News and analysis for Bangkok’s English language business community
Bangkok BUSINESS BRIEFING First published 2011. April/May 2016 relaunch edition
IN THIS ISSUE INSIGHTS 5
Welcome to Bangkok Business Briefing
6-7
SURVEY: Where Bangkok flies
8
Bangkok’s traffic congestion ranked
9
Thrifty comes to Thailand
10
Can Thailand maintain pole position in the ASEAN automotive market?
12
Iflix gains Sky as investor
13
True’s China Mobile pact: what it means
14
New ringgit/baht settlement platform
15
Bangkok’s 1st halal hotel
16
World’s biggest telecom show comes to TH
17
Thailand’s best companies: two surveys
FEATURES 20
Why you should not register in Thailand
22
Frank advice on going it alone as an expat entrepreneur
PROFILES 24
The capital career of Raine Grady
28
Seachangers: three successful business stories
32
From journalist to real estate salesman
GUEST OPINION 34
Getting recruitment right
This issue of Bangkok Business Briefing was edited by the team from Decisive Publishing. Global; HQ: Suite 26, Level 17, 327 Pitt Street Sydney NSW Australia 2000 ACN: 13 065 084 960 Founder and CEO: Grahame Lynch Group editorial director: Petroc Wilton Journalists: Tony Chan, Geoff Long, Richard van der Draay Editor at large: Nicola Jones-Crossley All editorial inquiries to grahamelynch@commsdaymail.com
BANGKOK BUSINESS BRIEFING is published under license by Centaur Management 394/42, D’65 Condominium, Soi Sukumvit 65, Prakanong Nua Sub District, Wattana District, Bangkok, 10110 Thailand Publisher & Advertising inquiries: Yamong Cools yamongcools@gmail.com 0818780016 Accounts: Maethika Tansakul maethika@centaur-mgmt.com 02 714 1559 This magazine was formerly titled Bangkok Business Brief Circulation: 10,000 copies circulated to a controlled database of expatriate business community members, hotel business lounges and paid subscribers. Ensure you receive BBB in the future. Sign up at :
www.bangkokbusinessbriefing.com
WELCOME TO BANGKOK BUSINESS BRIEFING
B
angkok is an incredible place. It suffers from trials and tribulations in the form of floods, demonstrations, bombs, corruption, congestion and resource pressures to a sufficient degree that in times of antiquity it would have been wiped from the map. But it retains its incredible Teflon-like ability to bounce back from adversity. Just over one year ago, the Brookings Institute said Bangkok was the slowest growing of 300 cities it measures annually. But the latest economic growth statistics show that Thailand and its capital city are bouncing back. In the 4th quarter of last year, private expenditure on most measures was up year on year: and to the extent that the economy was in a torpor, this was mainly in the rural agricultural industry. In terms of capital expenditure, public spending pumped the construction sector and a look around Bangkok in terms of new developments such as Iconsiam shows that confidence endures. It is into this environment that we re-launch a five year old newspaper as a colour A4 print magazine and email publication. We have always believed that the best time to launch an enterprise is in times of adversity and there is certainly plenty of that to go around. But as the content of this issue of the magazine shows, there are still plenty of bright aspects to Bangkok’s international business community. We feature the success stories of a number of entrepreneurs in this issue, along with grounded advice from those who have been there and seen it all, as well as insights on some of the most interesting business news from the last month or two. There is every reason to be confident about Bangkok’s future. Exports remain buoyant, a start-up scene is rapidly emerging and with growth in Thailand’s regional neighbours, the opportunity is there for Bangkok to assert itself as a regional hub. We want to share this journey with you. If you fancy yourself as a editorial contributor to these pages, our doors are open to your pitch. If you are seeking to promote your wares or brands to tens of thousands of Bangkok’s English-speaking business people, we are your most targeted advertising option. And later in the year we will introduce an event and awards series where we hope to meet some of you in person. We are looking forward to serving your business insights, analysis and networking needs across 2016 and beyond. The editorial team, Decisive Publishing
REGIONAL SURVEY
Where Bangkok flies Beijing 7
Tianjin 1 Seoul 15
Shijiazhuang 1 Taiyuan 1
NUMBER of daily non-stop flights from Bangkok
Busan 3
Zhengzhou 1 Xi’an 2
Wuhan 4
Fuzhou 2
Chengdu 2
Xiamen 2
Chongqing 3 Delhi 5
Huangzhou 2
Changsha 2
Paro 1
Kathmandhu 1
Shanghai 12
Shantou 1
Dhaka 3
Hong Kong 33
Kunming 5 Shenzhen 2 Mandalay 3
Mumbai 5
Kaohsiung 1
Guangzhou 11
Chittagong 1
Kolkata 4
Taipei 11
Naypyitaw 1 Yangon 18
Hanoi 10
Haikou 1
Luang Prabang 4 Vientiane 5
Hyderabad 1
Macau 9
Manila 6
Suvannakhet 1 Chennai 2
Pakse 1
Bangalore 2
Siem Reap 11 Phnom Penh 10 Ho Chi Minh City 14
Colombo 2
Penang 2 Kuala Lumpur 28 Medan 1
Johor Bahru 1
Brunei 1
Singapore 31
Jakarta 4
Denpasar 2
Sapporo 1
Nagoya 3 Osaka 5 Fukuoka 2
D
aily non-stop flights are an important marker of the connectivity of a city to its international region across tourism, business and personal connections. Bangkok Business Briefing’s survey of the Asian cities with which Bangkok has such a connection shows one startling thing: the city’s primary connection is with China’s Pearl River Delta. An astonishing 55 flights on average per day fly non-stop to the four airports in that region: Guangzhou, Shenzhen, Macau and Hong Kong. Indeed, some 104 flights a day proceed to a total of 20 destinations in mainland China (including Hong Kong).
Tokyo 23
Unsurprisingly, the other major North Asian economies are also major powerhouses for non-stop daily flight connectivity to Bangkok. There are 34 daily flights to Japan, 18 to South Korea and 12 to Taiwan. But it is in ASEAN, with two exceptions, that Bangkok’s flight connectivity comes into its own. There are 31 non-stop daily flights to neighbor Malaysia, as well as 31 to Singapore. But there are also 24 flights to two destinations in Vietnam, 22 to three destinations in Myanmar, 21 to two destinations in Cambodia and 11 to four destinations in Laos. However, connectivity to ASEAN’s number one economy Indonesia and its second most populous, the Philippines, is revealingly less developed. Just seven flights a day make it to Indonesia, and two of them are to Denpasar, a major international tourist destination. There are six flights a day to Manila, none direct to other destinations in that sprawling nation. Bangkok’s business, personal and increasing tourist ties to India are also pronounced, with 19 flights a day to five destinations. This may represent a mere one-fifth of the traffic to China, but still shows that Bangkok is increasingly a hub on an arc that connects North Asia with South Asia. Further to that is daily flight connectivity to all India’s neighbors Nepal, Bhutan, Bangladesh and Sri Lanka.
INDICATORS
Bangkok receives global silver for traffic jams
B
angkok has been awarded the dubious distinction of being the second worst city in the world for traffic congestion, behind only Mexico City and knocking last year’s “winner”, Istanbul, into third place. An annual index compiled by GPS and telematics specialist TomTom found that Bangkok residents faced 57% longer travel times because of the city’s congestion. The index measures congestion in 295 cities using GPS data from its devices out in the field. According to TomTom, the congestion level percentages represent the measured amount of extra travel time experienced by drivers across the entire year. “This is in
comparison to measured travel times during uncongested conditions. We calculate and report the overall congestion level (all day) and the morning and evening peak hour congestion levels for each city.” Bangkok also scored the dubious distinction of having the world’s worst evening peak congestion with its drivers taking 114% longer than in a “free flow” situation to reach their destinations. The only other city in Asia to make the global top ten was Chengdu in China although there were twelve other Chinese cities in the global top thirty. Bangkok was not ranked last year due to a lack of data.
AUTOMOTIVE
Can Thailand maintain pole position in ASEAN’s automotive race?
N
ew research data suggests that Indonesia is on its way to challenge Thailand’s ASEAN dominance in automotives, but the Thai government and the country’s existing strength in electronics may respond with formidable defence. According to Ipsos Business Consulting global automotive sector leader Markus Scherer, Indonesia is closing in on Thailand as the region’s top car making centre. In 2015, Thailand produced 811,000 more cars than Indonesia’s 1.1 million. But by 2020, that number is expected to shrink to 466,000 units, driven by strong domestic demand and production base expansion by top original equipment manufacturers. “The evidence is clear that in terms of the trend in vehicle production output, policy development, and improvements in infrastructure, Indonesia continues towards increasing capacity, domestic consumption and export volumes,” Scherer said. “Automotive manufacturers and policy makers in Indonesia, Thailand and else-
where will want to consider the implications.” One of the main drivers behind Indonesia’s push is its rapidly expanding domestic market, which grew 16% between 2011 and 2014 – more than 3 times the Thai growth rate of 5%, and second only to the Philippines (28%), according to Ipsos. The surge in domestic demand, and its attraction to global carmakers, will drive production capacity growth in Indonesia, said Ipsos country head for Indonesia Douglas Cassidy. “Global automotive players who do not yet have a significant production base in Indonesia will increasingly be asking whether they are positioned to gain market share in an ASEAN market comprising more than 600 million people, and whether they can defend their existing market share as other companies look to expand in Indonesia and Asia generally,” Cassidy said. “A production base in Indonesia will enable them to benefit from the cost, scale and
supply chain advantages of the country that seems on track to become the pre-eminent automotive power in ASEAN.” Despite clearly having its foot on the gas petal, Indonesia has its own challenges to navigate, such as the need for a stable regulatory environment, and continuous development of the support infrastructure required for the automotive sector. At the core of the matter, Indonesia needs to make it easier for foreign businesses to do business. At the moment, the country ranks 109th out of 198 countries in the World Bank’s ease of doing business index, compared to Thailand in 49th spot, Ipsos said with Scherer noting that “recent developments have been encouraging, encompassing the relaxation of foreign ownership rules and streamlined licensing applications procedures.” But while Indonesia is the top automotive spot in ASEAN, Thailand is still very much in the race. For starters, Thailand boasts one of the best “logistics supply chains” in South East Asia, Ipsos said. Today, half of the cars made in Thailand are exported to overseas markets. Additionally, the country has a mature automotive components industry that already ships globally. At the same time, Thailand is also adapting its production capacity to capture the global demand for low-emission vehicles, a strategy publicly endorsed by the Thai government. In a recent meeting with executives from Toyota, Isuzu, Nissan, and Honda, Thai prime minister Gen Prayut Chan-o-cha specifically highlighted the country’s ambition to become the manufacturing hub for eco
and hybrid vehicles. Subsequent reports suggest his message was received loud and clear with all four carmakers pledging some kind of investment into production or research into hybrid or electric cars in the country. Today, one in seven cars manufactured in Thailand are categorised as eco-car, according to statistics from Ipsos. Also on the technology front, Thailand is well positioned to capture the growth in telematic solutions by combining its automotive leadership and mature electronics and electrical appliances industry, added SEMI, the global industry association serving the electronics manufacturing supply chains. “Thailand is in the list of the world’s top 15 automotive manufacturing countries [Editors’ note: it is 9th] and the most important growth area within automotive elec-
tronics is infotainment,” said SEMI Southeast Asia president Ng Kai Fai. “According to recent news reports, the global automotive electronics market is expected to reach US$280 billion by 2020. This provides a fertile ground for the semiconductor and electronics industry to strengthen the regional business collaborations between Thailand and Southeast Asia.”
AUTOMOTIVE
Thrifty launches in Thailand
T
hrifty Car Rental has expanded its global footprint to Thailand, launching two locations initially in Bangkok and Pattaya. It has an additional seven airport locations planned to open in 2016. Thrifty Thailand is open in Sathorn Road – its Bangkok Downtown branch – while North Pattaya Rd is its Pattaya Downtown branch. Thrifty, which is part of the Hertz Global group, is aiming to position the Thailand brand to serve “value-oriented” customers, according to the company. It said the locations in Thailand would be strategically placed in relevant urban areas to satisfy the mobility needs of local customers and international travelers alike. The Thailand launch followed an extended agreement between Hertz and its franchise partner Paragon Car Rental, which has been operating Hertz in the country since 2003. Future planned openings for 2016 include the international airports in Suvarnabhumi (Bangkok), Donmuang (Bangkok), Chiang Mai, Chiang Rai, Phuket and Samui as well as the domestic air-
port in Khon Kaen. “It is truly exciting for us to see Thrifty's expansion to Thailand,” said Michel Taride, group president, Hertz International. “Already a much sought-after destination by millions of international travelers every year, the addition of low-cost airline routes to Thailand is expected to drive even further growth potential for the Thrifty brand.” Taride said that longstanding franchise partner Paragon Car Rental would continue to manage Thrifty and was ideally positioned to serve both international visitors and domestic customers. “After having successfully operated Hertz Thailand for 13 years, we are now ready to step forward, with an additional exciting adventure by launching Thrifty Thailand,” said Paragon chairman Chartchai Panichewa. “Embracing Hertz's multibrand strategy will help us expand our market, and target additional customer segments.” Thrifty Car Rental started its expansion to Asia last year. The company currently operates in Singapore, Malaysia, the Philippines and Thailand.
MEDIA & ENTERTAINMENT
iflix attracts big name international investors
S
outheast Asian internet TV service iflix announced the completion of a large new round of funding worth an estimated US$50m, led by Sky PLC, Europe’s leading entertainment company. Indonesian company Emtek Group, through its subsidiary Surya Citra Media, one of Indonesia’s leading television and content companies, also participated in the round. The funds will help accelerate the company's growth in Malaysia, Thailand and the Philippines, and will be used for expansion into new markets on the back of strong demand for the service. iflix co-founder and Group CEO, Mark Britt said: “As pioneers of the global broadcasting industry and true leaders in television and media, Sky shares our passion for delivering market-leading content and services through innovation.” “We are also pleased that Sky will further their commitment by appointing a director to the board of iflix.” Britt continued, “In response to both the
rapid growth and customer adoption in our existing markets and strong demand from new markets, we have decided to accelerate our expansion plans for the business sooner than expected.” Andrew Griffith, Group Chief Financial Officer, Sky commented: “iflix has quickly established itself as Southeast Asia's most exciting and fastest-growing streaming TV service. There are lots of opportunities for Sky and iflix to work together and share expertise as both companies continue to expand.” iflix claims over one million subscribers to its service. Unlike Netflix, much of its content is subtitled in Thai for the local market. But with so much competition, trade journal ContentAsia was moved to question whether there may be a streaming VOD bubble at play. “Is the streaming boom in Asia real or bat-bleep-crazy? Some think both, and that the current madness will settle down to a few superstars driven in equal measure by content and tech savvy, underpinned by the big-bang ability to be bold, innovative and to move fast.
TECHNOLOGY & TELECOMS
True’s China Mobile pact: what it means for local market
T
rue Corporation has signed a memorandum of understanding to work with the world’s largest mobile operator China Mobile, along with Singapore’s StarHub. Under the framework called “Hand-inHand Program,” the three operators pledged to accelerate strategic collaboration across five broad areas ranging from handsets to the Internet of Things. According to the international arm of China Mobile, who will represent the Chinese-giant in the three-way MoU, the goal of the Hand-in-Hand program is to “form an integrated platform involving an expanding group of international partners.” While specific details of the program have yet to be announced, the broad definition of initiatives indicates clear directions that would benefit all three carriers. In the device realm, the three partners will “intensify” collaboration, including research into future technologies. As such, True will be able to tap into the immense resources and industry clout of China Mobile when it comes to future devices with the likely result True will not only get devices earlier, but more cheaply. Meanwhile, tighter cooperation in mobile roaming will come into play for the three operators both for traditional voice and data services, as well as new business opportunities in relation to innovation and the Internet of Things, the operators said. For True, that means better support for its customers travelling to China and Singapore, and possibly more revenue from in-
coming roamers from the two countries logging onto its network. At the same time, True will have access to China Mobile’s “global Wi-Fi hub” – an global Wi-Fi infrastructure designed to supplement LTE roaming. There are other synergies between the three operators, starting with business data services. According to China Mobile, the program will aim to “strengthen complementary capabilities” from the three operators in this area. While the description remains vague, there are clear opportunities for cross border cooperation for all three partners, including converged fixed and mobile solutions targeting multinational corporations. At the very least, the three operators can share information on the program’s Global Resource Improvement Platform, or GRIP, which is designed to drive operational efficiency when working across borders and operator infrastructures. The Hand-in-Hand Program was initiated in July 2015. The non-exclusive partnership platform aims to attract not only other telecoms operators, but also partners from other industries, China Mobile said.
TOURISM & HOSPITALITY
Behind Bangkok’s 1st halal hotel
W
hile Thailand has always had a well developed tourism infrastructure to support Muslim visitors, the operator of the new Al Meroz Hotel in Ramkhamhaeng says he now wants to bring that message to Europe as well as the 1.6 billion Muslims worldwide. According to Al Meroz Hotel GM Sanya Saengboon, Thailand remains outside the radar of most Muslims living beyond Asian countries such as Malaysia, Indonesia, and Brunei, where most of the country’s Muslims visitors originate. “Our target markets are Muslims living in France, Germany and Scandinavia – European countries with significant Muslim communities – as well as Austria and Eastern European countries like Serbia,” Sanya told tourism industry publication TTG Asia. “I expect Europe’s Muslim outbound market to grow, especially to South-east Asia, as the region is still perceived as an exotic destination.” As part of its strategy, Sanya said the hotel is sending representatives to key travelrelated trade shows in Europe, and the Middle East, and plans to conduct a road show to spread its message to Central Asian countries such as Kazakhstan, Uzbekistan and Azerbaijan. The hotel, which is certified by the UAE’s Gulf Halal Centre as a Muslimfriendly establishment, offers an all halal environment catering specifically to Muslims, including halal restaurants, a women-
only floor, separate prayer rooms and a rooftop swimming pool that is opened at different times for men and women. Also, the entire premises are alcohol-free and all staff has received training on Islamic dress code and customs, including the handling of food. Each room also comes with a copy of the Quran, qibla showing the direction to Mecca, and prayer schedule and mat. According to Sanya, about 50% of its current guests are Muslim. Al Meroz Hotel is arguably the first large establishment to specifically cater for Muslim tourists coming to Thailand, but it is only the latest creation in a well-developed industry. According to Tourism Authority of Thailand officials, 1.1 million Malaysian Muslims already visit Thailand on an annual basis, equivalent to the roughly the number of tourists arriving from Korea. There is even a mobile app that informs Muslim visitors where to visit in Thailand. Another source of Muslim visitors to Thailand is Brunei, according to Thai officials. The number of tourists from Brunei increased by 49% between 2014 and 2015, with each visitor averaging two visits for year for shopping and increasingly, medical treatment. Brunei has likewise caught the attention Al Meroz Hotel’s Sanya, who is soliciting not just guests, but also cooperation from the Asian neighbour. Sanya is looking for suppliers of halal products, Muslims staff for the hotel, as well as potential partners to promote tourism between the two countries.
EVENTS AND NETWORKING
World’s biggest telecom show comes to BKK
T
he International Telecommunications Union has picked Bangkok, Thailand as the venue for its ‘ITU Telecom World 2016’ event, focused on growing the digital ecosystem and the role of SMEs. The four-day event is intended to combine a global technology exhibition, a knowledge-sharing forum, a networking hub for corporates, governments and SMEs and an awards program. Showcasing digital solutions and investment opportunities from nations, regions, organisations and companies, it will encompass both emerging and developed markets; the emphasis is on bringing high-growth SMEs, especially those founded in developing markets, to the international stage.
“By emphasising the importance of collaboration throughout the digital economy, ITU Telecom World 2016 will highlight the roles of multiple stakeholders from government and industry, including the small and medium businesses that are key to driving innovation and ensuring sustainable, inclusive economic growth,” said ITU secretarygeneral Houlin Zhao. Zhao added that holding the event in Bangkok would add value “as the city is at the centre of a fast-growing digital economy and is an important strategic gateway to the ASEAN countries and the wider South East Asian region.” ITU Telecom World 2016 will run at Impact from 14-17 November.
FINANCE & MARKETS
Ringgit, baht settlement framework begins
B
ank Negara Malaysia and Bank of Thailand announced the operation of a local currency settlement framework as part of the continuous efforts to promote the use of ringgit and baht for settlement of bilateral trade between the two countries. This follows a memorandum of understanding signed between the two central banks in August 2015. The two said that the introduction of the framework allows for greater efficiency in accessing the local currencies and managing exchange rate risks arising from trade transactions. With the framework, Malaysian and Thai businesses will be able to effectively source ringgit and baht from the respective banks in their home countries to settle trade transactions. Bangkok Bank, CIMB, Malayan Banking and Kasikornbank will participate in the
framework. "Given that this is a pilot project, only banks that fulfil key qualifications are selected to ensure success and smooth operations of the project. These qualifications include strong business links between both countries, presence of branches in both countries or high volumes of trade in ringgit and baht. In addition, these banks have been granted the necessary flexibilities to provide a greater range of financial services which include ringgit and baht deposits, trade financing and hedging products,� the two central banks said in a press release.
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EXCELLENCE
Who Frost & Sullivan ranks as Thailand’s best companies
Global analyst firm Frost & Sullivan awarded its 5th annual gongs for Thailand’s best products and firms in six key verticals late in March at the Dusit Thani hotel. According to the firm, its awards are researched by its analyst team using metrics such as: • Revenue growth • Market share in specific category and growth in market share • Demonstrated leadership in new product introduction and innovation • Breadth of products and solutions • Major customer acquisitions • Subscribers and growth in subscriber base • Business/market strategy
AUTOMOTIVE Debut Car of the Year Suzuki Motor for Suzuki Ciaz Car of the Year Honda Automobile for Honda HR-V Luxury Car of the Year Mercedes Benz for Mercedes Benz C-Class Value-for-Money Car of the Year Mitsubishi Motors for Mitsubishi Attrage Pickup Model of the Year Nissan Motor for Nissan Navara
CHEMICALS, MATERIALS & FOOD Animal Nutritional Feed Company of the Year Charoen Pokphand Foods PCL Oleochemicals Company of the Year Global Green Chemicals PCL Wood Coatings Company of the Year Tai-Yo Paints (Thailand) Co. Ltd Palm Oil Plantation Company of the Year Univanich Palm Oil PCL ENERGY & ENVIRONMENT LED Signage New Product Innovation Award Civic Media Co Ltd Biomass Power Company of the Year DP Cleantech Water Technology O&M Service Provider of the Year East Water Group Facilities Management Building Operations & Maintenance Customer Value Leadership Award ISS Facility Services Co Ltd Facilities Management Public Infrastructure Support Services Company of the Year ISS Facility Services Co Ltd Property Development Customer Value Leadership Award Land And Houses Public Company Limited LED Lighting Company of the Year Philips Electronics (Thailand) Ltd Facilities Management Industry (Building Operations & Maintenance) Company of the year Property Care Services (Thailand) Ltd Property Development Product Leadership Award Raimon Land PCL Property Development Company of the Year Sansiri PCL
Biogas Company of the Year Award Thai Biogas Energy Company Limited Water Technology System Integration Company of the Year TropicalTech Co Ltd Thailand Technology Innovation Award in Bath Fittings Bathroom Design Co Ltd Industrial Bioremediation Company of the Year Keeen Limited TRANSPORTATION & LOGISTICS Emerging Logistics Service Provider Company of the Year aCommerce Oil and Gas Logistics Service Company of the Year Bangkok Freight Forwarders Co. Ltd. Project Logistics Company of the Year CEA Project Logistics Logistics IT Solutions Company of the Year Dynamic IT Solution Co Ltd (JWD Group) Cold Chain Logistics Service Provider of the Year JWD Infologistics PCL Warehouse Development Company of the Year WHA Corporation PCL Technology Innovation Leadership Award in Textile Fibers Industry Phoenix Pulp & Paper PCL HEALTHCARE Diagnostic Services Company of the Year Bangkok RIA Group Stem Cell Company of the Year Cryoviva (Thailand) Co Ltd Medical Gloves Company of the Year
Siam Sempermed Corp. Ltd Healthcare Supply Chain Company of the Year Berli Jucker PCL Private Healthcare Insurance Company of the Year AIA Co Ltd ICT Contact Center Applications Vendor of the Year Avaya Managed Security Services Provider of the Year CAT cyfence 2016 Thailand Contact Center System Integrator of the Year Chevalier Networks Solutions Thai Limited Unified Communications System Integrator of the Year Dimension Data (Thailand) Limited Infrastructure as a Service Provider of the Year INET Fixed Broadband Service Provider of the Year Jasmine International Unified Communications Vendor of the Year NEC Corporation (Thailand) Ltd Outsourced Contact Center Service Provider of the Year One To One Contacts Data Center Hosting Service Provider of the Year TCC Technology Company Ltd Telecom Service Provider of the Year True Corporation PCL Mobile Data Service Provider of the Year True Move H Universal Communication Co Ltd Mobile Service Provider of the Year True Move H Universal Communication Co Ltd Most Innovative Enterprise Messaging Service Provider of the Year Eko Communications
Finance Asia ranks Thailand’s best managed companies Hong Kong’s Finance Asia magazine asked 129 portfolio managers and analysts for their view on Thailand’s best managed firms. The overall winner was seafood maker Thai Union Group, a firm only founded in 1977 and listed in 1994. With a turnover of 125 billion baht and a labour force of over 46,000 employees, Thai Union is best known by its portfolio of major brands including Chicken of the Sea, John West, King Oscar, Petit Navire, Parmentier, Mareblu, and Century, as well as Thai brands Sealect, Fisho, Bellotta, and Marvo. Working in fisheries brings its fair share of controversy, but the firm has won plaudits for its CSR work.
BEST MANAGED COMPANIES 1: Thai Union Group 2: AIS 3: True Corporation 4: Airports of Thailand 5: Central Pattana 6: Intouch Holdings 7: Minor International 8: Home Product Centre 8: Siam Cement
BEST MIDCAP 1: Carabao Group 2: MK Restaurant 3: Thaicom BEST SMALL CAP 1: Big Camera 2: Workpoint Entertainment BEST CFO: 1: Noppadol Dej-udom, True
BEST CEO 1: Thirapong Chansiri, Thai Union 2: Bill Heineke, Minor Group 3: Phillip Tan, InTouch Holdings 4: Somchai Lertsuthiwong, AIS BEST INVESTOR RELATIONS: 1: Thai Union Group 2: Minor Group 3: AIS
W
’ REGISTER C
N
owadays, every man, woman and their dog wants to be an entrepreneur. No longer does the traditional school, university, corporate job trajectory apply to young people. More often than not, fresh graduates take what little money they have, roughly sketch a business plan and enter the tough world of being their own boss. This concept appeals not only to youngsters starting out, but also to middle level corporate executives who quit their office jobs to follow their passion. Whether this obsession with entrepreneurship stems from wanting meaningful work, dissatisfaction working for someone else, or the need for flexibility, working for yourself has never been sexier. Enter Bangkok. Regional HQ of some of the world’s biggest companies and home to a bustling startup and entrepreneurial sce-
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ne. It boasts a socially savvy, mobile focussed market brimming with copycat companies and innovative ideas. Local up-and-comers compete head to head with foreign owned startups, vying for funding, sourcing talent and working on becoming the next big thing. The hub of the region, Bangkok was voted the second Best Business City in Southeast Asia, beaten only by Singapore in 2014 and although the startup scene is relatively young, Bangkok has momentum on that front. However, do locally owned startups and foreign entrepreneurs compete on a level playing field? Relatively low startup costs attract foreign players to Bangkok while local Thai companies experience increased competition in an ever globalising market. Echelon touched on this topic briefly at a two day conference held at the Bangkok In-
ternational Trade and Exhibition Centre. Speaking at Echelon, Conor Bracken founder and CEO of Andovar—a firm which specialises in advising clients on regional localisation—challenged the largely foreign audience to research options for legalising their startups outside of Thailand. “Don’t register a company in Thailand,” he declared, after apologising in advance to the Thai government representatives present. For foreign founders, Bracken explained, Thailand’s complicated paperwork, red tape and visa requirements, baffles entrepreneurs and discourages foreign startups from registering their business in Thailand. The battle for 100% foreign ownership of a company can quickly turn into a nightmare. An easier way to legalise a startup company, Bracken suggested, would be to register in Singapore where the process is fairly simple then enter Thailand and apply to the Board of Investment (BOI) for 100% ownership of a foreign company operating in Thailand. Once the foreign company is granted BOI status, lucrative tax breaks are available along with other benefits. That may be all very well for foreign owned startups, but what does this mean for aspiring Thai entrepreneurs? Unwittingly by creating more advantages for entering the Thai market as a foreign company with BOI privileges, exemptions and tax breaks, this creates a barrier to entry for indigenous young Thai companies who don’t even contemplate registering their company internationally to receive tax
breaks in their own country. Where foreign companies might have to jump through more hoops initially when entering the Thai market and establishing BOI, financially they benefit long-term from geo-arbitrage. “Geo-arbitrage does not mean tax evasion,” Bracken stressed. It simply means taking advantage of a global economy. While emerging countries are often entrepreneurially innovative and costs of start up are low, often the legal and accounting frameworks or the taxation and compliance infrastructure either does not exist or is complicated and painstaking. As with everything in Thailand there are laws and then there are ways to circumvent those laws. Where structures are in place—in a round about way—to encourage foreign investment and business in Thailand, indigenous Thai entrepreneurs are not given a fair playing field. This may simply be because without having to juggle registration legalities, Thai startups are not aware of the benefits from operating as a foreign company in Thailand. With the arrival of AEC entrepreneurial competition is only going to get steeper. It’s imperative that entrepreneurs start thinking regionally and planning strategically when setting up and registering their company. Definitely think twice about registering in Thailand, especially when experts are advising your most nimble and agile peers to do the same. Nicola Jones-Crossley
LEARNINGS
Frank talk on what it takes to go it alone in business “To be an entrepreneur you need to be a psychopath” So exclaimed Cassandra Italia, Founder and Director of Global Health Travels and TopDocs, speaking at Startup Exchange: Entrepreneurship in Thailand hosted recently by the Australian Chamber of Commerce, Australian Alumni and Glowfish. Italia explained, “An entrepreneur needs to be highly dedicated, extremely particular and most importantly, needs to be able to charm the pants off investors.” Hosted by Glowfish, Bangkok’s boutique workspace, Italia was joined by a diverse panel of speakers including Ardent Capital CEO Adrian Vanzyl, Uber SEA executive Barry Levy, Blackmores country manager Pussadee Suchitchon and Heritage Estates MD Gavin Vongkusolkit. Together they shared their experiences of entrepreneurship in South East Asia. Moderator Simon Osborne kicked off the discussions by inviting thoughts from the panel on the insecurities of entrepreneurship and the uncertainties that come with being your own boss. Financial limitations, lack of regular income and social pressures were recurring issues, however passion for the work and belief in the projects outweighed many of these factors. Even without the technical know-how to run a business, Ardent Capital CEO Adrian Vanzyl claimed that “passion will trump whatever you have studied.” Barry Levy
from Uber agreed saying, “It’s important to love what you do. When you do, it doesn't feel like work.” This begged the question, has university become obsolete? Passion may be all very well, but can it take the place of traditional education, Osborne asked? Vanzyl was quick to defend his statement, offering that he understood university to be important for socialisation and experience. The field of study however, has been found to be irrelevant to entrepreneurs later in their careers. Many of the panel confessed to holding degrees in completely unrelated fields to their current line of work. While passion is paramount in all entrepreneur’s undertakings, finding a team to share that passion and vision is difficult. “Everyone who is good, is already doing their own thing,” Gavin Vongkusolkit noted. Those who know and understand the concept of entrepreneurship have often lived or studied abroad. These people are driven, determined and resourceful—all the factors that you look for in a great team member—but more often than not, these traits also mean they are entrepreneurial and are working on developing their own ideas. “No one wants a job anymore, they want to work for themselves,” Vongkusolkit added. Vanzyl agreed stating, “the biggest limiting factor for growth in South East Asia is
have learnt from their mistakes. people.” The region is awash with capital. Access to funding is fairly easy and even priVanzyl offered a personal reflection from vate investors are not hard to find. The rehis early years in business. “The biggest misgion is booming and there is money to back take I made was not learning from my sucthat growth. cesses.” Vanzyl went on to explain how he was successful very early in his career, makWhat is lacking is the talent to sufficienting some decently sized capital. ly grow these businesses. Spurred on by the fast results and not Which is why, Vanzyl explains, it is really stopping to plan or understand why, Vanzyl important to cultivate the culture of your marched on, intent on securing further company and staff. Your business will atdeals. He ended up losing everything he had tract dedicated, hard-working people if the earned and was forced to start from scratch culture of your company supports, acknowlonce again. edges and rewards their work. He warned the importance of strategising, Vanzyl and his company Ardent Capital analysing and taking the time to truly underare putting this into practice having just stand what contributed to success before launched Ardent Hired, the recruitment moving forward. arm of Ardent Capital. As the discussion opened up to questions Drawing on years of in-depth experience from the audience, one attendee asked “Do working with startups, Ardent Hired aims you need co-founders or to provide “fast-growing TAKEOUTS FROM THIS ARTICLE can a start-up be run by a > Passion is essential for entrepreneurs, startups in South East single founder?” In a room Asia with tailored recruit- tertiary education not so much > Everyone wants to work for themselves filled with aspiring entreing services.” > The region is awash with capital Pussadee Suchitchon, > Thai companies need to understand how to preneurs and successful business owners, the answer the new Country Manag- market themselves internationally > Analyse your successes, not failures to this could have gone eier for the popular vita> Partnerships are worth it ther way. The panel howevmin brand Blackmores, > Exit when you get your first offer er was unanimous. added that she felt Thai Yes, it is preferable to start your business entrepreneurship was limited by not knowwith a partner, as this gives you someone to ing how to market and present themselves bounce ideas off and go to for support, notprofessionally. ed Italia. Vanzyl added that venture capitalCompared to startups being funded out ists prefer to invest in companies that have of the US or closer to home in Singapore, more than one founder as it provides a more Suchitchon felt that Thai entrepreneurs stable investment. need to work on presenting themselves at Exit strategies and when to sell was also an international standard. of interest to the entrepreneurial audience. The way a company is marketed and preVanzyl offered his advice: As soon as you sented creates trust with the consumer, she get a decent offer for your first business, take explained. This trust in the company and it and get out. Exit sooner rather than later product is what Suchitchon believes to have the first time around as this gives you the been a major contributing factor to Blackcapital to start something else, dig your heels mores’ success in the Thailand. in and grow it big. In conclusion, Osborne asked the panelNicola Jones-Crossley ists to share with the audience how they
CAPITAL CAREER
Behind the success of video and TV entrepreneur Raine Grady
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also highlighted some of the milestones she here are too many malls in Bangkok! has celebrated as her business has grown. exclaimed Australian long-term expat Raine Grady. After slight confusion over “When we had the chance to be recogwhich branch of TWG Tea in which to nised outside of Thailand, when we were meet (she thought Emquartier, we thought ap-proached by CNBC Asia for instance to Emporium) Raine settled into her chair and pro-duce programs for them, suddenly it gestured around her. “There was none of was a different ballgame and we had to set this 20 years ago when I moved to Bangup a network of people around Asia.” kok,” she explained. “Bangkok now is a very For a small production house based in different place.” Thailand, this was a big milestone and was Raine Grady is a familiar face in Bangthe catalyst for Raine and her team to begin kok’s expat community. If not known by producing regional content. name, she’s recognised as an influential A few years later Capital TV began proforce in foreign media and known for being ducing Travel Asia and Beyond with Star crazy enough to introduce English speaking World, a show that would go on to become TV to Thailand. one of the longest running travel shows in More often than not, she also used to Asia and suddenly put Capital TV producstick out as the sole female attendee at tions in front of a huge audience in over 50 Chamber networking events. countries. Thankfully times have “That [TV show] really changed and the gender put us on the map in terms In the early days people said balance has evened out of being producers of lifestyle somewhat, however Raine and travel related content,” we were mad, because there with her bold sense of Raine explained, as her wasn’t such a huge demand style and broad Australian team tapped into the excite[for English TV in Thailand] accent is still easy to pick. ment and buzz that was happening around Asia at the Raine is the Founder time. These were defining moments for and Executive Producer of Capital TeleviRaine, confirming the need for local English sion, a production house that produces lolanguage production in Asia and validating cal English language content across South her move from Australia to Thailand. East Asia. Based in Thailand, Capital TV also owns over 60 hours of airtime locally “In the early days people said we were per week on which they air their own shows mad, because there wasn’t such a huge dethat focus predominantly on travel and the mand,” she confessed. A little over 20 years expat market such as Destination Thailand. ago, Raine visited Thailand on a holiday. With over 25 years experience in televiShe was working as a journalist for Aussion production in both Australia and Thaitralia’s Channel 9 network and met John land, Raine has seen and is experiencing Everingham the celebrated photojournalist the changes that are happening in the conwho mentioned to her that no-one was prosumption and production of media. ducing English language television in Thailand at that time. She’s built a successful, foreign owned business in Thailand and has dealt with the This intrigued Raine and it didn't take trials and challenges this has brought over her long to hand in her resignation at Chanthe years. In our interview with her, Raine nel 9 and move to Bangkok for a year to ex-
plore television production in Thailand. “My news director thought I was a lunatic and my family thought I was crazy,” Raine explained with a laugh, however she felt that she was young and the time was right. 22 years later, she owns a successful production house and a library of travel content spanning regionally across Asia. However times are changing and the world of media and television is not what it used to be. The consumption and consequently the production of media is evolving as people watch and engage with media by different means. Raine is the first to acknowledge this and talked about the shift away from traditional TV, “Originally we used to call ourselves Television Producers, now we call ourselves Content Producers.” Television is no longer the primary provider of news and media. “My own kids are evidence of this,” explained Raine. “They don’t watch TV but they watch a lot of content. You have to evolve for that. And I think that makes it very interesting for me because I started in country television which was grassroots TV so you were very focused and niche in what you produced for a very specific audience.” “Then things moved away to be very networked and you were producing for mass markets and it was very hard when you were in networks to reach a small niche. So now with the internet, with mobile broadcasts, with pay per view, with all these different means to watch, people can cherry pick and you can target a very small niche. That makes it very interesting, you have to be a little more creative and experimental.” “We all have to evolve because our world is changing in television. But the demand for good content will always be there. 70% of all internet traffic as of next year is going to be video, so the demand is very high.”
With Asian countries being some of the highest mobile content consumers in the world, creating content for mobile devices will also be a high priority. Just with any entrepreneurial business venture, setting up a new media production company in a foreign country has its challenges. Raine explains how Capital TV avoids controversial subject areas such as politics to mitigate the potential for censorship, an issue that news media channels struggle with. A challenge that Raine often comes up against is with communication and language. She tells how the English language still is, and always has been a challenge. Finding staff that have a high enough level of English is hard and there is a need for Thailand to really focus on developing its output of English speaking graduates and high quality education programs as the AEC open labour market rolls out. Being a foreign media production company also means you have to “jump through a few extra hoops” to have access to be able to film certain things, Raine adds. In these circumstances it all comes down to who you know and your contacts which is why it is so important to nurture the networks you have. Other than that, Raine stresses the need to always be mindful that although she lives in Thailand, she is not Thai and everything
that she produces needs to be wellThat perhaps is the biggest strength one can bring to any career. Exciting times lay researched, respectful and even-handed. ahead for production companies and alt“I've been here a long time, I know a lot hough Raine jokes about early retirement, of people and know the way things work,” she’s committed to developing ties with partRaine smiled, answering a question on what ners to move into the mobile environment strengths she has brought to the industry. in the next few years. Being an expat and having lived and worked in She’s also looking forSo now with the internet, with Thailand for over 20 years, ward to nurturing her creamobile broadcasts, with pay Raine feels as though she’s tive roots and getting into per view, with all these seen it all. Changes of govshort film production. ernment, development of inShe craves the freedom and different means to watch, frastructure and different creativity that working for people can cherry pick and you people in positions of power clients and advertisers does have taught Raine to be panot always afford, though tient, resilient and importantly have a good she feels lucky to be making money from dosense of humour. ing what she loves. She is very mindful of what is happening She concludes: “I’m still excited about in the media industry and adapts quickly to what we’re doing and where we’re going. new trends. “What tests your mettle in meThat’s the most important thing because if dia is not when everything goes right it's you lose that enthusiasm you may as well go when everything goes wrong and how you and do something else, because our industry deal with it,” Raine explains. is about passion.” It’s evident that she still loves her work. Nicola Jones-Crossley
F
aisal Malik is the self-described artistcraftsman-designer at Faisal Malik Design, which specialises in wood art. Canadian national Faisal describes his work and business to us. Can you describe your business to us? What made you decide to be a wood artisan? I create functional art which unite wood’s innate beauty and history with modern elements. I could see that Thai history and architecture was being lost to make way for European style modern developments. Old Thai homes, temples, boats and bridges are being destroyed daily. As one of Buddhism principals is of rebirth, foremost for me is to preserve the spirit found within the tree and the history of the original source. I have always loved nature and trees since a child. From growing up in my mother’s flower shop, fly fishing in the Canadian valleys and climbing trees. Being a wood artisan is a natural progression and combines my passion of nature, history and creativity.
What is the most challenging part of your business? There is the artistic and creative side which I enjoy immensely yet to succeed also means having to effectively manage and develop other vital aspects. From meeting clients, preparing proposals, accounting, research and development, sales and marketing. What is the most rewarding? There are two aspects which I find rewarding. Knowing that the pieces I make will
live on for generations and hopefully bring a sense of happiness and pride to the new owners. Secondly is the actual creative process; searching across the country for antique wood, experimenting with new techniques and materials and bringing out the natural beauty within the timber. What were doing with your life and career before? I was working as an operations manager for International NGOs and as the managing director of Camillian Home, a charitable institution in Bangkok for disadvantaged Thai children living with disabilities and serious illness. Any advice for people who want to set up and go it alone? Be completely focused and obsessed towards your work and your vision. Believe that you can create and achieve anything in this world and through hard work and dedication you will. Never stop learning and experimenting. Be inspired. Surround yourself with a network of kind and honest people who are also passionate and successful within their own respective fields.
D
arren Moore is the MD of Firecreek, a specialist web and mobile applications development company. The UK national now has seven fulltime staff. Can you describe your business to us? What made you decide to be an app developer? Firecreek evolved from being my personal company in the UK to a web and mobile app development company in Bangkok with a team of inhouse Thai programmers. We focus exclusively on web and internet technologies. What made us go into app development was the market demand. The systems we make start from been accessible in a web browser and inevitably end up being supported on mobile devices. Mobile apps have a different challenge than web apps so it's an exciting area with new technologies to learn. What is the most challenging part of your business? Dealing with customer expectations is probably going to be quite common for a lot of managers and business owners. Programming is a slow and sometimes laborious job. If you're trying to explain to a customer why the new feature took four days instead of their estimated one day then stop because you'll never win and you'll waste more time explaining than doing. Having good customers is important but your customers need to respect your knowledge and trust you. Daily email updates and using online tools such as Trello really help managing customer expectations. What is the most rewarding? It's the end of the week and the team have moved all the post it notes from "To Do" to the "Done" column. Having a real visual representation of the work done by the team gives a good sense of achievement for everyone. Another rewarding feeling is when my team go that extra step to do something better than we originally outlined. Over the years of trying to become a better manager I have found different ways
of working with different staff and working with the Thai culture. If you give them the right environment they'll surprise you with some great ideas. What were doing with your life and career before? I decided my career path at quite an early age. I was always playing with computers and decided that's what I enjoyed the most. I left high school and became a full time programmer. When I felt like I had the necessary experience I decided to go freelance. Freelance is great but it can be a drain working daily by yourself so I went backpacking and I ended up in Thailand. Any advice for people who want to set up and go it alone? Get the money flowing in and learn how to do a profit and loss spreadsheet. Worry about money but not to the point where it stresses you out —your focus should be constantly on the customers and your employees. In this industry I recommend others to stick to a few popular technologies and become specialists in them. As a SME it’s impossible to provide a high quality service if you’re trying to do everything.
S
akai Naismith is an Australian who has stamped out a niche with Discover Elsewhere, which holds eclectic tours, often to unusual and dangerous places. Can you describe your business to us? What made you decide to be a tour specialist with a difference? We organise customised tours to places that no one else goes. I believe that travel has the power to create real, tangible, positive change. Mark Twain said, 'Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts.' The main difference that between Discover Elsewhere and other travel companies is that we listen to our customers and thus are able to engage with them in a way that holds their interest. An example might be the images of Buddha: Some appear more feminine than others across South East Asia. Most guides would not be aware of the reason behind this... our guides understand that the image of Buddha became more feminine during times of war. What is the most challenging part of your business? As the sole employee, my biggest challenge is being on the road with clients and dealing with new enquiries at the same time. Although I do have other guides, they are freelance and also work for other companies. The other main difficulty is that I am best at the operational aspect of running a tour company, I am not great at marketing... Although I am learning more about this, I have found that the best form of marketing for Discover Elsewhere, is word of mouth. What is the most rewarding? The most rewarding aspect is the loyalty that I have from some of my customers. I have had the privilege of a client from 10 years ago get in touch and request that I design a tour for 3 generations of her family. The feedback that we get from our clients is extremely flattering. We have never received
Â
negative feedback to this day.... and will strive to ensure that we never do. If you want to have a look at some of our past clients feedback, check the website: www.discoverelsewhere.com/testimonials. What were doing with your life/career before? I left a promising career as a lawyer to join a circus, after which I jumped between a few different professions before landing in the travel industry. For me, the travel industry was the glass slipper that fit perfectly. I am fascinated by the various cultures in the world and it seems as though people appreciate the ways in which I connect to different places as a traveller. Any advice for people who want to set up and go it alone? Know your industry. It is not enough to have a vague knowledge of what you are doing.... you need to have an vast and intimate knowledge. Nothing can replace this.
ANDREW BATT is best known in Thailand as one of Asia’s top property writers and commentators most recently as group editor of Thailand Property magazine. He also has a reputation as Thailand’s English-language media guru via his blog, Bangkok Bugle. Now he has jumped to the other side of the fence as the new GM for AsiaRents, a start-up aiming to replicate European standards of service in the rental market. He brings us up to date… MY NEW JOB is General Manager for AsiaRents. We focus solely on the rental market in Bangkok. Jamie Nettleship, the founder and CEO, has a goal to change the way people rent property in Bangkok. You could say by hiring a 25+ year veteran media professional is one way he’s doing exactly that. I can say without doubt there are no other media professionals with such extensive property journalism experience working
in this side of the Bangkok real estate sector. ONE THING that already makes AsiaRents stand out from the competition is its branded vehicles. Agents use them to collect clients for viewings, and they come complete with cold water and iPads showing the selected properties for viewing. Someone also goes ahead to ensure the property is open, clean, the air-conditioning is on and the coffee is brewing. THE DOMINANT TREND in terms of sales has to be luxury in central Bangkok. Why? Purely it’s down to lack of space, so any developments happening within, say, five miles of Siam BTS will be at the superluxury end of the market. Even projects launching close to the mass-transit network are attracting good sales levels and decent prices. IN TERMS OF RENTALS in general we’re seeing more expatriates looking further away from what we would call the traditional locations such as Asoke, Nana and Thonglor. Yes, they are still looking here but perhaps in fewer numbers. More seem to be looking at places like On Nut where THB 20,000 per month will get you a decent, new property in close proximity to the BTS network. The Thonburi side of the river is also attracting some interest. PRICES OF NEW PROPERTIES in Bangkok have risen pretty much every year since the Asian Financial Crisis but some people looking to rent are still expecting to get something in the centre of the city for THB 10,000 per month. That’s just not possible. New property prices have risen and rental prices have too, but getting that message across is one of the things we, and other agents, need to do. FOR RENTALS IN BANGKOK, I would say try to visit as many properties as you can but narrow down both a location and price band from the start. Go at different times of the day. Go during the week and at weekends and get a true feel for where you will be
staying. Most rental agencies will want tenants to sign a one-year agreement so you don’t want to be stuck somewhere awful. I THINK, again, that is what makes AsiaRents different. We sell rentals, yes, but we also advise and you can get a truly balanced opinion from a company with more than 50 years of combined experience. I WILL ALWAYS BE A JOURNALIST, but this is a change of direction in a lot of ways, but that said I am putting all my industry knowledge and experience to great use, I am still writing and blogging about property for AsiaRents, and helping to create compelling listings for some outstanding rental properties. IN TERMS OF WORKING around Southeast Asia, the most important thing I have learned as a journalist is to do your due diligence. I’ve had run-ins with PR companies and developers where I know what they’re trying to say is not true. For buyers and investors buying anywhere in the world they should always seek independent legal advice and be entirely sure they know what they are signing. MY ‘MEDIA GURU’ tag all started from my blog – The Bangkok Bugle – although I have to say it’s not a top priority now. The media scene here is a long way behind other parts of the world, and print is still the preferred choice for many advertisers, despite the ability to know (and change) instantly any online campaigns.
ONLINE WILL CONTINUE to grow but the major problem is that people expect to read validated and professional content for free. It will take a long time for most publishing companies in Thailand to generate enough revenue purely online to be able to employ the best journalists to generate the best content. ENGLISH IS STILL A ‘NICHE’ language in terms of the media, but with the advent of AEC it will grow as more Thais discover the need to have better English skills or risk missing out on investment to other countries, such as the Philippines or Singapore.
COMMENTARY
Recruitment trends and challenges in TH
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he biggest task of an HR business is the business of finding the right people. The challenges this imposes upon HR and internal recruitment teams are seemingly never ending. Attrition rates in South East Asia, and in particular, Thailand remain unnervingly high. Only the promise of consistent pay increases and greater bonuses seem to counter balance the constant issue of staff attrition. Having worked across projects in over 30 countries I can say there is a consistency in the inconsistency that most companies display in trying to find the right people. What appeals? What makes the person right? This changes by the border. The fact is there is little or no consistency, attrition is generally driven by a need to earn more and simply survive, the ratios are often small but the impacts to businesses as a whole can be substantially damaging. HIRING KEY TO HR Hiring was always seen as a smaller part of the role within HR, not anymore, workforces are presenting challenges never before experienced, globalisation, inflation, cost of living, benefits, travel, larger families, broader social issues, politics, the list is endless but all impact massively on the day to day operations of HR operations. Business today demands sleek pro active sharp operators to find cost savings and yet the cost of recruiting gets higher, year on year high street recruiters get record profits from escalating fees and more placements‌..often replacements. The fact is it’s costly and time consuming and most people within HR prefer to leave it to somebody
else. Now that’s fine but that does not help the bottom line. From what the geopoliticians and economists are telling us, times are going to get tougher, and indeed there has been a colossal downturn in direct investment into Thailand from major players such as Japan. I am not sure if this signals the end of an era or is a reflection of the global economy for now, but there is one thing for sure, the employment market is still very buoyant. Latest statistics tell us that less then one percent of the employable workforce is indeed unemployed, as such we are in a cycle of recycling human capital. HOW TO RETAIN BEYOND A YEAR So how do businesses today meet the demands of employees and more importantly retain their services for more than the mandatory one year, take a bonus then run typi-
cal candidate? There is no quick fix, however business can be more aware of their competition, benefits expectations, environment, bonus and appraisal, leave entitlement and so on, are businesses proactively researching the market to get a better understanding of these principles? Are businesses making recruiters work for their money and demanding this market data? Is the average HR function taking the issue of attrition seriously enough? Are they listening? With over 30 years experience in the business of manpower my honest thoughts are no to all of the above, the recruitment industry is not contracting its actually growing, I for one believed it would be in full scale reverse by now, but its quite the opposite. Markets are ripe for the people with the right skills. In Thailand the key areas for now and the future continue to in and around, Engineering, Infrastructure, Finance & Accounts, Senior Management, Rail-all skills, Construction & Project Management, Pharmaceuticals, Automotive, Electronics & hospitality. Outside of these sectors farming and tourism make up the remaining GDP for Thailand. The coming years may well be challenging for Thailand, but we have high hopes for the ASEAN community impact, perhaps greater localised investment, perhaps a leaking workforce as new opportunities are clearly identified across local borders, either way the challenge will not fade. Damien A Lee CEO & Founder of Scooppeople.Asia Damien is a seasoned veteran of the manpower industry and can boast a 30-year career spanning across 31 countries and 5 continents. He has specialized in substantial recruitment campaigns – (RPO) for some of the world’s largest blue chips, covering multiple sectors, especially in O&G, Construction, Infrastructure. Damien is now spearheading a business that will offer the best technology solution to all HR departments who need to hire, a product that is a fraction of the cost of manpower agencies and regular cv search engines.
BANGKOK BUSINESS BRIEFING circulates over 10,000 copies each issue to: 1)
Active, qualified members of the American Australian British Canadian Danish Finnish German Japanese Korean Malaysian New Zealand Singaporean, and Thai-Chinese business communities of Bangkok
2) Business lounges of major hotels in Silom, Sulhumvit and the Chao Praya 3) Entertainment venues where foreign businesspeople meet 4) Our paid subscriber list And for those not seeing a print copy, digital versions are available and promoted online. There is no better way to reach Bangkok’s English-language business community than through our targeted circulation. Print is the best way to cut through the online clutter. And BBB is the best way to reach your target market. Contact Yamong Cools at yamongcools@gmail.com For a media kit and our printer & mailer statement
THAILAND ECONOMIC & SOCIAL INDICATORS: LATEST QUARTER
4th QUARTER 2015 Table 1 Gross Domestic Product at Current Prices
Unit: Millions of Baht 2014p
2015p1
2014p
2015p1
Private Final Consumption Expenditure
6,922,620
6,974,351 1,663,574 1,776,176
General Government Final Consumption Expenditure
2,235,428
2,334,149
514,851
555,614
615,036
549,927
530,412
572,944
641,169
589,624
Gross Fixed Capital Formation
3,259,488
3,375,475
798,338
853,399
821,077
786,674
847,186
851,441
796,432
880,416
-98,218
-108,626
48,644
-96,868
-70,118
20,124
36,839
-96,156
-80,929
31,620
Change in Inventories Exports of Goods and Services
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
1,766,437 1,716,433 1,684,203 1,778,695 1,771,020 1,740,433
9,098,713
9,340,694 2,277,026 2,177,053
2,244,574 2,400,060 2,274,024 2,222,267 2,404,587 2,439,816
- Goods
7,299,933
7,265,569
1,808,545
1,809,054
1,826,570
- Services
1,798,780
2,075,125
468,481
367,999
418,004
8,230,125
7,811,706 2,036,408 2,049,858
2,107,269 2,036,590 1,904,440 1,931,691 2,004,817 1,970,758
- Goods
6,501,293
6,073,947
1,604,273
1,617,777
1,674,090
- Services
1,728,832
1,737,759
432,135
432,081
433,179
Imports of Goods and Services
Expenditure Side Statistical Discrepancy Production Side
13,187,906 14,104,337 -55,672
-566,852
13,132,234 13,537,485
3,266,025 3,215,516 42,855
4,738
3,308,880 3,220,254
1,855,764 1,729,690 1,752,145 1,911,365 1,872,369 544,296
544,334
470,122
493,222
1,605,153 1,485,593 1,489,858 1,571,396 1,527,100 431,437
418,847
441,833
433,421
2015p1
Private Final Consumption Expenditure
0.6
General Government Final Consumption Expenditure
443,658
3,269,737 3,436,628 3,468,224 3,397,500 3,527,462 3,711,151 -44,866
-58,399
-66,607
-93,156
-195,822 -211,267
3,224,871 3,378,229 3,401,617 3,304,344 3,331,640 3,499,884
Table 2 Real Gross Domestic Product Growth (YoY) 2014p
567,447
Unit: Percent 2014p
2015p1
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2.1
-2.8
1.0
2.3
1.7
2.5
1.7
1.8
2.5
2.1
2.2
3.5
1.2
-0.2
4.3
0.7
1.0
2.3
4.8
Gross Fixed Capital Formation
-2.4
4.7
-10.5
-4.7
2.7
3.6
10.3
2.6
-2.6
9.4
Exports of Goods and Services
0.2
0.1
0.1
-0.7
-3.2
4.5
1.2
1.5
1.7
-3.5
- Goods
0.7
-3.4
0.5
1.3
-1.6
2.6
-2.5
-3.9
-1.8
-5.6
- Services
-1.6
14.6
-1.7
-8.6
-9.2
11.2
15.4
27.3
16.5
3.8
-5.3
-0.4
-10.5
-8.6
0.1
-0.8
2.3
0.2
-2.6
-1.3
- Goods
-6.9
-0.6
-13.7
-11.7
-0.5
-0.7
3.9
-0.4
-3.3
-2.3
- Services
1.1
0.4
3.0
0.9
2.3
-1.8
-3.2
2.3
0.1
2.7
0.8
2.8
-0.5
0.8
0.9
2.1
3.0
2.7
2.9
2.8
Imports of Goods and Services
Gross Domestic Product (GDP)
31
4th QUARTER 2015 Table 3 Real Gross Domestic Product Growth on Production Side (YoY) 2014p
2015p1
0.7
Agriculture, Hunting and Forestry Fishing
Unit: Percent 2014p
2015p1
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
-4.2
0.9
4.8
0.2
-1.7
-4.6
-4.1
-5.5
-3.4
0.9
-4.8
1.1
5.9
1.1
-2.4
-5.3
-4.2
-5.5
-4.4
-2.0
2.1
-2.2
-8.2
-11.5
7.8
2.2
-1.5
-3.1
6.5
0.8
3.6
-0.7
0.4
1.0
2.8
3.9
3.2
3.2
4.2
Mining and Quarrying
-1.6
1.2
-3.1
-1.6
-1.0
-0.7
0.1
-1.4
2.4
3.7
Manufacturing
-0.2
0.9
-2.2
-0.2
0.3
1.3
2.2
-0.2
1.0
0.8
Electricity, Gas and Water Supply
2.7
4.0
-4.9
4.5
4.2
8.5
3.7
2.8
4.8
5.0
Construction
-3.7
15.8
-9.9
-3.6
-3.3
3.5
19.6
12.5
9.4
23.9
Wholesale and retail trade; repair of motor
-0.5
4.3
-2.4
-1.5
0.3
2.0
4.1
3.7
4.1
5.5
Hotels and Restaurants
2.4
14.0
1.1
-1.2
-0.3
9.2
18.0
22.1
12.7
5.0
Transport, Storage and Communications
3.4
7.4
1.9
3.2
3.3
5.1
8.1
9.7
6.7
5.3
Financial Intermediation
6.8
7.2
6.4
6.8
7.2
6.8
8.0
7.7
5.9
7.5
Real Estate, Renting and Business Activities
0.5
4.1
-0.6
-0.4
-0.3
3.3
4.5
2.2
3.1
6.6
Public Administration and Defence;
1.3
-0.8
3.6
1.1
0.0
0.4
-2.8
-1.4
0.0
1.3
Education
0.9
-2.9
3.7
0.4
-0.1
-0.4
-5.8
-4.0
-3.9
2.3
Health and Social Work
2.7
1.9
3.5
1.6
2.1
3.4
-0.8
0.9
3.0
4.2
-0.1
5.7
-0.2
-5.2
-0.4
5.3
2.9
5.4
6.1
8.3
-4.4
-0.6
-7.0
-5.6
-4.6
-0.1
-2.3
-0.9
-0.6
1.5
0.8
2.8
-0.5
0.8
0.9
2.1
3.0
2.7
2.9
2.8
Agriculture
Non-Agriculture
Other Community, Social and Personal Servics Activities Private Households with Employed Persons Gross Domestic Product (GDP)
Table 4. Real Growth Rate on Production Side and Expenditure Side (QoQ Seasonally Adjusted)
Unit: Percent
2014p
2015p1
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Private Final Consumption Expenditure
0.2
2.0
0.5
-0.9
1.0
1.1
0.6
-0.1
General Government Final Consumption Expenditure
0.1
1.6
0.4
2.0
-2.9
1.5
1.7
4.4
Gross Fixed Capital Formation
0.9
3.3
3.9
-4.3
7.2
-3.7
-1.3
7.5
Exports of Goods and Services
-0.1
-0.8
-0.5
5.5
-2.7
-0.6
-0.3
-0.3
Imports of Goods and Services
-3.7
0.3
4.2
-1.6
-0.5
-1.2
0.3
0.2
Agriculture
0.6
0.4
-2.7
0.8
-2.5
0.8
-3.9
3.4
Manufacturing
-1.4
1.5
0.8
0.1
0.0
-0.8
1.3
0.2
-1.0
0.2
1.3
1.2
1.3
0.1
1.5
2.4
Financial Intermediation
0.7
2.0
2.3
1.6
1.9
1.6
0.7
2.9
Gross Domestic Product (GDP)
-0.6
0.7
0.9
0.9
0.5
0.4
1.0
0.8
Gross Domestic Expenditure
Gross Domestic Product
Wholesale and retail trade; repair of motor
32
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