The electronics industry has played an important role in Thailand’s economy as one of the main growth drivers for several decades. Approximately 13 % of all industrial output in Thailand comprises the manufacturing of electrical and electronic products, according to Germany Trade & Invest (GTAI).
Thailand has developed into Southeast Asia’s electrical and electronics manufacturing hub. In 2018, electronics exports were valued at US$ 62.1 billion, a 2.16% increase from 2017. The top shipment destination was Southeast Asia (18.5%) followed by the United States (17.9%), Europe (14.5%), Japan (11.5%) and China (9.03%). Electronic circuit boards are among the main Thai export items to Germany.
Thailand is home to many contract manufacturers in the field of electronic manufacturing services (EMS). An EMS producer, the German company Bluechips Microhouse – which has been wellestablished in Chiang Mai since its formation more than 20 years ago – offers full solutions for production.
However, Thailand’s electronics industry is about to reach a saturation point. The level of the sector’s overall production output in 2019 decreased by 8% compared with the level in 2016. Thai government’s strategy, “Thailand 4.0”, therefore promotes the Smart Electronics Industry as part of its development objectives. In the next three years, the evolution of electronic industrial structure towards the investment in electric vehicles (EV) as well as the Internet of Things (IoT) electrical appliance supply chains is projected to boost Thailand’s electronics industry, according to Kasikorn Bank Research. This will create an additional export value of approximately US$ 1.3 billion by 2022. Many players in smart electronics, including Robert Bosch and ThaiGerTec, have seen the growth opportunity.
Currently, the outbreak of the novel coronavirus (Covid-19) poses a serious threat to economies worldwide. In Thailand, economic and business activities are bounded by several drastic measures to prevent a nationwide epidemic. This has resulted in the lockdown of cities, travel bans, shorter working periods, the temporary shutting down of businesses and, in some cases, even permanent closure. The Thai economy would shrink by 5% this year in the World Bank’s worst-case scenario, with the coronavirus outbreak compounding existing problems like drought, stagnant wage growth, rising unemployment and growing poverty. According to the latest World Economic Outlook issued by the International Monetary Fund (IMF) the Thai economy will even show a negative growth of -6.7% in 2020, the biggest decrease among the 10 ASEAN member states, only followed by Singapore with -3.5%.
We are facing unprecedented challenges. Let us face them together. #PartnerInThailand
Stay healthy.
Dr. Roland Wein
UPDATE is published quarterly by the German-Thai Chamber of Commerce (GTCC) and distributed through an electronic platform to members and qualified non-members in Thailand and abroad. It is also available on our website: thailand.ahk.de/en/publications.
Any opinions expressed in articles in this e-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. For inquiries, please contact: communications@gtcc.org.
AI & Medical Imaging: Artificial Intelligence Provides Added Support for Patient Diagnosis
Innovation is a core company value at Bumrungrad and key to improving standards of care. The hospital has been an early adopter for a wide range of promising healthcare technologies. Some of the recent additions include:
• a new electronic medical records (EMR) system, known as TrakCare, that Bumrungrad physicians and medical staff use to provide a more efficient experience each time a patient visits the hospital
• a new telemedicine service, Bumrungrad Anywhere, that enables a patient to consult with a physician by mobile phone or tablet through the service’s mobile application
• IBM Watson for Oncology, an artificial intelligence -based system that supports the evaluation and decision-making process for cancer diagnosis and treatment. Bumrungrad was the first hospital in the world to launch the Watson for Oncology AI system.
Medical imaging has been another area of healthcare identified as “high potential” for artificial intelligence (AI) applications. In simple terms, the principle involves teaching a machine how to accurately read CT scans, X-rays, mammograms and other medical images that are an important diagnostic tool for identifying many types of cancer, numerous other diseases and injuries, such as fractures.
The role we envisioned for the AI system was not to be a substitute or replacement for the physician or the radiologist, whose active role in the process
wouldn’t change. But rather, AI would be a support tool for the human decision-making process, providing a “second opinion” for the doctor’s consideration during the diagnostic process. An additional benefit we anticipated for the AI imaging system is its ability to speed up the learning curve for junior doctors with less experience reading images.
Pilot Study
About three years ago, Bumrungrad began a proofof-concept pilot study of AI-based imaging software systems capable of reading CT scans. Most of the companies in the AI field are based in the U.S. or Europe, and we narrowed our list of candidates to companies whose products had already completed the regulatory approval process.
Similar to the process of obtaining regulatory approval before a new drug can be made available to patients, there are now regulatory bodies that evaluate new AI medical products. The US FDA is considered the leading AI regulator, so we prioritized applications that had received FDA 510(k) approval. This would also ensure that whichever product we selected would be commercial-ready and could be launched into service at the hospital fairly quickly thereafter.
Physician Panel
An important element of the pilot study was the panel of Bumrungrad physicians we recruited as subject matter experts in their respective fields. They represented the views and interests of the
doctors who would be the primary users of the chosen system. Physicians on the panel drafted a set of acceptance criteria that contained their key requirements for the system, and they took an active role in the process of evaluating each supplier.
The system we selected was able to satisfy the key physicians’ criteria and could be fully integrated into Bumrungrad’s existing PACS system without requiring any modification to the hospital’s CT scanning processes. As soon as each CT scan is completed, a copy of the scan is transmitted to the AI system, where the machine reads the image and makes its diagnosis — in under a minute, start to finish.
Physician Feedback
When the physician logs in to view the patient’s newest set of CT scans, an additional icon representing the AI system appears, and the physician can click on the icon to read the “second opinion” before or after they do their own review of the patient’s scans. The AI system gives the doctor the opportunity to provide feedback on each individual image reading, so if the doctor believes the AI system is providing an incorrect analysis or overlooking something, their feedback is sent to the project team at the system supplier for follow-up action, which sometimes includes modifications to retrain the relevant algorithm.
We launched the AI system almost two years ago, and the system is now in use for evaluating CT scans for four medical conditions — emphysema, cerebral hemorrhage, fatty liver disease and bone fracture. We continue to evaluate developers’ algorithms for other diseases on an on-going basis, and we expect to add to the current four in the near future, when the new algorithms satisfy our requirements and are able to add value to the patient diagnostic process.
Protecting Patient Information
The entirety of the AI system is installed at the hospital, on premise, which has the significant benefit of eliminating all patient privacy issues. That would not be the case if we had to send each image to an outside vendor or were using cloud-based software. We take great care to ensure we maintain GDPR HIPAA compliance and satisfy all PHI (personal health information) regulations.
By Dr. Teeradache Viangteeravat, Director of Research and Development, Bumrungrad International Hospital
Thai electrical industry ready to switch to smart electronics
Thomas Hundt
Thailand’s electrical industry is a success story and a major national and international player. The Government wants to develop the industry into a “smart” industry. Therefore, despite the current decrease in production, the industry keeps investing.
Approximately 13 per cent of all industrial output in Thailand is manufacturing of electrical and electronic products. Thereby, the electrical industry is the third most important industrial sector, only close behind the food and automotive industries.
According to the last census of production in 2016, 2,739 companies employed 428,000 workers and produced electrical and electronic products worth US$ 53.3 billion. This was a significant increase in comparison to 2011, when production totalled US$ 48.2 billion.
a Average exchange rate for 2011: US$1 = Baht 30.49; for 2016: US$ 1 = Baht 35.30.
b Printed circuit board assembly and printed wiring board.
Source: National Statistical Office.
The census of 2016 counted nine manufacturers of data storage devices. The manufacturers of hard drives produced an output of US$ 5.2 billion in 2016. The two biggest corporations in this sector are Western Digital (USA) and Seagate Technology (USA). Their hard drives are currently in great demand but will be replaced by solid state drivers in the future, which are not yet manufactured in Thailand.
Production is declining
In 2019, the level of overall production output of the electronics sector decreased by 8 per cent in real terms compared with the level in 2016. The assembly of printed circuit boards fell the most heavily.
The members of the Thai Electrical, Electronics and Telecommunication industries Association expect 2020 a one per cent decline in production and exports. Falling demand in the United States of America, the most important customer market, followed by South-East Asia, Europe, Japan and China as well as protectionism and the strong Baht have weakened the export business. At the same time, the industry imports various components, materials and production technology.
Source: Electrical and Electronics Intelligence Unit.
Thailand: Import and export of electrical and electronic products (in million US$)
information and communication technology
source: Electrical and Electronics Institute
“ In 2019, the BOI authorized a total of 206 foreign projects in the areas of electronics and electrical engineering, amounting to US$ 1.8 billion.”
The government presented the strategy “Thailand 4.0” in 2017 and announced the development of a Smart Electronics Industry as part of its development objectives.
The Thailand Board of Investment (BOI) grants companies that are constructing new manufacturing sites for electronic products an exemption from corporate tax for three to eight years as well as exemptions from import duties and further privileges. The extent of these exemptions depends on the technical level, the specific business activity and the site of each investment project.
In 2019, the BOI authorized a total of 206 foreign projects in the areas of electronics and electrical engineering, amounting to US$ 1.8 billion. In the previous year, BOI approved 169 similar projects worth US$ 1.1 billion.
So far, Japanese investors have invested the most, and are relatively satisfied with their investments. In September 2019, the Japan
External Trade Organization (JETRO) surveyed a total of 42 Japanese firms in Thailand in the fields of electrics and electronics. Almost half of the participants said they plan to expand their production sites during 2020 and 2021. In 2020 alone, they schedule approximately US$ 470 million to spend on replacement investments and expansions.
Thailand as a globally significant contract manufacturer in the electrical industry
Thailand is home to numerous contract manufacturers in the field of electronic manufacturing services (EMS). Foreign investors were the first to set up this segment in the 1990s. Since then, several local companies have established themselves internationally as providers of EMS. The professional magazine eeNews ranks three Thai firms among the largest EMS companies worldwide. With a revenue of US$ 1.37 billion, Fabrinet is in sixteenth place internationally. Fabrinet employs approximately 10,000 persons in Thailand, the United States, Israel, Japan and China.
The Thai corporations Hana Microelectronics (revenue in 2018: US$ 707 million) and SVI (US$ 483 million) reached 41st and 48th ranking, respectively. Hana Microelectronics manufactures in Thailand, China, the United States and Cambodia. SVI operates production sites in the Thai industrial estate at Bangkadi, in the north of Bangkok, as well as in Cambodia, Austria, Hungary and Slovakia.
Technological leaps challenge enterprises
There is a trend towards higher-value tasks in contract manufacturing, for instance in the production of electro-medicine or components for medical technology, sensors and laser technology. Likewise, the local capabilities in research and development concerning electronic components are increasing.
The EMS production site of the German firm Bluechips Microhouse in Chiang Mai, for example, offers full solutions for production. Infineon and the King Mongkut Institute of Technology Ladkrabang opened its Automotive Electronics Lab and Learning Centre in 2018. The Electrical and Electronics Institute of the Ministry of Industry links its own research and development facilities and universities with SMEs. Additionally, it examines electrical products and awards certificates of compliancy with the Thai industry standard.
A shortage of skilled labour inhibits the efforts to reach an even higher technological level. Several universities and institutes offer degree courses in electrical engineering. In the view of business representatives, the number of graduates remains too low and the education system does not adequately take into account the requirements of the industry.
Electrical household appliances for the global and domestic markets
In the manufacturing of electrical appliances a diversified industry structure has evolved. Plants of Asian investors such as Haier, Mitsubishi, LG, Sony, Samsung, Toshiba and other international corporations produce washing machines on a large scale (the global market share of such Thai products is approximately 10 per cent), refrigerators (almost 5 per cent), and consumer electronics.
Domestic firms have positioned themselves as suppliers or established their own production of air-conditioning units, fans and cooking devices under their brands. Here, too, a large part of the production is manufactured for export. Currently, the
drop in demand in foreign markets and the strength of the Thai baht is worrying the local electric appliances industry, whereas domestic demand is growing in a relatively stable manner.
Domestic sales of electric appliances on the rise
According to a forecast by Krungsri Research, the domestic market for electrical appliances will grow annually between 1 per cent and 3 per cent in the medium term. A revival of the housing market will stimulate demand for smart home appliances. Likewise, intelligent, connected entertainment systems as well as energy-efficient appliances and lighting are increasingly in demand. Moreover, e-commerce introduces new marketing channels for the distribution of electrical appliances.
The retail sales of technical consumer goods have grown 4.5 per cent in 2019, according to the market researchers at GfK TEMAX, with the revenue reaching US$ 9.8 billion. Telecommunication devices accounted for US$ 5.0 billion, while sales of electrical household appliances amounted to US$ 2.0 billion.
Trade fairs provide an opportunity for market entry
German companies can explore the respective electrical industries at several fairs. The annual trade fair Nepcon organised by Reed Tradex addresses the production of electronics components and will be hosted conjointly with other industrial trade shows from 24 to 27 July 2020 in Bangkok (www.nepconthailand.com ).
Manufacturers of air-conditioning and electrical devices gather every two years at the parallel events RHVAC and Bangkok E&E. The Thai Department of International Trade Promotion will host both trade fairs in September 2021 (https://www.bangkokelectricfair.com).
Contact details: Thomas Hundt
Director Thailand, Cambodia, Myanmar, Laos
GERMANY TRADE & INVEST
www.gtai.com
How IoT is changing life as we know it
Joseph Hong
The Internet of Things (IoT) is rapidly becoming the next big thing in the platform of innovation. A wide range of electronics, digital projects and business models are now becoming reliant on the IoT platform where sensors and devices are connected via the internet, enabling our lives to become more productive, efficient and comfortable. To exemplify this, take Bosch’s automated valet parking – drivers do not have to worry about wasting their time finding a parking spot, as they can simply use the Bosch application on their smartphones and have their car parked autonomously.1
A global prediction suggests that there will be 1 million IoT devices installed hourly by 2021.2 For that, micro-electro-mechanical systems (MEMS) sensors are integral to the functionality of IoT devices; at Bosch, 4.5 million MEMS sensors are produced daily. Sensors are the vital parts that help smart electronic devices to sense and adapt to the surrounding environment. For example, the light monitoring and control system at our Bosch Singapore campus uses sensors
1 https://www.youtube.com/watch?v=8IRA6FPoaJU.
together with our software application to automatically adjust the ceiling lights to the required brightness regardless of the time of day.3
In 2019, Thailand ranked 70 out of 100 in a study of the most digitally competitive countries. 4 This implies great potential for development and business opportunities to increase competitiveness in this area. Last year alone, Thailand registered 126 million mobile phone subscribers.5 A study forecast that internet penetration in Thailand would reach 63.1 per cent three years from now.6
Moreover, the emergence of 5G is expanding the scope of the IoT market with newer applications such as Augmented Reality (AR), Virtual Reality (VR) and fully autonomous vehicles involving both business and customer segments.
IoT for the home users
With IoT’s increasing popularity, the smart home market has also been gaining the
spotlight with a current market value of about US$ 161 million in Thailand. A big chunk of that revenue comes from smart appliances. Thai consumers have been able to reap great benefits from these appliances, which include devices such as refrigerators, washing machines, coffee machines, vacuum and mowing robots.7
Appliances connected to the internet assist home users in carrying out their daily tasks by working in the background and reducing the effort by the home users themselves. With these smart appliances doing the chores “smartly”, home users can allocate their time to carrying out other endeavors.
This can be demonstrated by Bosch’s robotic lawnmowers, which have autonomous functions and can be controlled easily from a Bosch app in the user’s smartphone.8 In this way, home users do not have to mow their lawns manually since these smart appliances have them covered.
Current trends indicate that industry is one of the sectors to be most affected by the emergence of 5G. Moreover, in the ASEAN region, IoT adaptation is mainly required in sectors such as government and public services, industries and agriculture.9
Early adopters of smart manufacturing systems have seen increased production efficiency, fewer product defects and higher customer satisfaction. With increased data transparency, thanks to IoT, manufacturers are able to manage their operations better and thus reduce inventory costs, manufacturing disruption and the overall amount of capital expenditure to operate their business.10
This can be exemplified in Bosch’s own smart factory in Thailand, which utilizes connected solutions and data analytics to improve the overall performance of the manufacturing process.
“ In 2019, Thailand ranked 70 out of 100 in a study of the most digitally competitive countries This implies great potential for development and business opportunities to increase competitiveness in this area.”
The way forward in IoT
With the influx of IoT, however, comes growing concerns with regard to security and privacy. Block-chain based solutions, enhanced cybersecurity measures and proper policy frameworks will play a major role in addressing this aspect. 11
In the coming decade, 5G services will give rise to a range of innovative use cases such as enabling fully autonomous robots and immersive remote operations. A study has shown that 5G connections will be widespread, with about 1.3 billion connections globally by 2025. For Thailand, this will create better business opportunities, especially in the telecom industries and IoT service providers as they provide IoT solutions, both for the consumer and the business segments.12
Contact details:
Joseph Hong Managing Director Bosch Thailand Tel: +662 012 8888 info.help@th.bosch.com www.bosch.co.th
On the back of seemingly relentless technological advancements, the electronics and IT industries have been experiencing a steady growth in global production over the past few years. In line with that global growth in the electronics and IT industries, Asia remains a strong base for electrical and electronics (E&E) production, with China being the largest E&E producer globally. Asia is also the largest market for E&E, accounting for around 55 per cent of all sales, according to the Electrical and Electronics Manufacturing Global Market Report 2018 by ReportLinker.
Strong production and export base
With the largest E&E manufacturing base in the ASEAN region, Thailand was ranked as the world’s thirteenth-largest exporter in 2017, according to the Bank of Thailand. The country was also reported to be among the world’s top 10 exporters for six electrical appliances. Thailand is also one of the world’s largest manufacturers of hard disk drives (HDDs). In 2019, the HDD segment is expected to have reached an approximate
export value of between US$ 12.6 billion and US$ 13.1 billion.
Another major product of Thailand’s electronics industry is integrated circuits (ICs). The country is home to many global IC producers operating with advanced assembling technology. According to the Observatory of Economic Complexity, with an export value worth US$ 12 billion, ICs accounted for 5.6 per cent of Thailand’s total export value in 2017 with the main export markets being China, Hong Kong and Singapore.
Thailand’s competitive advantage
As reported by the Office of Industrial Economics, nearly three-quarters of the total output of Thailand’s appliances is for the export market. Against this backdrop, Thailand’s Free Trade agreements (FTAs) remain highly relevant to the competitiveness of the industry. The 12 Free Trade Agreements (FTAs) implemented by Thailand enable businesses in the country to earn the rewards of almost tariff-free trade with 17 different
nations through bilateral and multilateral agreements. Through these FTAs, almost all E&E parts can be imported tariff-free into FTA partner countries.
Apart from the FTAs, Thailand also offers a workforce that is not only cost-competitive, but also trained in the relevant skills. More than 700,000 workers are employed in the country’s E&E industry, including more than 40,000 graduates with diploma certificates or higher qualifications in engineering, manufacturing and construction, as of 2017. To ensure Thailand’s education system continues to produce career-ready graduates, the Thai government has launched, among other courses, the “Work Integrated Learning Programme” (WIL) with the aim of supplying an additional 50,000 skilled workers to the industrial sector during the next five years.
IoT: The next big thing in smart electronics
More than just a network of connected devices, the Internet of Things (IoT) has
become a game changer in 21st century industry. As the technology enables physical devices and everyday objects to communicate, interact and exchange data over the Internet, they can be monitored and controlled from anywhere and at any time. With this disruptive function, the IoT has forced both producers and consumers to question the traditional concepts of products, services, and even business models. So, the growth of the IoT means that every connection is an opportunity to create a smarter world.
Bright investment opportunities
Smart electronic devices are increasingly serving a variety of functions in modern homes and buildings, including security, energy efficiency, appliances and entertainment. Through the Internet of Things (IoT), devices and home appliances are equipped with software, sensors, actuators, and connectivity, allowing these devices to connect, interact and exchange data. For example, a refrigerator with built-in sensors can alert inhabitants when the milk is about to run out. According to data and analytics firm, Global Data, the global IoT market is projected to reach US$ 318 billion by 2023 at a compound annual growth rate (CAGR) of 20 per cent, reflecting growing demand and higher adoption rates among consumers worldwide. While Thailand’s robust electronics industry enables it to keep pace with the latest developments in smart electronics and IoT technology, the country’s strong digital infrastructure opens up a ready-made market. With an estimated 41 million people (around 60 per cent of the population) connected to the internet, Thailand’s high Internet penetration provides huge potential and a solid foundation for electronic products with IoT technology.
In addition, the Thai automotive industry represents another promising industry contributing to the demand for electronics, as the new generation of cars are increasingly equipped with electronics such as smart sensors, car navigation systems and airbags. In fact, cars remain the product with the highest density of electronic components among all consumer machines. With that in mind, Thailand’s massive automotive production provides a huge market
“ While Thailand’s robust electronics industry enables it to keep pace with the latest developments in smart electronics and IoT technology, the country’s strong digital infrastructure opens up a ready-made market.”
opportunity as the country produced 1.94 million units in 2017, while it was reported by the Asia Times that more than 112 million sensors were used in the automotive industry in Thailand in the same year.
During the past 10 years, German companies also took these opportunities to invest in this industry, such as ThaiGerTec Co. Ltd. (electronic design) and Bluechips Microhouse Co. Ltd. (electronic products and electronic system control circuit boards).
Board of Investment incentives
Under Section 5 of the general list of activities eligible for promotion, the Thailand Board of Investment (BOI) offers various incentives aimed at activities in the E&E industry. For example, activities involving the integration of high-technology – such as the manufacturing of advanced technology electrical products with the ability to connect to the IoT, or with circuits or operation control systems, processing systems,
embedded systems or embedded software – will be granted an eight-year corporate income tax (CIT) exemption provided that the product has its own design process. For the manufacturing of products without their own design process, such activity will receive a five-year CIT exemption.
Apart from the incentives for activities involving the integration of high technology, the manufacturing of electrical parts and/ or equipment used for industry will receive a five-year CIT exemption on the condition that the activity has its own product design, with a three-year CIT exemption available if the activity does not have its own product design. Activities involving electronics design, including micro-electronics design and embedded system design, may also receive an eight-year CIT exemption with no cap. Meanwhile, the BOI also offers non-tax incentives, including the permission to own land, acquire relevant visas/work permits for foreign staff, and to take out or remit money abroad in a foreign currency.
For further details about privileges, conditionality and application process, please visit www.boi.go.th.
Source: Thailand Investment Review, Vol.29, No.2 February 2019 – available at http://www.boi.go.th/upload/ content/TIR_Newsletter_February2019_AW_5c908cc7bf8e5.pdf.
Thai electronics industry has high potential to become a global leader
Michael McKenzie
The electronics industry in Thailand is wellestablished. From mass-market consumer electronics and component production to outsourced contract manufacturing, global companies have long highlighted Thailand as a destination for investment and expansion. While Bangkok and its surrounding areas are considered to be the hub of industry in Thailand, there are more and more instances of firms finding success all over the country.
Northern Thailand, in particular, plays host to many such companies within the electronics sector; especially with regards to outsourcing and manufacturing. Many companies based in the region have been established in the area for decades with a strong industrial presence in the city of Chiang Mai and the surrounding provinces such as Lamphun.
Finding success in Chiang Mai
The potential of Chiang Mai as a base for an electronics company has not always been the conventional option for companies looking to establish themselves in Thailand. However, there have been many success stories where
firms have invested, grown and become established in the city. One such example is electronic manufacturing services (EMS) provider, Bluechips Microhouse, which has been well-established in Chiang Mai since its formation more than 20 years ago.
According to Managing Director Mr. Thomas Zimpfer, the strategic advantage of Chiang Mai stems both from personal and professional circumstances as “Chiang Mai represented the best balance to provide a settled lifestyle without sacrificing professional opportunity. Despite being much smaller than Bangkok, we have found a very talented labour pool in the city that allows us to offer a specialised electronics service starting from our Research and Development (R&D)
“ Northern Thailand remains a hub for such contract manufacturing partners due to the balance between competitive costing, its talented workforce and a supply chain access that allows for timely and quality production of full-electronic products.”
Department to our manufacturing processes. We have never regretted our choice of Chiang Mai and were delighted to reaffirm our commitment to Thailand when we built our new headquarters five years ago.”
The need for talented teams is vital throughout the electronics industry, but nowhere more so than in the EMS sphere. Customers that require product design and manufacturing often need their products to be continuously optimised to make them smaller, faster or sturdier than those of their competitors.
Making products of the future
With companies all over the world looking to automate processes or use technology to solve problems for their customers, it is common for EMS providers to act as the gateway between new ideas and their realisation in the marketplace. Companies involved in the manufacturing of everything from everyday consumer devices to newly emerging industries, such as e-mobility and smart-metering among others, entrust the production of billions of products to their sub-contractors. Northern Thailand remains a hub for such contract manufacturing partners due to the balance between competitive costing, its talented workforce and a supply chain access that allows for timely and quality production of full-electronic products.
Mr. Zimpfer explained that “nearly all the products contracted to Bluechips are for export. That means we can focus on our procurement, cost and quality without the added pressure of being on the doorstep of our customers. This balance has allowed companies like ours the chance to develop relationships with our clients, which have endured since our first day of business.”
However, EMS being such a global industry means that companies in Thailand have to continue to work hard to be a viable partner for their clients. Support from the Thailand Board of Investment, international chambers of commerce and the network of high-tech companies already established continue to be a vital key to further establishing Thailand as a market of high potential globally.
The challenges ahead
As with many industries, the challenges facing the electronics sector are always influenced by external circumstances. Recent years have seen shifts in the global economic climate via the imposition of tariffs between the United States and China as well as the ongoing and uncertain global threat of the Covid-19 virus. Global incidences such as these invariably have knock-on effects for industry in Thailand. Nevertheless, for the EMS industry, it is often the case that proactive companies stand to benefit rather than suffer from these volatile situations.
When tariffs were imposed on China, many Thai manufacturing companies were in a position to increase exports to the United States. While global productivity is being hit by Covid-19, businesses with the most prepared supply chains are able to sustain and improve their market shares.
By being proactive and preparing for these short-term market shifts, the electronics industry in Thailand can be best-placed to further establish its potential as a global leader within this industry. The prognosis for 2020 and the years ahead remain very exciting for Thailand.
Contact details:
Michael McKenzie
Marketing Coordinator
Bluechips Microhouse
Tel: +66 533 1000
m.mckenzie@bluechips.co.th
Bluechips.co.th
Electronics are the key to future success of the automotive industry
Markus Waidelich, Managing Director of ThaiGerTec
The automotive industry is in transition worldwide, following the solid progress of the global electric vehicles (EV) market in recent years. Electric components have also become increasingly important, especially for new safety features of modern cars and for enhancing lifestyles of customers. Therefore, the demand for extensive technical know-how and experience in developing automotive electronics is rising.
ThaiGerTec, established in 2006, is the leading Thai-German company in the design and development of microelectronics, power electronics and embedded systems for the automotive industry, with offices in Bangkok and Phuket as well as in Munich, Germany. As a member of KPIT group, ThaiGerTec’s focus is on electronic engineering solutions together with research and development projects for customers, including international car manufacturers and their suppliers. The German-Thai Chamber of Commerce (GTCC) recently had the opportunity to talk to Mr. Markus Waidelich, founder and Managing Director of ThaiGerTec Co., Ltd., about how ThaiGerTec is supporting the automotive industry with its expertise as well about future cars.
What opportunities were there in Thailand when ThaiGerTec was established here?
Before founding ThaiGerTech 14 years ago, I travelled to Asia to participate in conferences and was introduced to many people in the Thai electronic industry. I began to realise the potential of Thailand as an electronic development country. After that, I co-operated with a company in the field of research and development (R&D), which was hard due to missing know-how and slow communication. Thus, I decided to focus on forming my own company and build a team of talented young engineers and train them. ThaiGerTec was established as a foreign subsidiary of MicroFuzzy GmbH, based in Germany which enabled us to transfer know-how and implement many projects.
Initially, parts of development projects were outsourced to ThaiGerTec in Thailand mainly due to cost reduction. However, this focus has changed dramatically, as today Thailand is developed and has become an exciting location full of potential for offering our services to the Asian market. At the beginning, 100 per cent of our engineering solutions we exported. Today we see ThaiGerTec mainly as a development center for serving Asia. The location factors offer great potential, and I’m sure that Thailand will play a crucial role in the future of R&D for electric and electronic systems.
What have been ThaiGerTec’s milestones?
As a company we could have never imagined ending up having such a successful business operation. Our developments in the past five years have been extremely important. From the original five to six people working in the company, we now have more than 100 engineers. Our thanks are due to the Thai Embedded System Association (TESA) for their support that helped us to learn and understand the Thai market and paved the way for our success here.
“ Initially, parts of development projects were outsourced to ThaiGerTec in Thailand mainly due to cost reduction. However, this focus has changed dramatically, as today Thailand is developed and has become an exciting location full of potential for offering our services to the Asian market.”
Our first significant milestone was the opening of our own office building in a townhouse in the Sukhumvit area. Now we have a new, modern and stylish office in Ratchada District, offering our employees the possibility to enjoy a friendly work environment and enhance their creativity, which ensures the development of our projects are on an international standard, which is well-recognized by our customers.
Another significant milestone is our success with the electric powertrain solutions, which is the field of engineering electric cars. By entering that field, we were able to focus on the right technology at the right time, which elevated ThaiGerTec to new levels. We suddenly needed to increase the number of our employees from 20 to 90 who have been an essential resource in achieving our success. Our motivated staff also brought more knowledge into our company and made ThaiGerTec more qualified and able to survive in the market. Winning the Thai Prime Minister’s Export Award 2016 for the Best Services Enterprise category is another of our milestones. Today, we remain proud to have won this award.
How is your company different from competitors or other companies in this field?
Our field of work is unique here in Thailand, compared to other countries such as Europe or Japan. We are able to attract and train many young, highly talented employees. ThaiGerTec places a strong focus on its employees and offers them a platform with a flat hierarchy in which people can grow as professionals. We also offer them the opportunity to be part of an exciting new technology and gain unique knowledge for their future careers.
At ThaiGerTec, we can only be successful by working together as a team as a whole. We appreciate every employee’s contribution because our only company assets are our employees. The know-how of the company will be gone if people start leaving.
What are the important growth factors for microelectronics, power electronics and embedded systems in the automotive industry?
In my opinion, electric and electronic is the growth factor itself for the automotive industry. Without the electronics as well as the smart functions, the car industry would never have been able to grow as much as we see today. Currently, already 50 per cent of the value of a combustion engine car is made up of electronic parts inside the vehicle. The future electric vehicle will increase the amount of electronic and electric components even further. Up to 80 per cent of a vehicle will be comprised of electronic parts. This high percentage means that the mechanical
rate will decrease, which will then lead to the automotive industry changing from a mechanical dominated industry to an electronic and software dominated industry.
Such change will can pose many problems for traditional car manufacturers since new companies will be able to supply the new technologies that will be needed, including microelectronics and power electronics to improve the batteries and the engine, safety features such as anti-blocking systems and airbags, up until autonomous driving. All these features are based on sensors, electronics and software. As I already mentioned, businesses that are able to offer these technologies are rare, which provides companies like MicroFuzzy and ThaiGerTec the chance to succeed in this new environment. In the future, there will be many changes in the automotive industry based on these new trends, and we are only just at the beginning of developing a whole new market. ThaiGerTec is excited to be a crucial part of it.
How does ThaiGerTec sees the future of EV in general, and what is the company doing to support the EV sector in Thailand?
ThaiGerTec wants to be the provider of solutions not only for Thailand. The EV issue is global but different regions have different requirements. In Europe, combustion engine cars are using the engine head for warming the interior of the vehicle, while that is not necessary in Thailand.
We are a not a product company, we are not suppling parts for the automotive production. We develop solutions and they are mainly based on software today. Therefore, one of our focus area is automated software testing. When new software is developed the effort for testing and validation is often bigger than the effort needed for implementing the software. But it is necessary to assure that life critical systems are reliable and we can prevent recalls from car manufacturers, which can cost millions of dollars. In our test centers we do this at the highest standards gaining the trust from more and more world class car manufacturers.
What type of advantages will your company gain from the new 5G innovation?
This innovation offers many options for autonomous cars and also electric cars, especially new comfort and security features. For autonomous driving, cameras and sensors inside the car are the eyes of the vehicle. With 5G, we are able to receive sensor information in real-time from cars around us and will be able to evaluate critical situations much even better. So, 5G connected cars could process information from cars driving in front of us, or even driving around the corner in another street.
All this multi-dimensional data will allow us to look ahead, react in advance to avoid accidents which can not be avoided today. Another advantage is the transfer of highvolume data to improve smart driving. With the new 5G technology, the cameras and sensors can collect and share much more data for cars to communicate with each other. For example, with 5G technology, a car passing free spaces can send information on the open spot location to other drivers who are searching for a place to park the car. And this regardless if this space is outside or somewhere on the 4th underground floor of a parking garage. Collecting and processing all this huge amount of data will bring up a complete new industry.
Therefore, 5G technology will be an important new feature that will help us offer even better solutions and to make driving safer, more efficient and comfortable.
Where do you see ThaiGerTec in five years and what are your company’s long-term plans?
Thailand is underestimated when it comes to R&D and it needs to get away from being just a production country since it has many talented workers. The electric vehicle sector for the automotive industry also has so much potential.
Since two and a half years ago, we have been part of the KPIT Group, one of the biggest automotive engineering companies with more than 7,000 engineers. KPIT focuses solely on the automotive industry. With their network and support, we aim to grow in Thailand and build up much more knowledge. Currently, we have about 100 employees; however, our goal is to increase this number to 500, and in the longer term to 1,000 employees to ensure that we are able to offer the best solutions and services for our global customers.
What is your view on the electronics market in Thailand and ASEAN, both previously and now?
For ThaiGerTec, Thailand is our base. We are happy to be here since Thailand offers a good infrastructure that provides us with talented workers, which ensures our quality. However, despite good standards, Thailand still needs to make improvements, which our company supports. When graduates start their professional career in our company, they can be sure that we will offer professional training to improve their skills.
Thailand has been working hard to develop well in the ASEAN region, but the neighbouring countries are catching up and have been growing well in the past decade. They are developing themselves as serious competitors. However, we are happy about this situation since competitors who also work at a high level motivates us to ensure that we provide the best quality in the market and that we remain competitive.
What are your perspectives on Thailand’s electronics industry in 2020 and the Government’s current promotion efforts?
Thailand’s significant positive step is the Government’s recognition of the environmental problems and its willingness to tackle the problem. Another important topic is promotion and support for engineering and R&D activities.
Better promotion for the industry as well as for the locals can be expected to ensure a better quality of life due to wider usage of electric cars instead of the combustion engine. While Thailand is already an exciting and important market for projects that are trying to tackle pollution issues, it needs to improve its attractiveness by providing even greater governmental support (for industry to increase R&D and production and for private with benefits for eco-friendly vehicles) to remain attractive for the automotive industry.
Interviewed by Chadaphan Maliphan and Julian Kaiser, GTCC Team
GTCC Breakfast Talk with ChivaCare “2020: Healthier and Pain Free Life”
A GTCC Multi-Chamber Executive Breakfast Talk with ChivaCare on “2020: Healthier and Pain Free Life” was held on 28 January 2020 and was well-received, thanks to our speakers, participants and collaborating chambers. Speakers Dr. Surat Tanprawate, Medical Director of ChivaCare, and Mr. Martin Venzky-Stalling, Executive Director of ChivaCare, gave the participants valuable insights into key risk factors for office workers and people in management positions as well as advice on lifestyle issues such as sleep, nutrition and exercise. The consultation session after the breakfast talk was highly appreciated by the participants.
GTCC Icebreaker Networking “Welcome New Year”
GTCC’s first networking event of 2020, the GTCC Icebreaker Networking “Welcome New Year”, was organised on 30 January 2020 at the Mövenpick BDMS Wellness Resort, where about 130 guests actively gathered to strengthen their business network and friendships. The event started with welcoming remarks by GTCC Vice President, Mr. Andreas Richter. He wished all the guests happiness, prosperity and success in their businesses throughout 2020. He also thanked Premium Partners DACHSER Thailand, Lufthansa German Airlines and Mazars Thailand as well as Annual Partners Bumrungrad International Hospital and Eventbank for their continued support, and Event Partners Mazars Thailand and Mövenpick BDMS Wellness Resort for making this activity possible.
GTCC Breakfast Talk with Bumrungrad International Hospital on Coronavirus
The World Health Organization (WHO) has warned that the Novel Coronavirus (Covid-19) poses a very “grave threat” to the world. The virus, which originated in Wuhan, China, is not just deadly, it also creates turmoil for businesses worldwide. To prepare for the threat, GTCC organised a special breakfast talk on the virus, in co-operation with Bumrungrad International Hospital at the GTCC office on 13 February 2020. Dr. Montinee Sangtian, an Emergency Physician at the hospital, gave the participants an update on the current coronavirus businesses can prepare for pandemics in general.
Delegation trip to BIOFACH 2020
GTCC organised an official delegation trip from 9 to 16 February 2020 to BIOFACH 2020, the world’s leading trade fair for organic products. The participants were welcomed at the tradeshow by Mr. Markus Reetz, Executive Director of NürnbergMesse GmbH, who gave insightful information about the development of the global organic market. In addition to BIOFACH, the participants visited Dottenfelderhof — Biodynamic Farm and community to gain first-hand experience about biodynamic principles. The group then went to Brauerei zum Klosterhof Heidelberg — Organic Microbrewery and Weleda AG, manufacturer of natural beauty product and naturopatic medicines, to exchange knowledge about developing organic products.
GTCC Stammtisch 1/2020
A GTCC Stammtisch is a friendly and warm gettogether that strengthens the German-Thai business community. About 80 GTCC members, partners and friends joined the Chamber’s first Stammtisch Bangkok of 2020 on 20 February 2020 at Sixty Four Restaurant. Thanks are due to Mr. Volker Hellstern, Managing Director of Häfele (Thailand), and his team for supporting GTCC with the nice venue, food and beverage arrangements and a lucky draw.
Meeting with the ASEAN Parliamentary Group delegation in the German Parliament
German companies in Thailand represented by the GTCC President Mr. Markus Lorenzini, Vice-President Mr. Andreas Richter and Board members met with a delegation of the ASEAN Parliamentary Group in the German Parliament as well as GTCC Executive Director Dr. Roland Wein, the German Ambassador to Thailand H.E. Georg Schmidt, and Deputy Head of Mission of German Embassy in Bangkok Mr. Jan Scheer at a reception dinner hosted by GTCC on 24 February 2020.
The members of the delegation included Ms. Renate Künast, Chair of the Parliamentary Group, and delegation Head, Mr. Johann Saathoff, Vice-Chair of the Parliamentary Group as well as Parliamentary Group members Mr. Michael Hennrich, Mr. Stefan Keuter, Dr. André Hahn and Mr. Michael von Abercron.
GTCC Breakfast Talk with FRANK Legal & Tax on “PDPA – What Businesses Need to Know”
Meeting with the Minister of
Thailand’s new Personal Data Protection Act (PDPA) will come into effect on 27 May 2020. Updates on its legal requirements were provided and discussed by FRANK Legal & Tax partners Mr. Fabian Doppler and Mr. Rangsarit Suwanarat at a GTCC Executive Breakfast Talk on “PDPA – What Businesses Need to Know” on 25 February 2020 at the Bangkok Marriott Marquis Queen’s Park.
Education
With strong commitment to supporting vocational education development in Thailand, GTCC represented by Executive Director Dr. Roland Wein had a meeting with Minister of Education H.E. Natthaphon Theepsuwan on 4 March 2020 to discuss quality and skilled workforce for Thailand’s Industry 4.0, German Mechatronics curriculum development and other relevant topics.
GTCC Business Women Networking “Sustainable Business Innovation”
The first GTCC Business Women networking of 2020 was organised on 4 March 2020 at The Sukhothai Bangkok and was very well received by the 35 participating female business leaders and young professionals. They enthusiastically exchanged their views on business sustainability and practices. Thanks to speakers Ms. Mayuree Aroonwaranon, Co-founder and CEO of GEPP Sa-Ard Co., Ltd., and Ms. Lauren Kharouni, Manager at LightBlue Environmental Consulting, for sharing interesting issues with the participants concerning sustainable business innovation’ as well as how they had made an impact in their field of expertise plus practical advice on more sustainable living. Thanks also to the ‘Swap ‘Til You Drop’ Bangkok team for the fun and sustainable activities at this event.
Ordinary General Meeting (OGM) 2020
The GTCC held its Ordinary General Meeting 2020 on 12 March at the InterContinental Bangkok, with the participation of 90 representatives of GTCC member companies. The GTCC was honoured to welcome German Ambassador to Thailand, H.E. Georg Schmidt as well as keynote speaker Mr. Philipp Dupuis, Minister Counsellor/Head of the Economic and Trade Section of the Delegation of the European Union to Thailand, who gave a speech on ‘“EU-Thailand Economic Relations: Looking Ahead”.
The elections of new President, Vice President and Board Members were conducted successfully. GTCC congratulates Mr. Andreas C. Richter, Managing Partner of Blumenthal Richter & Sumet Ltd., on his election as the GTCC President and Mr. Michael Welser, Managing Director of Powertech 2004 Co., Ltd., on his election as the GTCC Vice President.
The four newly-elected Board Members for 2020/2021 are Mr. Roland Folger, President & Chief Executive Officer of Mercedes-Benz (Thailand) Ltd.; Dr. Uwe Kuehner, Country Head & Managing Director of Evonik (Thailand) Ltd.; Mr. Stefan Molnar, General Manager Passenger Sales Thailand, Vietnam, Philippines & the Mekong Region of Lufthansa German Airlines; and Mr. Krisna Thiengtham, Deputy Managing Director of Thai Nakon R.O.P
The GTCC wishes to express our sincere gratitude to to out-going President Mr. Markus Lorenzini, President and Chief Executive Officer of Siemens Ltd. and out-going Director Mr. Markus Waidelich, Managing Director of ThaiGerTec Co., Ltd. for their strong commitment and consistent contribution to the success of the Chamber.
Thailand Economic Outlook 2020
The German-Thai Chamber of Commerce (GTCC) organised the seventh Thailand Economic Outlook Luncheon on 27 February 2020 at the Rosewood Hotel Bangkok. The luncheon together with a panel discussion attracted about 120 guests from a variety of business sectors as well as from eight bilateral Chambers of Commerce in Thailand.
GTCC President, Mr. Markus Lorenzini, opened the event by welcoming the guests and speakers, and in particular the keynote speaker, Ms. Birgit Hansl, Country Manager for Thailand, East Asia and Pacific at the World Bank. Mr. Lorenzini pointed out that, in line with the global economic slow-down, Thailand’s economy experienced its slowest growth since 2014, with a rate of 2.4 per cent due to a decline in imports and exports. Despite a decrease in German-Thai trade and investments last year, Germany remains Thailand’s biggest trading partner in the European Union. Major investments by German companies in Thailand in 2019 included Mercedes-Benz, Continental Tyres, BMW Group and Covestro.
Moreover, Mr. Lorenzini emphasised the serious impact of the Covid-19 outbreak on trade and global supply chains, especially those involving China. The outbreak is expected to slow the growth of the Thai economy to 1.9 per cent instead of an earlier estimate of 2.7 per cent.
Ms. Birgit Hansl delivered a keynote speech on “Thailand: A Business Hub Ready for the Future?” She focused on a global economic outlook and accentuated Thailand’s high integration into the global economy and global value chains, making the economy very susceptible to global trends. Forecasts for the global economy in 2020 only show minor improvements compared with the economic downturn in 2019. The Covid-19 outbreak poses a new challenge to the global economy, she added.
At a global level, the creation of the number of innovations has been decreasing, resulting in low productivity growth. As these factors
contribute to stagnation of wage development, household consumption is declining.
At the regional level, Ms. Hansl stated that the decreasing growth projections for China would strengthen the growth of other economies within the region. She emphasised the importance of public spending in Thailand, the Philippines, Cambodia and Vietnam in order to boost the domestic economy as well as to subsequently increase domestic consumption.
The global slowdown in productivity development has also highly affected the Thai economy. In the past, Thailand’s weak
growth in investments during the past two decades accounting for 20 per cent, compared with a 40 per cent growth rate in the 1990s. As a result, Thailand’s innovation activities have been diminishing along with its productivity development.
In this context, Ms. Hansl pointed out the significant role of policy-making. First, some policies worsen this situation as they retain the workforce in unproductive sectors such as agriculture, and thus keep them from developing skills that could be of advantage in more productive sectors. Second, a so-called “cleaning of the business cycle” in the Thai manufacturing sector has been hindered, as highly productive firms struggle to survive in this sector and eventually exit the market, whereas unproductive firms remain. This issue is closely connected to the market dominance of just a few firms in certain sectors in Thailand. Therefore, it becomes highly relevant for the Thai government to introduce policies that promote productive firms as well as determine what keeps innovative firms from being successful.
Ms. Hansl noted that in order to further enhance Thailand’s role as an attractive destination for foreign direct investment, and in order to become a global hub, the
Government would have to address three main challenges and factors.
First, the shortage of skilled labour presents a severe limitation to Thailand’s development as a global production hub. As global value chains are changing drastically, the focus of the industry is shifting towards high value-added production that requires a highly skilled labour force. It should focus on high-quality education and training of workers.
Second, investors in the South-East Asian region look for high governmental transparency in their choice of an investment destination. This need should be taken into account in regulations and policy-making.
Third, intellectual property rights are evolving in an era of constant technological development, thus creating another determining aspect in the choice of an investment destination and making them another important field in policy-making.
Ms. Hansl concluded that Thailand’s strong monetary policy support will be beneficial to the country’s future macroeconomic development. However, she strongly emphasised the importance of implementing
regulations that would strengthen Thailand’s capacity to react to global megatrends and position the country as an attractive destination in terms of foreign direct investment.
The three-course luncheon was followed by a panel discussion on the challenges ahead for 2020, which was moderated by Mr. Joerg Ayrle, CFO of Thai Union Group. The panelists included: Mr. Lorenzini, President and CEO at Siemens Ltd. Thailand, Cambodia, Myanmar; Mr. Alexander Donau, Regional Head AsiaPacific and Director of the Board at Leschaco (Thailand) Ltd.; Mr. Andreas Lettner, CEO at Mercedes-Benz Manufacturing (Thailand) Limited; and Mr. Stefan Molnar, General Manager Thailand, the Philippines, Vietnam and the Mekong Region of the Lufthansa Group.
The panelists formed a consensus that despite the global economic slow-down, 2019 was still successful. Regarding the airline, automotive and logistics industries, they highlighted the emergence of new consumer behaviour, rising environmental awareness and the need to react to these trends.
Next, Mr. Ayrle discussed the results of the GTCC survey of the Thai Economic
Outlook 2020. A total of 49 per cent of the respondents expected the economic development of Thailand in 2020 to stagnate. However, 16.3 per cent of the respondents believed that their company revenue in Thailand would grow by at least 10 per cent.
In terms of investment, Mr. Lorenzini argued that factors such as the global economic downturn, the Covid-19 outbreak, the strong Thai baht and trade wars would have a serious impact on businesses. As investments are declining, production output as well as supply and demand are diminishing. Companies do not feel encouraged to further invest into their production facilities, resulting in a downturn in the industrial sector. However, he noted that Siemens (Thailand) Ltd. was planning on further employee expansion.
Mr. Lettner stated that Mercedes-Benz Manufacturing (Thailand) Limited would continue expanding and would follow a long-term investment plan. Mr. Donau agreed with Mr. Lettner, but added that he expected the future to be just “moderately positive” because of the strong impact of Covid-19 on supply chains and the resulting capacity limitations.
Concerning the challenges, the top three answers given in the survey were the impact of the Covid-19 outbreak, the global economic downturn and the shortage of skilled labour. Asked for a comment on these answers, Ms. Hansl stressed that the shortage of skilled labour presented a high risk for sustainable economic development, as this could drive companies and investors to other countries. Mr. Ayrle concluded that this structural challenge needed to be tackled in close co-operation with the government.
Regarding the impact of a European UnionThai free trade agreement (FTA), more than half of the survey respondents believed it would be neutral. Mr. Molnar added his optimistic view that the FTA would be of great importance in boosting the economy.
Next, the panelists discussed the sustainability. They said that Thailand had accomplished excellent work regarding sustainability during its ASEAN chairmanship in 2019 and had gained global recognition. Yet, they noted, there was still room for improvement. Concerning the logistics industry, Mr. Donau emphasised the need for technological advances and innovation in order to reduce emissions from shipping activities, which contribute as much as 4 per cent to global CO2 emissions.
As Siemens Ltd. was currently following the sustainable development goals introduced
by the United Nations, Mr. Lorenzini emphasised the importance of creating a sustainable environment for employees in their workplace. For the airline industry, Mr. Molnar said the main sustainability strategy was based on advancing technology for the development of more eco-friendly aircraft generations. Lufthansa has cut some of its short-distance regional flights, and plans to reduce the use of plastic on their flights by 50 per cent in the next few years.
Regarding competitiveness, the panelists agreed that different infrastructure improvements were crucial to strengthening Thailand’s competitiveness and to enhancing the ease of doing business, particularly in the fields of education, general infrastructure such as airports, and digital infrastructure related to bureaucracy. Mr. Lorenzini noted that the implementation of such changes and projects would take time, but that he trusted the Government of Thailand would follow an effective strategy on this matter.
The panelists concluded by agreeing that Thailand was striving towards long-term sustainable development and growth, despite rising challenges. They also noted the immenseimportance of partnership with the Government as well as ensuring a close relationship with Thai partners in order to overcome the limitations of the economy and the market.
Written by Serena Jarzombek, GTCC Corporate Services Trainee
New GTCC members
up to 31 March 2020
German-Thai Chamber of Commerce warmly welcomes 10 new members
BASIS International School Bangkok
Ms. Amanda Lynn Thies
Senior Director
Ms. I’Ling Noela Sörum Director of Admissions amanda.thies@basised.com http://BASISinternationalbkk.com
Education
Carlton Hotel Bangkok Co., Ltd.
Mr. Mark Bulmer
General Manager
Khun Achara Chuenbunchoo Director of Sales and Marketing enquiry@carltonhotel.co.th www.carltonhotel.co.th
Lean Associates Singapore Pte. Ltd.
Mr. Dirk Hallberg
Managing Director d.hallberg@la-asia.sg www.la-asia.sg Management consultancy activities
Accommodation | Food and beverage service activities
CTI Logistics Co., Ltd.
Khun Pruet Boobhakam
Deputy Chief Executive Officer - Business Development Khun Anuwat Inthraphuvasak Chief Commercial Officer ctibkk@ctibkk.com www.ctibkk.com
Transporting and storage | Real estate activities | Public administration and defence; compulsory social security
Intec Solar Ltd.
Mr. Manfred Rietzler
Managing Director manfred@rietzler.net Electricity, gas, steam and air conditioning supply
Mr. Juergen Doenges
Management Consultant and Interim Manager j.doenges@icloud.com
Spaleck GmbH & Co. KG
Mr. Andreas Ahler
Managing Director
Mr. Carsten Suehling Managing Director info@spaleck.de www.spaleck.de
Advertising and market research | Other professional, scientific and technical activities
Mr. Ulrich Kruse
Interim Manager ulrich.kruse@gmx.net
Vana Belle, A Luxury Collection Resort, Koh Samui
Mr. Dieter Ruckenbauer General Manager Khun Anusorn Songsri Director of Sales and Marketing lc.usmvl.expmgr@luxurycollection.com https://www.marriott.com/hotels/travel/usmvl-vana-belle-a-luxurycollection-resort-koh-samui/ Accommodation | Food and beverage service activities
PAL Interim Examination (theoretical) for Mercedes-Benz and BMW apprentices Batch 2018
GTDEE team members CIM Integrated Expert and GTDEE Project Director, Mr. Markus Hoffmann, together with Senior Manager, Dr. Kamonsak Suradom, Manager, Mr. Katiphot Kanoknorrasade, Manager, Mr. Anon Siharat and Assistant, Ms. Apinya Amporn organised the GTCC PAL Interim Examination 2019 (theoretical part) for the BMW and Mercedes-Benz apprentices Batch 2018 in Automotive Mechatronics, level A (German dual vocational education and training abroad). The theoretical part was held on 1 November 2019 for the 72 apprentices from Chitralada Technology Institute, Don Bosco Technological College Bangkok, Eastern Technological College (E.Tech) and Samutprakarn Technical College.
PAL Interim Examination (practical) for BMW and Mercedes-Benz apprentices Batch 2018
Mr. Markus Hoffmann, Dr. Kamonsak Suradom and Mr. Katiphot Kanoknorrasade organised the GTCC PAL Interim Examination 2019 (practical part) for the BMW and Mercedes-Benz apprentices Batch 2018 in Automotive Mechatronics level A (German dual vocational education and training abroad). The examination was prepared for the apprentices shown as below.
4-8
11-13
Co., Ltd. College Bangkok, Eastern Competence Centre, Technological College (E.Tech) Bangna-Trad Km. 19 and Samutprakarn Technical College
Chitralada Technology Institute, BMW Group (Thailand) Don Bosco Technological College Training Center, Bangkok, Eastern Technological Pathum Thani College (E.Tech)
BMW Thailand and GTDEE programme introduction
On 8 November 2019, Mr. Katiphot Kanoknorrasade and Ms. Apinya Amporn participated in the BMW Service Apprentice Program introduction hosted by Chitralada Technology Institute together with BMW Group (Thailand) Co., Ltd., Qualification and Training Manager, Mr. Wichit Tangwongcheunsuk, Senior Technical Trainer, Mr. Natthapong Lorpisanchai and Specialist Training, Ms. Pornpimol Chalermchairattanagul. A total of 56 students in Por Wor Chor 1 to 3 in Automotive Mechatronics attended the programme introduction, which was attended by students joining the BMW Service Apprentice Program in 2020.
Mechatronics project development
Mr. Markus Hoffmann and Dr. Kamonsak Suradom organised workshops on mechatronics project development for the practical teachers and students in mechatronics at Eastern Technological College (E.Tech)as listed below.
Roundtable meeting on development and exchange in the fields of environment and climate
On 26 November 2019, Mr. Markus Hoffmann and Senior Manager Dr. Kamonsak Suradom were invited by the Federal Republic of Germany Embassy to Thailand to participate in a meeting on development and exchange in ongoing and future projects in the fields of environment and climate. Deputy Head of Mission and Head of Economic Affairs of the German Embassy, Mr. Jan Scheer chaired the meeting, which was held at the German Embassy. Mr. Stephan Contius, Head of the Division in charge of the UN Post-2015 Agenda and Co-operation with Developing and Newly Industrialised Countries at the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety.
Meeting on preparation for the PAL Interim Examination in Electric Power
On 2 December 2019, GTDEE team members Mr. Markus Hoffmann and Dr. Kamonsak Suradom attended a meeting at Pathumthani Brewery Co., Ltd. on preparation for the theoretical and practical parts of the PAL Interim Examination 2019 in Electric Power level A (German dual vocational education and training abroad) in January this year for the four apprentices in Batch 2018. Also participating in the meeting were the senior technical trainers of Pathumthani Brewery Co., Ltd. and Mr. Worapong Punglikit, Head of Dual Vocational Education and Training, Don Bosco Technological College Bangkok.
International Vocational Education Committee meeting on international vocational education development
On 3 December 2019, Mr. Markus Hoffmann and Dr. Kamonsak Suradom participated in the meeting of the International Vocational Education Committee on international vocational education development, which was held at Bangkok Patana School. Representatives of the education section and various Chambers of Commerce attended the meeting, including: former Secretary to the Minister of Education, M.L. Pariyada Diskul; Advisor to the Deputy Minister of Education, Assoc. Prof. Dr. Werasit Sittitrai; the Chairman of British Chamber of Commerce in Thailand, Mr. Chris Thatcher; Vice-President of the Australian Chamber of Commerce, M.L. Laksasubha Kridakon; Vice-President of the Irish-Thai Chamber of Commerce, Dr. Hugh O’Connell; and Vice-Chairman of the Singapore-Thai Chamber of Commerce, Mr. Alan Lim.
Visit to BMW apprentices Batch 2018 and Batch 2019
On 4 December 2019, Mr. Markus Hoffmann and Dr. Kamonsak Suradom visited BMW apprentices Batch 2018 and Batch 2019 from Chitralada Technology Institute at the BMW dealership, Chaengwattana. The GTDEE team also discussed apprenticeship programme development with the BMW senior technical trainer.
PAL Interim Examination 2019 in Electric Power
Mr. Markus Hoffmann and Dr. Kamonsak Suradom organised the PAL Interim Examination 2019 in Electric Power (theoretical), level A (German dual vocational education and training abroad) for apprentices Batch 2018, which was held on 18 December 2019 at Pathumthani Brewery Co., Ltd., Pathum Thani. The four apprentices from Don Bosco Technological College Bangkok attended the examination. Furthermore, GTDEE organised an intensive course for them on 19 December 2019 on the practical part of the Electric Power Interim Examination which was held in January 2020.
PLC programme workshop for apprentices Batch 2018
Mr. Markus Hoffmann and Dr. Kamonsak Suradom organised a workshop with the lecturers from the Faculty of Technical Education, King Mongkut’s University of Technology North Bangkok (KMUTNB), on PLC Programming in Electrical Power for the four Batch 2018 apprentices who were trained at Pathumthani Brewery Co., Ltd. The workshop was held from 14 to 16 January 2020 at KMUTNB.
GTDEE Programme
for Mercedes-Benz Apprenticeship Programme Batch 2020
In January 2020, the GTDEE team members organised a GTDEE programme introduction for Mercedes-Benz apprenticeship programme Batch 2020, as listed below.
Intensive course for the PAL Interim Examination 2019 in Electric Power
On 30 January 2020, Mr. Markus Hoffmann and Dr. Kamonsak Suradom organised an intensive course for the PAL Interim Examination 2020 in Electric Power level A (German dual vocational education and training abroad) for apprentices Batch 2018. The course, which focused on the practical part, was held at Pathumthani Brewery Co., Ltd., Pathum Thani. The four apprentices from Don Bosco Technological College Bangkok attended the workshop.
Samitivej Hospital offers free virtual consultations for GTCC members
Samitivej Hospital offers unlimited free online consultations through the Samitivej Virtual Hospital to GTCC members. Samitivej Virtual Hospital is a real-time consultation with Samitivej’s doctors or medical staff via video call, available 24 hours a day. The service is available through the Samitivej Plus application, hospital website and LINE application @ Samitivej.
Samitivej Virtual Hospital service includes real-time consultations with Samitivej’s team of doctors and nurses, blood samples taken at home, medication delivery (free delivery in Bangkok), vaccination at home. Visit https:// bit.ly/2UbMXyS. At the end of your payment process, please enter the Promotional Code: GTCC20. The offer is valid until 31 December 2020.
Grand reopening of the Boehringer Ingelheim Thailand office
Following a complete renovation of its premises, Boehringer Ingelheim celebrated the reopening of its Thailand office in February. Valued guests included representatives of the German Embassy, the German-Thai Chamber of Commerce, the pharmaceutical industry association PReMA, CP, Zuellig Pharma, ILCT and the Mittraphap Group, Best Agro together with the regional leadership of Boehringer Ingelheim as well as many employees.
“This is another important milestone in the history of Boehringer Ingelheim in Thailand, and it marks our continued commitment towards the country, the people as well as our aim to add value to both human health and animal health.”, said Dr. Armin Wiesler, General Manager/Head of Human Pharma of Boehringer Ingelheim Thailand. “The new office design fosters teamwork and collaboration, and underlines our commitment to providing a great workplace for our employees.”
SPACE-F
Accelerator Demo Day: Food-tech startups pitch and meet with investors
SPACE-F, the first global food-tech startup incubator and accelerator in Thailand, hosted a ‘Demo Day’ to allow a group of Thai and international startups to present their companies to a group of investors on 5 March 2020.
After spending the past four months in the SPACE-F programme, co-founded by Thai Union Group PCL, Mahidol University and the National Innovation Agency, Thai and international startups presented their companies to a group of investors at SPACE-F Demo Day.
The seven startups, whose business models for their ideas and products were developed during the SPACE-F Accelerator programme, delivered presentations to about 70 guests including venture capitalists, investors and representatives from commercial and financial institutions based in Thailand. Their products are now being fine-tuned to the needs of the market and customers.
“SPACE-F was established with the intention not only to help food-tech startups to grow
and be successful, but also to create a food-tech ecosystem. The programme has been a proofpositive of collaboration between the Government of Thailand, academia and the private sector in contributing to the industry,” Thai Union Group CEO, Mr. Thiraphong Chansiri explained.
“As one of the world’s leading seafood producers, we are committed to innovation as a key driver of our future success. We continue to offer innovative products to consumers and keep pace with continuous lifestyle changes and sustainability impacts,” he emphasised.
Enapter reveals new electrolyser EL 2.1
On 26 February 2020, Enapter presented the new model of the patented AEM electrolyser – the EL 2.1 – at the International Hydrogen and Fuel Cell Expo 2020 in Tokyo. A year after Enapter introduced its first electrolyser, the new generation hydrogen generator significantly improves the design of its predecessor. The EL 2.1 consumes 8 per cent less energy and is significantly smaller, which translates into a 20 per cent reduction in space requirement.
Enapter’s unique approach to hydrogen generation is to produce a standardized, scalable and
flexible electrolyser. “We are very close to METI’s efficiency goal for 2030 – 10 years ahead of time. Today, we only need 4.4 kilowatt hours of electricity to produce one cubic metre of hydrogen gas,” according to Mr. Sebastian-Justus Schmidt, Chairman of Enapter. “Demand for hydrogen is expected to grow by a factor of 1,000 or more by 2030 – decentralized systems producing hydrogen on-site with no transportation cost will make a huge difference.”
A more compact EL 2.1 allows system integrators to deploy the modular electrolyser in all kinds of applications, including energy storage, Power-to-X, refuelling and industrial use. Due to the lower operating and standby level of power consumption, the energy efficiency and cost-effectiveness of customers’ overall solutions improve, Mr. Schmidt explained.
Thai-German Conference on Industry 4.0
On 4 February 2020, the German-Thai Chamber of Commerce (GTCC) organised the Thai-German Conference on Industry 4.0, supported by the German Federal Ministry for Economic Affairs and Energy (BMWi), at the Eastin Grand Hotel Sathorn in Bangkok. The conference attracted more than 120 participants from various business sectors as well as institutions, who wanted to learn more about the opportunities, challenges, and trends of Industry 4.0 in Thailand and Germany.
GTCC Executive Director, Dr. Roland Wein, opened the conference and emphasised the role of Thailand and Germany as key industry powerhouses and manufacturing hubs in their respective regions as well as both countries’ deep integration into global supply chains. He highlighted the importance of investments in new production technology to maintain Thailand’s status as the production hub of ASEAN in various key industries.
Dr. Wein also introduced the Platform Industrie 4.0, a German initiative to promote and expand Germany’s leading international position in the manufacturing industry. His speech was followed by special remarks by Dr. Alexander Raubold, Counsellor Economic and Commercial Affairs at the German Embassy to Thailand.
Keynote speaker Dr. Prapin Abhinorasaeth, President of the Thai Automation and Robotics Association (TARA), further
explained the concept of Thailand 4.0 and its approach to drive the level of automation in production in the Thai industry as well as the development of Thailand as an “innovation driven industrial nation”. The role of TARA in the robotics and automation innovation development mechanisms especially focuses on the development of automation system integrators, supply chain solutions, and prototypes for production.
Next, Mr. Chokedee Kaewsang, Deputy Secretary-General of the Thailand Board of Investment (BOI), offered an insight into the role of the BOI in the development of Thai Industry 4.0. In this context, he stated that the BOI offers support to investors by offering an investment incentive scheme. This is subdivided into investment tax incentives, which differ in respect to their activity-based or technology-based nature and non-tax incentives. Additional incentives include merit-based incentives and also area-based incentives that focus on the development of certain regions in Thailand such as the EEC provinces. He made it clear that the BOI aims to support manufacturers as well as users of robotics and automation solutions.
Mr. Thomas Hundt, Director of German Trade & Invest in Thailand, explained that Germany is the world’s leading Industry 4.0 nation. The German manufacturing industry spent last year EUR 58 billion on research and development and digital solutions transform the German economy and society. He mentioned German industries and companies who made the leap from abstract Industry 4.0 concepts to a
tangible reality and where German Industry 4.0 applications and technologies have moved from the test lab to the factory floor. For example, robotics and automation industry is one of the most innovative branches within the mechanical engineering sector in Germany. German electronics and sensors help transform production into cyber-physical systems. Therefore, he invited companies from Thailand to join and shape the digital transformation in Germany. On top investors from Thailand can count on generous Industry 4.0 support by the European Union, national programmes, from local authorities and by Germany Trade & Invest. His team of Industry 4.0 experts will assist in setting up operations in Germany. Germany Trade & Invest supports project management activities from the earliest stage.
Representatives of the following nine selected German companies provided a short presentation about their companies and its technology solutions. They included: Mr. Enrico Sielaff from gerenga Germany GmbH; Mr. Andreas Förster from BBS Automation; Mr. Karl-Heinz Brozkowski from soffico GmbH; Mr. Sarawut Laoprasert from SSI Schaefer; Mr. Klaus Hermsen from celano GmbH; Ms. Irina Kouzmenko from Allvig Technology GmbH; Mr. Chris Schürholz from Geutebrück GmbH; Ms. Josefine Walter from invenio GmbH Engineering Services; and Mr. Shreerup Singha from blue automation GmbH.
After the company presentations, the panelists Dr. Djitt Laowattana, representing the Institute of Field Robotics (FIBO), Dr. Katiya Greigarn, board member of FTI and former chairman of the Committee of Industry 4.0, and Dr. Tunyawat Somjaitaweeporn, Director of the Innovation Centre for Automation and Robotics (iCRAS) at the Panyapiwat Institute of Management (PIM), engaged in a discussion
on “Industry 4.0 insights Thailand – status quo and the journey ahead”. Mr. Martin VenzkyStalling, co-founder of ChivaCare Medical Rehabilitation, moderated the session.
Dr. Laowattana first expressed his view on Thailand’s initial position regarding the transition to Industry 4.0. He emphasized that even though Thailand was not yet a technological leader, the country thrived on a high density of industrial investments. He stated that Thailand was likely to be one of the first countries in the South-East Asian region to use and to benefit from Industry 4.0 implementation. In connection with this advancement, the development of 5G services would play a big part, he stressed.
Dr. Greigarn elaborated on the limitations of system integration that are still present throughout Thai industry. Thai companies are often positioned between Industry 2.0 and 3.0, while the automotive industry has largely adapted an Industry 3.0 standard into their production. However, for the ultimate aim of
transforming Thailand into a high-income country by 2025, the implementation of Industry 4.0 is an inevitable factor in terms of increasing productivity in Thailand, he noted.
Dr. Tunyawat introduced the unique education system of the Panyapiwat Institute of Management (PIM), which, with its focus on practical and applied training through mandatory internship periods, offers students, among other benefits, the opportunity to become acquainted with the unique challenges Thai companies are facing. This would help students to develop a better understanding of the importance of and transition to Industry 4.0 and to create solutions in this field, he explained.
The conference was followed by individual B2B meetings with the German companies represented at the event and an informal get-together.
Written by Serena Jarzombek, GTCC Corporate Services Trainee
Spielwarenmesse achieves new highs for internationality and quality
Opening its doors for the seventy-first time from 29 January to 2 February 2020, Spielwarenmesse clearly asserted its position as the world’s leading industry event. The international share of visitors and exhibitors reached the highest level ever – 63,500 independent retailers and buyers from 136 countries wended their way to Nuremberg’s Exhibition Center (2019: 66,876/132). The decline in the number of visitors was linked to fears surrounding the Coronavirus (COVID-19) pandemic. Even so, the mood among the exhibitors was extremely upbeat as 2,843 companies from 70 countries provided a comprehensive overview of the market.
The exhibitors repaid the compliment, with 92 per cent of them saying they were very happy or happy with the outcome of the fair. Taking a closer look at the visitor numbers, 66 per cent travelled to the fair from abroad. In the country ranking, the United Kingdom and the United States posted the biggest increases. In addition, the level of demand at Spielwarenmesse remained stable.
Providing a good reflection of the current market, the three trends – “Toys for Future”, “Digital goes Physical” and “ Be You”– were well-received by trade visitors and exhibitors
alike. In addition to tolerance and inclusion, the focus was on connecting digital and traditional toys and on environmental awareness.
The majority of the exhibitors clearly shared this view, with 92 per cent already pledging to return to next year’s Spielwarenmesse, to be held from 27 to 31 January 2021.
Additional details about this event are available at www.spielwarenmesse.de. For more general information about Spielwarenmesse 2021 (i.e., entrance tickets, fair catalogues, travel facilities and local accommodation, visitor brochures or information about the exhibition city of Nuremberg) please contact GTCC’s official representative of Spielwarenmesse for Thailand, Ms. Chanikarn Ngarmchalee, at tel: +66 2 055 0642 or by e-mail at chanikarn@gtcc.org.
electronica 2020: Connecting everything –smart, safe and secure
10-13 November 2020, Munich
Whether it comes to PCBs, semiconductors, sensors, connectors or displays, electronica is where the world of electronics meets. In fact, electronica is the world’s leading trade fair and conference for electronic components, systems, applications, and solutions. It is an international industry meet-up, enthusiastically viewed by exhibitors and visitors alike as an excellent business platform, efficient networking event, technical product show and forum for the highest level of industry discussion.
The 2018 electronica trade show attracted 81,471 visitors from 101 countries (50 per cent international) and 3,124 exhibitors from 53 countries (70 per cent international). In 2020, electronica is continuing its growth course and will be expanded to 18 halls with a total of 190,000 square metres. The event showcases the complete range of technologies, products and solutions in the entire electronics industry, broken down into the following exhibition sectors:
• Hybrid components
• Automotive
• Displays
• Electromechanics/system periphery
• Electronic design (ED/EDA)
• Embedded systems
• EMS electronic manufacturing services
• Test and measurement
• Micro- and nano-systems
• Passive components
• Sensors
• Services
• Power supplies
• System components / assemblies and
• Semiconductors subsystems
• PCBs and other circuit carriers
• Wireless
In fact, electronica is a display window for innovation and trends. It shapes the status quo and provides a glimpse into the future. Acting as a think-tank, it gives decision-makers, engineers and developers that all-important inspiration. In a separate hall, ‘electronica Experience’ brings electronics to life for students and young talent, and presents them in an application-oriented way.
More details on electronica are available at https://electronica.de/. For further information, please contact GTCC’s official representative for Messe München GmbH in Thailand, Ms. Patamaporn Wasuwat, by telephone at tel: +66 2 055 0641 or by e-mail at muenchen@gtcc.org.
EuroTier 2020: The world’s leading trade fair for animal production EnergyDecentral: The leading trade fair for innovative energy supply
17-20 November 2020, Hannover
EuroTier and EnergyDecentral will again be held concurrently at the Hannover Exhibition Grounds from 17 to 20 November 2020. Both trade fairs, organised by DLG (German Agricultural Society), provide the international platform on which farmers, companies and experts can successfully network, alongside an extensive exhibition and technical programme.
With 2,586 exhibitors from 61 countries and 154,948 visitors, including 46,742 from outside Germany, EuroTier 2018 impressively demonstrated its great appeal to livestock farmers and industry professionals from all over the world. As a result, the event underlined its position as the sector’s premier global trade fair. In 2020, EuroTier again intends to live up to its leading role as a driver of livestock production, with its extensive range of interesting exhibits, a comprehensive pecialist technical programme on current industry topics and attractive event services.
Consumers increasingly want to know where the food they consume comes from. To meet this demand, transparency and traceability in the value chain are becoming even more important. Feed manufacturers and livestock farmers can thus prove that their processes are in perfect order. “Farming in the food chain”, the guiding theme of EuroTier 2020, classifies livestock farming – like agriculture as a whole – as an important link and responsible partner in the value chain for food. The world’s leading trade fair will show how
transparency and traceability can be implemented in agriculture, and how it can be integrated into digital solutions for the entire value chain.
The German-Thai Chamber of Commerce is organising an exclusive delegation trip to EuroTier from 14 to 22 November 2020. For additional information and other inquiries, please contact GTCC at tel: +66 2 055 0643 or by e-mail at services@gtcc.org.
