BCCT The Link magazine #5 2013 by The British Chamber of Commerce Thailand

Magazine of the British Chamber of Commerce Thailand Issue 5 2013

Tourism Boom Thailandâ&#x20AC;&#x2122;s appeal continues to grow

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Contents BCCT

Board of Directors 2013 Chairman Simon Landy Colliers International Thailand T: 02 656 7000 simon.landy@colliers.com Vice Chairman & Treasurer John Sim PKF Tax and Consulting Services (Thailand) Ltd. T: 02 679-5100 john.sim@pkfthailand.asia

Vice Chairmen Viriya (Boyd) Chongphaisal GlaxoSmithKline T: 02 659 3000 viriya.x.chongphaisal@gsk.com Simon Matthews ManpowerGroup Thailand T: 02 634 7273 matthews@manpower.th.com Chris Thatcher Anglo-Thai Legal Co., Ltd. T: 081 803 7377 christhatcher1@gmail.com

Directors Gary Biesty South Asia Law Co., Ltd T: 02 636 0585 garyb@southasia-law.com David Cumming Onyx Hospitality Group (Amari Orchid Pattaya) T: 02 255 3767 david.cumming@onyx-hospitality.com

Stephen Frost Bangkok International Associates T: 02 231 6201/6455 sfrost@bia.co.th Andrew McBean Grant Thornton T: 02 205 8222 Email: andrew.mcbean@th.gt.com Rituraj Mohan Boots Retail (Thailand) Ltd T: 02 694 5900 Ritu.Mohan@bootsri.com Sriram Narayan British Airways PLC T: 02 784 8130 sriram.narayan@ba.com Ata Safdar Reckitt Benckiser Healthcare (Thailand) Limited T: 02 685 2100 ata.safdar@rb.com Siew Meng Tan HSBC T: 02 614 4040 siewmengtan@hsbc.com Thana Thiramanus Property Care Services (Thailand) Ltd. T: 02 741-8800 thana@pcs.co.th

This Edition

Tourism industry set to meet PM target

Taxing issues

On track or off the rails

ADB key indicators for Asia Pacific

Adding value to Thailandâ&#x20AC;&#x2122;s creaking railway network

Thailand takes lead as Chambers forge new links with UKTI

No end in sight to Pattaya condo boom

CEOP needs support to fight child abuse The Link

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Contents

The Link is published by the British Chamber of Commerce Thailand. For advertising and editorial enquiries, please contact Jyoti Sachavirawong, Deputy Director, BCCT Email: Sarinthorn@bccthai.com Editor: Dale Lawrence Email: dalelawrence2008@gmail.com Front cover designed: GSBI Production: Scand-Media Corp., Ltd The views expressed by individual authors are not necessarily those of the British Chamber of Commerce Thailand or of the publisher. Reproduction in whole or in part without written permission from the British Chamber of Commerce Thailand is strictly prohibited.

Every Edition

Chairmanâ&#x20AC;&#x2122;s Message British Chamber of Commerce Thailand 7th Floor, 208 Wireless Road Bangkok 10330, Thailand Tel: 02-651 5350/3 Fax: 02-651 5354 Website: www.bccthai.com Email: greg@bccthai.com Greg Watkins, Executive Director

Executive Directorâ&#x20AC;&#x2122;s Message FTA talks set for third round Competition promotes English language skills

Member News By the Numbers Chamber events Final Word

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Chairman’s Message

hailand is often characterised as a hospitable, friendly country, generally open to foreign business but with a few quirks that often get in the way of maximising business potential. But I sometimes come across a sharper view in the foreign community that sees the Thai business environment as basically hostile to foreign business, with the odds stacked heavily in favour of local interests.

Simon Landy Sterling Partner

My experience is that most of the time there is an alignment of interests between the Thai and foreign business communities, but where large national interests are at stake there tends to be a preference for local solutions, which is a tendency not peculiar to Thailand. It is therefore in our members’ best interests for BCCT to work with Thai business leaders wherever possible, but not avoid putting forward views that may go against powerful local interests where necessary. That is why our relationship with the Board of Trade of Thailand (BOT) is so important. As one of the largest foreign chambers, BCCT occupies one of the “permanent” seats on the BOT. Many of our members may be unfamiliar with this organisation and how it can benefit their business, so I would like to explain a little about it here.

Corporate Partners

The BOT is an umbrella organisation for Thai business. Its membership comprises the country’s many trade and industry associations, rather than individual companies. Currently, membership totals 1,352, mainly associations and chambers including the 31 registered foreign chambers. These members represent some 70,000 companies. The board of directors of the BOT meet every 2 months and comprises around 50 directors. Of the 15 seats reserved for the foreign chambers, about half are occupied on a permanent basis while the others are rotated among the smaller chambers. The permanent seat is recognition of the relative importance of the British Chamber and of trade and investment ties between Thailand and the UK. Under the current chairmanship of Khun Isara Wongkusolkij, your chairman was also appointed as the sole foreign chamber representative on the Executive Board of the BOT. In this role, I also attend the monthly board meetings of the Thai Chamber of Commerce (TCC).

Annual Airline Partners

Under Khun Isara’s leadership, the BOT is developing a number of key initiatives. One priority is to develop the competitiveness of SME companies in Thailand. The BOT has started to organise seminars where large Thai firms act as mentors to individual SMEs. Another key pillar is to improve connectivity between the business sector and government as well as with neighbouring countries and ASEAN as a whole in preparation for AEC 2015. While these issues may be of direct interest to many of our members, the Chamber is also able to use our position in the BOT to lobby on specific advocacy issues. The BOT has stated its desire to work closely with the foreign chambers to help address obstacles to doing business in Thailand, and we would welcome any inputs you may have to this agenda.

Supporting Partners

The BOT and TCC recently organised its first overseas trade mission – to Laos – and BCCT was one of the 5 foreign chambers represented. Apart from exploring business opportunities in this emerging market and developing contacts with Lao government and business leaders for our members, the mission was a useful occasion to push some of our agenda items in a more casual setting than the formal BOT meetings. As a result, the BOT and BCCT are now exploring ways to improve contacts and matchmaking opportunities between our members and Thai SMEs and on setting up more regular business and networking events. As members of BCCT, you are entitled to make use of the infrastructure provided by the BOT. These include getting involved in one of the many trade associations or industry specialist groups that come under the BOT umbrella. If you would like more information on this organisation and its activities, you can check out the website at www.thaichamber.org or contact the Chamber. The Link

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Executive Director’s Message

n my message in the last issue of The Link I signed off by stating that there would be an article on the Priority Visa Service for Thai nationals visiting UK in this issue. Unfortunately, the article has been postponed to the next issue but given the importance and relevance of the service to BCCT member businesses and their staff, I thought that I would highlight the key elements in this message.

GREG WATKINS

The standing advice to those applying for a UK visa is to allow as much time as possible for the application process and to not make travel arrangements until the visa is issued. There are service standards for processing UK visa applications in Thailand quoted by UK Visas and Immigration (UKVI) on their website – 90% of non-settlement applications within 3 weeks, 98% within 6 weeks and 100% within 12 weeks of the application date (one week is defined as 5 working days). Applications are processed in the date order that they are received but quite often BCCT member businesspeople do not have the luxury of long advance notice. In short, UKVI offer a priority service available for eligible customers in certain visa categories. Priority visa applications will be processed ahead of others and under normal circumstances a priority service visa application will be processed within 3-5 working days. The service costs THB 3,000 per applicant (including sales tax) which must be paid when the visa application is submitted. Requests to use the priority visa service after the visa application has been submitted are not accepted. More information can be found on the UKVI website – ‘http://www. ukba.homeoffice.gov.uk/countries/thailand/?langname=UK English’ - under ‘Additional Services’. The three main eligibility criteria are as follows: • a business visitor who has travelled in the previous 5 years to the UK, the USA, Canada, Australia, New Zealand or a country in the Schengen Area. • an employee of a company who is a member of the UKVI’s Business Select Scheme in Thailand (see * below), who is travelling on business regardless of previous travel history. The company should submit a standard letter of support with the application; • a general visitor or a family visitor who has travelled in the previous 5 years to the UK, the USA, Canada, Australia, New Zealand or a country in the Schengen Area. * The Business Select Scheme is a UK Visas and Immigration (UKVI) initiative. The scheme is designed for companies in Thailand which have links with the UK, for example by doing business/investing in the UK, and is intended to enhance the visa application process when they send employees to the UK on business. Using the priority service does not imply or guarantee that an applicant will be successful. UKVI strongly recommends that this service is not used if the applicant has any form of adverse immigration history. All visa applicants must meet the requirements of the UK Immigration Rules (these are documented on the UKVI website). UKVI will not refund the fee for the priority service, or the visa application fee, if they refuse the visa application or if, in exceptional cases, it takes longer than 3-5 working days to process the application. On other issues, the transformation and expansion of the BCCT office, to accommodate the UKTI Overseas Networks Project, has been delayed due to the normal reasons that most businesses encounter when they go through this process. As I write the process is back on track and the project team is working hard to provide UKTI with all the data required. BCCT Chairman Simon Landy, Project Director Barry Nicholson and I will be in London as this issue of The Link lands on your desks. We will be examining how some UK Chambers of Commerce operate, exchanging experiences and best practice with other overseas BritChams in the 20 pilot markets and discussing the accreditation process with British Chambers of Commerce (BCC). The Link

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Tourism industry set to meet PM target By Dale Lawrence

hailand’s tourism industry is booming with record numbers of international visitors are flocking to the ‘land of smiles’ for holidays, business engagements and a wide range of MICE events.

year-on-year increase of almost 16 percent. Bangkok is now the world’s most popular city destination ahead of London, Paris, Singapore, New York and Istanbul, according to the index published by MasterCard.

That’s good news for Prime Minister Yingluck Shinawatra who announced her own target, shortly after taking office, of 30 million visitors by 2015. Sceptics were smirking at the time but that figure now looks distinctly achievable.

In 2012 China became the leading source market for visitors to Thailand (2.7 million), just ahead of Malaysia (2.5 million) and Russia (1.3 million). By comparison, some 870,000 visitors came to Thailand last year from the United Kingdom. Overall, European visitors showed a good growth rate of more than 10 percent to 5.61 million, despite the continuing repercussions of the

Last year’s official figures for Thailand show that more 22 million visitors arrived by land, sea and air, a

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global economic downturn and the Eurozone. This UK arrivals figure is influenced by a number of factors, not least the continued belt tightening amongst British holidaymakers and the punitive Air Passenger Duty first introduced by the Conservatives in the 1990s at a modest rate and then exploited mercilessly by successive Labour administrations under Tony Blair and Gordon Brown. This tax on travel now costs a family of four flying from London to Bangkok in economy class more than £300 and it is undoubtedly persuading some travellers to consider destinations closer to home.

It’s not an issue that generates any cause for alarm within the walls of the Tourism Authority of Thailand headquarters as the TAT Governor Suraphon Svetasreni explained. “Last year, the world was generally at peace and there were no major geopolitical, economic, environmental or natural disasters and no health pandemics. Travel and tourism can only flourish worldwide if the underlying conditions that support it remain free of disturbance and disruption. That is one of the most important lessons for the entire industry to learn worldwide,” he said. Governor Suraphon added that the record numbers for 2012 were ‘a tribute to the cooperation and creativity of the entire Thai travel & tourism industry for the huge effort that has been made to ensure that travel & tourism remains a leading industry for job creation, distribution of income nationwide and contribution to culture, heritage and environmental preservation. One significant factor arising from the official figures for 2012 is that,

Next year the TAT is targeting 28 million international arrivals, posing the question of whether Thailand is able to manage these sizeable increases in a sustainable manner. David Cumming, from the ONYX Hospitality Group, is confident about Bangkok but pinpoints potential issues on Koh Samui.

Suraphon Svetasreni

of the six countries now producing more than one million visitor arrivals annually, five are from the Asia Pacific region. Visitors to Thailand from regional markets tend to stay in the country shorter periods of time and this does impact upon tourism receipts to some degree. For 2013 the TAT is confident that, if global, regional and local stability remains stable, Thailand will welcome some 24.5 million visitors - generating a projected tourism income of 1,149 billion Baht.

“In terms of rooms, I think Thailand is well poised for receiving these extra guests but we need to ensure our infrastructure, especially beyond Bangkok, is also ready. Samui is a popular resort destination but due to the airport monopoly it has a restricted capacity, though I am not sure that this is a bad thing,” said David. “The prices may be high (in Samui) but this helps to maintain a degree of exclusivity to the destination. If other airlines were free to come and go, the floodgates would open and the island quite simply would not be able to cope with the sheer volume of people. There are many infrastructure issues which need to be urgently addressed first before we could consider a large increase in the volume of tourist visitors to Samui, such as

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waste disposal, water supply and road capacity.”

Willem Niemiejer’s observations may have been on the minds of senior TAT and Tourism Ministry officials when they presented the Tourist Authority’s action plan for 2014. TAT Governor Suraphon Svetasreni said, “Finalising the 2014 marketing plan has been a particularly challenging exercise in view of all the phenomenal and monumental changes taking place both worldwide, regionally, and locally within Thailand, in customer demographics as well as the way the industry does business.

Richard Greaves, General Manager at Bangkok’s luxury Grand Hyatt Erawan hotel, said, “This increase in arrivals is great news and a good sign that shows that visitors have continued confidence to visit Thailand. These visitors are here for business or leisure, patronising key destinations such as Bangkok, Chiang Mai, Phuket and other resort locations. “All of these destinations are capable of providing appropriate accommodation, facilities and infrastructure and there is a good mix of international hotel chains, small luxury boutique hotels and local hotels in almost every tourist destination.” There is certainly no shortage of new hotels opening in the capital city. Rates across all types of accommodation in the city still compare very favourably with other city destinations in the region such as Singapore and Hong Kong. Andrew Langdon, Senior Vice President of Jones Lang LaSalle Hotels, told an industry forum hosted by Skal International Bangkok that almost 6,000 new hotel rooms will be added to the city’s downtown inventory by the end of 2015. “Last year some 20 new hotels opened in the city, the majority in the more lucrative four and five star categories,” he said. He supported the widely-held view expressed at the forum that Bangkok is one of best ‘value-for-money’ city destinations in the world.

Richard Greaves

enue per available room (RevPAR) is rising the average daily rate (ADR) is flat-lining. “We need to brave enough to raise our rates if we are to increase ADR,” said Mark van Ogtrop, Managing Director of Golden Tulip Hotels in South East Asia. Willem Niemeijer, CEO of Khiri Travel – a leading inbound Destination Marketing Company based in Bangkok - issued a cautionary word to hoteliers. He said that his company’s research showed that most tourists visiting Bangkok are looking for memorable holiday experiences in the city. “They visit Bangkok not for the hotel but rather for what the city has to offer. They are seeking new and rewarding experiences, especially in the arts, popular culture and entertainment as well as at heritage and historical sites.”

Mr. Langdon also said that the numbers of arrivals to Thailand from China PRC, travelling individually and as part of group tours, will continue to increase. In the five months ending 31st May 2013 there was a 93 percent year-on-year increase in visitors from mainland China. But it’s not all good news for hotel owners and operators. Latest figures from Jones Lang Lasalle for Bangkok’s hotels show that whilst the rev12

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David Cumming

“Because Thailand is blessed with an unmatched geographical advantage, and numerous other strengths which have served us well over the years, we had to find ways of adapting our strategies to take advantage of our strengths and address some of the looming weaknesses. We think this plan does that.” The Governor stressed that the key words of ‘Thainess’ and ‘balance’ will help to driving future strategies. The TAT is also keen to follow the Prime Minister’s demands in attracting more visitors to the ‘high-end market segments’ in a bid to boost average spend figures. This is essential if the two billion Baht revenue figure for 2015 set by Prime Minister Yingluck is to be achieved. The gods are currently looking favourably upon Thailand’s tourism industry. As Richard Greaves explains, “A stabilised government and unity in Thailand will lead to political strength and further confidence which will help to improve Thailand’s image in the eyes of overseas business and leisure travellers.” David Cumming agrees. “Thailand is such a diverse country with so much to offer its visitors. Unfortunately there are still people who see Thailand through a stereotyped vision. Through the TAT and the promotional efforts of other tourism partners this is changing, especially for the long haul markets. Thailand is becoming more and more accessible and an increasingly favoured destination for families, groups and business travellers,” he said.

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On track or off the rails

By Christopher Bruton

he once glorious Royal State Railway of Siam has a proud history. After first establishment in October 1890 King Chulalongkorn issued a Royal Proclamation to construct the inaugural railway lines on 9th March 9 1891. From that time onwards, the network was extended to reach its present 4,500 kilometres of track - of which over 90 percent is single track and the remainder double or triple track. Sadly, however, the elegant sleeping and dining cars, stately wood-burning locomotives and picturesque railway stations are a fading vestige of that glorious past. The passenger carriages are shabby and worn, the handsome steam locomotives have 14

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been replaced by mostly ageing diesel units and the railway stations are dilapidated and crumbling. Worse still, what is now called the State Railway of Thailand (SRT) is in an appalling condition, organisationally worse even than its depreciated assets. In the words of a March 2013 Asian Development Bank report (Thailand’s Supporting Railway Sector Reform, TA 8078-THA) ‘SRT’s financial performance is terrible, because revenues do not cover costs in any business area’. The report explains that SRT revenue is US$ 0.59 per passenger and US$ 0.009 per passenger-kilometre. Freight revenue amounts to US$ 0.012 per

tonne-kilometre. Even before taking into account such financial costs as interest on debt, overheads or pension costs, revenues per employee amount to some US$ 11,400 whereas operating costs per employee are US$ 13,350. SRT loses over US$ 300 million per year and has debts of over US$ 3 billion which it is unable to serve or to repay. Evidently the SRT is on the fast track to disaster. The short-term solution is seen as spiritual rather than technological. The SRT chose September 14, 2013 to hold a major merit-making ceremony to help prevent disaster after yet another serious accident. This latest crash brought total accidents, in 2013

alone, to 114. Despairing of its own engineering competence, SRT officially believes that only the divine can avert catastrophe. The Governor of the SRT is, however, brimming with confidence and was reported (Bangkok Post 14 September 2013) as saying ‘personally I believe Thailand has survived several bad incidents because of divine protection. The SRT should too’. It is certainly to be hoped that divine protection will be abundant in the future since railway engineering skills seem to be in such short supply. Divine or technical skills will become even more necessary when the

speed of Thailand’s train system is accelerated from its present buffalo pace to a forecast 250 kilometres per hour for the upcoming High Speed train project. In for a quick fix The High Speed Train is the latest in Thailand’s imaginative infrastructure megaprojects. Of the US$ 67 billion overall programme High Speed Rail represents US$ 26 billion (39% of the whole scheme). With railway double-tracking costing an additional US$ 13.4 billion (20%) and urban mass transit costing US$ 15.7 billion (24%) rail networks whether fast or slow, metre or

standard gauge will total a whopping 83 percent of infrastructure outlays. As far as High Speed Rail is concerned this represents only the soup course in a grandiose banquet which, even if on schedule, will continue until 2032. By that time much of the country will be able to hurtle along (or off ) the rails at break-neck speed. However, at 250 kilometres per hour, this is still a little slow compared with even present-day air travel. Trying to keep pace with the ongoing High Speed Rail project is confusing because different concerned

Laos catches the High Speed bug not as yet delivered, is a 220 kilometre High Speed Rail link between Savannakhet on the Mekong River and Lao-Bao on the Vietnamese border.

With a grand total of 3.5 kilometres of rail track, opened in 2009, linking the Nong Khai Friendship Bridge to Tha Nalaeng, Laos is not a leader in advanced rail travel. This, however, is due to change dramatically. Work is commencing on a 420 kilometre High Speed Rail line from the Chinese-Lao border in Yunnan Province to Vientiane and on to the Thai border.

The cost of this project is US$ 5 billion with double tracking, designed for passengers and goods, to be funded and constructed by appropriately-named Giant Consolidated - a not very well-known Malaysian company.

The somewhat challenging terrain along the way will require 76 tunnels and 154 bridges at an estimated cost of US$ 7.2 billion - with at least another US$ 3.5 billion in interest costs for loan facilities. Unlike in Thailand, where there will be some prospect of financial payback even if that requires 300 years, the Lao project has no real payback potential at all. The only revenue stream might be transit fees on goods and possibly passengers travelling between Yunnan and Thailand. The fact that most Chinese goods do not travel between Yunnan and Thailand but rather between such distant places as Shanghai or Kwang Chao by sea to Bangkok does not deter the project promoters. However the Chinese government, which will build and finance the High Speed Rail construction, will expect Laos to pay for the project even though the main beneficiaries will be China and Thailand and not Laos.

The main challenge to viability for this project is that it is planned to go from nowhere to nowhere. Whereas the China to Thailand High Speed Rail project will link up the Chinese rail system to the Thai rail system this will not be the case with the Savannakhet to Lao-Bao rail system. It is reported that payment will be extracted, literally in this case, in the form of Lao mineral and agricultural resources. What Laos will really gain from parting with so much of its resources is not as yet clear. In Laos, people like to take things slow and steady so the High Speed Rail is something of an innovation. The Chinese originally proposed that the trains should run at 200 kilometres per hour, but the Laotians have proposed 160 kilometres per hour measured, no doubt, in Lao time which may be considerably slower. This imaginative scheme is not the only High Speed Rail project to be up and running in Laos. Already signed and sealed, but

It may therefore take some effort to fill up the trains although, as always, hope springs eternal and some merit-making ceremonies may be required. This may also be needed in the case of the ChinaThailand High Speed Rail since there is a high risk that the Chinese rail-builders may arrive in Nong Khai some years ahead of their Thailand counterparts. The Thai tracks may not reach Laos until 2032 or beyond. Coordination of plans and timeframes is always a good idea in cross-border schemes but, in these cases, the respective countries seem to be working independently of each other.

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organisations seem to have different ideas about which direction they are going in and when. It appears to be a case of ‘better to travel hopefully than to arrive’ and some sceptics believe that the journey may never start at all. The overall ‘Grand Design’ provides for an initial 1,447 kilometres of High Speed standard gauge track to be built over the next seven years, taking travellers from Bangkok to Nakhon Ratchasima, Chiang Mai, Hua Hin and Rayong. By 2032 an additional 1,116 kilometres would be added to complete the network, enabling Bangkokians to hurtle down the tracks to Nong Khai, Chiang Mai, Padang Besar or Rayong. Given the distances involved, and a projected speed of 250 kilometres per hour, a journey from Bangkok to Chiang Mai would take some three hours, to Nong Khai two and a half hours and Padang Besar about four hours. Budget air travel might appear to enjoy some advantages. Air travel to Chiang Mai takes 70 minutes and to Hat Yai 80 minutes, rather than using High Speed Rail, which requires triple the time.

For the first stage of the project the priority will be to link Bangkok with Rayong, via Chonburi and Pattaya (221 kilometres). The other priority routes will be Bangkok to Chiang Mai (742 kilometres), Bangkok to Nakhon Ratchasima, (256 kilometres), and Bangkok to Hua Hin, (225 kilometres).

hour and could comfortably manage with 80 to 100 kilometres per hour on an upgraded and better managed rail system. Meanwhile freight (even refrigerated fresh products) could easily survive overnight travel for seven or eight hours. It is therefore not easy to comprehend the need for High Speed Trains.

For the Rayong, Hua Hin and Nakhon Ratchasima routes, the relatively advanced development of the destination area coupled with shorter distances and lesser viability of air travel could offer advantages to high speed rail. But financial viability may be a different issue.

The money could perhaps be better spent on healthcare or a good educational system, given such astronomical costs. But, like having one’s own communications satellite out in space, bullet trains are nice to have and provide a certain degree of national prestige to any country that operates them.

Protagonists of High Speed Rail the world over emphasise not only financial viability but also general economic viability. That must surely be the case with the Thailand project since some analysts have estimated the financial payback as requiring up to 300 years of operation. Most financiers think that 300 years is rather too long to wait for return of their money. Ordinary passengers do not need to hurtle along at 250 kilometres per

Bangkok the regional hub ASEAN and the ASEAN Economic Community (AEC) are all about connectivity. Thailand’s hope is to leverage natural geographic advantage to become a hub, at least for the Greater Mekong Region, and southwards to Malaysia and Singapore. To achieve this ideal, some directions look positive and some less so. Laos appears to be making dramatic prog-

Thailand double tracking senting 20.2 percent of total infrastructure expenditure.

Having a one-track mind can be risky but having a single-track railway can be disastrous. Two trains on one track, heading straight for each other, can be a most dangerous practice and no amount of merit-making can avoid a head-on collision.

In addition to double-tracking of the existing network there are plans for new one-metre gauge lines, notably to link Denchai Junction on the northern line with Chiang Rai and Chiang Kong on the Mekong River opposite Laos (306 kilometres) and to link Ban Phai on the north eastern line to Mukdahan – opposite Savannakhet in Laos – and Nakhon Phanom (347 kilometres).

Accordingly, the Thailand double tracking project has to be an excellent and seriously-overdue correction to a blatant engineering shortcoming. With over 90 percent of Thailand’s rail system single track, a major double – tracking expansion along with rehabilitation is to be undertaken. The scheme is designed to expand the system from the present 4,500 kilometres of mostly single track to 5,141 kilometres with 38 percent single track by 2019 and,

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eventually, some 5,560 kilometres with just 13 percent single track by 2032. The SRT already has its own double-tracking expansion project but 2,859 kilometres of double-tracking are included in the Infrastructure Development Program at a budgeted cost of US$ 13.4 billion, repre-

There have also been proposals for linkages of the High Speed Rail projects to reach Ubon Ratchathani in the north east and Chanthaburi and Aranyaprathet on the Eastern Seaboard. These proposals are not part of the first or later stages of High Speed Rail development.

ress, in planning if not in realisation, but the rest of the region is moving rather slowly to achieve any coordinated High Speed Rail network. On the eastern front, Vietnam has long discussed linking its lengthy land mass by a High Speed Rail system between Hanoi and Ho Chi Minh City. However, with a surprising degree of democratic expression, Vietnamâ&#x20AC;&#x2122;s National Assembly scuppered the project in mid-2010. But the High Speed Rail mania is not so easily cured and Japan pressed ahead with its Shinkansen bullettrain technology which would have linked Hanoi with Ho Chi Minh City in five and a half hours instead of the current 30 hours by train or two hours by air. Revised plans are now under discussion for a project for 160 to 200 kilometre per hour trains instead of the previously-proposed 300 kilometre per hour trains. This could reduce the budgeted US$ 50 billion capital cost by 20 percent. Reluctant to abandon altogether the break-neck speed concept, however, the track design may accommodate Shinkansen trains at some time in the future.

For Cambodia, rail renovation staggers on with an Asian Development Bank-funded project still painfully rehabilitating the shattered system. In terms of ASEAN linkages, Cambodia has definite disadvantages. There is no rail link between Phnom Penh and Ho Chi Minh City, and the former link with Thailand was broken, when for safetyâ&#x20AC;&#x2122;s sake the Khmer Rouge removed the section of track between Sisophon and Aranyaprathet, to deter invaders from buying one-way rail tickets. Although re-establishing the rail linkage, at least for slow-speed transport, appears advantageous, the Thai side, perhaps mindful of the continuing Khao Preah Vihear (Khao Phra Viharn) dispute, have shown little intention to upgrade the Eastern Line which links Bangkok through Chachoengsao with Prachinburi, Sa Kaeo, Aranyaprathet through to the border. So a gap in the rail system remains, preventing through rail traffic between Cambodia and Thailand. Myanmar, as with all infrastructure schemes, has grandiose plans to upgrade its creaking rail system which is more primitive today than it was at the outset of the Second World War

in 1939. There are, inevitably, High Speed Rail plans to link Yangon with Kunming as well as East-West linkages with Thailand and India. Given the opportunity to develop direct transport channels between Yunnan and the Bay of Bengal China is not unlikely to press forward on a High Speed Rail system although a conventional rehabilitation of the existing, decrepit but operating railway would be more logical but less glamorous. Meanwhile, real developments to match the Thailand and Laos schemes are now taking place down South. Linking Singapore with Kuala Lumpur with High Speed Rail is common sense, especially since Kuala Lumpur International Airport feels like half-way to Singapore before one even steps aboard an aircraft. The Prime Ministers of Malaysia and Singapore jointly agreed to develop a High Speed Rail system in February 2013, amid much media hype for a project that has long been in abeyance. Previous prime ministers took to bickering with Dr. Mahathir even threatening to demolish the linking causeway between Malaysia and Singapore and cut off the water supply.

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All is now folksy so the proposed High Speed Rail will enable the journey between Kuala Lumpur and Singapore to take just 90 minutes by train - about the same time as just getting from Kuala Lumpur City Centre to the airport by road. Even the â&#x20AC;&#x2DC;fastâ&#x20AC;&#x2122; airport train takes nearly half an hour. The proposed High Speed Rail route will also take in Serembon, Malacca and Johor Bahru and will provide very evident economic benefits to both countries. The bad news for Thailand is that there is little practical talk about a northward linkage via Ipoh with Padang Besar on the Thailand Malaysia border. That could mean that Thailandâ&#x20AC;&#x2122;s own High Speed Rail could land its travellers and freight in the middle of the rice fields on the Thailand side of the border. Most probably the traditional delays which beset Thailand infrastructure projects would take care of that. It could be that, round about 2032, the Malaysians might be stuck at their side of the Padang Besar border, their own High Speed Rail bridgehead duly completed, and yet with no sign of Thai tracks beyond. Hope for the best, prepare for the worst The next couple of decades look like being a new railway age for ASEAN. Many a track will be laid and many a billion will be spent in the hope of connectivity, fuel and operational efficiency. The cost will be massive and will no doubt escalate over the course of the implementation period. For Thailand, Vietnam and Laos the likely total cost will exceed US$ 100 billion with Laos alone having to fund an outlay of US$ 15 billion, a staggering cost for so small and little developed a country. The irony is that, with such substantial funding, each country could develop, rehabilitate and expand its existing rail system (if any) and still have ample funding for state-of-the

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Issue 5/2013

Thailand is tilting towards high speed rail - but will the trains be mimicking the Pendolino?

art healthcare, education and social welfare. Misuse of funds, and questionable transparency in their usage, could present heavy budgetary burdens for future generations. Rail systems require track and rolling stock. In this respect the SRT is in a rather perilous position. The High Speed Rail scheme proposes to adopt Standard Gauge (1,435 metre) whereas the regular SRT network will retain the present metre gauge, operating at speeds of 160 kilometres per hour for commuter trains and up to 120 kilometres per hour for regular passenger trains. Therefore existing rolling stock can continue in use on new and upgraded metre gauge tracks. The locomotive fleet has not been able to achieve speeds beyond 60 kilometres per hour. Of 204 reported stock locomotives, 45 were pre-1967, 102 pre-1981, and 57 pre-1996 vintage. Much of the other rolling stock is not designed for modern usage and is due for scrapping. The 440 railway

stations will mostly require extensive repairs and upgrading. Traffic control and signalling systems need replacing. There are nearly 2,500 crossing points between road and rail throughout the SRT rail system. Only 10 percent of these have overpasses or underpasses. Many level crossings are without adequate safety measures, resulting in 100 to 200 accidents per year. Improvements to safety systems are a priority.

Christopher Bruton Director for Thailand and Indochina Dataconsult Ltd. Email: chris@dataconsult.co.th Phone: +66 2233-5606/7 Fax: +66 2236-8143

Adding value to Thailand’s creaking railway network T

he Government will add value to train services and develop railway infrastructure on a long-term basis, according to Thailand’s Board of Investment. The BOI’s latest newsletter states that the government ‘would focus on improving train services to encourage more people to travel by train. A study will be conducted on train services as a contributor to the country’s economic development. The Bang Sue-Rangsit Red Line will be selected as the prototype for the study on the train system development plan. The study will also cover personnel development, expenses and other issues, such as the sale of ‘One Tambon, One Product’ (OTOP), prod-

ucts at train stations. Prime Minister Yingluck Shinawatra reportedly stated that the sale of OTOP prod-

ucts would generate more income to local communities. The Government will also focus on investment to replace old locomotives and build double-track lines. In the development plan, all existing railway lines will be changed to double-track lines to facilitate transport and logistics system in Thailand. At the same time preparations will be made for investment in the highspeed train system as part of the Government’s investment in THB two trillion infrastructure mega-projects. The BOI adds that the high-speed train project, under the two-trillionbaht investment plan, will provide initially track covering some 1,447 kilometres in length passing through 24 provinces with more than 200 trips a day and will provide service for more than 40 million passengers a year.

The Link

Issue 5/2013

>ĞĂƌŶŝŶŐ ĨŽƌ >ŝĨĞ Ăƚ ĂŶŐŬŽŬ WĂƚĂŶĂ ^ĐŚŽŽů

Ɛ ĐŚŝůĚƌĞŶ ŐƌŽǁ ƵƉ͕ ƚŚĞǇ ŶĞĞĚ ƚŽ ĚĞǀĞůŽƉ ƚŚĞ ƐŬŝůůƐ ƚŚĂƚ ǁŝůů ƐĞƌǀĞ ƚŚĞŵ ƚŚƌŽƵŐŚ ƚŚĞŝƌ ƚĞĞŶĂŐĞ ǇĞĂƌƐ ĂŶĚ ƚĂŬĞ ƚŚĞŵ ŝŶ ƚŽ ƚŚĞ ĂĚƵůƚ ǁŽƌůĚ͘ ^ŽŵĞ ŽĨ ƚŚŽƐĞ ƐŬŝůůƐ ĂƌĞ ĂĐĂĚĞŵŝĐ͘ ƚ ĂŶŐŬŽŬ WĂƚĂŶĂ ^ĐŚŽŽů͕ ǁŚŝĐŚ ŽīĞƌƐ Ă ƌŝƟƐŚ ĐƵƌƌŝĐƵůƵŵ ŝŶĐŽƌƉŽƌĂƟŶŐ ďĞƐƚ ƉƌĂĐƟĐĞƐ ĨƌŽŵ ĂƌŽƵŶĚ ƚŚĞ ǁŽƌůĚ͕ ϵϵй ŽĨ zĞĂƌ ϲ ƐƚƵĚĞŶƚƐ ĂĐŚŝĞǀĞĚ Žƌ ĞǆĐĞĞĚĞĚ ƚŚĞŝƌ ĂŐĞͲƌĞůĂƚĞĚ ĞǆƉĞĐƚĂƟŽŶƐ ŝŶ ŶŐůŝƐŚ ĂŶĚ DĂƚŚĞŵĂƟĐƐ ůĂƐƚ ǇĞĂƌ͕ ĐŽŵƉĂƌĞĚ ƚŽ ϴϭй ŝŶ ƚŚĞ h<͘ ,ŽǁĞǀĞƌ͕ ŶŽƚ Ăůů ŽĨ ůŝĨĞ͛Ɛ ůĞƐƐŽŶƐ ƚĂŬĞ ƉůĂĐĞ ŝŶ ƚŚĞ ĐůĂƐƐƌŽŽŵ͘ ĂŶŐŬŽŬ WĂƚĂŶĂ ƐƚƵĚĞŶƚƐ ĂƌĞ ĞŶĐŽƵƌĂŐĞĚ ƚŽ ƚŚŝŶŬ ĂŶĚ ůĞĂƌŶ ĨŽƌ ƚŚĞŵƐĞůǀĞƐ͕ ƚŽ ĚŝƐĐŽǀĞƌ ƚŚĞŝƌ ŝŶƚĞƌĞƐƚƐ ĂŶĚ ƚŚĞ ǀĂůͲ ƵĞ ŽĨ ŝŶĚĞƉĞŶĚĞŶĐĞ͘ ĂƚĞƌŝŶŐ ĨŽƌ ƐƚƵĚĞŶƚƐ ĂŐĞĚ ĨƌŽŵ Ϯ Ъ ƚŽ ϭϴ͕ ƚŚĞ ƐĐŚŽŽů ŐŝǀĞƐ ƚŚĞŵ ƚŚĞ ƟŵĞ ĂŶĚ ƐƉĂĐĞ ƚŽ ůĞĂƌŶ ǁŚŽ ƚŚĞǇ ĂƌĞ ĂŶĚ ǁŚĂƚ ƚŚĞŝƌ ƚĂůĞŶƚƐ ĂƌĞ͕ ĂŶĚ Ăƚ ĞĂĐŚ ƐƚĂŐĞ ŽĨ ƚŚĞŝƌ ĞĚƵĐĂƟŽŶ͕ ĨƌŽŵ ĨŽƵŶĚĂƟŽŶ ƚŚƌŽƵŐŚ ƚŽ ŐƌĂĚƵĂͲ ƟŽŶ͕ ƐƚƵĚĞŶƚƐ ƚĂŬĞ ŽŶ ŵŽƌĞ ƌĞƐƉŽŶƐŝďŝůŝƚǇ ĂŶĚ ĚĞǀĞůŽƉ ƚŚĞŝƌ ƐŬŝůůƐ͘ ͞/ƚ ŝƐ Ă ƵŶŝƋƵĞ ƐĐŚŽŽů Ͳ ƚŚĞƌĞ ŝƐ ŶŽ ŽƚŚĞƌ ůŝŬĞ ŝƚ͕ ĂŶĚ ŵǇ ĐŚŝůĚƌĞŶ ĂƌĞ ƉƌŽƵĚ ƚŽ ĂƩĞŶĚ ĂŶŐŬŽŬ WĂƚĂŶĂ͕͟ ƐĂŝĚ ƉĂƌĞŶƚ ŶŶĞ dŚĞŽĚŽƵůŽƵ͕ ǁŚŽ ŚĂƐ Ă ĚĂƵŐŚƚĞƌ ŝŶ zĞĂƌ ϰ ĂŶĚ ƚǁŽ ŽƚŚĞƌ ĐŚŝůĚƌĞŶ ŝŶ ƚŚĞ ^ĞĐŽŶĚĂƌǇ ^ĐŚŽŽů͘ /Ŷ <ĞǇ ^ƚĂŐĞ Ϯ͕ ďĞƚǁĞĞŶƐ zĞĂƌƐ ϯ ĂŶĚ ϲ͕ ƚŚĞ ƐĐŚŽŽů ŚĞůƉƐ ŐƵŝĚĞ ǇŽƵŶŐ ůĞĂƌŶĞƌƐ ƚŽǁĂƌĚƐ ŵŽƌĞ ŝŶĚĞƉĞŶĚĞŶĐĞ ǁŚŝůƐƚ ŝŶƐƟůůŝŶŐ ŝŶ ƚŚĞŵ ƚŚĞ ĐŽŶĮĚĞŶĐĞ ƚŚĞǇ ŶĞĞĚ͘ ͞dŚĞ ƐŚĞĞƌ ďƌĞĂĚƚŚ ŽĨ ŽƉƉŽƌƚƵŶŝƟĞƐ ŚĞůƉƐ ĞĂĐŚ ĐŚŝůĚ ĮŶĚ ƚŚĞŝƌ ŶŝĐŚĞ ĂŶĚ ĚĞǀĞůŽƉ ŝƚ͕͟ ƐĂŝĚ ĂƌŽů ĂƩƌĂŵ͕ ^ĞŶŝŽƌ dĞĂĐŚĞƌ ĨŽƌ <ĞǇ ^ƚĂŐĞ Ϯ͘ ͞dŚĞ ƐĐŚŽŽů ůŽŽŬƐ ƚŽ ĚĞǀĞůŽƉ ĞĂĐŚ ĐŚŝůĚ͛Ɛ ŝŶĚĞƉĞŶĚĞŶĐĞ ĂƐ ůĞĂƌŶĞƌƐ ĂŶĚ ŝŶĚŝǀŝĚƵĂůƐ͕ ĂŶĚ ƚŚŝƐ ƐĞůĨͲƌĞůŝĂŶĐĞ ŝƐ ŝŶƚƌŝŶƐŝͲ ĐĂůůǇ ůŝŶŬĞĚ ƚŽ ƚŚĞ WƌŝŵĂƌǇ ZĞƐŝĚĞŶƟĂů ǀŝƐŝƚƐ͕ ǁŚŝĐŚ ƐƚĂƌƚ ǁŝƚŚ ŽŶĞ ŶŝŐŚƚ ƐƉĞŶƚ ŝŶ ƐĐŚŽŽů ĚƵƌŝŶŐ zĞĂƌ Ϯ͕ ĂŶĚ ďƵŝůĚ ƵƉ ƚŽ ĮǀĞ ŶŝŐŚƚƐ ƐƉĞŶƚ ŝŶ EŽƌƚŚĞƌŶ dŚĂŝůĂŶĚ Ăƚ ƚŚĞ ĞŶĚ ŽĨ ƚŚĞ WƌŝŵĂƌǇ ^ĐŚŽŽů͘͟ dĞĂĐŚŝŶŐ ĐŚŝůĚƌĞŶ ŚŽǁ ƚŽ ďĞ ŝŶĚĞƉĞŶĚĞŶƚ ĚŽĞƐŶ͛ƚ ŚŽǁĞǀĞƌ ŵĞĂŶ ƚŚĞǇ ĂƌĞ ŽŶ ƚŚĞŝƌ ŽǁŶ ʹ ĂŶŐŬŽŬ WĂƚĂŶĂ ^ĐŚŽŽů ŝƐ ƉƌŽƵĚ ŽĨ ƚŚĞ ƐƚƌŽŶŐ ƐĞŶƐĞ ŽĨ ĐŽŵŵƵŶŝƚǇ ĨĞůƚ ďǇ ƐƚƵĚĞŶƚƐ ĂŶĚ ƐƚĂī͘ ͞dŚĞ WƌŝŵĂƌǇ ƚĞĂĐŚĞƌƐ ƐĞĞ ƚŚĞ ĐŚŝůĚƌĞŶ ĂƐ ŝŶĚŝǀŝĚƵĂůƐ ĂŶĚ ŐŝǀĞ ƚŚĞŵ ƚŚĞ ŽƉƉŽƌƚƵŶŝƚǇ ƚŽ ƐŚŝŶĞ ŝŶ ĂƌĞĂƐ ƚŚĂƚ ƌĞŇĞĐƚ ƚŚĞŝƌ ƉĂƐƐŝŽŶƐ ʹ ǇŽƵ ŐĞƚ ƚŚĞ ĨĞĞůŝŶŐ ƚŚĂƚ ƚŚĞ ƚĞĂĐŚĞƌƐ ĐĂƌĞ ĂďŽƵƚ ƚŚĞ ĐŚŝůĚƌĞŶ͕ ƚŚĞǇ ŐŽ ƚŚĞ ĞǆƚƌĂ ŵŝůĞ ĂŶĚ ĚŽ ƚŚĞ ũŽď ďĞĐĂƵƐĞ ƚŚĞǇ ůŽǀĞ ŝƚ͕͟ ĞǆƉůĂŝŶĞĚ DƌƐ dŚĞŽĚŽƵůŽƵ ^ŚĞ ƐĂŝĚ ƐŚĞ ŚĂĚ ƐĞĞŶ ĨŽƌ ŚĞƌƐĞůĨ ŚŽǁ ŚĞƌ ĐŚŝůĚƌĞŶ͛Ɛ ƐŬŝůůƐ ĂŶĚ ĐŽŶĮĚĞŶĐĞ ŚĂƐ ŐƌŽǁŶ ŝŶ ƚŚĞ ƟŵĞ ƚŚĞǇ ŚĂǀĞ ďĞĞŶ Ăƚ ƚŚĞ ƐĐŚŽŽů͘ ͞dŚĞǇ ĂƌĞ ĐŽŵĨŽƌƚĂďůĞ ƚŽ ƐƚĂŶĚ ƵƉ ĂŶĚ ŐŝǀĞ ƉƌĞƐĞŶƚĂƟŽŶƐ ƚŽ ŽƚŚĞƌƐ ĂďŽƵƚ ǁŚĂƚ ƚŚĞǇ͛ǀĞ ůĞĂƌŶĞĚ͕ ǁŚŝĐŚ ŚĂƐ ďĞĞŶ ĞǆƉĞĐƚĞĚ ŽĨ ƚŚĞŵ ĨƌŽŵ ĂŶ ĞĂƌůǇ ĂŐĞ͘ dŚŝƐ ŝƐ ǀĞƌǇ ďĞŶĞĮĐŝĂů ĨŽƌ ůŝĨĞ ŝŶ ŐĞŶĞƌĂů ĂŶĚ ǇŽƵ ĐĂŶ ƐĞĞ ƚŚĞŵ ŐƌŽǁ ŝŶ ĐŽŶĮĚĞŶĐĞ ĂĂƐ ƚŚĞǇ ƉƌŽŐƌĞƐƐ ƚŚƌŽƵŐŚ ƚŚĞ ƐĐŚŽŽů͖ ǁŚĞƌĞǀĞƌ ƚŚĞǇ ŐŽ ŝŶ ƚŚĞ ĨƵƚƵƌĞ͕ ĂŶŐŬŽŬ WĂƚĂŶĂ ǁŝůů ďĞ Ă ŚĂƌĚ ĂĐƚ ƚŽ ĨŽůůŽǁ͊͟ ƐŚĞ ƐĂŝĚ͘ Ɛ ƚŚ Ɛ ƚŚĞǇ ĞǇ Ɖ ƉƌŽ ƌŽŐŐƌĞ ƌĞƐƐ ƐƐ ƚŚ ƚŚƌŽ ƌŽƵ ƵŐŚ ŐŚ ƚŚ ƚŚĞ ƐĐ Ğ ƐĐŚ ŚŽŽ ŽŽůů͖ ͖ ǁ ǁŚĞƌ ĞƌĞǀ ĞǀĞƌ Ğƌ ƚŚ ƚŚĞǇ ĞǇ ŐŽ Ž ŝŝŶ Ŷ ƚŚ ƚŚĞ Ğ ĨĨƵƚƵƌĞ͕ ƵƌĞ͕ ĂŶ ĂŶŐŬ ŐŬŽ ŽŬ WĂƚĂŶĂ ůƵŵŶŝ ŝ Ĩƌ ůƵŵŶ ĨƌŽŵ ƚŚĞ ƐĐŚŽŽů ĂƌĞ ǁŽƌŬŝŶ Žŵ ƚŚĞ ƐĐŚŽŽů ĂƌĞ ǁŽƌŬŝŶŐŐ ůƵŵŶŝ ĨƌŽŵ ƚŚĞ ƐĐŚŽŽů ĂƌĞ ǁŽƌŬŝŶŐ ĂŶĚ ƐƚƵĚǇŝŶŐ Ăůů ŽǀĞƌ ƚŚĞ ǁŽƌůĚ͕ ď Ƶƚ ŶŽ Ƶƚ Ŷ Ž ŵ ŵ ďƵƚ ŶŽ ŵĂƩĞƌ ǁŚĞŶ ƚŚĞǇ ůĞŌ͕ ƚŚĞǇ ƐƟůů ĐĂƌͲ ƌƌǇ ǁŝƚŚ ƚŚĞŵ Ă ůŝĨĞůŽŶŐ ůŽǀĞ ŽĨ ůĞĂƌŶŝŶŐ Ǉ ǁŝƚƚŚ Ǉ ǁŝ ĨƌŽŵ ƚŚĞŝƌ ǇĞĂƌƐ Ăƚ ƚŚĞ ƐĐŚŽŽů͘ ĨƌŽ Ĩƌ Žŵ ͞͞KƵƌ ƐƚƵĚĞŶƚƐ ƚĂŬĞ ǁŝƚŚ ƚŚĞŵ Ă ƐĞŶƐĞ K ŽĨ ĂƐƐƵƌĂŶĐĞ ĂďŽƵƚ ǁŚŽ ƚŚĞǇ ĂƌĞ͖ Ă Ž Ĩ ĚĞǀĞůŽƉĞĚ ƐĞŶƐĞ ŽĨ ŝŶŶĞƌ ĐŽŶĮͲ Ě Ě ĚĞŶĐĞ ĂŶĚ ĂŶ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŽĨ ƚƚŚĞŝƌ ŽǁŶ ƐƚƌĞŶŐƚŚƐ͕͟ ĂƌŽů ĂƩƌĂŵ ƐƐĂŝĚ͘ ͞dŚĞǇ ĂůƐŽ ƵŶĚĞƌƐƚĂŶĚ ƚŚĂƚ ƚŚĞǇ ǁŝůů ĂůǁĂǇƐ ďĞ ǁĞůĐŽŵĞ Ăƚ ƐĐŚŽŽů ĂƐ ƉĂƌƚ ŽĨ ƚŚĞ ĂŶŐŬŽŬ WĂƚĂŶĂ ĐŽŵŵƵŶŝƚǇ͘͟

ǁǁǁ͘ƉĂƚĂŶĂ͘ĂĐ͘ƚŚ ͮнϲϲ ;ϬͿ Ϯϳϴϱ ϮϮϬϬ ͮ ĂĚŵŝƐƐŝŽŶƐΛƉĂƚĂŶĂ͘ĂĐ͘ƚŚ ͮ ϲϰϯ >Ă^ĂůůĞ ZŽĂĚ ;^ƵŬŚƵŵǀŝƚ ϭϬϱͿ͕ ĂŶŐŬŽŬ

/ŶƐƉŝƌŝŶŐ ŝŶĚĞƉĞŶĚĞŶƚ ůĞĂƌŶĞƌƐ ƚŽ ĨƵůĮů ƚŚĞŝƌ ŝŶĚŝǀŝĚƵĂů ƉŽƚĞŶƟĂů ĞǀĞůŽƉŝŶŐ ƌŝƟĐĂů dŚŝŶŬŝŶŐ

ŶĐŽƵƌĂŐŝŶŐ /ŶƋƵŝƌǇ

ƚ ĂŶŐŬŽŬ WĂƚĂŶĂ ǁĞ ƉƌŽǀŝĚĞ ƚŚĞ ĞƐƐĞŶƟĂů ƌŝŐŽƵƌ ŽĨ Ă ƌŝƟƐŚ ĐƵƌƌŝĐƵůƵŵ ŝŶĐŽƌƉŽƌĂƟŶŐ ďĞƐƚ ƉƌĂĐƟĐĞ ĨƌŽŵ ŽƚŚĞƌ ƉƌŽŐƌĂŵŵĞƐ ƚŽ ƌĞŇĞĐƚ ŽƵƌ ŝŶƚĞƌŶĂƟŽŶĂů ƐĞƫŶŐ͘ KƵƌ Ăŝŵ ŝƐ ƚŽ ĚĞǀĞůŽƉ ǇŽƵŶŐ ƉĞŽƉůĞ ǁŚŽ ĂƌĞ ŚŝŐŚůǇ ƐŬŝůůĞĚ͕ ŝŶĚŝǀŝĚƵĂů ůĞĂƌŶĞƌƐ͘

WƌŽŵŽƟŶŐ /ŶǀĞƐƟŐĂƟŽŶ

ƚ ŬĞǇ ƉŽŝŶƚƐ ǁŝƚŚŝŶ ƚŚĞ WƌŝŵĂƌǇ ^ĐŚŽŽů ǁĞ ďĞŶĐŚͲ ŵĂƌŬ ŽƵƌƐĞůǀĞƐ ĂŐĂŝŶƐƚ h< ƐĐŚŽŽůƐ ƵƐŝŶŐ EĂƟŽŶĂů ƵƌƌŝĐƵůƵŵ dĞƐƚƐ͘ >ĂƐƚ ǇĞĂƌ ϵϵй ŽĨ ŽƵƌ zĞĂƌ ϲ ƐƚƵĚĞŶƚƐ ĂĐŚŝĞǀĞĚ ƚŚĞŝƌ ĂŐĞͲ ƌĞůĂƚĞĚ ĞǆƉĞĐƚĂƟŽŶ͕ Žƌ ĂďŽǀĞ͕ ŝŶ ŶŐůŝƐŚ ĂŶĚ DĂƚŚĞŵĂƟĐƐ͕ ĐŽŵƉĂƌĞĚ ƚŽ ϴϭй ŝŶ ƚŚĞ h<͘

ƵŝůĚŝŶŐ ŵƉĂƚŚǇ

Ğ ĂůƐŽ ƵŶĚĞƌƐƚĂŶĚ ƚŚĞ ŝŵƉŽƌƚĂŶĐĞ ŽĨ ůĞƐƐŽŶƐ ůĞĂƌŶĞĚ ŽƵƚƐŝĚĞ ƚŚĞ ĐůĂƐƐƌŽŽŵ͘ ǆƚĞŶƐŝǀĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ĨŽƌ ĐŚŝůĚƌĞŶ ƚŽ ŇŽƵƌŝƐŚ ĂŶĚ ĚĞǀĞůŽƉ ƚŚĞŝƌ ƉĞƌƐŽŶĂů ŝŶƚĞƌĞƐƚƐ ĂƌĞ ƉƌŽǀŝĚĞĚ ƚŚƌŽƵŐŚ ŽƵƌ ĞǆƚĞŶƐŝǀĞ ĞǆƚƌĂͲĐƵƌƌŝĐƵůĂƌ ĂĐƟǀŝƟĞƐ ƉƌŽŐƌĂŵŵĞ͘

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Thailand takes lead as Chambers forge new links with UKTI Project Director Barry Nicholson outlines the exciting partnership between UKTI and the BCCT that will reap huge long term dividends for British business.

CCT has signed up to an exciting programme which will place the Chamber in the front line of delivering UK government support for new and experienced exporters. This will enable BCCT to expand the range of services on offer to UK companies whilst also providing additional benefits to all BCCT members. The BCCT is at the vanguard in the formulation and delivery of the Project and the Project and will be closely involved in the evolving strategic framework. Of the 20 pilot countries BCCT is regarded by UKTI as one of the leading Britchams. Five of the 20 are in south east Asia. Rationale and background

BCCT Chairman Simon Landy and British Ambassador Mark Kent jointly signed an agreement between BCCT and UK Trade and Investment (UKTI). The signing was witnessed by visiting British Minister of State for Trade and Investment Lord Green of Hurstpierpoint.

The genesis of this initiative is the UK government’s desire to increase UK exports and the number of exporters. By 2020 the UK is seeking to double exports to GBP one trillion per annum, to have 100,000 more companies exporting, and to increase the ratio of companies exporting to one in four as opposed to one in five at present.

ity of services offered (by overseas business networks) – particularly to smaller companies seeking to establish themselves abroad’. A comprehensive review of UK business network capability was consequently undertaken in 2012 by Lord Green and Lord Heseltine that included comparisons to the support offered by leading competitors.

To deliver this strategic goal the Prime Minister commissioned Trade Minister Lord Green, in March 2012, ‘to work with British business at home and overseas to increase the quantity and qual-

Their key findings were that UK B2B institutional capability was under-resourced and uncompetitive; business networks were fragmented; the customer journey and experience was often poor; and the government-led

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service delivery was undermining the private sector. Accordingly, the UK government decided that a shift in the type of service provided to exporters was urgently required. This programme has greater emphasis on partnership and delivery within the UK by the British Chambers of Commerce (BCC) and overseas by British Chambers or their equivalents. This initiative has long term significance and this has been recognised by the provision of cross-party support as evidenced by the quotes below:

“We will further promote exports … and use private sector delivery partners, such as overseas chambers of commerce, to help exporters and target potential inward investment into the UK.” The UK coalition government mid-term review (January 2013). “If it is working, then we should keep it, and we’ll want to work with you [the Chambers].” Ed Miliband, Leader of The Labour Party (March 2013)

ferred and which overseas Chambers should act as pilots. Twenty one markets globally were initially chosen to act as pilot ventures with an additional 20 in a second wave. Thailand, Singapore, Malaysia, Indonesia, Myanmar, Cambodia and Vietnam are the chosen markets within ASEAN and to date, each are at various levels of project implementation. Respective roles of Chambers and UKTI

The UK Vision UKTI’s major objectives for the programme are: • By 2017 the support available to UK SMEs will have significantly increased in range and impact in at least 41 markets that are hardest to access and where SMEs most need help • The private sector, through stronger business to business networks, will be Government’s lead partner in the provision of SME support - enabling Government to focus upon where it adds most value: high value opportunities, inward investment, government to government influencing • Success will be practical business support that is comprehensive, compelling and, at a minimum, on par with the services on offer to competitors. The end-to-end customer journey will be simple and seamless • By 2017 there will be a cohesive, accredited (by BCC) global network of business-led, business backed, government supported organisations supporting UK SMEs The new model To fulfil this vision, by making a fundamental shift to providing export assistance through the Chamber network, the next steps for UKTI were to identify a coherent framework for delivery, to provide a level of funding that would allow a smooth transfer of services to the Chambers within the 2013/14 timetable and to decide which UKTI services should be trans-

UKTI will primarily concentrate on three areas: inward investment (into the UK) and on the trade side; defence sales, government-to-government relationships, High Value Opportunities (HVOs, typically major infrastructure projects), assisting UK major corporates inn such areas as lobbying and access to local and national governments and trade policy issues. BCCT will begin to offer some UKTI services to SMEs, such as market/sector research; initial advice on market access and introductions to potential customers; trade mission briefings; event arranging (seminars, webinars etc.); building relationships with the British Chamber of Commerce, the UK regional Chamber offices and those overseas (directly and through BISEA, Britain in South East Asia, the regional grouping of Britchams in South East Asia) and promoting Thailand as an export market and a market for FDI to UK-based companies. Meanwhile the British Chambers of Commerce (BCC), which represents and accredits 53 UK Chambers of Commerce and some 100,000 businesses will work with UKTI and overseas chambers to establish a global accreditation standard that will be used to accredit the newlyformed overseas business networks and coordinate the UK Accredited Chamber network in the delivery of the programme. Work is also underway to implement a global B2B network that seamlessly connects the UK regions to overseas markets, including the development of a single digital platform.

Physical impact on BCCT BCCT members will be aware that a five-strong project team is being assembled over the course of the next two years. To accommodate the project team and provide additional services the BCCT is expanding into the adjoining office at 208, Wireless Road. The main changes include a new meeting/function room able to accommodate at least 60 people that will be equipped with state-of-theart AV equipment for presentations, webinars and video conferences. The existing meeting room at BCCT HQ will become the project team office with five work stations. New BCCT, New Opportunities We are very excited about this new phase in the development of the BCCT. Apart from taking on services and activities from UKTI that will be directed at UK companies there will also be a complementary expansion in the benefits available to all BCCT members. These include, inter alia: • BCCT members in services industries such as law, accounting, advertising, real estate, publishing, can benefit from selling their services to new entrants into the Thailand market. A significant amount of follow-up work could fall to BCCT member service companies e.g. legal – drawing up or checking agency or joint venture contracts, real estate – locating office, industrial or residential space, publishing – printing new corporate brochures • The move to a new larger, fit-forpurpose office with a dedicated function room means that BCCT members will benefit directly from better hot-desking, meeting facilities and ICT infrastructure • Having a dedicated function room will allow BCCT to organise a greater number of briefing events including sectoral presentations. Some of these will be transmitted via webinar. The function room will be hired out for use by members (e.g. those based outside Bangkok or those without access

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to such a resource) • Membership will be expanded as BCCT becomes the de facto organisation for UKTI services to UK SMEs, both UK and locally-based. Each UK company commissioning work under this Project is required to join BCCT under the ‘Headstart’ initiative and this too will result in new members and provide a direct contribution to BCCT income

• The Project allows BCCT to develop data and other capabilities that will benefit members both directly and indirectly • BCCT will become more directly involved as a player in Thai-UK relations and will consequently be better placed to help members with advocacy and lobbying issues • There will be much greater collaboration between UKTI and BCCT

in future to ensure cross-fertilisation of knowledge and joint events There is much to be done in the short term but I am positive that we will soon see the benefits: a bigger, better and more influential Chamber delivering even more services and business opportunities for members. We are excited about entering this new era for BCCT and I hope you are too.

New faces at BCCT as Chamber takes on trade push Barry Nicholson has joined the Chamber as Project Director, UKTI/ BCCT Overseas Business Network Project following a successful career at UK Trade & Investment (UKTI) covering markets, sectors and inward investment in London and overseas in China (8 years) and Trinidad and Tobago plus two years on secondment with the merchant banking arm of ANZ bank providing Project and Export Finance advice. He has managed very large UK government events and visits by the most senior members of successive UK governments. He has also advised UK companies of all sizes, and developed key contacts in the business community and in national and local government in the UK and overseas. He has a degree in Politics/Asian Studies from the University of Sussex and an Advanced Diploma in Trade from the Institute of Export.

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Miss Pintip Suwannasiri has joined the BCCT head office as Project Coordinator for the UKTI/BCCT Overseas Business Network Project. She graduated from the Convent of the Holy Infant Jesus, an English Secretarial School in Thailand and English for Business Communications in 1984 from Pitman Examination Institute – Godalming, Surrey, England - UK. For much of her career Khun Pintip has worked in the aviation and hospitality sectors and spent several years living and working in the UK.

FTA talks set for third round By Bradley Jones

t has been a busy couple of months in the UKTI Team at the Embassy – we have had several large business delegations visiting, including the entire Board of Prudential, the Under 35s Group from Lloyds, a British Expertise delegation, UK companies attending Powergen Asia and a ceramics delegation from North Staffordshire. In the next few weeks we will have business delegations in the defence and security and retail sectors visiting. I think this demontrates just how diverse the commercial opportunities are in Thailand for UK companies. I also spoke at the EcoBuild Trade Show in Kuala Lumpur last month, to raise awareness of the opportunities in the green buildings sector in Thailand – both in new constructions and retrofitting of exisiting buildings. There are one or two real stand-out examples of green buildings in Thailand – the Tesco Lotus Zero Carbon Store in Chonburi and the Park Ventures building in Bangkok (the only building in Thailand to have a LEED Platinum rating) spring to mind - so the potential for growth in this sector are significant. We would be delighted to assist any UK companies seeking opportunities in the development of green buildings in Thailand. In parallel, the EU and Thailand recently held the second round of Free Trade Agreement negotiations in Chiang Mai. At the time of going to press we are still awaiting a formal read-out but early indications suggest that the talks were positive, that all issues were discussed in detail, and that we are on course for a third round of talks in December. In October I will be joining the BCCT at a series of ‘Doing Business in Thai-

UK expertise could help to secure Asia’s energy future

land” events in the UK, as well as attending the BCC and UK ASEAN Business Council Annual Conferences there. This will be our first opportunity to talk to UK companies there about the new way in which UKTI and the BCCT will jointly deliver business support services. The BCCT have made a very impressive start in launching the project and will be fully operational early in 2014. At the end of October, Simon Burns, the UK’s Minister for Transport, will be visiting Thailand, to make good on a promise made by Lord Green and the Thai Transport Minister Chadchart Sittipunt to develop closer collaboration between the UK and Thailand on transport infrastructure development. The UK and Thailand will be signing an MOU on this during Mr Burns’ visit and a new UKThailand Working Group on Transport infrastructure will meet for the first time. The aim of the Working Group is to share best practice and exchange innovative ideas in relation to all aspects of transport infrastructure, from project financing to engineering consultancy and proj-

ect management. Having developed major projects in the UK in recent decades such as the Channel Tunnel and, more recently Crossrail, there is hopefully much to be gained by both sides in fostering closer collaboration. Mr Burns will also be raising awareness of road safety during his visit to Thailand, and will be speaking at a BCCT hosted dinner on transport and infrastructure policy issues. I look forward to seeing BCCT members at that event!

Bradley Jones is Director – UK Trade & Investment in Thailand, based at the British Embassy, 14 Wireless Road, Bangkok 10330. Tel: 02 305 8256 Fax: 02 255 8619 Email: bradley.jones@fco.gov.uk www.ukinthailand.fco.gov.uk

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Taxing issues By Paul Gambles

he OECD recently published data revealing that member countries’ average tax and social security burden on employment increased by 0.1 percent in 2012, to 35.6 percent overall. This comes on the back of a 0.5 percent increase in 2011. Since 2010 income tax burdens have risen in 23 out of the 34 OECD countries, largely because a higher proportion of earnings was subject to tax as the value of tax free allowances and tax credits fell relative to earnings. Given that 21 of the members are EU countries, including debt-stricken Greece, Ireland and Spain, this may come as no surprise as they desperately attempt to refill the state coffers. One of the countries with the largest increases due to higher statutory income tax rates was Spain. The other was Australia. However, the main reasons for the overall increase in the OECD total tax burden were changes to employer social security contributions. In fact, in 2012, only six countries had higher statutory income tax rates for workers on average earnings than in 2010. Eight countries were hit with an increased contribution rate: most notably Poland (a 1.2% increase), Slovakia (+0.8%) and the Netherlands (+0.6%). The OECD report also broke down the tax burdens average-wage earners: the top three for childless single workers were Belgium (56.0%), France (50.2%) and Germany (49.7%). The highest burdens for one-earner, twochild families earning an average wage were France (43.1%), Greece (43.0%) and Belgium (41.4%). Japan saw the overall largest increase for one earner families with children (+2.4%) in its tax burden in 2012 because of the abolition of tax allowances for dependent children.

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François Hollande

These figures show that states receive a huge income yet there is apparently still a huge whole in government budgets. It seems to me that the single biggest cause of global indebtedness is inadequate tax collection. Here we have the proof that governments are efficient in taxing the average earner. However, the inadequacy is in the taxation of high wealth and high income individuals, as well as corporate income.

force this show he is at least aiming to avoid economic inequality. After all, if the tax were to be imposed just thirteen members of the Paris StGermain squad (the reigning French football champions) would collectively contribute ¤145.7 million to the state over three years. If that example could be replicated across the globe, the mega-rich could do a lot to ease the strain with much less impact on global demand.

There is no doubt that governments need to increase tax collection in order to pay down debt. However, this must be done in a way that creates greater wealth and income equality. The OECD’s report suggests that the contrary is happening, with the average earner being hit instead. French president François Hollande may have been naïve to promise a 75 percent tax on those earning over ¤1m a year in his election campaign but his numerous attempts to en-

Paul Gambles is Managing Partner at MBMG Group and can be reached at info@ mbmg-international.com Tel: (66) 2 665 2534

ADB key indicators for Asia Pacific T

he Asian Development Bank has released Key Indicators for Asia and the Pacific 2013, which is now the 44th edition of this series, presenting the latest statistics on development issues facing the region. Asia and the Pacific region are currently home to about 55 percent of the world’s population, have six of the 10 most populous economies, and generated 36 percent of the global GDP in 2012 in purchasing power parity terms (PPP), reports the ADB. That is an eight percent increase from 2000 to 2012. As noted in previous reports by the World Bank and others, the amount of intraregional trade has increased, with the ADB reporting that it accounted for 56 percent of merchandise exports and half of all imports in the region in 2012. Thailand’s Ministry of Commerce reports trade between Thailand and Asia in 2012 accounted for 69.16 percent of the Kingdom’s total trade, with a value of US$331,440.96 million: exports of US$147,690.55 million accounting for 64.43 of total exports and an import value of US$183,750.41 accounting for 73.5 percent of total imports. Highlighted in the report is the importance of manufacturing, “so that labour does not simply move from low-productivity agriculture into low-productivity services.” Throughout Asia, agriculture still employs over 700 million people, or 42.82 percent of the region’s total employment. The report notes that countries with a large percentage of people employed in agriculture, including Thailand, need to develop industries and services to absorb the labour. At the same time, Thailand is among the few countries in the region where industry’s share of GDP is the highest.

ADB notes that between 1995 and 2010, “Thailand increased the number of products exported with RCA from 593 to 776. In 2012 it exported 2,246 products that belonged to the top product complexity tercile.” RCA is revealed comparative advantage of a country in a class of goods or services evidenced by trade flows.

46 percent are now employed in services. Although only 15 percent of the country’s total employment is listed in manufacturing, Thailand’s manufacturing output contributes a high 35 percent of GDP. ADB writes that once the labour surplus in agriculture is absorbed, then agriculture productivity will increase along with rural wages.

“Countries such as Malaysia and Thailand have developed institutional capacity to diversify their economies, but need to deepen and upgrade their industries to avoid being caught in the middle-income trap” says the ADB. It should be recalled that this is precisely what the secretary general of the Thailand Board of Investment explained during his presentation earlier in the year in regards to BOI’s evolving investment policy, and why the country is working hard to shift emphasis to industries that can accomplish this task.

For Thailand, writes the ADB, investment in high quality education will also be needed in order to upgrade the manufacturing sector. This is something that has been recognised at the highest levels of government, particularly in the light of impending competition within the AEC.

While Thailand is now an industrialised country, the ADB aptly reports that about 39 percent of the population is still employed in agriculture, while

The ADB notes that although Asia’s growth was more subdued in 2012 the tables reinforce its growing importance in the world. The time it takes to start and register a new business is declining across the region, and more than half of the economies have increased investment spending in recent years. All in all, Asia, it seems, remains the place to invest and grow a business. The Link

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Economic outlook I

n its recent Economic Outlook, ‘Thai Economic Performance in Q2 and Outlook for 2013’, the National Economic and Social Development Board (NESDB) reports that the global economy continues to recover at a modest pace, with stronger recovery in the United States, an improvement in Japan’s economy and an end of recession in the Eurozone. Despite this, the slower rate of recovery and the adjustments being made to China’s economy will continue to hamper global economic growth in 2013. Global economic expansion for the year, according to NESDB, will be at a rate of 3.3 percent, lower than the expected rate of 3.6 percent. Thailand’s economic growth rate for the year is expected within the range of 3.8 and 4.3 percent, according to NESDB. Thailand’s economy will improve in the second half of the year with respect to the growth achieved in the first half year, although NESDB outlines a number of issues that will limit the potential of the economy. These include “(i) limitation in exports sector, (ii) headwinds from a high base effect, (iii) the diminishing impulse from economic stimulus measures, (iv) the possibility of a delay in the implementation of public investment plans, and (v) the slow recovery of household income that depends on the exports condition and the price of agricultural products in the global market.” Looking at the results achieved thus far, NESDB informs that in the first half of 2013 the Thai economy expanded by 4.1 percent, but only by 2.8 percent in the second quarter, which was a slowdown from Q1 growth of 5.4 percent.

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For Q2 NESDB reports that private consumption expenditure expanded by 2.4 percent. A significant slowdown in car sales was evident in the quarter along with motorcycle sales. Combined growth for the first half year was 3.4 percent. Total investment expanded by 4.5 percent in Q2, although this too was less than the growth seen in Q1 which was 5.8 percent. NESDB reported that “prospect for new investments remains sound, as reflected by the application for investment incentives to the Board of Investment (BOI), representing an investment value of 358 billion baht, or a 72.0 percent increase.”

During the quarter, private investment decelerated to 1.9 percent growth, although the NESDB attributes this to the “abnormally high expansion in machinery and equipment investment in 2012”. In the second quarter, the export value was US$ 55.6 billion, which represents a 1.9 percent contraction from the same period of the previous year, although it was valued at US$111.7 billion for the first half year, an expansion of 1.2 percent. According to NESDB, this is due to the continued slow recovery in the global economy and the appreciation of the Thai Baht. NESDB lists products with positive export growth to

include automobiles, furniture and parts, metals and chemical products. Exports to some major markets contracted somewhat: US by 3.5 percent, EU (15) by 5.2 percent, and Japan by 6.2 percent, while exports to ASEAN (9) grew by 2.5 percent, Hong Kong by 7.8 percent, and Australia by 16.3 percent. The manufacturing sector also saw a slight contraction in Q2 of 1.0 percent, which, write NESDB, is “… reflected by MPI for export-oriented industries (with export ratio higher than 60 percent of total productions) which decreased by 13.8 percent due to the sluggish global economic recovery and the appreciation of Thai baht. However, the MPI of semi-export oriented industries (with export ratio of 3 0 -6 0 percent of total productions) rose by 8.6 percent owing to the continued growth in automobile production. The average capaci-

ty utilization was at 63.4 percent.” In the first half of 2013, manufacturing sector expanded by 2.0 percent. One sector that continues to support the economy is tourism, which during the first half of 2013 saw an historical high number of arrivals (12.7 million persons), increasing 20 percent year on year. “Furthermore, the tourism condition remains supportive as reflected in the 2013 World’s Best City Award conferred on Bangkok’s most attractive tourism destination and the 2013 World’s Top Travel Hotspot bestowed on most attractive tourist spot of the world. Thus, the ministry of tourism and sport adjusts its target for 2013 inbound tourists from 24.3 to 26 million persons while the NESDB also increases its forecast from 24.7 to 26.2 million persons.” Public debt stood at 44.1 percent of GDP at the end of June 2013, or a value of 5,209,332 million baht:

government debt of 3,642, 122 million baht and non-financial institution SOEs debt of 1,076,174 million baht and financial institution SOEs debt at 490,222 million baht. In reviewing economic management for the remaining of 2013, among the measures to strengthen the economy is acceleration of investment that has been granted BOI incentives. The BOI has already approved 1,271 projects during the January - July 2013 period, for a total investment value of 490.2 billion baht, up from 411.7 billion baht over the same period last year. While the Thai economy continues to improve in the face of global headwinds, albeit at a slower pace, the applications being processed at BOI reflect the continued commitment and confidence of the business community in Thailand as the place to invest for the future.

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All the fun of the Fair What is the Ploenchit Fair?

What will I find at the Ploenchit Fair?

The Ploenchit Fair is quite simply Bangkok’s Big Day Out. Arguably the biggest Fair in Asia, it has been part of the social scene in Thailand since the first Fair was held at the British Embassy in 1957.

There’s something for everyone at the Fair – games, rides and competitions for the kids and adults including a Ferris Wheel, Bungee Jump, Water Roller Ball, Hands Spin Boats, Giant Slide, Golf, Coconut Shy, Grand Raffle to name but a few. The main stage hosts a variety of excellent bands and performers through out the day while a genuinely mind boggling array of food and drink is available from some of the best bars and restaurants in Bangkok.

Everybody comes to the Ploenchit Fair – the theme is a traditional British fairground and it’s a day to meet all your friends, pick up some fabulous bargains, sample great international cuisine, exhaust the children with a variety of fun fair games and rides, or just knock back some champagne, cold beer or even Pimms while enjoying great bands who perform throughout the afternoon on the main stage. When is it? The Fair will be held on Saturday 23rd November from 10.00 am – 9.00 pm Where is the Fair being held? This year the Fair will take place at Bangkok Patana School, 643 Soi La Salle, Sukhumvit 105 and there will be a free shuttle bus service from Bang Na skytrain to and from the Fair. There is also ample parking.

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Get all your Christmas shopping done early at Petticoat Lane Bazaar where some 70 vendors sell beautiful handicrafts, home wares, clothes and accessories, books, jewellery and everything

else you never knew you needed. Tesco and Boots, our high street giants have gift-sets, hampers and special prices for you. Why is it called the Ploenchit Fair? Prior to 2001 the Fair had been held in the gardens to the British Embassy for over four decades on Ploenchit Road. The Fair is held in such high affection and the name has become so well known that it has stuck despite several subsequent relocations. Is it only the British Community who helps or goes to the Fair? Definitely not! You will find almost every nationality represented amongst the stallholders and visitors to the Fair. Whilst the Fair may have started as a way for the British Community to express their appreciation to their Thai hosts and share a traditional bit of British fun, they are now enthusiastically joined by many nations. Who runs the Ploenchit Fair? The fair is planned, organized and managed by the BCTFN along with an army of over 2000 volunteers. Many organisa-

tions assist the BCTFN hugely including private and public companies, businesses and the British Embassy. What does the BCTFN stand for? BCTFN stands for the British Community in Thailand Foundation for the Needy. The organisation has evolved from humble beginnings in 1946 as the simply titled ‘Charity Fair’, through to the 1950’s when it became established as the United Kingdom Committee for Thai Charities (UKCTC) under the auspices of the British Embassy and in 1999 when the UKCTC became a fully authorised and recognised Thai Charity Foundation.

What happens to the money that the Fair raises? The BCTFN disburses funds to a wide range of projects (see below). Since the year 2000 alone, the Fair has raised over 60 million baht which has benefited a diverse range of organisations. In recent years, priority has been given to self-

help projects that benefit and enable a community to become self-sustaining. Assistance has also been given in the provision of basic necessities and equipment to improve healthcare, nutrition, education, agricultural projects and the disabled throughout Thailand Donations are never made in cash. Once a project is approved, building plans, estimates and invoices etc will be met by the BCTFN and payment made directly to contractors and suppliers. Details of projects are on the website www.bctfn.org and www.ploenchitfair.org To contact BCTFN: 591/17 Sukhumvit Road Soi Villa, between Soi 33 and 33/1 Bangkok 10110 Tel: 02 204 1587 Email: bctfn@loxinfo.co.th

The name changed to reflect Thai law which requires the name of the charitable foundation to clearly reflect the purpose of the charity.

Charities supported since Ploenchit Fair 2012 Organisation

Location

Donation

Camillian Home for Children living with Disabilities

Bangkok

240,000

Pumping system for the new aquatic-therapy pool for disabled children.

Deejai Foundation

Bangkok

150,000

Approved books for 5 schools in Kanchanaburi, Prajeenburi, Petchburi and Prachuabkirikhan.

Rural Medical Aid Foundation

Bangkok

200,000

Drug expenses for their volunteer doctors weekend visits to rural upcountry sites - 8 trips - 2,500 patients treated to date.

Christian Care Foundation for Children with Disabilities

Bangkok

62,000

Transportation costs for 350 children from 3 orphanages and special education schools to atttend up-country camp

Father Ray's Foundation

Pattaya

158,000

Cost of setting up a project with provides safe living and education for 850 underprivileged children and students with special needs which cannot be accessed in the Pattaya area.

Kanchanaburi

168,000

Water storage tanks, computer batteries and electric wheelchair.

Bangkok

120,000

Fund to enable the Church to support Shalem House which caters for families attending hospitals for specialist treatments from up-country.

Saeng Sawan Orphanage

Nakon Sawan

59,000

Drinking water facilities for this orphanage for children

Rajaphat University sponsored students Annual building programme

Nakon Sawan

208,400

St. Joseph's Home

Betong

175,000

Khom Loy Development Foundation

Mae Sot

176,250

Foundation for Disabled Persons

Chiang Mai

200,000

Rejoice Urban Development Fdn.

Chiang Mai

90,000

Tawan Chai Foundation

Chiang Mai

114,000

Baan Huay Khun School

Mae Sot

239,000

Good Shepherd Sisters

Din Daeng Bangkok

600,000

Baan Sabaai

Chiang Mai

100,000

Baan Unrak School Christchurch

Project details

Costs of building materials to build a multi-purpose school village building in Tambon Hadsung during their vacation. Half-yearly payment for food and medicine for this old people's home and orphanage on the Malaysian border Set-up a training and the practice project of pig-rearing to assist the needy. After a donation of 17,400 sets of lenses from Australia, cost to set up a project for the disabled to make frames and distribute free reading glasses to northern Thai rural persons. Half yearly supply of palliative medicines and formula milk powder for this mobile clinic that treats HIV/Outreach patients. Foundation for physically and mentally disabled individuals to enable elderly, physically disabled to be trained and have a satisfactory life to live in the community. Multi purpose learning centre, animal shelters and agricultural materials. Cost of setting up 52 bunk beds, bedding and mosquito nets to enable this school for hilltribe children to accommodate and educate their students who otherwise would not be able to attend. Annual supply of raw materials to enable abused and homeless women to be trained and produce garments for sale. Assistance towards the youth training scheme. Emergency Shelter for HIV/Aids and homeless - vegetable growing and animal husbandry project.

3,059,650

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Issue 5/2013

property updates

Community malls dominate retail sector C

olliers International Thailand presents its half-yearly review of the Bangkok property market.

ers, especially listed developers, still reached their targeted high take up rates.

Condominiums

Retail

New launches in Q2 2013 were down by 22 percent from the previous quarter but the total of newly launched units in the first half 2013 was approximately 28,600, or around 12 percent higher than the first half of last year.

Community malls still constitute the most fashionable retail category for the retail market in Bangkok. Thatâ&#x20AC;&#x2122;s because all newly completed facilities in Q2 2013 were community malls. Most future supply expected to be completed from H2 2013 to 2015 is located in the City area. Occupancy and rental rates for retail businesses have shown little change since the start of this year, and there is a steady rise in the amount of retail space coming onto the market.

Approximately 14,440 new condominium units were completed and registered at the Department of Land in the first half of 2013; many condominium projects were postponed from 2012 and delayed their completion date due to labour shortage problems. The average take-up rate for condominium projects in Bangkok for Q2 2013 was approximately 72 percent, the highest in the past few quarters. This was due to some condominium projects selling out within a few days after the official launch, in particular projects offered by listed developers. The average selling price for newly launched units in the first half of 2013 increased by around seven percent over the average price of all condominium units that were launched in 2012, due to a range of factors affecting construction costs. Low to middle-income groups are still the main buyers; the affordable prices are not over three million Baht. However, because of the high number of new supply certain projects will do better than others. The well-known and reputable develop-

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Issue 5/2013

Hypermarkets are also another intensely competitive market in Thailand. Three are only three players in this sector namely Big C, Tesco Lotus and Makro and they are planning to expand with stores across the country. Convenience stores became a new, competitive market last year and that continues this year and will do so for the next few years. All competitors in this sector are big name players and they are planning to open many branches in the future. Offices No new office buildings were completed in H1 2013 and so the total office space as of H1 2013 remains at approximately 8,042,000 sqm. The average occupancy rate and rents in all locations are similar to the previous quarters, although some office buildings in the CBD area slightly increased their rental rates in the second quarter.

Many multinational and local companies are continuing to seek office space in Bangkok, especially in the area along existing mass transit lines in the CBD area, so the average occupancy rate rose slightly. The area along Ratchadapisek Road, starting from Rama 9 junction, is becoming a new Bangkok business zone and most new office buildings expected to be completed in 2015 are located in this area. Serviced apartments Development of new serviced apartments in Bangkok has decreased every year since 2009 and will continue to decline. The total supply of serviced apartment units as of the end of the first half of 2013 is approximately 18,220 units and it is expected to be approximately 18,300 units at the end of 2013. Many foreigners and expatriates have decided to stay outside CBD area, but still closed to BTS sky train system to take advantage of cheaper rents. The average occupancy rate and rental rate of all locations in Q2 2013 is slightly dropped from previous quarter, but still similar to last year. There will be very limited future supply of serviced apartments in the next one to three years, due to intense competition in Bangkok. Although the number of expatriates in Bangkok will continue to increase every quarter, they will have a lot of choices for their residences.

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Issue 5/2013

property updates

Retail rents rising in Bangkok P

rime rents in Bangkok rose in leading shopping centres but stayed flat in community malls. Hong Kong is by far the world’s most expensive city for global retailers and is 40 times more expensive than Bangkok, according to the latest research from global property advisor CBRE. “Rental rates in Bangkok increased in the best shopping malls, especially in the downtown area,” reported Jariya Thumtrongkitkul, head of Retail Services at CBRE Thailand. CBRE’s quarterly ranking (Q2 2013) of the top 10 prime global retail markets saw little change relative to previous quarters. However, four of the top 10 markets - New York, London, Zurich and Tokyo - saw quarterly increases in prime retail rents compared to just one market during the previous quarter. Historically low construction levels and fierce retailer competition for the best locations is fuelling this growth, leading to record-breaking rents in many global markets. Hong Kong (THB 124,650 per sqm per month) tops the rankings by a substantial margin, with New York (THB 87,843 per sqm per month) in second position posting prime rents THB 36,800 per sqm below Hong Kong. Similarly, a large spread of more than THB 52,000 per sqm exists between New York and thirdranked Paris (THB 35,137 per sqm per month). Despite its high rents, retailers continue to establish a presence in Hong Kong, seeking to benefit from the market’s growing luxury retail scene.

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Issue 5/2013

According to CBRE research, 51 new retailers opened stores in Hong Kong last year and the city has the highest representation of luxury retailers of all global markets. Joe Lin, Executive Director – Retail at CBRE Hong Kong said, “Healthy tourist arrivals and lack of available space make finding an adequate unit in Hong Kong’s prime retail locations a major challenge for new and existing retailers. Units in prime locations with reasonable shop fronts and size rarely become available,

leaving retailers with few choices. As such, preference for spaces with these characteristics continues to generate strong demand, supporting the market’s high - and rising - prime rent levels.” Bangkok (THB 3,100 per sqm) recorded a 3.7 percent increase in average rental growth on an annual basis. Increased tourist arrivals supported retail sales in Bangkok and resort cities. Due to the strong retail market in Thailand, many global brands are entering the Thai market in the form

Prime Retail Rent Ranking Q2 2013 GLOBAL RETAIL RENTS RANKS

MARKETS

USD/SQ.FT./ ANNUM

THB/SQ.M./ MONTH

Hong Kong

4,328

124,650

New York

3,050

87,843

Paris

1,220

35,137

London

1,156

33,294

Sydney

945

27,217

Zurich

896

25,806

Tokyo

864

24,884

Melbourne

794

22,868

Moscow

739

21,284

Brisbane

599

17,252 Source : CBRE Research

of owned stores, franchises and distribution deals. New York displayed a 2.7 percent quarterly growth rate in prime retail rent levels, signifying a 22 percent annual increase relative to last year. Demand from international retailers remains strong in New York and tourism levels continue to drive strong retail sales activity. London (THB 33,294 per sqm per month) benefited from improving consumer confidence, robust sales and increased foot traffic that collectively fuelled tenant demand. In particular, the supply and demand imbalance on New Bond Street and Old

Bond Street resulted in prime rents for central London increasing by 9.1 percent quarter-over-quarter and 20 percent year-over-year, as measured in local currency. Preference for prime space continues to impact prime rents in Zurich (THB 25,806 per sqm per month) where rents increased 2.2 percent quarter-over-quarter and 5.6 percent year-over-year. The tight supply of prime space, as well as the gradually strengthening confidence of occupiers contributed to a two percent quarter-over-quarter local currency rental increase in Tokyo. Viewed as the gateway to

Asia by many foreign retailers, competition for prime locations across Tokyo remained fierce. Domestic retailers have also expanded, with some Osaka-based retailers expanding their presence in the city for the first time. Junichi Taguchi, Managing Director of CBRE’s Retail Services division in Japan, commented, “Consumer demand and confidence conditions have notably improved thanks to a strengthening economy. Luxury retailers noted a positive push in demand for brand items, which have been recording high sales values in department stores since the beginning of the year.”

Limited price growth continues in luxury residential markets T

he second quarter of 2013 witnessed limited price growth in most monitored luxury residential markets in Asia, according to the latest Jones Lang LaSalle Residential Index. Seven of the nine featured markets saw an increase in capital values during the quarter, although five registered growth of less than one percent. Jakarta and Beijing registered double digit increases of 34.2 percent and 18.7 percent respectively in the 12 months ending 30th June 2013. Only Singapore reported an annual decline (2.1%). Jakarta continued to outperform all monitored markets in Asia, up 9 percent from Q1 2013, while average prices in Beijing also rose solidly (6.7% q-o-q) due to

several high-end projects coming to market during the quarter. Despite restrictive tightening measures affecting sales activity, Hong Kong registered a marginal quarterly increase of 0.3 percent on Q1 2013. Bangkok and Manila also saw slight increases in capital values over the quarter, while prices in Kuala Lumpur remained flat. Of the nine markets, only Singapore recorded a decline in the luxury residential sector, down 0.6 percent quarter on quarter, as government cooling measures continued to affect investor sentiment. Dr Jane Murray, Head of Research, Asia Pacific at Jones Lang LaSalle,

said, “While the region’s luxury residential market has seen both quarterly and yearly growth policy restrictions in Hong Kong, Singapore and China are likely to remain in place for at least another 12 months, affecting investor sentiment in these markets and constraining sales activity in line with the first half of the year. “However, emerging Southeast Asian markets should continue to experience growth, although in markets such as Bangkok and Manila this may be moderate due to lower sales of new projects. We expect Jakarta to continue to outpace the rest of the region for the remainder of the year with strong price growth as a result of resilient domestic demand.”

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Issue 5/2013

property updates

No end in sight to Pattaya condo boom P

attaya continues to enjoy a property boom as local and international buyers flock to the coast to snap up properties for residential and holiday use. The cumulative supply of Pattaya condominiums for 2013 at the end of June was recorded at 40,939 units, increasing year-on-year by 32.9 percent with the Jomtien area gaining in popularity. That’s according to the latest review from Knight Frank. The review states that ‘the condominium market in Pattaya remained relatively strong over the last six months following the solid performance of the previous year. The additional supply was around 10,153 units, making up a total supply of 40,939 units as of 1H 2013. The take-up rate in all locations increased to 51.7 percent from 50.3 percent in the second half of last year. The Pratumnak area recorded the highest average selling price during 1H 2013 at around THB 96,286 per square metre. Among other locations, new lowrise projects in Jomtien commanded the highest prices due to their good facilities and amenities such as a large resort theme’. Most sea view projects being launched during the first half of 2013 were located in the Jomtien and Pratumnak areas. The selling price of new launched sea view condominiums in Jomtien was in the range of THB 91,372 to THB 140,000 per square metre. The average selling price in Pratumnak increased from THB 77,610 per square metre in 2012 to THB 89,010 per square metre in H1 2013. Knight Frank’s review adds that ‘Pattaya has a promising future as a key

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Issue 5/2013

market for Thai condominium development. It is riding on the property boom, adding 1,890 new residential units that are scheduled to launch during the third quarter of 2013. Emerging locations from Jomtien to Na Jomtien are set to be major development sites, driven by a myriad of factors that give the area a number of advantages over other locations in Pattaya; these factors include improving road connections of a second road that runs parallel to Jomtien Beach Road for about 400 metres and many new attractions such as the Jomtien market; two water parks and the Grand Kingdom shopping mall’. It’s a similar story in Hua Hin. Knight Frank says that the resort’s condominium market has shown year-on-year growth backed by several factors, including the entry of Thailand’s major property developers to the market, a remarkable increase in the number of Thai mediumincome earners from Bangkok purchasing residential condominiums

in Hua Hin, and a significant rise in demand for budget condominiums with smaller units priced at less than THB 2 million. The total new launches of Hua Hin condominiums as of 1H 2013 surpassed 4,500 units, making up 22,619 units of the accumulated supply. The demand for condominiums has seen a 52 percent rise in the total units sold, compared to 49 percent from the previous year. The agency says that ‘the Hua Hin residential market is overwhelmingly driven by Thai purchasers who are looking for a second home or a holiday property near Bangkok. this group comprises nearly 75 percent of the total purchasers. The other buyer groups are expatriates and foreign retirees from Europe. Hua Hin’s seaside destination has recently drawn interest from Chinese buyers who are seeking a second residential property in Asia; this is due to a joint venture between Thai investors and Chinese developers in the works for the Hua Hin market this year’.

Strong demand for office space in Bangkok T

hailand’s economic slowdown in the first six months of 2013 has failed to dampen demand for office space in Bangkok, according to Jones Lang LaSalle. Suphin Mechuchep, Managing Director of Jones Lang LaSalle, said, “Experience shows that there is a correlation between the demand for office space and the economic growth. However, it may be too early to say to what extent the economic slowdown experienced in the first half of this year will impact the business sector and, consequently, the Bangkok office market. “Thailand’s weakening economic outlook has affected the sentiment in the business sector as clearly reflected by the Thai stock market’s slump and sluggish consumer confidence. But the actual impact of the first-half-year economic slowdown on the Bangkok office market has appeared limited. We have continued to see companies expanding operations, reflecting business growth and increased employment.” The latest study by Jones Lang LaSalle reveals that, in the first half of this year, the net take-up level of office space across Bangkok was 95,830 sqm, as compared with the total of 185,600 sqm taken up throughout 2012. Yupa Sathienpabayut, Director of Office Leasing at Jones Lang LaSalle, said, “The Bangkok office leasing market has remained very busy this year. Though we have seen fewer enquiries from new business setups many companies, including those that were newly established,

the Bangkok office market by the year end to be on par with 2012, if not higher.”

Suphin Mechuchp, Managing Director

Yupa Sathienpabayut, Director of Office Leasing

are now expanding. Major leasing transactions in the first half of the year were secured by companies in the consumer product and banking sectors. “We have also seen more serviced office operators securing space in welllocated office buildings to serve foreign companies that need to have an office in Thailand as a hub in South East Asia, in preparation for the opening of the ASEAN Economic Community in 2015.” She added, “Despite negative economic news there are many large lease transactions now under negotiations and none of them have been cancelled. As a result we expect leasing transaction volume in

Miss Sathienpabayut also noted that many companies have accelerated lease negotiations to avoid further recent increases whilst other firms have delayed their leasing decisions pending conclusion of negotiations with landlords. “With limited new supply and continued demand, most landlords have become less flexible. Aside from higher asking rents incentives that were widely offered during the market downturn, such as rent-free periods, have shrunk. As a result, some companies are now considering alternative locations where more affordable rents are offered,” she added. According to Jones Lang LaSalle’s study the average rent for office space in Bangkok stood at THB 455 per sqm per month as at 30th June 2013, representing an 11.8 percent increase on 30th June 2012. Prime grade A office space in Bangkok’s Central Business District demands an average rent of THB 727 per sqm per month with owners of some properties in this area asking for higher rents ranging between THB 850 and THB 1,000 per sqm per month. “If the Thai economic growth continues to contract in the second half of the year, demand in the office market will inevitably be affected. Having said that, limited new office supply that is planned for completion in Bangkok over the next 12 months may help soften the impact,” Suphin Mechuchep concluded. The Link

Issue 5/2013

property updates

More hotel rooms needed in Yangon H

report bookings near full capacity for the coming high season,” Andrew Langdon added.

otel development in Yangon is not keeping pace with increased numbers of international visits. That’s the view of Andrew Langdon (picuted right), Executive Vice President, Hotels and Hospitality Group at Jones Lang LaSalle in Thailand. Jones Lang LaSalle has that there are almost 1,000 ‘international standard’ hotel rooms now under construction and scheduled for completion in Yangon by the end of this year with the new supply representing a 65 percent increase on 2012, bringing the total stock of ‘international standard’ hotel rooms to a figure of 2,500. “The Yangon hotel market has continued to experience a severe shortage of international standard supply,” said Andrew Langdon. “Though the growth of new international standard supply in 2013 is substantial it is from a low base and will fail to fulfill the strong growth of demand for quality hotel rooms in the city. International arrivals to Yangon has

On the supply side, statistics from Myanmar’s Ministry of Tourism show there are currently slightly over 9,100 hotel rooms in Yangon but less than 2,000 rooms meet international standards, according to Jones Lang LaSalle’s report. The report also reveals that an additional 4,700 hotel rooms are planned for completion between 2014 and 2017, of which 2,100 rooms are in projects now under construction. witnessed a significant increase over the past few years and are likely to rise further.” International visitor arrivals to Yangon have grown rapidly since 2010 and last year the total reached almost 560,000. “Visitor arrivals are expected to remain strong for the remainder of 2013 as many hoteliers in Yangon

Shangri-La, which operates the Trader’s Hotel, will open a Shangri-La Hotel in 2016, in addition to a ShangriLa Residence which will be opened later this year. Accor will open, in the first quarter of 2014, the 366-room Novotel Yangon Max hotel in two towers while Hilton Hotels has signed a management agreement to manage the 300-room Hilton Yangon (in the mixed use Center Point Tower) which is scheduled to open in mid-2014. Thailand-based online travel news service TTR reports that the Myanmar Hotelier Association is checking the standards of Yangon hotels in advance of the South East Asian Games in December. Events are scheduled to take place in Yangon, Mandalay and the capital Nay Pyi Taw. Apparently the inspections are designed to check that upgrades and improvements have been undertaken as promised. Yangon has 213 hotels with 9,294 rooms. Threestar hotels represent the bulk of capacity in the city.

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Issue 5/2013

European property prices rise again H

performer (up 12.2%) and Greece the weakest (down 11.5%) year-on-year. Mainstream prices in Greece, Spain and Italy are now 31 percent, 29 percent and 15 percent below their respective market peaks, according to official data.

ouse prices around the world rose by 2.4 percent in the second quarter of 2013, the highest rate of annual growth since Q2 2010 according to Knight Frank’s Global House Price Index. Prices rose in 37 of the 55 countries tracked by the index in the second quarter of 2013. This compares to rising prices in 27 countries two years ago which points to an improving global picture. Dubai leads the annual rankings, recording price growth of 21.7 percent in the year to the end of June. The emirate’s housing market has gained momentum since late 2012, while its prime market led the way, mainstream prices are now following suit.

For the first time since 2010, European countries recorded positive annual price growth. However, the average 0.7 percent uplift over the past 12 months masks a sharp divergence in performance between individual countries with Turkey the strongest

The UK, after three years of negative or stuttering price growth in its mainstream market, has found some traction. Prices rose by 2.6 percent in the second quarter. The medium term outlook is muted. Europe has been the main drag on the global housing market’s performance in recent years but growing confidence is being tempered by deterioration in the outlook for a number of the large emerging market economies.

Obituary

Jean Marc Garret I

t is with great sadness that we learned of the death Jean Marc Garret. Jean Marc passed away on 2nd September. He was a long term resident in Thailand and an acknowledged leading light in the hospitality sector.

For the last three years he worked as Director of Hospitality Services at Colliers. Jean Marc was a warm and caring person. He was generous in giving his support and encouragement to his colleagues and always passionate in championing the causes and ideas that were dear to him.

He was a stalwart of the French community in Thailand, serving in many senior roles including heading the Franco-Thai Chamber of Commerce and various tourism-related organisations, He was widely respected and admired for his deep understanding and knowledge. Jean Marc leaves behind many close friends and a loving family. He will be truly missed. – Simon Landy

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Issue 5/2013

briitsh council

Competition promotes English language skills T

hai students keen to improve their command of the English language were bidding to win prizes in the final rounds of the British Council’s first nationwide English competition. The two winners, Thongtat Boonpasat and Sikarin Nipatthiranant, received several prizes as well a trophy presented by HRH Princess Maha Chakri Sirindhorn. The prizes entailed a cash sum and a complimentary English course at the British Council. The competition sought to encourage Thai students from Prathom 1 to Mattayom 6 to challenge themselves through a comprehensive English test and general knowledge quiz about the United Kingdom.

English course the British Council’s team demonstrated fun and engaging ways of teaching and learning English.

The campaign started with school road shows in Bangkok and Chiang Mai with activities led by British Council qualified English teachers and local celebrities such as DJ Phoom Phoomjai Tangsanga and former Miss Thailand Universe Pop Areeya Chumsai. As well as promoting the competition and inviting students to register for an

Director of British Council Thailand Chris Gibson said, “More than anything else, what we are trying to stress is that students should be aware of how important English language is to their lives. Whether successful or not in career or studies, having good English skills will help them immensely to achieve what they aim for in the fu-

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Issue 5/2013

British Council staff in Thailand are looking to help improve English language skills

ture. We want to inspire Thai students with a desire to learn and become successful in the future. For those who are already good in English, this is their time to be a role model for their peers. The competition attracted almost 200 applications from across the country. “Through essay selection, phone interview and on stage competition, the students who won the first prize are the pride of Thailand,” added Chris Gibson.

Britain in South East Asia (BiSEA) Cambodia British Chamber of Commerce in Cambodia c/o Darren Conquest Hong Yang Corporation No. 11 Street 178, Sangkat Psar Thmey 3, Khan Daun Penh, Phnom Penh, Cambodia Tel: 855-12-219-802 Fax: 855-23-997-493 Email: chairman@britchamcambodia.org Website: www.britchamcambodia.org Chairman: Darren Conquest Executive Director: Abigail Gilbert

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: bisnis@britcham.or.id Website: www.britcham.or.id Chairman: Haslam Preeston 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 Fax: 603-2163-1781 Email: britcham@bmcc.org.my Website: www.bmcc.org.my Chairman: Dato Larry Gan Executive Director: Molly Jagpal

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: Michael Whiting Executive Director: David Mascenon

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

Vietnam British Business Group Vietnam

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

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: execdirector@bbgv.org Website: www.bbgv.org Hanoi 67 Le Van Huu, Hai Ba Trung Hanoi, Vietnam Tel: 84 4 6674 0945 Chairman: Patrick Regis

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Issue 5/2013

CEOP needs support to fight child abuse By Christian Lockyer

t’s a sad fact but, no matter where in the world you are. children are being abused. Every year thousands of vulnerable children are subjected to some of the most horrific sexual abuse and exploitation at the hands of child sex offenders. While organisations around the world work in partnership to tackle this horrendous crime, we all have a role to play to protect our children. This is why one of the world’s leading child protection agencies, the UK’s Child Sexual Exploitation and Online Protection (CEOP) Centre, is working to bring countries together and ensure every child is protected no matter where they are. As a business you also have a key role to play. You are able to really lead the way in protecting children and demonstrate to others around the globe that you’re not just about making money, but that you have a commitment to really making the world a better and safer place. As part of its commitment to stamp out child sex abuse, CEOP has launched the International Corporate Charter for Child Protection - and it’s asking you to sign on the dotted line. Unlike most charters this one doesn’t want your cash; it just wants a promise that you will work to protect children from sexual abusers. The charter is a great opportunity for companies to demonstrate their commitment to tackling child abuse; whether that’s through raising awareness among your employees, and working closely with your local communities to make them aware of child protection or by challenging those who seek to exploit children, and supporting countries to 42

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A recent CEOP workshop in Vietnam

improve their own legal protections for our younger generations. The charter is also a great opportunity for you to demonstrate to your customers and competitors that you’re not just about profits and money, but that you have a real desire to do good in communities right around the globe. A lot of this work is already making great progress with CEOP’s introduction of the International Child Protection Network (ICPN). This network has connected dozens of countries around the world who all share their knowledge and expertise to tackle child sex abuse. And now CEOP is going even further by bringing its International Corporate Charter for Child Protection to more corners of the globe. It has already successfully embedded the charter in big name brands linked to chambers of commerce in Thailand and Cambodia.

During March 2013 Britain in South East Asia (BiSEA) agreed to work with CEOP in order to promote the work of CEOP’s International Child Protection Network, so now the focus is on your company as a member of one of the nine Chambers of Commerce and British Business Groups that make up BiSEA. Tim Gerrish OBE, who manages CEOP’s international protection team and was recently honoured by the UK’s Queen for his work in international child protection, said, “Signing up to the charter is much more than just employees agreeing to place child protection at the forefront of their work; it also demonstrates a corporate commitment to take action. It demonstrates that a business has taken strong leadership in this area and has concrete plans and actions to protect children.

ing with the hugely successful CEOP Centre. CEOP is now recognised around the globe as one of the world’s leading child protection agencies. Last year it safeguarded a record number of children (790) and is now working with more countries than ever before. And even bigger things are planned for CEOP. From October 2013 it becomes part of the UK’s National Crime Agency (NCA) where it will not only share its expertise with one of the toughest law enforcement agencies in the UK but will also have access to hundreds more professionals all with an aim of protecting children. So, your commitment to the charter will not only see you supporting CEOP’s work but will put you right at the heart of the UK government’s latest crime fighting agency – dealing with some of the highest profile cases. This is your chance to make a real difference.

Mai and Tam characters carry important messages for CEOP

“I recognise that the business world is vast, and while some companies are large multinationals others will be much smaller with only a handful of employees. That’s why the charter is designed to suit your circumstances; it allows you to set aims and principles that you know you can achieve. “I expect smaller businesses to reach a point where child abuse and exploitation is clearly understood and challenged by those working for the company while others should use the charter to really influence high level child protection outcomes. The charter is not just about protecting children from abuse, it also enables you to provide them with concrete opportunities through their education and employment, as well as improving their quality of life for them and their families.”

Once you sign up to the charter you will receive the back-up and support to really make a stance against child abuse. CEOP will also commit to helping you develop a policy that explains exactly what abuse and exploitation is consider ways to help train staff so they have the tools and resources to make a difference; assist in identifying a lead person whose role it is to place protecting children at the heart of your business; ensure staff are properly checked and supervised where appropriate and ensure your staff treat children with respect. Your commitment to the charter is just the first step in making the world a safer place for children. It opens doors which secures your place alongside other big brand names, all work-

Tim Gerrish adds, “In some parts of the world children are deprived of protection because of a lack of systems to identify, report and deal with abuse, while others live in such poverty and hardship that their basic rights to survival and development are stripped from them. “This is totally unacceptable and that’s why as the business world you can change that and make a real difference to some of the most vulnerable children who deserve a better start to life. If it was your child, I know that you would do all you could to ensure they were protected - so why not do that for others too.” The British Chamber of Commerce Thailand has been a signatory to the CEOP Charter since 2010. Christian Lockyer is Senior Media Officer at CEOP. To find out more about the International Corporate Charter for Child Protection and to join up, visit www.ceop.police.uk/ international or email: ICPN@ ceop.gsi.gov.uk for any specific enquiries.

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Issue 5/2013

SET programme lays solid foundations By Peter Robinson

hen summing up her year of teaching English in Thai schools, a recent volunteer from the UK said: “It’s been a real challenge, but also very rewarding. When a child who had never spoken in class before plucked up the courage to ask a question in English, or responded to one, it seemed like such a breakthrough. There was a real sense of achievement, both for the student and teacher. It made the job feel totally worthwhile”. The volunteer was speaking in August at the end of a year spent working full-time as a teacher. Since 2003, two ‘gap year’ volunteers from the UK have been sponsored annually by The SET Foundation, with a grant from the BCCT. SET is well known for its scholarship programme but the foundation also supports several smaller educational projects. Its Volunteer Teacher Programme aims to give Thai youngsters from under-privileged backgrounds the opportunity to learn English from native speakers. The volunteers work in municipal inner-city schools, which do not have the budget to employ native speakers. In SET’s programme, in its home city of Nakhon Sawan, the volunteers also teach novice monks for one day each week at a monastic school as well as organising English camps, language ‘clinics’, an English club and extra evening and weekend classes for particularly enthusiastic youngsters. The volunteers are kept very busy. The volunteers are assessed for SET by the UK’s Project Trust organisation. Project Trust sends hundreds of 44

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This group clearly enjoys being back in the classroom.

‘gap year’ volunteers overseas every year, including 18 to Thailand. They are not professional teachers, though they have some training before they leave the UK. They are instead assessed for their out-going personalities, confidence, enthusiasm, and their ability to adjust to a very different culture and to handle unexpected social situations. It’s not the volunteers’ job to teach English grammar; students can learn that from their own Thai teachers. In Thailand, sometimes too much importance is placed on perfect grammar and not enough on simple communication skills. SET’s volunteers aim to give their students the confidence and encouragement to actually speak the language; to communicate. Most Thai students, worried about making mistakes and losing ‘face, initially lack that confidence but the volunteers’ fun teaching methods quickly seem to overcome the prob-

lem. In a very short time, the volunteers can achieve quite remarkable results. One of this year’s returning volunteers said that ‘the majority of our students at the municipal schools were from very poor families. Usually it’s only the best schools that have native speakers to teach English, so it’s great that we were able to give disadvantaged kids the same opportunity as those from more privileged backgrounds. Most were very keen to learn and although teaching English can be difficult and frustrating, we believe we made a positive difference to many youngsters. Hopefully they will build on that and become keen to learn more. We’ve really enjoyed our year in Thailand and we’re very grateful to SET and the British Chamber of Commerce for making it possible’.

Volunteering trends By Hattaya Wongsaengpaiboon

ne of my favorite conversations about volunteering happened at a coffee shop in a small town on the Thai/Myanmar border. We were chatting about volunteering trends. Many times we see people volunteer their time for a week or over a weekend teaching English at schools or providing child care in rural areas. Volunteers think ‘it’s such a great feeling to give back to society and children are really happy and enjoy it’. From the perspective of a local development worker, my conversation partner saw this type of volunteering activity repeated quite a few times a semester over many years. But what is the real impact for the children? Does having four volunteers from different backgrounds teaching English in one semester really help them in the long term? We had our doubts. On another occasion Kenn Allen, the author of The Big Tent: Corporate Volunteering in the Global Age, mentioned that ‘our walls have more paint than plaster on them because of the number of times companies have needed a community project at the last minute’. While we can joke and laugh about it, this reflects a real issue that needs addressing.

Volunteering should no longer be only about ‘warm-hearted’ activities. Impact and sustainability are the terms we should be applying to such activities, making sure they address the needs of communities and empower individuals to become drivers of change. It is clear that businesses of all sizes are beginning to take their engagement with the community from one-way opportunities to strategic programmes that deliver two-way benefits. Employee volunteer programmes are one of the best ways to demonstrate that commitment. Many corporations are designing

Voluntary work is part of many companies’ CSR programmes.

their corporate social responsibility programmes to align with and help meet core business goals. The advantages are calculated at all levels of the operation, such as staff recruitment and retention, internal and external reputation, and enhancing the quality of life in the communities where they do business and where their employees live. Volunteering can play a vital role in helping these organisations achieve their objectives.

Qingdao and Chengdu. Programmes included Nike staff volunteering through sport with autistic children in Shanghai and with adults disabled by the Sichuan earthquake in Chengdu. One Beijing group was coordinating an online store to sell art from disabled and mentally challenged youth. An estimated 2,000 people benefitted from such volunteering activities in the first year of Nike’s pilot employee volunteering programme.

There are numerous examples of companies that have embraced employee volunteering opportunities as a way of motivating and developing their staff. This willingness to learn and develop alongside not-for-profit partners and directly contribute to the communities is a new and exciting approach to meeting organisational development needs.

My final thought to who still in doubt “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” Margaret Mead (1902-1978); Cultural Anthropologist.

VSO, for example, worked with Nike Sports China for several months, delivering volunteer programme development and management training and mentoring its community engagement volunteer team leaders. They learnt to understand better community needs and how to develop pilot volunteer programmes that would improve the lives of disadvantaged people in Shanghai, Beijing, Guangzhou,

Hattaya Wongsaengpaiboon is the Programme Manager for VSO’s Volunteering for Development programme in Thailand. Email: Hattaya.wongsaengpaiboon@ vsoint.org

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Issue 5/2013

Member News

ONYX scores with Buriram hotel project O

NYX Hospitality Group has been appointed to operate a 60-room football themed hotel in Thailand’s Buriram province. The Amari Buriram United is owned by Buriram United Sport Hotel Co., Ltd and will be operated by ONYX Hospitality Group under the Amari brand.

Buriram is well known in Thailand for its rich history and its popular football team. Buriram United was the first team in a decade from Thailand to reach the knockout stage of the Asian Champions League. Club President Newin Chidchob said, “Amari Buriram United is one element of a project that I am investing in to ensure Buriram becomes one of the country’s top five tourism and sports destinations able to attract both local and foreign tourists. In 2014 we will be adding an international motor circuit to the stadium complex and this, combined with the existing football stadium, will push Buriram to the forefront of sports and leisure tourism in Thailand.” ONYX President and Chief Executive Officer, Peter Henley, said, “This is a very exciting venture for ONYX. We share Khun Newin’s vision for Buriram and we are thrilled to be opening our first Amari in this region of Thailand. Sports tourism is a huge potential and emerging market for both domestic and international visitors to Thailand.” The hotel structure has a stadium design with most rooms looking into a central area which includes a mini football field and swimming pool. The hotel is designed by I’ll Design Studio, the same architects as the neighbour46

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ing i-Mobile Thunder Castle stadium. Inside the hotel, guests will enjoy ‘players changing room’ style bathrooms and a themed restaurant with bench style seating, replicating team style dining.

Amari Buriram will feature 44 superior rooms, 14 deluxe rooms and two suites ranging from 34 to 114 square metres in size. The resort will also offer a bar and a gymnasium. The property is scheduled to open later this year.

Amateur artists efforts raise funds for local communities

NYX Hospitality Group’s annual ‘Arts for The Planet’ project hosted painting competitions in Nakhon Si Thammarat, Chonburi and Bangkok with the winners receiving a scholarship from ONYX Hospitality Group Foundation and gifts from the event co-sponsor DG Arts & Crafts.

The project was launched in 2010 to coincide with the 40th anniversary of Earth Day.

ONYX Hospitality Group also hosted an Arts for The Planet exhibition at Bangkok Art and Culture Centre for all 60 finalists to display their work. The exhibition is now on tour visiting the Amari Orchid Pattaya and Central Festival Pattaya Beach hotels and the Amari Hua Hin. The exhibitions are open for public and all paintings are for sale to help raise funds for the company’s community programmes ‘Baht for a Better Life’ and ‘Plan BEE’.

Laguna Park meets demand for homes in Phuket

major residential project in Phuket has been officially launched by Laguna Property, part of the Laguna Resorts and Hotels and the Banyan Tree Group. The Laguna Park project will be the island’s largest residential community, comprising up to 2,000 homes when fully completed and is being developed adjacent to Laguna Phuket. “As more visitors experience what Phuket has to offer an increasing number of people decide to lay down roots here with the purchase of a primary or secondary home. Laguna Property has experienced first-hand the increasing

demand for quality homes situated in a safe environment and built by an established, trustworthy developer,” said Stuart Reading, Deputy MD of Laguna Resorts and Hotels. The development includes town houses and

villas. Facilities will include a beach club with a club house to be built as part of phase two of the development. The first phase will comprise approximately 500 units and construction is expected to begin early next year.

NIST Summer School and Sports Camp attracted record numbers of students from several countries including Turkey, Korea, Australia and Taiwan as well as Thailand. The programme runs every summer and is open to students from other schools. More details from Philip Branston at pbranston@ nist.ac.th. The American School of Bangkok (ASB) is proud to announce another golf victory for one of the school’s up and coming golf superstars. Miss Pajaree Anannarukarn (Meaw), a Grade 9 student, won the Thailand LPGA Master 2013 (Amateur Division) at the Panya Indra golf club in August. Meaw, a winner of several tournaments, was also part of the ASB golf team which won the World Schools Golf Challenge (WWSGC) in April.

Conrad Bangkok has been named as the best convention hotel in both Thailand and the Asia Pacific region at the International Hotel Awards 2013. Pictured with one of the awards is Harald Feurstein, the hotel’s General Manager.

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Member News

Solar panels pay dividends for Shangri-La Bangkok S olar panels installed at the luxury five-star Shangri-La Hotel in Bangkok are returning major dividends for this prestige riverside property. The hotel invested THB 13 million in the solar panel system – the largest ever installed by a hotel in Thailand – as part of the company’s commitment to reduce its carbon footprint.

Heating systems are one of the highest and most expensive energy consuming processes, especially in developing countries. Reducing dependence on traditional energy sources and maximising use of natural energy such as the sun proves to be the more sustainable choice. The solar water heating system is a process of harnessing the power from the sun as a renewable energy source to warm water for both domestic and industrial usage. It encourages high productivity, especially in tropical climates. “The solar water heating system enables the hotel to heat 25 million litres of water a year which is sufficient for the 802 guestrooms of the Shangri-La Wing and the Krungthep Wing,” said Kieran Twomey, VP and General Manager of the Shangri-La Hotel. “The installation enables us to reducing expenditure on liquefied petroleum gas by up to 30 per cent which equals savings of THB 2.7 million each year.” A company statement announcing the successful installation of the sys-

tem, covering some 938 sqm of roof space, added that, ‘by contributing to a clean and green environment, the solar water heating system yields many advantages. In terms of economic and financial achievement, the solar water heating system offers the largest potential savings and at the same time, allows the hotel to conserve non-renewable fuel for

Adam makes Bangkok move Adam Zilber has joined the Grand Hyatt Erawan Bangkok team as Hotel Manager. Adam began his career with Hyatt in 1999 at the Hyatt Regency Dorado Beach in Puerto Rico as a Corporate Management Trainee and later held leadership positions at several hotels in North America. Most recently Adam Zilber was Executive Assistant Manager at the Park Hyatt Saigon.

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Issue 5/2013

other applications and reduce dependence on foreign oil. The environment also benefits, as using clean energy to heat water instead of using a combustible source, fewer pollutants are being introduced into the environment. The emission of carbon dioxide, sulphates and nitrates has a direct impact on our health of people. These emissions are the main factors that lead to the greenhouse effect’. “With the implementation of the inhouse solar water heating system, the hotel has put a stop to 435 metric tonnes of CO2 emissions annually. It may look like a tiny step but, hopefully, this tiny step makes a difference in the world,” added Kieran Twomey.

Leadership award for Narawadee

founding of the Terng-Chuer Bualert Foundation provides clothing and school supplies to children in Thailand’s north east region.

Khun Narawadee, has overseen lebua’s growth from a concept for a single restaurant and bar to a successful international hospitality brand. She focuses keenply upon philanthropy and CSR and her

Forbes Asia recognised her charitable efforts by naming her one of Asia’s ‘Heroes of Philanthropy’. Khun Narawadee is a strong advocate for tourism development as a member of the World Travel and Tourism Council (WTTC).

hun Narawadee Bualert, President of lebua Hotels & Resorts, has received the prestigious ‘Asian Young Woman Leadership Award’ to mark her work in the country’s hospitality sector.

Charter International School has celebrated its 10th anniversary with a variety of activities connected with the number 10. Two giant boards in the shape of the number 10 were covered with 10 baht coins and this collection was then donated to the school’s nominated charity Camillian Homes. – www.charter.ac.th

Rembrandt Hotel Bangkok proudly welcomed Pol. Col. Archayon Kraithong, Deputy Commander Tourist Police Division and Khun Karn Boonyalit from DSI to be the guest speakers on the topic of Tourist Safety’. The goal for attendees was to get a better understanding about safety issues in Thailand and to help reduce the number of crimes against foreign tourists.

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Issue 5/2013

Member News

Expert gives help on curriculum mapping P

rem Tinsulanonda International School (PTIS) has hosted an EARCOS weekend workshop on ‘Curriculum Mapping: Making Your Maps Come Alive’, facilitated by Dr. Marie Alcock – president of Learning Systems Associates. Teachers from PTIS, Ruamrudee International School and Keerapat International School participated in the event. Curriculum mapping is a procedure for reviewing the operational curriculum as it is entered into an electronic database at an educational setting. The workshop supported PTIS’s initiative to map curricula to enhance student achievements. This work will continue as teachers continue to work together to upgrade curricula across the grade levels. This is in support of a FuturePrem goal to in-

tegrate a whole school curriculum standards framework. Dr. Alcock is based in the United States and works as a national and interna-

tional education consultant. She is currently on the faculty of Walden University’s School of Education in Minnesota.

Dirk Fischbach, Resident Manager at the Dusit Thani Bangkok (right) welcomes former Malaysia Prime Minister Mahathir bin Mohamad. The former PM was guest speaker at a conference ‘Assessing ASEAN’s Readiness by Country: Opportunities, Concerns and Preparedness towards the AEC 2015’. The event was opened Dr. Surin Pitsuwan, former ASEAN Secretary-General.

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Holiday Inn Silom takes no risks with ISO standards H oliday Inn Bangkok Silom is the first hotel in Thailand to implement systems to achieve certification on five world class standards from Bureau Veritas Certification. ISO 22000:2005 sets out the requirements for a food safety management system. OHSAs 18001 helps the hotel to control occupational health and safety risks.

ISO 14001 embraces practical tools for companies and organisations looking to identify and control environmental impact and improve their environmental performance. The benefits of using ISO 14001:2004 include reduced cost of waste management, savings in consumption of energy and materials and lower distribution costs. HACCP Codex Alimentarius is a management system in which

food safety is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling to manufacturing, distribution and con-

sumption of the finished product. The fifth and final standard, GMP, offers guidelines on the ability to produce a quality product. Holiday Inn Bangkok Silom has 700 guest rooms in two towers.

Tash takes GM role at Crowne Plaza Bangkok M iss Tash Tobias (pictured right) has been appointed as General Manager of the 243-room Crowne Plaza Bangkok Lumpini Park. Tash is also overseeing operations at the Holiday Inn Silom, Holiday Inn Pattaya and the upcoming Hotel Indigo in Wireless Road, Bangkok as part of her new role as Area Manager.

She was previously General Manager for InterContinental Singapore, a property that received numerous awards including

Asiaâ&#x20AC;&#x2122;s Leading Conference Hotel in 2012 (World Travel Awards).

Crowne Plaza Bangkok has also appointed Michiel de Kleer as Executive Assistant Manager. He is responsible for the Food and Beverage and Room Divisions Operations. Michiel has spent most of his career in Vietnam and Thailand. Prior to joining the IHG Group he was Director of Food and Beverage at the Sheraton Saigon Hotel and Towers.

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Issue 5/2013

Member News

New appointments at Standard Chartered S

tandard Chartered Bank (Thai) has appointed Thaksina Kasemsant Na Ayudhaya as Head of Compliance. Mrs. Kasemsant has been with the bank for 15 years and has held a number of senior roles within the Wholesale Banking, Operational Risk Management and Global Internal Audit operations. The bank has also confirmed the appointment of Sudarat Kongtreekaew as Head of Audit. Mrs Kongtreekaew joins the bank from PWC where she was the subject matter expert on Business Process Improvement, Business Continuity Management, Risk Management, IT Strategy and Core Banking assessment and implementation. She is also a former Chief Risk Officer and Chief Information Officer for Siam City Bank.

Grand Hyatt Erawan Bangkok has been engaged in environmental stewardship and community programmes for more than 18 years. The hotel is committed to various social responsible activities and projects to improve the quality of life of those it touches every day. One of the activities undertaken by the hotel is the donation of aluminium caps to The Prostheses Foundation of H.R.H. The Princess Mother to produce artificial limbs for physicallychallenged people around the country. The hotel has undertaken this activity since 2007 and donates approximately 150kg per year.

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Thaksina Kasemsant Na Ayudhaya

Sudarat Kongtreekaew

Thirayuth Chirathivat (third from right), Chief Executive Officer of Centara Hotels & Resorts, receives awards from Vijay Verghese (third from left), Editor of Smart Travel Asia online magazine, in the publicationâ&#x20AC;&#x2122;s Best of Travel Poll 2013. The ceremony was held at the Red Sky Restaurant, Centara Grand and Bangkok Convention Centre at CentralWorld. Also pictured are Paul Snow, Operations Manager; Chris Bailey, Senior Vice President for Sales and Marketing; Robert Maurer-Loeffler, General Manager and John Kendes, Resident Manager.

Airline banking on new cards deal T

hai Airways has announced a partnership with Standard Chartered Bank for a new campaign named ‘Fly faster with a Standard Chartered Card’. Standard Chartered credit card holders that are also members of Thai Airways’ Royal Orchid Plus frequent flyer programme can earn up to 45,000 miles and redeem free round-trip tickets on select destinations. The free mileage is redeemable from any carrier within the Star Alliance. Chokchai Panyayong, senior executive vice president in the Thai Airways commercial department, said that the airline was pleased to continue partnering with Standard Chartered Bank (Thai) for customer benefits through this new cam-

paign. He added that there are some 2.4 million Royal Orchid members worldwide now taking advantage of

a wide range of partner that include hotels, credit card firms and car rental agencies.

The St. Andrews Sathorn choir has made its first public performance this year. The choir entertained visitors to the ‘Living in Bangkok Fair’ at Bumrungrad Hospital with an impressive and highly entertaining portfolio of popular songs. St. Andrews International School was a co-sponsor of the event.

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Issue 5/2013

Dataconsult

Chamber Events

By the Numbers

Chris Bruton Director, Dataconsult Ltd.

e can expect continuing volatility in business, foreign trade and currency markets, as good and bad news keep traders and speculators on their toes. Meanwhile viewpoints regarding the outlook for Thailand in the short and medium term range all the way from good, indifferent to downright bad. Government and private sector analysts are generally agreed that their previous, optimistic forecasts for 2013 overstated the opportunities and underestimated the challenges. A correction was inevitable, and this is now taking place. For GDP growth the disaster of 2011, with effectively zero growth, enabled 2012 to clock up 6.5% growth year-on-year. The NESDB forecast for 2013 of 3.8 to 4.3% may be on the side of optimism. The first two quarters of 2013 registered -1.7% and -0.3% respectively. Thus a much stronger growth pattern in the second half of 2013 will be needed to achieve even the lower end of the NESDB forecast. On the domestic front, electricity consumption, normally a good indicator of GDP growth, has remained on track, but over spending on populist policies, such as the “first automobile” project, is one of the factors weighing heavily on household spending, as well as increasing household debt. The massive Baht 2 trillion infrastructure program appears to be designed not only to improve Thailand’s competitiveness, but also to re-boot Thailand’s economic growth. It may also put a further dent in transparency and governance. However the big question for each of these beneficiaries is the speed and extent of imple54

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Economic Performance in 2011/2012 and Projection for 2013 Actual Data 2011

2012

Projection 2013 (August 2013)

GDP (at current prices (Bht bn)

10,540

11,375

12,126

GDP per capita (Bht per year)

155,926

167,508

177,664

GDP (at current prices (USD bn)

345.6

366

400

GDP per capita (USD per year)

5,113

5,390

5,864

GDP Growth (at constant prices, %)

0.1

6.5

3.8-4.3

Investment (at constant prices, %)

3.3

13.2

6.0

Private (at constant prices, %)

7.2

14.4

4.0

Public (at constant prices, %)

-8.7

8.9

13.8

1.3

6.8

2.6

1.3

6.7

2.5

Consumption (at constant prices, %) Private (at constant prices, %)

1.1

7.5

3.6

Export volume of goods & services (%)

Public (at constant prices, %)

9.5

3.1

7.4

Export value of goods (USD bn)

219.1

226.2

237.5

Growth rate (%)

14.3

3.2

5.0

Growth rate (Volume, %)

8.3

2.6

5.0

Import volume of goods & services (%)

13.7

6.2

7.2

Import value of goods (USD bn)

202.1

217.8

232.0

Growth rate (%)

24.9

7.8

6.5

Growth rate (Volume , %)

13.4

6.1

7.8

Trade balance (USD bn)

17.0

6.0

5.5

Current account balance (USD bn)

5.9

0.2

1.2

Current account to GDP (%)

1.7

0.1

0.3

CPI

3.8

3.0

2.3-2.8

GDP Deflator

4.2

1.3

2.3-2.8

Inflation (%)

Source: Office of the National Economic and Social Development Board

mentation. If remaining true to form, implementation could be a lot slower than planned, and this could impact negatively on economic growth. The other big question mark relates to export performance, a major factor for Thailand’s GDP growth. This performance is forecast to remain positive but moderate, at best around 5%, and this in turn will affect imports, also continuing to grow, but at best by 6.5%.

Thailand’s trade balance and balance of payments are forecast to remain positive, but only moderately so. Inflation will remain in check, with the Bank of Thailand maintaining its characteristic firm hand to keep inflation below 3%. While crossing one’s fingers regarding political stability, and the ability of the government’s power base to keep the steering wheel in hand, Thailand should weather the storms of 2013, but not without some heavy waves ahead.

Chamber Events

T3 – Third Thursday Networking Evening

BCCT/AMCHAM/AustCham/SATCC Eastern Seaboard Networking Evening

15 August 2013

16 August 2013

On Thursday 15th August Amari Watergate and ManpowerGroup kindly sponsored the T3 networking evening at Henry J. Bean.

AMCHAM hosted the Joint Eastern Seaboard Networking Evening on Friday 16th August at Amari Orchid Pattaya.

From left to right: - Pierre-Andre Pelletier, Amari Watergate - Greg Watkins, BCCT Executive Director - Simon Matthews, BCCT Vice Chairman/ ManpowerGroup

From left to right: - Brendan Daly, Amari Orchid Pattaya - Simon Matthews, BCCT Vice Chairman/ ManpowerGroup - Karl-Heinz Heckhausen, GTCC President - Judy Benn, AMCHAM Executive Director

Corporate Services in an Education Institution

EABC/Chiang Mai Business Group (CMBG) Seminar & Networking

30 August 2013

BCCT Deputy Director Jyoti Sachavirawong delivered a seminar on ‘Corporate Services in and Education Institution’ to staff, researchers and lecturers at the Faculty of Economics, Chiang Mai University. The seminar focused on marketing communications, identifying and working with partners.

On Friday 30th August the European ASEAN Business Centre (EABC) & the Chiang Mai Business Group (CMBC) organised a Seminar and Networking Evening in Chiang Mai.

Seen in picture is Dr. Rossarin Osathanunkul (right) presenting a token of appreciation on behalf of Chiang Mai University

From left to right: - John Svengren, EABC Executive Director - Ben Svasti, British Consulate Chiang Mai - Richard Prouse, CMBG/PFM

- Matt Bradley, AMCHAM President - David Nadone, AMCHAM Vice President/ Hemaraj Land and Development Public Co., Ltd. - David Bell, AustCham Director/Crestcom - Joerg Buck, GTCC Executive Director

International - Dr. Kanlaya Kaewma, The Chiang Mai Chamber of Commerce - Rob Hurenkamp, Mazars

Thank you to our sponsors and partners. The Link

Issue 5/2013

Chamber Events

BCCT Pub Night

BCCT Boardroom Briefing

3 September 2013

12 September 2013

Hemingway’s Bangkok kindly hosted the BCCT Pub Night on Tuesday 3rd September.

On Thursday 12th September BCCT hosted the boardroom briefing on The UK Statutory Residence Test - A New Era for British Expatriates.

From left to right: - Greg Watkins, BCCT Executive Director - Damian Mackay, Hemingway’s Bangkok - Boyd Chongphaisal, BCCT Vice Chairman/GlaxoSmithKline (Thailand) Limited

From left to right: - Chris Thatcher, BCCT Vice Chairman - Martin Wright, The Fry Group - Martin Rimmer, The Fry Group

Joint Eastern Seaboard Networking Evening

BCCT Evening Presentation 16 September 2013

13 September 2013 AustCham hosted the Joint Eastern Seaboard Networking Evening with BCCT, AMCHAM, SATCC and NZTCC on Friday 13th September at Cape Dara Resort Pattaya.

Peter Grant (pictured) of Grant Property Management was a speaker at the BCCT Evening Presentation jointly organized with Infinity Marketing Solutions on UK Property Investment on Monday 16th September.

- Members and guests enjoyed the Networking Evening in Pattaya.

Thank you to our sponsors and partners. 56

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Issue 5/2013

Chamber Events

BCCT One-Day Workshop

BCCT Members Orientation

19 September 2013

BCCT’s Management Development Group (MDG) organised an English language one-day workshop on ‘Smart Presentation Skills’ on Thursday 19th September.

Members joined BCCT Chairman Simon Landy, Vice Chairs Simon Matthews and Chris Thatcher and Executive Director Greg Watkins for a presentation on BCCT’s role, the key benefits of membership and the wide range of events organised.

- The facilitator (standing) was Khun Pachara (Billy) Yongjiranon from Smart World Asia Co., Ltd.

- A presentation on the chamber’s role to benefit members.

T3 - Third Thursday Networking Evening

BCCT Membership Feedback Meeting

19 September 2013

24 September 2013

On Thursday 19th September Hilton Sukhumvit kindly sponsored the T3 networking evening at Study Lounge.

On Tuesday 24th September members joined BCCT board directors for a meeting to discuss key issues and to feedback ideas to improve BCCT’s services to Members.

- Hilton Sukhumvit’s Director of Sales Khun Voravit Panichakrai (left) with BCCT Vice Chairman Chris Thatcher.

- Discussion on ideas to improve the chamber’s services

Thank you to our sponsors and partners. The Link

Issue 5/2013

Comings and Goings The British Chamber of Commerce Thailand welcomes the following new members: cal and hands-on training at our facility in Laem Chabang. Chateau de Bangkok 29, Soi Ruamrudee 1 Ploenchit Road, Lumpini Patumwan, Bangkok 10330 T: +66 (0) 2651-4400 F: +66 (0) 2651-4500 Website: www.chateaubkk.com

Representative: Mr. Andres Rubio, General Manager Business Activity: Whether you are planning a short visit or an extended stay, Chateau De Bangkok offers a wide selection of spacious and lavishly appointedhotel rooms and serviced apartments in central Bangkok.Carefullydesigned and tastefully decorated to make you feel completely at home, all our hotel rooms and serviced apartments include a lounge area, fully-fitted kitchen, and en suite bathroom,complete with bubbling Jacuzzi.For the ultimate in rest and relaxation, our beds are truly an experience to savor, providingheavenly comfort when you lie down and sink into the mattress for a night of the deepest sleep and the sweetest dreams. A large walk-in closet provides ample storage space for your clothes and luggage,while each apartment also includes a safety deposit box to store all your valuables safely and securely. All our hotel rooms and serviced apartments boast a flat screen TV and ahigh-speedWi-Fi connection that allows you work or browse at your leisure. No matter whichtype of hotel room or serviced apartment you choose to meet your central Bangkok accommodation needs, your satisfaction is always assured because at Chateau De Bangkok, you are more than a guest.

Bangkok Marriott Hotel Sukhumvit Marriott Executive Apartments Bangkok, Sukhumvit Thonglor 2 Sukhumvit Soi 57, Sukhumvit Road Klongtan-Nua, Wattana, Bangkok 10400 T: +66 (0) 2797-0000 F: +66 (0) 2797-0001

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Issue 5/2013

Representative: Mr. Gerrit Graef, General Manager Business Activity: The iconic Bangkok Marriott Hotel Sukhumvit and the Marriott Executive Apartments Sukhumvit Thonglor rises over what has become one of Bangkok’s most dynamic and cosmopolitan neighborhoods. Featuring 296 hotel rooms and 74 fully equipped serviced apartments, the hotel is an ideal choice for business and leisure travelers alike. The hotel also offers an impressive range of Food and Beverage options including the signature multi-level Octave Roof top Lounge and Bar. Meeting venues comprise of a 500 sq.mt Ballroom in addition to several other meeting spaces. Located 27 kms from the Suvarnabhumi International airport the hotel is easily accessible from the expressway, major roads and highways. The BTS sky train station is merely a two minutes’ walk from the hotel.

Belzona Asia Pacific Free Zone 2, Leam Chabang Industrial Estate 213/1 Moo 3, Tungsukhla Sriracha, Chonburi 20230 T: +66 (0) 38-491-031 F: +66 (0) 38-491-102

Representative: Mr. Ronald Campbell, Managing Director Business Activity: Established in 1952, Belzona is a global leader in the innovation of repair compounds and industrial coatings. A subsidiary of Belzona Polymerics Ltd. located in Harrogate, UK, Belzona Asia Pacific has served as the group’s Global Centre of Excellence providing Belzona product-specific training since 2005. Throughout the year, Belzona Asia Pacific welcomes engineers from our more than 160 distributers in 120 countries where they receive both theoreti-

Doubletree By Hilton Sukhumvit Bangkok 18/1 Soi Sukhumvit 26, Sukhumvit Road, Khlong Ton Khlong Toei, Bangkok 10110 T: +66 (0) 2649-6666 F: +66 (0) 2649-6699 Website: www.sukhumvitbangkok. doubletree.com

Representative: Mr. Thomas Glaser, Director of Business Development Business Activity: Thomas Glaser introduces the CARE (Create a Rewarding Experience) Culture in Bangkok, welcoming guests with warm chocolate cookies upon check-in. Guests receive the special comforts and acts of kindness that make the traveler feel human again.

Grant Property 14 Coats Cresent, Edinburgh EH37AF United Kingdom T: +44 (0) 131 220 6360 Website: www.grantpropertyinvestment.com

Representative: Mr. Peter Grant, CEO Business Activity: Peter Grant founded Grant Management, a residential property investment company in 1997. The business started when Peter and his wife, Colette, bought a property as an investment for themselves. The business now have c£0.5bn of assets under management and operates in 12 cities across the UK. Peter is a keen skier, sailor and golfer.Grant Property Investment focus on the high

performing ‘student rental market’ in 12 major university cities across the UK. Their proven track record over the last 15 years has given them the opportunity of helping clients from over 30 countries invest over 2,000 times in the UK. Their one stop solution includes the sourcing of properties, renovating, furnishing and property management.

Hilton Sukhumvit Bangkok 11, Soi Sukhumvit 24, Sukhumvit Road Khlong Ton, Khlong Toey Bangkok 10110 T: +66 (0) 2649-6666 F: +66 (0) 2649-6699 Website: www.hilton.com

Representative: Mr. Chris Ehmann, General Manager Business Activity: Chris Ehmann leads the team in the recent openings of the DoubleTree by Hilton Sukhumvit in April 2013 and the Hilton Sukhumvit in September 2013 in developing both hotels’ vision and strategy, as well as oversee hotel operations. Hilton Sukhumvit Bangkok is positioning their restaurants to be destinations within their own right. KLBD Kosher Certification 305 Ballards Lane London N128GB United Kingdom T: +44 (0) 208 343 6268 Website: www.klbdkosher.org Representative: Mr. David Busse, Technical Sales Manager

Safehouse Habitats (Scotland) Ltd. Strathmore House, Charles Bowman Avenue, Claverhouse Industrial Park Dundee United Kingdom DD49UB T: +44 (0) 13 8281 4122 F: +44 (0) 13 8248 9952 Website: www.safehouseltd.com

Resignations & Cancellation:

Representative: Mr. Michael Walls, Business Development Consultant South East Asia Business Activity: Safehouse Habitats (Scotland) Ltd specialises in the supply and installation of the Safehouse Positive Pressurised Habitat System used by Oil & Gas exploration and production companies worldwide to improve operational productivity and safety during “hot work” in hazardous environments containing hydrocarbons such as offshore oil and gas installations.

Vectair Systems Ltd Unit 3, Trident Centre Armstrong Road, Basingstoke RG248NU United Kingdom T: +44 (0) 12 5631 9500 F: +44 (0) 12 5631 9510 Website: www.vectairsystems.com

Representative: Mr. Joe Ovenden, Sales Director Business Activity: Vectair Systems are a leading technological innovator, manufacturer and supplier of hygiene products in a number of sectors worldwide. We deliver sanitary solutions to over 120 countries. In particular, Vectair Systems are experts in odour control, hand washing, surface care, feminine hygiene disposal, infant care and products specifically designed for the ‘away from home’ washroom. Vectair Systems also offer unique OEM (Original Equipment Manufacturers) services, allowing companies to design their own style of coordinated washroom products and dispensers, using the latest manufacturing technologies from state of the art facilities. With European head offices in Basingstoke, United Kingdom and North American Headquarters in Memphis, USA, along with manufacturing facilities based strategically around the world, we truly have a global reach.

1. HASSELL (Thailand) Limited 2. Innov8 Recruitment (UK) Limited 3. Jaguar Cars (Thailand) Co., Ltd. 4. Millennium Resort Patong Phuket 5. Semple Cochrane (Asia) Co., Ltd. 6. Spark Communications Co Ltd New Company Representatives: 1. AB Food & Beverages (Thailand) Ltd., changed from Mr. George Fatouros, to Mr. Douglas Stuart Elliott 2. BG Asia Pacific Pte Limited, changed from Mr. John Field, to Ms. Sinead Lynch 3. Binswanger Brooker Thailand Ltd., changed from Mr. Anake Kamolnate, to Ms. Angkana Tuamuam 4. Crowne Plaza Bangkok Lumpini Park, changed from Mr. Mark Winterton, to Ms. Tash Tobias 5. Four Points by Sheraton Bangkok Sukhumvit 15, changed from Ms. Janet McNab, to Ms. Jesselyn Koh 6. PZ Cussons (Thailand) Ltd., changed from Mr. Alakh Nanda, to Mr. Rob Spence 7. Savills (Thailand) Limited, changed from Mr. Robert Alastair Collins, to Mr. Mark Price 8. Wood Group Heavy Industrial Turbines (Thailand) Ltd, changed from Mr. David Robert Wilkinson, to Mr. Christopher Barrow Changes of company name: 1. Bupa Health Insurance, changed to Bupa Health Insurance (Thailand) Public Company Limited 2. JAC Personnel Recruitment Ltd., changed to JAC International Recruitment Ltd. 3. Transpo International Ltd., changed to Asian Tigers Mobility Members with new addresses: 1. BT Siam Ltd. 23rd Floor, Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 T: +66 (0) 2126-8006 F: +66 (0) 2126-8080 2. Vriens & Partners 2nd Floor Unit B, Tonson Tower, 900 Ploenchit Road, Lumpini, Pathumwan Bangkok 10330 The Link

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FINAL WORD

Time to derail HS2 By Dale Lawrence

‘scandalous waste of taxpayers’ money’. Environment Secretary Owen Paterson is reportedly unimpressed with the case for HS2 and pressure groups will be hoping that he imposes tough environmental impact criteria that shunt HS2 into the sidings. It’s clear that the case for derailing HS2 is gathering steam and hope is mounting that common sense will eventually prevail.

pposition to the UK’s overpriced and overrated HS2 rail project is mounting amid growing concerns by former Labour government ministers that the scheme they once supported is no longer a sound and sensible use of taxpayers’ money. The Labour Party annual conference in September heard Shadow Chancellor Ed Balls lending his support (and in doing so making a rare statement of common sense) to concerns expressed recently by, amongst others, Peter Mandelson, Alistair Darling and Tom Harris. Findings revealed by the Council for the Protection of Rural England (CPRE) are casting a dark shadow over HS2, a high-speed rail link that is set to run initially from London Euston to Birmingham from 2026 and later continuing northwards on two routes to Manchester and Leeds.

Rock of Ages Actor Geoffrey Palmer is backing the ‘No’ campaign

lution in such beautiful countryside,” she said, adding that ‘the impact during construction will damage forever South Northamptonshire leaving home owners with permanent blight and misery as well as huge financial losses’.

The CPRE says that the full extent of environmental havoc set to be wreaked by the high-speed line is only coming to light because of persistent lobbying from opponents of HS2. CPRE senior transport campaigner Ralph Smyth says that the construction project will create an endless convoy of 32 ton and 42 ton trucks moving through towns and villages; beauty spots will be scarred permanently by viaducts, bridges and rail depots, and rural homes will be blighted by rail noise reaching 95 decibels from up to 16 trains an hour.

Penny Gaines chairs the ‘Stop HS2’ campaign team. She said, “With the recent increase in the budget for HS2, people are looking closely at the project. There are so many other possible ways of spending the infrastructure budget without committing the country to £50 billion on a single project. The sooner this white elephant is cancelled the sooner we can start looking at the infrastructure needs of the country and the type of railway that bests suit the needs of 21st century commuters.”

Andrea Leadsom, Tory MP for South Northamptonshire, is predicting an ‘appalling’ impact on her constituents from construction and is calling for compensation. “There’s no doubt that residents are devastated by the prospect of the noise, traffic and pol-

Prime Minister David Cameron appears determined to press ahead with the scheme, despite mounting criticism and the lack of a credible business case. But there is hope that environmental issues could yet scupper a project best described as a

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Age is no barrier to rock and roll – particularly if your name is Jagger. Rolling Stone Sir Mick celebrated his 70th in style this summer at the Glastonbury Festival and later at two sell-out shows in London’s Hyde Park, wondering if this was to be ‘The Last Time’. Now Jumping Jack Cash is preparing to be a great grandfather with his granddaughter Assisi, 21, expecting her first child in the New Year. Is this simply a case of Sir Mick getting a little more ‘Satisfaction’?

In Safe hands It seems entirely appropriate that the new president of the Australian and International Pilots Association (AIPA) is Mr Nathan Safe.

ALGERIA, BAHRAIN, BRUNEI DARUSSALAM, COLOMBIA, CÔTE D’IVOIRE, EGYPT, GABON, GHANA, INDONESIA, JORDAN, KUWAIT, LEBANON, LIBYA, MALAYSIA, MEXICO, MONGOLIA, MOROCCO, MYANMAR, NIGERIA, OMAN, PAPUA NEW GUINEA, PANAMA, PERU, QATAR, SAUDI ARABIA, SENEGAL, SOUTH AFRICA, THAILAND, THE PHILIPPINES, TUNISIA, TURKEY, UAE: ABU DHABI, UAE: DUBAI, UAE: RAS AL KHAIMAH

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