Bangkok Business Brief - Volume 3, Issue 6 - August/September 2014

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BUSINESS BRIEF Vol. No. 3, Issue No. 6 • August / September 2014 Read new business briefs everyday at www.BBBrief.com

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2/21/14 11:49

Exporting the best of Thailand to the world

By Tom Sturrock

The work of a key government trade initiative has been instrumental in exporting the leading examples of Thai design to the rest of the world.

ture Fair), once again presenting the best of contemporary Thai design at Superstudio Piu, the eminent offsite event that takes place during the world’s leading design and furniture fair. Thailand continues to step up its presence on the international design scene, seeking to become a point of reference for top-quality production.

In April this year, Thailand’s Slow Hand Design made its fourth appearance at the famed Salone Inter- Known for a millenary culture overnazionale del Mobile (Milan Furni- flowing with colour, fragrance, craft-

work and tradition, Thailand has long been a source of fine raw materials and excellent handiwork.

This increased visibility of Thai designers on the world stage owes much to the work of the Department of International Trade Promotion (DITP), which in turn administers the Thailand Institute of Design Story continues on Page 16

Contents General Interest Tourism Real Estate Retail/Services Government/Economy IT/Comms Finance/Investment Production The Calendar

P l a n n i n g , S u p p l y i n g a n d B u i l d i n g A s i a ’s R e c r e a t i o n a l I n f r a s t r u c t u r e

2 4 6 8 10 11 12 14 18

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General Interest http://goo.gl/ozbNM

Companies must ‘change to compete’ Openness to change and human resource development are key for Thai companies wanting to stay competitive in the changing market landscape, say analysts.

Pailin Chuchottaworn, president and chief executive of PTT Plc, told a competitiveness forum yesterday that changes happened faster than before, so being ready to adapt was vital.

Thai team celebrates breakthrough effort The Toyota Corolla Altis became the first Thai production car to participate in and complete the formidable ADAC Zurich 24-Hour race at Nurburgring in Germany late last month.

The Thai contingent made up of Suttipong Smitchart, Natthavude Charoensukawattana, Nattapol Horthongkham and Sak Nana participated in the Super Production 3 category and finished the gruelling 99-lap, 2,574km race in 7th place in its class and 109th place overall among a total of 241 cars.

“To stop adapting and embracing competition means you’re getting out of the game,” he told the forum hosted by the Thailand Management Association on its 50th anniversary.

“I am excited and proud after my first experience in a world-class event like the Nurburgring 24-hour race,” Suttipong, who is also the team manager, said.

For instance, banks, car makers and retailers previously dominated the Fortune 500 list of top companies, but now most have been replaced by technology and energy operators.

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Red flags for Thai fishing industry

Regime cracking down on corruption

The recent report in British newspaper The Guardian condemning Thailand for the use of slave labour in its fishing industry is another wake-up call, ringing loudly enough for the government, private sector and all related parties to start righting the wrongs.

How bad is corruption in Thailand? A quick perusal of the literature is enough to plunge even the most optimistic person into despair, whether it be about attitudes towards the legal system and police, civil service, tax or customs bureaucracies.

This is not the first time the fishing industry has been put on the spot after allegations of forced labour and human trafficking. However, some parties have argued that the information reported by The Guardian is outdated, non-factual and unbalanced.

On June 20, the “Trafficking in Persons” report by the US State Department downgraded Thailand to Tier 3, the lowest ranking, from Tier 2 on its human trafficking watchlist.

Transparency International, in its 2013 Corruption Perceptions Index, ranked Thailand 102nd out of 175 countries, with an equivalent score to Ecuador, Moldova and Panama and just slightly better than Argentina, Bolivia, Gabon, Mexico and Niger. Just 12 years earlier, Thailand ranked 61st out of 91 countries.

But Bandid Nijathaworn, president and chief executive officer of the Thai Institute of Directors (IoD), said he is actually more optimistic than ever that the country could be on a “tipping point” for change.

“We finished better than we had expected and this success stems from close collaboration between team members.

All four drivers had to think and plan together.”

The downgrade puts the country on the same level as North Korea, Iran, Malaysia and Saudi Arabia. It is undeniable that these problems exist in the fishing industry to a certain degree, although the situation is said to be much better than in the past.

The generals under the National Council for Peace and Order have made improving public governance and clamping down on corruption a priority, and in recent weeks have reshuffled the boards of state enterprises.

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Openness not always Food giant may have the key to success paid off journalists

Entrepreneurs must keep ‘big promises’

New registrations drop away sharply

Meritocracy, pragmatism and honesty are the three core elements of success for governments of the future, and they are not necessarily hallmarks of Westernstyle democracy, said Professor Kishore Mahbubani, dean of Singapore’s Lee Kuan Yew School of Public Policy.

“Scrappy” Asean entrepreneurs need to learn how to make and keep their “big promises” to deliver world-class services, Ron Kaufman, a world-famous speaker and consultant on customer services, has insisted.

Partly because of controls on the retail prices for the government lottery, the number of newly registered companies in Thailand dropped sharply, by 19 per cent, in the first half of the year, according to the Business Development Department.

From his experience working in Asean for more than two decades, he noticed Asean entrepreneurs are “streetwise” or scrappy, meaning they possess an ability to make things happen despite all the chaos or obstacles.

Last month, only one new lottery-trading firm was set up, compared with 817 firms in June last year. In the first half of the year, seven new lottery traders registered, compared with 5,000 last year.

In his keynote address titled ‘The Government of the Future’ at a Thailand Management Association (TMA) conference, he said the best-performing government was “the completely non-democratic society called China”.

On the other hand, social scientists have shown more failures than successes in democratic governments around the world over the past 25 years. A recent paper issued by Princeton University revealed remarkable data that showed decision-making by US policy makers served the special interests of lobbyists.

The Thai media has come under the spotlight following the release of a report which claims journalists received monthly payments from a food giant to boost its public image. The report was uploaded on the Thailand Information Centre For Civil Rights and Investigative Journalism (TCIJ) website Monday morning.

The report claimed the company closely monitored social media and paid several social media websites to make sure negative news or comments about the company were deleted or did not appear.

Charoen Pokphand Foods Plc (CPF) later admitted the report referred to its public relations unit but said the report had been doctored and distorted.

TCIJ director Suchada Jakpisut said the centre obtained the report late last year and had already verified the documents with many sources. She did not say who compiled the report.

They are also resilient, which means having an ability to bounce back even when the situation does not look so good. But the weakness of Asean entrepreneurs is that, because they are in small markets, they have not necessarily adapted to global practices, especially on “making and keeping promises”.

“One of the biggest challenges for the US in governance issues is: In Asia, when you pay regulators to do you a favour, it is illegal. In the US, when you pay congressmen to do for you a favour, it is legal,” Mahbubani said.

Among those allegedly receiving monthly payments were 18 media organisations and officials (all the names were blacked out by the TCIJ) on radio, TV and printed media.

“Scrappy don’t need to make big promises. They make little promises. But with AEC (Asean Economic Community), you’re going to see big competition coming in. You need to learn how to make bigger, more powerful promises, and how to keep promises,” Kaufman said.

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However, the department projects that the overall number of newly registered companies will continue to increase and reach 65,000 this year, thanks to better investor confidence and stronger economic growth under the junta.

“More new firms will register in the country, particularly property and construction businesses, thanks to the National Council for Peace and Order’s policy to stimulate economic growth and stabilise politics,” said Pongpun Gearaviriyapun, director-general of the department.

“The number of newly registered firms should reach 60,000-65,000 this year.”

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Chinese shoppers spend most money Chinese travellers splurged the most on tax-free shopping last year, accounting for 27% of spending as they increased transactions by almost a third, according to Global Blue.

Russians were the second-biggest spenders with 17%, though they made the most transactions, while Indonesians placed third with 4%, Global Blue, the world’s biggest operator of tax-refund points, said in a study released July 15.

Bitec unveils big plans for expansion Bhiraj Buri Group, owner of Bangkok International Trade and Exhibition Centre (Bitec) in Bang Na, is embarking on a Bt6-billion expansion in the capital aimed at raising its profile among international venues.

The new development of a convention centre and office tower in eastern Bangkok will become a top destination for MICE (meetings, incentives, conventions and exhibitions) businesses in the region, chief executive officer Prasarn Buri said.

TAT introduces new insuance package

Bangkok no longer top destination city

The Tourism Authority of Thailand (TAT) is confident the “Thailand Travel Shield” insurance package will draw the attention of foreign tourists, with at least 20,000 insurance policies expected to be sold in the first month.

Political conflicts in Thailand have caused Bangkok to lose its position as the world’s top destination city to London, according to the MasterCard Global Destination Cities Index 2014.

The agency teamed up with four insurers — Muang Thai Insurance, Chao Phaya Insurance, Siam City Insurance, and Krungthai Panich Insurance — to offer the travel insurance service for foreigners.

The package launched yesterday has a premium of 650 baht for a seven-day stay in Thailand. The insurance includes 1 million baht of coverage including accidents, poor health, baggage loss or damage, emergency medical evacuation, repatriation and/or repatriation of mortal remains.

Bangkok relinquished its top spot to London but still came second, retaining its leading position among Asia-Pacific cities despite an estimated 11% decline in international visitors to 16.4 million this year.

The political unrest has taken its toll on Thai tourism since the last quarter of 2013. London is the world’s No.1 destination city with an estimated 18.7 million visitors this year. It has been a tight race between London and Bangkok in recent years.

Total spending by Chinese tourists increased 20% last year after tripling between 2009 and 2012.

Of the Bt6-billion budget, Bt3 billion will go to an exhibition, convention and concert hall, which will become one of the largest in the country and also the highest with a 25-metre ceiling, while Bt3 billion will go to a 29-storey tower combining commercial and office space. The new convention and tower project will complement Bitec. It is now under construction and is expected to be completed in 2016.

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Riverside hotels waiting on revival

Optimism building among Samui hotels

Supatra plans to expand interests

Onyx intends to open more hotels globally

Luxury hotels along the Chao Phraya River have held talks with the Bangkok Metropolitan Administration on reviving their business.

Hotels on Koh Samui expect a good July-September high season thanks to improving tourism sentiment. Tanongsak Somwong, president of the Tourism Association of Koh Samui, is confident average hotel occupancy on the island will return to a normal 90% next month. July occupancy has been 65-70%, a decline of 20 percentage points year-on-year.

Supatra Group, operator of Chao Phraya Express Boat Co, has announced expansion plans that include more tourismrelated businesses, hotels and retail ventures.

Onyx Hospitality Group, one of the biggest Thai hotel-management firms, plans to raise its presence among global players by operating 15 more hotels domestically and overseas over the next three years.

New projects include a 25-room boutique hotel at Tha Tien pier worth 100 million baht and a market at Tha Wang Lang pier, also worth 100 million. Construction of the hotel is scheduled to start in the fourth quarter, while the market project is due to start in the second half of next year.

According to its three-year plan (20142016), the group is scheduled to operate 15 more hotels: six Amari, three Shama, four OZO, and two in The Mosaic Collection (TMC).

“The Chinese are easily the most-numerous and highest- spending globe shoppers,” said Global Blue. “If the last decade is anything to go by, the amount spent will continue to increase.”

Hotel managers and senior executives of eight hotels located along the river met with the Deputy Bangkok Governor for a review of the current campaign, launched in April 2014, which has so far failed to revive the sector.

“The group will propose new strategies and marketing plans and may seek help from government officials in boosting occupancy rates,” said a source.

Thailand’s tourism situation has been gradually returning to normal after the junta lifted its nationwide curfew. Centara Hotels and Resort reported average occupancy of 80-90% at the Centara Grand Beach Samui.

The Thai Hotels Association (THA) recorded a lower average occupancy rate for Bangkok hotels in April, compared to 60 per cent in the same period last year.

The rate further declined to 30-40 per cent in May after the military coup on May 22, before picking up to nearly 45 per cent in July.

Nuan Ek-In, managing director of The Kala Samui resort, said average occupancy of 80% was slightly lower than last year due to lingering effects from the May 22 coup. The number of European tourists has dropped by 20%, but more Chinese travellers are compensating for that fall.

The launch of the Bangkok Riverside Marketing Partnership aimed to promote hotels on the bank of the river as the preferred destination especially for meetings, conventions and exhibitions..

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The first tourist to buy the package was from Hong Kong.

Bangkok overtook London last year to become the top destination city with 18.5 million visitors compared with 17.3 million for the British capital.

The TAT governor said the insurance will help tourist confidence rebound and encourage foreigners that want to visit Thailand.

According to MasterCard, London was also the top city in terms of visitor spending, estimated at US$19.3 billion with 13.4% growth in 2014.

Established in 1919, Supatra Group began by operating a ferry boat service along the Chao Phraya River.

The group also plans to increase its total property portfolio to 81 by 2018, from 37 currently.

“River transport is not the main route for Thai commuters now. The firm faces a decreasing number of passengers every year from as many as 50,000 to 60,000 people each day in the past decade,” said group chairwoman Supapan Pichaironarongsongkram.

This year, Onyx is set to take over operation of Amari Dhaka in Bangladesh and OZO Pattaya in Thailand. Next year, it will operate Amari Residences Jomtien in Pattaya, Amari Johor Bahru in Malaysia, Amari Dali in China, OZO Penang in Malaysia, OZO Kandy and OZO Galle in Sri Lanka, Shama Beijing and Shama Chengdu in China, Pattaya Bay Resort, and Nova Residence Pattaya.

“Bookings for the July-September high season are slow this year. Normally, bookings should reach almost 90% but are hovering at about 80% now,” Ms Nuan said.

The group started an aggressive expansion into retail business in 2011 by spending 16 million baht to renovate two piers for markets with rental space.

It will continue taking on more hotels in 2016, namely Amari Pecatu Bali in Indonesia and Amari Huidong and Shama Pazhou Guangzhou in China.

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Soldiers unlikely to close down Patong

Tokyo still favourite for Thai travellers

New campaign aims to increase revenue

Dusit upbeat despite about future growth

The top-ranking soldier on Phuket has confirmed that the Army and the National Council for Peace and Order have no plans to crack down on the Patong nightlife industry.

Tokyo remains the favourite destination for Thai holidaymakers, according to the latest survey conducted by the online accommodation booking website Hotels. com.

In a move to boost the economy, the Tourism Authority of Thailand (TAT) yesterday announced campaigns and marketing plans for next year with a revenue target of Bt2.2 trillion from local and international visitors.

The international appeal of the Thai hospitality brand is opening opportunities for domestic chains to duplicate their success worldwide as space shrinks at home.

“We haven’t even considered it,” Maj General Peerapol Wiriyakul insisted when asked about the reports. “We understand that Patong is a tourist destination, and we would prefer to just let the tourists enjoy their nightlife.

For the second year in a row, the Japanese capital held the top position in the 2013 list of 20 popular cities that Thai travellers sought to visit.

“We are fine allowing Patong officials to take care of the businesses. We will not interfere as long as the businesses are not harming anyone.”

Weerawit Krueasombut, president of the Patong Entertainment Business Association, was surprised to hear of reports that the Army was considering a nightlife crackdown.

Tokyo was followed by Hong Kong, Singapore, Osaka, Siem Reap and Kuala Lumpur.

Thai holidaymakers’ love affair with almost anything Japanese, be it the attractions, lifestyle, food, culture or shopping, has made the entire country their holiday destination of choice.

TAT governor Thawatchai Arunyik said the authority expected up to 28.9 million foreign visitors next year – increasing this year’s projection of about 26 million foreign tourists by 13 per cent – and hoped to boost this year’s target of foreign-exchange revenue by 15 per cent to Bt1.4 trillion.

TAT is also hoping to encourage 148 million trips by local travellers next year, which should generate up to Bt800 billion in revenue. Next year’s projection is increased by 9.5 per cent from this year’s.

“First of all, I haven’t heard any such rumours,” he said. “I once sent a letter to the NCPO explaining that Patong is a tourist destination, and I believe they understand the nature of Patong’s nightlife.”

Visa waivers for Thais making short visits as of a year ago, more affordable package tours and discount charter and budget airfares were other contributing factors, travel analysts said. The Japan National Tourism Organization said the number of Thai visitors to the country last year surged 74% to 453,642.

TAT has also lined up action plans and strategies for local and international markets under the long-running “Amazing Thailand” campaign. The agency is also preparing new tourism products to attract foreigners, such as “Thainess” and the “Thai way of living”.

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Secondary provinces MBK overhaul enjoy more promotion almost finished Tourism operators in Nakhon Si Thammarat have high expectations for a big increase in their revenue to 12 billion baht next year now as the province is being seriously promoted in Europe.

The Nakhon Si Thammarat Tourism Business Association set the figure at double last year’s revenue, said adviser and former president Suleeporn Serewiwattana.

The 2015 marketing scheme outlined by the Tourism Authority of Thailand (TAT) is aimed at promoting secondary provinces including Nakhon Si Thammarat, whose major highlight is its popular Khanom district.

Nakhon Si Thammarat has high potential to grow, especially among high-end European tourists who are looking for fresh destinations. Besides Khanom district, other attractions are Khao Luang National Park and the Baan Khiri Wong traditional community.

MBK Hotel & Tourism has been rebranding its six properties in order to deal with a changing business environment and market demand.

“Hotel & Tourism is one of MBK’s eight business units. The group is in the final phase of rebranding, which is expected to be complete next year. The hotel unit is generating the third most revenue, following the shopping complex and rice business,” Supanit Vimooktanon, deputy managing director for operations and marketing, said.

He said hotels in Bangkok had suffered for about eight months since political forces caused a crisis. Average occupancy at hotels in the capital was 40 per cent during the first six months, down from 75 per cent during the same period last year. Moreover, lengths of stay in Bangkok were only 2.7 days per trip, compared to 10-15 days in Phuket, Samui and Krabi.

Baan Khiri Wong has been likened to a big happy family, and locals grow fruit such as mangosteen, rambutan and durian.

He said a lot of tourists shortened their stays in Bangkok and stayed longer in destinations in the provinces for fear of security and safety in the capital. Moreover, foreign tourists are making reservations at the very last minute.

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Thailand is well placed to evolve into Asia’s hospitality centre, thanks to the rapid overseas expansion of its hotel chains over the past 20 years and a major shift in international perceptions towards its signature services and products, a leading hotel executive said last week.

Chanin Dhonavanik, chief executive officer of Dusit International, told The Nation that domestic hotel chains are comfortably competing against global brands due to accumulated experience and success stories.

“In Asia, key players that are still expanding overseas are now based in Singapore, Hong Kong and Thailand. Hotel companies from Thailand stand out for unique Thai services,” he said.

“Thankfully, Thai cuisine and spas are also internationally famous.”

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Developers betting on market upswing

Architects leading green revolution

Resort destinations remain unaffected

Second-half market growth of 10-15% now foreseen due to post-coup recovery in home-buyers’ confidence.

Innovative design trend results in sustainable structures; more focus on ecofriendly construction products.

The property market in resort destinations and the luxury segment have seen little effect from political problems, as indicated by new projects attracting interest from Thai and foreign buyers.

Residential developers have revised their business plans and will launch additional projects over the remainder of the year after witnessing a recovery in demand last month.

A condo launched in Khao Tao in Prachuap Khiri Khan province and a luxury riverside project in Bangkok have both received a positive response.

They now target second-half growth of between 10 and 15 per cent compared with the same period last year.

Given the impact of climate change on people and their lifestyles, architects and engineers are increasingly designing new buildings under the “green” concept, using innovation across all aspects of the design and construction process in order to produce sustainable, eco-friendly buildings.

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Real Estate

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Demand still high for luxury apartments Up to Bt400,000 per square metre MahaNakhon, two other top-end projects benefit from strong demand amid limited supply of prime land; major focus placed on interior design Three luxury condominium projects worth more than Bt25 billion in total will be completed in Bangkok in 2016, with sale prices ranging between Bt250,000 and Bt400,000 per square metre. The projects are being developed by three listed companies: Sansiri, Quality Houses and Pace Development.

“The property market in Hua Hin, Chaam and Pran Buri received less of a negative impact from the political crisis,” said Jirawattchara Amatayakul, managing director of hotel and property developer Kao Tao Bayview Resort Co.

Such a boost over the remainder of the year means that the property market for the full year is now likely to decline by 10-15 per cent from the 2013 level, which would be a marked improvement on earlier estimates of a drop of between 25 and 30 per cent, according to leading developers.

Associate Prof Dr Jin Anotai, lecturer in the Department of Environmental Engineering at King Mongkut’s University of Technology Thon Buri, said that engineers and architects working today should take extra care to design homes and other buildings with concern for the environment firmly in mind, and that both project design and construction materials used should be environmentally friendly.

“We decided to buy 3 rai [0.48 hectare] at soi Nana for Bt2.4 billion, or an average price of Bt1.7 million per square wah [4 square metres] early this year because we saw the demand to buy luxury condominiums in this location,” said Quality Houses president Rutt Phanijphand.

The company has sold 30% of its 321-unit Celeste Condominium Hua Hin in Khao Tao worth 1.7 billion baht.

“Our hotel in Khao Tao also got Thai customers during the political crisis to replace foreign guests,” said Mr Jirawattchara.

“We have revised up our revenue target from Bt41 billion this year to Bt45 billion, thanks to the return of consumer confidence to the market after the coup on May 22,” said Pruksa Real Estate president and CEO Thongma Vijitpongpun.

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Buritara earmarks funds for projects

Central Bangkok still the hottest property

Hemaraj reports ‘reasonable start’

Sermsuk sets sights on riverside location

Buritara Development Co. has set aside an investment budget of Bt2 billion to develop condominium projects in tourist destinations in Thailand, Myanmar and Laos this year and next.

To serve the demand for luxury condominiums close to Bangkok’s central business district, Pruksa Real Estate will offer The Reserve on Kasemsan 3 near Chulalongkorn University and Siam Center at a starting price of Bt4.5 million per unit.

The company signed 20 contracts, 13 of which were new customers and the rest project expansions from existing clients.

Half of the contracts were with Japanese companies and more than 25 per cent were with the automotive industry, Hemaraj president and chief executive officer David Nardone said.

Sermsuk Plc (SSC), bottler of the Est soft drink brand owned by liquor tycoon Charoen Sirivadhanabhakdi, has opened bidding for its riverside 10-rai plot on Charoen Nakhon Road with a starting price of 1.55 billion baht.

Half of that will be spent this year to develop three projects in Bang Saen and Pattaya, and the rest in 2015 to develop condo projects in Chiang Mai, Phuket, Myanmar and Laos, chief executive officer Tite Chinsomboon said.

Up to 70 per cent of the investment budget is from the company’s cash flow and new capital, which will increase its registered capital from Bt5 million to Bt105 million in the second half of the year. The rest will be borrowed from commercial banks. The company also plans to apply to list on the Market for Alternative Investment next year, Tite said.

Senior vice president Wichai ChulaOlarnkun said Buritara Development was negotiating with a Japanese property firm for development of a condominium project in Yangon. The joint venture plans to build a condo-resort in Myanmar’s largest city worth between Bt200 million and Bt300 million.

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The seven-storey condominium complex will feature an L-shaped open space and courtyard to give residents the feeling of being close to nature as well as to the mass-transit system.

Pruksa managing director Prasert Taedullayasatit said the architecture was “modern luxury classic”, taking its inspiration from the heritage of central Bangkok.

“This is a reasonable start to 2014. We had the consideration [issue] of political disruptions as well as [a Bt600-billion backlog of Board of Investment] approvals just commencing from June of this year. There is renewed optimism of investor confidence as domestic demand and export markets recover,” he said.

Each of its 273 units will look out on the courtyard while also featuring facilities to support the needs of younger condo owners who seek privacy and convenience.

“We see high activity levels, broad country representation, and a return to a more normal run rate. Full-year guidance will be updated further at the time of our second-quarter results.”

For example, the project will have a swimming pool and gazebo, a tea room, an elegant lobby, and a fitness and steam room.

Construction will start in November and will be complete by mid-2015.

He said he also believed that industrial investment in Thailand and its business strategy remained attractive long-term.

Thailand continues to be a preferred location for manufacturing and growth because of reasonable costs, good infrastructure, and expanded market access.

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Building design should have a wastedisposal system, with zero waste being the main goal in terms of having a system that equals the building’s beauty, he said.

The bidding process aims for transparency in selling the property of SSC, a SETlisted firm, shortly after listed developer Golden Land Property Development Plc, owned by Mr Charoen’s sons Panot and Thapana, was called in April by the Securities and Exchange Commission to clarify the sale of a 31-rai plot on Ramkhamhaeng Soi 28 to Sirisub Patthana Co. Mr Charoen is expected to be interested in SSC’s riverside plot due to his penchant for collecting land plots nationwide, particularly in prime locations.

SSC reported to the Stock Exchange of Thailand yesterday its board of directors approved a sale via public auction for a plot on the bank of the Chao Phraya River used as a distribution centre for its drinks business.

Colliers International Thailand has been appointed as the sole agent.

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7

New projects ready to go in Khon Kaen

Sansiri forecasts big end to the year

Ticon poised to bounce back quickly

Golden Land plans to break even quickly

After delays from the political crisis in the first half of this year, at least 15 housing projects worth a combined 4 billion baht are scheduled for launch in Khon Kaen in the second half, says the Khon Kaen Real Estate Association.

Sansiri plans to launch 13 projects worth Bt23.6 billion this second half of the year to boost presales to Bt30 billion this whole year after logging only Bt4 billion in the first half.

Ticon Industrial Connection Plc (TICON), a SET-listed developer of readybuilt factories and warehouses, is set to review its revenue estimates for 2014 but said business outlook is improving as stability returns.

Set-listed developer Golden Land Property Development Plc (GOLD) plans to spend 5 billion baht to develop FYI Center, an office and hotel project in Bangkok, and projects it will break even within 10 years.

Managing director Virapan Pulges said investment sentiment has been improving as potential customers are coming for site visits this month.

As the location near Soi Phai Singto in Klong Toey is off the central business district, office space at FYI will tap the grade B segment, while the hotel with 239 rooms will offer accommodation for 2,500 to 3,000 baht per night, said president Thanapol Sirithanachai.

President Channarong Buristrakul said overall housing market sentiment in this northeastern province had improved since the political problems eased, prompting local residents to shift their attention away from politics to business.

“Many more customers have returned to project sites to see sample houses this month, while commercial banks now talk about mortgage campaigns,” he said.

The 15 projects will be single houses and townhouses introduced by local and Bangkok-based developers, which will launch 100 and 200 units per project, respectively.

“We delayed three projects in the first half of this year out of the planned nine projects worth Bt11 billion,” chief executive officer Apichart Chutrakul said.

“Only six projects worth Bt9.8 billion went ahead because we were waiting to see if the market would recover after facing the long political turmoil from the last quarter of last year up to the first five months of this year.”

Besides constructing the infrastructure and residential buildings to deliver to customers on time, the company has also set aside Bt4 billion to buy land for developing residences next year, of which Bt1 billion has already been used up in the first half of this year.

“There were visit cancellations by overseas customers in the first half of the year due to the political turmoils but not any more. There was also initial concerns after the coup late May but the situation has become clearer,” he said.

Condominium developers have remained silent about potential projects, as the high-rise residential segment is now suffering a 50% oversupply.

“Although our shareholders approved debentures worth Bt5 billion, we may not need to issue them this year,” he said.

Around 80% of Ticon clients are Japanese companies and international small and medium-sized enterprises (SMEs) that are part of the supply chains. Automotive industry represent 35% of Ticon’s business followed by electronics industry at 31%, so the end of the Yingluck Shinawatra-government’s first-time car buyer scheme means Ticon’s land sales were affected too.

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“We are to use one of Fraser and Neave’s hotel chains,” he said.

Singapore-based Fraser and Neave was acquired early last year by Charoen Sirivadhanabhakdi’s group, while Golden Land’s major shareholders are his two sons, Panot and Thapana.

FYI Center will be located on a plot of nearly nine rai opposite Queen Sirikit National Convention Center. It will comprise two 12-storey office buildings and a 14-storey hotel.

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8

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BMW expands with new Thonburi outlet German luxury car and motorcycle maker BMW is expanding its dealership network in Thailand, the latest addition being a branch of long-time dealer Europa Motor in Thonburi.

BMW Group Thailand plans to increase the number of dealerships from the existing 17 to 23 by the end of the year, while the number of Mini dealers will be raised from the current six to 11. BMW Motorrad dealers, meanwhile, will be increased to from six to eight, according to company president Matthias Pfalz.

“Europe Motor Praram 2 will be led by a new generation to continue their family’s excellence in both sales and service management,” he said.

Thai Airways ready to make HQ changes Thai Airways International is prepared to move its Thai Smile Air subsidiary to Don Mueang International Airport and to offer early retirement to 900 staff members as part of a three-year revival plan. The national carrier expects to return to profit by 2017.

Relocating Thai Smile’s operation from Suvarnabhumi Airport to Don Mueang is expected to result in more passengers for the subsidiary carrier. THAI will talk with Nok Air about giving some routes to Thai Smile. The move is also aimed at dealing with the competition from other low-cost carriers, especially AirAsia, which have been stealing a lot of passengers from THAI and Thai Smile.

Europe Motor has been a BMW dealer for more than 25 years.

However, Patee Sarasin, chief executive officer of Nok Air, said relocating Thai Smile Air would damage THAI as it could affect the parent airline’s connecting flights. He added that it would be difficult to get approval for this plan.

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Starbucks prepares Emirates lounge to double Thai stores opens for business Leading US coffee chain Starbucks remains optimistic about premium coffee demand in Thailand, aiming to double its store count to 400 over the next five years in the face of fierce competition.

Emirates has opened its refurbished lounge at Suvarnabhumi Airport (BKK), Bangkok, for First Class and Business Class passengers, as well as Platinum and Gold members of Emirates Skywards.

Murray Darling, managing director of Starbucks Coffee (Thailand) Co, said at least 30 new Starbucks stores will open each year during 2014-18 in Thailand, the fastest rate in Asean.

The carrier spent USD1million on refurbishing the 516m2 facility which can now accommodate up to 136 passengers.

The company expects to reach 400 stores here by 2018.

The 200th Starbucks store recently opened with a drive-through service at the Fast Fac project in Wang Noi district, Ayutthaya, one of the fastest-growing industrial areas in the country.

Plans call for opening 20 more branches in the second half of 2014, bringing the total to 220 by year-end.

The airline has 35 lounges across its global network, all of which are schedule for refurbishment and Suvarnabhumi becomes the 24th project completed.

The lounge offers an extensive menu of complimentary hot and cold gourmet buffet and an extensive beverage service.

Amenities include LED TVs, comfortable leather armchairs, a choice of formal and relaxed seating, a quiet area, dining area, prayer room, shower facilities, business centre, water feature and bespoke art.

The new stores will open under the original store concept and as drive-throughs.

Starbucks has enjoyed steady double-digit growth in sales for the past five years.

Emirates currently operates 42 weekly flights to Bangkok with three A380 flights daily, and officials expect the lounge to cater form more than 300 passengers per day.

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9

Yanhee will build aged care facility

More flagship malls planned for Bangkok

Pattaya welcomes major water park

New facilities could transform capital

Yanhee Hospital Group plans to build a 500-million-baht care centre for the elderly in Nakhon Pathom in the next three to five years that will provide nursing home services to patients.

Bangkok is expected to become a truly world-class shoppers’ paradise in three years when major mall developers complete their flagship projects and expand the capital’s retail options.

Amazon Falls Co plans to promote Pattaya as a global tourist attraction with the launch of what it bills as the world’s first Cartoon Network-themed water park.

Bt200bn worth of projects expected to turn Bangkok into ‘city-lifestyle destination’ this decade by combining shopping, residential and office functions

Managing director Dr Supot Sumritvanitcha said the hospital group would build the facility on 200 rai in the central province’s Nakhon Chaisi district.

“By 2017, the world’s foremost brands will expect more than just a nice mall as the place to locate their primary outlet.

The high-spending consumer will also expect more than just rows and corridors of shops at the place where they choose to spend most of their time,” Chadatip Chutrakul, chief executive officer of Siam Piwat Co, said.

Cartoon Network Amazone in Chon Buri near Pattaya is spending tens of millions of baht on advanced information and communications technology to build an innovative entertainment service and let visitors enjoy an interactive experience with the park facilities. The system aims to create varied experiences to attract Thai and foreign visitors.

New mega-property projects worth more than Bt200 billion combined in Bangkok are expected by observers to turn the capital into a city-lifestyle destination within Asean.

The care centre will feature about 100 houses for senior citizens.

Yanhee is expanding into the nursing home business because many of its patients have been using its hospital services for the past 30 years and have now grown old, Dr Supot said.

“There’s huge demand for elderly care but not enough supply. Moreover, Thailand is still facing a shortage of 80,000 nurses a year,” Dr Supot said.

The retail environment is about to go through another sea change – the first since Siam Paragon came on the scene almost 10 years ago, she said.

He said apart from elderly care, the group has introduced more skincare products for sale in modern trade outlets such as 7-Eleven convenience store.

Siam Piwat, operator of Siam Centre and Siam Discovery Centre, in partnership with Magnolia Quality Development Corporation and Charoen Pokphand Group, the joint owners of leading property-development projects, recently launched Iconsiam, a Bt50-billion riverside mega-mall and residence.

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Thailand’s Cartoon Network Amazone will compete with Singapore’s Universal Studios, Malaysia’s Legoland and Hong Kong’s Disneyland. The Cartoon Network Amazone sits on 5.7 hectares near Pattaya. Attractions in 10 themed entertainment zones include wave pools, speed-racing slides and family raft rides.

At least four developers have announced that major projects will be kicking off this year, and that they will be completed within five to seven years. The companies have been preparing the projects over the past two or three years. Central Pattana is investing more than Bt10 billion to develop CentralWestGate in Bang Yai district.

The project will comprise a shopping centre, condominium and office building.

“If the themed water park in Thailand is successful, we will expand to build a new park in other Southeast Asian countries,” said Liakat Dhanji, founder and chief executive of Amazon Falls.

The Mall Group has set aside Bt50 billion to develop six new shopping centres in Bangkok and the provinces. Three of them will be located in the capital, with one of the complexes – the Bangkok Mall Bang Na – to be constructed at the Bang Na-Sukhumvit intersection.

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Bangkok becomes cheaper for expats Bangkok has become a markedly cheaper place for expatriates to live in the past year, according to Mercer LLC’s annual list of the world’s most-expensive cities.

Thailand’s capital fell from 66 to 88 on the 2014 survey of 211 cities worldwide, which measures the comparative cost of more than 200 items, including housing, transportation, food, clothing, household goods, and entertainment. Rankings are based on fluctuations of currencies against the US dollar and the impact of inflation on goods and services using New York as a baseline.

Luanda, Angola remained the world’s most-expensive city for expats and three Asian cities – Hong Kong, Singapore, and Shanghai – ranked in the top 10. Mercer said Beijing (11), Seoul (12), Osaka (23), Guangzhou (24), Nagoya, Japan (40), Nanjing (47), Tianjin (50), Shenyang (54), Taipei (61), Yangon (66), and Chengdu (71) all are more expensive than Bangkok this year.

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Consumer spending High-speed train recovering after coup could boost trade

Junta accommodates Japanese investors

Consumer sentiment improved further in June, hitting a six-month high amid improved confidence in the country’s economic and political prospects after the military took control and promised to revitalise the fragile economy.

The National Council for Peace and Order (NCPO) has agreed to set up three working groups — on transport, energy infrastructure and water management — as Japanese investors call for speeding up work in these areas.

The University of the Thai Chamber of Commerce (UTCC) yesterday reported the country’s consumer confidence index rose for the second consecutive month in June to 75.1 points from 70.7 in May, when the index advanced for the first time in 14 months.

Improving consumer confidence stems mainly from the military’s intervention on May 22 to end the months-long political mayhem, said Thanavath Phonvichai, UTCC’s vice-president for research.

Other key contributing factors include the Bank of Thailand’s recent upgrading of the growth outlook for the remainder of the year and its raising of next year’s GDP growth estimate to 5.5% from 4.8%. The junta’s accelerated payment of 92 billion baht owed to rice farmers under the controversial subsidy scheme.

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The National Council for Peace and Order (NCPO) has ordered the Office of Transport and Traffic Policy and Planning (OTTPP) to conduct a feasibility study for a high-speed train project from Laem Chabang port to Nong Khai province, a route expected to benefit the country’s trade.

According to a source familiar with the matter, the route will connect to highspeed train lines in Laos and southern China, improving trade in Asean. The source said the Chinese government will shoulder all the investment cost for the high-speed trains in Laos.

The Laem Chabang port-Nong Khai route was not originally included in the Yingluck Shinawatra government’s 2-trillion-baht infrastructure development plan, which was reshuffled by the junta.

Hisamichi Koga, president of the Japanese Chamber of Commerce (JCC) in Bangkok, said ACM Prajin Jantong agreed at last Friday’s NCPO meeting to set up the three groups, with water management given the highest priority.

“As the previous master plan’s 35-billionbaht water management plan did not cover the whole country, they will revise the plan to cover Thailand as a whole and implement it accordingly,” Mr Koga said.

The earlier plan called for four high-speed lines: from Suvarnabhumi airport to Rayong province for 221 kilometres, from Bangkok to Chiang Mai for 745 km, from Bangkok to Nong Khai for 615 km and from Bangkok to Padang Besar.

“The JCC requested the development of hard infrastructure such as roads, rail, east-west and southern economic corridors with Myanmar, plus soft infrastructure such as customs and transport agreements to improve connectivity with neighbouring countries after the necessary reviews of planning and financing,” Mr Koga said.

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August / September 2014

IT / Comms

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Cheaper package available for EPL fans Pay TV operator CTH has joined with PSI Holdings, the country’s largest satellite network provider, to cut English Premier League (EPL) package prices and attract the mass viewer market in a bid to have 1.2 million subscribers during the football season starting next month.

“PSI is another key driver to help expand our subscriber base,” said Chirdsak Kukiattinun, chairman of CTH’s executive committee.

“After PSI got our EPL content to air on its platform earlier this year, we attracted 100,000 new subscribers in only two months. The next move is to reduce EPL package prices for football fans.”

CTH is the broadcasting rights holder for EPL in Thailand for the 2013-15 seasons. With the partnership, CTH and PSI are offering three new yearly EPL packages for the season beginning on Aug 16.

Available now, the first package is 4,999 baht a year for new subscribers.

11

Booking application moving ahead quickly William Heinecke, CEO and chairman of leading hotel and food company Minor International Plc, is among the investors piling 145 million baht into HotelQuickly, a last-minute hotel booking application in Asia-Pacific.

This is the second round of fundraising from investors in HotelQuickly, which has more than 180 million baht in funds so far.

With the additional capital, HotelQuickly plans to accelerate its product development, marketing and hiring to drive sales across Asia-Pacific and secure its leadership in the region.

“HotelQuickly expanded at a phenomenal pace last year to emerge as the clear leader in last-minute bookings in AsiaPacific, with more than 3,000 partner hotels and 100 destinations,” said Eiji Araki, a board member at GREE Inc. “We’re seeing a clear shift from online to mobile, and as traditional booking channels lose ground, there is tremendous opportunity for a service like HotelQuickly.”

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Data paints picture of new digital era

Mobile ad market booming in Thailand

There are many channels that companies can avail themselves of to create an experience and a relationship between products and target consumers, especially through cyberspace as well as the new arrival of digital television, which has led to the rapid proliferation of digital videos.

Thailand was the ninth-biggest mobile advertising market in the world last quarter, with banner ads soaring 30 per cent year-on-year to more than two billion delivered to 12.4 million Thais.

With digital TV, viewers are no longer limited to four or five free TV channels as in the past. It allows marketers to finetune and break down their consumers into ever-smaller segments.

The availability of third-generation mobile-telephone networks over the past two to three years has also allowed Internet usage and penetration to draw many consumers away from watching programmes on TV to various websites.

According to a survey of internet usage conducted by the Information and Communications Technology Ministry, 54 per cent of consumers use portable equipment such as laptops, smartphones and tablets. More interesting is the tendency for younger internet users to watch movies and listen to music online. More than 33 per cent of people from the ages of 20-24 use the Internet for such purposes.

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“The data confirm Thailand as one of the fastest developing digital economies in the world,” Wararin Phoonuch-Aphai, country manager for global advertising network BuzzCity, said.

“And as smartphone penetration grows from its current 60-per-cent level, we expect more advertisers to keep increasing their digital presence through banner ads, apps, mobile sites, and more, to connect with customers.”

Growth in the first quarter was 42 per cent. The dramatic surge in mobile advertising was supported by changing trends in online shopping globally and in Thailand.

An in-depth report from BuzzCity, commissioned by the Mobile Marketing Association, revealed that more people than ever before were shopping online and on their mobile devices. Half of mobile users made purchases online regularly.

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Forbes recognises top Thai companies Skytrain advertising firm VGI Global Media was voted Thailand’s best small company in this year’s Forbes Asia’s “200 Best Under a Billion” survey.

With a market cap of $1.3 billion, $36 million in net income and an estimated sale value of $100, the public-transport and retail ad firm joins eight other Thai companies on the annual list of what Forbes considers the “best” small- and mediumsized traded companies.

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August / September 2014

Fico spends big to buy German hotels Fico Corporation aims to acquire up to 20 hotels in the European Union in the next two years after investing 80 million euros (Bt3.5 billion) to buy nine hotels in Germany.

Fico chief executive Krit Srichawla said yesterday that revenue from the company’s hotel portfolio was small and it wanted to strengthen the portfolio, with the acquisition of hotels in Europe the main focus.

The company plans for its hotel portfolio to represent between 10 and 20 per cent of its total revenue in the next few years.

Dusit preparing to expand to Myanmar

Duty-free threshold set to be revised

Dusit International aims to cash in on Myanmar’s growing popularity as a leisure and corporate destination through the opening of the dusitD2 Residence in Yangon.

The Customs Department’s working committee will ask newly appointed director-general Somchai Sujjapongse to raise the duty-free limit on new personal items bought abroad from 10,000 at present, said a source at the department.

“Myanmar bears enormous potential in the tourism industry, offering a wide diversity of attractions ranging from historical, cultural and beaches and even snowcapped mountains in the north,” Rustom Vickers, director of development, said.

The hospitality company has more than 10 properties under planning and development in the neighbouring country.

The hotel/serviced apartment project, which is a joint investment with a Japanese firm active in the country, will target long-stay guests and corporations with businesses in the city, supplemented by holidaymakers.

The proposed new limit is in the range of 80,000 to 100,000 baht, the source said, adding that the current duty-free limit is too low and not in line with economic circumstances.

The 10,000-baht import duty-free restriction has been in place for several decades and is not in accordance with the increased income of Thais and foreigners.

The Customs Department recently raised the limit on the amount of money each traveller can take out of the country to 500,000 baht from 50,0000 baht previously to comply with the growing value of cross-border trade.

Thailand also is represented by Asian Indulators, Chularat Hospital, Dcon Products, Dhipaya Insurance, Pylon, Southern Concrete Pile, STP&I and Vibhavadi Medical Center. Chinese firms once again dominate this year’s list, which ranks firms with between $5 million and $1 billion in sales.

“The supply [of hotels] in Europe is interesting for us and Europe’s interest rates are reasonable,” Krit said.

He said buying more hotels would help diversify the company’s revenue and the economic climate in the EU made the move more attractive.

“Located in an accessible and pleasant environment, this property will serve the market very well and definitely improve the accommodation offerings in the city,” he said.

The Customs Department recently caused panic among both passengers and airline crews by posting signs announcing the enforcement of the limit.

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August / September 2014

13

KTAM poised to accrue more profits

Foreign companies get greater freedom

Krung Thai Asset Management expects to increase its assets under management (AUM) by 74 billion baht in the second half this year to meet its target of 105 billion in new AUM this year.

Foreign companies will be allowed to launch initial public offerings in Thailand and simultaneous offerings of equities in Thailand and other countries.

Chief executive Chavinda Hanratanakool said the new assets will be accumulated from investment in short-term fixed income, property and infrastructure funds.

The firm’s AUM as of June 2014 stood at 576 billion baht, an increase of 30.8 billion from last year.

Investment in mutual funds gained 39.6 billion baht and property funds rose by 15.22 billion baht, but investment in provident funds dropped 20.6 billion and private funds fell 3.39 billion.

If the company achieves its AUM target this year, its total AUM would be 650 billion baht.

“Development of the Thai capital market to become even more attractive to global investors is, of course, among the Securities and Exchange Commission’s priorities,” secretary-general Vorapol Socatiyanurak sai.

“One way to support that is to ensure that our capital market can also serve as a fund-raising channel for the expansion of foreign businesses and economies while providing a variety of investment choices for investors.”

The Capital Market Supervisory Board recently approved regulations on foreign equity offerings both primary and dual.

KTAM plans to boost AUM growth by launching a property fund and an infrastructure fund. The combined value of the funds would be 20 billion baht.

In a primary offering, companies float shares to the public and become listed on the Stock Exchange of Thailand (SET). In a dual offering, foreign companies launch IPOs in Thailand and other countries simultaneously or in a proximate period.

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Microinsurance on the rise in Thailand

Dealers call for new gold trading system

In order to expand the availability of life and non-life insurance policies to those who are unable to afford standard premiums, the Office of the Insurance Commission (OIC) has been promoting microinsurance in Thailand.

The Gold Traders Association has agreed to set up a physical gold exchange, a move aimed at paving the way for the country’s first-ever spot gold market and regaining the 30% of trade volume lost to Singapore and elsewhere.

As the word suggests, a microinsurance policy carries a low premium and limited coverage. The policies are largely standardised and have simpler wording (approved by the OIC), containing all possible information that the customer might need to know about the policy.

The need for a more efficient and reliable trading system led seven major gold dealers to support the idea, said association chairman Jitti Tangsithpakdi.

From a public policy standpoint, microinsurance is aimed at providing financial protection in respect of personal risks, addressing perceived problems in Thailand’s pension system, reducing debt owed to loan sharks, addressing social inequality and increasing savings. Multiple insurance companies, insurance industry associations and the OIC have been involved in its development.

“But a serious talk was held today and gold traders need to work out the details with the Stock Exchange of Thailand,” he said. “We hope that a draft [for setting up the exchange] is completed this year and trading can begin next year.”

The SET has been in talks with gold dealers for some time to persuade them to support a physical gold market.

Microinsurance premiums range from 200 to 1,000 baht per year, depending on the product. Several policies are available, including life insurance, residential fire insurance, personal accident insurance.

SET chairman Sathit Limpongpan recently said most major gold dealers had thrown their support behind the idea of forming a spot gold market. MTS Gold president Kritcharat Hirunyasiri said all gold traders had acknowledged the need for a spot gold market in Thailand, but many aspects remained to be sorted out.

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Nissan open new plant in Thailand Thailand will continue to play a major role for Japanese automakers as a manufacturing and export base.

Nissan recently staged a grand opening ceremony for its second production plant in the country that will assemble the new Navara pickup for both domestic and export markets.

The NP300 Navara, Nissan’s new-generation pickup truck, is destined for export to 45 countries, executives said. Nissan plans to sell 3,000 Navaras per month in Thailand and raise its market share to double-digit figures from the present 6 per cent

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August / September 2014

Integration attracts foreign investment Merck KGaA, a leading German chemical and pharmaceutical company, is looking at setting up production plants in Asean including Thailand to cut costs and cash in on opportunities from the Asean Economic Community (AEC).

The company is making an assessment of the Asean market before deciding where to open factories.

“We expect to be chosen. Thailand has high potential to have a plant for some medicines that don’t need high production technology. The plant would serve the local market and perhaps nearby countries,” said Panya Kitcharoenkankul, managing director of Merck Ltd, the company’s Thai unit.

Casio expand their manufacturing base

Greater incentives on offer for renewables

Casio, one of the Japan-headquartered company’s bases for the manufacture of watches, has officially opened a new factory for calculators and electronic dictionaries at its complex in Nakhon Ratchasima.

The Alternative Energy Development and Efficiency Department will offer greater investment privileges for renewable energy projects in a bid to speed investment in the sector and reach the target of 25% of the country’s energy mix by 2021.

The move is in line with the policy set by its parent company to reduce dependency on its largest facilities in China and Hong Kong, which now control 80 per cent of the supply of Casio watches and electronic goods in the global market.

Japan supplies only 10 per cent of Casio products around the world.

Newly appointed director-general Viraphol Jirapraditkul said the department would revamp privileges in terms of tax holidays and feed-in tariffs for all kinds of renewable energy.

Casio also wants to diversify business risks with the balance of its major manufacturing facilities, which are in Japan, China, Hong Kong and Thailand. In the near future, the supply contribution of Casio products to the world market will be equally shared by its Chinese/Hong Kong and Thai facilities.

The existing incentives are not in line with technology development in renewable energies such as solar, wind and gasification, he said.

Solar and municipality-waste-to-energy projects are parts of the military regime’s focus on attracting investment in a second generation of renewable energy schemes.

According to Fumiaki Matsumoto, Nissan’s executive vice president responsible for global manufacturing, Thailand is a key market for the automaker.

Setting up a plant would reduce production costs for Merck due to lower wages.

The implementation of the AEC would create a lot of demand for chemical and pharmaceutical products.

Costing more than Bt1 billion to establish, the opening of the new calculator and electronic dictionary facilities adds to the factories at the Nakhon Ratchasima site.

The first generation included biomass, biogas, solar, wind and mini hydropower.

The solar rooftop scheme was launched last September for combined capacity of 200 megawatts.

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Analysts calling for Autoparts maker more energy reforms looks at partnership The energy industry’s reforms should focus not only on transparency and removing market dominance, but also improving energy efficiency and usage to reduce risks of a fuel shortage in the future, an energy analyst said.

Manoon Siriwan, an energy analyst and former executive of Bangchak Petroleum Plc, said energy security is a serious matter for the development of the country.

“The only strategy to strengthen our energy security has to be focused on efficiency. It doesn’t matter what was presented. If we ignore efficiency of usage, then it is all wrong,” Mr Manoon said.

Lack of efficiency is largely attributed to a long-time government subsidy for diesel and liquid petroleum gas (LPG).

“Our wish for the country is to use more alternative energy, as sustainability will never happen if fossil fuels continue to be subsidised,” said Mr Manoon.

Sigma & Hearts, a leading automotiveparts maker with operations in Thailand and Indonesia, is discussing with Bosch, Valeo, and other global companies the joint development of a key component using its patented process developed in Thailand.

Sigma chairman Motoharu Nuka this year won approval from the World Intellectual Property Organisation to register his patent for a new process to manufacture the rotor cores of alternative-current generators, more commonly known as alternators, a key part in every automobile.

In an interview, Nuka said the breakthrough process would lead to development of a new-generation alternator that is more compact and lighter.

“We have been in discussions with Bosch and they are very interested,” he said.

Subsidies encourage consumers to use fossil fuels without realising their actual costs and discourage distributors from using alternative fuels.

Established by Nuka and two Thai shareholders in 1998, Sigma & Hearts manufactures small precision parts for motorcycle and automobile engines as well as brake components, steering systems and alternators.

Full story: http://goo.gl/86x0Dy

Full story: http://goo.gl/hLd27k

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August / September 2014

BANGKOK BUSINESS BRIEF

15

Siam Gas agrees new Rubber glove plant Philippines deal abandons Songkhla

Thai seafood facing Spanish import ban

Developers worried about cost of steel

Siam Gas and Petrochemicals (SGP), Thailand’s second-largest LPG trader, has said it had clinched a six-month contract to sell 180,000 tonnes of liquefied petroleum gas to Liquigaz Philippines Corp.

Safeskin Medical and Scientific (Thailand), a unit of Texas-based KimberlyClark Corporation, plans to shut its rubber glove plant in Songkhla province, leaving 3,000 employees out of work.

Small and medium-sized property developers will ask the military regime to help control steel prices after the local cost of structural steel jumped with the imposition of higher tariffs.

The selling prices will be based on the world markets. SGP said it would realise the additional revenues, estimated at US$180 million (Bt5.8 billion), during the second half of this year.

Safeskin said “a strategic decision” had been made to close its disposable glove manufacturing factory in Hat Yai district by year-end. It is one of two Safeskin plants in Thailand.

Spain has begun to impose an import ban on all frozen shrimp and seafood products from Charoen Pokphand Foods and a Spanish industry group has called for the removal of Thai canned tuna from the European Union’s proposed free-trade agreement with the Kingdom after allegations of slave labour in the Thai fishing industry.

Liquigaz is the second-largest LPG retailer in Philippines. The deal is good for only six months, since Liquigaz is being bought by PR Gaz, a smaller LPG retailer there. SGP also took part in the contest to buy Liquigaz but its offer was much lower than PR Gaz, which won the bid.

“The decision to close the factory is necessary to deal with cost, competition and category challenges and to best position the Kimberly-Clark/Halyard Health business for continued success,” he said.

Deputy managing director Jintana Kingkaew said SGP expected to post no loss in inventory and a return to profitability in the second quarter, after posting a surprising Bt170-million loss in the first three months of this year. She said it would take another month or two to see if the firm would be able to achieve its target to of higher profit growth this year.

Full story: http://goo.gl/O9Pfam

“The site location and recent flooding of the plant put the predictability of our business results at risk. This move will improve our flexibility.”

Prachai Kongwaree, president of the Thai Rubber Glove Manufacturers Association, has said the closure is driven by major losses the company shouldered for over two years after the factory was hit by floods.

Full story: http://goo.gl/EVl6jv

Tritaporn Khomapat, director of the Office of Agricultural Affairs in Brussels, Belgium, yesterday notified Niwat Sutemechaikul, director-general of the Thai Fisheries Department, that many supermarkets in Europe as well as the United States had stopped stocking CPF’s frozen shrimp and other seafood products.

Some of the big European chains turning away CPF’s products are France’s Carrefour, Germany’s Aldi, Belgium’s Delhaize and Colryte Colruyt, Spain’s Mercadona, and Norway’s ICA, the UK’s Tesco.

“The domestic price continues to climb after this safeguard measure was announced on May 22,” said Nithi Takviriyanun, managing director of Sarn Sing Dee Co, a Nakhon Ratchasima-based housing developer. “If steel prices keep rising unreasonably, homebuilding prices will eventually increase as well, which is eventually passed to consumers.”

Under the new import tariff, the duty on hot-rolled coil, sheet and plate containing alloys such as boron and chromium was raised to 33.11% from the usual import duty of zero to 5%.

The Thai ambassador in Madrid reported that Spain’s Alcampo supermarket, an affiliate of France’s Auchan, had stopped placing orders for all products from CPF.

Mr Nithi said steel was stable at 21 baht a kilogramme for three straight months last year, September to November, before dropping to 20 baht in December and rising to 21 baht in January. The domestic price of hot-rolled coil has climbed since February.

Full story: http://goo.gl/Kyz1Tu

Full story: http://goo.gl/wp0FmJ

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16

BANGKOK BUSINESS BRIEF

Exporting the best of Thailand to the rest of the world Continued from Page 1 and Innovation Promotion (DITIP).

Within the broader objectives of developing the market for Thai products and services, building value in its exports and helping Thai entrepreneurs become more competitive globally market, the DITP has been unstinting in its promotion of Thai design.

Director M L Kathathong Thongyai has worked for the DITP, under the Ministry of Commerce, for 23 years and is a key supporter of Thailand’s Slow Hand Design project.

“Our main objective is of course to sell Thai-designed products, but to do this we have had to assist international audiences in understanding and recognising the DNA of Thai design,” he says.

“Based on the history of Thai culture, especially in terms of arts and crafts, handmade designs made from natural materials are what generally distinguish our designs from their Western counterparts.

“Over the last four years of Thai design presence in Milan, we have done a good job conveying a historical overview of Thai culture and Thai design, and have expanded on that idea to show different aspects

www.BBBrief.com

August / September 2014

has chosen these designers for their innovation, excellence and unique aesthetics. We are looking for designers who think straight from the heart, and who stand apart from the mainstream.”

of Thai design, reiterating the handmade aspect.”

The knock-on effect of this increased exposure has been an uptick in comThe presence in Milan reflects the mercial activity and a spike in inquirapid expansion of Thai design as ries from abroad. well as its growing ambition to establish a global profile.

“Since Thai designers first began participating in events in association “When we established the depart- the Milan Furniture Week, we have ment’s design centre 23 years, we see an increase in order,” Kathawere the only such design centre in thong says. “This is especially true Thailand,” Kathathong says. with respect to special orders and contract jobs.

“Today there are many organisations involved in Thai design promo- “Products we exhibit now have tion, including the Thailand Creative shifted from imitations of modern & Design Center (TCDC), which products and manufactured abroad was an outgrowth of the DITP.” to Thai-concept, Thai-designed modern products.

Now, after exhibiting Thai design in Milan for four years, the DITIP has “Furthermore we are beginning to begun to observe real traction inter- discover Thai influences on internanationally. tional designs, especially with regard to condo and hotel design, particu“We feel that we have successfully larly in Singapore. given the foreign market the information they need to recognise Thai “You might not notice it right away, design,” Kathathong says. but if you examine the origins closely it is readily apparent. Our Thai de“This year we want them to meet signers travelling to Milan and other the faces behind Thai design, so we exhibitions around the world also are bringing over seven new-gener- carry back with them inspiration ation designers to interact with the and encouragement. It’s a two-way international audience. street.

quiries, and a steady flow of repeat customers who are keeping track of the evolution of our Slow Hand initiative.”

There is still more work to be done, though, as Thai design continues to carve out its own niche on the world stage.

“Getting Western markets to see the differences between Thai design and that of the Philippines and Indonesian is an ongoing process,” Kathathong says.

“We Thais can tell the difference regionally but the wider audience might not always see it.

“We hope to expand more in regional markets, and in the past year have exhibited in Indonesia, the Philippines and Taiwan. With the ASEAN Economic Community (AEC) about to become a reality next year, this is particularly important. In Europe we are also looking to expand from Milan to Paris.

“I personally feel that Thai design still has a long way to go in terms of creating recognition and being able to compete in a global market that is ever demanding of new products and more creativity.

“We feel that our department has a major role to play in investing in design innovation, and in maintaining high standards for Thai design prod“Our curator Eggarat Wongcharit “We are seeing an increase in in- ucts and services.

Bangkok Business Brief www.BBBrief.com

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Publisher and Managing Director (Thai Sales) Pavinee Chaymanee • 084-147-5550 thailandmagazine@gmail.com

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Volume 3, Issue 6 • August / September 2014 Copyright 2011-2014. All rights reserved.

Uretek AMATA Thai FP ad_Layout 1 30/09/13 5:06 PM Page 1

WE RAISE, RE-LEVEL AND RE-SUPPORT CONCRETE FLOORS AND DRIVEWAYS

We raise and re-level sunken floor slabs by injecting structural resins which expand as they enter the ground. This creates huge pressure. Voids and crevices are tightly filled, weak ground is compacted and strengthened and the floor is raised back to level.

If there are very weak soil strata below the floor, we insert PowerPiles to compress the soil and provide proper floor support .

Bumps & trip hazards disappear FAST! No excavation; no waiting for concrete to set. Minimal interruption for you.

At left is a prime example. Recently we re-levelled the canteen floor at a major, AMATA factory.

PROBLEM

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Here we used Uretek patented PowerPiles as shown above, because there was a significant stratum of weak soil below much of the canteen floor. Dangerous trip hazards had developed and tiles and walls were cracked. The floor was raised back to level and completely re-supported.

✔ SOLVED

Uretek Ground Engineering 02 152 0900 www.uretek.co.th info@uretek.co.th

18

BANGKOK BUSINESS BRIEF

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August / September 2014

The Calendar Sunday

For event details, enter the short code below the event into your browser:

aug

18

25 AmCham: Food&Agri-Business Cmte http://goo.gl/zFwfDn

31

19

BCCT: Boardroom Briefing – Update on the Thai Political Situation http://goo.gl/6Q965C

AmCham: Marketing Cmte – 2014 Cannes Lions Review http://goo.gl/tX1AQB

AmCham: Transportation & Logistics Cmte http://goo.gl/zPLKiG

24

goo.gl/6ngBg

Tuesday

Monday

17

Mango Metro Networking Party http://goo.gl/6ngBg

26

WebMob Thailand: Meet IBM Bluemix http://goo.gl/dEu8F AmCham: Business Economics Cmte – AEC: Ambition and Reality http://goo.gl/tjisNH

1

2 Mango Metro Night http://goo.gl/EnNbR AmCham: Board of Governors Meeting http://goo.gl/uuBOux

sept

7

8

14

15

BCCT: Jesters Care for Kids Children’s Fair http://goo.gl/8SivVH

16

AmCham: Crisis Communications in Social Media Fishbowl http://goo.gl/VkMPVi AmCham: ICT Cmte http://goo.gl/KfKNfp AmCham: Tax Cmte http://goo.gl/gdKCax

AmCham: Legal Cmte http://goo.gl/09cn4S

21

9

AmCham: Social Networking http://goo.gl/vV6Jpn AmCham: Meet the Embassy http://goo.gl/AMDlhL AmCham: BOT Directors Meeting http://goo.gl/73hYSU

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23 AmCham: Business Economics Cmte http://goo.gl/1UvXNJ BCCT: MBMG Insights http://goo.gl/e5ct6e

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August / September 2014

19

BANGKOK BUSINESS BRIEF

Send us your event details for the September issue

by September 8th to reid@bbbrief.com Wednesday

Thursday

20 BCCT: Events Group Meeting http://goo.gl/rklmt4 Bangkok Entrepreneurs: GoTasty - The Business of Online Food Delivery http://goo.gl/JihG3

27

Friday

21

BCCT: Overseas Business Network Project Steering Group meeting http://goo.gl/4h7fja

BCCT: Half-Day Workshop (Performance Management) http://goo.gl/FBhuHd

22

AmCham: HR Cmte – Compensation and Benefits http://goo.gl/AgG0wu

23

Joint: Lunch with Khun Vikrom Kromadit, CEO of Amata http://goo.gl/JmALW4 http://goo.gl/jubouU

28

AmCham: CSR Cmte: CSR Best Practice

by Intel Corporation http://goo.gl/3Os26e

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30

5

6

12

13

AmCham: YPC Networking Night http://goo.gl/tS3s46

BCCT: Boardroom Briefing (Infrastructure Funds) http://goo.gl/aWQ3nN

3

AustCham: Sundowners http://goo.gl/E5cUWG

Saturday

4

BCCT: MBMG Insights event http://goo.gl/IztkVu AmCham: Travel & Tourism Cmte: E-Tourism Asia Boot-Camp http://goo.gl/ilH3fV

AmCham: Transportation & Logistics Cmte http://goo.gl/dQQXS4

10 BCCT: Joint Professional Women’s Group Evening http://goo.gl/2wZiE2 AmCham: SME Cmte http://goo.gl/rus4Ty

17 BCCT Events Group Meeting http://goo.gl/v6Epha AmCham: Energy Cmte http://goo.gl/jYdetq

24

BCCT: Western Seaboard Networking Evening http://goo.gl/eB8t3t

11 AmCham: Customs & Excise Cmte http://goo.gl/DF1qQh AmCham: Food & Agri Business Cmte http://goo.gl/OOBSGL

18

BCCT: How To Win Cooperation & Influence Others http://goo.gl/E3wK16 BCCT: Overseas Business Network Project Steering Group meeting http://goo.gl/k3jqgH

25

BCCT: Special Luncheon http://goo.gl/KMlsGQ

AustCham: Voluntary English Teaching http://goo.gl/r0P6K9 Impulse Thailand http://goo.gl/Yxrdzq

19

Joint: ESB Networking http://goo.gl/sNDgS1 AmCham: Healthcare Cmte: Counterfeit Drug in Thailand http://goo.gl/zxdNuV

26

AmCham: CSR Best Practice http://goo.gl/YEYbph AmCham: Monthly Luncheon http://goo.gl/BXLmIE

AmCham: YPC Networking Night http://goo.gl/WrP7UW

20

BCCT: Eastern Seaboard Briefing http://goo.gl/13To8g

27 AustCham: Coffee Club AFL Grand Final Family Day http://goo.gl/qkyLLE

News from the World’s Leading Industrial City Developer Q3 / 2014

AMATA GROUP OF COMPANIES marketing@amata.com Sales Mr. Viboon Kromadit Director & Chief Marketing Officer Tel +66 (0)38 939 007 ext. 300 Fax +66 (0)38 938 001 viboon@amata.com Investor Relations Mr. Steven Siew Senior Vice President Finance, Investor Relations & IT Tel +66 (0)2 792 0000 ext. 155 Fax +66 (0)2 318 1096 steven.siew@amata.com Corporate Office Amata Corporation PCL. 2126 Kromadit Building New Petchaburi Road Bangkapi, Huay Kwang Bangkok 10310 Tel +66 (0)2 792 0000 Fax +66 (0)2 318 1096 Amata Nakorn Industrial Estate Amata Corporation PCL. 700 Moo 1, Klong Tamru Muang, Chonburi 20000 Tel +66 (0)38 939 007 Fax +66 (0)38 939 001 Amata City Industrial Estate Amata City Co., Ltd. 7 Moo 3, Bowin Sriracha, Chonburi 20230 Tel +66 (0)38 497 007 Fax +66 (0)38 497 000

Amata and Responsiblity When we welcome new clients into the Amata family, we often find them surprised at how rapidly corporate social responsibility (CSR) has caught on here in Thailand. Randomly pick up any business newspaper and chances are good that you will see two or three headlines mentioning CSR.

Some regional experts see CSR as a Western repackaging of what Asian companies have been practicing for decades: Balance? NatuIn its current form, CSR is a young study. But as a modern expres- rally! And what is looking after your staff if not in the tradition of sion of business ethics, the roots of CSR run back to classical times. the Asian family company? As for honing relationships and connections – isn’t that the Asian way?

One of the great themes of all religions and philosophies has been the duty of the individual to the society at large, and vice-versa. To- Although businesses in Thailand are agile, quickly adapting new inday, corporates are often considered juristic entities – people, under dustry specific technology or adjusting to changes in supply-chain law. requirements, there is one area where they are more reserved.

This makes companies subject to the same scrutiny and expectations Thai companies generally do not want to publicize what they are as individual members of society. Just as individuals are held legally doing in the social realm, be it internal (staff benefits; fair trade) or accountable for their actions, the public is increasingly demanding external (community investment; cause promotions). that companies behave with comparable responsibility.

There are a dozen definitions and alternate terms for CSR. Perhaps the earthiest definition on record explains that CSR is about conducting business in such a way that should you have to move away or close down, anyone who knows your company will shed tears.

More formally, the World Business Council for Sustainable Development says that CSR encompasses “the continuing commitment by business to behave ethically and contribute to sustainable economic development while improving the quality of life of the workforce and their families as well as of the local community and society.”

Note that a CSR approach is not restricted to considering a company’s impact on its workforce, or on customers, but the company’s impact on everyone – neighbors, suppliers, government agencies, employees, casual passers-by – touched by the company or its operations.

This may stem from Thai culture. We admire those who place the gold leaf where it cannot be seen, on the rear of the Buddha image.

This is a commendable demonstration of giving without ulterior motives.

But much is lost when a leading company decides to keep its community engagement interests a secret.

In CSR argot, these people are collectively called “stakeholders.”

A company impacts its stakeholders because of direct and indirect First, the company’s own employees lose the benefit of sharing in linkages between them. Nothing under the sun exists on its own in a the afterglow of the company’s good work. This employee commitvacuum: everything is connected, whether we are aware of it or not. ment is an undervalued benefit of good CSR planning. It leads to lower employee turnover, heightened motivation, and more quality job applicants.

Secondly, and more directly important to the company, is the lost opportunity for brand enhancement. Good companies get good notices, assuming they circulate news of their efforts. Good notices increase brand value, which in some companies may represent the largest component of book value.

Amata Vietnam (Joint Stock Company) Long Binh Ward Binh Hoa City Dong Nai Province Tel +84 61 3991 007 Fax +84 61 3891 251 Copyright © 2014 Amata Corporation PCL

A company with CSR in mind considers its stakeholders and their interconnections and makes every effort to keep their demands, and the needs of the company, in balance.

Finally, the sum total of a strong employee base and a strong brand equates to a resilient company. A resilient company is one that can weather economic and social challenges. It is a company that has a purpose, and that is planning to live by that purpose for the long haul.

Shareholders are connected to companies, naturally. But so are relatives of shareholders, and relatives of employees. And so is anyone This is precisely what Amata – which means ‘immortal’ in Thai – who can impact the company in any way. stands for, in name and in practice.

Learn more about Amata at www.amata.com

Visit us at www.facebook.com/AmataCorp

2

Amata Times

Q3 2014

Amata in Action

a committee of CSR leaders representing each of the Amata City operating units – finance, marketing, and so on. Cooperating with this committee are hundreds of volunteers.

If a school requires repairs, these volunteers will see to it. If the outside community needs extra labor, these volunteers jump in.

“Those who do the work receive immediate recognition, wherever we go. And there is a warm welcome for all Amata City employees in the community at large.”

Gear Foundation

Amata CSR Team

Amata sponsors technical education through the Gear Amata and for our stakeholders, tomorrow must be better Foundation. The Foundation accepts students from ten than today.” vocational schools around Thailand, giving them one year of real-life job experience using the latest technolViboon shares that thought with apparent spontaneity, ogy, thanks to the support of Amata tenants. but it is a refrain frequently heard around the corporation. It is a theme that would make a fitting vision state- Supol Nualpang of the Gear Foundation explains, “We ment for Amata. began as an initiative by Amata founder Vikrom KroFounder Vikrom Kromadit emphasized responsible madit. The Foundation has now trained over 1,200 stupractices from the day that he established the business dents since its inception two years ago.

Amata Nakorn in 1989. His CSR team, guided by Viboon Kromadit, Director and Chief Marketing Officer at Amata Corporation PCL, matches Vikrom’s passion for resource Sarnid Khagsa-ard, CSR Manager, is a long-time vetstewardship and responsible business. eran. He worked in after-sales tenant service for more than a decade, but leaped at the opportunity to join “CSR is not about donating money,” Viboon says. “But community relations under the umbrella of CSR. we owe society something, and need to respond in a constructive manner.”

He comes from the neighboring district of Panthong, and he reckons that being a local gives him an advantage He continues, “CSR is really about capacity building; when dealing with the community: He dwells on both giving people the means to grow... teaching them how sides of the fence. to fish rather than buying them fish.”

“In the beginning, the Estate grew spontaneously. It was One of the companies that supports the Foundation Viboon says that Amata’s preferred approach to any a while before we realized that we needed to invest in the is Monexco International, a Philippines-based group activity is to learn from best practices wherever they’re community at large.” that produces food and snack products. Piyamard Angfound, and then build on them. kanavisul, the company’s HR Manager, admits that the Soon, the company settled on the policy of trying to incentive for her company to become involved was the “Our goal is to have neighboring villagers happy for us make the community outside the fence feel like a part of manpower shortage. to be here.” As a source of employment, Amata wins Amata… and vice-versa. the popularity contest without doing anything else, one Likewise, Sayaporn Promjeen, a Recruiter for Maxim surmises.

When asked whether he expected to return to his origi- Integrated Products, an American semiconductor wanal job, or to move to another one, Sanid immediately fer processor. Sayaporn points to the need for skilled, Viboon elaborates, “We are a leader in environmental demurred, saying, “I like this work. It feels really good trained entry-level manpower as her company’s motive awareness. For example, 100 per cent of our water is to serve.” for engaging. treated and reused productively.”

Over time, both companies have come to recognize Amata City “We have identified three areas where we can make sigthat the students themselves are valuable assets. Ironinificant community impact: employment; education; Early on, Amata City realized it needed to be proactive cally, their turnover rate is less than that of full-time emand health care.” Amata counts ‘its’ communities to be in its interaction with the community and with local ployees, who tend to move on at the first hint of higher all those within an eight-to-ten kilometer radius of the government agencies. The intent initially was defensive, salaries. estate. to operate without creating problems for those who live around the Estate.

That anomaly, plus student energy and enthusiasm, has Viboon ends on an upbeat note: “Needs change. We made this program very popular. There are now commust continually adjust. But one thing is for certain: For Em-on Sritulanong, PR and CSR Manager, established panies standing in line to welcome vocational interns.

Convincing a company that it has an obligation to be responsive to key social constituencies, in addition to traditional business stakeholders, is not easy. For such a change in perspective to be successful, the impetus must come from the very top.

Amata Times

www.amata.com

Caravan of Smiles On an ongoing basis, Corporate Social Responsibility teams from Amata oversee a “Caravan of Smiles” project working with some two-dozen villages annually throughout Chonburi province on a rotating basis.

Disaster Relief: Amata and Friends In May of this year, one of the largest earthquakes in the Kingdom’s history hit the north. The quake measured 6.3 on the Richter scale and wreaked widespread damage. Seventy-three schools in Chiang Rai suffered damage. While only one life was lost, the total cost of losses could ultimately exceed one billion baht throughout the affected areas.

Run in partnership with several other area organizations, the program offers a menu of community services that should bring a smile to the face of every villager. For example, the Eastern Technology School arranges for motorcycle oil changes and Isuzu Chonburi performs engine tuneups. Another group, the Science-Based Technology Vocational College of Chon- The Amata Foundation led a consortium buri, repairs home electrical appliances. of Amata estate tenants together with the Gear Foundation, the Vocational EducaThere are basic health checkups by doc- tion Commission, and Siam City Cetors and nursing staff from Phan Thong ment Public Company Limited in makHospital and even free haircuts by Non- ing made a generous donation to help Formal Education interns. reconstruct four of the schools that were partially destroyed.

Amata staff members themselves regularly join Caravan activities by prepar- The Amata Foundation consortium ing various snack dishes – kai jaew egg donated cash and 500 bags of cement omelets, lad nah noodles, fish maw soup, to two schools. Professionals from Chikanomjeen and others – for the enjoy- ang Rai Technical College, Thoen Inment of the local community. dustrial and Community College, and Kanchanaphisek Chiang Rai Technical College all joined hands to construct 22 temporary classrooms to accommodate more than 1,000 students.

3

Annual Amata Junior League Exercise is important to all, but especially to our youth, the future of our country.

Amata has long encouraged young people to join athletic activities to develop their physical conditioning, as well as their social skills.

Late last year, community relations teams from Amata organized the 4th Annual Amata Junior League. This was the latest in a series of annual sporting events dedicated specifically to children.

Culture and Well-being Preservation of culture can be a vehicle to connecting with the community to develop well-being and encourage a love of education. As such, cultural conservation represents a noteworthy objective in community development work.

Every year, a community relations team from Amata promotes the traditional Songkran (Thai New Year) celebration in the communities around Amata Nakorn and Amata City. Significantly, the team participates in the traditional New Year water-pouring ceremony led by elders in nearly two-dozen neighboring communities. In addition to hands-on involvement, Amata donates money and gifts to be used in numerous traditional New Year ceremonies.

The competitions promote healthy activities for children in over 50 schools located in the area surrounding the Amata Industrial Estate. Among the many sporting activities supported are football, volleyball, and pétanque (boules).

Last year’s games took place in November; this year’s will be in September.

Amata also arranged to send more help to Khun Veerawit Viwatanavanich, Chairassist victims in nearby areas impacted by man of Community and CSR, officially the earthquake. presides over the final awards event.

“Big Cleaning” Day

CSR Bits and Bites

In July 2014, Amata City CSR Volun- the school. At the same time, Amata City teers organized another “Big Cleaning” and its customers are working on conDay in Rayong Province. tributing a number of other infrastructure improvements.

This program offers Amata and tenants the opportunity to work together Amata recognizes the need for compato spruce up the living environment, to nies to be socially responsible: healthy uncover and repair minor infrastructure companies require a healthy society. CSR deficiencies, and to incentivize educa- Volunteers specifically devote their time tional opportunities. The effort this time and abilities to encouraging socially rewas focused on Baan Phusai elementary sponsible outcomes. school in Rayong.

By bringing together Amata and its cusAmong major tenants taking part were tomers to help invest in society, “Big Nestle (Thailand), Yokohama Tires Cleaning” Day was another success story (Thailand), Amata B.Grimm (Rayong), for Amata City.

Fuji Oil (Thailand), Somboon Malleable Iron Industrial, Thai Summit Auto Place, Sumitomo Electric Wiring System (Thailand), Toshiba Machine Manufacturing (Thailand), International Casting Products, Tokai Rika (Thailand), and Pacific Sheet & Coil (Thailand).

• The Amata community relations team continually liaises with nearby communities throughout the year to discuss pressing issues such as how Amata and the communities can cooperate to enhance human development, quality of life, and economic growth.

visits the disabled, as well as the elderly living alone, several times a year to deliver donated food and medicine directly to their homes. Khun Sanit Kaengsa-ard originally organized this program with administrative support from various Tambol in Chonburi.

• Khun Viboon Kromadit, Director and Chief Operating Officer of Amata Corporation PCL, represented the industrial sector by leading an education seminar to promote employment. The seminar included consultation for students wishing to advance their studies at technical schools.

• Amata Nakorn and Amata City presided over the “Children’s Dreams Day” to coincide with National Children’s Day, organized by Amata Industrial Estate and tenants to bring joy to more than 2,000 children from 40 schools in the area. The event had many activities and games for the children, including a raffle with special prizes and scholarships; talent showcases such as a singing contest; a Thai checkers contest, food stalls, and much more. The event was held at the Multi Purpose Center behind the Amata Service Center at the Amata Industrial Estate.

Each tenant contributes according to its ability, whether it is clean-up, infrastructure development, or education.

For example, Somboon Malleable Iron Industrial helped design and build a herbal garden and a mushroom farm for

• Amata donated two air conditioner units to the Phan Thong District Office. These units will be installed in the Administration Room for the comfort of the public who come to the office on of• The Amata community relations team ficial business.

Mr. Kazumotio Sho (MD), Fuji Oil (Thailand)

• The Chonburi Province Employment Center together with Amata Corporation PCL and the Eastern College of Technology joined hands to put together the project “Have Money, Have Employment, Have Knowledge” to help minimize unemployment in the industrial sector. Khun Sanit Kaengsa-ard, Amata Community Manager, traveled to Sisaket and Surin Provinces to encourage students to benefit from the project.

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Amata Times

Q3 2014

The CSR of Amata’s Customers Amata is not only a conscientious landlord, but also an inspiring role model.

Here are just a few examples of how of Amata tenant companies have been moved to invest in the society that benefits them:

Further honoring this obligation, the company manages the DENSO Eco Park Project, a pioneer Eco Learning facility, based at Amata Nakorn. Last year, the project won a national prize in Eco Symbiosis.

Tsuchiya (Thailand) Co., Ltd. www.tsuchiya.co.th

Mr. Yukihiro Kato (President)

Local school scholarship/improvement: Company volunteers, including management and employees, paint school buildings, refurbish libraries, conduct tutoring sessions, and subsidize student scholarships.

The work has been inspired by the principles of Professor Akira Miyawaki of the National University of Yokohama, a wellSupport the disabled: In order to help known expert in re-forestation. the disabled earn a living, Cardinal Health organize product fairs for the While there is an emphasis on the envidisabled. These fairs run on a quarterly ronment in the company’s service ethos, basis, and offer the disabled and their Yokohoma Tire also encourages and enfamilies the opportunity to sell handicraft dows various other activities integral to items and other goods. the local community, including merit making, donations, and student scholarNatural disaster response: When floods ships. have struck, the company has built floating toilets and pontoon transport rafts YKK Vietnam Co., Ltd. using re-cycled material. For other natuwww.ykk.com.vn ral disasters, Cardinal Health management and employees are prepared to offer donations in kind and in service to help those affected.

DENSO has also put together a Traffic Safety Promotion Project, where the company arranged to repair footpaths and Mr. Jiro Kichise (Plant Director) road traffic signs as a means of improving Japanese manufacturer TSUCHTYA the public infrastructure for both people produces stickers, labels, and detailing and cars.

The purpose of all these activities is to intape for the automotive industry. It also still awareness of social responsibility and manufactures plastic and magnetic com- Another initiative, the Quality of Life to inject a community service ethos into ponents for the home appliance sector.

Promotion Project, provides a channel for the employees.

DENSO to focus on developing comSince 2006, Tsuchtya has joined forces munity school facilities.

The project size doesn’t matter: The with the TO BE NUMBER ONE project most important thing is injecting a sense under the patronage of Her Royal Prin- The theme uniting all DENSO activities of public mindedness into employees. cess Ubolratana to discourage drug use. is education for mutual benefit and per- In addition to caring for themselves and sonal fulfillment. their families, employees should care In support, Tsuchtya has committed subfor others, as well. A community will Cardinal Health 222 stantially. The project benefits employees become more robust once this thinking (Thailand) Ltd. by boosting morale and encouraging catches on. www.cardinalhealth.com excellence, in turn improving their own quality of life.

Yokohama Tire Manufacturing (Thailand) Co., Ltd. The working committee in charge has www.yrc.co.jp launched three strategies: Strategy #1 is an awareness campaign that disseminates the anti-drug use message through exhibitions, telemarketing, and seminars;

148,029 square meters surrounding the plant, in which Yokohama has planted 45,005 trees.

Mr. Nielson Kasuo Tanaka (MD)

Strategy #2 is the promotion of mental CARDINAL HEALTH is a healthcare health and well-being through activities services company – specifically, they are such as daily exercise; the business behind healthcare. For customers, they emphasize quality service; Strategy #3 is the creation of a network for employees, they highlight individual of staff, family, and neighbors to join in volunteerism and social responsibility. preventing substance abuse. A community with strong internal ties creates a sig- The company believes that happy em- Mr. Koichi Tsuruno (MD) nificant barrier to the spread of drug use. ployees pass along their contentment in In an effort to raise awareness of the imthe form of public-mindedness and car- portance of environmental preservation, ing for others.

YOKOHAMA RUBBER of Japan, a tire Siam DENSO Manufacturing Co.,Ltd. manufacturing leader, through its Thai Siam KYOSAN DENSO Co.,Ltd. Each year, Cardinal Health has arranged subsidiary, have joined hands to re-forest www.denso.co.th stimulating social impact activities, such an area outside Amata City.

DENSO companies collaborate to as: make their vision – cars friendly to the Begun in 2008, the “Yokohama Forever environment and to humankind – come Environment improvement: In collabo- Forest” is timed to culminate with the true. DENSO is committed to being an ration with Amata, company volunteers 100th Anniversary of Yokohama Rubber exemplary member of the automotive help with tree-planting and other under- in 2017. community by demonstrating minimal takings such as flood-check dams in supenvironmental impact. port of environmental conservation.

To date, there is a lush forest of over

Mr. Toru Shikita (General Director)

In 1998, Japanese-owned YKK began awarding educational scholarships to deserving Ngo Quyen high school students. To date, the company has awarded 30 scholarships.

YKK management representatives have attended each year’s class closing ceremony and presented the awards directly to the pupils, along with personal congratulations.

Another area of interest to YKK is the environment. Each year on World Environment Day (5 June) YKK staff organize tree plantings.

The company plants trees in the vicinity of the factory and its neighbors in order to protect and preserve earth’s atmosphere, beginning with the area immediately surrounding the Amata Industrial Zone.

This year on 5 June, YKK Vietnam distributed seedlings and introduced tree planting to other Amata companies. In a moving display of unity and cooperation, several local managers and Amata leaders joined in the work.

By encouraging educational excellence and fostering ecosystem care, YKK hopes to improve the business setting and economic growth potential throughout Vietnam.