Update Q1/2015

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INFORMATION TECHNOLOGY Thai ICT market shows solid growth with move towards digital economy

Thailand’s New BOI Promotion Policy: Enabling Prosperity

GTCC Ordinary General Meeting, 2015

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DEAR READERS In 2014, the GTCC team proudly witnessed close to 90 events and activities that we had successfully organised. Our significant achievements included the introduction of new member activities, the launch of a new website, a business luncheon featuring panelists from leading German DAX companies, various German business delegation trips to Thailand, support for Thai industries at leading German trade fairs, the signing by the German-Thai Dual Excellence Education project of key Memoranda of Understanding with strategic partners such as the Federation of Thai Industries, and the celebration of our 550+ membership achievement at the year-end.

This year, we are continuing to bring high-value business events to our business community. This has included the presentation on the new policy of the Board of Investment (BOI), with the objective of ensuring that our members are adequately well-informed to enable them to adapt to any changes in the investment policy, plus other Breakfast Talks and technical seminars. Most importantly, GTCC’s Ordinary General Meeting 2015 recently took place, resulting in the successful election of our new Board of Directors, President and Vice-President.

Moving on to the focus of this issue of Update, we take a close look at “Information Technology”. As the international business community has been turning their attention to the Royal Thai Government’s policy on a digital economy, we asked experts and relevant business operators to give an overview on what the digital economy entails and the technologies that surround this concept. In this connection, we were fortunate to have an exclusive interview with Ms. Ajarin Pattanapanchai, former BOI Deputy SecretaryGeneral and currently a Senior Executive Investment Advisor to BOI, who highlighted how BOI investment policy supports the digital economy initiative.

In this quarter, our German-Thai Dual Excellence Education project team has been engaged in a series of recruitment and admission sessions for new students and colleges to join GTDEE. Moreover, we had an important visit by a delegation from the Federal Ministry of Education and Research to review the project. During the visit, we had an opportunity to hold a personal interview with the delegation leader Mr. Volker Rieke, Deputy Head and Acting Director-General of Directorate-General 2, European and International Co-operation in Education and Research, in order to learn his views on the future direction of the project.

Last but not least, now that the first quarter of this year has been successfully completed, it is full steam ahead for our event team to ensure an extravaganza and memorable GTCC Gala Night for members and friends of the German-Thai business community On 29 May. We look forward to welcoming you on this evening of entertainment and dining experience!

Best regards,

Jörg Buck Executive Director

Update is published quarterly by the German-Thai Chamber of Commerce and distributed free of charge to members and qualified non-members in Thailand and abroad.

Subscription is also available at an annual rate of US$75 (airmail). Payment can be made in cash or by cheque to the German-Thai Chamber of Commerce, Empire Tower, 195 South Sathorn Rd., Bangkok 10120, Thailand. Tel.: (+66) 02-670-0600. Fax: (+66) 02-670-0601. E-mail address: info@gtcc.org.

Any opinions expressed in articles in this magazine do not necessarily reflect the views of the Chamber.

Update welcomes story and photo contributions from members and non-members alike. Articles may be reproduced with acknowledgement, except for those taken from other sources.

Circulation per issue : 2,000

Publisher/Editor-in-Chief: Jörg Buck Editor & Communications Director: Ratanaporn Bistuer Editorial Assistant: Pimwipa Vatanutanon Advertising Director: Pimtip Faktorngpan Design & Layout: Sorapol Liengboonlertchai Sub-Editor: Tony Oliver

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Greater Mekong Subregion: Growing together CONTENTS

10

Thailand’s technology entrepreneurship scene

24 ‘BOI investment policy supports move towards digital economy’

35 Understanding Myanmar: Intercultural Training Course, business meetings

42 GTDEE Exclusive Interview

52 Green Week Berlin

INFORMATION TECHNOLOGY

GTDEE INSIGHT

09 SAP sees strong ICT opportunities in Indochina

40 Knipex donates tool cases for GTDEE apprentices 41 Federal Ministry of Education and Research

and South-East Asia

14 ‘Internet of Things’ and more...

20 Cloud computing and its benefits for small and medium-sized enterprises

BUSINESS BRIEFS 30 Henkel ambassadors educate children on sustainability

CHAMBER ACTIVITIES 36 Presentation on new BOI investment policy 37 Ice Breaker Networking: GTCC-FTCC-TICC ‘Lifestyle Night’

38 Technical seminar for leading German company, GEISS AG

38 Exclusive Breakfast talk with ThyssenKrupp AG

delegation visits GTDEE project

MEMBER’S CORNER 44 Member2Member privileges 51 New Member Orientation Programme, No. 3

TRADE FAIRS 52 54 55 56

Green Week Berlin 2015 INTERSCHUTZ 2015 iba 2015 AUTOMOTIVE ENGINEERING EXPO

06 INFORMATION TECHNOLOGY

THAI ICT MARKET SHOWS SOLID GROWTH WITH MOVE TOWARDS DIGITAL ECONOMY

Mobile broadband network acting as motor of growth Contributed by Waldemar Duscha, Germany Trade & Invest Thailand’s ICT market is likely to grow even more dynamically in the foreseeable future. The main growth impulses will come from the mobile broadband network, with the upcoming 4G auction as the most important driver as well as the technological prerequisite for the development of the digital economy. The IT branch is profiting from the cyber-boom with strong impulses from “cloud” computing, business applications and big data. As such, the competition in the industry is getting tougher and many players are therefore focusing on regional integration.

Information and communication technology (ICT) is playing a key role in the Kingdom of Thailand in helping the country move beyond the so-called “middle income trap” into a modern knowledge and technology-based economy. The private sector unanimously welcomes the “digital economy” proposed by the Government of Thai and Internet-based technology as a milestone on the path to greater productivity and economic development in the global context. The aim of the initiative on the digital economy is to increase greater inclusive access to the Internet for all Thais as well as encourage the deployment of advanced information technology in suppor t of business operations.

The focus of the digital economy is not only on telecommunications and IT, but also on other four business areas – digital content, digital marketing, e-commerce and broadcasting. The Board of Trade of Thailand has estimated that these six groups generated a combined

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market capitalisation of Baht 1.2 trillion in 2013 (approximately Euro 32 billion euros; Euro 1 = Baht 37) or 10 per cent of the gross domestic product.

ROLE OF MOBILE SERVICES VERY IMPORTANT The International Data Corporation (IDC) has projected telecom services spending in Thailand to grow by 14.5 per cent to US$ 11.2 billion in 2015. Mobile services, at US$ 8.7 billion, are expected to make up a significant share. The remaining US$ 2.5 billion would be generated by fixed-line telephony and broadband services.

In the local mobile market, mobile data services are expected to play a significant role. Revenue from mobile data services increased by 29.6 per cent to US$ 3.7 billion in 2015, due to the exponential growth of social networks. In the total mobile phone market of 30 million units, the smartphone market is expected to grow by 17 per cent to 19 million units.

INFORMATION TECHNOLOGY 07

The intensity of competition for market share is expected to increase in 2015, resulting from the expansion of network coverage and the extension of services being offered. The auction of the 4G-2.1GHz broadband services, which is expected to be held in September 2015 by the National Broadcasting and Telecommunications Commission (NBTC), promises to provide a huge boost to the economy. The 4G LTEtechnology is many times faster than 3G, for which Thailand already is Asia-Pacific's thirdlargest subscriber base, behind only Australia and Singapore.

The transformation of the “digital economy” will come under the scrutiny of a new committee chaired by the Prime Minister.

This committee should also establish a new “Ministry of Digital Economy and Society”, by consolidating existing state agencies and enterprises. The action plan consists of six pillars: infrastructure (i.e., hardware, software, service) as well as three digital components for the economy, society and knowledge. The implementation of the ambitious concept will be costly. The Thai Federation of ICT Technology Association (TFIT) has calculated investment costs of around Baht 200 billion for infrastructure and human resources development.

(DTAC) and True Move. AIS is the market leader, with a 46 per cent subscriber market share, followed by DTAC with 29 per cent and True Move with 25 per cent. AIS has announced plans to invest approximately Baht 60 billion baht in the first stage of its 4G project in 2015, while for DTAC and AIS it will be Baht 10 million and Baht 43 billion, respectively.

True Move – the front-runner in commercial 4G services – plans to double the number of its 4G subscribers from 900,000 to almost 2 million in 2015, thus enabling it to increase revenue from the service business by 10-15 per cent.

LEADER IN TERMS OF INTERNET USE The International Telecommunication Union (ITU) concluded in its “Information Society Report 2014” that Thailand had made significant progress. For example, in terms of the Internet, the report noted that in Asia, Thailand stands out with almost 100 per cent school connectivity. In this regard, government policies such as SchoolNet and EdNet programs, or the more recent One Tablet per Child project contributed significantly to increasing Internet access in schools.

In 2013, Thailand’s ICT Development Index moved up 10 places to eighty-first out of a total 166 countries. More remarkable improvement was registered in the usage ranking, where Thailand now stands at 71, up from its previous ranking at 105.

Of the total Thai population of 68 million, mobile phone penetration has clearly increased, now numbering 105 million subscribers – of which 75 per cent are in the 3G spectrum.

Smartphone penetration of the total population represents a share of around 40 per cent, while approximately 25 per cent of mobile phones are 4G-enabled devices. According to the Digital Advertising Association of Thailand, there are about 35 million Internet users, but more people will rely on their smartphones and tablets to go online.

The state-owned networ k oper ator s Telephone Organisation of Thailand (TOT) and Communications Authority of Thailand (CAT) Telecom have an essential role to play in establishing the fixed infrastructure and constructing a nationwide fibre-optic network, respectively. However, some experts doubt whether Thailand’s companies are ready for the era of hyper-connectivity and give as the reasons for their doubts the relatively low Internet penetration, the high costs for new platforms as well as the requirements for security and reliability.

The mobile phone market is dominated by three mobile operators, Advanced Info Service (AIS), Total Access Communication

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08 INFORMATION TECHNOLOGY

In Thailand, Facebook is in the lead with 30 million subscribers. In relation to the size of the population, Thailand would have the world's third-largest number of Facebook users. Thai viewers of YouTube with 27 million subscribers ranked second in Asia-Pacific, and the chat app LINE has an estimated 33 million users.

NEW IMPETUS IN THE IT MARKET After years of extremely poor economic performance as a result of political instability, the IT segment is also expected to get a breath of fresh air against the background of 4G technology and the digital economy. In 2014, the sales of personal computers (PCs) fell by 17 per cent to 2.5 million units, but IDC forecasts a sales growth of 10.6 per cent to US$ 13.4 billion units for 2015. Rivalry is tending to intensify and, in the near future, can be expected to increasingly take place in innovative solutions and higher value services in view of the declining margins in the hardware business.

Larger growth impulses in this area will, in particular, come from cloud computing services, big data and business applications. Data storage is becoming an impor tant segment. Major players in the storage industry such as the American firm Seagate offer cloud systems and solutions to large enterprises, original equipment manufacturers, small and medium-sized enterprises (SMEs) and other organisations.

Thailand’s Board of Investment has added the establishment of data centres to its list of activities eligible for investment incentives. Three companies – TCCC Technology (Thailand), Digital Port Asia (Japan) and SuperNAP International (United States of America) – acquired

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privileged status with a total investment of more than Baht 10 billion at the end of 2014. This is fully in line with the political efforts to strengthen Thailand’s position as an ICT hub for the forthcoming Association of Southeast Asian Nations Economic Community.

IDC projects a growth rate for the cloud-based service market in Thailand of 29 per cent to US$ 30 million in 2015. Software as a Service (SaaS) is regarded as the most dominant segment in cloud computing and mobile applications. In public administration, there are already more than 100 government organisations using the SaaS cloud services of the Electronic Government Agency. The significance of the hybrid clouds (a combination of private and public clouds) is also expected to increase in the telecommunication, financial, production and education sectors in the future. VMware, the California-based cloud and vir tualisation software firm, says that Thailand accounts for the second-largest share of revenue for VMware in ASEAN, after Singapore.

In the PC market, the Chinese company Lenovo hopes to be number one in the market with at least 20 per cent of market share in 2015.

For this purpose, Lenovo has increased its investment budget by 60 per cent. In addition to SMEs and private consumers, Lenovo will be more aggressive in corporate marketing with System X servers and PCs. The market leader in the PC segment was Acer Computer of Taiwan with a 25 per cent market share in 2014. Acer has positioned Thailand as an operations centre for Indochina and expects its revenue in Indochina to grow by 20 per cent in 2015, up from 10 per cent in 2014.

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SAP SEES STRONG ICT OPPORTUNITIES IN INDOCHINA AND SOUTH-EAST ASIA Contributed by SAP Systems, Applications and Products in Data Processing (Thailand) Ltd.

GTCC: The Government of Thailand is determined to transform Thailand into a digital economy. From your point of view, what are the key factors in successfully achieving this goal?

Mr. Sierra: The Government has acknowledged the importance of a digital world in moving the economy forward. They have come up with a number of pillars with a focus on soft and hard infrastructure.

In addition, however, it is necessary to be able to provide services over that infrastructure, such as public services, education or health care. It is also important to provide a framework so that businesses can go digital.

SAP SE, headquartered in Walldorf, Germany, is the world leader in enterprise software and software-related services, with locations in more than 130 countries. The company’s main focus is the development of software for handling all business processes of a company such as accounting, controlling, sales, purchasing, production, warehousing and human resources. At the end of 2014, the company completed a major acquisition of Concur Technology, a provider of business travel and expense management services.

SAP Systems, Applications and Products in Data Processing (Thailand) Ltd. joined the German-Thai Chamber of Commerce (GTCC) in 2013 and the Chamber recently had the privilege of meeting Mr. Liher Urbizu Sierra, Managing Director, to gain further insights to, and his views on the business.

GTCC: What opportunities does the Asian market offer SAP? Mr. Sierra: First of all, the whole Indochina and South-East Asian region is a growing business area and has a rising market. Therefore the requirements are changing and if companies want to compete on a regional or global scale they need international rules and standards. Many of the large number of small and medium-sized enterprises in particular have the potential to go international, which gives SAP many options in the market.

GTCC: Last year your company acquired Concur Technology. What are the prospects for Thailand to benefit from this acquisition?

Mr. Sierra: Concur is the perfect extension for SAP. The travel and tourism industry is a big business for us and for Thailand as well.

Concur brings a productivity tool that adds value to customers, gives clients more choices, automation and more efficiency. This helps people to improve their lives.

GTCC: The upcoming ASEAN Economic Community (AEC) this year, which is aimed at establishing a common market between the ASEAN members, essentially entails ”connectivity” as its core.

What would be the role of information and communications technology (ICT) in this regard?

Mr. Sierra: I think borders between companies are becoming more and more blurred. Businesses operate across boundaries, as you can see extensively in Thailand. AEC is aimed at increasing economic growth in the region by leveraging those interactions between different countries. Therefore, ICT should give added value to customers, so that companies can remain competitive.

GTCC: ITC is a highly innovative field of industry. Do you see any important developments in research and development (R&D) in this field in Thailand? Also, what role is played by intellectual property rights (IPR) in this area?

Mr. Sierra: Thai companies are moving into R&D to improve their markets. IPR is the core obstacle. The country has to have a legal framework that allows Thai companies to conduct business and introduce their innovations. Currently, there is a framework for IPR; however, a great deal of work remains to be done on this aspect.

The world of information technology is very dynamic and it is obvious that existing laws need to be updated in order to move apace with the new digital world.

GTCC: What do you plan for 2015 in this particularly market?

Mr. Sierra: Our investment in the “Cloud” is definitely paying off. It is our customers who access the value of our Cloud products because it adds value to their businesses. Our growth since 2014 has been very high. However, this is no coincidence; it is, in fact, the outcome of what we have done in the past few years. Therefore, in 2015 we plan to build on that foundation.

http://thailand.ahk.de

10 INFORMATION TECHNOLOGY

THAILAND’S TECHNOLOGY ENTREPRENEURSHIP SCENE

Contributed by Martin Venzky-Stalling, Independent Advisor, Northern Science Park Thailand would not have been considered as a country with a significant startup scene 5-10 years ago; however, in 2015, the picture has significantly changed. Compared with Taiwan or Singapore, the Thai startup scene is still at an early growth stage, but now one can genuinely talk about a star tup scene and an ever-growing number of technology entrepreneurs.

Obviously, Bangkok is the centre for it, but IT star tup clusters wor th mentioning are also developing in Phuket, Khon Kaen and Chiang Mai. So what has changed? Although recent government policies have focused more on innovation, entrepreneurship and startups, much of the local startup scene has evolved from other roots.

A maturing economy with high diversity, young Thais not interested in corporate careers, an ever-increasing number of events and match-making meetings, foreigners starting businesses in Thailand, a growing flood of digital nomads visiting Thailand, and a market with a high use of smart phones and social media have all boosted the startup scene in Thailand and are creating a new sub-culture favouring entrepreneurship and new technologies.

A specific phenomenon has been the emergence of various kinds of co-working and creative spaces. Probably the two best-known in Bangkok are Hubba and Launchpad. Hubba, as the most active, quickly expanded and began collaborating with other emerging co-working spaces countrywide including Pun Space, a popular co-working space in Chiang Mai, the second largest city in northern Thailand.

While the university business incubators initially had only mixed success, they created a gener al awareness and interest in entrepreneurship among students and the younger generation. Thailand is also in the process of setting up more science parks, which are making incubation and support ser vices to entrepreneur sa pr ior ity.

International IT companies have joined in and companies such as Microsoft, Google and others regularly run or sponsor events to help develop software developer s as well as other technology and tech entrepreneurship-related skills.

One of the handicaps faced by Thai startups and entrepreneurs is the low availability of suitable risk capital/funding, par ticularly early-stage funding. Thailand has only a few venture capitalists, and private or angel investors are comparatively rare. Some corporate players, particularly in the telecoms

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INFORMATION TECHNOLOGY 11

sector, star ted to organise incubation or acce le r ato r pr o gr am m e s t o s u p p o r t technology star tups by providing some funding to selected startups. Some larger deals in 2013 and 2014 have also begun to attract the attention of international investors.

To promote small and medium-sized enterprises (SMEs) and star tups, the Government of Thailand is working on incentive packages that will encourage large companies to work with startups and SMEs by granting them tax incentives if certain criteria are meet. The Thai Board of Investment (BOI) also has an SME promotion programme (for majority Thai-owned SMEs); IT, design and software development are categories eligible for investment promotion — although some of the criteria and the paperwork involved might deter some earlystage startups.

For foreigners, the BOI promotion is still worth considering — the main advantages are not financial incentives but greater flexibility in receiving work permits and the possibility of 100 per cent ownership of a company. Another instrument in the making is a venture capital type of fund for startups and SMEs. What Thailand does not really have are grants for startups and the SMEs supporting them with investment in R&D and innovation.

Although the Office of Small and Medium E n te r pr is e Pr o mo ti on , t h e N a t i o n a l Innovation Agency and the Software Industry Promotion Agency do provide some funds, they are either still quite limited or do not go directly to companies but are allocated via associations.

At a recent seminar organised jointly by the German Embassy in Thailand, the National Science and Technology Policy Office and the German-Thai Chamber of Commerce, two representatives from Germany gave a presentation on the German SME Innovation Grant (ZIM). Although Thailand has nothing comparable yet, some funds are beginning to

flow into the Thai startup scene from local telecoms operators and, more significantly, from overseas including the United States, Singapore and Japan.

An increasing number of regular events are also providing greater visibility and access to potential investors and funding sources. Thailand has hosted several Startup Weekends, while Barcamps are proving to be hugely popular. In addition, other events such as Echelon Thailand, (a local spin-off from a large regional tech event from Singapore), Global Entrepreneurship Week, CNXP in Chiang Mai (inspired by Austin’s SXWS) and some of the largest regional TEDx events are being regularly organised, particularly in Bangkok and Chiang Mai. While the general business environment for startups and SMEs in Thailand remains more challenging than that in some of Thailand’s neighbouring countries, the momentum is increasing.

Take Chiang Mai, for example. Often associated more with the hill tribes, temples, a distinct culture, crafts and good coffee, the northern city has developed into one of the most popular places in the world for digital nomads.

Chiang Mai also features the second-largest IT, software and digital content cluster in Thailand.

Key drivers for this success have been the popularity of the city among foreign technology entrepreneurs who have established businesses in Chiang Mai as well as the huge number of students (a total of 100,000 from seven universities) and a great working environment.

As a result, Chiang Mai now has several co-working spaces in addition to the above-mentioned Pun Space, and more are planned. There has also been specialisation – Chiang Mai University’s College of Art, Media and Technology is providing incubation facilities for students, the Northern Science Park offers a range of services to develop startups and the Thailand Software Promotion Agenda has a branch in Chiang Mai. In order to further boost these emerging sectors, a local initiative called “Creative Chiang Mai” (www.creativechiangmai.com) was formed five years ago with support from Government of Thailand, and the education and private sectors for developing Chiang Mai’s creative economy with a strong focus on IT, software and digital content.

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12 INFORMATION TECHNOLOGY

Yet some fundamental challenges and obstacles remain. According to a study by the Global Entrepreneurship and Development Institute at the Imperial College Business School (www.thegedi.org), Thailand does not score well in international outlook and willingness to take risks. The study also noted the need for more innovation and less “me too” activity.

Human resources are also an issue. Building up a team can take some time, but there is an interesting mix of technology skills that can support both vertical and horizontal solution.

Thailand is generally open to foreigners visiting and working as entrepreneurs or digital nomads, and is a great place for foreigners to live. The country has an excellent work and life balance, together with a favourable income and price level ratio. However, officially, immigration and labour laws are clear and restrictive. Foreign chambers of commerce in Thailand are in an ongoing consultative process with the government agencies concerned on further opening the IT sector and services sectors in order to alleviate the significant shortage of Thai software engineers, programmers, and developers, and thereby benefit the country. Also, the co-working spaces have facilitated a more cross-cultural and international open working style.

At a recent seminar during the Global Entrepreneurship Week at the Thailand Stock Exchange of Thailand, Thai participants agreed that Thailand would benefit from programmes such as Chile’s “Start-up Chile” programme (www.startupchile.org), which internationally attracts technology startups and entrepreneurs to that country.

For now, promotion by the BOI and/or doing the homework on how to operate in the Thai market and build local teams is still the best approach. Although the labour market for IT personnel is very dynamic, Thais put great emphasis on personal relationships and the culture fostered in a startup can make a critical difference. Universities, too, are open to more collaboration with startups and technology SMEs. A bit of investment here could create goodwill as well as help to identify and recruit new talent earlier than the competition.

Other signs of a maturing technology startup scene are: the emergence of more specialised creative hubs such Ma.D (www.madeehub.com), a co-working space for social entrepreneurs; P.AH, a co-working space for designers, makers and other creative entrepreneurs; and the formation of the Thailand Tech Start-up Association (startupthailand.org).

The Thailand Tech Star t-up Association provides a for um and voice for tech companies in Thailand and has joined some of the consultations with the Government on how to suppor t technology entrepreneurship. The association’s website provides examples of Thai startups that are considered to be success stories, and the association predicts there will be at least 500 Thai technology startups by the end of 2015.

It is too early to say what impact and new opportunities will be created for technology entrepreneurs by Thailand’s new “Digital Economy” policies. At present, much of the focus appears to be on improving Thailand’s ICT infrastructure. However, in the longer term, policies promoting more public procurement of IT and tax incentives for corporate entities working with startups and SMEs should give a further boost to the local scene.

In addition, there are many possibilities for technology companies in Germany. Thailand is presenting itself as an outsourcing destination in niche areas. Animation, game development, computer graphic design and other forms of digital content are clear strengths. A few German-led companies in Chiang Mai, for example, do much of their user interface, graphic design and web development using local staff to serve global clients.

Those familiar with Thailand’s adver tising industry would not be surprised at its strengths in the digital content space. This is underscored by the fact that Thailand’s advertising is highly regarded for its quality and creativity. In the industrial sector, too, IT-related opportunities exist in the areas of mechatronics, agriculture, logistics and health care. Like Germany, Thailand is an ageing society and has a significant medical and wellness tourism industry. Use of ICT in these sectors is still at an early stage but presents significant opportunities.

Contact details: Martin Venzky-Stalling Email: martin@venzky-stalling.com Mobile phone: +66 (0)81-991-9000

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14 INFORMATION TECHNOLOGY

‘INTERNET OF THINGS’ AND MORE...

Contributed by Manfred Rietzler, Aczept Technology Ltd. (Thailand) The Internet of Things (IoT) is currently drawing strong public attention that, with its broad range of views, is often creating misunderstanding about what IoT is and is not. Enthusiasts position IoT as the next generation in computing, while others are expressing privacy concerns and even fears of machines taking over everyday life. This ar ticle is aimed at providing enough background information to clarify the IoT landscape and the genuine applications that IoT enables, and beyond.

IoT IS NOT ONE TECHNOLOGY IoT can be simply defined as the network of available technologies that connect “Things” and make them work together in a system.

“Things” are everyday physical objects all around us, inclusive of (a) electronic devices and appliances such as computers, tablets and refrigerators, and (b) non-electronic items such as retail goods, assets and tools.

In basic terms, any IoT implementation relies on two key elements: Unique Identification of physical objects, the application of which turns objects into “Things” in IoT; and A communication interface to “Things” that enables connectivity in IoT. Providing a unique identification and a communication interface therefore converts ever yday physical objects into “Things” participating in IoT.

CONNECTING “THING” TO IoT Today’s available technologies are already powerful enough to give almost any “Thing”

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connectivity to the network by providing a digital identity (unique identification) and a wireless interface for communication.

Connecting an electronic device to IoT simply requires assigning a unique number (“unique ID”) to each individual electronic device, similar to assigning an individual telephone number to identify a mobile phone. Unique ID numbers can be added as an additional ID component (secure element) or can be personalised via the electronic device software.

To enable connectivity to IoT, the device can be equipped with a wireless interface such as Bluetooth, WLAN, NFC or RAIN. Via the applied interface, the device can communicate with its affiliate background system.

Connecting a non-electronic device to IoT requires RFID (radio frequency identification) tags that are small electronic devices with unique ID as well as a wireless communication interface.

RFID technology has made significant strides in the past decade to the point where, today, tags are widely available in ultra-small form, making them viable for tagging any physical object such retail goods, assets, and everyday items.

RFID tags can be readily attached or integrated into any “Thing”, and since they are often used as passive devices they do not require batteries. RFID tags are powered by the RF field of the corresponding reading devices, making it easy to connect any non-electronic device to IoT by just attaching an RFID tag to the device.

IoT ENABLES INCREASED SECURITY In simple terms, security essentially prevents malicious people from breaking through established access controls (whether doors, digital permissions, encryption etc.). IoT fundamentally enables increased security when considering that a digitised object is more easily made secure. Digital identities in IoT can then be managed at varying levels of security required by the inherent application field – not unlike any other type of security implementation.

The implementation of IoT is not to be feared as the normal rules guiding responsible behaviour for data privacy and security can cer tainly be equally leveraged in IoT. This has already been proved when considering the use of familiar IoT devices in our everyday life.

Consumers today are already carrying several RFID tags in their pockets for a variety of applications, many of which are enabling security – car keys (embedded immobiliser), access cards, payment cards, SIM cards (in mobile phones), border-crossing cards, electronic passports among others.

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DISPELLING MYTHS SURROUNDING IoT APPLICATIONS The application fields in IoT are indeed vast. They include: The industrial “Industry 4.0” initiative that is poised to trigger the fourth industrial revolution in which industrial equipment, machines, tools and parts will be connected to each other, enabling a fully automated and controlled manufacturing process; Retailing, where tagged retail products enable fully automated, end-to-end supply chain; Wearable electronics that are poised to enable the ultimate quantified self (“I want to control my own well-being”) by identifying and processing all kinds of metrics in bodily functions; Home automation enabling remote control and preferential management of home appliances, lighting, music, physical and digital points, and many more similar forms of application.

Established and globally-deployed IoT systems can pragmatically dispel fears associated with IoT – some good examples include the International Civil Aviation Organisation, which has effectively enabled deployment of electronic passports (with a unique and secure identity associated with each individual) to more than 80 countries. For animals, the International Committee for Animal Recording manages a globally-established system of secure identification and tracking of pets and cattle. In fact, there are already many more such systems in place.

THE ADVENT OF IoE The IoT is therefore best understood as a subset of a broader Internet of Everything (IoE).

Where IoT includes “Things” that are digitised forms of physical objects (whether electronic

or non-electronic), and where IoE includes additionally “Live” digital information derived from devices carried by individuals (such as cards or wearables), animals and, potentially, even plants.

The chart illustrates the IoE landscape with the different types of “Things”, people and animals, and how they are connected, including indication of the secure element, the wireless interface, and the various linkages into different cloud levels.

Welcome to the “Internet of Everything”!

Contact details: Aczept Technology Ltd. (Thailand) Tel: +66 (0)80-145-0799 Email: Manfred@rietzler.net Website: www.aczept.com

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16 INFORMATION TECHNOLOGY

TÜV RHEINLAND IDENTIFIES SEVEN CRITICAL CYBER SECURITY TRENDS FOR 2015 Contributed by Sabine Rieth, Chief Marketing and Media Officer, ICT and Business Solutions TÜV Rheinland Thailand Ltd.

Compliance pressure on organisations is mounting. “Investments in IT security will increase – above all because the threat situation has escalated fur ther and the regulator y requirements on companies are rising at the national and European levels,” according to Mr. Siemens. By this, he is referring primarily to the German IT Security Act and the European Union data protection reform.

Cyber-attackers are increasingly focusing on suppliers and medical equipment, companies are being overwhelmed with defence requirements, and there is a growing demand for external experts and high-end technologies.

More and more cyber attacks are occurring, and companies are increasingly relying on external experts. In the wake of geopolitical conflicts, the number of advanced persistent threats (APT) will increase further. In the case of suppliers and small and medium-sized enterprises (SMEs), in particular, attackers will look for the weakest link in a chain, although all industries and organisations are at risk.

However, according to TÜV Rheinland’s Global Vice-President for Information Security, Mr. Olaf Siemens, “security standards in megatrends are strongly trailing behind technological development”.

Because the risk of cyber-attacks is growing, the private and public sector will have to invest more in information technology (IT) security in 2015. In addition, cyber attackers are increasingly focusing on suppliers and medical devices. This is the assessment of Mr. Siemens as well as Mr. Björn Haan, Managing Director of TÜV Rheinland i-sec, in their preview on the subject of cyber security trends in 2015.

The preview is the result of a review of current market trends from the perspective of leading security analysts and consultants at TÜV Rheinland in Germany and at international subsidiaries, including the world’s biggest market for IT security, the United States of America.

Mr. Siemens and Mr. Haan have identified the seven major trends detailed below that will define the cyber security sector in 2015.

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Björn Haan, Managing Director of TÜV Rheinland i-sec.

“Many have already been compromised without even knowing it,” Mr. Haan pointed out. That’s why companies will rely more on the support of analytical defence tools and external experts who command these innovative technologies in 2015. They have cutting-edge expertise in detecting APTs and isolating their impact as quickly as possible. TÜV Rheinland expects that in 2015 its security incident response team will be sought after more frequently than ever before.

INFORMATION TECHNOLOGY 17

The international patient – IT security for medical devices. Functional outages or business interruptions due to attacks on medical equipment are among the growing risks in 2015. From the end of 2014, manufacturers in the United States will be required by law to take IT security into account in the development of equipment and as part of their risk management.

“We can assume that IT security for medical devices will also become a market admission feature in the European Union sooner or later,” Mr. Haan predicts. TÜV Rheinland and its subsidiary in the United States, OpenSky, already support American manufacturers with security analyses and penetration tests.

“Internet of Things”: Security standards are laggin g b eh in d te c h n o l o g i c al development. Whether talking about in-car convenience services, intelligent monitoring systems, clever thermostats and lighting systems or networked production facilities, Mr. Siemens warns that ”the standards for the security of information, data and privacy are still wantonly lagging behind the technological development of the Internet of Things (IoT) and the threat due to cyber-attacks”.

He feels that Germany will only be able to develop as a key smart home market if it is able to counter the current threat scenarios with reliable security standards and to implement testing methods for networks, mobile devices and software.

“Weaknesses that are not remedied will have an impact of entirely different proportions,” is his assessment.

The revolution is knocking, but no-one’s answering: “Industry 4.0” – key security questions unsolved. TÜV Rheinland’s leading experts for cyber security also feel that essential security questions have been left unanswered with regard to the mega issue of “Industry 4.0”. They see this as one of the central reasons for the restraint among German SMEs in getting involved in the most impor tant transformation process of this decade.

Networked driving – who owns the data? The year 2015 will be the first time connectivity will be more important to buyers than a vehicle’s engine performance, according to a recent survey by McKinsey.

As with IoT, TÜV Rheinland feels there is still a substantial imbalance between the rate of technological advancement and the security discussion. “The entire industrial value chain must work hard to find solutions that prevent dangerous outside intrusion into vehicle IT from even being a possibility,” Mr. Siemens stressed.

Cloud – private growth. “The trend towards the data cloud is irreversible,” Mr. Haan emphasised. To protect their digital crown jewels, companies are progressively switching to the private cloud.

TÜV Rheinland is of the key independent players in the market of Cyber Security. The specialists, who are represented in the United States, the United Kingdom of Great Britain and Northern Ireland, Hungary, India, Indonesia and Singapore among other locations, support companies in key industries such as logistics, automotive, aerospace, financial services, IT services and telecommunications.

“The demand for a high level of security is increasing, both on the national and the international levels, and we are capable of satisfying this demand even in complex environments. First, this offers many advantages to inter nationally active Ger man companies,” Mr. Siemens pointed out. The priority is the development of standard as well as individual solutions in information security “made in Germany.”

In IT security, this phrase stands for sophisticated management systems and a comprehensive , sustainable application of strategy.

“Sustainability in information security means understanding a company and its goals and to already be thinking operationally in the concept phase,” Olaf Siemens, TÜV Rheinland Global Mr. Siemens explained.

Vice-President for Information Security.

For additional information about these trends and related issues, readers can contact the author via the contact details below.

Contact details: TÜV Rheinland Tel: +49-221/56783-210 Email: sabine.rieth@de.tuv.com Website: www.tuv.com/informationsecurity

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SWITCHING TO INTERNET TELEPHONY: HOSTED VS. ON-SITE VoIP Contributed by Ilya Roitman, CEO, SoftControl.Net, Ltd. We live in a day and age of fast-speed Internet access. Considering how the Internet has taken over traditional ”bricks-and-mortar” domains as diverse as travel, banking, data storage and even shopping for luxury goods (providing these services safely, with great convenience and often much cheaper), it is surprising that businesses large and small are only now making the switch to Voice-over-Internet Protocol (VoIP) phone systems in large numbers.

Why? Because of VoIP’s reputation for being a more flexible, featurerich and cost-effective substitute for traditional analogue phone systems.

Organisations that consider acquiring a VoIP phone system need to evaluate two options: Hosted VoIP and on-site VoIP PBX (Private Branch Exchange). To make an informed decision, it will be necessary to understand the key differences between hosted VoIP and on-site VoIP PBX. Option 1: Hosted VoIP Businesses that select hosted VoIP essentially invite an outside company to run their entire phone operation. The company will then use special software (and occasionally hardware for certain providers) for operating and updating the system.

In addition to the initial setup costs, companies only need to invest in Internet-capable phone sets (IP phones). These can be purchased outright or leased, depending on a company’s preference. The service provider of hosted VoIP runs all other software and hardware, and all other aspects of call management, externally.

Option 2: On-site VoIP PBX The key difference between on-site VoIP and hosted VoIP is that with on-site VoIP the business accommodates all hardware and software

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on their own premises. This means the user company would be required to purchase, administer and support all software and hardware, including all required updates.

WHAT DO THESE DIFFERENCES MEAN? Most of the functionalities offered by a hosted VoIP system are also provided by a VoIP PBX system. Both solutions can provide features such as a virtual receptionist (Interactive Voice Response), unlimited extensions, and free calls between extensions, conference calls or calling groups.

With a hosted VoIP solution, very little investment is required except for the initial start-up costs and the IP phones. Any other costs for such a solution are also easily managed. Since a contracted company manages the telephone system externally, there will be no unforeseen additional maintenance costs. In addition, the company will not require its own trained IT staff to administer this system.

INFORMATION TECHNOLOGY 19

However, additional fees may be incurred if additional services are required or when adding new users. Not all providers have the skills to customise the system to match the user company’s needs exactly.

Finally, if the host provider goes out of business, the continuity of the phone system may be at serious risk.

Another critical element of hosted VoIP is bandwidth. With hosted VoIP much more bandwidth will be needed due to the internal bandwidth (extension to extension) requirements – potentially another reason for extra spending.

VoIP PBX requires a business to invest in all set-up costs, including IP phones, a server to host the system, and bridging cards. This investment often exceeds hundreds of thousands of Baht. In addition, on-premises trained IT staff will be needed to install and administer the system.

The advantage of an on-site PBX system is high flexibility and the potential for customisation. Adding users and changing numbers can be done quickly and efficiently, and there is no need to involve an external service provider at extra expense. However, there is one drawback to be considered – if a company moves its location, all hardware must obviously be moved as well. With hosted VoIP, however, it is only necessary to unplug the phones and plug them into the LAN again at the new premises.

It is also necessary to take system life expectancy into account. This can be done by the time it takes your business to depreciate the initial investment and compare the years of the hosted VoIP with the on-site VoIP PBX solution. Hosted VoIP usually looks favourable for

some time, but after a few years VoIP PBX will be the less costly solution.

CHOOSING THE BEST SOLUTION Solutions managed by outside providers are usually the preferred choice for small and medium-sized enterprises without the cash for purchasing and setting up the required hardware and software but which still want to take advantage of the features, cost-effectiveness and other benefits of VoIP. Such enterprises also appreciate the value of enjoying a state-of-the-art phone system without having to look after maintenance and upgrades themselves.

It is the large enterprises with investments funds, a longer planning horizon, and an already existing infrastructure and support system that decide to install an on-site VoIP PBX system. Such organisations usually already have skilled IT staff or will find it easy to hire additional people. The exception to this rule is large enterprises that are spread over many locations and offices. In such cases, a hosted solution can become much more feasible and cost-effective.

Contact details: SoftControl.Net, Ltd., 9th Floor, BB Building #3906-07, 54 Sukhumvit Soi 21, Asoke Road, Bangkok 10110 Tel: +66 (0)2 105-4068 E-mail: ilya@softcontrol.net Website: www.softcontrol.net

WHY HOSTED VoIP? For me, all this VoIP stuff is not understandable. The last thing we need is another complex technology to manage.

Minimal IT support

I would love to have the newest communication features for the company. It would help us to get on an equal footing with some of our largest competitors. However, bringing in the latest technologies is always a budget buster.

Lower total cost of ownership

Maybe if I did not listen to reports on the economy, I would feel more comfortable about spending money on a new telephone system. We do need it, but I do not need the expense right now.

Operating expense versus capital expense

Telephones keep the heart of my business beating. If the service stops for any reason it can cause significant damage.

Business continuity

I used to be able to take a long-term view of my business. However, due to the current economic situation, I cannot afford to be locked into any technology that cannot be scaled. Impossible. My company needs flexibility to make immediate changes.

Scalability

We are a small company that needs to look big to be competitive. Having the latest technologies would help. However, such features are expensive and only certain ones apply to my business.

Functionality

On any given day, there are dozens of issues to manage. The telephone system should bethe least of our concerns. Phones should reliably assist us in our business, and not be in need of our assistance.

Focus on what matters

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CLOUD COMPUTING AND ITS BENEFITS FOR SMALL AND MEDIUM-SIZED ENTERPRISES Contributed by Anja Heck, Managing Director, Skywave Technologies (Thailand) Co., Ltd. Cloud services are becoming increasingly popular in spite of concerns about risks for data security and privacy.

While proper risk management and risk tolerance are among the first questions everyone is asking in Cloud discussions, it is worthwhile looking at all the benefits that “The Cloud” can provide, especially to small and medium-sized enterprises (SMEs).

Almost half of all small businesses fail during the first year of operations, and most of them during the first five years. One of the contributing factors appears to be the lack of investing in new technologies. SMEs struggle with expenses for their IT infrastructure instead of being able to focus on their business ideas and on those areas in which they are proficient.

SMEs have to spend considerable amounts of money on hardware and software licences, legal fees, office space and equipment etc., and in many cases their budgets are completely consumed even before the firm becomes fully operational. Great innovations and visions may be lost before SMEs can spread their wings because crucial investments need to be made at the beginning of every good business idea; corporate survival is only possible with a sound and adequate financial cushion.

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ENTER THE CLOUD SERVICES Using the Cloud actually means that you do not own the computing tools anymore – you rent them on demand from providers such as Google, Microsoft, Dropbox or IBM, and you “pay as you go” per month/year etc. without having to purchase own “on-premises” equipment such as servers, server racks, backup tapes and more.

In other words, using the Cloud basically means renting the space and service from the provider (e.g., “SaaS Software as a service”, PaaS Portal as a Service” and others). Large organisations can even create their own Cloud – but this article only concentrates on SMEs, for which the Cloud benefits are huge: SMEs can compete with large organisations due to the availability and affordability of highly cost-effective and efficient IT infrastructure; Little or no need for expensive new hardware that rapidly becomes obsolete; There is no need to manage equipment and software updates; as a result, maintenance and monitoring expenses are low; The on-demand infrastructure allows the highest flexibility and scalability, just as a business requires in a certain situation at a certain point in time;

INFORMATION TECHNOLOGY 21

Always having the latest updates of software without high-cost pressure or unpleasant surprises due to equipment failure; Availability of unlimited data storage capacity anytime – centralised data that is available faster, cheaper and securely; An end to data leakage or loss (from lost laptops, damaged backup tapes etc.); Access to data anywhere, anytime – the cloud supports globalisation and worldwide collaboration; Cloud computing means freeing resources that can then be concentrated on more important tasks; Streamlined processes and high workflow efficiency; Increased productivity and mobility, especially in environments such as Bangkok, where people spend hours in traffic jams; Data protection and reliable automatic backup; A general improvement of work situations and collaboration, making a business more efficient and focused; Businesses become stronger, faster and able to compete better.

SECURITY AND PRIVACY However, deciding whether to store your information assets in the Cloud or not also requires discussion about the security and privacy risks involved.

Many people still believe it is too risky to move critical applications into the Cloud (remember the Amazon case?); as the Cloud market is quite new, its security offerings need to be checked very carefully.

Security levels vary between providers and should be transparent; but an increasing number of people are becoming convinced that the Cloud provides even better security for SMEs.

permission can easily be set up according to business needs, and all files are automatically backed up.

However, the biggest challenge in Thailand currently remains the availability of a stable high-speed internet connection as the precondition for Cloud computing.

To summarise, when weighing the benefits against the risks of the Cloud, SMEs should evaluate their individual risk levels with and without Cloud services. How many laptops have been provided to your team without proper administration and data protection? What will be the costs for that in the traditional way? How much time does your team spend travelling to the office instead of being able to start with the work on time and refreshed? How much mobility is needed?

There are many questions to be answered in order to be able to make the right decision for a business. If you are interested in learning more about the Cloud and what it can do for you in a safe and secure way, please see Skywave Technologies contact details below.

Contact details Skywave Technologies Tel. +66 (0)2-662-0432 Email: anja.heck@skywavetechnologies.com

Because small businesses and startups usually do not have solid internal security budgets, or at most very limited ones, they hesitate to spend much money on data security tools.

In fact, startups are quite prone to internal or external security threats, data leakage, loss and abuse, even if they work with strict and detailed contracts and agreements.

As a good example, take file sharing. The Cloud provides easy, safe and secure file sharing options, such as Dropbox or Microsoft Sharepoint as part of MS Office 365, instead of just sending pdf files by e-mail to various recipients without knowing where else those files will go. User groups and access rights

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LAWS ON DIGITAL ECONOMY AND CYBER SECURITY Contributed by Kowit Somwaiya, Managing Partner, LawPlus Ltd.

As Thailand needs laws that facilitate the development of the digital economy and effectively deal with cyber security issues, the Government recently approved 10 bills related to information and communication technology, cyber security, personal data p rotec tio n , c o mpu t e r cr i m e s a n d telecommunications. Collectively called digital economy laws, they are: National Committee for Digital Economy and Society Bill; Organisation of Ministries, Sub-Ministries and Departments Bill; Electronic Transactions (Amendment) Bill; Computer-related Crime (Amendment) Bill; National Cyber Security Bill; Personal Data Protection Bill; Digital Economy Promotion Bill; Digital Development for Economy and Society Fund Bill; Act on Organisation for Allocation of Radio Frequencies, and Supervision of Broadcasting and Telecommunications Businesses (Amendment) Bill; Electronic Transaction Development Agency (Amendment) Bill.

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The first Bill listed above will establish the National Committee for Digital Economy and Society, which will set policies and directions for the development of the digital economy in Thailand. The Committee will formulate a national plan covering hard infrastructure, soft infrastructure, service infrastructure, digital economy promotion, and digital economy and knowledge.

Under the second Bill, the Ministry of Information and Communication Technology will be restructured and a new Ministry of Digital Economy and Society (MDES) will be established to develop the digital economy.

The Bill on the amendment of the Electronic ensure more effective implementation. It will recognise and support cross-border electronic transactions amid changes in the information and communication technologies. It will also integrate the powers and duties of the relevant agencies to support the mission of the Electronic Transactions Commission.

INFORMATION TECHNOLOGY 23

The Bill on amendment of the Computer-related Crime Act will give MDES more responsibility and powers to implement the law. It will also strengthen the powers of the official authorities to control, monitor and access computer data and share them with other officials.

Under the National Cyber Security Bill, a National Cyber Security Committee (NCSC) and NCSC Office will be established. The NCSC will formulate a cyber security master plan to govern cyber threats against national and military security, domestic peace and order, and national economic stability. The NCSC Office will prepare and implement approaches, measures, operation plans and projects to deal with cyber security issues consistent with the NCSC master plan.

The Personal Data Protection Bill will govern the collection, utilisation and disclosure of personal data to protect personal privacy. The draft of this law was prepared and reviewed several years before it was approved in principle by the Government.

The last four Bills will establish and fund relevant agencies as well as amend the functions of some existing government offices and independent organisations in order to improve their effectiveness, transparency and collaboration, and to reduce duplication of work.

As of February 2015, these Bills were being reviewed by the Council of State and they will be later returned to the Government for forwarding to the National Legislation Assembly (NLA) for enacting into law.

Concerns have been raised that the bills as drafted will infringe on the freedom of expression and the right to privacy. For example, under Section 35 of the National Cyber Security Bill, the NCSC can access information on computers, cell phones and other electronic devices of a person without a court order. Also, the draft amendment to the Computer-related Crime Act will allow the competent authorities to block a website without approval from the NCSC or a court order.

The concer ns r aised are valid and understandable. However, they will not stop the Government and the NLA from passing these Bills into laws that set out the legal framework for Thailand to achieve a digital economy. Most, if not all, of these laws will be passed sooner rather than later. The good news is that the legislators have shown willingness to address the concerns raised.

For example, it is likely that the NLA will add provisions to the Personal Data Protection Act to require authorities to obtain a court order before they can access private data.

Passing laws to support the digital economy scheme and govern the cyber security is a daunting task. Some of these digital economy laws were passed several years ago. However, the continuing changes in information and communication technologies make it impossible to establish perfect digital economy laws. The legislative work for this type of law cannot be a one-time process. Creating effective laws relevant to the prevailing environment is a continuous task. The laws, once enacted can always be adjusted through amendments and the enactment of additional legislation.

Thailand is one of the most vulnerable locations to cyber attacks. It is known that government and private websites have been hacked, and that hackers frequently use Thailand as their base for launching local and global cyber attacks. Computer crimes and internet frauds committed in or against Thailand are also posing serious cyber security risks. The need and urgency of having laws that would effectively deal with cyber security issues and jumpstart the digital economy are real.

Contact details: LawPlus Ltd. Tel: +66 (0)2-636-0662 Email: kowit.somwaiya@lawplusltd.com Website: www.lawplusltd.com

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‘BOI INVESTMENT POLICY SUPPORTS MOVE TOWARDS DIGITAL ECONOMY’ GTCC: Could you explain how the new Board of Investment (BOI) investment policy – that is, exemption from corporate income tax and import duty on machinery, and special treatment for investing in promoted economic zones – will help support a digital economy?

Ms. Ajarin: The BOI investment policy categorises eligible activities into two groups for the purpose of granting incentives, according to their importance.

Following the recent announcement by the Government that Thailand will pursue the establishment of a digital economy, the German-Thai Chamber of Commerce discussed the Board of Investment’s (BOI) new investment policy with Ms. Ajarin Pattanapanchai, former BOI Deputy Secretary-General and currently a Senior Executive Investment Advisor to BOI.

UPDATE 1/2015

Group A comprises activities that may receive corporate income tax incentives, machinery and raw materials impor t duty incentives as well as other non-tax incentives. This group can, in turn, be divided into four subgroups: A1 – Knowledge-based activities, which are those that focus on research and development (R&D) and design in order to enhance the country’s competitiveness; A2 – Infrastructure activities for the country’s development, and activities using advanced technology to create value-added, with very few existing investments in Thailand; A3 – High-technology activities, which are impor tant to the country’s development but in which little investment already exists in Thailand; A4 – Activities involving lower technology requirements than those in A1-A3, but which add value to domestic resources and strengthen the supply chain in Thailand.

INFORMATION TECHNOLOGY 25

The activities in A1 to A4 will receive CIT incentives for periods ranging from three to eight years, depending on their importance to Thailand – the more important the activity, the higher the incentives will be.

GTCC: Does BOI have other relevant policies related to the Government’ digital economy that focus on the development of hard infrastructure – e.g., a national broadband network, 4G wireless broadband service and Internet gateway facilities?

Group B comprises two subgroups, which cover supporting industries that do not use high technology but are still important to the value chain: B1 activities can be granted exemption from import duty on both machinery and raw or essential materials used in manufacturing export products, plus other non-tax incentives.

B2 activities can be granted exemption from import duty on raw or essential materials used in manufacturing export products, plus non-tax incentives.

Ms. Ajarin: BOI promotes activities that support the digital economy, as they are of great importance under the new policy. These activities are given Group A incentives, with the exception of e-commerce.

Eligible activities for investment promotion that suppor t digital economy are: 5.1.1. Manufacturing of advanced technology electrical products (Internet of Things) (A3); 5.3.2. Manufacturing of telecommunication equipment (A2); 5.3.2. Manufacturing of telecommunication equipment (A2); 5.7. Software (Embedded software – A1; enterprise software and/or digital content – A3); 5.8. E-commerce (B2); 7.9.2. Data centre (A1); 7.10. Cloud service (A1).

In addition, BOI offers merit-based incentives that grant additional incentives to encourage greater investment or expenditure that benefits the countr y or overall industr y, such as mer it on decentralization and merit on industrial area development. For example: Projects located in Investment Promotion Zones, which are located in 20 low-income provinces, may be eligible to receive three additional years of CIT exemption, but the total exemption period cannot exceed eight years. If a project already receives an eight-year CIT exemption, instead of an additional three years it will receive a 50 per cent reduction of CIT on net profit derived from the promoted activity for five years following the expiry of the CIT exemption period; Projects located in industrial estates or promoted industrial zones (such as a Science Park and Software Park), can be granted one additional year of corporate income tax exemption, but the total period of the exemption cannot exceed eight years.

In addition, BOI suppor ts the policy of promoting investment in special border areas. Investment projects located in the special economic development zones will receive an additional three-year corporate income tax exemption on top of the basic incentives, with certain criteria.

GTCC: Could you provide more details on the new investment policy, particularly for small and medium-sized enterprises in the IT sector?

Ms. Ajarin: BOI has announced a specific investment promotion for SMEs, with an investment value that is less than general activities, particularly IT sector activities such as software, which BOI would like to support. Salary expenses for IT personnel totaling at least 1,500,000 baht per year will be taken into account for project approval instead of the size of investment. Projects under IT activities will receive CIT exemption for a period of five to eight years, depending on the activity, without being subjected to a corporate income tax exemption cap.

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THAILAND’S NEW BOI PROMOTION POLICY: ENABLING PROSPERITY Contributed by Board of Investment of Thailand

The Thailand Board of Investment approved its new investment promotion policy implemented on 1 January 2015. Thailand, long a country able to attract investment with its low wage high productivity manufacturing sector, has advanced to become an upper middle income country; a country facing increased wage competition from less developed economies in the region. The strategic shift was therefore adopted for the country to follow the economic evolution taken previously by such economies as Japan, Republic of Korea and Taiwan, with the ultimate goal of economic growth through a knowledge economy that relies more on the production of value-added goods than raw material exports, and on research and development than cheap labor.

The new policy is in accordance with the direction set by Thailand's National Economic and Social Development Plan. It aims to promote both foreign and domestic investment in Thailand to enhance national

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competitiveness and to overcome the so-called middle income trap; thereby achieving sustainable growth in accordance with the philosophy of sufficiency economy.

The emphasis of the new policy is to enhance Thailand's competitiveness. The Board of Investment has set investment promotion policies, as follows: Promote investment that helps enhance national competitiveness by encouraging R&D, innovation, value creation in the agricultural, industrial and services sectors, SMEs, fair competition and inclusive growth; Promote activities that are environment-friendly, save energy or use alternative energy to drive balanced and sustainable growth; Promote clusters to create investment concentration in accordance with regional potential and strengthen value chains;

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Promote investment in border provinces in Southern Thailand to help develop the local economy, which will suppor t effor ts to enhance security in the area Promote special economic development zones, especially in border areas, both inside and outside industrial estates, to create economic connectivity with neighboring countries and to prepare for entry into the ASEAN Economic Community (AEC) Promote Thai overseas investment to enhance the competitiveness of Thai businesses and Thailand's role in the global economy.

considered, with the adoption of efficient guidelines and measures to protect environmental quality and to reduce environmental impact.

The minimum capital investment requirement of each project remains at 1 million baht (excluding cost of land and working capital), unless it is specified in some knowledge-based services which must have a minimum capital investment requirement or minimum annual salary expense. For newly established projects, the debt-to-equity ratio must not exceed 3 to 1, with expansion projects continuing to be considered on a case-by-case basis.

Similar to the previous requirement, there are certain conditions and criteria that need to be met for a variety of the promoted activities.

For example, projects with investment capital of 10 million baht or more (excluding cost of land and working capital) must obtain ISO 9000 or ISO 14000 cer tification or similar international standard cer tification within 2 years from the full operation star t-up date, otherwise the corporate income tax exemption shall be reduced by one year. Also, the environmental impact of projects must be

The new BOI investment promotion policy chiefly focus on high-tech and knowledge-based industry, we categorized approaches of granting Investment Incentives into 2 groups; Group A which are fur ther categorized into 4 sub-groups: A1-A4, ranking by the importance to our country with higher the incentives; Group B which are the business for supporting industries that do not use high technology but are still important to value chain.

Apart from basic incentives, the BOI offers merit-based incentive that grant additional incentives to encourage more investment/expenditure that benefit the country or overall industry which are; Competitive enhancement, decentralization and industrial area development.

1. Research and development in technology and innovation including in-house R&D, outsourcing research in Thailand or joint R&D with overseas institutes; 2. Donations to Technology and Human Resources Development Funds, educational institutes, specialized training centers, research institutes or governmental agencies in the science and technology field in Thailand, as approved by the Board;

The merit-based incentives on competitive enhancement would include projects that have investments or expenditures on:

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28 BUSINESS BRIEFS

3. IP acquisition/licensing fees for commercializing technology developed in Thailand; 4. Advanced technology training; 5. Development of local suppliers with at least 51% Thai shareholding in advanced technology training and technical assistance; or 6. Product and packaging design, either in-house or outsourced in Thailand, as approved by the Board.

Additional CIT incentives will be granted depending on investment/expenditure ratio (%) as the tables shown below;

Percentage of qualified investment/expenditures to combined revenue of the first 3 years

Additional CIT exemption (with additional cap)

1% or > 200 million baht

1 year

2% or > 400 million baht

2 years

3% or > 600 million baht

3 years

*Remarks: the total CIT exemption must not exceed 8 years

Types of eligible investments/expenditures

Additional cap

1. R&D: in-house, outsourced in Thailand or joint R&D with overseas institutes

200%

2. Donations to Technology and Human Resources Development Funds, educational institutes, specialized training centers, R&D institutes or governmental agencies in S&T field in Thailand, as approved by the Board

100%

3. IP acquisition/licensing fees for commercializing technology developed in Thailand

100%

4. Advanced technology training

100%

5. Development of local suppliers with at least 51% Thai shareholding in advanced technology training and technical assistance

100%

6. Product & Packaging Design: in-house or outsourced in Thailand, as approved by the Board

100%

It should be noted that for Group B activities only certain activities are eligible for merit-based incentives and to receive these investors need to submit the plan at the same time as the project submission is made.

UPDATE 1/2015

Also, those projects receiving incentives in Group A1 and A2 which already have an 8-year corporate income tax exemption and which also qualify for merit incentives for decentralization, will receive merit incentives in the form of a 50% reduction of corporate income

BUSINESS BRIEFS 29

tax on net profit derived from the promoted activity for 5 years after the initial exemption expires.

Another change to the policy includes a revision of the BOI Zoning, which has become only Investment Promotion Zones that now include 20 low-income provinces, down from the previous count at 58 provinces: Kalasin, Chaiyaphum, Nakhon Phanom, Nan, Bueng Kan, Buri Ram, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, Si Sa Ket, Sakhon Nakhon, Sa Kaew, Sukhothai, Surin, Nong Bua Lamphu, Ubon Ratchatani and Amnatcharoen.

Projects located in the above areas are eligible to receive 3 additional years of CIT exemption, but the total period of the exemption cannot exceed 8 years. If a project with activities in Group A1 or A2 already receives an 8-year CIT exemption it will instead receive a 50% reduction of CIT on net profit derived from the promoted activity for 5 years after the CIT exemption period expires. All projects in the above areas are eligible for double deduction for transportation, electricity and water costs for 10 years from the first date that revenue is derived from the promoted activity; and a deduction from net profit of 25% of the project's infrastructure installation or

construction costs, in addition to normal depreciation. This deduction can be made from the net profit of one or several years within 10 years from the first date such revenue is derived.

To see which specific activities fall under the above categories, investors should refer to the BOI web site mentioned at http:// www.boi.go.th/upload/content/newpolicy-announcement_63297.pdf.

With the new policy in place, the Thailand Board of Investment will continue to work with investors, especially during the transition phase, to ensure clarity and transparency. Of course, there are cer tain activities that will no longer be promoted, mostly as a consequence of their low value added production, use of low technology, uncomplicated production process, low industrial linkage, and those that are labor-intensive. Also among the activities no longer being granted BOI promotion are those that have a high environmental impact, as Thailand seeks to build an advanced, high-tech low environmental impact economy in which investors and Thailand can benefit over the long-term.

http://thailand.ahk.de

30 BUSINESS BRIEFS

Kathrin Menges, Executive Vice-President, Human Resources and Infrastructure Services, explains to students at a school in Düsseldorf what it means to act sustainably.

HENKEL AMBASSADORS EDUCATE CHILDREN ON SUSTAINABILITY Contributed by Henkel (Thailand) Ltd.

Like every company, all individuals can contribute to a more sustainable future through his or her behaviour, as personal decisions have a significant impact on the amount of energy, water and other resources consumed. With that in mind, Henkel AG & Co. KGaA has been looking for ways to involve employees more intensively in its sustainability activities. One outcome of this approach is the Ambassador Programme developed by Henkel in 2012. Today, the programme is one of the company’s most important initiatives in the area of sustainability.

In this article, Kathrin Menges, Executive Vice-President of Human Resources and Infrastructure Services, and Chair of the Henkel Sustainability Council, discusses the Henkel Sustainability Ambassador Programme and shares her personal experience as an ambassador with the Chamber.

GTCC: Why did Henkel start the Henkel Ambassador Programme?

GTCC: Why is raising sustainability awareness important for Henkel?

Ms. Menges: At Henkel our focus has always been placed strongly on sustainability. Nonetheless, we felt there was a need to strengthen employees’ awareness and commitment to making individual contributions to sustainability in their daily lives. So we launched the Ambassador Programme in 2012 to train our employees in the principles of sustainable development and Henkel’s sustainability strategy in a very interactive and fun way.

Ms. Menges: If we want to continue to live well and within the means of the planet, we need to understand that each of our individual decisions and behaviour contributes significantly to the amount of energy, water and other resources that we consume.

Through the programme , we can engage our colleagues as sustainability ambassadors, who then raise awareness among others, e.g., co-workers, suppliers, customers, consumers and students. Since launching the programme in 2012, Henkel has trained more than 3,800 ambassadors in 70 countries.

UPDATE 1/2015

However, many people are still unaware of their personal impacts.

Therefore, we need to raise awareness of the fact that each and every contribution matters, and to learn how to use resources more efficiently in order to achieve more with less.

We need everyone’s commitment if we want to achieve our goal of tripling the value that we create compared with the environmental footprint of our products and technologies by 2030.

BUSINESS BRIEFS 31

GTCC: Why encourage ambassadors to visit schools?

GTCC: What is the next step?

Ms. Menges: We encourage ambassadors to visit schools because we want the next generation to understand how to use resources efficiently from an early age. We, as adults, are accustomed to certain habits whereas children are still open to learning new things. Children can become a great multiplier by persuading their families to make more sustainable choices in their daily lives.

Ms. Menges: Henkel will continue rolling out the Ambassador Programme globally. There are around 47,000 Henkel employees worldwide, and they can all play a role in conserving resources.

Our ambassadors enjoy visiting schools and meeting with students, who are motivated and excited about making a contribution to a more sustainable planet. Their enthusiasm is contagious. I think that is a big par t of the reason why Henkel ambassadors have already presented the topic of sustainability to around 36,000 primary school students in 37 countries.

GTCC: Are you involved personally?

Ms. Menges: Yes, it is critical to set a positive tone at the top of the organisation. Several members of the Henkel Management Board – including Kasper Rorsted (Chief Executive Officer), Bruno Piacenza (Executive Vice President Laundry and Home Care) and myself – have visited elementar y schools as par t of the Ambassador Programme. Speaking with the students was a great experience.

In addition to the successful schools visits, we have also initiated a “(Y)our Move” programme that highlights five areas where we can serve as role models in the office by acting more sustainably, i.e., “Saving Energy”, “Sustainable Healthy Food”, “Sustainability Donating Events” and “Smart Printing”. These dimensions offer employees the oppor tunity to choose where they can have the biggest individual impact for greater sustainability at work and at home. Piloting this programme turned out to be a great success and we plan to roll out the “(Y)our Move” programme more extensively.

Furthermore, Henkel will intensify its collaboration with partners along the value chain. Working with retail partners, for example, Henkel plans to engage more consumers on the topic of sustainability and explain how products can be used in an environmentally responsible way.

Kasper Rorsted, Chief Executive Officer, talks about sustainability with students at a school in Düsseldorf.

http://thailand.ahk.de

32 BUSINESS BRIEFS

GTCC EXTENDS ITS NETWORKING EVENT IN THAILAND This year, the German-Thai Chamber of Commerce is extending its networking reach to other business regions, in close collaboration with other Chambers of Commerce. Stay tuned for the latest updates on the GTCC website at http://thailand.ahk.de/en/ or follow us on

EASTERN SEABOARD NETWORKING Date*

Host

16 January 2015

Eastern Seaboard Networking – SATCC

20 February 2015

Eastern Seaboard Networking – AMCHAM

20 March 2015

Eastern Seaboard Sundowners – AustCham

24 April 2015

Eastern Seaboard Networking – BCCT

15 May 2015

Eastern Seaboard Networking – AMCHAM

19 June 2015

Eastern Seaboard Sundowners – AustCham

17 July 2015

Eastern Seaboard Networking – BCCT

21 August 2015

Eastern Seaboard Stammtisch – GTCC

18 September 2015

Eastern Seaboard Sundowners – AustCham

16 October 2015

Eastern Seaboard Stammtisch – GTCC

20 November 2015

Eastern Seaboard Networking – BCCT

18 December 2015

Eastern Seaboard Networking – BeluThai

WESTERN SEABOARD NETWORKING Date*

Host

13 February 2015

Western Seaboard Networking

8 May 2015

Western Seaboard Networking

14 August 2015

Western Seaboard Networking

13 November 2015

Western Seaboard Networking

CHIANGMAI NETWORKING Date*

Host

27 February 2015

Chiangmai Networking

22 May 2015

Chiangmai Networking

4 September 2015

Chiangmai Networking

6 November 2015

Chiangmai Networking

PHUKET NETWORKING Date*

* Please note that the dates may be subject to change. Updated information can be found on GTCC online calendar at Thailand.ahk.de

UPDATE 1/2015

Host

12 March 2015

Phuket Networking

28 May 2015

Phuket Networking

27 August 2015

Phuket Networking

22 October 2015

Phuket Networking

3 December 2015

Phuket Networking

34 CHAMBER ACTIVITIES

CRYSTAL BALL BUSINESS LUNCHEON The German-Thai Chamber of Commerce (GTCC), in collaboration with partnering chambers of commerce, organised the Crystal Ball Business Luncheon on 14 January 2015 at the Dusit Thani Hotel, Bangkok. The luncheon was aimed at providing perspectives and opportunities for 2015 regarding the economy, capital market, legal landscape, e-commerce and social media, and real estate.

Five speakers shared their knowledge with more than 170 were given the opportunity to learn useful insights from the guest speakers, who included Pimpaka Nichgaroon, Head of Research of Thanachart Securities, who gave an interesting outlook on the economy in 2015.

Paul Gambles, co-founder of MBMG Group, stated that he was certain that the capital market would fluctuate this year. According to Ian Fenwick, Advisor of Sasin Graduate Institute of Business Administration, 2015 appeared to be promising for business growth, in which the digital economy would play an important role.

NETWORKING SERIES In addition to the monthly Eastern Seaboard Networking (ESB) event, GTCC extended its networking reach by introducing new networking groups in the Western Seaboard (WSB), Chiang Mai and Phuket. The networking groups are organised in close collaboration with various other chambers of commerce to ensure diversity across participants.

UPDATE 1/2015

During this first quarter, a WSB and a Chiang Mai Networking event took place in February, while a Phuket Networking Dinner was organised in March. Interested members and individuals can also follow the networking schedule on the GTCC website.

CHAMBER ACTIVITIES 35

UNDERSTANDING MYANMAR: INTERCULTURAL TRAINING COURSE, BUSINESS MEETINGS In co-operation with GTCC, GIZ Training Bangkok held an intensive two-day training course on 22 and 23 January 2015, which was aimed at building intercultural competencies for enabling business success in Myanmar. GTCC members attending the training course gained in-depth insights into Myanmar’s values and traditions as well as hands-on tips for negotiations and meetings with Myanmar business partners. Dr. Monika Stärk from the Delegation of German Industry in Myanmar gave a presentation on doing business in Myanmar, in which she highlighted key sectors and provided advice on market entry.

In the course of her visit to Bangkok, Dr. Stärk also met with members of GTCC, to consult with individual companies that were interested in expanding their businesses to Myanmar. She provided them with valuable advice on how to engage in local business activities.

For those readers who are looking for investment opportunities in Myanmar or wanting to become part of the German-Myanmar business community in Yangon, GTCC is pleased to announce that the establishment of the German-Myanmar Business Chamber is making good progress; the Chamber was scheduled to be launched in March. Enquiries about membership applications can be made online via info@gm-bc.com.

AUSTRIAN-GERMN JOINT BUSINESS COMMUNITIES LUNCHEON On 23 January, GTCC joined hands with the Austrian Embassy’s Commercial Section to again organise a networking luncheon bringing together the two business communities for networking and discussing areas of mutual interest. The event took place at the Radisson Blu Plaza, where more than 70 guests were welcomed.

http://thailand.ahk.de

36 CHAMBER ACTIVITIES On 6 February 2015, GTCC and joint foreign chambers organised a luncheon presentation on the new Board of Investment of Thailand (BOI) investment policy at the Grand Millennium Sukhumvit Hotel.

Ms. Duangjai Asawachintachit, Deputy Secretary-General of BOI gave a detailed presentation to more than 200 guests. She emphasised the fact that the Seven-Year Investment Promotion Strategy (2015-2021) and Investment Promotion Criteria and Activities was aimed at overcoming the “middle income trap” as well as at achieving sustainable growth in accordance with the sufficiency economy philosophy. The new schemes comprise “activities-based” and “merit-based” incentives.

PRESENTATION ON NEW BOI INVESTMENT POLICY In brief, incentives will be given to companies engaging in activities that enhance national competitiveness by encouraging research and development, innovation, value creation in the agricultural, industrial and ser vices sectors, small and medium-sized enterprises, fair competition and inclusive growth. This includes, for example, the production of electricity or electricity and steam from garbage-derived fuel, the manufacture of active ingredients from natural raw materials, the production of technical fibre or functional fibre, the production of vehicle parts using high technology, biological and organic fertilisers,

nano-organic chemical fertilisers and bio-pesticides as well as the manufacturing or preservation of food, beverages, food additives or food ingredients, using modern technology.

Merit-based incentives will be given to activities that create competitiveness enhancement, encourage decentralisation (e.g., in special economic zones, border areas and southern Thailand), and help in industrial area development.

EUROPEAN CHAMBERS BREAKFAST TALK ON AEC The German-Thai Chamber of Commerce together with other European Chambers hosted a European Chambers Breakfast Talk on the forthcoming ASEAN Economic Community (AEC) on 26 February 2015 at the Conrad Hotel. The aim of the event was to explain the objectives and actions of AEC and analyse what it means for Thailand and other ASEAN members.

Mr. Andrew Durieux, Chairman of the AEC Committee, gave a presentation about what the AEC would be and explained what still needed to be done in order to ensure its implementation. He also provided an update about the current problems concerning the implementation of the AEC and the remaining challenges that needed to be tackled.

He noted that one remaining major challenge was that although in ASEAN6 more than 99 per cent of tariff lines had already been reduced to zero p e r cent in 2010, s o me A SEA N countries had started putting in place non-tariff barriers in order to make up for the inevitable tariff revenue loss.

UPDATE 1/2015

CHAMBER ACTIVITIES 37

ICE BREAKER NETWORKING: GTCC-FTCC-TICC ‘LIFESTYLE NIGHT’ GTCC’s featured networking event “The Ice Breaker” took place on 24 Februar y at the Swissotel Nai Ler t Park Bangkok, in close collaboration with the Franco-Thai and Thai-Italian Chambers of Commerce, with the theme “Lifestyle Night”. The networking event offered the opportunity for guests to experience lifestyle products and technologies from selected German, French and Italian companies, including Arkitektura, BMW, Hӓfele, Italasia, and Günthart, which presented German products at the event.

http://thailand.ahk.de

38 CHAMBER ACTIVITIES

TECHNICAL SEMINAR FOR LEADING GERMAN COMPANY, GEISS AG The German-Thai Chamber of Commerce (GTCC) organised an exclusive, successful half-day technical seminar in Bangkok on vacuumforming technology on 11 March 2015 at the SIVATEL Bangkok Hotel (Phloen Chit) for leading German company, GEISS AG. The seminar, which focused on the latest technology solutions in thermo-forming,

was conducted by Mr. Manfred Geiss, Chairman of the Board (GEISS AG). Around 30 persons from the respective target groups attended the seminar, which also acted as a venue for exchanging opinions and expert know-how.

EXCLUSIVE BREAKFAST TALK WITH ThyssenKrupp AG The Chamber welcomed Dr. Heinrich Hiesinger, Chairman of the Executive Board (CEO), ThyssenKrupp AG, and the board member responsible for Asia-Pacific as guest speaker at an exclusive GTCC Breakfast Talk on 13 March at the Sukhothai Bangkok Hotel.

In his presentation, titled “From German steel giant to global diversified industry – An exciting journey”, Dr. Hiesinger provided an overview of the challenges faced under his leadership and how he had led the company through them to position it ”back in black”, and able to enjoy profit again for the first time in three years by implementing various strategies.

He explained that one significant strategy, the Strategic Way Forward, was based on four pillars: change management; people success; performance orientation; and customers and markets.

This strategy played an important part in reviving the company’s business, resulting in regaining financial stability and providing a strategic push. In explaining the strategy, he highlighted the role of the workforce in driving the company forwards to success.

UPDATE 1/2015

CHAMBER ACTIVITIES 39

GTCC ORDINARY GENERAL MEETING, 2015 GTCC held its Ordinary General Meeting 2015 on 19 March at the Hilton Sukhumvit Bangkok Hotel. The meeting welcomed more than 130 representatives from leading German and Thai companies in various industries who are members and counterparts of the Chamber.

This year, GTCC were honoured by the presence of Thailand’s Minister of Industry, Mr. Chakramon Phasukavanich, who gave a keynote presentation to members on the topic of “New Industrial Strategy – how to make Thailand more competitive”.

During the meeting, an election of new Board members was conducted successfully. GTCC congratulated Mr. Phongsakdi Chakshuvej, Executive Vice-President of B. Grimm and Co. Ltd., Dr. Florian Kirschner, Managing Director of Evonik (Thailand) Ltd., who were both re-elected as GTCC President and GTCC Vice President respectively.

The Chamber also expressed its sincere gratitude for the strong commitment and consistent contributions of four outgoing directors: Mr. Phit Simahawong, Schaeffler (Thailand) Co. Ltd. (resigned in 2014); Mr. Anthony Chay, Siemens Ltd. (resigned in 2014); Mr. Karl-Heinz Heckhausen, K.H.H. Consulting Co. Ltd. Mr. Mark Sonntag, Brandworx Asia Co. Ltd. The GTCC Annual Report 2014 was officially distributed to all participants at the meeting.

A copy of the publication was mailed to all members following the event. The Annual Report is also available for download, free-of-charge, at http://thailand.ahk.de under Events & PR section.

The meeting was followed by a networking cocktail reception at the hotel.

http://thailand.ahk.de

40 GTDEE INSIGHT

KNIPEX DONATES TOOL CASES FOR GTDEE APPRENTICES Knipex presented six of its tool cases on 20 November 2014 to German-Thai Dual Excellence Education (GTDEE) project, the two-year vocational education programme that combines classroom learning and hands-on learning under a German curriculum and standards.

The tool cases comprise two types – the Knipex Tool Case for plumbing, heating engineering and air-conditioning and the KNIPEX VDE Tool Case Electric. The cases contain a full range of indispensable basic tools.

The tool cases will be distributed to partner colleges and companies of GTDEE in order to strengthen their apprentices’ learning experiences.

Apprentices in mechanics, mechatronics and electronics will benefit from be able to use quality tools manufactured with German standards.

MITRPHOL ADMISSION SELECTION TEST FOR GTDEE From mid-February until mid-March 2015, the German-Thai Dual Excellence Education (GTDEE) project was active in assisting the Mitrphol Group in its apprentice selection process.

Mitrphol, Thailand’s largest and the world’s fourth-largest sugar producer, aims to accept 160 apprentices in 2015 for training in four professions – mechanics, electrics power, agricultural mechanics and agricultural suppor t. The classes for each profession will be conducted both in the Suphan Buri and the Khon Kaen areas in central and nor th-eastern Thailand, respectively.

Students who participate in the selection process have to take a written examination, a group aptitude test, comparable to the German standards under the dual education track. The procedure is then followed by an interview with Mitrphol staff. Students are challenged during the group work with a task of building a three-wheel vehicle within 30 minutes as well as having a chance to enjoy themselves during the race at the end.

The GTDEE team wishes all students good luck and fruitful learning sessions with Mitrphol and their network colleges.

UPDATE 1/2015

GTDEE INSIGHT 41

FEDERAL MINISTRY OF EDUCATION AND RESEARCH DELEGATION VISITS GTDEE PROJECT The German-Thai Dual Excellence Education (GTDEE) project welcomed a delegation from the Federal Ministry of Education and Research (BMBF) during 27-28 January 2015 as par t of the development of the dual vocational education project.

The delegation was led by Mr. Volker Rieke, Deputy Head and Acting Director-General of Directorate-General 2, European and International Co-operation in Education and Research. In addition to Mr. Rieke, the delegation comprised: Mr. Christian Stertz, Head of Division, EU Education Programmes: International Co-operation in Education; Mr. Michael Wiechert, Head of the German Office for International Co-operation in Vocational Education and Training (GOVET), Federal Institute for Vocational Training (BIBB); Mr. Hans-Gerhard Reh, Project Manager iMOVE "Training made in Germany", BIBB; and Dr. Michael Blank, Head of the German Chambers worldwide network for the co-operative, work-based Vocational Education and Training (VetNET) Project, DIHK, the Federal Republic of Germany.

The main objective of the visit was to review the German-Thai Dual Excellence Education (GTDEE) project, a two-year higher vocational education programme that pairs hands-on learning in the company with classroom learning in college. The project applies a Germanstandard curriculum under the German Chambers worldwide network VetNET in Thailand.

Thai Ambassador to Germany Mrs. Nongnuth Petcharatana accompanied the delegation, which held discussions on fur ther systematic exchanges between the Ministries of Education of the two countries, the development of the GTDEE programme, and the involvement of German providers of initial and continuing training.

Thailand’s Office of Vocational Education Commission (OVEC) of the Ministry of Education has embraced the German initiative as part of

Thailand’s skilled labour development plan. OVEC is the German Chambers worldwide network for co-operative, work-based Vocational Education and Training (VetNET) reviewing the “Train the trainers” programme and ways of improving the standards of examinations, training and qualifications for each profession, beginning with mechatronics.

“In order to develop the standards, the industries need to be involved because GTDEE is a demand-driven programme. Teachers and in-company trainers need to revise not only ‘what’ they teach but also ‘how’ they teach, to be able to develop both trainers and apprentices who have the readiness and suitability for adapting to the changing work environment”, according to Mr. Joerg Buck, Executive Director of the German-Thai Chamber of Commerce.

The delegation visited partner colleges and partner companies’ training centres to stress the strong relationships between Thailand and Germany. A Declaration of Intent was signed at the Ministry of Education to mark the start of the upcoming work on both sides.

The Government of Thailand considers Germany to be its role model for the implementation of real dual vocational education in Thailand. The German-Thai Chamber of Commerce has been appointed by BMBF as the principle pivot for the programme in Thailand.

World-leading German brands that have committed to the GTDEE programme include, for example, the BMW Group, Bosch Packaging, the B.Grimm Group as well as Thai companies who recently joined, such as the Mitrphol Group and Singha Corporation. For 2015, GTDEE has targeted par ticipation by 200 apprentices in the programme.

http://thailand.ahk.de

42 GTDEE INSIGHT

‘VOCATIONAL TRAINING SYSTEM SHOULD ALSO BE ACCEPTED AS A STEP TOWARDS HIGHER EDUCATION’

The German-Thai Chamber of Commerce (GTCC) recently had an opportunity to interview Mr. Volker Rieke, Deputy Head and Acting Director-General of Directorate-General 2, European and International Co-operation in Education and Research, when he led a German delegation from the Federal Ministry of Education and Research (BMBF) to Thailand during 27-28 Januar y 2015 as par t of the development of the German-Thai Dual Excellence Education (GTDEE) project.

GTCC: As the GTDEE project in Thailand has been operating for a while, how do you see the short-term future of the project? What will be the next step between BMBF and the Thai Ministry of Education?

Mr. Rieke: As of now, it is impor tant to get the input of the Government of Thailand and the relevant organisations of the country because how the project progress should really fit to your needs. We have had talks at the institution level with organisations such as BIBB and OVEC. We will define and identify what are the interests of both sides. At the governmental level, we meet once a year to discuss what we have achieved and what should be done, and what are the expectations and special interests. These things change from time to time. It is a mutual learning process for us, to learn about the interest of the Government of Thailand and the country’s industry. We will offer special instruments of operation but

UPDATE 1/2015

we are not taking the whole German system to Thailand. We give what you need and adapt to the needs within companies.

GTCC: Are we looking at nation-wide standards on the educational profile, in order to define what qualities are needed in each profession?

Mr. Rieke: A nationwide standard is the vision; it is good to have such a vision because then you know that you have achieved something.

We have not started yet to implement the nationwide standard. First, we have started with the pilot project. For example, discussions with the Government on a project like GTDEE is an excellent platform.

Many professional profiles, such as mechatronics, electronics and electrical power, are being covered by this initiative. We brought this as a platform in which companies from Germany here in Thailand or Thai companies can join.

With this pilot project, we would like to prove the excellence of the impact of dual vocational education training with the German model adapted to Thailand. We have implemented this pilot project in many countries, including China, India, the Russian Federation, Brazil and other European countries where there is now a high employment rate. So we have strong experience in implementing our system in our partner countries’ educational systems.

GTDEE INSIGHT 43

GTCC: For example, in India, China or Spain, what is the most challenging factor in implementing your system?

Mr. Rieke: There is one similarity that is a challenge for us in all of the partners abroad. In most of the countries we deal with, there is no culture of vocational training unlike in Germany and Switzerland. In our country, it is quite remarkable that around 40 per cent of young people enter the vocational training system. It is considered to be a good decision by young people because the system has high quality.

Moreover, people who start in vocational education training can go on to the higher educational system later. I think in Switzerland, for example, it is more dramatic. Only 30 per cent of young people get the baccalaureate from university, which means 70 per cent start in the vocational educational system and at the end they can be whatever they like.

In addition, one important standpoint in Germany and Switzerland is that companies pay for students undertaking further education through this system. This means Thai industries should be looking at ways of engaging in the educational system, which is not a tradition in Thailand; as such, very often, incentives to do it are needed. Although there are many cultural traits (which might need to be changed), but we have to be aware of the advantages of the pilot project. I hope the project can show everybody – parents, students and other young people – the benefits that can be gained by all participants in this educational phase.

GTCC: Talking about incentives, is there any incentive scheme from the Ministry of Economic Affairs or an international co-operation programme to support the industries’ side so that they are made more aware of the fact that they should pay more for the younger generation to participate in this programme?

what do we do with them? Perhaps they just do not fit in, so this means that vocational training offers a better opportunity for them.

I am convinced that, at this point, those young people who are not doing very well at school will be more successful if they enter the vocational education system This is important. I know that many young people enter the vocational educational system and develop because they learn well, and are excited and more confident in being educated in this practical way. Later, they go on to study mechanical engineering. The important thing is, there are different systems and it must be possible for students to be able to switch from one system to another. With this mechanism, it will be just a vocational education will be just a star ting point. Later, they will achieve a specific qualification – such as a mechanic, for example – which will enable them to work and go on to earn a higher degree.

GTCC: This is the goal what Thailand should work towards because if students enter vocational education here and later want to go for higher education – for example, engineering – maybe they will only find one university that allows them to take an additional two years to graduate with a Bachelor degree in their chosen subject after completing vocational training. At other universities, they may have to start their courses over again.

Mr. Rieke: The key is acceptance of the vocational training system by society. It is impor tant to provide students with this oppor tunity.

Everybody who enters the vocational training system should be able to move up to the higher educational system. I believe Thailand is ready to go ahead with this approach.

Mr. Rieke: There are no incentives for German industries to become involved in training young people through this particular educational system. In Germany this is a traditional system. The participants in Germany know that they will get a qualified workforce. In fact, it is already a big advantage for them. For example, in Germany we know exactly what craftsmen are able to do, but if you go to many other countries you will never know what they have learnt because there is no standard or no evaluation. For example, if somebody wants to repair a roof, in other countries they will never know if a locally-trained craftsman is able to do it properly; however, if it is a craftsman from Germany, they will be sure.

Apprentices and experts after the first PAL exam at BOSCH Packaging.

GTCC: Simply put, if a young trainee technician does not get paid enough, then he will not want to become a technician. It does not matter if there is a standard or interest or awareness in society.

What is your opinion about this?

Mr. Rieke: Well, I would like to give you a case study. In Germany, at some universities during the first semester almost half of the students quit their studies because they cannot pass their examinations, so

http://thailand.ahk.de

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UPDATE 1/2015

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Validity: now - December 2015 www.guehring.co.th

MODE SATHORN HOTEL

SHANGRI-LA HOTEL, BANGKOK

when joining Etihad Airways Corporate Program.

Tel: +66 (0)2-623-4555

Buy 1 Get 1 Free

at The Roof@38th Bar (Monday to Wednesday from 18:00-21:00hrs) and enjoy

20% discount for foods.

Tel: +66 (0)2-236-9952

15% discount

on food only at Angelini Italian Restaurant & Bar and Shang Palace Chinese Restaurant.

The hard to find in Thailand Taps and Drills Set Tap Sizes : M3, M4, M5, M6, M8, M10, M12 Drill Sizes : 2.5, 3.3, 4.2, 5, 6.8, 8.5, 10.2

UPMEDIO CO., LTD. Tel: +66 (0)2-656-0055

25% discount

for all Website, Graphic Design and Online Marketing Campaigns.

“This promotion cannot be combined with any other promotions or discounts”

Validity: now - June 2015 www.modesathorn.com

Validity: 1 April 2015 - 31 July 2015 www.shangri-la.com/bangkok

Validity: now - December 2015 www.upmedio.com

http://thailand.ahk.de

46 MEMBERS’ CORNER

NEW GTCC MEMBERS up to 31 March 2015

German-Thai Chamber of Commerce warmly welcomes 28 new members!

Antares Consulting Limited

Asian Aerospace Services Limited

10th Floor, RSU Tower, 571 Sukhumvit Road (Soi 31), Klongton Nua, Wattana, Bangkok 10110 Thailand Tel: +66 (0)2-259-6925 Fax: +66 (0)2-662-3416 E-mail: info@bangkokbase.com Website: www.bangkokbase.com

65/198, Chamnan Phenjati Business Center, 23rd Floor, Rama 9 Road, Huay Kwang, Bangkok 10310 Thailand Tel: +66 (0)2-643-0741 to 3 Fax: +66 (0)2-643-0740 E-mail: hubert@asianaerospaceservices.com Website: www.asianaerospaceservices.com

Activities Legal Services. International Business Administration and Management Services.

Serviced Office & Virtual Office Solutions.

Activities Asian Aerospace Services Ltd. (AAS) is a General Aviation company, providing professional aircraft services and aircraft maintenance & sales. With its own and most modern Aircraft fleet & Sensor technology, AAS has become an internationally well recognized provider in airborne data acquisition & analysis covering Forestry, Road, Rail, City design, Flood Simulation and many other geospatial application.

Chamber Representatives Michael Berger and Florian Maier

Arkitektura Co., Ltd. 125/1 Thonglor Soi 10, Sukhumvit 55 Road, Wattana Bangkok 10110 Thailand Tel: +66 (0)2-392-5460 to 4 Fax: +66 (0)2-392-5460 ext. 120 E-mail: info@arkitektura.co.th Website: www.arkitektura.co.th Activities Import and distribution of kitchen furniture, bathroom fitting, furniture and bedding products.

Chamber Representative Somchai Akkarawittayapoom

Mr. Axel Brauer GTCC MEMBER 2015

Saranchol Pattaya Condominium, 312/72 Floor 26 C, Naklua, Bang Lamung, Chonburi 20150, Thailand.

Tel: +49 (30) 784-8484 Fax: +49 (30) 788-1000 E-mail: mail@axelbrauer.com, Berlin@axelbrauer.com Activities Entrepeneur, Financial Equity Fund.

UPDATE 1/2015

Chamber Representatives Pratheep Boonprasom and Hubert Trunzer

AYC (Thailand) Limited 179 Bangkok City Tower, 23rd floor, South Sathorn Road, Thungmahamek, Sathorn, Bangkok 10120 Thailand Tel: +66 (0)2-105-0506 Fax: +66 (0)2-105-0503 E-mail: info@ayclimited.com Website: www.ayclimited.com Activities AYC (Thailand) Limited, as a business development consultant, offers business development, marketing and project management services to foreign companies of all sizes and industries entering the Thai and ASEAN markets.

Chamber Representatives Francisco Corella and Intira Uppacha

MEMBERS’ CORNER 47

Bangkok Pacific Steel Co., Ltd.

Fischer & Partners Co., Ltd.

259 Moo 11, Soi S.Thaiseree 2 (Suksawad 92), Suksawad Road, Naiklongbangplakod, Phrasamuthjedee, Samutprakarn 10290 Thailand Tel: +66 (0)2-425-1000 Fax: +66 (0)2-425-0111, +66 (0)2-425-8299 E-mail: bps@bpssteel.com Website: www.bpssteel.com

55 Wave Place Building, 21th Floor, Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Thailand Tel: +66 (0)2-254-1448 Fax: +66 (0)2-655-0455 E-mail: info@fischerandpartners.com Website: www.fischerandpartners.com

Activities The leading supplier of Electrical Steel, HR, CR, EG, GI, SUS, Lamination Cores, and Press Parts. The coil center that provides a full range of slitting and stamping service.

Chamber Representatives Anat Kittiratanawiwat and Manop Niramittham

Activities Fischer & Partners specialises in all type of recruitment levels, from fresh graduates till seniors and executives, for all industry sectors and any job functions throughout Thailand, Philippines, and Indonesia.

Chamber Representatives Iris Fischer and Yuddhapon Prateep

CarbonBW (Thailand) Co., Ltd.

Friedrich Naumann Foundation for Freedom, Regional Office for Southeast and East Asia

29/7 Ekkamai Soi 10 (Soi Charoen Mit), Sukhumvit 63 Road, North Klongton, Wattana Bangkok 10110 Thailand Tel: +66 (0)2-711-7527 to 8 Fax: +66 (0)2-711-7528 E-mail: r.vogel@carbonbw.co.th Website: www.carbonbw.co.th

25th Floor, BBC Tower, 29 Sukhumvit 63 Road, Klongtoey Nua, Wattana, Bangkok 10110 Thailand Tel: +66 (0)2-365-0570 Fax: +66 (0)2-714-8384 E-mail: contact@fnst.org Website: www.fnfasia.org

Activities Development, Financing, Construction and Operation of Renewable Energy Projects in Thailand and ASEAN Countries.

Activities In cooperation with local partner organisations, the Foundation provides policy consultation as well as educational programmes for interested members of the general public, NGOs and government agencies.

Chamber Representatives Roland Vogel and Stefan Dittrich

Deutsches Eck Co., Ltd. (Deutsches Eck Pub & Restaurant) Sukhumvit Soi 20, Rembrandt Tower Serviced Apartments, Kongtoey, Klongtoey, Bangkok 10110 Thailand Tel: +66 (0)2-262-0263 Fax: +66 (0)2-262-0264 E-mail: info@deutscheseckbangkok.com Website: http://deutscheseckbangkok.com/ index.php/en Activities Restaurant.

Chamber Representative Frank Boer

Chamber Representatives Siegfried Herzog and Katrin Bannach

Global Property Insurance 565/56 Moo 10, Nongprue, Banglamung, Chonburi 20150 Thailand Tel: +66 (0)38-426-231 Fax: +66 (0)38-426-232 E-mail: info@globalinsurancethailand.com Website: www.globalinsurancethailand.com Activities Property consultancy for all sales and rentals, including relocation services for expats. Tailor made insurance solutions for all kinds of commercial and private insurance needs with service excellence.

Chamber Representative Rainer Heinzmann

http://thailand.ahk.de

48 MEMBERS’ CORNER

Go Holiday Tour Co., Ltd. 446/9 Thanapol Building, 3rd Floor, Soi 20, Mithuna 11, Huaykwang, Bangkok 10310 Thailand Tel: +66(0)2-277-6000 Fax: +66(0)2-277-3399 E-mail: paisan@qetour.com Website: www.goholiday.com Activities Travel Agency.

Chamber Representatives Thanapol Cheewarattanaporn and Podchara Wisuttisang

110/725 Soi Charoennakorn 13, Charoennakorn Road, Klongtonsai, Klong Sarn, Bangkok 10600 Thailand Tel: +66 (0)2-803-8100 Fax: +66 (0)2-861-0366 E-mail: sales1_theriverbkk@klapsons.com Website: www.klapsons.com/bangkok Activities Service Residence and Private Residence.

Chamber Representatives Alex Loh and Wannasiri Kaewmanee

ILF Consulting Engineers (Asia) Ltd.

KEEEN LIMITED

88, Dr. Gerhard Link Building (B-Grimm), 12th Floor, Krungthepkreetha Road (Soi 4), Huamark, Bangkapi, Bangkok 10240 Thailand Tel: +66(0)2-730-8031 to 2 Fax: +66(0)2-730-8033 E-mail: matthias.beisler@ilf.com, virunphat.s@ilf.com Website: www.ilf.com

86, 88, 90, Chaloem Phra Kiat Rama 9 Road, Nong Bon, Prawet, Bangkok 10250 Thailand Tel: +66 (0)2-747-2102 Fax: +66 (0)2-747-0120 E-mail: info@keeen.co.th, c.chutima@keeen.co.th Website: www.keeen.co.th

Activities Provide service of consulting and advising for operating business; e.g. project development, feasibility study, environment impact assessment, financial planning, engineering and technical services.

Chamber Representatives Dr. Matthias Beisler and Virunphat Siriwatanaphonchai

ista International GmbH B.B.Building, No.1306, 54 Sunkhumvit 21 Road (Asoke), Klong Toey Nua, Wattana, Bangkok 10110 Thailand T: +66 (0)2-664-1966 to 7 F: +66 (0)2-664-1964 E: ruven.schuering@ista.com W: www.ista.com Activities Product and Quality Assurance.

Chamber Representatives Ruven Schuering

UPDATE 1/2015

klapsons The River Residences Bangkok

Activities Design and manufacture of Bioremediation agent. Execute / utilize biotechnology for industrial application with industrial ecology management.

The innovation of KEEEN reforms the process for resolving waste treatment problems by reducing hidden costs and environmental costs. This innovation can be applied in various industrial sectors to ‘Remove-Treat-and Remedy’ oil spills, organic waste and pollutants prior to discharge into natural resources.

1. Solution Wastewater Treatment 2. Solution Oil Spill Response/Cleaning up 3. Solution Industrial Application Chamber Representatives Dr. Watson Ariyaphuttarat and Chutima Charnnarong

MEMBERS’ CORNER 49

Konzept Worx Ltd.

OTT-JAKOB ASIA LTD.

58/50 Soi Nawin, Chuaphloeng Road, Chongnonsi, Yannawa, Bangkok 10120 Thailand Tel: +66 (0)2-630-3151 Fax: +66 (0)2-630-3055 E-mail: info@konzeptworx.com Website: www.konzeptworx.com

10th Floor, RSU Tower, Unit 4-5, 571 Sukhumvit Soi 31, Sukhumvit Road, Klongton-Nua, Wattana, Bangkok 10110 Thailand Tel: +66 (0)38-074-642 Fax: +66 (0)38-074-643 E-mail: info@ott-jakob-asia.com Website: www.ott-jakob-asia.com

Activities Interior Design (Commercial & Residential), Lighting Design, Product Design, Graphic and Web Design.

Activities To provide the service of marketing, sale and to distribute the tools, equipments and components of industrial machines to both domestic customers and aboard.

Chamber Representative Peter Kagermeier

Chamber Representatives Robert Christian Herrmann and Chawanporn Kaewkaemtong

Mission Hospital, Bangkok 430 Pitsanulok Road, Bangkok 10300 Thailand Tel: +66 (0)2-282-1100 Fax: +66 (0)2-280-0441 E-mail: callcenter.bangkok@mission-hospital.org Website: www.mission-hospital.org Activities Health Care and Hospital Activities.

Chamber Representatives Somchai Chuenjit and Saw Reagan Chit

NEAC Compressor Service Ltd. 178/1 Moo 7, Phe, Rayong 21160 Thailand Tel: +66 (0)38-923-700 Fax: +66 (0)38-896-182 to 3 E-mail: info@neac.co.th Website: www.neac.net Activities The proven and extended scope of service includes OEM spare parts service & maintenance, component repairs, up-grading and rebuilding of existing compressor packages. The field service for reciprocating compressors is located in Rayong.

Chamber Representative Joerg Strizek

Prime Dental (Thailand) Co., Ltd. Prime Dental (Thailand) CO., LTD.

199/215 Moo 9, Soi 4, Mooban Lanna Ville, Sanphisuea, Muang, Chiang Mai 50300 Thailand Tel: +66 (0)53-345-476 to 7 Fax: +66 (0)53-345-460 E-mail: info@primedental-thailand.com Website: www.primedental-thailand.com Activities CAD/CAM based Digital Dental Technologies and Production Facility for Customized Prostodontics. BOI promoted under section 3.9.

Chamber Representatives Christian J. Toillon and Ancharee Toillon

RĂśdl & Partner Audit Services Ltd. Empire Tower, 18th Floor, Suite 1808-1809, 1 South Sathorn Road, Yannawa, Sathorn, Bangkok 10120 Thailand Tel: +66 (0)2-670-0670 Fax: +66 (0)2-670-0673 E-mail: bangkok@roedl.pro Website: www.roedl.com Activities Statutory audits, limited reviews, extraordinary audits Chamber Representatives Philip Ende and Teera Watanapongse

http://thailand.ahk.de

50 MEMBERS’ CORNER

Schuler (Thailand) Co., Ltd.

Swissôtel Le Concorde Bangkok

Harbor Mall 5th Floor Unit 5D02, 4/222 Moo 10, Sukhumvit Road, Tungsukhla, Sriracha, Chonburi 20230 Thailand Tel: +66 (0)38-493-176 Fax: +66 (0)38-493-177 E-mail: Vicky.paibul@schulergroup.com Website: www.schulergroup.com

204 Ratchadapisek Road, Huay Kwang, Bangkok 10320 Thailand Tel: +66 (0)2-694-2222 Fax: +66 (0)2-694-2223 E-mail: thomas.reupke@swissotel.com Website: www.swissotel.com/bangkokleconcorde

Activities To carry on business of wholesale of components, parts, equipments, software, machines, engines, automation system which is used in all kind of the factory industry to foreign countries and within the kingdom of Thailand.

Activities The hotel houses 407 spacious and elegantly-appointed rooms and suites and is located on Rachadapisek Road, Bangkok’s thriving business and entertainment district.

Chamber Representatives Thomas Reupke and Surissa Vivakanond

Chamber Representatives Rolf Wittlinger and Vicky Paibul Green

upmedio Co., Ltd. 973 President Tower, Unit 10E, 10th Floor, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Thailand Tel: +66 (0)2-105-4189 Fax: +66 (0)2-656-0055 E-mail: admin@upmedio.com Website: www.upmedio.com

SIG Combibloc Ltd. Bangkok Office: 22/F, UBC II Building, 591 Sukhumvit Road (Soi 33), Wattana, Bangkok 10110 Thailand Tel: +66 (0)2-599-954 to 9 Fax: +66 (0)2-599-962 to 3 E-mail: Yanisa.Senangkanikorn@sig.biz Website: www.sig.biz Factory (Rayong Office): 33 Moo 4, Highway No. 331, Amphur, Pluakdaeng, Rayong 21140 Thailand Tel: +66 (0)38-954-100 Fax: +66 (0)38-954-105 E-mail: Pemika.Wiwatchana@sig.biz Activities Manufacturing business for sale, export and distribution of liquid food containers and sterized containers used to contain liquid food, packing machine and aseptic packing machine.

Chamber Representatives Klaus Zauner and Martin Herrenbrueck

Sincere Real Estate Co., Ltd. 25/5 Sukhumvit 16, Klongtoey, Klongtoey, Bangkok 10110 Thailand Tel: +66 (0)2-260-6200 Fax: +66 (0)2-259-1150 E-mail: broker@sincere.co.th Website: www.sincere.co.th Activities Real Estate Broker Management & Development.

Chamber Representatives Chayaphon Hunrungroj and Amornrat Chumrit

UPDATE 1/2015

Activities Digital Solutions, Web development, Online Marketing, Branding, Mobile Application.

Chamber Representatives Ami Mandel and Samrit Machielsen

Mr. Wolfgang Weiss GTCC MEMBER 2015

Sukhumvit 2288 / 305 Bang Chak, Phra Kanong, Bangkok 10260, Thailand.

Tel: +66 (0)2-107-2019 Fax: +49-9572-790081 E-mail: crash@crashexperts.asia, info@gutachter-weiss.de Website: www.crashexperts.asia, www.gutachter-weiss.de Activities Publicly appointed and sworn expert by german chamber for industry and of commerce Bayreuth (www.bayreuth.ihk.de).

Expert in road traffic accident reconstruction and analysis of mechanical failures on vehicles parts. Expert in analysis of engine failures.

MEMBERS’ CORNER 51

upmedio Co. Ltd.; Sasin Graduate Institute of Business Administration of Chulalongkorn University; OTT-JAKOB ASIA Ltd.; FindYourWayInTheWorld (Thailand) Co. Ltd; LawPlus Ltd.; Konzept Worx Ltd.; Jas Forwarding Worldwide (Thailand) Co. Ltd.; Schuler (Thailand) Co. Ltd.; Natural Ville Executive Residences; KEEEN Limited; Rödl & Partner Audit Services Ltd.; sta International GmbH; SYNNECTA Co. Ltd.; Man Diesel & Turbo Malaysia Sdn. Bhd.; AD Asia Consulting Co. Ltd; NIEDAX (Thailand) Ltd.; RLC Recruitment Co. Ltd.; Mann and Hummel (Thailand) Ltd.; and Arkitektura Co. Ltd.

NEW MEMBER ORIENTATION PROGRAMME, NO. 3 On 24 February 2015, GTCC hosted its latest New Member Orientation Programme at Swissôtel Nai Lert Park Bangkok, at which 24 new member company representatives from various industries were welcomed and provided with a general overview of GTCC services and activities. Afterwards, each member company was given an oppor tunity to introduce its business and get together for networking.

“The GTCC New Member Orientation Programme is very different from other orientation events. It is a well-thought-out programme where both the GTCC and its new members are given time to really introduce their organisations, business activities and interests, and to make meaningful connections.”

Kowit Somwaiya, Managing Partner LawPlus Ltd. “Congratulations on this well-rounded orientation programme – the growth in member numbers is impressive! Great turnout. An impressive event. It was very useful.”

Prof. Alexander Paufler, Ph.D., Faculty of Management and Strategy Dean Outerson, Head of Marketing and Corporate Communications Sasin Graduate Institute of Business Administration, Chulalongkorn University.

“This event convinced me entirely about the GTCC’s professional character. The staff demonstrated sincere motivation in suppor ting the members so that they can effectively benefit from being par t of this business network. I sensed a great deal of dynamism in the whole event. Thank you.”

Peter Kagermeier, Managing Director Konzept Worx Ltd.

“The GTCC New Member Orientation Programme has given startups a real chance to approach big German companies.”

Jean-Charles Salvin, CEO FindYourWayInTheWorld (Thailand) Co., Ltd.

http://thailand.ahk.de

52 TRADE FAIRS

GREEN WEEK BERLIN 2015 (IGW) 16-25 January 2015

Foundation, Doi Tung Development Foundation, Phufa - Occupational Incentive Project under the initiation of H.R.H. Princess Maha Chakri Sirindhorn, the Ministry of Agriculture and Co-operatives (Department of Agricultural Extension, the Marketing Organisation for Farmers, the Rice Department), the Queen Sirikit Department of Sericulture, and the National Bureau of Agricultural Commodity and Food Standards as well as Thai restaurants in Berlin and various other private enterprises to showcase their products and provide information on Thai food’s safety and standards.

IGW 2015 provided a wide-ranging overview of the food industry all over the world, and displayed the products and capabilities of agriculture and horticulture on a display area in the halls occupying 130,000 m² (2014: 124,000 m²).

Taking place in January this year for the eightieth time, the International Green Week Berlin 2015 (IGW) reconfirmed its value as a leading trade fair and as a platform for a dialogue about all aspects of agribusiness.

With 1,658 exhibitors this year from 68 countries (2014: 1,650 from 69 countries) and a high level of attendance by more than 70 ministers of agriculture from ever y continent as well as agricultural and economic policy delegations from Germany and abroad, the world’s largest exhibition for agriculture, food and horticulture attracted the largest number of participants for 44 years.

For the first time, royalty took part in a tour of IGW, in the person of H.R.H. Princess Maha Chakri Sirindhorn, who presided over the opening ceremony of the Thai Pavilion at the fair. Flanked by German Minister of Food and Agriculture, Mr. Christian Schmidt, and the Mayor of Berlin, Mr. Michael Müller, H.R.H. Princess Maha Chakri Sirindhorn introduced the German hosts to different products at the Thai pavilion.

In addition, for the second time at IGW, the Royal Thai Embassy Berlin invited nearly 30 T h ai r e pr es en tative s f ro m b ot h t h e government and private sectors, including the Royal Project Foundation, Chaipattana

UPDATE 1/2015

At the end of the 10-day event, during which crowds thronged the halls, Messe Berlin had registered more than 415,000 visitors (2014: 410,000). At euros 117 euros (2014: 114 euros), the per capita expenditure was slightly above last year’s level and provided exhibitors with sales totalling some 48 million euros. At around 100,000, attendance by trade visitors remained steady at the same high level as IGW 2014. Latvia, which assumed the presidency of the Council of the European Union in the first half of 2015, was this year’s partner country with 113 exhibitors and the largest number of foreign participants. IGW 2015 was also attended by more than 200 leading politicians and their delegations from Germany and abroad.

After the event ending, Dr. Christian Göke, Chief Executive Officer of Messe Berlin GmbH said “the IGW is firmly established as the world’s most important meeting place for agricultural policy-makers and this year, to an even greater extent, confirmed its vital roles as a leading trade fair and a platform for a dialogue involving all aspects of agribusiness and worldwide agricultural policy. This was evident not only from the bilateral discussions that took place at the IGW between Germany’s Federal Chancellor Merkel and the Latvian President Bērziņš, or between the Federal Minister for Agriculture Schmidt and his Russian counterpart, Minister Fjodorov, but also from the 10 days of meetings between trading partners throughout the entire added value chain.”

Dr. Göke also noted that “from producers to the retail food trade, this is where they all meet in order to obtain an overview of the market, establish contacts and conduct business. The consumer is at the heart of all these business activities, because there is no other event that presents the production, quality and safety of foodstuffs to consumers so clearly and so graphically.”

The eighty-first IGW will take place on the Berlin Exhibition Grounds from 15 to 24 January 2016. More details are available online at www.gruenewoche.de/en/.

For further information, please contact GTCC’s official representative for Messe Berlin GmbH in Thailand, Ms. Patamaporn Wasuwat at tel: +66 (0)2-670-0600, ext. 4010 or by email at berlin@gtcc.org.

Electric car Learn more about a promising technology. Scan the code.

ThaiGerTec

As one of the leading Thai development partners for automotive electronics, ThaiGerTec participates in the development of innovative solutions for the full electric car and intelligent hybrid systems.

ThaiGerTec is known for professional engineering competence; not only in the automotive area; with many years of experience in international research and development projects. A highly motivated team, internationally operating, a reliable partner. Get into contact and we will provide: Tomorrow’s Technology - Today ThaiGerTec Co., Ltd. • 259/1-2 Soi Sukhumvit 22 • Klongton • Klongtoey • Bangkok 10110 • Thailand Phone: +66 2 663-6096-8 • Fax: +66 2 663-6099 • www.thaigertec.com

54 TRADE FAIRS

INTERSCHUTZ 2015: FIRE PREVENTION, DISASTER RELIEF, RESCUE AND SECURITY HOT SPOT 8-13 June 2015, Hannover, The countdown to INTERSCHUTZ 2015 in Hannover has begun. This international exhibition for rescue services, fire prevention, disaster relief, safety and security is already proving to be a major magnet. The displays in the exhibition halls will be complemented by presentations on the large open-air site and test tracks, where visitors can experience numerous exciting demonstrations. Display space totalling more than 85,000 m² in five exhibition halls and on the open-air site has already been booked.

organisations, including the German Fire Protection Association (vfdb), the German Fire Ser vices Association (Deutsche Feuerwehrverband e. V.) and the German E n g i n e e r ing Fe d e r atio n (VDMA ).

INTERSCHUTZ attracts a unique mix of commercial and non-commercial exhibitors whose participation ensures ground-breaking conferences and an excellent suppor ting programme . With this lineup, visitor s can be sure that every aspect of safety and security is covered.

This international trade fair, which is staged every five years by Deutsche Messe, generally attracts around 1,300 exhibitors from more than 40 countries. INTERSCHUTZ is sponsored by a number of professional

Two display categories will be much-enlarged in 2015 – fire prevention and “non-police hazard prevention”. The ambulance service will also figure prominently. In its role as a co-promoter of INTERSCHUTZ, the German

UPDATE 1/2015

Fire Protection Association is planning a ground-breaking Rescue Conference. In addition, the aid organisation Johanniter Unfall-Hilfe has chosen INTERSCHUTZ 2015 as the venue for its annual symposium, which regularly attracts around 600 participants.

For exhibitor/visitor enquiries or more information, please contact GTCC’s official representative for Deutsche Messe in Thailand, Ms. Kamolchanok Nantaburom at tel: +66 (0)2-670-0600, ext. 4004 or by e-mail at hannover@gtcc.org. Further details about INTERSCHUTZ 2015 are also available online at www.interschutz.de.

TRADE FAIRS 55

IBA 2015: WORLD'S LEADING TRADE FAIR FOR BAKERY, CONFECTIONERY AND SNACKS 12-17 September 2015, Munich Full support by iba is being offered to exhibitors in preparing for iba 2015, the industry highlight of the year: In addition to individual in-house training before the trade fair, iba is offering exhibitors live-moderated online training, a budget planner and a so-called “stand configurator”. The comprehensive service package, called ibaCONSULTING, is the best preparation for par ticipating as an exhibitor at the world’s leading trade fair for bakery, confectionery and snacks in Munich from 12 to 17 September 2015.

As the world’s leading trade fair in this field, iba provides the ideal platform for showcasing innovations from every segment of the industry as well as a comprehensive overview of the trends and developments in the market. This is the venue to meet the most

successful companies in the bakery, confectionery and snack food business, from ar tisan bakeries to wholesale bakeries to large industrial solutions.

It is not only the diverse range of products presented at iba, which every three years extends an invitation to come to see and hear, smell and taste, that ensures an above-average number of trade visitors. It is also the live presentation of technological solutions and unparalleled, practice-oriented atmosphere that make iba the number one event for decision-makers and the world’s leading event for the trade – both nationally and internationally.

With its unique dimension, the upcoming iba 2015 is guaranteed to become this year’s key event for the trade. In addition to cover ing all facets of baking, pastr y-making and confectionery, it also deals with hot topics such as snack foods and coffee – thus giving key growth segments due consideration.

In fact, iba 2015 offers excellent oppor tunities to meet potential customers from Europe and from across the world as well as open up new business segments and approach new target groups with new strategies. .

For iba 2015, GTCC is also offering the oppor tunity to par ticipate a business delegation to Munich between 11 and 16 September 2015.

For fur ther information, please contact GTCC’s official re p re s e ntative fo r Me s s e Mue nc he n in Tha ila nd, Ms. Suvichanee Panpeng either by telephone at (0)2-670-0600, ext. 4006, or by e-mail at muenchen@gtcc.org.

http://thailand.ahk.de

56 TRADE FAIRS

AUTOMOTIVE ENGINEERING EXPO: EVERYTHING FOR CAR BODY PRODUCTION 9-10 June 2015, Nuremberg

The two-day exhibition offers specific and compact information on innovative technology trends and presents groundbreaking products and solutions for modern automotive manufacturing. The newly-founded Supplier Advisory Board, which was set up in May 2014 to supplement the existing International OEM Advisory Board, provides decisive specialist input and competent support for sharpening the profile of this event.

The second Automotive Engineering Expo, the exhibition for the car body process chain, will be held on 9-10 June 2015 at the Exhibition Centre Nuremberg, Germany.

The Automotive Engineering Expo is the world’s only exhibition that shows trends, innovations, products and services for the entire process chain of car body manufacturing, car body painting and assembly concentrated in one place.

The exhibition, with its extensive supporting programme, is the platform for specialist engineers working throughout the process chain of car body manufacturing. The Automotive Engineering Expo is the only event in the wor ld that creates an interdisciplinar y link between the current challenges facing the automotive industry and the solutions of the system supplier industry.

UPDATE 1/2015

The product spectrum of the Automotive Engineering Expo covers the following products and services: Automotive components; Automotive production facilities and line components; Hardware and software for design and development; Materials and semi-finished goods; Forming and shaping technology; Joining technology; Surface technology; Quality assurance, testing and measurement technology; Engineering services.

The focus theme at this year’s Automotive Engineering Expo is “Flexible multi-material use across the entire process chain”. At the fair and in the Congress, solutions from the automotive suppliers industry will answer the most impor tant questions from the OEM within the framework of the focus theme.

For more details visit the Expo website at www.automotive-engineering-expo.com/en/.

For exhibitor/visitor inquiries or more information, please contact Ms. Tidarat Singsuphan, GTCC’s official representative for NürnbergMesse GmbH for Thailand, either by telephone at (0)2-670-0600, ext. 3003, or by e-mail at nuernberg@gtcc.org.