Bangkok Business Brief - Volume 2, Issue 8 - Mid-July/August 2013 by Mango Mango Ltd. Part.

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BUSINESS BRIEF

Vol. No. 2, Issue No. 8

Mid-July/August 2013

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Entrepreneurship in Thailand By Sam Dawson

Asian economies are doing well preneurs from Europe and North at the moment, and many entre- America are looking to Asia, and especially Southeast Asia, as potential explosive growth markets. Tech media and websites General Interest 2 offer advice to entrepreneurs Government/Economy 3 on how to break into these imFinance/Investment 4 portant markets, while entreProduction 5 preneurs and investors in other Retail/Services 6 sectors are flocking to the region Tourism 7 to look for opportunities. This Real Estate 8 is also true of Thailand, where IT/Comms 9 foreign investment has been The Chambers 10 surging since the floods of 2011. But much of this investment has The Calendar 14 been in post-flood recovery and

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infrastructure development, and operated out of necessity, as opthe majority has been corporate posed to opportunity. investment in the Thai market. Grassroots entrepreneurs in Entrepreneurial activity in Thai- Thailand, in scalable, innovaland, however, remains very tive industries such as technolsmall scale and limited, much ogy, are still a rare breed, and of it in the risky informal sector. many wonder why there aren’t According to a Global Entrepre- more entrepreneurs emerging in neur Monitor (GEM) survey, 69 the current economy. Thailand, percent of entrepreneurial activ- and most of Asia with its growity is in the small business sector ing middle class, relatively low and is very local – think small taxes, and ease of doing business restaurants, street food stalls, (Thailand ranked 18th in the and mom-and-pop stores. And many of these businesses are Story continues on Page 13

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Briefs General Interest

http://goo.gl/ozbNM

Business scions share insights Heirs to four of the Kingdom’s most prominent family-run businesses share a common goal: ensuring their businesses secure a foothold in Asean over the next 10 years. Thai Beverage is building a clear footprint for its non-alcoholicbeverage business, after acquiring Singapore-based Fraser and Neave. ThaiBev wants to be a regional powerhouse. In preparation for this, it is restructuring its organisation, working processes and human resources to ensure it is equipped for the step into Asean, according to Thapana Sirivadhanabhakdi, ThaiBev CEO and president. Thapana, the first son of billionaire and ThaiBev founder Charoen Sirivadhanabhakdi, said that as a member of the second gen-

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Mid-July/August 2013

To read the full article of a story brief, enter the short code at the end of the story into your browser: eration, he placed most importance on the sustainability of the business. ThaiBev was founded on the strength of an alcohol concession... Full story at http://goo.gl/nmtud

...added that the company had set aside a significant investment budget of Bt200 million to Bt300 million for overseas expansion. Full story at http://goo.gl/bH6PF

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ticipants, you won’t hear many complaints from others, including the chairperson. People adopt a maipen-rai attitude. It’s okay. Hence, it becomes the norm to behave that... Full story at http://goo.gl/mCfKe

cation, culture, the environment, sports, religion and care for those in need,” he said. “My key ambition is to contribute to a compassionate society and strong economic... Full story at http://goo.gl/KcPI4

family is one of the key challenges facing a family-owned business in ensuring its long-run viability. Harald Link, chairman of B Grimm and a member of the third gen“Thirteen years with the Bangkok eration of the founding family, said Post and five years prior to that. In yesterday that the core values of total, about 18 years,” I reply. his family applied by or transferred from generation to generation are “What are the common cross-cul- the desire to contribute, caring for tural issues you hear about?” ordinary people and compassion in daily life. “Surapong, these are the common ones: respect for time, silence in “This means that we make a strong meetings, progress reports, prom- effort to be caring, reliable and reises, and asking questions. Let’s use sponsible towards all people we deal a meeting room as a scenario. It’s with in our daily lives, be happy for normal to see approximately 25% of other people’s successes and invest the people come to the meeting late. our time and money in social develIf that meeting has only Thais par- opment projects that further edu-

“Thai people should be more active participants in the international arena such as under the Asean platform and look forward to career expansion beyond traditional borders,” says Subhasakdi Krishnamra, the outgoing chairman of Deloitte Southeast Asia. “Generally speaking, we must proactively develop ourselves in order to be capable leaders. We have many great systems and practices but we tend to speak less. Therefore, nobody really knows how good we are,” adds Mr Subhasakdi. Deloitte Southeast Asia’s board of directors comprises 12 members. Seven are the heads of each country’s office. Another... Full story at http://goo.gl/ahDGF

Misunderstandings between Thais and expats

“Khun Kriengsak, how long have you been writing your cross-cultural columns?” asks Surapong, an old friend from high school.

Values transfer keep Inclusiveness as family firms afloat a management Transferring the core values of the approach

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BANGKOK BUSINESS BRIEF Mid-July/August 2013

General Inte

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Government / Economy

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To read the fu ll article of a story brief, enter the shor t code at the end the story into your browser: of liam Shakespe are

...added that the set aside a signi company had budget of Bt20 ficant investment million for over0 million to Bt300 seas expansion Full story at http: . //goo.gl/bH6PF

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Nature and life in JuliusCaesar. 1997-98 wa are cyclical _ the impact of s a blessing, as the mains seasons of the yea 2008 would ha above the Europ the phases of the r, life and death, far worse ve been ean average. for the region, mo http://goo.gl/o on, the tides. ” Azman In Caught up in da zbNM India, China ily details, we eas Mokhtar, the managing and Thailand, ily forget that dir ect of or Kh Asia stands to rou aza ghly 12 percent nah the business wo of has cycles, too. rld told the CI Nasional of Malaysia, tion contribute to a the populaWe are all fam MB Asean Confe gain from W pension, while iliar with the econo rence. the we es t mi ak c ne bu sse sin s ess of cycle His com slowdown of expansion, con sion system are Thailand’s penments were... ... covery. Howe traction and re- Full story Full story at htt The shift of eco ver, other cyc at http://goo.gl/d nomic growth p:/ /goo.gl/rtpH3 lic ph al fu2 en u om ena affect... momentum to the Thailand near Preventing up numerous East has opened Full story at http://goo.gl/fJ to p opportunities olr of list of wor that Asian countries Bangkok from out, suggests an should not miss Panel: Asia bett weakest pensld’s sinking bigges economist. io off, not immun er n t systems: stud challenge The robust eco y from global cr e, no Greece, India, Ch Land subsidence China and em mic growth of is es ina and Thailand erging economi caused by groun are home to the water losses top will open a ne es KUALA LUMPUR : The As d weake w s ian cri- pensi on systems in st national lems that must the list of probAsian economi opportunity for sis in the late 1990s was a wa es to increase the be the kesol cal up ved wo l for in rld cri Ba , the region that pp wealth from tra ir has turned eig led by a mix of acute sover- kok to mitigate the impact ngde in goods an out to be of the n debt, young climate change services at a tim a blessing in d retire dis e on States and Europ when the United nearly 15 years later, as the guise high ratios of pension ment ages, a study by multin flooding, says region’s ers an ers to worke ational agencies financial sec Full story at htt are... d . p://goo.gl/S65D6 able to sus tor is now strong and study poor pension take-up, a The conclusio showed. tain a certain n de is gre contained in of shocks from e Grow with th a rep ort the entitled “Clim e flow Western Hemi fallout in the The Allianz ate Risks and Ad of cycles sphere, accord ing sion Susta Global Investors Pen- Megac aptation in Asian Coastal to a panellist at a recent As inability Index, ities”, jointly con ‘There is a tid ean conference. ducted by the which Asian De tracks the rel e velop ati men, which, tak in the affairs of ity of nationa ve sustainabil- Internation ment Bank, the Japan l al leads on to for en at the flood, “There wi in 44 countries pension systems and the Wo Cooperation Agency ll be more crises tune”, wrote Wi around the wo rld Bank in 201 l- future, an in the showe rld, 0. d the Asian crisis in tirees d the number of Greek reThe report recom to people of wo rking age reFull story at htt mended a... p://goo.gl/20yMD Sponsored by

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had also improved the EU’s understanding on some sensitive issues. These include investment liberalisation, intellectual-property rights, http://goo.gl/EIbH6 competition policy, governance procurement, rules of origin, trade An unspoken side facilitation, trade remedy measures, and sustainable development. Deof the AEC spite these sensitive issues, he... We all have heard about the AEC Full story at http://goo.gl/rbOIz many times. Experts from government agencies and the private Kittiratt to BoT: sector have helped point out the Put on the brakes strengths, weaknesses, opportu- Deputy Prime Minister and Finance nities and threats in all 10 Asean Minister Kittiratt Na-Ranong is markets for hundreds of products urging the Bank of Thailand to step and industries in endless seminars in to stem the rapid pace of baht and research papers. But there is an depreciation,UnK8C renewing pressure on observation that has been troubling the central bank to rein in the local me for quite some time now, but still currency. The central bank should no one has quite rightly or publicly stabilise the baht’s movement to pointed out this concern. After all help both exporters and importers, the energy we have poured into ana- he said. “It’s volatile to see the baht lysing the AEC, the scope of conclu- weaken to 31 to the US dollar from sions is rather narrow. The typical about 28 in recent months. The baht recommendations are either you is far from stable,” he said. must seize the opportunity by starting to export to Asean countries or Mr Kittiratt earlier stated he thought you must try to invest in neighbour- about sacking central bank govering countries, whose resources are nor Prasarn Trairatvorakul every abundant and cheap. day while the baht was strengthening, and he blamed high local interEven scare tactics have been em- est rates for the capital inflows... ployed on many stages, telling busi- Full story at http://goo.gl/UnK8C nesses to fly outside and seek new and exciting opportunities or stay Pridiyathorn: home to grow stale and slowly with- Nix high-speed er away amid foreign competition... rail scheme Full story at http://goo.gl/CD8Cp Former Bank of Thailand governor Thailand and EU MR Pridiyathorn Devakula called exchange offers for the government to abolish its planned development of four highin first round speed rail routes because it is not Thailand and the European Union worth the investment costs. Should have exchanged their proposals in the government want to test the wathe first round of talks on a free- ters on the viability of high-speed trade agreement, and the Kingdom’s rail, it should invest in a Bangkoknegotiators claim great progress to- Rayong route due to the absence of wards market liberalisation. After airline flights at the moment, he told the first round in Brussels with the a seminar. “We’re not a rich country EU’s deputy director-general for that can invest in projects that are trade at the European Commission, not worthwhile,” he said. Olarn Chaipravat, head of the negotiation team and chairman of the The 780-billion-baht high-speed rail Thailand Trade Representative of- project is part of the government’s fice, said he was confident of reach- 2-trillion-baht worth of infrastrucing a final agreement within the tar- ture projects aimed at improving get of one and a half years. the country’s logistics and transport systems as well as stimulating do“Thailand and the EU have amica- mestic investment. bly exchanged proposals and documents on details for trade in goods The four routes are Bangkok-Phitand services and investment lib- sanulok-Chiang Mai to the North eralisation. The two countries will worth 387 billion baht, Bangkokdeepen the negotiations in Septem- Hua Hin-Padang Besar on the... ber,” he said. Olarn said Thailand Full story at http://goo.gl/NlzPP

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Finance / Investment

Vitai Ratanakorn, Nok Air’s chief financial officer, agreed that having more airlines on the SET would lure more investors, especially investhttp://goo.gl/wKeiJ ment funds. Also, this trend would boost confidence in growth of the Airlines joining industry. Vitai said it was not a big surprise to see airlines listing on the trend to list on stock market. The current business stock market environment has forced them to Airlines are joining the trend to list raise funds for new aircraft to... on the Stock Exchange of Thailand Full story at http://goo.gl/KjY7D to raise funds for business expansion. Nok Air, a low-cost carrier, Myanmar’s arms and Bangkok Airways are the lat- open to investors est to pursue this option, while Asia A senior Myanmar official brushed Aviation, the operator of Thai AirA- aside concerns that the Dawei deepsia, the biggest low-cost carrier, and sea port and special economic zone Thai Airways International, the na- will be scrapped for lack of financial tional carrier, are already listed. The support from Japan. Set Aung, the four airlines play leading roles in deputy minister for national planthe domestic and regional markets. ning and economic development, Amnart Ngosawang, an analyst at said Japan is interested in Dawei, Finansia Syrus, said the entry of two but many more feasibility studies more airlines to the SET would offer must be conducted before the Japamore choice for investors. They can nese make an investment. compare business performance and choose the one that in their view “Japan is interested, but they are provides the best potential for a re- very systematic,” Set Aung told turn on their investment. the Bangkok Post. “Although they

...added that the company had set aside a significant investment budget of Bt200 million to Bt300 million for overseas expansion. Full story at http://goo.gl/bH6PF

haven’t been specific about things [the feasibility studies and master plans], to some extent those are done by Italian-Thai Development. The project definitely will happen.” He said while Japan has given full commitment to the 2,000-hectare Thilawa SEZ, the sheer size of the 25,000-hectare Dawei project means it will take some time. Meanwhile, steady progress has been made on Dawei, with the Thai and... Full story at http://goo.gl/J7ZPG

Aberdeen remains overweight on SET despite declines

Foreign investors across the world have been selling stocks on concerns over the possible cessation of the US quantitative-easing programme, according to Aberdeen Asset Management, which maintains its overweighting of the Stock Exchange of Thailand given its unchanged economic fundamentals. Adithep Vanabriksha, CIO at Aberdeen, said the changing investor settlement had boosted the yield of 10-year

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risk-free US Treasury bonds to 2.18 per cent. Amid investment reallocation from equities to bonds, stock markets across the world fell, Adithep said. He added, however, that the SET overreacted despite nearly... Full story at http://goo.gl/amlNm

Compounding his interest

With all eyes of customers and employees alike on the man walking down the stairs, some basic instinct told them something unusual was afoot in the head office of Bangkok Bank. Highly unique, as Chartsiri Sophonpanich, the 54-year-old president and chief executive who prefers spending time with family or working with staff all night to attending socialite-packed public events, has agreed to do a cover shoot (and exclusive interview) for the inaugural edition of Forbes Thailand. Having learned valuable lessons from the 1997 tom yum kung financial crisis, Mr Chartsiri spoke of prudential business strategies whereas other major banking... Full story at http://goo.gl/j8jaL

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Production

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Oishi, F&N Holdings enter Malaysia distribution deal Oishi Group, a non-alcoholicbeverage unit of TCC Group, has formed its first distribution synergy with Fraser and Neave Holdings in Malaysia, which will be the distribution centre for Oishi ready-to-drink beverages, including green-tea products, in Malaysia, Singapore and Brunei. The distribution contract was signed in Bangkok, less than three months after Singaporelisted Fraser and Neave, which owns 57 per cent stake in its Malaysian operation, was acquired by TCC Group in February.

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...added that the set aside a signi company had budget of Bt20 ficant investment million for over0 million to Bt300 seas expansion Full story at http: . //goo.gl/bH6PF

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...

Unilever thinks big in Myanmar

Unilever, the Anglo-Dutch global consumer goods company, will open its first factory in Myanmar next month as part of its 20-billionbaht investment plan in consumer products in the country. It has set a goal to become a leader in Myanmar’s fast-moving consumer goods market over the next 10 years. The business will be operated by Unilever (Myanmar), which will receive full support from the Thai side.

It will also be under the supervision of Bauke Rouwers, chairman of the Unilever Group of Companies in Thailand and Indochina. Mr Rouwers said Unilever Myanmar could be the first multinational company to operate a local manufacturing facility there. Last December, Unilever was granted a licence from the Myanmar Investment Committee Oishi Group says the move is a sig- to run a manufacturing base, startnificant step in fulfilling its inter- ing with Knorr dehydrated soup... national aspiration to expand the Full story at http://goo.gl/llfy0 availability of its beverages around the world, especially in Asia, Europe Bosch opens and the United States. The potential skills workshop for Oishi in Malaysia by way of F&N Bosch, a global supplier of technologoes beyond beverages and into gy and services, yesterday launched snack foods, restaurants, or even ice its mechatronics apprentice workcream, said Ng Jui Sia, CEO of F&N shop in Thailand to build up a highHoldings. He said the company ly skilled technical workforce. The would set up its beverage facility... low unemployment rate of less than Full story at http://goo.gl/02Oc7 1 per cent is believed to be a reason weak training. However, training Construction firms for has gained greater focus as Thailand gear up for moves towards advanced manufacturing. The workshop was launched mega-projects three months after German AmbasListed construction firms are ready- sador Rolf Schulze said major Gering themselves to participate in the man companies like BMW, Bosch bidding under the government’s and B Grimm are joining a camBt2-trillion infrastructure project paign to address growing worries by preparing their investment bud- about the shortage of skilled labour. gets and non-financial resources. Ch Karnchang director Prasert The Bosch apprenticeship proMarittanaporn said the company gramme is part of the German-Thai had decided to withdraw from par- Dual Excellence Education proticipation in the water-management gramme that was launched recently, project worth Bt350 billion in or- following the signing of an agreeder to focus all of its resources on ment by Education Minister Phongmega-projects under the infrastruc- thep Thepkanjana and Rolf as repreture programme. “We have lim- sentatives of the two governments. ited resources and have to focus on A programme coordination office what we can do better,” he said. The was formed through the cooperacompany plans to issue a debenture tion of the German-Thai Chamber worth between Bt3 billion and Bt4 of Commerce and German Interbillion in the second half of this year. national Cooperation with support The funds raised will support its in- from the three main project parttention to bid for a large slice of the ners – Robert Bosch, B Grimm and Bt2-trillion infrastructure projects... BMW (Thailand). Germany is.. Full story at http://goo.gl/CWzy2 Full story at http://goo.gl/4FmYa

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Briefs Retail/Services

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Asian airlines’ profits soar Asia-Pacific airlines posted a 6.7% increase in net profit last year as strong passenger demand offset lacklustre cargo markets and high oil prices. The 23 carriers based in the region including Thai Airways International and Singapore Airlines achieved aggregate earnings of US$5.2 billion for 2012, up from $4.8 billion in 2011, according to preliminary figures released yesterday by the Association of Asia Pacific Airlines. Combined operating revenue rose by 7.56% to $175 billion. The improvement was underpinned by an 8.5% increase in passenger revenue to $134 billion as cargo revenue fell by 3.3% to $21.1 billion. Last year, regional airlines saw a

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To read the full article of a story brief, enter the short code at the end of the story into your browser: 5.8% increase in international passenger traffic measured in revenue passenger kilometres and a 3.4% decline in international cargo traffic expressed in freight tonne kms,... Full story at http://goo.gl/Gzadn

Training at M Academy

McThai, which has been running McDonald’s hamburger restaurants for almost 28 years, has embarked on its first diversification into the training business by opening M Academy. Providing courses for corporate clients across various industries beyond the food business, M Academy was born out of McDonald’s Corporation’s keen knowledge of business operations and management at its core. The school on the sixth floor of Big C Ratchadamri has been in service since March.

...added that the company had set aside a significant investment budget of Bt200 million to Bt300 million for overseas expansion. Full story at http://goo.gl/bH6PF

It offers share-and-exchange practical learning and best practices from business operation distilling to culture, services and more importantly people behaviour and... Full story at http://goo.gl/HbeWM

BA plunges into Bangkok Airways codeshare pool

British Airways has signed an accord with Bangkok Airways to feed its long-haul passengers to Thai holiday hotspots on routes operated by the Thai carrier. The codeshare arrangement means BA passengers can continue their journeys from Bangkok _ BA’s sole Thai port of call _ to Phuket, Koh Samui and Chiang Mai. The agreement, effective from today, also covers PG’s SingaporeKoh Samui service. It allows BA passengers to book flights to those Thai Hester Chew, the CEO and a vision- tourist destinations in one seamless ary of M Academy, said that the transaction on ba.com. company wants to inspire people to change for the better. M Academy is BA has become the 11th interan interactive learning experience national airline in the codeshare centre for firms across industries. pool of PG which has strenuously

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pursued such partnership arrangements to boost passenger volume on its domestic networks. On May... Full story at http://goo.gl/hCyQr

Luxury Lexus brand looks to growth

Lexus, the Japanese premium marque, is upbeat about its prospects in Thailand in 2013, expecting 13.7% sales growth to 870 cars. The promising sales growth is attributed mainly to the relatively narrow price gap between Lexus vehicles imported through authorised dealers and independent importers or the grey market. The price difference between the two markets for Lexus is only about 100,000 baht, up to one-third that of other brands in the premium car segment. Sales of premium cars in general will remain brisk this year, with expected sales of 16,000 to 17,000 vehicles, up from 13,000 in 2012, thanks mainly to rising demand from medium- and high-income customers. Premium cars are generally defined as models priced from 1.8 million baht... Full story at http://goo.gl/Ya0iz

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Tourism

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All silent on withdrawal from expo bid The Bureau of International Expositions decided to cut Thailand from the list of five contenders, as the government failed to submit an official confirmation. On his Facebook page, former finance minister Korn Chatikavanij said it was a pity that Thailand was disqualified. He attributed this to the government’s lack of professionalism. “The Yingluck [Shinawatra] government did not take this seriously, maybe because this was initiated by the [previous] Democrat government. Or the government might not see any benefits from this. Or it might want to pave the way for Dubai” to win the bid, he said.

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...added that the set aside a signi company had budget of Bt20 ficant investment million for over0 million to Bt300 seas expansion Full story at http: . //goo.gl/bH6PF

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...

Myanmar uses global forums to spotlight tourism goals

Myanmar’s hotel and tourism minister outlined his country’s tourism vision at the World Economic Forum in its capital city Nay Pyi Taw. The next day, his staff were in Bangkok to promote Myanmar’s unspoiled attractions, from white-sand beaches to historical religious sites, at “Thailand Travel Mart 2013 Plus” held by the Tourism Authority of Thailand. The two efforts seem very meaningful for the newly opened nation. It is clear that the country is moving its tourism industry forward, considered one of the first priorities to drive economic prosperity and eliminate poverty.

“Absolutely, the World Economic Forum held in Myanmar has helped us promote our tourism industry on the global stage,” Phyu Phyu Mar, of the Myanmar Tourism Promotion Board, said at the TTM, where her The government has shown reluc- country’s presentation got a warm tance to support the bid, though welcome from foreign media. at the same time confirming that Thailand would fight for the host- She said this was the first step for ing rights. In February, there was Myanmar to connect with the globa discussion over the huge invest- al tourism community. Throughout ment, estimated at Bt30 billion. the next year, she and her team will Prime Minister’s Office Minister also fly to countries worldwide to Nivatthamrong Boonsongpaisal at attend eight tourism fairs, notably... that time said the government was Full story at http://goo.gl/3gJGm assessing the worthiness of investing in a bid to stage the World Expo. Curtain to rise on Nivatthamrong turned off his mobile riverside Theatre phone. Nopparat Maythaveekulchai,... Hotel in Thon Buri Full story at http://goo.gl/tyTvc The defunct Patravadi Theatre in Japan visa move Bangkok’s Thon Buri district will could hit be turned into a four-star boutique hotel serving both local and foreign local tourism Thailand may miss its domestic guests. Sitting on the Chao Phraya tourism target as many Thais are riverbank near Wat Rakang on the likely to rush to visit Japan instead Thon Buri side of the capital, the 80of travelling locally in order to enjoy room Theatre Hotel is scheduled to the new visa waiver, experts warn. open in the next two years. Theatre The decision by the Japanese gov- founder Patravadi Mejudhon last ernment to exempt visas for visitors year decided to relocate the theatre from Thailand from this summer as well as a school to her property may cause travellers to change their in Hua Hin after the premises were plans, said Yuthachai Soonthron- inundated by the massive floods in rattnanvate, president of the Asso- late 2011.The Patravadi Theatre was ciation of Domestic Travel. If they founded in 1992 and is known for change their plans, it is likely that its outdoor stage, large-scale thethe government may fail to meet the atre and well-trained performers in projected 115 million domestic trips various arts. Waewadee Sritrairat, worth 537 billion baht in tourism Mrs Patravadi’s eldest daughter and revenue this year. It is estimated that managing director of the Putahracthe visa exemption will result in... sa Resort Hua Hin, said the design... Full story at http://goo.gl/q34So Full story at http://goo.gl/95Pwj

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Briefs Real Estate

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Amari taps local Phuket demand

Amari Estates Co, the Italthai Group’s property arm, is upbeat about demand from Thais looking to buy a home in the island province as an investment. It expects to close sales for its 2.3-billion-baht residential project over the next 12 months.

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To read the full article of a story brief, enter the short code at the end of the story into your browser: Residences Phuket has sold 17 condominium units for a combined 170 million baht. Fourteen units were bought by Thais, while the other three were sold at a roadshow in... Full story at http://goo.gl/Rb3vZ

Condo registrations sink 32% in 4 mos.

In the first four months of this year, condominium registrations nosedived 32 per cent, possibly because of the labour shortage. Total registrations declined by 7 per cent, despite the increase of 39 per cent in low-rise residences – detached Yuthachai Charanachitta, the presi- houses, townhouses and duplexes. dent and chief executive, said Thai buyers are increasingly accepting Issara Boonyoung, adviser to the the leaseback concept on second Housing Business Association and homes in tourist destinations. They CEO of Kanda Property, said that are willing to share a residential new-home registrations decreased unit with other users if it generates because of the decline in condo income, he said. “Like other Asian registrations to 13,705 units from buyers, Thai are becoming more 20,187 units last year. Low-rise reginterested in14:17:26 buying a residential istrations rose to 15,595 units from Dream GYM A5_c.pdf 1 27/3/2555 unit as an investment. It’s an upward 11,200 units. A difference in the trend,” said Mr Yuthachai. number of condo projects reaching completion and delays in compleLaunched four months ago, Amari tion due to the tight labour market

...added that the company had set aside a significant investment budget of Bt200 million to Bt300 million for overseas expansion. Full story at http://goo.gl/bH6PF

might be the cause for the downturn. “In the first four months, horizontal residence registrations and deliveries increased in contrast with those of vertical residences. This reflects the recovery of the... Full story at http://goo.gl/uDjI0

CBRE: Foreign condo buyers wary of politics

goo.gl/bH6PF

sit routes and more than doubling in some areas, according to property experts. Prices have consistently risen since the Treasury Department’s implementation of revised appraisal values in July last year as demand to buy land for developing both residential and commercial projects increases, especially in locations near to the current mass-transit system and planned route extensions. A survey found that in some locations the cost of land had increased by more than 100 per cent over the past three years. For example, land... Full story at http://goo.gl/yWCNY

The political climate will be a key factor determining foreign demand for condominiums this year, says a property consultant. “The key factor is politics,” said Aliwassa Pathnadabutr, the managing director of AEC to boost CBRE Thailand. “Foreign purchases demand for are expected to amount to 30% of ‘green’ offices the buyers in the Thai condo market this year if the country’s political en- The demand for “green” offices in vironment is stable.” Thailand will grow when the AEC comes into effect in 2015, as more Foreign buyers now account for multinationals setting up regional 25% of buyers in the condo market. operations will opt for renting such CBRE expects Asean economic in- facilities rather than normal office tegration in 2016 to draw foreign buildings, according to an expert. interest in investing in a condo unit Assistant Professor Atch Sreshthafor rent, as prices in Thailand remain putra, a lecturer in the Architecture lower than in Hong Kong and Sin- Faculty of Chulalongkorn Universigapore, where prices are as high as ty and an expert in green buildings, 800,000 baht a square metre. How- said most property developers still ever, Thai leasehold terms of only had concerns about the cost of con30 years are not attractive enough structing green buildings, believing to entice buyers, Ms Aliwassa said, that the investment would be highadding that the leasehold should be er than for a normal building. In extended to 99 years to make the fact, he said, green-building design price gap closer to that of freehold. is not necessarily that expensive, This will also draw huge... with some projects costing about Full story at http://goo.gl/Ke9gE the same to construct as a standard building, and no greater than 10 per Mass-transit cent more costly, as architectural delocations most sign matches the local environment.

popular

“I am a consultant for the design of Land prices have continued to rise, the Park Venture office building on by over 20 per cent in locations close Wireless Road, for which an... to existing and planned mass-tran- Full story at http://goo.gl/UrH7B

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Looking to setup a new company but don’t know where to start?

• Thai Limited Company • Formation of a Foreign Company – Amity Treaty Company – FTA-Thai Australia Company – JTPEA Thai Japanese Company – Foreign Business Act

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IT / Comms

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DTAC’s phone has creature comforts

Total Access Communication, the operator of DTAC, has announced the launch of the TriNet Phone in its latest move to speed migration from the 2G network to the new 3G service. The TriNet Phone is offered free with a postpaid contract. It comes with a 15-month warranty and various data and voice packages. Prapaprot Puprasert, DTAC’s senior VP for device management and business operations, said the TriNet Phone is part of an “Internet for All” vision to help provide equal access to information and opportunity. CEO Jon Eddy Abdullah confirmed that the new handsets are unlocked and can be used with the SIM cards of other operators. DTAC hopes to sell 500,000 units this year and plans to launch more products soon. Huawei of China makes the TriNet Phone for the company. Mr Abdullah said only 20% of Thais own a smartphone. At an average price of... Full story at http://goo.gl/1HOS3

BlackBerry Thai chief exits

BlackBerry Thailand, the smartphone maker based in Canada, admits it is facing a leadership vacuum amid intensifying local competition. The operating unit of Research in Motion is enduring a management change after country director Benoit Nalin resigned. An industry source said Ben Quirin is tipped to take the post. He will oversee the Thailand and Indochinese markets. BlackBerry is preparing to roll out two new smartphone models early next month in a bid to retain its existing customer base. Both models, equipped with the BlackBerry 10 operating system and qwerty keyboard, are aimed at competing directly with Google’s Android and Apple’s iOS. BlackBerry is working with mobile operator Total Access Communication to promote its new BlackBerry Z10 model, slashing the handset price to 15,900 baht from 20,900 baht for the first 30 customers ordering the phone from DTAC’s on-

rest

To read the fu ll article of a story brief, enter the shor t code at the end the story into your browser: of liam Shakespe are

...added that the set aside a signi company had budget of Bt20 ficant investment million for over0 million to Bt300 seas expansion Full story at http: . //goo.gl/bH6PF

goo.gl/bH6P

...

line store. Meanwhile, Samsung and Nokia have also lowered handset prices, cutting the... Full story at http://goo.gl/4f7Hb

Apps to make your life easier

More and more auto-makers are starting to offer specially tailored applications for smart phones, offering drivers diverse features that will make their lives easier. On the heels of Mercedes-Benz Thailand staging the Asean premiere of its “My Service App” in the kingdom, Japanese carmaker Honda is now offering a special smart-phone application for customers.

Thailand is the first Asean country to get the “HondaLink” cellphone application along with the Honda Roadside Assistance and HondaLink Navigation apps. The carmaker says HondaLink’s diverse features make it faster and easier for customers to access detailed information on their vehicles and other services in a colourful, easy-to-understand and easy-to-use graphical display. The three apps are available for free download from Apple App Store and Google Play. However, HondaLink Navigation has a three-year connection fee of approximately Bt1,200. “Customers can easily configure the app, including inputting their... Full story at http://goo.gl/jGsYm

A student for life enrols himself in the school of life

Haresh Khoobchandani can still remember the time when he thought his career was going nowhere. “After I’d been working with Microsoft for six months, I called a headhunter asking him to look for another job for me and to call me back. It’s the best phone call I’ve never received in my life,” he says with a big smile. Sixteen years later, the native of Singapore is still happily in the Microsoft organisation, which named him managing director of Microsoft (Thailand) last November. Along the way, he’s accumulated a diversified range of experience across a number of product and channel groups, which have given him a unique and outstanding professional profile. “My passion has always been sport,” he says. “Working in IT might be considered the last thing... Full story at http://goo.gl/U0Vjq

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liam Shakespe are Nature and life ar seasons of the yea the phases of the r http://goo.gl/o Caught up in da m zbNM ily ily forget that Asia stands to the b has cycles, too. We gain from W with the econo mi slowdown est of expansion, con c tra cov ery. However, The shift of eco o no mentum to the mic growth mo- phenomena affect... up numerous East has opened Full story at http://go op Asian countries portunities that out, suggests an should not miss Panel: Asia b economist. off, not immu The robust eco fr om global c nomic growth China and em of erging economi will open a ne es KUALA LUMPUR : Th w opportunity sis in the late 1990 for Asian economi s wa es wealth from tra to increase their call for the region that de in goods an out to be services at a tim a blessing i d e States and Europ when the United nearly 15 years later, as t e financial sec Full story at htt are... p://goo.gl/S65D6 able to sus tor is now tain a cer of shocks from the ta Grow with th fallo e fl ow We ste rn Hemisphere, of cycles to a panellist at a rece ‘There is a tid con ference. e men, which, tak in the affairs of leads on to for en at the flood, “There wi ll be more cris tune”, wrote Wi l- future, an d the Asian Sponsored by

Use your smartphone’s QR Code scanner or enter the short code to go directly to AMCHAM’s website.

...

The American Chamber of Commerce in Thailand (AMCHAM) 7th Floor, GPF Witthayu Tower A, 93/1 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Tel: +66 (0)2 254 1041 Fax: +66 (0)2 251 1605 Website: www.amchamthailand.com Email: service@amchamthailand.com

APCAC Doorknock From June 9 – 12, AMCHAM’s Executive Director, Judy Benn, participated in the annual Asia Pacific Council of American Chambers of Commerce (APCAC) Washington Doorknock, in Washington, DC. During the visit, the annual APCAC Award was presented to Senator Daniel Akaka (D-HI), Senator Maria Cantwell (D-WA), Senator Ron Johnson (R-WI), Representative Kevin Brady, (R-TX) and Representative Rick Larsen (D-WA). The congressional members received the award for introducing bipartisan legislation to issur the APEC Business Travel Card for U.S. Citizens. The APEC Business Card helps facilitate business travel and trade with the Asia-Pacific region by removing the need to individually apply for visas or entry permits, and allows multiple entries into participating economies during the three years the card is valid. (For more information about the APEC card, see the Executive Directors letter on page 38.)

(From left) are: Amcham Philippine Executive Director Ebb Hinchliffe, AMCHAM Executive Director Judy Benn, APCAC Vice Chair Tom Clark (Japan), Senator Ron Johnson (Wisconsin), APCAC Chair Steve Okun (Singapore), Amcham Bangladesh Executive Director Abdul Gafur and Amcham Hong Kong President Richard Vuylsteke.

http://goo.gl/mbUpG

Independence Day Picnic On the 6th of July, over 2000 people helped AMCHAM celebrate the USA’s birthday at the AMCHAM Independence Day Picnic. It was another successful day filled with great music, games, prizes, food and drinks as well as the Big Chili Cook-off. With a Baht 200 donation to the AMCHAM Charitable Foundation, participants were able to buy a Chili Cook-Off tasting kit and place their vote for the best chili in Bangkok. Visitors were able to select food from a range of different venues including a full BBQ with real American hot dogs, burgers and ribs, apple pie and ice cream and a selection of classic and craft American Beers. The Venue selection was composed of Anantara Bangkok Riverside, Dairy Queen, Roadhouse Barbecue, Sunrise Tacos, Siam Winery, Baskin Robbins, and others. The day included many memorable activities, such as Bingo, the Egg Toss, a Pie Eating Competition, Basketball Lessons and Tug o’ War. American Rock, Blues and Folk was playing all afternoon from Bangkok’s best American bands with performances by Krispy Durian, Southern Cross, Mekong Doctor Blues & The Groove Junkies, Wildside, Peter Driscoll and His Cruisers, Matt Fischer and the Fishes and Mike Agana and Friends. With a special visit from US Ambassador Kenney and the US Embassy Marines, the day began with the Marines presenting the colors along with performances of the Thai and United States national anthems. The picnic helped raise funds for the AMCHAM Thailand Charitable foundation. The AMCHAM Charitable Foundation helps support Thailand’s education system with donations going to AMCHAM’s scholarship and Adopta-School programs. AMCHAM would like to thank all those who attended and supported the event, including the Independence Day Committee, event and star sponsors, donors to the raffle and charity booth, the volunteers and our event host, KIS International School.

To re enter the sto

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Use your smartphone’s QR Code scanner or enter the short code to go directly to AustCham’s website.

...

The Australian-Thai Chamber of Commerce (AustChamThailand) 20th Floor, Thai CC Tower, 889 South Sathorn Road, Yannawa, Bangkok 10120 Tel: +66 (0)2 210 0216-8 Fax: +66 (0)2 675 6696 Website: www.austchamthailand.com Email: admin@austchamthailand.com

http://goo.gl/N47Gg

School’s in Session at the Beaumont Ruam Pattana School On Saturday 18 May, AustCham’s Community Service focus for 2013 The Beaumont Foundation, was proud to open the Beaumont Ruam Pattana School. This school for the underprivileged was established to serve needy rural communities and offer a high standard of education to ordinary children free of charge with just a commitment from their families to contribute ten hours minimum a month to the running of the school. After a determined period of fundraising and development the school has completed Phase One of the three part project. Phase One features a Kindergarten and Primary Year One classroom along with an administration block and library.

BlueScope 2013 AustCham Ball What a night! With over 400 attendees guests were dressed to impress in their finest blue apparel with even a few in creatively blue-inspired fancy dress. Not only did everyone have a fabulous evening but we saw close to Baht 2 million committed for the enormously worthy Beaumont Ruam Pattana School in Chaiyaphum Province. We also gave away two tickets to Australia courtesy of Singapore Airlines together with a three night stay at the Hyatt Melbourne, a host of other prizes and, thanks to Be Minta, a beautiful blue sapphire and blue topaz pendant. Blackmores vitamins for each guest may have come in handy Sunday morning. Blue macaroons, thanks to Natural Ville and Lenotre, provided a sweet finale to the evening which began with blue cocktails from the Blue Elephant restaurant and Chandon sparkling wine by Diageo Moet Hennessy.

All Chambers Sundowners AustCham is inviting members of all foreign chambers and business associations in Thailand to join Sundowners, our monthly business networking event, and we are looking forward to a large turnout. It is a great opportunity for members of all Chambers to meet, network and exchange views in a social environment. We encourage members to arrive on time to take full advantage of the networking.

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Event details Date: Wednesday 7 August 2013 Time: 18:00 - 21:00 (last drinks served at 20:30) Cost: Baht 550 for members Baht 1,000 for non-members Location: Ballroom, Hilton Sukhumvit Bangkok, 11 Sukhumvit Soi 24

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Use your smartphone’s QR Code scanner or enter the short code to go directly to the BCCT’s website.

...

British Chamber of Commerce Thailand (BCCT) 7th Floor, 208 Wireless Road, Lumphini, Pathumwan, Bangkok 10330 Tel: +66 (0)2 651 5350-3 Fax: +66 (0)2 651 5354 Website: www.bccthai.com Email: Greg@bccthai.com

http://goo.gl/Vav3Q

Introducing our new identity – more than a new brand Over the recent months, BCCT has implemented a number of improvements in the delivery of information, facilitation and services to our members. Expanded business service BCCT has been working with the United Kingdom Trade and Investment (UKTI) at the British Embassy Bangkok and in London on a project which would see BCCT offering market entry services to British businesses wanting to enter Thailand. The project extends beyond the ‘Headstart’, or BCCT overseas membership. The project was officially launched, and the contract signed, by Trade and Investment Minister Lord Green at the Special BCCT Luncheon on Thursday 13th June. For further information about our new services please contact Greg@bccthai.com

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

Brand and Logo stuffy organisation. Some members criticised openly the logo as being old A vital component of our service delivery improvement is for the BCCT to fashioned – almost aggressive.” be recognised by members, colleagues and peer groups as a professional, progressive organisation that provides a bridge between the UK and “As a relatively new member of BCCT I was impressed by the diverse Thai commerce, and delivers an environment that our male and female backgrounds and interests of many of those with whom I spoke. Drawing membership can relate to in a social as well as a professional context. all those interests together along with the core activities of the BCCT is, in many ways, a classic corporate identity challenge. In our business we We have therefore decided to refresh the BCCT brand to reflect our role always emphasise that a true branding exercise should incorporate all the and the diverse nature of our membership. activities of a business. Having attended the April 3rd meeting it was very apparent to me that the BCCT was in the process of refocusing many of its activities so here was an opportunity to ensure the rebranding exercise is carried through to the core of the organisation. The BCCT has a clear vision of its deliverables and the diverse membership was very vocal about their expectations. A refreshed corporate identity is an ideal vehicle to reflect that evolutionary spirit.” The new BCCT brand works on 2 main levels: • It graphically represents the long-standing link and partnership between the British and Thai business communities

Brand identity specialists and a member company GSBI, with offices in Bangkok, have graciously provided their expertise to us free of charge. • It graphically represents an organisation that is about people, connectivity Steven Gravelle, Founder and Managing Director of GSBI (www.gsbi.com) and equality shared with us about the journey that led to this important brand update. BCCT would like to thank Steven Gravelle, Andrew Swain, Paul “I attended the BCCT membership meeting held on April 3rd last year, Groenendyk and the team at GSBI for their tireless effort in developing the where BCCT members were asked to contribute ideas as to how the new BCCT brand and logo. GSBI can be reached at infomation@gsbi.co.nz organisation could better suit the membership. Although it didn’t figure high on the list of priorities there was definitely an undercurrent, particularly BCCT members wishing to request use of the new BCCT logo, or for any amongst the women, that the BCCT was in danger of being perceived as a other BCCT services, please contact Sarinthorn@bccthai.com

BANGKOK BUSINESS BRIEF Mid-July/August 2013

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Entrepreneurship in Thailand Story continued from Page 1.

world), would seem to have the perfect conditions to see a boom in entrepreneurship. So far, that hasn’t happened. A recent CNBC article claimed that “Asians are scared of failing… and this fear of failure is the biggest obstacle in the path of Asia’s entrepreneurs.” The regional experts cited in the article noted that traditional family expectations discourage young people from taking risks, so they are pushed into more stable careers such as law, engineering and medicine. The prescription for the region is a change in mentality and the development of an Asian version of the proverbial American Dream. In Thailand, at least, there are small signs that things are changing. Last November, for the first time, Thailand participated in the Global Entrepreneurship Week (GEW), an initiative “to inspire young people to embrace innovation, imagination and creativity.” The U.S.-based organization has some significant supporters in Richard Branson, Bill and Hillary Clinton and even U.S. President Barack Obama, and GEW Thailand will happen again this year from November 18-23, but the fledgling organization is still small with only 545 followers on its Facebook Page. One other aspect of Thai entrepreneurship that needs to change is for entrepreneurs to look beyond the Thai market. The absence of a truly global brand from Thailand is evidence of the thinking of the market. Even the energy drink Red Bull, one of the few global brands associated with Thailand, is an example of a local product that was taken global by an Austrian entrepreneur. The upcoming implementation of the Asean Economic Community (AEC) in 2015 would seem to offer some opportunity for Thai entrepreneurs and investors to expand into other regional markets, but so far, investment in other Asean countries has been slow. Deputy Secretary-General of the Thai Board of Investment (BOI), Chokedee Kaewsang, recently told The Nation that, “despite a sharp increase in Thai investment to Asean last year, the trend was not constant.” He said that “many Thai entrepreneurs are interested in investing in other ASEAN countries, but actual investments have hardly been realized, except among large corporations.” He also noted that there are plans for BOI to set up regional offices in the other Asean countries by 2015 – whether these offices help spur Thai entrepreneurs to invest in the region remains to be seen. Entrepreneurship in Thailand has a long history in the local market but has had one new, surprising development. According to a recent GEM report, Thailand was one of three nations in the world in which the rate of new business formation among women has surpassed that of men. While that may be surprising to the rest of the world, anyone who knows Thailand is aware of the preponderance of female CEOs and top executives in the country, so the growth in the number of female entrepreneurs would seem to be a natural progression. But how can entrepreneurship in Thailand move to the next level? According to Jonathan Ortmans, President of Global Entrepreneurship Week, “Clearly, there is huge potential in this population of 64+ million. The key is to transform Thailand from a ‘start and stay small business’ economy, to one that nurtures high-growth, highimpact firms.”

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Mid-July/August 2013

The Calendar

July

Sunday

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

Bangkok Trader Networking Party http://goo.gl/6ngBg

goo.gl/6ngBg

Tuesday

Monday

AMCHAM: Scholarship Selection Committee http://goo.gl/t5hMK BCCT: EABC Exclusive Business Luncheon http://goo.gl/ciyFf

AMCHAM: Joint ICT & SME Cmtes http://goo.gl/FZqMr Joint: Boardroom Brief – Digital Advertising http://goo.gl/Mqlbg Bangkok Entrepreneurs http://goo.gl/JihG3

AMCHAM: Legal Cmte – TAI’s new arbitration rules http://goo.gl/NQj2G WebMob Thailand http://goo.gl/dEu8F

Aug.

5 BCCT: Scottish Business Group Meeting http://goo.gl/BQl0d

19 AMCHAM: Legal Cmte – Fair Competition Act http://goo.gl/iYZNd

AMCHAM: Scholarship Selection Committee http://goo.gl/Tec6m

AMCHAM: SME Cmte – Publishing a Book to Market Your SME http://goo.gl/q2CKM Bangkok Trader / Mango Metro Networking http://goo.gl/EnNbR

AMCHAM: HR Cmte http://goo.gl/KK9UX AMCHAM: Marketing Cmte http://goo.gl/SXk6M PPI Professional Hour http://goo.gl/EbSqX

20 AMCHAM: ICT Committee http://goo.gl/gjEAa

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Send us your event details for the Mid-August/September issue by July 9th to reid@bbbrief.com Wednesday

Thursday

BCCT: Two-Day Workshop (Train the Trainer) http://goo.gl/fMBjS BCCT: Seminar on SMEs – how to make money http://goo.gl/dY8nh

AMCHAM: Scholar. Selection Cmte http://goo.gl/1o4jr AMCHAM: Food & Agri-Business Cmte http://goo.gl/mVSXN BCCT: Eve. Presentation (Asian Family Capitalism) http://goo.gl/fxgDr

Friday

BCCT: Two-Day Workshop (Train the Trainer) http://goo.gl/fMBjS BCCT: Board Meeting http://goo.gl/imQrG BCCT: Third Thursday http://goo.gl/I7B5N AMCHAM: Comm. Engagement Cmte http://goo.gl/QeUU8 AMCHAM: CSR Cmte – CSR Best Practice by Yum Restaurants http://goo.gl/0qmbT

AMCHAM: Transportation & Logistic Cmte http://goo.gl/7bRCT AMCHAM: Food & Agri-Business Cmte http://goo.gl/6dFST All Chambers: Sundowners http://goo.gl/s7Qyw

14 AMCHAM: Energy & Environment Cmte http://goo.gl/RszDt

21 AMCHAM: Monthly Luncheon with Tassapon Bijleveld, CEO Thai AirAsia http://goo.gl/7ccfp

20 AustCham: Voluntary English Teaching http://goo.gl/lUMiO

Joint: Eastern Seaboard Networking Evening http://goo.gl/m8I0I Movers & Shakers http://goo.gl/xOfWr

31 AMCHAM: Monthly Luncheon – Minister of Transport H.E. Chadchart Sittipunt http://goo.gl/2hRYW

Saturday

AMCHAM: Board of Governors Meeting http://goo.gl/V53tS AMCHAM: Auto Council Cmte http://goo.gl/llnwm

AMCHAM: YPC Networking http://goo.gl/OSNT7

AMCHAM: Customs & Excise Cmte http://goo.gl/8Zfvd BCCT: Board Meeting http://goo.gl/L1pXQ BCCT: Third Thursday http://goo.gl/8Zi2W

22 AMCHAM: Community Engagement Cmte http://goo.gl/vCdu6

Joint: Eastern Seaboard Networking Evening http://goo.gl/Z1elI

23 BCCT: Commonwealth Golf Day http://goo.gl/6odtF

AustCham: Voluntary English Teaching http://goo.gl/Dr8Cp