailand) Ltd. in 2014. He is responsible for overseeing all of Rolls-Royce’s activities in Thailand and Myanmar across key business sectors, in particularly, to strengthen longterm relationships with Bangkok Airways, Thai Airways, Petroleum Authority of Thailand (PTT), as well as all military branches.

Hugh Vanijprabha, a British-Thai, was raised and trained in the UK in Electrical Engineering and International Business. He has a proven record in research and development, sales and marketing and developing growth strategies for Thailand’s international trade and investment.

Prior to joining Rolls-Royce he was Executive Director of Thai European Business Association (TEBA) where he served Thai and European investors in Thailand and Europe as a key interlocker with the Thai government.

Ali Adam Arcadia (Thailand) Co., Ltd. Arcadia is an international professional services firm headquartered in Bangkok, providing engineering, design, procurement, project and construction management services for all aspects of the built environment. Up to the end of 2013, we were the management team of a multinational British global engineering firm in Thailand.

As executive director of strategy, Ali Adam is responsible for the operations and strategic plans and for providing vision and dynamic leadership to the company. Prior to co-founding Arcadia he worked for Halcrow Group Ltd for 25 years in a variety of technical and management roles in Asia, North America and Europe. He moved 50

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to Thailand some 12 years ago to assume the position of Regional Director Thailand and he was a member of the Asia regional management team.

He has maintained an active role as Chairman of the BCCT Property and Infrastructure Group and he is also a member of the UK Infrastructure Group and the European ASEAN Business Centre (EABC) Advocacy Group on Rail and Road Infrastructure.

Billy Chomsakorn British Airways Billy Chomsakorn, also known as Chaiyavut Chomsakorn, joined British Airways in April 2014 as a Country Commercial Manager, Thailand.

Born in 1970, Billy grew up in Bangkok and continued his high school studies in Melbourne where he has also graduated from La Trobe University in 1994. In 1998 Billy studied Tourism Management at Victoria University of Technology.

Billy began his career in the travel industry in 1994 while he was in his final year of the university and was in the same industry until 2000. During that time Billy has undertaken all the duties required and held various positions in the travel industry in Melbourne, Australia.

He returned to Thailand in December 2000 to join Emirates as Sales Executive. In 2004 he moved to Etihad Airways as Sales and Marketing Manager for Thailand and the Mekong region.

Panun Prachuabmoh The Shell Company of Thailand Ltd Panun started his career with Shell in 1990 and has held several key positions including Retail Finance Manager – Thailand, Regional Finance Manager of the company’s bitumen business across Asia Pacific and his previous role as Regional Lubricant Finance Manager covering Thailand, Korea, Vietnam and Philippines. He also has management experience in other functions including HR, Sales & Marketing and Business Development. In 2012 he was appointed as an Executive on the Board of Directors and also placed in charge of finance activities in Thailand and Vietnam. He is also chairman of the Provident Fund Committee.

For a copy of the report presented at the Chamber’s AGM in January, please use this link: http://members.bccthai.com/ asp/view_doc.asp?DocCID=2684

Chamber offers vital support to SMEs

By Chris Thatcher

T

he BCCT has many SME members – 80 percent is the oft-quoted figure.

We have tried for some time to find new ways to support them and recently our Board Director Stephen Frost came up with the idea of seeking ways that other BCCT members could support our SME members.

We have compiled a list of some of the areas that could be addressed. Our plan is to arrange a series of SME events throughout 2015 at which other member companies (large and small) could offer to provide some support and expertise to SMEs whilst at the same time promoting their respective businesses to other BCCT members.

We trust that such a series of events could prove to be helpful to SME members and that other BCCT companies

would offer support on a one-off basis free of charge.

If you feel that you have the knowledge and inclination to aid such an initiative, please contact me to outline which areas you are willing to support and the name of the person you would propose to share their expertise.

dren, health insurance and Thai social security) • Education (Thai schools, international schools, universities, Thai language schools) We invite suggestions for other topics and we will be pleased to incorporate them into the programme of events.

Possible workshop themes: • Visas and work permits • Accounting and auditing • Taxation (includes PIT, CIT, VAT, withholding taxes and stamp duty) • Buying and leasing of property • Legal • Employment laws and human resources • Customs and import/export • Healthcare (doctors, dentists, opticians, hospitals, healthcare for chil-

Chris Thatcher is a Vice Chairman of the BCCT. He can be contacted at: christhatcher1@gmail.com

Football remembers A spirited BCCT Bangkok Angels team, generously sponsored by Cornerstone, defeated the German Embassy 3-1 in the final of the football tournament organised to commemorate the truce that took place on Christmas Day during World War I in 1914. Pictured bottom left, British Ambassador Mark Kent (centre) presented the trophy to BCCT Bangkok Angels captain Colin Johnson.

BCCT Messenger Somphong Puengpien has bid farewell to the Chamber after more than 40 years of loyal service. Executive Director Greg Watkins (left) and BCCT Chairman Simon Matthews (right) presented Khun Somphong with a farewell gift at a retirement party attended by Directors and members. Our thanks to Khun Somphong and we wish him a long and happy retirement.

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BiSEA conference hears updates on UKTI initiatives R

also been striving to complete the essential work necessary to achieve BCC accreditation for ‘governance and resources’.

epresentatives of British Chambers of Commerce in Malaysia, Singapore, Indonesia, Myanmar, Cambodia, Vietnam and Thailand attended the latest Britain in South East Asia (BiSEA) conference in Kuala Lumpur.

BCCT Executive Director Greg Watkins told the conference that the Chamber had enjoyed some considerable success in 2014, welcoming 127 new members and recording an overall increase in membership compared to 2013. He reminded delegates of the challenges facing UK companies when seeking to conduct business in Thailand. Greg Watkins also spoke about the important integration of services at the BCCT and UKTI Thailand.

Thailand was one of only seven markets given approval by the British government to provide UKTI services

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Nick White (left) of Trowers & Hamlins with Greg Watkins.

directly to UK customers. The success of this initial phase in Thailand has prompted UKTI to seek to move from a grant-based operation to a contract model with effect from 2016.

The Chamber team in Bangkok has

Moe Kyi Phu, from BCC Myanmar, reported that there was still considerable interest in joining the Chamber from UK and international companies. The Chamber had organised a number of key events in the second half of 2014 with an average RSVP rate of 80 - 90 percent.

With some 136 members, a new website and the creation of an Energy Working Group, BCC Myanmar is looking to build upon these solid foundations in 2015.

The next BiSEA conference will be held in Thailand later this year – dates and venue to be confirmed. For more information about the important work of BiSEA, please contact Greg Watkins: greg@bccthai.com.

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 1/2015 53

Member News

ABB backs solar impulse team on global flight A

BB is backing the team that is currently making an historic round-the-world journey in an aircraft powered solely by energy from the sun.

ABB and Solar Impulse formed an alliance ahead of the series of flights that began in Abu Dhabi on 9 March.

The innovation and technology alliance between the two companies is designed to advance a shared vision of reducing resource consumption and increasing the use of renewable energy.

“Solar Impulse will inspire a new generation to embrace innovation and technology to solve the planet’s biggest challenges,” said ABB Chief Executive Officer Ulrich Spiesshofer. “ABB will be with the Solar Impulse team every mile of its journey.”

Three ABB engineers have joined the Solar Impulse team to contribute both expertise and passion. Their work includes improving control systems for ground operations, enhancing the charging electronics for the plane’s battery systems and resolving any obstacles that may emerge during this historic flight.

On the plane’s 40,000-kilometre route, piloting duties are being shared between Bertrand Piccard and Andre Borschberg. There are scheduled stops in Muscat, Oman; Varanasi and Ahmedabad in India; Chongqing and Nanjing in China; and Phoenix, Arizona in the U.S. It will also stop in either Europe or North Africa.

Among challenges before the mission concludes in Abu Dhabi in mid-2015 will be a non-stop flight lasting five days between China and Hawaii. The plane, powered by 17,248 solar cells, will flies higher

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than Mount Everest each day while charging fully its batteries to stay aloft at night.

ABB says that its enthusiasm for Solar Impulse stems not merely from shared faith in innovation and technology but also from the company’s credo ‘power and productivity for a better world’.

The Solar Impulse team says that their ethos mirrors the aspirations of ABB to ‘help boost operational efficiency, reduce resource use, enable sustainable transportation and increase penetration of clean, renewable energy’.

As the world’s second-largest supplier of solar inverters and one of the largest suppliers to the wind power industry, ABB is a leader in integrating renewables efficiently and reliably into power grids.

ABB is helping to build the most comprehensive electric vehicle fast-charging network in Europe and is supplying key equipment for the world’s

largest network of fast chargers for electric cars in China.

Bertrand Piccard said that the addition of ABB, with its leading technologies that enable energy generation from renewable projects as well as boost efficiency, to Solar Impulse’s team have reinforced their ability to demonstrate the power of innovation and clean technology.

“This is what the world needs,” said Piccard, the Swiss aviation pioneer who was part of the first team to circle the globe by balloon in 1999. “Otherwise, we’re going to waste all our natural resources.”

Since 2010 Bertrand Piccard and Andre Borschberg have together set eight international aviation records as they crossed Europe, North Africa and the United States in a prototype plane powered only by the sun.

Visit http://new.abb.com/betterworld for more information about ABB’s alliance with Solar Impulse.

Member News

Royal Academy artist creates mural B

oarding students at the Prem Tinsulanonda International School have been honing their skills with British portrait artist Chris Robinson. Chris worked with the students to create a colourful and playful mural that explored their dreams and aspirations. The students attended workshops that introduced them to portraiture and figurative drawing techniques.

Chris Robinson studied art as an MA student at the Royal Academy London, winning the Landseer Medal for Drawing and the painting prize for composition. He has been a professional artist for over 40 years and has worked with NGOs and other organisations on art and humanitarian projects including the World Wildlife Fund Madagascar, Andrew Lees Trust Madagascar, Amnesty International Burma and Thailand and The Burma Trust Aung San Suu Kyi. He has presented exhibitions and other art promotions for the Burma cause and in partnership with Suu Kyi, meeting her twice in Rangoon in 1995 and 1996, being given access whilst under house arrest to paint her portrait.

Working with the students as part of Traidhos Artist Residency Thailand, Chris said, “The experience has reawakened my desire to bring uninhibited imagination and personal aspirations back into the focus of my own work.” Student Alisha Colson, 14, said “I’ve really enjoyed working with Chris, using my imagination and getting to see myself as part of a mural.”

Traidhos Artist Residency Thailand is a residency and training programme that brings artists into classrooms to work alongside teachers, as well as providing development and production opportunities to creative practitioners.

For more information go to www.artistresidencythailand.com.

League leaders at Shrewsbury A

s the university offers start to roll in for Sixth Form students, two students at Shrewsbury International School in Bangkok are jumping for joy at the news that they secured unconditional offers to prestigious Ivy League institutions in the United States.

Thanatchaporn (Mind) Apivessa will be heading to Cornell University, whilst Monnawat (Book) Krasaesian will follow in the footsteps of Class of 2014 Graduate, Sirada (Am) Sripakdeevong by taking up a place at Brown University.

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Member News

New global connections with Regent’s Round Square Exchange Programme R

egent’s International School Bangkok continues to uphold its celebration of internationalism as it welcomes students from Peru and Australia.

“As the only Round Square School in Bangkok, Regent’s has connections with nearly 150 schools from around the world that share the same philosophies that teach internationalism, democracy, environmental understanding and respect, adventure, leadership and service to others. This opportunity is unique to the network of schools for

students to study and experience other countries and cultures all over the world,” explained Alicia Warner.

Exchange students are welcomed into the British international school’s extensive Boarding house and cared for by the boarding parents who ensure their time at the school is comfortable.

This specific programme aims to give Regent’s and visiting students the opportunity to make global connections in both sides of the reciprocal exchange.

David Green, Round Square Coordinator at the school, said, “The International Exchange Programme gives students the opportunity for what can be a truly life-changing experience, thanks to our links to 150 top class schools all over the world in the Round Square family.

Exchange students come back from their experiences with a new sense of independence, cultural awareness and motivation for their studies after living the Round Square ethos of challenge and stepping away from the comfort zone.”

HSBC backs Bangkok Airways with aircraft financing deal H

SBC Thailand has assisted Thailand’s boutique airline Bangkok Airways with the acquisition of four new ATR 72-600 turboprop aircraft. HSBC was appointed to act as the mandated lead arranger of a US$ 70 million financing facility that enables the airline to expand its network of its domestic and regional services.

Pictured are Puttipong PrasarttongOsoth (2nd left), President of Bangkok Airways; Anawat Leelawatwatana, Deputy Vice President – Finance; Siew Meng Tan (2nd right), CEO of HSBC Thailand and Krisda Phatcharoen (far right), the bank’s Head of Commercial Banking.

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Member News

Regent’s launches smartphone app R

egent’s International School Bangkok is launching a smartphone app. The app allows parents and students to track news and events at the school. The school has also introduced a ‘bring your own device’ (BYOD) scheme that sees the use of tablets during classes as a means of enhancing classroom learning and information sharing.

School Principal Peter Hogan said, “We’re incredibly excited to be able to offer such an innovative form of communication to our technology savvy school community. I’m sure it will prove beneficial to us all to be able to share information both quickly and efficiently”.

Vanit Pakkingmuang, President of Thailand’s Coconut Community, hosted a dinner to welcome Leng Xiao Ming, Governor of Dongguan province in China.

The dinner took place in the Saladaeng Room at Bangkok’s Dusit Thani hotel.

Architects back Aurecon Families with young children enjoyed a morning of fabulous fun and games at the KIS International School Winter Wonderland picnic with arts, crafts, scavenger hunt and other entertainment.

Aurecon has been recognised as one of the top five building services and structural engineers in the world by the UK-based Building Design’s prestigious World Architecture 100 (WA100) global ranking of ‘Best partners’, as voted by leading global architects.

Mathieu Lacabanne is the new General Manager of the Dream Hotel, Bangkok. His hospitality career spans over 18 years, ranging from hotel operations to senior managements positions. Mathieu began his career with Accor in 1997 and has held a variety of assignments in France and the USA before relocating to Asia in 2005.

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Member News

Get set for rent rises T

he office market in Bangkok continues to be shaped by the continued lack of supply, according to DZT Debenham Tie Leung (Thailand).

Thia lack of supply is in part because of high land prices in the CBD and relatively modest rental returns from offices. In Q1 2015 DTZ anticipated that AIA Sathorn Tower and the Bhiraj Tower would be completed, bringing a combined total of 86,000 sq m of new stock to the market. Following the completion of these two projects there will once again be a dearth of new supply to the market, with other new projects not being planned for completion until 2016.

Despite the lack of supply in the market, rentals have remained stable and in Q4 2014 average rental levels for prime locations settled at THB745 per sq m per month. This showed a THB45 or 6.4 percent increase y-o-y from Q4 2013.

Rents did not increase significantly in 2014, in part because of the political turmoil that hampered growth in H1. With these issues now resolved, a number of landlords are looking to increase rents in 2015.

Retail Consumer confidence struggled throughout 2014 and this continued into the final quarter. A major factor contributing to this declining confidence was the ongoing political turmoil that dogged the first half of 2014 and the ramifications of which continued to affect the market in H2.

The Thai government has gone to great lengths to help improve consumer confidence, as well as trying to elevate Thailand’s appearance to the international market.

There were a number of new developments that were completed in 2014.

Two of the most notable were Siam Square located at the Siam BTS station and Central Embassy located at Phloen Chit BTS station. These developments extended to 32,600 sq m and 41,000 sq m in size respectively.

Residential The changing political landscape in Bangkok has made investors and individuals think more strategically about

where they buy condominiums. In turn, this has meant that developers are keener to launch projects outside of downtown areas.

The government’s approval of more mass transit lines helped to move demand to areas outside of the CBD. The sizes of units also continued to decrease with one-bedroom condos, which are more affordable for the middle class buyers, proving popular.

The average price for condominiums in fringe locations increased steadily throughout the year and this is set to continue in 2015 as demand continues to shift location.

DTZ expects that demand will continue to shift to less central locations. Notwithstanding this, demand for top quality projects with superb locations and superior specifications remain of interest and developers continue to be able to sell 100 percent of their development prior to launching. The level of household debt continues to rise in Thailand.

Combining this with the general slow pace of the Thai economy has resulted in limited growth in consumer confidence.

The average occupancy rate rose once again in Q4 2014 to 91.5 percent, continuing the trend that has been a feature of the market throughout the year. The first right of refusal has become a key feature of the market as MNC’s based in the CBD struggle to expand significantly enough to cope with their business demands. This has left a number of prominent modern offices at 100 percent occupancy all year.

Net absorption was low in Q4 2014 that was in part due to tenants expecting to move to new CBD locations in early 2015. Absorption is expected to increase in 2015 in light of the two new office buildings.

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The Whizdom Society by Magnolia Quality Development Corporation Limited hosted ‘The Art of Living Well - 2015’ event for residents of Whizdom Condominium and The Muse. The event was conducted by Ajarn Thosaporn Sirtula, a well-known ‘guru’ of living science. Residents enjoyed learning how to decorate their homes and their workplaces properly.

Member News

Dusit strengthens ties with Japan D

usit International and Prince Hotels (Japan) have entered into a strategic partnership that positions both companies to expand their reach in the region and beyond. The partnership takes the form of a marketing alliance, formalised by the signing of a memorandum of understanding on 17 February 2015 at the Dusit Thani Bangkok hotel in Thailand.

The alliance allows for the companies to leverage on each other’s local expertise, as well as sales & marketing resources, to create opportunities for cross-selling, marketing and promotions.

This partnership demonstrates Dusit’s growing commitment to the Japanese market, which ranks amongst the top three inbound geographic source markets both to Thailand as well as to Dusit Hotels and Resorts. Recognising the significance of this market Dusit established a Japanese Centre within its Bangkok headquarters in 2002, followed by the opening of a Regional Sales Office in Tokyo in 2013.

From left to right: Takashi Hagiwara; Kiyohisa Tokunaga; Koga Shinobu; Masanori Kobayashi; Chanin Donavanik; Stan Brown and Victor Osumi.

Chanin Donavanik, Managing Director and CEO of Dusit International, said, “Japan is a key feeder market for Dusit across the group. This is especially significant as we prepare to launch our highly anticipated Dusit Thani Guam Resort in Q2, the tallest build-

ing on the island and the newest resort to open since 1999. Being home grown hospitality brands who share common core values of Asian hospitality, this mutually beneficial alliance enables us to strengthen our brand presence as well our international footprints.”

Prince Hotels is Japan’s largest hotel chain, operating 51 hotels across Japan, China, Taiwan, Malaysia and Hawaii, U.S.A. Prince Hotels also comprises a golf and ski resort business with a further 28 golf courses and 10 ski resorts currently in operation.

Thailand ranks amongst the top 5 inbound source markets for Japan, as well as for Prince Hotels.

“We are extremely happy to have reached this agreement on a marketing alliance with Dusit International,” said Masanori Kobayashi, President of Prince Hotels. “We expect that the synergies between Dusit and Prince Hotels will enhance international awareness of both brands.”

The Spanish Food festival at the Doubletree by Hilton Hotel Sukhumvit Bangkok was officially opened by Senor Antonio Casado Rigalt (second from right), Deputy of Head of Mission at the Embassy of Spain in Bangkok.

Senor Antonio was welcomed to the hotel’s DEE LITE restaurant by General Manager David Ecija (right) and executive chef Lluis Cantons.

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Member News

Boom times continue for hotel investment J

LL’s hospitality experts are projecting that global hotel transaction volumes will reach

an eight-year high of between US$65 - 68 billion in 2015, representing a 15 percent increase over 2014 volumes.

JLL’s forecast is based on the firm’s 2015 Hotel Investment Outlook, a forward-looking, global analysis that tracks key factors affecting the hotel investment market.

The key drivers of hotel transaction activity globally in 2015 include: strong demand fundamentals, increased liquidity in the debt markets, record levels of single-asset trades, increased portfolio activity in secondary markets and a swell in off-shore capital.

In Asia Pacific, JLL also anticipates a transaction volume increase of 15 percent, which would mean around US$8.5 billion of transactions. There is a growing interest in Japan, in particular for portfolio deals in the country, and a steady confidence in Australia. Indonesia will be a favoured market driven in part by currency plays, and liquidity in China is set to rise as well as policy around outbound capital has been eased and focus increases on cross border investment.

United States-based private equity funds and Middle East investors are expected to remain among the top exporters of outbound capital. It is the Chinese, however; who will lead the pack in terms of year-over-year increases in capital deployed.

Chinese outbound capital experienced unprecedented growth in 2014 driven by the strength of China’s growing economy and appreciating currency.

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restrictions on big-ticket foreign investments and simultaneously loosened the approval process for overseas purchases. This adjustment allows Chinese investors to more easily access key global markets such as New York, San Francisco, London, Paris and Sydney.

JLL expects Chinese outbound capital to account for US$5 billion in 2015, a five-fold increase on 2014. This places Chinese investors among the ranks of top exporters such as the United States and the Middle East; just a few years ago China did not feature in the top-ten list.

Scott Hetherington, Chief Executive Officer Asia, JLL Hotels and Hospitality Group, commented: “China’s policy change allows numerous investors to compete in international real estate for assets including hotels. We expect this heightened level of activity to become the new norm, and Chinese investors will gain scale in gateway cities.”

He added: “We believe Japan will be the stand-out market in the region, led by the depreciation of its currency, the availability of stock and operating conditions.”

Craig Collins, CEO, JLL Hotels & Hospitality Group, Australasia said: “After

a record year of transactional volume in Australia, foreign buyer activity for prime CBD hotels has certainly not slowed, especially with the continued and strong investment interest from China. We also expect metropolitan and regional hotels to remain a major focus of domestic, and increasingly, offshore groups. Australia’s stable government, transparency and growing tourism make it a continued safe haven for buyers.”

In Thailand, hotel investment activity is expected to remain strong in 2015. Mike Batchelor, Managing Director - Investment Sales, Hotels & Hospitality Group at JLL, said “Despite a series of political unrests and upheavals, Thailand has remained attractive as a hotel investment destination. This is reflected by strong investment activity recorded in recent years with transactional volume reaching over US$ 330 million in 2013 and 2014.

As the political situation across the country has stabilised, we expect investment activity in Thailand to remain robust in 2015. In addition, while well-capitalised domestic investors will continue to dominate the hotel investment market, regional investors are likely to be more actively involved this year.”

Legal update from BIA Bangkok International Associates has now completed the 2014 update to their Thailand Business and Legal Guide.

The Guide is a 100,000 word summary in English of the laws that affect those operating businesses in Thailand or investors in Thailand. More details at: www.bia.co.th.

Member News

Harrow students shine in business competition H

arrow Bangkok’s studentled business, Boucase, was crowned Thailand’s Company of the Year 2014 at the national Junior Achievement (JA) business competition finals held at Bangkok Patana School.

After launching and operating their company throughout Term 1 the Boucase team pitched their product – a multifunctional waterproof pencil case made from environmentally friendly materials – to a panel of judges at the event in competition with seven other teams from schools throughout Bangkok.

The annual business competition for young entrepreneurs tests students’ business acumen and ingenuity as well as their ability to solve problems

and function as a cohesive team. In addition to winning the national title, Boucase also came away with

prizes in both the trade fair and TV commercial categories.

Bank seals finance deal on new Thai Smile aircraft S

tandard Chartered Bank has teamed up with Natixis to seal a multi-million dollar deal on two Airbus 320-200 aircraft for Thai Airways.

The 12-year financing facilities for these two aircraft were arranged and funded jointly by the two banks. The aircraft were delivered in October and December last year and sub-leased to Thai Smile, the wholly owned subsidiary of Thai Airways.

“We are very pleased to partner with Thai Airways in the financing of the group’s fleet. This transaction high-

lights the Bank’s continued commitment to supporting the growth plans of key clients in our franchise,” said

Simon Perkins, Managing Director of Aviation Finance for Standard Chartered Bank.

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Member News

Shrewsbury School tunes up for piano masterclass P

rofessors from London’s Royal College of Music (RCM) will be at Shrewsbury International School in Bangkok this July to run the RCM’s inaugural international piano masterclass in Asia.

also take part in student recitals. The course concludes with a gala concert and the presentation of attendance certificates from the Royal College of Music.

The five day course is aimed at talented young pianists, aged 12-25 years (Grade 6 or above), who wish to take their playing to the next level.

Throughout the week these students will benefit from expert guidance and tuition from RCM professors, watch their tutors perform in concert and

RCM tutor Professor Vanessa Latarche said, “I see it as a wonderful opportunity for collaboration with the excellent music department of Shrewsbury International School. The professors will be able to work closely and intensively with the participants to hone their pianistic and musical skills.”

Centara Hotels & Resorts CEO Thirayuth Chirathivat has once again been named as ‘Asia’s Top Influential Person in Travel Business’ at the Now Travel Asia Awards.

He received warm congratulations from his colleagues. Pictured, from left to right, are Chris Bailey, Senior VP for Sales and Marketing; Suparat Chirathivat, VP of Centara International Management; Board Chairman Suthikiati Chirathivat; Thirayuth Chirathivat; Thirakiati Chirathivat, VP for Procurement; Supatra Chirathivat, Senior VP for Corporate Affairs and Social Responsibilities and Robert Maurer-Loeffler, GM of Centara Grand at CentralWorld.

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Jenny Ham has won the ladies annual International Schools Golf Tournament 2015. The competition, held at the President Golf and Country Club, attracted some 80 golfers from schools in the Bangkok area. Jenny is a student at Regent’s International School.

Member News

SET welcomes Standard Chartered Bank T

hailand Clearing House Co., Ltd. (TCH), a subsidiary of The Stock Exchange of Thailand (SET), has appointed Standard Chartered Bank (Thai) pcl as a settlement bank for securities market. The new services began on February 2 in order to ‘help strengthen clearing and settlement process for the Thai capital market and provide services for its clearing house members’.

TCH is in the process of building a new settlement and depository system, to be launched in mid-2015.

Lyn Kok, President and Chief Executive Officer, Thailand and Greater Mekong, Standard Chartered Bank said, “We are proud to be able to play a key role in strengthening the development of Thailand’s capital market. With our financial strength, deep financial

expertise and vast international network that spans all 10 ASEAN countries and 70 markets around the globe, we are

committed to using our resources to support TCH, brokers and investors to embrace opportunities in Thailand.”

Nithi takes on new banking role Standard Chartered Bank (Thai) Pcl. has appointed Nithi Laophulsuk (pictured) as its new Head of Legal and Compliance, Thailand. Khun Nithi has been with the Bank since 2010. He has more than 15 years of legal experience and has worked for a number of leading law firms in Thailand. Prior to joining Standard Chartered, he worked for international law firm Hunton & Williams (Thailand) Ltd. where he advised Thai and multinational financial institutions and companies on banking law, corporate law, deal structuring, corporate financing, dispute resolution and mergers and acquisitions.

Hua Hin International School has appointed Julie Wood as Head Teacher. Julie is returning to Thailand after a three-year spell in the United Kingdom. She was previously Head of School at St Andrews, Sukhumvit 107, Bangkok and was also VicePrincipal of International School Park City in Kuala Lumpur. Julie’s former roles in the UK include Principal Lecturer and Assistant Dean at University of St Mark and St John, Plymouth. Construction of Hua Hin International School is now well advanced and is scheduled to open later this year with pupils of many nationalities.

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Dataconsult

Chamber Events

By the Numbers

Chris Bruton Director, Dataconsult Ltd.

S

everal comparative indices have appeared recently, putting Thailand in a fairly but not highly positive light in relation to other countries in the Region. Below we summarise some of the significant findings.

HSBC Expatriate Experience Survey (table 1)

by Political & Economic Risk Consultancy (PERC), covered 16 countries.

In the Transparency International rating, Thailand has improved its position from 2013, reaching 85th position, alongside the Philippines, up from 102nd position in 2013. Over the past decade, Thailand had typically ranked well ahead of the Philippines until a reversal in 2013. Although still relatively poorly rated, Thailand is well ahead of Indonesia and the Indochina countries.

It is notable that Singapore, which had previously ranked in the top 10 countries, is currently rated at 16th place, behind Malaysia at 5th position. This rating may surprise some international companies with experience in these countries.

In the PERC survey, Thailand rates relatively poorly behind not only league leaders Singapore and Malaysia but also China, the Philippines, and even Cambodia, owing to a decline in Thailand’s rating in 2014. Recent corruption scandals will not help Thailand ratings in the future unless decisive steps are taken rather than just wishful talking.

In this annual survey of expatriate perceptions about different aspect of life in foreign countries, Thailand rates overall 7th out of 34 countries surveyed.

Major Thai advantages include higher quality of life (69% of respondants), greater levels of disposable income (72%), spending less on utilities (71%), accommodation (70%), transport (69%) and groceries (66%). Thailand rates very highly in childcare and general experience of raising children, but rates very low in education and healthcare for children.

World Justice Project: Rule of Law Index (table 4)

Corruption Perception Indices (tables 2 and 3)

World Talent Rating (table 5)

Two series of indices appeared recently, the first by Transparency International, covering 175 countries, and the second

ment, executive and technical talent.

Of the 7 countries in the Asian Region, Thailand currently ranks behind Malaysia, Singapore, and Indonesia, but ahead of the Philippines, China and India. Worldwide, Thailand rates half-way down the overall listing, at 34, slipping from a previous average of around 25th place in previous years.

Heritage Foundation Ratings (tables 6 and 7) The Heritage Foundation, which styles itself as a “conservative� oriented institution, annually produces ratings of 186 countries, in terms of their Macro-Economic and Freedom status, with ratings ranging from 100 down to zero. Thailand achieved a composite score of 63.3, behind Singapore (89.4), Malaysia (69.6) and Brunei (69.0). The worst performers in the ASEAN Region are Laos (51.2), Vietnam (50.8) and Myanmar (46.5).

The World Justice Project rates 99 countries annually for various factors of justice. At position 47, Thailand ranks halfway down the rating scale, alongside Indonesia, behind Singapore and Malaysia. Better than overall ratings are achieved for criminal justice and absence of corruption, with very poor rating for civil justice and poor ratings for constraints on government power and regulatory enforcement.

The Macro-Economic ratings give tariff, tax, population, GDP, GDP per capita, unemployment, inflation, foreign direct investment, together with tax and government spending relative to GDP. The Freedom Ratings evaluate each country in various respects notably property rights, corruption, fiscal freedom, government spending, business, labour, monetary, trade, investment and financial freedom.

The Switzerland-based institution IMD has for the past decade produced a rating of 60 countries relating to development and availability of manage-

Table 1: HSBC Expatriate Experience Survey

(ranked among 34 countries)

Economics Country

Overall Score

Rank

House hold income

Personal disposable income

Local Economic Satis faction

Rank

Setting up

Integration

Raising Children

Life Quality

Rank

Child care

Education

Health

Exper ience

Singapore

2

3

6

11

1

3

3

27

4

5

16

8

6

7

China

3

1

1

1

5

26

34

7

23

12

7

3

24

12

Thailand

7

13

16

3

20

6

10

10

5

14

1

27

28

3

India

9

12

4

17

16

20

32

11

17

6

2

2

20

18

Vietnam

16

8

10

2

17

15

14

13

19

25

3

18

33

15

Malaysia

19

16

13

14

19

18

21

22

20

24

20

23

26

10

Source: HSBC Expat Explorer Survey 2014

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Table 2: IMD World Talent Ranking

(Ranking among 60 countries)

Country

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Malaysia

5

9

11

14

6

15

12

14

17

20

Singapore

16

17

9

17

9

8

2

4

7

10

Indonesia

25

32

42

32

37

41

40

50

50

49

Thailand

34

27

27

24

24

25

24

31

26

25

Philippines

41

29

35

46

45

42

41

47

47

38

China

43

45

50

43

46

50

50

40

44

48

India

48

42

34

29

34

31

33

26

28

29

Source: HSBC Expat Explorer Survey 2014

Table 3: Corruption Perception Index

(Ranking among 175 countries)

Country

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Singapore

7

5

5

5

7

3

4

4

5

5

Malaysia

50

53

54

60

56

56

47

43

44

39

India

85

94

94

95

87

84

85

72

70

88

Philippines

85

94

105

129

134

139

141

131

121

117

Thailand

85

102

88

80

78

84

80

84

63

59

China

100

80

80

75

78

79

72

72

70

78

Indonesia

107

114

118

100

110

111

126

143

130

137

Vietnam

119

116

123

112

116

120

121

123

111

107

Laos

145

140

160

154

154

158

151

162

111

77

Cambodia

156

160

157

164

154

158

166

168

151

130

Myanmar

156

157

172

180

176

178

178

179

160

155

Source: Transparency International 2014 Note: Brunei not evaluated

Table 4: Corruption Impact on the Business Environment

(Grades 0 to 10)

Country

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Singapore

1.60

0.74

0.67

0.37

0.99

0.92

1.13

1.20

1.30

0.65

Malaysia

5.25

5.38

5.59

5.70

6.05

7.00

6.37

6.25

6.13

6.80

China

7.10

7.79

7.00

7.93

6.70

7.30

7.98

6.29

7.58

7.68

Philippines

7.85

8.28

9.35

8.90

8.25

7.68

9.00

9.40

7.80

8.80

Cambodia

8.00

7.84

6.83

9.27

8.30

8.10

8.50

9.10

n.a.

n.a.

Thailand

8.25

6.83

6.57

7.55

7.33

6.76

8.00

8.03

7.64

7.20

Vietnam

8.73

8.13

7.75

8.30

7.13

7.40

7.75

7.54

7.91

8.65

Indonesia

8.85

8.83

8.50

9.25

9.07

7.69

7.98

8.03

8.16

9.10

India

9.15

8.95

8.75

8.67

8.23

6.50

7.25

6.67

6.76

8.63

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Source: Political and Economic Risk Consultancy 2014

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Table 5: World Justice Project : Rule of Law Index 2014

(Ranking among 99 countries)

Country

Over All

Constraints on Gov’t Powers

Absence of Corruption

Open Gov't

Fundamental Rights

Order & Security

Regulatory Enforcement

Civil Justice

Criminal Justice

Singapore

10

21

5

21

26

2

8

6

2

Malaysia

35

49

28

42

85

12

48

37

33

Indonesia

46

31

80

29

65

42

46

67

71

Thailand

47

63

40

50

52

48

62

89

35

Philippines

60

39

44

55

67

56

60

82

73

Vietnam

65

86

59

77

71

32

86

73

41

India

66

35

72

30

63

95

81

90

48

China

76

92

49

74

96

29

78

79

51

Myanmar

89

82

63

96

97

60

92

86

89

Source: World Justice Project: Rule of Law Index 2014

Table 6: Heritage Foundation: Economic Freedom Map Macro-economic Ratings

(Ranking among 186 countries)

Country

Overall score

Tariff rate

Income tax rate

Corporate tax rate

Population (millions)

GDP (billions)

GDP per capita

Unemployment rate

Inflation rate

FDI inflow (millions)

Tax burden % gdp

Govt. expenditure % GDP

Singapore

89.4

0.0

20.0

17.0

5.4

326.5

60410

2.0

4.6

56650.9

13.8

17.1

Malaysia

69.6

4.3

26.0

25.0

29.5

498.5

16922

3.0

1.7

10073.9

15.3

28.5

Brunei

69.0

4.1

0.0

20.0

0.4

21.7

54389

2.7

0.5

850

24.0

33.6

Thailand

63.3

5.0

37.0

20.0

64.4

651.9

10126

0.5

3.0

8607.5

16.2

23.4

Philippines

60.1

4.8

32.0

30.0

95.8

424.4

4430

7.0

3.1

2797

12.3

16.0

Indonesia

58.5

2.6

30.0

25.0

244.5

1216.7

4977

6.2

4.3

19852.6

11.8

18.5

Cambodia

57.4

9.5

20.0

20.0

15.3

36.6

2402

0.0

2.9

1557.1

10.9

19.6

India

55.7

7.2

30.9

32.4

1223.2

4684.4

3830

8.5

9.3

25542.8

7.0

27.2

China

52.5

4.1

45.0

25.0

1354

12405.7

9162

4.1

2.7

121080

19.0

23.9

Laos

51.2

13.2

24.0

24.0

6.4

19.2

3011

2.5

4.3

294.4

13.7

21.0

Vietnam

50.8

5.7

35.0

25.0

90.4

320.7

3548

4.5

9.1

8368

21.1

30.9

Myanmar

46.5

3.2

20.0

30.0

63.7

89.5

1405

4.0

6.1

2243

3.7

19

Source: Economic Freedom Heat Map 2014: The Heritage Foundation. Institute for Economic Freedom and Opportunity

Table 7: Heritage Foundation: Economic Freedom Map Freedom Ratings

(Ranking among 186 countries)

Country

Overall score

Property rights

Freedom from corruption

Fiscal freedom

Govern ment spending

Business freedom

Labor freedom

Monetary freedom

Trade freedom

Invest ment freedom

Financial freedom

Singapore

89.4

90.0

91.9

91.2

91.2

96.8

96.5

81.5

90.0

85.0

80.0

Malaysia

69.6

55.0

44.3

84.6

75.6

85.6

78.5

81.0

76.4

55.0

60.0

Brunei

69.0

40.0

53.3

90.2

66.1

68.2

96.5

74.2

81.8

70.0

50.0

Thailand

63.3

45.0

33.6

79.7

83.6

71.4

61.6

68.6

75.0

45.0

70.0

Philippines

60.1

30.0

26.1

79.2

92.3

59.9

49.7

78.0

75.5

60.0

50.0

Indonesia

58.5

30.0

28.0

83.4

89.8

54.8

47.8

76.4

74.8

40.0

60.0

Cambodia

57.4

30.0

18.7

90.8

88.4

36.6

50.2

77.9

71.0

60.0

50.0

India

55.7

50.0

31.5

79.4

77.8

37.7

74.0

65.5

65.6

35.0

40.0

China

52.5

20.0

35.0

69.9

82.9

49.7

61.9

73.3

71.8

30.0

30.0

Laos

51.2

15.0

18.6

86.6

86.7

60.7

54.9

75.5

58.6

35.0

20.0

Vietnam

50.8

15.0

26.9

77.0

71.4

62.0

68.3

63.6

78.7

15.0

30.0

Myanmar

46.5

10.0

11.6

86.9

89.2

28.3

75.7

64.8

73.6

15.0

10.0

Source: Economic Freedom Heat Map 2014: The Heritage Foundation, Institute for Economic Freedom and Opportunity

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Chamber Events BCCT Panel Discussion Luncheon

Joint Chambers ESB Networking

15 January 2015

16 January 2015

BCCT’s AGM Panel Discussion Lunch on Thailand’s 2015 Economy and Political Situation took place on Thursday 15th January. The event was kindly sponsored by the Soneva Kiri Resort.

BCCT Chairman Simon Matthews represented BCCT at the Joint Eastern Seaboard Networking Evening hosted by SATCC at the Amari Pattaya sponsored by Bromsgrove International School, MBMG Group, Amazon Colours, Hemaraj Land and Development, Pattaya Realty and Standard Chartered Bank.

From left: - Dr. Luxmon Attapich, Asian Development Bank - Victoria Frost, Soneva Kiri Resort - Simon Matthews, BCCT Chairman/ManpowerGroup Thailand - Songkran Grachangnetara - Voranai Vanijaka, GQ Magazine

From left: - David Nardone, Hemaraj - Michael Berger, Antares Group - Simon Matthews, BCCT Chairman/ ManpowerGroup Thailand - Stuart Daly, Pattaya Realty

BCCT/RICS P&I Presentation

T3+1 Networking Evening

21 January 2015

22 January 2015

James Pitchon, Executive Director of CB Richard Ellis, gave an update on the Outlook for the Bangkok Property Market in 2015 at the BCCT/RICS P&I Evening Presentation.

The Oriental Residence kindly hosted the first T3+1 networking evening on Thursday 22nd January.

- James Pitchon speaking at Crowne Plaza Bangkok Lumpini Park Hotel

From left: - Dante de Boer, Savelberg Restaurant Manager - David Cumming BCCT Director/OXNY Hospitality Group - Sukamal Mondal GM of Oriental

- Neill Grimley, Standard Bank - James Swan, Bromsgrove International School Thailand - Richard Gamlin, Amari Pattaya - Brendan Daly, Amari Pattaya - Graham Macdonald, MBMG Group

Residence - Simon Matthews BCCT Chairman/ ManpowerGroup Thailand - Boyd Chongphaisal BCCT Vice Chairman/GlaxoSmithKline

Thank you to our sponsors.

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Chamber Events

Joint Chambers Luncheon

BCCT Half-Day Workshop

6 February 2015

10 February 2015

BCCT members attended the Joint Chambers Luncheon on BOI Investment Policy hosted by the Netherlands-Thai Chamber of Commerce at Grand Millennium Sukhumvit Hotel.

Over 20 members joined the BCCT Half-Day Workshop on Selling in Challenging Times conducted by Laurie Smith, Director at Advance Learning & Development.

- Guest speaker Khun Duangjai Asawachintachit, Deputy Secretary-General of Board Of Investment Thailand.

- Laurie Smith conducts his workshop at the British Business Centre.

An Evening with Everton Legends

Joint Chambers Networking

12 February 2015

13 February 2015

Thai Beverage and BCCT hosted An Evening with Everton Legends Graeme Sharp & Ian Snodin on Thursday 12th February at the Retro Live CafĂŠ.

BCCT, in collaboration with the French, German, Italian and Netherlands-Thai Chambers of Commerce, hosted the Joint Chambers Western Seaboard Networking Evening sponsored

by Hot Property Hua Hin and Red Piano Restaurant.

From left: - Greg Watkins, BCCT Executive Director - Paul Choong, Thai Beverage Advisor to President & CEO - Ian Snodin - Graeme Sharp

From left: - Bert Cesar, NTCC Executive Director - Jan Immel, GTCC Deputy Executive Director

Thank you to our sponsors.

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- Anthony Kelly, Hot Property & Red Piano Restaurant Owner - Chris Thatcher, BCCT Vice Chairman

Chamber Events

Special BCCT Luncheon

Third Thursday Networking

19 February 2015

19 February 2015

Alderman Alan Yarrow, The Rt Hon The Lord Mayor of the City of London, was guest speaker at the BCCT Special Luncheon on “The Lord Mayor – A View from the City of London” at the Conrad Bangkok Hotel.

The Great Kabab Factory Bangkok in the Majestic Grande Hotel kindly hosted the Third Thursday Networking Evening on Thursday 19th February.

- Alderman Alan Yarrow

From left: - Mana Anandsongkit, Managing Director of SAK Lifestyle

Joint Chambers ES Networking

BCCT Boardroom Briefing

20 February 2015

25 February 2015

BCCT Chairman Simon Matthews represented BCCT at the Joint Eastern Seaboard Networking Evening on Friday 20 February at Holiday Inn Pattaya.

Simon Landy, Executive Chairman of Colliers International, was guest speaker at the BCCT Boardroom Briefing on Property Funds: Thai REITs – The Future for Property Investment.

- Simon Matthews (second from left) joints fellow guests at the Eastern Seaboard Networking Evening.

- Simon Landy

- Ali Adam, BCCT Director/Arcadia - Simon Matthews, BCCT Chairman/ ManpowerGroup Thailand

Thank you to our sponsor.

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Chamber Events

BCCT Christmas Luncheon 12 December 2014 Many were surprised how fast one year went by, as the highly anticipated BCCT Annual Christmas Luncheon came around on the 12th December. The largest gathering of BCCT members year round, all of our guests were in festive spirit and delighted by a plethora of fun and games that went on throughout the event. Thanks to all generous sponsors.

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Chamber Events

Thank you to our sponsors and partners.

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Comings and Goings The British Chamber of Commerce Thailand welcomes the following new members:

BEUMER (Thailand) Co., Ltd. Dr. Gerhard Link Building, 14th Floor 88, Krungthepkreetha Road Huamark, Bangkapi, Bangkok 10240 Tel: +66 (0) 2731-7190 Fax: +66 (0) 2731-7194 Email: ma.cr@beumergroup.com Website: www.beumergroup.com

nearly one billion shoppers across the globe to create personalised customer experiences in digital, mobile, and retail environments. Our strategic process, proprietary insights, and multichannel media capabilities build loyalty with customers to drive competitive advantage and sustained growth for clients. dunnhumby employs nearly 3,000 experts in offices throughout Europe, Asia, Africa, and the Americas and works with a prestigious group of companies including Tesco, The Kroger Co., Coca-Cola, Macy’s, Procter & Gamble, and PepsiCo. For more information, please visit us at www. dunnhumby.com.

Representative: Mr. Martyn Crump - Managing Director Business Activity: The BEUMER Group is an international leader in the manufacture of intralogistics for conveying, loading, palletising, packaging, sortation and distribution technology.

With approximately 3.500 employees and an annual turnover about EUR 512 million, the BEUMER Group is present with its subsidiaries and sales agencies in many industries worldwide.

Dunnhumby Thailand 319 Chamchuri Square Building, 16th Floor Phayathai Road, Pathumwan Bangkok 10330 Tel: +66 (0) 2654-6500 Email: infothailand@dunnhumby.com Website: www.dunnhumby.com

Eclipse Magnetics Atlas Way, Atlas North, Sheffield S4 7QQ Tel: +44 (0) 114 2250 600 Fax: +44 (0) 114 2250 610 Email: info@eclipsemagnetics.com Website: www.eclipsemagnetics.com Representatives: Mr. John Dargavel - Managing Director Mr. Neil Fowler - Marketing Manager Business Activity: Eclipse Magnetics are a world leader in magnetic technology, based in the UK they produce high performance magnetic filtration systems for industrial fluids such as coolants and lubricating oils. The systems provide many benefits for precision machining processes: • Removes 100% of ferrous contamination • Cuts filter costs by up to 100% • Extends fluid life by up to X10 • Reduces reject rates to zero • Investment payback in 3 months

Representatives: Mr. James Merritt - Country Head dunnhumby Thailand Ms. Sara Mazzulllo - Head of Asia Media

Magnetic filtration is the most effective means of removing problem ferrous particles from industrial fluids such as coolants, lubricants and wash solutions.

Business Activity: dunnhumby is the world’s leading customer science company. We analyse data and apply insights from

Its’ success is based an ability to remove almost 100% of ferrous contamination, including sub-micron particles, without the need to replace consumable items

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or affecting the fluid’s key properties.

Traditional filtration systems typically leave particles smaller than 5-10 microns circulating in the fluid causing damage to process equipment and finished products.

Felsted School Felsted, Essex CM63LL United Kingdom Tel: +44 (0) 1371 822600 Fax: +44 (0) 1371 822607 Email: dpe@felsted.org Website: www.felsted.org

Representatives: Mr. Daniel Emmerson - Director of Holiday Programmes and Events Ms. Deborah Butler - Summer School Officer Business Activity: Felsted School is currently celebrating its 450th Anniversary. We are consequently thinking about where we would like to be in the next 50 years.

This currently involves developing relationships with schools outside of the UK and finding ways to work with them in a collaborative capacity. Introducing students to the UK education system by way of our International Summer School is proving to be an excellent way of achieveing that and so we are looking to bring this initiative to Thailand.

GEP UK Ltd. 8 Hampstead West, 224 Iverson Road London NW6 2HL United Kingdom Tel: +44 (0) 20 7624 1116 Fax: +44 (0) 20 7624 0291 Website: www.gepuk.co.uk

Representatives: Mr. Farzin Haghani – Chairman

Business Activity: GEP UK is a global Engineering and Design, Procurement and Project Management company (EPPM) in Oil and Gas and Water industry.

GEP UK expertise is Mid-Stream oil & gas Processing plants & packages and Water treatment, Cooling towers in industrial plants.

GeTeCe Co., Ltd. 208 Wireless Road Building, 15 Floor, Unit 1501, Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Tel: +66 (0) 81-422-0202 Fax: +66 (0) 2651-5558 Email: info@getece.com Website: www.getece.com

Representatives: Mrs. Kanokros Bongsadadt Suvansarang - Chief Marketing Officer & Flavors, Food ingredients Directors Ms. Temsiri Sujaritchant - Director, Marketing Division Business Activity: Established in Thailand in 1978, GeTeCe Co., Ltd. is a high-quality product distributor that provides customers in Thailand and across Southeast Asia with international standard products and services.

Grande Centre Point Hotel Ratchadamri 153/2 Soi Mahatlek Luang 1 Ratchadamri Road,Lumpini Pathumwan , Bangkok 10330 Tel: +66 (0) 2670 5000 Fax: +66 (0) 2670 5059 Email: kriengkrai.s@centrepoint.com Website: www.grandecentrepointratchadamri.com

Representatives: Mr. Kriengkrai Sojikul - Director of Sales & Marketing Mr. Panon Leelaluckana - Assistant Director of Sales – Corporate

Business Activity: Your private is only a short, pleasant walk away to nearby BTS Ratchadamri Skytrain Station and in close proximity to major city attractions, famous shopping complex, entertainment districts and business venues. Here, for business or leisure, you can make the most of your valuable time and enjoy your life to the full in the City of Angels.

Holiday Inn Bangkok Sukhumvit 1 Sukhumvit 22, Klongton, Klongtoey Bangkok 10110 Tel: +66 2683-4888 Fax: +66 2683-4777 Email: info.bkkhi@ihg.com Website: www.holidayinn.com/hisukhumvit

Representatives: Mr. Bart Callens - General Manager Ms. Kamutporn Chaiwong - Director of Sales & Marketing Business Activity: Holiday Inn Bangkok Sukhumvit is conveniently located on Sukhumvit Road with direct access to Rama 4 Road. We are within the Central Business District and steps away to various dining and entertainment options. Stay mobile through-out Bangkok via Sky Train and Subway which are only a few minute walk from the hotel that you are always well-connected to all major shopping and tourist attractions.

You will achieve more in our comfortable guest rooms with free high speed internet access, equipped with efficient work stations featuring ergonomic chair.

Our innovative Events Hub featuring 800sqm of meeting and social space.

The pillar-less Grand Ballroom along with dedicated elevators and access points offer exclusivity while our experienced Event Specialists will take care of all your needs.

King Academy Co., Ltd. The Trendy Office Building, 4th Floor Sukhumvit Soi 13, Klongtoey Nua Wattana, Bangkok 10110 Tel: +66 (0) 2168 7369 Fax: +66 (0) 2168 7370 Email: info@kingacademy-thailand.com Website: www.kingacademy-thailand.com

Representatives: Mr. Gary King - Executive Director Business Activity: Founded in 2013 by a team of experienced professionals, King Academy-Thailand is a specialist educational consultancy and bespoke tutoring service that office the highest quality personalised academic support in a wide variety of academic subjects to students who are currently in their primary, middle or high school years.

We also offer expert guidance and preparation for college and university applications, entrance essays and for all sections of the SAT and the ACT. In addition we provide tuition for a wide variety of other standardised tests such as AP Calculus, TOEFL and IELTS. We also provide specialist English Courses, Executive Coaching and In-house Training for companies.

King’s College London, University of London James Clerk Maxwell Building 57 Waterloo Road London SEI 8WA United Kingdom Tel: +44 20 7848 3388 Email: stephanie.limuaco@kcl.ac.uk Website: www.kcl.ac.uk

Representatives: Ms. Stephanie Limuaco - Senior International Officer for Thailand, Malaysia, Indonesia

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Business Activity: King’s College London is one of the world’s top 20 universities and one of the oldest in England: a multi-faculty research-led university institution based in the heart of London.

King’s has nearly 26,000 students from 140 countries worldwide, and over 7,000 staff. It has an annual income of nearly £590 million. It offers an intellectually rigorous environment supoorted by welcoming and caring traditions, and is dedicated to the advancement of knowledge, learning and understanding in the service of society, both in the UK and internationally.

Membracon (UK) Ltd. Unit 44, Central Trading Estate Cable Street, Wolverhampton WV2 2HX United Kingdom Tel: +44 (0) 19 0245 8501 Email: info@membraconuk.co.uk Website: www.membraconuk.co.uk

Representatives: Mr. Matt Williams Business Activity: MEMBRACON (UK) LTD was established in 2002 to supply the electropainting industry with membrane technology. Our parent company, MEMBRACON FILTRATION B.V. in the Netherlands, was established in 1997 by Mr. Jan Tump. Prior to this, Jan Tump for many years was the European general director of Romicon, a pioneering company in Hollow Fiber ultrafiltration also used in the electropainting market.

MEMBRACON engineers offer more than 100 years of combined experience in the electropainting Industry. We offer a wide range of products including UF membranes, anode tubes, anode boxes, reverse osmosis membranes and systems. We are currently developing new technology to be used in the electropainting market. We also service electropainting plants in the UK and Europe.

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Nielsen Company (Thailand) Limited, The 26th Floor, 323 United Center Building Silom Road, Bangrak Bangkok 10500 Tel: +66 (0) 2674-6000 Fax: +66 (0) 2231-1960 Email: thailand.communications@nielsen. com Website: www.nielsen.com

Representatives: Mr. Sinthu Peatrarut - Managing Director, Media Client Leadership Ms. Tarinee Jermthaness - Client Service Manager, Media Business Business Activity: Nielsen is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence and mobile measurement.

Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA, and Diemen, the Netherlands. For more information, visit www.nielsen.com

Pennwell Corporation The Water Tower, Gunpowder Mill Powdermill Lane, Essex Waltham Abbey EN9 1BN United Kingdom Tel: +44 (0)1992 656 600 Fax: +44 (0)1992 656 700 Email: LeeC@Pennwell.com Website: www.pennwell.com

Representatives: Dr. Heather Johnstone - Event Director/Group Publisher Mr. Lee Catania - Senior Marketing Manager

Business Activity: PennWell Corporation is a highly diversified, business-to-business media company providing authoritative print and online publications, conferences and exhibitions, research, databases, online exchanges and information products to strategic global markets.

Since 1910 PennWell has been known for providing comprehensive coverage of several strategic markets. In those early days, PennWell was a pioneer in the emerging oil industry with Oil & Gas Journal magazine, founded in 1902.

Today PennWell publishes over 75 business-to-business print and on-line magazines and newsletters, conducts over 60 conferences and exhibitions on six continents, and has an extensive offering of books, maps, directories and database services.

Sak Lifestyle Co., Ltd. The Great Kabab Factory 12 Sukhumvit Soi 2, Sukhumvit Road Klongtoey, Bangkok 10110 Tel: +66 2262-2999 Fax: +66 2262-2905 Email: info@saklifestyle.com Website: www.saklifestyle.com

Representatives: Mr. Aman Kunkudatham - Managing Director Mr. Mana Anandsongkit - Managing Director Business Activity: SAK is a partnership of three families who have consolidated their resources and expertise in business to create and build upon their own individuality, vision and future growth together as a team in Thailand.

SAK is involved as shareholders and partners in a number of prestigious projects in Thailand. Their business investments in Bangkok and the Eastern Seaboard comprise real estate development and management of residential and commercial properties, which also incorporates hotels, hospitality projects and F&B ventures.

As SAK grows organically through its own ideology and strategic partnerships with others, the emphasis on collaboration with the vitality of the younger generation incorporating innovative yet traditional ideas is paramount; specifically in their approach to the way in which project scope, style of execution and service is delivered.

Resignations & Cancellations 1. Association of Life Partners Ltd. 2. BELFOR Thailand Ltd. 3. Bournville College 4. Brooke Real Estate Co Ltd. 5. Coutts & Co Ltd 6. Crestcom-Traincom Ltd. 7. Economist Group, Asia-Pacific, The 8. Imperial Queen’s Park Hotel, (The) 9. IRPC Public Company Limited 10. Market-Edge Asia Ltd 11. PFM-International 12. Professional Investment Consultants (Europe) S.A. 13. School of Sound Recording 14. Silk Road Associates Limited

15. Singapore Management University 16. Surreal Holidays (Thailand) Co., Ltd.

Change of company representatives 1. AB World Foods Ltd, changed from Mr. Sean Goonan, to Mr. Boworn Pakdeesusak 2. Absolute World Group, changed from Mr. Mike Stapleton, to Mr. Mike Hall 3. British Council, changed from Mr. Christopher Gibson, to Mr. Andrew Glass OBE 4. Bupa Health Insurance (Thailand) Public Company Limited, changed from Mr. Andrew Wong, to Mr. Christopher Dennis 5. Cape Dara Resort Pattaya, changed from Mr. Sittidej Rochanavibhata, to Mr. Vichien Kijsuwan 6. Chevron Thailand Exploration and Production, Ltd. ,changed from Mr. William Koetzle, to Ms. Hatairat Articharte 7. Herbert Smith Freehills (Thailand) Limited, changed from Mr. Alastair Henderson, to Mr. Gavin Margetson

8. Le Meridien Bangkok, changed from Mr. Nick Zilinski,to Ms. Renee Benedetti 9. Magnolia Quality Development Corporation, changed from Ms. Jureepun Saekwung, to Ms. Khajornrat Poolsatitiwat 10. Oriental Residence Bangkok, changed from Mr. Viranat Silananda, to Mr. Sukamal Mondal 11. Salamander Energy (E&P) Ltd., changed from Mr. Graham Balchin,to Mr. John Bell 12. Syntor Fine Chemicals Ltd., changed from Mr. Les Weaver, to Mr. Simon Knowles Change of company name 1. Arrivals Company Limited, The, changed to Yamira Company Limited 2. Brambles (Thailand) Co., Ltd., changed to Recall Enterprises (Thailand) Ltd. 3. Ernst & Young, changed to EY Office Limited

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75

FINAL WORD

Taxing issues for the BBC

By Dale Lawrence

T

hese are taxing times for the BBC – and I don’t mean the irritating antics of Jeremy Clarkson. It appears that the popular BBC Radio 2 presenter Jeremy Vine (pictured right) channels his sizeable income from licence payers through a company called Jelly Vine Productions where his 10- year-old daughter Martha is listed as a shareholder.

It’s a (perfectly legal and legitimate) ruse used by radio and TV ‘celebrities’ in the UK to reduce their respective tax burdens. Profits returned by Jelly Vine Productions are taxed at much lower corporate tax rates that the current 40 percent levy on higher bands of personal income.

What is troubling some observers is that fact that the vast majority of Mr Vine’s income appears to come from the BBC, begging the question as to why he does not simply join the ranks of thousands of other Corporation employees on PAYE – where tax is deducted monthly at source. The BBC seems unable to justify a policy that favours the privileged few but hope remains that Rona Fairhead, chairman of the BBC’s governing body, can help.

Mrs Fairhead, 53, is a non-executive

penheimer, had paid just £163,000 on revenues of more than £2.1bn in 2011.

Margaret Hodge held some 2,399,600 shares in Stemcor at that time.

The company quickly refuted the allegations made in the Daily Telegraph, stating that ‘over the past five years Stemcor had paid £27m in UK Corporation Tax, an effective tax rate of 32 percent based on UK generated profits’. The company also quite rightly pointed that tax is levied on profits and not revenues.

York bar none director at HSBC where she last year pocketed a handy £513,000 in fees and benefits, according the bank’s annual report.

Mrs Fairhead faced a barrage of criticism from Margaret Hodge, chairman of the House of Commons Public Accounts Committee, during a recent grilling over allegations of tax evasion by bank customers. Ironically, the independently wealthy Labour MP also faced scrutiny when the Daily Telegraph stated that the steel company Stemcor, founded by father Hans Op-

UK tourists have voted York the world’s safest city…..and given the thumbs down to Bangkok. Three more delightful British cities - Edinburgh, Brighton and Bath - complete the top four listings. But Cairo, Bangkok, Istanbul and Marrakech are deemed to be the riskiest cities to visit, according to a poll of 2,075 adults conducted by Post Office Travel Insurance. Things have presumably calmed down somewhat in Brighton since those heady days in 1964 when mods and rockers clashed on the town’s Palace Pier.

In stitches Labour MP Nia Griffith has clearly been sitting for too long on the House of Commons green benches. Posing a question to a Treasury Minister she referred to ‘kitchen table digital industries’. Apparently she was talking about knitting.

And finally…..

A packet of condoms has been found stashed in a corridor at the Palace of Westminster just feet from the Commons Chamber. It was a pack of 12…. with three missing. It’s good to know that our parliamentary representatives are practising safe sex.

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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Issue 1/2015

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