Thai Property Guide by Thai-Swedish Chamber of commerce by Scandinavian Publishing Co., Ltd.

This book is published with generous support from the following companies:

President’s Message Dear Reader, Many Swedish families have bought Property or a Condo in Thailand and we see an increasing interest. We estimate that more than 20,000 Swedes have invested in a second home in Thailand at a value of about 100 billion Baht or 20 billion SEK, a considerable amount of money. Every year we see about 450,000 Swedes, almost 5% of the Swedish population, arriving in Thailand to enjoy sunshine, beaches and perhaps golf. They spend about 5 billion Baht/1 billion SEK every year, apart from travel and accommodation expenses, also an impressing amount of money. Many of the Swedish tourists and potential property buyers would like to spend 3-5 months or more in Thailand every year, particularly when they reach retirement age. Repeated visits make the flights from Scandinavia crowded, not only during the Swedish winter but also during the rest of the year. Buying property in Thailand is not easy, however, and may have consequences, not anticipated. Three years ago the Thai-Swedish Chamber of Commerce (TSCC) took the initiative to help, inform and educate potential property buyers by publishing “The Best Practices”. The present Property Guide is a continuation and extension of that work. The Guide not only contains information on how to buy Property, Thai Property Law and related subjects. We have also included other areas of importance, such as Medical insurance, Medical Care, International and Swedish Schools, banking and much more. The purpose is to give you adequate and objective information about topics to be considered, when investing in a second home in Thailand. This Guide offers legal advice, paired with articles on living in Thailand, and will make you more knowledgeable, when going through this important step of your life – buying a second home in Thailand. We would also like to warmly welcome you to “the Property Club of TSCC”. For more information see the last part of this guide. You will, as a member, have access to a network of advisors in many areas – advice that might be the difference to make your life and your investment in Thailand a success . May I also take this opportunity to thank the various authors and sponsors, advertisers and all the people, who have contributed to make this guide come true. Yours Sincerely, Kenneth Radencrantz President TSCC

CONTENTS President’s Message......................................................... 1 Kenneth Radencrantz, President, Thai-Swedish Chamber of Commerce.

Thailand Facts & Figures.................................................. 4 Thailand serves as a gateway to South-East Asia and the Greater Mekong Sub region, where newly emerging markets offer great business potential.

Current Situation in Thailand............................................ 6 Thailand’s latest general election on the third of July 2011 has concluded, but the country’s political direction is far from being conclusive.

Thailand Always Amazes You......................................... 10 The Tourism Authority of Thailand is dedicated to ensuring that tourists in Thailand are always amazed by the unique hospitality and variety that Thailand has to offer.

Thailand’s Residential Market........................................ 12 Five separate articles explain the residential market in Thailand as a whole and specifically in Bangkok, Huahin, Phuket, Pattaya and Chiangmai.

Buying Property in Thailand........................................... 28 Readers of this article share an interests in having property in Thailand, either as a residence after retirement or vacation home, or for investment purpose.

Land Types and Titles..................................................... 34 Land in Thailand may be divided into two main categories and there are several classes of land titles. This article explains the difference.

Property Financing for Foreigners.................................. 35 Loans to foreign home buyers are not only available at commercial banks, under stringent policies, but are also being offered by one private company.

Buying a Pre-Sale Condominium................................... 38 Chances are, you know of someone that has had a positive experience investing in Thai real estate. The question is, how did they do it?

Concrete and Coconuts.................................................. 40 An alternative guide to a successful property investment in Thailand.

Banking for Foreigners in Thailand................................ 48 If you walk into a bank in Thailand, and your total understanding of the Thai language is “Sawadee Khrap”, banking takes on a whole new meaning.

Moving to Thailand Checklist......................................... 52 Like in everything you do you have to have a plan with budgets and time lines. An important part of the plan is to make a Checklist of what to do.

Visa and Work Permit Regulations................................. 54

Foreigners who intend to spend a certain time in the Kingdom of Thailand have to deal with the Thai Visa regulations. Furthermore, to work in Thailand a foreigner has to comply with the applicable work permit requirements.

Serviced Apartments................................................. 56 Serviced Apartments have offered temporary living solutions for individuals and families across the globe for more than 50 years.

Thailand’s Health Care System...................................... 60 When traveling overseas and utilizing health care services, it is nice to know what to expect so that you can be prepared.

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Buying Medical Insurance in Thailand........................... 64 Finding the right insurance solution for you and your family can be a challenge.

Private Banking: Singapore only 2 hours away............. 68 SEB Skandinaviska Enskilda Banken is the leading Nordic private banking provider in Asia.

University Education in Bangkok.................................... 70 Today, more than 16,000 students from all over the world are enrolled in 96 Thai higher education institutions in Thailand.

International School System........................................... 72 The most important consideration for families moving abroad is often the quality of education on offer.

Swedish School in Thailand............................................ 74 The first Swedish school in Thailand was established in Koh Lanta 2004. Now, an affiliate is established also in Huay Yang.

Buying a car in Thailand.................................................. 78 Having your own car will help you get more out of your stay in Thailand.

Watch Swedish TV in Thailand....................................... 80 SVT World is Swedish Television over satellite transmission. All you need is a satellite dish and decoder.

Golfing in Thailand.......................................................... 84 Thailand and Golf just seem to go so well hand in hand, the weather, the world class golf courses. Move here and start playing.

Internet in Thailand.......................................................... 86 The Internet has become our lifeline to information, communication and entertainment. Does it work in Thailand?

Dental treatment in Thailand........................................... 87 If you just need a cleaning, any dental clinic in the vicinity can do. But for more complicated dental work, you need some planing.

Relax - Have a nice cup of coffee.................................. 88 The quick guide to ... Enhancing your favorite coffee experience

Property Buying Checklist.............................................. 90

This list will help you remember all the little things you tend to forget when the seller wants to sell and you are so hot.

Thai-Swedish Chamber of Commerce........................... 92 When you make your move, join the largest organization for Swedish people in Thailand, Thai-Swedish Chamber of Commerce.

Acknowledgement

The Thai Property Guide by Thai-Swedish Chamber of Commerce has been published with generous support from Bangkok Bank, Black Mountain, Colliers International, Glenasia, Hvidsten Group, Nishaville, Tourism Authority Thailand and SEB.

94 Thai-Swedish Chamber of Commerce l 3

Thailand Facts & Figures (source German Thai Chamber of Commerce) Country name

Kingdom of Thailand, formerly known as Siam. Thailand serves as a gateway to South-East Asia and the Greater Mekong Sub region, where newly emerging markets offer great business potential. From Thailand, it is convenient to trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), with the latter currently having a population of more than 500 million. Thailand is a friendly country for doing business, ranking 12th out of 183 nations in an annual survey by the World Bank and International Finance Corp. Land area Thailand is situated in South-East Asia, bordering the Andaman Sea and the Gulf of Thailand, to the south-east of Burma. It covers 513,115 square kilometres, extending about 1,620 kilometres from north to south, and 775 kilometres from east to west at the broadest point and 10.5 kilometres at the narrowest point. The country has a coastline of approximately 1,840 kilometres on the Gulf of Thailand and 865 kilometres along the Indian Ocean. Topography Thailand is divided into four natural regions: - The mountains and forests of the north - The vast rice fields of the central plain region - The semi-arid farm lands of the north-eastern plateau - The tropical islands and long coastline of the southern peninsula. Climate

Lowest point

Tropical, with three distinct seasons: a hot and dry season from February to May; a cooler but very humid season with monsoon rain from June to October; and a cool, dry season from November to January. Temperature ranges between 23.0 degrees Celsius and a high of 32.7 degrees Celsius. Gulf of Thailand 0 meter

Highest point

Doi Inthanon 2,576 meter

Geographic coordinates 15 00 N, 100 00 E Local Time GMT/UTC offset: +7hours National Flag The three colours red-white-blue stand for nation-religion-king, an unofficial motto of Thailand. The flag was adopted on 28 September 1917 replacing an earlier design in which a white elephant was placed against a red background. Capital Bangkok was founded in 1782 as the capital city of Siam on the east bank of the Chao Phraya River. Bangkok is the world's twenty-second largest city by population with 5,710,883 registered inhabitants (Population Census as of 31 December 2008) which is 9 per cent of the total population of Thailand. Due to a large number of unregistered permanent migrants from north-eastern Thailand as well as other Asian nations, in combination with those who commute to Bangkok during the day for work, the population of greater Bangkok is close to 10 million. The Greater Bangkok Metropolis comprises an area of 1,568 square kilometres. Bangkok Province borders six other provinces: Samut Prakan, Samut Sakhon, Chachoengsao, Pathum Thani, Nonthaburi and Nakhon Pathom.

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Population

The population of Thailand is 67 million persons (Population Census as of 31 December 2009) The population includes ethnic Chinese, Malays, Cambodians, Vietnamese, Indians, and others. Immigration is controlled by a quota system.

Life

Total population: 73.1 years expectancy Male: 70.77 years at birth Female: 75.55 years (2009 est.)

Currency

The Baht is the standard currency unit, 1 Baht = 100 Satangs

Currency code THB Average Baht per Euro: 40.94 (2009), 48.9321 (2008), 47.2618 (2007), 47.5531 (2006), exchange rates 50.0214 (2005), 49.9860 (2004), 46.8944 (2003), 40.5702 (2002) Internet TLD

.th

Calling code

+66

Electricity

220 volts 50 cycles throughout the country

Work force

The size of the work force now exceeds 34.1 million, with the majority of the workforce under 30 years of age.

Minimum wage As of 1 January 2010: 206 Baht per day in Bangkok and slightly less in the provinces. As of 1 January 2011: 215 Baht per day in Bangkok and slightly lower or higher in the other. GDP

GDP US$ 263.5 billion (2009) GDP per capita US$ 3,921.3 (2009) GDP growth (2009) -2.2 % (2009) GDP growth (2010, projected) 7.0-7.5 % Export Growth (2009) -13.9 % Export Growth (2010, projected) 25.7 %

Balance

Trade balance US$ 19.4 billion (2009) Current Account Balance US$ 20.3 billion (2009) International Reserves (2009) US$ 138.4 billion (2009) Capacity Utilization 60.93% (2009) Manufacturing Production Index 180.44 (2009) Customer Price Index 108.6 (August 2010)

Tax

Corporate Income Tax 10-30% Withholding Tax 10-15% Value Added Tax7%

Thai-Swedish Chamber of Commerce l 5

Current Situation in Thailand Thailand’s latest general election on the third of July 2011 has concluded, but the country’s political direction is far from being conclusive. By Apichaya Wuttipongpreecha and Witthawin Saenganee Translated by Thanutvorn Jaturongkavanich

everal questions have been raised even before the election and seem to linger on, adding even more confusion, especially for the eye of Western observers, to this already perplexing and enigmatic country. Even though Thailand is a democratic country like many others, the Kingdom seems to possess some special characteristics that make it different from the rest. What are these factors that make Thai politic today unique and sometimes elusive to the understanding of the West?

Thai Politics Let’s begin from the most straightforward fact: Thailand is a sovereign state with the king as the head of state. It is the fourth biggest country of Southeast Asia in terms of population, which currently stands at 67 million. Thailand’s democratic journey officially began on 24th June, 1932 and it has been 79 years since that Thai people have learned what ‘Democracy’ means. Up till now, there have been 27 prime ministers, and we are soon to witness the appointment of the first female prime minister in Thai history. All told, there will be 28 prime ministers who have led 59 cabinets in total (excluding the one that is forming as we speak.) As for the system of government, Thailand is reigned by constitutional monarchy with parliamentary democratic system. According to the Constitution of the Kingdom of Thailand, this form of governing system is referred to as ‘Democracy with the King as Head of State.’ The current constitution was passed in 2007, which is the 18th charter since the birth of Thai democracy, and describes the division of governmental

structure into three branches: • The Executive branch: Prime Minister is the leader of the government and the executive branch. He or she has to be appointed by the king, with the counsel from the President of the National Assembly and the cabinet. • The Legislative branch: Thai National Assembly is made up of two houses- the House of Representatives and the Senate, amounting to 630 members in total. The legislative branch is led by the President of the National Assembly. • The Judiciary branch: The Judiciary consists of the Courts of Justice, the Administrative Courts, and the Constitutional Court. The three Courts are led by Supreme Court President, Supreme Administrative Court President, and Constitutional Court President respectively. The Constitutional Court, comprising 9 judges, completes its term every 9 years. The House of Representatives comprises 500 Members of Parliament, 375 of which are elected directly from electoral constituencies nationwide and 125 of which are selected through the ‘party-list’ system. The term lasts 4 years. Correspondingly, for each term Prime Minister takes the government’s helm for 4 years. He or she can be reelected but is not more than 2 terms, that is, 8 years, consecutively. Prime Ministers are not direct elected by voters but are selected and approved by their representatives, Members of Parliaments. The Senate chamber consists of 150 members. Each province (Bangkok included) elects one which becomes a body of 77 senates. Another 73 are selected by the 7 officials of the Senate Selection Commission. The term lasts 6 years and none is allowed to hold the position for more than one term consecutively. One of the most distinguishing features of Thai politics is the Monarchy. The reigning King Bhumibol

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Adulyadej (King Rama IX) spiritually unites the nation through the lifelong dedication to his people, earning him international recognition and the respectful epithet “King of Kings.”

and against the government from various cast including the military and common people, who recently have been unprecedentedly playing significant roles.

But is the above summary enough to account for Thailand’s current political landscape? What is the explanation for the ongoing political movements and situations? Towards what direction is Thai politics heading?

It is difficult to pinpoint what exactly is the main catalyst for all these political phenomena. However, along this road of Thai democracy one positive change is noticeable: the increase in people’s participation in politics. The animated atmosphere on the 3rd of July election was evident of people’s rising awareness of the importance of their involvement in deciding the future of their country. Increased accessibility to media, namely the now hugely popular social media, enabled people to follow politicians’ work and campaign closely. According to the survey, the voter turnout for this election reached as high as 75.77 per cent, a record-breaking figure in Thai political history.

Thai Political Situation and People’s Participation Recently, international communities seem to take great interest in Thai political climate due to a number of activities, both democratically speaking ‘normal’ and the contrary. Thai political dramas are played out both in the parliament and on the streets: we have witnessed elections, coup d’etats, uprisings in support

One may attribute the surge of enthusiasm in democratic process among Thais to the April 2010 uprising. Even the demographic group who was once indifferent to politics such as teenagers were influenced and started to become political-conscious. Young people became a more prominent driving force in political sphere to the extent that some major parties organized activities to recruit young-blood MP candidates. This is a new development in Thai politics where conservatism once ruled and only already established politicians and their relatives got elected. An advantage that these new generation of politicians bring with them is the heightened sense of patriotism. The population of Thailand comprises various ethnic groups who migrated to the country 3-4 generations ago which made it comparatively more difficult to forge the sense of national identity. This is not the case with

Thai-Swedish Chamber of Commerce l 7

younger generations, who are imbued with patriotism and regard themselves wholly as Thai. With that sensibility comes a stronger commitment to make their country better. From a human resource perspective, Thailand has got quite a promising batch of political movers and shakers.

What the Government has Achieved Overall, PM Abhisit Vejjajiva’s economic and financial administration has fared rather well despite political turmoil caused by continual discontent from and clashes between both the Red and Yellow Shirts. In addition, the economic crisis in Europe and the United States also presented challenges to Mr. Abhisit’s ability to sustain the country’s financial well-being.

slightly lower when compared to the figure 3.8 per cent of the previous quarter. For the investment alone, the growth rate stands at 9.3 per cent. After the seasonal adjustment, the GDP growth rate of the first quarter of 2011 is 2.0 per cent, with the agricultural sector expanding up to 6.7 per cent, an impressive rate considering the regression to 3.5 per cent in the previous quarter.(Office of the National Economic and Social Development, 2011. Gross Domestic Product: Q1/2011)

Indicators of Mr. Abhisit’s success include the lowest unemployment rate in Thai history (0.7 per cent as of the end of 2010.) Thailand was “ranked 13th” on the list of countries with the largest Foreign Exchange Reserves by the end of May 2011, with the figure of 155,156 million Baht.

The number of tourists has been increasing continually. Kasikorn Research Center forecast that 2011 can anticipate 16.33 million inbound visitors. The confidence among players in business sector is going strong. In an interview with Thai mega business tycoon, Mr. Thanin Chiarawanon, Chairman of the Board of CP ALL Public Company Limited, he said that, from his 47 years of entrepreneurship, now is the country’s best moment for business and financial opportunity. He mentioned that Thailand’s 208 billion USD Foreign Exchange Reserves is the largest in the country’s financial history.

In the first quarter of 2011, Thailand’s GDP grows at the rate of 3.0 per cent,

All these are evident of Thailand’s economic stability and its prospect for

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growth notwithstanding interferences from political turbulence. It can be assured that regardless of whoever the future government are, the work done will be continued without hindrance.

What is the Next Chapter, then? Considering the growing political participation from the public and what the incumbent government who is about to step down has accomplished, Thailand’s potential for investors can hardly be overstated. However, the stability of the incipient government will play a crucial part in determining the country’s future. We speculate that within the 2 quarters, the government’s direction will become better-defined. If the policies promised during the electoral campaigns are eventually realised, Thailand will be systematically developed. Infrastructures such as national and international transportation systems should be enhanced as promised, along with measures to alleviate poverty and drug problems. In addition, we may expect to see more funding on education, visa waiving for visitors from the Middle East and Japan which will help boost up Thai tourism.

Thailand: Always Amazes You The Tourism Authority of Thailand is dedicated to ensuring that tourists in Thailand are always amazed by the unique hospitality and variety that Thailand has to offer.

his year, Tourism Authority of Thailand (TAT) is focusing on “Green Tourism”. The motto is “Save money. Save the environment.” It incorporates the ideals of conservation and efficient management with cost savings to be passed on to tourists. As part of the “Go Green, Go Thailand” campaign, TAT has invited tour agents, media and travelers to participate in conservation activities such as tree planting and projects to protect the coral reefs. In conjunction with the “Go Green Campaign” is the Community Based Tourism Program. There are over 80 communities working with TAT to develop community-based tourism.

Regional differences Each of the five major regions of the Kingdom offers its own special delights. The varying products and services cater to every need and desire. Visit all five regions and be amazed five times over!

BANGKOK: Blend of Old and New Bangkok, Thailand’s capital, is a bustling city that truly “never sleeps”. It can be overwhelming, busy and exhilarating, but it is never boring. It is

trendy, chic, traditional, historical and ancient. Bangkok is not just the capital of Thailand’s government, but also the capital of its business, diplomatic, cultural and educational communities. Bangkok’s cultural wealth and heritage is expressed in the more than 400 glittering temples to be found throughout the city. One of the newest additions to amaze visitors and help them explore the rich royal culture, graceful Thai architecture and traditional performances and ceremonies, is the interactive museum Nitas Rattanakosin. It is dedicated to the grandeur of the Rattanakosin era, 1782-1932. For true modern comforts, Bangkok offers some of the most impressive shopping facilities in the world. Spas await to pamper and restore. Restaurants, bars and nightlife offer a variety of fare and entertainment.

CENTRAL & EAST COAST: Land Meets Sea Just a short distance from Bangkok, relaxation and exploration are found in the Central region and the East Coast. Begin the adventure with the Flight of the Gibbon at Khao Kheow Open Zoo. Here the visitor can experience the grandeur and magic of the rain forest from above the jungle canopy. The highest canopy zip-line in the world offers an educational adventure that is unforgettable. Community Based Tourism features themes such as “Fascinating Fishers Life” and “Learning, Living, Sharing” in Prachuab Khiri Khan (Hua Hin), Petchaburi and Samut Songkram. One of the most authentic fishing villages in the region is Salak Kok Bay. It is small, pretty and untouristed. This is Thailand’s “adventure region”. Koh Kood offers many water based exploration activities. Chief among these is snorkeling at Tapao Beach. One of the hidden gems of Koh Chang is the river trip that leads to one of the largest firefly areas of the world. Enjoy dinner by this unique light. For one more adventure, tourists can take advantage of the kayaking offered on both Koh Chang and Koh Kood.

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NORTH: Misty Mountains Northern Thailand offers mist shrouded mountains and luxury, views of Myanmar and Laos, plus cultural glimpses of Thailand’s first Kingdom, the Lanna Kingdom. It is the perfect setting for meditation in one of the tranquil temples. Meditation classes and courses are offered to calm the body and soul, perfect for Buddhists and non-Buddhists alike. Luxury can be had at any number of resorts and hotels with a range of decors and scenery from secluded mountain retreats to city penthouse style accommodation. Where fivestar accommodation goes, so does shopping and restaurants. The North is the place to get the best of hilltribe arts and crafts along with contemporary items. Totally different and unique, elephant camps offer adventure and a taste of the wild. They recently have become venues for “destination” weddings.

NORTHEAST: Magical Mekong Isan, Thailand’s Northeast is a distinct area in terms of culture, dialect and traditions. Three outstanding National parks can be found here – Khao Yai, Phu Kradung and Phu Rua in Loei. This is the area to view sandstone shrines of the Khmer empire in Phimai Historical Park and to see evidence of Bronze Age settlements and its indigenous pottery.

SOUTH: Sand and Sea The ultimate relaxation is yours on the peninsula that is southern Thailand. Explore both the Andaman Sea and the Gulf of Thailand while discovering the Chinese and Malaysian influence in the wonderful southern food. Explore the exotic nature of pink dolphins at Taled Bay in Had Khanom National Park from your own kayak. Khao Sok National Park has untouched rain forest and unique flora and fauna. Island hopping from Koh Samui to Kho Tau to Krabi and Phangnga is the perfect way to experience Thailand’s south.

Thailand's residential market:

Who Is Buying and Where Are They From? This article will focus on the residential market as a whole but will be broken down by buyer rather than location to gain a different perspective and will allow for a different understanding of the dynamics at play in Thailand as a whole. By Colliers International 12 l Thai Property Guide

t comes as no surprise to hear that Thais themselves provide the bedrock to the residential market. However the first condominiums in the eighties were targeted more at the foreign buyer market due in part to Thais having lower incomes at that time and also high-rise living was yet to take off as a lifestyle concept and it took the development of mass transit lines for the â&#x20AC;&#x153;condo cultureâ&#x20AC;? to really take effect for those comfortable with urban living. In very broad terms the Thai market can be broken down into three segments based in income. The high net worth individuals are still attracted to landed property and in Bangkok

new grandiose villa developments along Ratchapruek road and KasetNawamin area are proving very popular. For a second home wealthy Thais are generally attracted by highend villa complexes especially in Hua Hin. However Pattaya is also emerging as a second home destination especially in the Wong Amat area. The other interesting weekend retreat for Thais is Khao Yai. This hilly area located two hours away from Bangkok provides a more earthy and relaxing location compared to the coastal resorts and many are attracted by the peace and quiet in addition to cooler climes. Many have owned tracts of land for

years and are often in no rush to develop them as they are more for personal enjoyment than profit. Some individuals decide to locate on one of the island resorts but the distance from Bangkok means that the coastal areas of Phuket and Samui rely more on foreign demand in the luxury segment. The development of condominiums along the mass transit lines has attracted high income earners of above 50,000 baht a week in the capital to purchase these units to escape the eternal Bangkok traffic jams and engage in a very modern urban lifestyle that developers are now targeting. According to Colliers research, projects within 200 metres of a station can command far higher prices and achieve better take up than those further away. Once the distance involves another mode of transport other than a short walk then the appeal diminishes. This high-earner segment also represents demand for a second home in Hua Hin/Cha Am and Pattaya with many condominiums in the three million baht category proving very

popular. Many are now entering their fifties as the nation begins to age and are more likely to have fewer dependents as well as extra capital from inheritance. This age group will be a main player in the market for a long time to come. The main story in Bangkok but also in other parts of Thailand is the reaching into lower income segment markets, where ownership was previously out of reach. More developers are offering small units in out of the way suburban areas that can be lower than one million baht but allow many to put their first steps on the property ladder. While Bangkok captures the headlines places like Phuket have a significant number of developments that cater to Thais who work and live on the island and there are far more units both landed and condominium inland than those on the coast appealing to foreigners. According to Real Estate Information Centre around 88% of condominium purchasers were first time buyers. In Thailand as a whole foreign demand has not rebounded back to the preLehman days where developers and

agents alike reflect on what was considered a golden period. The traditional buying markets of Europe and North America remain weak due to ongoing economic malaise and poor exchange rates although buying activity has picked up since the lows of 2009. However new markets have sprung up changing the dynamic of the foreign market. It is very difficult to discern trends among the very high net worth individuals simply because their limited number and that their behavior does not reflect trends for their nationality as a whole. Basically it could be a super rich Brazilian, Kuwaiti, Azerbaijani or almost a citizen of almost any country that might purchase the next luxury property. However within South East Asia, Phuket still retains the cache of high-end luxury that can only be challenged by Bali. Phang Na bay presents great potential as a superyacht destination and Phuket will likely be the hub leading to future marina development and corresponding high-end residences. Samui will continue to struggle as a luxury brand due to limited direct access and poor infrastructure.

Thai-Swedish Chamber of Commerce l 13

Pattaya remains a strong market for Europeans of various spending power. The one to three million baht condos are proving very popular around 500 metres from Jomtien for many, including retirees with limited capital. The surge in babyboomers with limited income and capital in the next twenty years will keep the market for lower end condominiums very strong. The biggest change over the past few years is emergence of the Russians as the strongest foreign buying market

in Thailand. At first Pattaya was the target especially in the Pratumnak area by Cosy Beach, which can resemble the Black Sea these days. However the Russians are now spreading their net further as significant buyers in Hua Hin, Phuket and beyond although this tends to be for higher income groups.

The Japanese are also a presence in the market although many are attracted to Chang Mai in the north due to its more peaceful nature, cooler climes and of course, an abundance of golf courses. Other East Asian markets are not on the radar screen such as Korea and Taiwan.

The Middle Eastern market is also growing strongly albeit from a low base and many are attracted to Phuket due to its luxury appeal and also a large Muslim population. At present the market is mostly Saudis and UAE citizens but Iranians are a very strong tourist market for Thailand but restrictions regarding withdrawal of money from their country impede them from purchasing property at this time. Just as the Russians have become strong buyers many are now looking at the Indians and Chinese as the potential growth area for the future.

The Swedish, Danes and Norwegians still represent a strong buying force that belies their population. Hua Hin still retains a special affection and many are looking to the hillsides overlooking the sea for their home in paradise. Rayong is also proving popular for this market. Although the exchange rates of these countries have declined in relation to the baht over the past few years this is to a lesser extent that that of the Euro and Pound Sterling for example. Tourism from Scandinavia to Thailand remains very robust and we expect the market to continue to be a dynamic one for the country.

At present the tourism numbers are strong but it will take some years before these groups become significant purchasers of Thai property. However many are now taking the first steps to being property buyers by making initial enquiries from real estate agents on the ground. Increasing direct flights will also help to stimulate buying from these countries.

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Overall the traditional foreign buying markets look set to bounce back but whether it returns to the heady pre2007s remains to be seen. However new markets look set to be the main engine for growth backed up by a very solid domestic demand.

Hua Hinâ&#x20AC;&#x2122;s Condominium Market Overview 2011 2008 AND 2009 was a difficult period for the Hua Hin market, with many developers delaying their project launches due to the unclear economic and political environment.

By Engel & VĂślkers

owever, we have seen that the performance of Hua Hinâ&#x20AC;&#x2122;s condominium market has started to pick up from the beginning of 2010, especially for the Thai market. The market has

shown very strong performance during the last peak period (November 2010 to Feb 2011). Most of the newly launched projects have well-managed marketing campaigns and are able to achieve satisfactory levels of units sold. However, there was still a certain amount of unsold stock from projects that have been launched and marketed for longer periods, which has hurt the image of overall market performance. The accumulated unsold stock may put a price barrier on projects that have a planned launch during 2011. Foreign buyers are looking for more peaceful locations, with proximity to a beach, within a reasonable price-range of 4 to 6 million baht per unit. Unfortunately, they are also concerned about the credibility and ability of the developers to complete projects and deliver the units to them. In the past, there were small-to-medium sized

16 l Thai Property Guide

developers or foreign investors that were very serious about penetrating this segment. Lately, we have seen some big Thai developers attempt to modify their product to better suit the foreign buyer. Thai Baht appreciation has increased the cost of buying property in Thailand by a significant margin, and foreign buyers now have less purchasing power. Some foreigners have adjusted their budgets and are now looking for properties at a lower price range. There are also groups of foreign buyers that have decided to delay investment until the exchange rate has normalized. The world’s economic situation has improved and Thailand’s political environment has begun to stabilize, assuming no unexpected developments postelection. We are confident that Hua Hin’s property market is moving towards its performance level in previous years. We anticipate the next peak season will be an auspicious time in the foreign buyers’ market for Hua Hin’s property.

several large land transactions made by a large developer during the early months of 2011, with a plan to develop a large, residential project. The increase in the land cost has also pushed the price of condominium units in Hua Hin’s City Center on a steep upward trend. However, the buyers still prefer projects that are located near the City, and the lack of land for development in this area may also push the price of the resale market upward, due to buyers seeking resale units in a good location. Nevertheless, we project that prices will not increase sharply in the near-future, since we have seen that projects with an average price range of 50,000 to 75,000 baht per sq.m. have performed strongly. Regarding the resale market, we have seen that there are many vacant units, which haven’t been fully

utilized by the owner and may be available on the resale market in the near future. On the other hand, all of those units available in the market do not meet the requirements of the top end market in terms of material and construction quality. There is still the room for such a market, with very low competitive condition. In the case that newly launched projects are properly conceptualized, with good quality material and construction; units with good sea views can achieve prices that are higher than the current market standard. For More Information please contact; Bunthoon Damrongrak (Business Development Manager) ENGEL & VÖLKERS • Thailand Tel : 02 7128928

There has been substantial increases in land prices - of more than 50 percent - during the last 5 years, for beachfront land plots in the City Center and adjacent areas. There have also been changes to building regulations that had been barriers to developers, which had previously placed a litany of limitations on developing beachfront projects. However, beginning in the second half of 2010, many developers have redoubled efforts in Hua Hin and were actively searching for the land plots for future development. There have been

Thai-Swedish Chamber of Commerce l 17

Phuket market picks up but yet to return to the boom period The year 2010 and the first half of 2011 represented a bounce back from the lows following the Global Financial Crisis with foreign buyers honing in again on the island. By Colliers International

hen analyzing the Phuket residential market a distinction should be made between the inland area of Phuket, which contains the vast majority of units and the coastal area with a lower number of properties and land plots but higher capital values. The coastal market is far more reliant on foreigners than the resorts of Pattaya and Hua Hin as most wealthy Thais prefer having second homes in the resorts close to Bangkok due to the easier access and therefore the coastal areas of the island tend to be more foreign focused and as a result prone to the global economic situation. Although landed property dominates the residential market, especially inland, 2010 was one of the rare years when more condominium units were supplied. Around 1,020 units were supplied for 2010 while up to 200 units were supplied up to May in 2011. Most of the units are located inland and at present the Thai domestic market is acting as the main dynamo. The high end coastal market has yet to return to the heady days prior to the Global Financial Crisis but the success of a number of projects points the way to a recovery. In many ways the glass at present can be perceived as half full or half empty depending on whether you are comparing with the period around 2006-7 or the situation in 2009. The recent success of Andara in Kamala shows that Phuket still remains the top destination for luxury property. High end buyers are coming from a wider range of countries, not just Europe, with Hong Kong, Russia, Australia and

18 l Thai Property Guide

Historical supply of condominium units by year, May 2011

Source: Department of land, Colliers International Thailand Research

Price per unit and location

Source: Colliers International Thailand Research

Low cost carrier effect

Estimate of average selling price per unit of condominium unit available for sale in Phuket the Middle East becoming key markets now. Developers are reconsidering their marketing strategies to suit the changes in buyer profile. One development is being marketed as a halal investment, including a womenonly swimming pool, in order to appeal to Muslim buyers. Kamala and the surrounding area on the North West coast is the upand-coming location for high end development. Millionaire's Mile contains plenty of land available for future development of luxury properties. An interesting prospect will be Phuket's future as a marina for superyachts. Asia is fast becoming a cruising destination to rival The Caribbean and Mediterranean, with less crowded waters in which to sail. Wealthy Asians are now a strong buying force for superyachts, as many are becoming comfortable with the sea-faring lifestyle. Phuket's status

Source: Colliers International Thailand Research

as a renowned yachting destination through its marinas and exotic outlying islands could be enhanced through further development and boost the high end property market still further. In fact, the whole area encompassing Phuket, Phang Nga and Krabi could evolve as the world's premier yachting destination in the future with Phuket as the main hub. This would place on the Eastern side of the island where there are two existing marinas.

the United States return to compliment the growth of the emerging markets. One thing remains despite all that has happened over the past seven years; Phuket stands for luxury.

One other important factor in Phuket's favour is the growing number of international direct flights especially as a result of the proliferation of Low Cost Carriers. This leads to greater numbers of tourists coming to Phuket which will eventually translate into property buyers. The residential market in Phuket for foreigners has yet to return to the pre-Lehman days but it is well positioned when buyers from the traditional markets in Europe and

Current supply of residential units in coastal Phuket by type and location

Source : Colliers International Thailand Research

Thai-Swedish Chamber of Commerce l 19

The Pattaya Growth Story Continues Apace The first half of 2011 marked another eventful period for the condominium market as the city develops into a truly international city. Overall the number of launches in the first half of 2011 exceeded the number for the whole of 2010 with nearly 5,200 units coming onto the market. By Colliers International

20 l Thai Property Guide

he foundation for the condominium market occurred in 1992 with the development of large scale condotel style properties such as Metro Jomtien. This was the result of the Condominium Act in 1989 which opened the door for the development of high rise residences. Initial demand came from foreign buyers as Thais did not provide the significant engine for demand as they do now, although many were beginning to benefit from the economic boom and consequently purchasing property. In fact the number of condominium units supplied in Pattaya exceeded that of Bangkok in the early nineties. The next surge in growth was the result of the economic boom that peaked in 1997 before the fall. A more limited but sustained level of supply came onto the market in the first few years of the new century but picked up in the latter half of the last decade.

The initial growth in supply in the city was dominated by Pattaya bay. However in 1997 a significant addition was made to Jomtien supply by the Jomtien Beach Condominiums (known as Rimhat). The two areas continued to be the main target for developments up to the present day. Jomtien has since overtaken Pattaya due to the greater availability of land, especially close to the sea. The Pratumnak and Wongamat areas have developed on a lower trajectory of growth over this period. From the year 2005 onwards, Wongamat has increased dramatically with the addition of nearly 3,000 units in the past six years and is now on a par with Pratumnak. Na Jomtien has been the laggard, primarily due to the absence of a road running along the coast and available land in more accessible locations in the city. Many Pattaya based developers such as Nova Group, Heights Holdings and Matrix Development have a strong presence and portfolio in the city. However a number

Condo units launched 1st & 2nd half of 2010 and 1st half of 2011

Source : Colliers International Thailand Research

of listed developers including Raimon Land and Major Development also have a significant footprint. The latest key addition comes in the form of LPN Development, Bangkok's key condominium developer, who have recently launched their first ever project in Pattaya with two more expected in the coming months. This could set the stage for more of real estate's big hitters to follow.

markets further leading to more tourists, more jobs and therefore more residential property interest in the future. It is only a matter of time before the first international office building will be constructed in the city. With further growth in the Eastern Seaboard industrial area, Pattaya will take on the role of a commercial hub, especially with the location of the airport in proximity to the city.

Pattaya has transformed itself over time and now many investors are surprised by the city's growing status as a truly international city with top rate facilities. Other real estate developments are helping to cement the city's increasing prominence. Central Festival has been a very strong drawcard since opening a couple of years ago and more refurbishment of older retail centres should be something for the future that will add to Pattaya's appeal. Another important project is the King Power Duty Free Complex, set to open in September that will add to the attractiveness of the city as a tourism destination. Strong tourism source markets such as China, Russia, India and Vietnam will be the target and this new centre can only help grow these

There is a growing trend of a hotel component in condominium developments in the city. In fact in the first half of 2011 three agreements were reached between developers and hotel brands. The first was Amari, a well known hotel chain, who will manage the previously named The Legend on Cosy Beach by The Nova Group with the lower floors being operated as a purely Serviced Apartment and the upper floors as residences. Following from this Centara, Thailand's largest hotel chain, will manage the Centara Avenue Residence and Suites in downtown Pattaya on behalf of the Tulip Group. Sales have been brisk for both projects and one key reason is the hotel aspect. Probably the most significant tie up is also a project by the Tulip Group in

Current supply of condominium units in Pattaya by location

partnership with the Park Plaza group, a global hotel chain; who will develop the Park Plaza Waterfront located near Bali Hai pier, offering views overlooking the bay. There are several reasons why hotels and condominium development arrangements can be successful. Buyers like the best of both worlds, which means residential facilities are separate from that of the hotel/serviced apartment component but they can also take advantage of what the hotel offers such as room service and housekeeping for added convenience. Maintaining the property's value is also a key advantage. Hotel management will ensure proper upkeep of the property and therefore capital values will remain buoyant but with the added benefit of better rental yields, a very seductive proposition for any savvy buyer.

Source : Colliers International Thailand Research

Thai-Swedish Chamber of Commerce l 21

Chiang Mai: Living in the Rose of the North An insight to living in Chiang Mai from the Swede Ulf Thepper In late 1991, I agreed with my employer SAS to leave earlier without really knowing what to do. Then in June 1992 an old business friend asked me to help him set up his companyâ&#x20AC;&#x2122;s second factory in Thailand at Lamphun 25 km from Chiang Mai. By Ulf Thepper

24 l Thai Property Guide

moved in October 1992 to Chiang Mai, but my wife as a teacher (Thai-home language) and my daughter that had just started her second school year preferred to wait until end of the school term. In 1997 we bought a house and moved to a house compound (Moo Ban) named Nai Fun 3. We are still living there - Have you once been living in Chiang Mai you will always prefer this city in comparison with any other places in Thailand. To live at a beach resort with all tourists running around in the hotels, bars and restaurants and having longstaying country fellows living next to you in your Moo Ban is different. You should always think of these things before you decide where to stay. Prices are also higher in these places if you compare them with for example Chiang Mai.

So what is so fantastic with my city â&#x20AC;&#x201C; The Rose of the North? We have a lot of tourists coming here every year, particularly Thai tourists. Mountains are surrounding in all directions as Chiang Mai is located in a valley. The temperature is usually lower than in Bangkok and at the eastern seaboard area, as the city is located about 350 meters above the sea level. This is particularly noticeable during the nice and cool evenings in the winter season. We have also a lot of foreigners living here all year around, about 50,000, so you will never feel like a tourist.

Attractions in Chiang Mai There are so many things available to do here, undoubtedly much more than any other place in Thailand, here I will mention a few of them.

• There are over 10 Golf courses of very high international standard inside or close to Chiang Mai just 30 -50 minutes away from downtown.

to 2 bigger Moo Bans (80-400 houses) each year. Most of these houses have 3 bedrooms and usually a nice kitchen in western standard. The price for these houses varies from 3 to 6 Million baht. Particularly my Moo Ban has a fantastic pool and club house that also is provided with one of the best Thai restaurants in Chiang Mai (see pictures).

• Night bazaar with Anusarn market, where you can buy a lot of different things and eat relatively inexpensive. • In addition on Saturdays they close one special street and on Sundays another one located in the old city and make them into walking streets both about 3 km long, where the locals are allowed to sell all kind of goods and articles to the public. • You can visit the Night Safari about 7-8 km from downtown. It is a fantastic place, where the wild animals come very close to the visitors. • Next to the Night Safari there is a big park Rachapuek, where they were holding a big international flower exhibition some years ago. This was really a success and this year they will do it again for 3 months starting in November and ending in February. • About 15 minutes north of Chiang Mai in an area called Mae Rim you will find many different attractions like elephant camps, orchid farms, waterfalls, botanic garden etc. The best attraction is probably the one named ‘Flight of the Gibbon’ voted to the best attraction in Thailand. Another unusual attraction is the Tiger Kingdom where you can have a very nice lunch and go in and pet a full grown tiger inside his cage. • There are more than 100 temples in Chiang Mai, with the most famous, Doi Suthep, located on an altitude of 1150 meters with a magnificent view over the city 700 meters below.

universities well over 20,000 students together. We have also at least 6 International schools in Chiang Mai. We have both good hospitals and dental clinics. My dentist is the absolute best one I have had in all of my life. So here is nothing to worry about particularly if you have a good insurance. When I arrived here they started to build the so called Super Highway with separate lanes in each direction. Today this highway (700 km) has been extended all the way to Bangkok with reverse lanes. We have also 2 new ring roads located outside the Super Highway, why you never need to pass through the city if you plan to go further north. The road network has been improved all the time. Further we already have about 20 flights daily to and from Bangkok and speed train to Bangkok is on the planning stage.

Property development in Chiang Mai During the years I have been living in Chiang Mai I estimate the growth of 1

You can estimate that it will take maximum 15 – 20 minutes to drive to downtown/airport area, 6 – 10 km from those Moo Bans. On my side of the town 2 relatively large Moo Bans of 200 – 300 houses were ready this year. The constructor is Land and House one of the bigger construction companies in Thailand. The prices for the houses built by them are usually a bit higher. Condos have not been very popular in Chiang Mai, but during the last 5 years quite a few have been built along the irrigation canal (Canal road). Most of them are located relatively close to the University area and heading to Doi Suthep with its famous temple. Finally the rental price for a 3 bedroom house is of course dependant on location and standard, but in general we estimate the monthly rental will be 15 – 20,000 bath excluding electricity and water. The rent for a condo will always be higher for a similar unit. If you are interested to know more about houses and condos in Chiang Mai you are more than welcome to contact my wife Suwanit (081 – 783 8667) or me (081 – 883 1205). If you have never been to Chiang Mai it is high time you visit the best and the most beautiful city and province in Thailand – The Rose of the North!

Chiang Mai has also a lot of very good international restaurants. At a special supermarket chain named Rim Ping you can find all kind of high standard international food. At present they have 4 units located in strategic positions in the city. Furthermore there are a lot of hotels in a scale from delux down to simple, inexpensive inns.

Education, healthcare, infrastructure and communications Chiang Mai is the second biggest University City in Thailand. Chiang Mai University has more than 40,000 students and the other 4 – 5

Thai-Swedish Chamber of Commerce l 25

Handicap Friendly Holiday Resort in Hua Hin By Steen Poulin Nielsen

axxi Holiday is a new resort build specifically for guests with a handicap. The new resort is located in Hua Hin, approximately 200 kilometers southwest of Bangkok. ”Being a Swede living 20 years in Thailand, I notice that this beautiful country is rarely suited to accommodate guests with special needs like wheelchair users,” says Eric Johansson, founder of Maxxi Holiday. Maxxi Holiday´s now two villas are situated in an exclusive resort area with a total of 40 single houses. The villas are of high quality build equipped with ABB- electric cupboard, air-slits in ceilings and a residual current circuit breaker. The villas are completely customized to accommodate guests with special needs. Enlarged bathrooms and modified kitchens are some of many features. The resort features a common saltwater-pool and each villa has got it´s own pool or Jacuzzi with a lift for wheelchair users.

”Now our first two villas are ready for our guests. Initially we were planning only five villas for Maxxi Holiday, but the huge interest we have seen from Scandinavian handicap organisations and tour operators means, that we now are working on plans for 16 villas,” Eric says.

Maxxi Holiday is a full service operation taking care of the guest from the arrival at the airport, the transport in own vehicles to Hua Hin, and the stay at the resort where both maid service and health care educated assistants are available. Maxxi Holiday are ready to show the guests that Hua Hin is the perfect spot to relax and enjoy the calm atmosphere and get an experience of the real Thailand. Hua Hin has a lot to offer, with fantastic viewpoints, nice beaches, shopping and restaurants. Hua Hin is, since almost a century ago, one of the Thai’s own holiday resorts, thanks to the Thai royal family having its summer residence in Hua Hin, since 1926. The large share of Thai tourists helps in keeping the more genuine and calm feeling of Thailand and it is not by far that exploited, like it have been in Phuket, or at the Canary Islands.

26 l Thai Property Guide

The firm provides legal services in general commercial practice and renders advice in the wide area of legal environment, i.e. corporate related matter, commercial contracts, merger and acquisition, financial transaction, banking, real estate, foreign investment, project finance, intellectual property, customs, taxation, entertainment, environment, labour law, dispute resolution, litigation, company secretarial service, work permit, immigration, translation of legal related document. The Firm represents multinational companies as well as their executives, and individuals doing business in Thailand from Scandinavia, the Netherlands, England, Germany, etc. and Asia. MANAGING PARTNER

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Tel: +(66) 2259 2627 thru 9 Fax: +(66) 2259 2630 Email: wissen@csloxinfo.com Website: www.wissenandco.com

Thai-Swedish Chamber of Commerce l 27

Buying Property in Thailand Most of you who are reading this article may have some interests in having property in Thailand, either as a residence after retirement or vacation home, or for investment purpose. By: Wichien Harnpraween

his Article will provide you with basic knowledge on the entitlement of foreigner, i.e. any person or company of non-Thai national to acquire property (land and/or house and/or condominium unit) in Thailand.

Can foreigner be an owner of land, house, condominium unit in Thailand? For land, under the Land Code of Thailand, an Alien cannot own land 28 l Thai Property Guide

in Thailand. The term “Alien” means an individual being non-Thai national, or a juristic person, e.g. company, partnership, foundation or association having no Thai national, i.e. its shares of more than 49% belongs to the individual or juristic person of nonThai national, or non-Thai national individual or company are more than Thai national in the juristic person. Nevertheless, under the Land Code, an Alien can own land if he/she/it is permitted by special law. Currently, when an alien company (more than 49% shares held by nonThai national or more non-Thai national than Thai national in the company) has obtained the investment promotion from the Office of the Board of Investment to operate the business in Thailand, such company will be permitted to own land but only to use the land for its promoted business. Nevertheless, BOI Office also permits the BOI promoted company to buy land to build its office and residential purpose of the executive or skilled personnel of the company but for the total land area of not exceeding

5 Rai of land (1 Rai = 1,600 Square Meters) for office, and 10 Rai of land for executive or skilled personnel residence. In addition, alien or foreign national company can also own land by virtue of other laws, i.e. the Act on Industrial Estate Authority of Thailand, where such company operates its business within the estate or location of the Industrial Estate as approved and supervised by the Industrial Estate Authority of Thailand, and also by virtue of the Petroleum Act, where such company receiving concession for oil and/or gas operation can be owner of the land throughout the time of the concession period. For company which has its more than 49% shares held by foreign national, or has its shareholders more than Thai national, is deemed as “Alien” under the Land Code as stated above, and such cannot own land unless they are granted with permission under the special laws as also stated above. As such, foreigner can own shares equity in a company up to 49% of the total shares, which such company

will not regarded as Alien and as such it can own land. There has been no law prohibiting the minority shareholders to have management control of the company. Therefore, the company under control of the minority shareholder is still considered as Thai national company provided always that the 51% shares are held by Thai national and there are more numbers of Thai shareholders than foreign national shareholders. Such control power can be achieved either by contractual arrangement under shareholders agreement, and the Articles of Associations (or by-laws) of the company being registered with the authority. One of the common way is to create class of shares by fixing certain voting rights to the particular class of shares, or to create the requirement to change director in the Board of Director with more votes. It is important to note that using Thai national as a nominee to hold shares for foreigner in the company that will own land (except for the company that is entitled to own land under special law as mentioned above) is illegal. In

e.g. swimming pool, car park, garden, sauna room, fitness room, etc., which such are so-called “common property”.

principle, the Thais must be investing with their own fund in the company that owns land. As for house or construction on land, the Land Code only prohibits foreigner or Alien to own land but not house or construction. Thus, any foreign national, either individual or company, can be owner of house or construction built on land that belongs to anyone. In reality, foreigner may build his/her own house on the land that he/she leases it from others. As for condominium unit, Thailand has enacted the law called “Condominium Act” since 1979. Under that Act foreigner is allowed to own condominium unit up to maximum 49% of the total sale units of any condominium building. Please bear in mind that condominium building means the building that has received the license or permit to be the condominium building. Owner of condominium unit in condominium building will be called “co-owner” as they are co-owner of the other space within the building and the compound,

Under such Condominium Act, foreigner who wants to buy condominium unit must present an evidence showing that he/she has brought in the fund to purchase the condominium unit from outside Thailand. Exceptions apply to foreigner who is a permanent resident. Note that under the law, ownership transfer of land and/house and/ condominium unit will be legally effective and complete when it is registered with the relevant land office, upon payment of transfer fee, taxes and stamp duty.

Can foreigner be a long term lessee or so-called leasehold for property in Thailand? As discussed above, in general, foreigner either individual or company is not allowed to be owner of land in Thailand. However, foreigner is

Thai-Swedish Chamber of Commerce l 29

It is also essential to verify the correctness of the registration particulars of the lease agreement, which the original land title deed of the leased land will record the name of the lessee at the back side of the title deed, and the land office will issue an official one page lease agreement stating important particulars of the lease agreement, i.e. name of lessee, address, lease term, rental amount, and other conditions (if any). A lease of land is an alternative for non-Thai national to occupy and utilize the land for long term, and such acquiring of lease of land for long term mostly has intention either to re-sell (or officially “assignment of lease”) or to have it inherited to their heirs.

allowed to occupy land by way of long term lease. Currently, under Thai law, foreigner can lease the land for residential purpose maximum for the term of 30 years. The Thai Civil and Commercial Code provides that “lease term of immovable property (land/house) cannot be longer than 30 years, if it is longer than 30 years, the period shall be reduced to be 30 years. However, when such period of lease ends, it can be renewed but must not be longer than 30 years from the renewal date”. Moreover, the same Civil and Commercial Code also provides that “the lease term can be made for the life time of either the lessee or lessor”. Therefore, in principle, if the lease is made for the term of life time of either lessor or lessee and he/she lives longer than 30 years, then the lease term could be longer than 30 years. In reality, it is not common for any lessee and lessor to agree for the lease term of life time of either lessee or lessor, and as such they prefer to make the lease term of 30 years initially. Since the law allows the extension of the lease term for another 30 years, it is very common to state in the lease agreement for many real estate development projects that the owner (lessor) covenants to the customer (lessee) that the customer (lessee) has option to extend the lease term for another 30 years. This provision in the lease agreement is enforceable as such has been upheld by the Supreme Court of Thailand in many cases, e.g. case No. 876/2537, and No. 1602/2548. 30 l Thai Property Guide

Some real estate developments have made their lease agreement with customer (lessee) with an additional option of the lessee that the lessee can extend the lease term of another 30 years after the first 60 years period. This provision has not yet been upheld by the Supreme Court as to its enforceability but it is simply an interpretation among lawyers that the covenant of the landlord to allow such extension of lease term should have the same legal effect and enforcement as the option to renew the initial lease term of the first 30 years. Important to note that under Thai law, i.e. the Civil and Commercial Code, any lease agreement of immovable property (land, house, building or condo) for the lease period of longer than 3 (three) years must be registered with the land office in order to cause such agreement valid and enforceable according to its terms. Nevertheless, if any lease agreement with the lease term of longer than 3 years but fails to register with the land office, such lease agreement will still be valid for the period of 3 years. Therefore, even the lease agreement for longer period than 3 (three) years without registration, the lessee can enjoy utilizing the leased property for 3 years only. The government charges for the registration fee of lease agreement at 1% of the total rental amount in the lease agreement for the whole lease period, plus 0.1% of stamp duty, to be charged at one time at the time of registration.

Under Thai law, lease agreement of any kind of property will cease to be effective upon the death of the lessee. This has been upheld by many Supreme Court judgments in Thailand. Therefore, a lease of a piece of land for 30 years could be shorter if the lessee passes away prior to the completion of such 30 years. The Supreme Court Judgment used to render its judgment in the black case index No. 2760/2534 in the year 1991 holding that the lease right is a personal right, and the lease right is exclusive right being given by the lessor to specific lessee who the lessor selected, and that, therefore, lease agreement is terminated on the reason of the death of the lessee. By virtue of such Supreme Court Judgment, all lease agreements regardless if it is registered with the Land Office, is terminated when the lessee who is a natural person is dead. However, there is another Supreme Court Judgment in the black case index No. 1729/2540 in the year 1997 holding that although lease right is a personal right, the lessor and the lessee can indicate in the agreement that the lease right can be inherited. Therefore, the lessee can indicate as its property to be inherited to the heirs of the lessee. Important to note that the lease right is inherited only when the lessor and the lessee have agreed in the lease agreement that the lease right of the lessee is inherited. Thus, without such a clear statement, the lease right cannot be inherited and is over when the lessee passes away.

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Thai-Swedish Chamber of Commerce l 31

The History of ฉ Colliers International Colliers International is a truly global commercial real estate organization, formed more than 30 years ago in Australia, Colliers expanded quickly by attracting the best and brightest local real estate companies around the world.

ith expertise in the major markets, Colliers is also committed to providing our clients with access to emerging markets and was one of the first global companies to enter into Asia, Eastern Europe and Latin America. Today our organization comprises of 12,500 real estate

professionals span the world in over 512 offices in 61 countries. 2010 signifies a significant milestone in the history of Colliers International. We have combined our operations with FirstService Real Estate Advisors, bringing our clients the stability of a strong capital partner, the accountability and access to interconnected resources that comes from a common ownership and the flexibility of our local offices to provide customized real estate solutions that meet our clients' needs. Colliers International offers a complete range of services to real estate users, owners and investors on a local, regional, national and international basis. In 2010, Colliers International was ranked the Thirdlargest commercial real estate services company in the world and now globally the 2nd most recognised commercial real estate brand.

Reinforcing its position as a bestin-class commercial real estate organisation, Colliers International has been selected as one of the world's top 100 outsourcing providers for the sixth consecutive year as part of the 2011 Global Outsourcing 100®. The foundation of our service is the strength and depth of our local specialists. Our clients depend on our ability to draw on years of direct experience in the local market. Our professionals know their communities and the real estate market, inside and out, and provide you with knowledgeable, creative solutions to all your real estate needs. Colliers International Thailand is registered under the name of C.I.T. Property Consultants Co., Ltd. and wholly owns C.I.T. Appraisal Co., Ltd. (former Pasupat Appraisal Co., Ltd.) as a subsidiary. The company’s vision is to serve a complete one-stop property service with the highest level of ethics, honesty, integrity and world-class quality. With over 20 years of in-depth and comprehensive knowledge of the Thailand property market, our teams of professionals enthuse to deliver solutions that meet the challenges of the new property era. We provide a complete range of proactive integrated property services whether it is a variation as modest as valuation, or as complete as project consultation, development, construction, marketing and property management. Through our culture of service excellence and a shared sense of initiative, we have integrated the resources of real estate specialists worldwide to accelerate the success of our clients. In 2010, Colliers International Thailand celebrates our success at The Thailand Property Awards 2010 for “Best Agent (Eastern Seaboard) and Best Agent Highly Commended an annual event and is highly coveted by real estate agents, property developers, interior designers and architects in Thailand’s residential real estate industry.

32 l Thai Property Guide

Land Types and Titles By: Vickery & Worachai Ltd.

Land Types: Land in Thailand may be divided into two main categories: 1. Land of the State, consisting of: (a) Islands formed in the lake or water-way in territorial waters, and beds of water-ways left dry. (b) Domain public of the State, for instances: waste land and land surrendered, abandoned or otherwise reverted to the State according to the land law, property for the common use of the people, such as water ways, highways, lakes. (c) Property for the special use of the State, such as military building. 2. Land other than those stated above. Person, either natural or juristic person, may have the right to own or possess the land that is not the land of the State, subject to the conditions or restrictions under the applicable laws and regulations. For instance, the foreigner cannot own land in Thailand unless specific permission from the concerned authorities is obtained, such as obtaining investment promotion from the Office of the Board of Investment (BOI) or foreign natural person may own land of not exceeding one Rai (1,600 square meters) for residential purpose according to specific conditions.

Land Titles: In Thailand, there are various types of land titles that are used as common evidence of ownership, possession right and/or any other interests in land in different levels of right and/or security. 1. Land Title Deed (Nor Sor 4 or Chanote): This type of title is a certificate for ownership of land so registered at the local Land Office in the province where the property is located. This title contains a legal description of the land boundary markers that are carefully ascertained and referenced by satellite images. It grants the holder the full right of ownership over the land, including the rights to use and dispose of it as well as to acquire its fruit, to follow 34 l Thai Property Guide

and recover it from any person not entitled to detain it, and has the right to prevent any unlawful interference with it. It is therefore the strongest and most secure type of land title which is highly recommended. For the title evidencing the ownership of a unit in a condominium, it is called a â&#x20AC;&#x2DC;Certificate of Unit Ownershipâ&#x20AC;&#x2122;. This Certificate should be categorized in the same level of security as the Chanote title that is applied for the land. The Certificate contains the name of the owner, the position and size of the land, the location, area, and a diagram indicating the unitâ&#x20AC;&#x2122;s width, length, and height. It also includes the proportion of ownership in the common property. 2. Nor Sor 3 Gor (Confirmed Certificate of Use): This type of land title designates ownership of land with fairly certain boundaries and certifies that the person named on this certificate has the confirmed right to use the land. However, it is not yet a full land title deed as is the Chanote but it could be upgraded to be the Chanote thereafter. The land owner under this certificate has the right to request the Land Department through the local Land Office to have the property surveyed and in such case, a final official measuring is required by the Land Department along with the placing of official markers prior to issuing the land title deed (Nor Sor 4 or Chanote) as replacement. This type of land title could then be implied that all requirements for issuance of land title deed have been made, but only the process of issuing the land title deed is still pending. The land with Nor Sor 3 Gor may be sold, transferred, or mortgaged. 3. Certificate of Use (Nor Sor 3): This land title is similar to Nor Sor 3 Gor with the exception that the Land Department has not yet completed measurement or recognition of the boundaries thereof. Although ownership of the land under this title is quite ascertained but since the measurement by the Land Department is not yet made, therefore, the land boundary markers are normally placed by the land owners rather than the authorities. So the risk is

that whether the land boundary and size are accurate or not. This type of title is then deemed having less legal strength than Chanote or Nor Sor 3 Gor. For the transfer of the land under this Nor Sor 3, prior to the transfer, a notice of intent shall be posted and the thirty days public notice is necessary before transfer of ownership or any change of status over such land can be registered with the Land Department. 4. Notification of Land Possession (Sor Kor 1): This document recognizes that the land possessor has notified the possession of such land to the concerned authority but the said document does not imply that there are any right associated with the possession and it is not evidence of the land title or having the ownership thereof. Legally, it is not transferable but in practice, a person in possession of such land may transfer physical possession by delivering the land so possessed and the new possessor may apply for a new Sor Kor 1 instead. 5. Sor Por Gor 4-01: This type of property right is a title granted by the concerned authorities to Thai poor farmers for agricultural purpose in specific land reform area, usually found in rural areas. Residence is allowed on a portion of land. It is difficult for a foreigner to obtain an interest in this type of title. 6. Por Bor Tor: The land with Por Bor Tor is normally inherited land right proven / recognized by tax payments at the Local Administration office but it has never been substantiated by the Land Department. The possessor only has a right to use the land, but can not register the right like usufruct or a lease. This type of title is one of the weakest types of land right that is the least recommended.

Property Financing for Foreigners

Thailand has been among the top ranked best places to live. Having a second home either for holiday, retirement or investment purposes in this country is not too much for a foreigner to dream of. By Mr. Sakchai Suthipipat, VP Investment Department, MBK. PLC

here are few places where a foreign community is already well established i.e. Bangkok, Pattaya, Phuket and Samui. Compared to other surrounding countries in the region, property prices remain a favorable factor supporting direct foreign investment in the Thailand property market, despite some recent political unrest. It is crucial to study foreign ownership limitations first, before making any investment in property. Under Thai law, foreigners are prohibited from owning freehold land. Only foreigners bringing investments of no less than Bt40 million (equivalent to US$1.3 million) into the country are eligible to hold title to freehold land only for residential purposes of no more than 1 rai (equivalent to 0.16 hectare) under the Board of Investment (BOI) regulations. Foreign corporations are also eligible to purchase land for manufacturing purposes, but only when it is approved by BOI.

Buying a condominium is much easier since a foreigner is allowed to own a condominium title as long as the foreign ownership ratio of combined units in the building does not exceed 49%. In doing so, foreigners are required to show evidence of the funds used for the purchase of a condominium and brought from overseas, except those who have a residence permit, which requires them to stay in the country for a number of years. Leasehold property is an alternative way for those who have limitations with freehold arrangements. Unlike in neighboring countries, Thai property law allows a 30-year maximum lease period. Every lease of more than 3 years are must be registered at the Land Department. The renewal of a lease for up to 30 years is a likely provision in contracts. Leasehold property is the most straightforward approach regardless of property type. In buying off-plan projects, especially for condominiums which normally take few years of development, the investor should be aware of risks since the Escrow Account scheme is on a voluntary basis. Investors or homebuyers should evaluate the developerâ&#x20AC;&#x2122;s track record and experience in the business, notably the price attractiveness and the prospect of capital gain being offered. During the last few years, Thailandâ&#x20AC;&#x2122;s residential property market has become more favorable to homebuyers due to over supply. However,

commercial banks who previously financed homebuyer purchases have become more cautious in their business, especially for foreign buyers. Previously, loans to foreign homebuyers were available in both onshore and offshore markets. While offshore loans were offered either in US Dollars or Singapore Dollars with relatively low interest rates, onshore loans were offered only in Thai Baht with few restrictions. Due to market conditions, loans to foreign homebuyers in both markets have become significantly less available today, although demand remains relatively high. Today, loans to foreign homebuyers are not only available at commercial banks, which still continue their stringent policies, but are also being actively offered by a private company, namely MBK Guarantee, a subsidiary of MBK PLC, a well-capitalized listed company which owns the wellestablished shopping center, namely MBK Center. The Thai Baht loan for condominium purchases is now offered at MLR (of Thanachart Bank - TBANK) + 2% and for other types of property is offered at MLR (of TBANK + 5.6%.) Other conditions are simple. The properties being offered as collateral must be freehold, with prime location in key tourism areas such as Bangkok, Pattaya, Phuket or Samui. Loans for off-plan projects are also made available with other conditions applied. For more information contact +662 620 7120 or mbk-g@mbk-center.co.th

Thai-Swedish Chamber of Commerce l 35

D OL

Sanuk was the ďŹ rst Swedish school to establish in Thailand in 2004 on the island of Koh Lanta. We offer the service of school, preschool and have our own Child Club for the youngest. In order to keep and offer a high quality service for you and your family we always work with small classes and only with educated Swedish teachers with several years of experience.

Please feel free to learn more about us by visiting:

www.svenskaskolanthailand.se

Buying a Pre-Sale Condominium Navigating the Thai property market can be an overwhelming experience even at the best of times, but chances are, you know of someone that has had a positive experience investing in Thai real estate. The question is, how did they do it? What was their secret? By Piaras Moriaty, Raimon Land Vice President â&#x20AC;&#x201C; Client Management

s it turns out, the common ingredient found in most success stories in Thailand has been to invest during the pre-sales period. This is a common choice for both novice and seasoned investors, and with a little research, it can be a profitable one. In fact, pre-sale purchases in the Thai market remain a very popular investment option and in recent years, Thailandâ&#x20AC;&#x2122;s major developers have enjoyed a significant increase in presale purchases worth about 46 billion baht in 2009, to nearly 80 billion baht in 2010. There are many reasons why people choose to invest at the pre-sales stage, some more obvious than others. Several of the most popular reasons to invest during the pre-sales period include:

Cost, Choice and Payments Keeping in mind developers usually increase unit prices during the construction phase and once construction is complete, buying at the pre-sale stage will offer the investor the lowest possible price and will usually include juicy promotions to attract interest. At the same time, a pre-sales purchase gives the buyer far greater options than those who buy during the construction, or post construction period. With any condo development, the most desirable units to live in with the best views, best lay out etc. will sell first. Not surprisingly, down the road when it is time to unload the property, the best units will find buyers quickly and command higher prices. Finally, buying a condominium during the pre-sales period is usually quite affordable and will require very little cash up front. Typically, depending on the developer and the specific project, buyers can expect payments due at the Booking, Contract Signing as well as a predetermined balance due up on Transfer of the property to the

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client. During construction, monthly payments are made, much like a standard mortgage. Clearly, there are distinct advantages in purchasing a condominium at the pre-sales stage, but why are so many people choosing Thailand to live or invest in real estate? In reality, Thailand enjoys several advantages over their South East Asian neighbors including local law, price, economy and infrastructure.

Law In Thailand, the laws pertaining to owning a condominium are quite simple and liberal when compared to other Asian cities. In other words, because a condominium is the only type of property that can be legally purchased by a foreigner in Thailand, the laws are designed to be straightforward and clear. The only restrictions on purchasing a condo is that a foreigner can normally acquire up to, but not exceeding 49% of the total development property. Looking at other South East Asian countries like Cambodia that is still developing their property laws or Indonesia that only allows purchases through an Indonesian nominee, and the mature Thai property market appears very inviting.

Price Bangkok has the second lowest acquisition prices for prime condominiums amongst major capital cities in Asia. They are eight times less than Hong Kong, six times less than Singapore and half the price of Beijing. This makes for a much more reasonable point of entry for the first time investor or retiree with a fixed income.

Economy Thailand is the second largest economy in South East Asia after Singapore and it has enjoyed faster recovery in capital markets. Prices

have not inflated as much as in other Asian countries and condominium demand relies on strong fundamentals.

Infrastructure Thailand continues to invest heavily in infrastructure with the opening of 20 new rapid transit stations in Bangkok in 2010 with another 6 elevated Skytrain stations to officially open in August of this year. Other significant projects include the worldclass Suvarnnabhumi Airport and the new Airport link connecting it to the downtown core. All of this leads to a hungry appetite for homebuyers to invest in city condominiums

Words of Caution There is a lot of upside to purchasing a condo at the pre-sale stage, but the buyer must understand that new building projects are not risk free. In

About Raimon Land

exchange for sizable discounts at the pre-sale stage, the main risk is that you are buying something sight unseen and in some cases, several years before the project is complete. With that in mind, understand that not all developers are created equal. To protect your investment, be sure to research the developer and check their track record. And it is strongly recommended to deal with a Stock Exchange of Thailand listed company that is accountable to shareholders and the public.

Listed on the Stock Exchange of Thailand, Raimon Land is Thailandâ&#x20AC;&#x2122;s premium freehold real estate developer focusing on top-end and high-end projects in Bangkok, Pattaya and Phuket.

Thailand offers an endless selection of completed condominiums aimed at expatriates and investors looking to enter the market. But if you are serious about your investment, a pre-sale condominium is well worth investigating. With due diligence, your chances of being a satisfied buyer will increase exponentially.

The company currently has a portfolio of three on-going building projects including Bangkokâ&#x20AC;&#x2122;s 185 Rajadamri and The River as well as Pattayaâ&#x20AC;&#x2122;s newly launched project called Zire Wongamat with a number of planned future projects on the horizon. For more information please feel free to contact at info@raimonland.com

Thai-Swedish Chamber of Commerce l 39

Concrete and Coconuts An alternative guide to a successful property investment in Thailand When I was first asked by the publishers of the “Thai Property Guide”, the Thai-Swedish Chamber of Commerce, to write a manual for the typical Nordic buyer, I was hesitant. If it were to be helpful I actually had to offer my sincere opinions, which some will hate. By Arne Hvidsten – Hvidsten Group / Hvidsten Co., Ltd. (Thailand) and Hvidsten Eiendom AS (Norway) For a complete Norwegian version of this article, please visit www.hvidsten.no

owever as those who know me are aware, I can’t resist an opportunity to draw heavy criticism. Which is why this straight shooting, honest guide sees the light of day. In any case there would be no point producing a nonfactual guide as I’m sure you’ll have read many of those already. A majority of the guides I have read, apart from being misinforming and meaningless, end with long and detailed explanations about ownership. And I think: What absolute rubbish. Why isn’t anyone willing to tell people about all the other traps they could fall into? Perhaps other guide writers make good money from people who make wrong decisions? Or do they make a living by selling exactly what you should avoid buying? Most “expert” advice pretty much dwells on the topic of ownership. Sure, it’s important, but NOT if the value of what you just bought hits zero within few years. And this is quite possible; you only have to read the rest of this short guide. And by the way – don’t forget it was here you read it first.

Can I Own Property in Thailand and What Ownership Form Should I Choose

Arne Hvidsten was born 4 July 1967 in Oslo and founded the Norwegian operation, Hvidsten Eiendom AS, in July 1991. For the past 20 years the company has actively acquired and developed properties in Oslo and Stockholm with projects spanning across: retail; restaurant; hotel; office; and residential developments. Hvidsten has also been an active participant in the rebirth and restoration of some of the older parts of Oslo while experiencing tremendous success launching branded, innovative concepts for a young audience in the Norwegian capital. Between 2003 and 2008 the firm completed projects for a combined value of NOK 2 billion.

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The short answer: Yes you may own an apartment in a condominium registered building. Up to 49% of the building’s apartments can be owned by foreigners (area based). The remaining 51% must be under Thai ownership. If you buy under a foreign ownership quota you should receive a title deed (freehold stratatitle deed) in your own name, provided the project is on freehold land and transferable from the developer to the condominium juristic person. Make sure the developer doesn’t oversell its “foreign quota” (yes, it happens). So make sure the ownership form is specified in the contract and do not under any circumstance pay the entire purchase amount until the unit is transferred at the land office. But, hey, the majority of the guide you’re now reading deals primarily with ownership.

I’ll therefore skip this and go straight to the point… My advice (in order of priority): (1) Buy an apartment (not a house, townhouse or bungalow) with a title deed in your own name (freehold strata-title deed). (2) Buy an apartment (not a house, etc.) under the Thai quota, with the same type of title deed as under (1), which you transfer to a Thai company you establish and control. (3) Forget it. Spend your money on something else. Why: (1) Obvious. The only true ownership form allowed foreigners by Thai authorities. (2) If you spend a million (NOK) or more, I only recommend option (1). But if the investment is less this is a straightforward solution. Yes, I realise this advice may be considered controversial. But you see, the price should in fact be 1030% lower when you buy under Thai quota – with 10% for quality homes in great locations and up to 30% for low quality housing in remote locations. I won’t go into detail about how to establish and control a Thai company, except that set-up costs and annual fees are affordable and lower than discounts you receive when buying under the Thai quota.

Today the political majority favours an increase of the foreign quota in some tourist areas (perhaps up to as much as 70-80%). If it happens you would have made a good deal, assuming you’re alert and among the first in the “transfer queue” at the land office. PS! No one is likely to care if you buy an apartment under your new Thai company. However do not assume the same applies to the purchase of land (with or without a house). Foreigners acquiring land this way – and thereby bypassing the law – is a sensitive issue for Thais and authorities have repeatedly warned

about increased investigative measures. In which case, you risk losing your property. Therefore: Let Thais keep their land plots and they will not care about your condo unit. (3) Yes, I meant it. FORGET IT! For more please read “Why Shouldn’t I Buy Leasehold Land?” and “Why Shouldn’t I Buy a Leasehold Apartment?” below.

How to Get Informed and Who to Ask for Advice? Many newcomers get their information from the local Nordic hero. He’s usually a bar owner surrounded by guests who agree with him. Before he went into the bar business in Thailand he was a roofer who made his living by fooling retirees into paying a lot for very little. Simply put: a scam artist. His regulars know this, but happily shut up in favour of free drinks. The bar owner probably prefers you to rent something nearby and spend the rest of your money in his establishment. Alternatively, he may direct you to the local developer who gives him the highest commission. Far too many listen to the local Nordic developer: He’s a smiling, talkative guy with a lot of friends. He has extensive experience from running a

toy store in his home country. He may have been involved in some property venture back home as well, since you’re asking. At least he’ probably bought and flipped some units. “Some bedrooms don’t have windows, you say? Required by law in Norway? Really? Never mind, I’ll fix it for you. I have connections, you see. When will you be moving in?” Even more receive their advice from the Nordic lawyer; well-established and represented both at home and in Thailand. He appears to be a righteous and neutral individual. In reality he’s one of the largest shareholders in the project he offers you at prices that are too high. This lawyer has a hand in almost everything related to the Nordic community. It’s not unusual for him to hire local debt collectors (“torpedoes”) for outstanding claims against his business partners.

Do I exaggerate? Not really, I know them all and many more. My advice: Use this guide. Do not trust anyone. Visit projects you feel are right for you – on your own. Carefully review catalogues, sales information and websites. Is the information and presentation of the project poor? Well, then you may expect the end result (housing) to be as well. Stick with

larger, financially stronger developers with experience. Whether at home or in Thailand, brokers and agents will always attempt to appear neutral but remember they always recommend projects where they receive commission if you buy.

Why Should I Ignore Web Forums? Several forums feature bloggers who give advice and guidance on how to buy property in Thailand. The problem is that most forums contain 90% of gossip, rumours and fiction, and what little advice you get is often completely wrong. Remember that all bloggers are anonymous. Therefore they feel they can write about whatever. The forum bloggers are comparable to cockroaches: There are a lot of them but you never see them. If you listen you can hear them. Rarely do they dare to pop their heads out, in fear of being squashed (they deserve it). My advice: If you are an active blogger or read blogs often, you have too much free time. If you take anything of what’s written there seriously, you are a complete moron.

Thai-Swedish Chamber of Commerce l 41

Where in Thailand Should I Invest? Too many Nordic “business men” moved to Thailand prior to the financial crisis. Half a million in hard currency, determination and a burning desire to profit by building holiday homes for fellow countrymen eager to invest. These were common traits. The businessman-come-developer quickly established a “good friendship” with a local police captain after a few nights in a bar. Of course his new friend knew someone who could offer a “sweet deal” on vacant land. The developer got this “sweet deal” due to the site’s location: About 11 km from the beach, 3 km from the nearest store and situated in a swamp where not even locals would contemplate living. He paid the land value many times over, but still considered it little money for a land plot. In this tiny, far-flung corner of Thailand apartments, townhouses and villas were built for the local Nordic developer by a local Thai contractor at a cost of 2,000 Norwegian kroner (NOK) per square metre. The overall cost to the developer, including land, roads, infrastructure and “taxes” was between 3,000 and 4,000 (NOK) per square metre; the standard delivered being low-cost Thai housing. By giving the project a Scandinavian sounding name (i.e. Scandinavian Tropical Garden, Nordic Bungalows, Viking Village etc.) he could sell homes to less discerning countrymen at double his cost. As long as he was able to sell houses, he had good reason to build more. As

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word travelled, Thai neighbours were lining up to offload their properties in this wilderness at overpriced rates. When the first buyers in the project realised they had essentially bought into a low cost housing project in the middle of nowhere, trouble started. Not only were owners unable to resell their new second-hand homes, but the developer captured all the new buyers. After all, his marketing budget was larger and most people prefer a new house to a second-hand if the price is about the same. This is in technical terms referred to as “cannibalism”. Home owners looking to sell didn’t realise quickly enough they would have to lower their prices to compete with the developer. And how could you blame them? In the Nordic countries housing prices had continuously been rising. Most people know that when you drive a new car out of the store its value falls. Few realised their new home in Thailand was in reality comparable to a new car. The advantage with second hand cars is you can at least usually get rid of them. Unfortunately this was not the case with these houses. When over half of the buyers in this abandoned swamp project wanted out, the sales eventually dried up for the developer as well. New prospective buyers were of course bound to ask why most homes in the village were for sale. To this day many an unfortunate buyer is looking for “an even bigger fool”. My advice: Stay away from remote locations where you’ll need a car to get around. This involves costs and

uncertainty. Most Northerners find it unpleasant to drive on “the wrong side of the road”, with traffic far more aggressive than we are used to at home. To zigzag your way on a small motorbike is not recommended. Should you however feel tempted, spend a few hours in the emergency room of the local hospital and watch the never-ending stream of traffic casualties. Then decide. So: Go by taxi instead and choose a location where taxis pass regularly. Proximity to beaches, restaurants, shops and other entertainment is important. The more central and the closer to the beach you are, the more expensive it will be. But these are also the properties that achieve true capital gains. They actually increase substantially. Everyone knows the mantra, “location, location, location”. But watch out: In Thailand, the quality of your home is also extremely important (see below).

Why is it Important to Buy a HighQuality Home in Thailand? Home owners in the Nordic countries have strong protection as consumers and are used to high standards. Homes must be built following strict codes with minimum standard requirements. In Norway “Norwegian Standard” (NS) is the norm: Authorities will ensure the building complies with NS before the developer receives an occupancy permit and a buyer can move in. This is simplified, the point being: It’s very different to Thailand (and many other countries). It may often be difficult for a Northerner to

realise the world is different here, as every new property in his country is generally of the same quality, with the exception of details easily spotted, such as kitchen and bathroom furniture, the quality of hardwood floors or ceramic tiles. This in turn affects the price in addition to any wear and tear. For us in Northern Europe the most important factor is probably the location of the property (and consequently its land value). The same applies to Thailand. A land plot in the greater Pattaya area may cost anywhere from under a hundred to over 20,000 (NOK) per square metre. If we ignore the cost of land – as I believe we all understand its underlying principles – we must look at the construction cost. In Northern Europe labour is the largest cost component of construction while materials are only a fraction of the property’s final cost. In Thailand, the material costs normally make up the majority of cost as labour is cheap. Developers may also use materials that would never have been approved of in the Nordic countries. To cut this short, construction costs in Thailand may be as low as 2,000 or as high as 15,000 (NOK) per square metre of Net Saleable Area (NSA). This is a difference of 750%. We would never experience anything near the same jumps in price and quality at home. However this is Thailand. Twice as expensive usually means more than twice as high quality. Below I will give you my advice on how to determine the quality of your new home and why it’s important.

How Do You Determine the Quality of Construction and Why? I could probably write a book on this subject, but I’ll have to stick to what’s most important. Most property buyers look only at surface materials and workmanship. They completely forget to focus on some of the most important elements namely sound, energy and safety. These features are sacrificed by many developers who think only about their own profits. Avoid all homes made of wood and bricks. Choose concrete although it’s somewhat more expensive. But savings over time will make your money back and then some. Concrete is made of sand and gravel glued together and therefore an equally natural building material as wood. We are going to see a strong growth in the use of concrete as a building material in Northern Europe in years to come, despite its higher cost compared to wood. Concrete is durable, resistant and flexible. A building made of concrete is virtually maintenance free. Moreover concrete has thermal properties and is able to contain hot and cold air. This in turn means lower energy consumption. Other benefits: Concrete reduces noise; it’s fire resistant; it will not rot; and it can withstand moisture without producing fungus. Purchase a wellinsulated unit and kill three birds with one stone: Less noise, improved safety (fire) and lower energy consumption.

The checklist is as follows: (1) External walls should be made of concrete, which greatly reduces noise

penetration compared to brick walls. A double concrete wall (each 10 cm) with a continuous air gap is consistent with Norwegian requirements for sound insulation (NS = 55 decibels) and you won’t have to listen to your neighbour’s conversation next door. There’s also a difference between acoustics or airborne noise and impact noise. The latter can be avoided by installing a floating floor. Unfortunately some contractors do not extend the walls all the way up to the level above but instead suspends the ceiling. This makes you defenceless against smoke from your neighbour’s unit. Noise from neighbours would also be unavoidable. This is unfortunately difficult to spot without actually visiting the project site. Therefore: Select a professional developer who will ensure its contractor does not compromise on quality. (2) Entrance doors should be solid (thick / heavy) with no air gaps at its threshold. The door should be completely sealed with no gaps between the wall and the door frame. Remember to check if the skirting of the door frame is airtight (foam is often used). It’s not compulsory to mark entrance doors in Thailand with minimum requirements for fire and sound insulation (i.e. B30/40DB). You must therefore assess the quality by yourself. An impenetrable and solid door will prevent smoke inhalation in the case of fire; unnecessary loss of energy; and the feeling of having the neighbour kids screaming inside your own living room as they run around

Thai-Swedish Chamber of Commerce l 43

in the corridor pushing the elevator buttons. (3) Windows and sliding doors in Thailand differ significantly in quality. Extensive savings are available to the developer here, so pay attention. A sliding door could cost anywhere from a few hundred and up to NOK 10,000. In buildings no higher than 24 metres (7-8 floors), there are no requirements for windows. This means most low-rise condominiums and detached houses have single glass panes (often not laminated), inserted into unstable, thin aluminium frames. It’s quite easy to see and feel poor quality. Shake the door a bit when it’s half open. If it’s cheap you’ll see and hear the movements of the door frame. If it feels too wobbly, avoid it. It should be sturdy, solid and rigid, even when you shake it hard. The door should remain in its groove and slide open and shut easily, without twitches. Wooden frames are not very durable in Thailand due to high humidity and termites. Stick to solid, tinted (for sun protection) windows and sliding doors, featuring double-glass laminate (foil) between glass panes (mandatory for buildings higher than 24 meters). Laminated double glazing is very important. Frames should be made of maintenance-free aluminium (stainless) and preferably powder coated. One morning I witnessed a sleepy retiree, who had left his glasses on the bedside table. He walked right through the glass of the sliding door in his rented bungalow. He cut himself badly. I dare not think what might happen to a wild 5-year-old on his

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first two-wheel bike. Solid glass and frames reduce loss of energy, protect against noise and prevent the spread of fire. The quality conscious buyer should also consider insulated glass, which we have in the cold north. However it’s not worth the investment if the window has no substantial exposure to sun (i.e. if they face north). (4) Fire safety: You must have a smoke detector and / or heat detector, as well as a sprinkler system unless it’s a detached house (which you shouldn’t buy anyway). And a fire hose. These are necessities you need to ensure are included to protect your own safety. Also, the property should be fire proofed. Be especially aware of pipes running through walls. (5) Electrical: Automatic fuses should be found in a separate cabinet (inside the apartment). There should be enough electrical sockets and light points (on the walls or in the roof). Prioritise low-energy lighting, such as LED lighting. (6) Plumbing: Look out for the main valve which should be found inside its own control cabinet and check for a large hot water tank. Avoid small wallmounted water heaters fixed directly in the shower cubicle. They draw an excessive amount of power and their life cycles are short. Someone unfamiliar to these may be scalded for 30 seconds before experiencing perfect ice water the next half hour. The optimal and most affordable solution is large communal hot water tanks, with meters measuring consumption. I recommend checking

the plumbing before walls are closed (insulated) and ask to have the pipes pressure tested for leaks. In almost every case leaks occur not from bad materials but shoddy workmanship. Remember that Thailand is not like Sweden, where all pipes in the bathroom by law must be visible. Or Norway, where two layers of pipes (pipe-in-pipe) is required by law if concealed. Also, does your favourite project include water recycling solutions? This would be a big plus, not only from an environmental perspective, but also as clean water undoubtedly will become a more expensive commodity in the future. (7) Air Conditioning / Ventilation: Central air-conditioning and ventilation systems (using water or condensation for cooling effect) are better and less expensive than single-unit air-cons (cooling by air). Single-unit air-cons need fans, which are often placed on your balcony where they distribute noise and ruin the appearance of the facade. Central systems cost more to purchase and install, but costs are quickly recovered. Larger, shared systems are now delivered with sensors to measure each unit’s usage. You should clarify this, so you don’t pay for your neighbour’s excess consumption. Check that all bathrooms have electric ventilation fans. Check that the extractor fan (usually a hood above the stove or cook tops) is connected to its own shaft leading to the roof. I have actually witnessed extraction canals stopping short right inside the ceiling. Most are probably able to imagine the type of life forms settling on and

feeding off the fat accumulating on these ceilings. (8) Inner doors and inner walls: Again, check that doors are solid, handles and locks are sturdy and that inner walls are made of concrete. You should then be able to watch TV even after the youngest one has gone to bed. Summary: I have not touched on obvious issues which you should easily be able to inspect yourself (surface materials, kitchen, wardrobe fittings, bathroom etc.). However make sure you define what’s included in the price; developers should include this in their sales and purchase agreements (SPAs). This could impact greatly on the final price. Exactly what developers include will vary greatly. Typically you should ask about: air-con; kitchen; appliances / white goods; closets / cabinets; bathroom / bedroom furniture and ornaments; and lighting / lamps. When comparing prices, you would be mad not to take these items into account. Do not be fooled by “what’s not included doesn’t cost much anyway”. If so: Why isn’t it included? There are also great differences in quality and price on what’s been mentioned here. The essence of what I write is: Make sure your new home is well insulated. You run the risk of sleep deprivation and affecting your general well-being if there’s too much noise. You’ll risk your life if there’s an outbreak of fire and smoke. And you run the risk of high consumption of electricity (a scarce resource that just keeps getting more expensive with time). Therefore, when

buying property in Thailand you should be alert, aware and thorough. You should expect to spend significantly more time on details of what you are going to buy once you have decided. More time than at home, because there you’ll have better rights and protection as a consumer.

Why Should You Avoid Small Projects / Developers? Oftentimes smaller developers may not be as careful in securing all the necessary permits. They could also use illegally imported labour to bring down costs. A project built by unskilled labour is a regular occurrence in Thailand. This could have both hidden and visible consequences. Projects will often stop as a result of the above. You may risk losing your deposit if the project never sees the light of day. You run the risk of spending time in courtrooms for years, which in the worst case does not lead to anything, because the counter-party has gone bankrupt. Utilising illegal and / or unskilled labour is cheaper, but are you morally prepared to take advantage of it in a country where labour costs are already low? Are you happy to do business with developers who don’t even pay their workers a statutory minimum wage? My advice: Steer clear of “dirty projects” where developers are vague or evasive when answering these questions. Ask to see the building permit, check the ownership of the land plot being developed and make sure it is unencumbered.

Okay: So perhaps I have been too tough on the small local developer. Or the brokers and sales agents mentioned earlier. There are definitely serious players among these too, but I have not met that many of them. In any case, the intention of this article is not to take the food out of anyone’s mouth, but to make you as a buyer aware of the risks you run by trading with them. Who you eventually trust is obviously up to you.

Why Should I Invest Near a Major Tourist Destination? It can be really exciting and relaxing to spend your holiday far away from everything. Only you, the family, beach, sea, sun and palm trees. No wonder you give in to temptation and buy a bungalow here; almost on the beach, shaded by palm trees and isolated from civilisation. In total 89 bungalows were sold and built in the project. It’s a success. Or is it? Five years later you sit alone in your bungalow at night combing sand out of your moustache. Only two of the other houses show any signs of life. You open your last can of brown beans and hope the taxi you booked will arrive tomorrow as agreed. You actually look forward to visit the area’s only restaurant, in a fishing village some 20 minutes drive away, until you remember how sick you got after your last meal there. Your thoughts drift to family and friends, who all wanted to do something completely different this holiday, while you scoop your beans straight out of the can. You hope to avoid nightly visitors – snakes, rats,

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scorpions, spiders and other reptiles – and wonder if the mosquito net is intact, because there’s an itch on parts of your body where it’s never itched before. You then wander about on the sandy path between the bungalows, which now look as if they were built sometime during the 70s. All the gardens are overgrown and the vegetation is dry. It annoys you that most of your neighbours are not interested in maintaining this paradise on earth, which you finally admit – at least to yourself – that you are so very, very bored of. You didn’t really want to go here either. My advice: Everyone eventually gets bored of sand, sun and coconuts. Therefore, travel to such pristine destinations and rent a bungalow on the beach when the need occurs. Purchase a primary home of high quality, near the beach in one of the major tourist destinations. Here you will find plenty of entertainment, a wide variety of restaurants, shops and excellent service. Moreover, don’t underestimate the importance of a good hospital in case anything should happen. This is the key to a successful investment. Do not buy a house, villa, bungalow or townhouse. You will only take on a lot of maintenance and repairs and depend entirely on your neighbours to maintain their plots for a clean and nice looking environment. Forget it. A centrally located high quality condominium project will allow residents to enjoy themselves. Leave the maintenance for the condominium

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juristic person. This is the only thing that works in the long run.

Why Shouldn’t You Trust “The Happy Buyer”?

Should I Buy a New or a Second Hand Home?

It’s hard to admit to others that you’ve made a huge mistake. Especially if you’ve invested a lot into a vacation home you don’t feel comfortable with. Even to admit this to yourself is difficult; telling yourself: “I just took a dump in the bedroom drawer. I should never have done this”. Usually the argument would be: “I’m sure it’ll quiet down after the high season. Most people will go home. I might try to get a few hours of sleep down by the swimming pool. My neighbours don’t seem normal. How can they run to the bathroom like that all night? Does my roof leak? Something seems to be running down my wall. Is that condensation? Wow, the energy bill! I just blew my budget. I think I’ll have to stop using the air-con except when I’m in the bedroom.”

The advantage of a completed project is that you can move in as soon as final payment and transfer have taken place. Please note you won’t be able to affect the choice of materials, fittings and furnishings (in Thailand second hand homes sometimes come with furniture). You may therefore end up with something you’re not completely satisfied with. Recently completed quality housing which you can move straight into is usually more expensive than a project in its pre-construction or construction phase. If you are among the first to buy in a new construction project, you will always get the best prices. You can also choose the right space and make sure the unit turns out just the way you want it. You are also given the opportunity to monitor the construction process and therefore more easily able to spot errors you wouldn’t otherwise have noticed. My advice: Do what suits you and your finances best. But if you don’t plan to follow my advice about location and quality, and go for cheaper accommodation, you may as well buy second hand. Just make sure you get a substantial discount from those who sell because they regret their own purchase.

My advice: Again, don’t trust anyone. Do your own research. Once more I remind you to go for quality.

Why Shouldn’t I Buy Leasehold Land (With or Without a House)? The maximum period of a lease agreement in Thailand is 30 years. A developer may give you a contractual right to renew the leasehold agreement for two further periods (30 years each), however in reality you’ll find you have no protection from the local courts to enforce this contractual right. Should the land owner happen to die, heirs have the right to terminate your lease agreement, even though you have barely moved into your new house.

The fact the house is registered in your own name doesn’t help much, as long as you have to pay to remove it from the leasehold site. Should the land owner decide to use the property as collateral for a mortgage and is unable to serve his payments, you also have a problem. Or what if he goes bankrupt? Did I scare you now? Good. My advice: Avoid everything to do with leasehold, regardless of whether the owner is a company or a private individual. This is another reason you should stay away from houses, townhouses and bungalows.

How Do I Pay for My Property? I assume some space has been allocated to this topic in the “Thai Property Guide”, which you’re now reading. I’ll therefore get straight to the point. My advice: 1) As a foreigner you are required to obtain a “Certificate of Remittance” so you can transfer your condominium unit into your own name at the land office. This remittance advice should be provided to you by the local receiving bank that you transfer money to from your account outside Thailand. All serious developers will assist you with this, or at least give you an accurate overview of the process. Do NOT transfer any amounts from your bank at home to Thailand before you know how to execute this procedure correctly. 2) In Thailand it is normal to pay instalments during the construction

period. It is therefore important to buy from developers you can trust and who have a track record. Check that the developer has a building permit (+ EIA) and commitments on construction finance from the bank (alternatively: Ask to see the developer’s financing plan if it doesn’t use a bank). Ensure that a minimum of 50% of the purchase amount remains before transfer of the unit at the land department. Check the ownership of the project site.

Why Shouldn’t I Buy a Leasehold Apartment? Many developers decide to lease the Thai quota apartments to foreigners when the foreign quota has been sold out (49% of the area). It may be this is a freehold plot where you’ll be offered to transfer the title deed to yourself (if the foreign quota is increased) or to a Thai individual or company in the future, before the 30-year lease period expires. Unfortunately developers may fail to factor in taxes they must pay on the purchase amount (the amount you pay for the leasehold rights). As the developing company still owns the apartment you are leasing, it will not get a deduction for this on construction costs. The apartment may also be subject to property taxes. The developer might decide to push the cost of taxes over onto you via the lease contract, effectively giving you the bill. Renewing the lease after 30 years? Who will pick up that bill and what will the cost be? Complicated, you say? I agree. Leave it.

My advice: Stay far away from everything that relates to leasehold agreements.

Final Words A lot of space has been dedicated to telling you what to look out for and not to mention the reasons why. Some of what I’ve discussed may appear complicated to some. However do not let that prevent you from fulfilling your dream of a perfect vacation home in the Land of Smiles. It’s really not that difficult. Forget what I told you to avoid and focus instead on what you should do. This may be summarised in one simple sentence: Invest in a new quality home in a central location from a professional developer – near the beach and in one of the major tourist destinations – and make sure you receive a (freehold) title deed in your name. Nevertheless, remember each word in this sentence is vitally important. That’s it. Good luck!

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Banking for Foreigners in Thailand The decision to move to a new country, either permanently or on a temporary basis, comes with mixed emotions of excitement and trepidation. While customs and procedures vary from country to country, when you add another language to the equation, life becomes more challenging. Aspects of everyday life we take for granted at home can become major frustrations in our new location, especially if we cannot make ourselves understood. By David O’Callaghan, Expatriate Banking Services Bangkok Bank Limited.

or example, if you walk into a bank in Thailand, and your total understanding of the Thai language is “Sawadee Khrap” (hello), banking takes on a whole new meaning. When you ask: “Do you speak English?” the staff member might look at you with a pleasant smile and holding the tip of her little finger, reply: “Nitnoi” (a little bit). Panic!! Bangkok Bank recognized this situation some time back, and has been developing services to make banking a smoother experience for expat customers when they arrive at any of its 1000 branches around the nation. To this end the bank has introduced specific staff training on dealing with

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expats, developed a comprehensive expat banking website, and produced a booklet entitled: “Welcome. A Guide to Bangkok Bank Products and Services”. The bank has also established an email account for expats, expats@bbl.co.th, which is monitored on a daily basis. For most personal customers, the initial products required from a bank are a savings account, ATM or debit card, internet banking and a credit card. While check account facilities are common in many countries, this is not the case in Thailand. Checks are generally used only by business customers so there is often

a reluctance to accept them from individuals. To open an account with a bank you will need various types of documents, depending on your visa type. If you are in Thailand to work, the bank will want to see your work permit, along with your passport. Should you enter on a tourist or longer-stay visa then the bank will require your passport and one other form of identification. A list of acceptable documents for identification can be found on the Bangkok Bank website, www. bangkokbank.com, in the personal banking section. One option is a letter of introduction from your home

bank through the SWIFT system that operates between banks; it may be easier to arrange this before you come to Thailand. ATM machines are located throughout the country. Bangkok Bank alone has some 7000 in its branches and shopping malls, train stations and other busy venues. Your overseas card will be accepted in these machines but please be aware that most machines will charge a 150 baht fee for the service. It is also likely that your home bank will add a foreign transaction commission to the transaction so if you are going to be in Thailand for some time or intend to make regular trips here, it would be worth opening an account and using a local ATM card. Should you set up residence in Thailand you will likely require utility services such as power, telephone, internet or television. The monthly payments on these services can be made very easily using the bank’s full English-language internet banking service. Apart from basic services such as checking your accounts, transferring funds and paying bills, you can also make regular international funds transfers through this channel. Bualuang iBanking is highly secure and uses SSL and 128 bit encryption, a global encryption standard. All major credit cards are used in Thailand although some Thai Banks will ask the card holder to make a collateral deposit equal to the credit limit that is approved. This is repayable upon cancellation of the card. If your purpose is to make online purchases, a convenient alternative is a Be1st debit card – when you apply for the card, remember to ask for your name to be added to it, as this is generally a requirement in online shopping. If you wish to transfer funds into Thailand, you will need to advise your home bank of the account details. In addition to the branch and account number you will need to provide the SWIFT code of the Thailand bank. For example, Bangkok Bank’s SWIFT code

to Thailand to make a property purchase, make sure you note on the transfer that the funds are for the purchase of property, and ask your bank to provide you with a foreign exchange transaction certificate to this effect. This will make the process considerably easier, should you wish to remit the sale proceeds of the property away from Thailand at a later stage.

is BKKBTHBK. If transferring funds from European countries, you may be asked for the recipient bank’s IBAN number. Thailand, like a majority of countries does not operate under the IBAN system. This is largely restricted to European countries.Thecountries. The SWIFT code is sufficient.

If you are transferring a large amount of foreign currency to Thailand, and prefer to wait before converting it to local currency, you can open a foreign currency deposit (FCD) account to hold the money, pending conversion.

People often ask: “Should I send Thai baht or Euros to Thailand?” Since the baht is not a currency widely traded outside Thailand, you should get a better rate if you send Euros to be changed into baht here. The attractions of Thailand mean that many expatriates stay longer than they originally intend, and eventually may decide to purchase property here. Should this be of interest, it is advisable to get professional advice, as in general foreigners cannot purchase land in Thailand. Foreigners can, however, buy condominiums, provided that no more than 49% of the units in the building are owned by foreigners. Under the rules of the Bank of Thailand, foreigners are unable to borrow money from the banking system, so funding of any purchase must come from outside Thailand. Should you be remitting funds

While working and living in Thailand you will hopefully accumulate surplus funds. There is a huge variety of investment funds managed by the banks to suit your particular needs. These are easily bought and sold and can even be managed via ATM or internet banking, so are excellent vehicles for some of your savings. A concern for many newcomers to Thailand is the safety of the banking system. Commercial banks registered in Thailand must report to and comply with the regulations of the Bank of Thailand, which adopts a very cautious and conservative approach to regulating the banking environment within Thailand. Banks are monitored by the rating agencies and Bangkok Bank currently is rated Baa1 by Moody’s Investors Service and BBB by Standard and Poor’s. In addition, the government’s Deposit Protection Agency guarantees deposits up to 50 million baht per customer. This will change in August 2012 when coverage reduces to 1 million baht per customer. With a little patience and understanding you will find that the local staff at Thai banks are extremely considerate and eager to help you. And despite the occasional language difficulties, you will find comfort in the similarity of Thailand’s banking services to many of the products and practices of your home country.

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SEB (Skandinaviska Enskilda Banken) Address: 50 Collyer Quay #12-03, OUE Bayfront, Singapore 049321, Singapore Telephone +65 62235644 (general) +65 63570895 (private bank) Fax +65 62253047 (general) +65 65324538 (private bank) Email Rebecca.tan@seb.se (general) singapore@sebprivatebanking.com.sg (Private Bank) Web page www.seb.se www.sebprivatebanking.com

Contact persons:

Bo Carlsson, General Manager (Merchant Banking); Ole Fredrik Hamre, General Manager (Private Banking); Andreas Ebbe, Private Banker â&#x20AC;&#x201C; Asia Pacific

Area of business SEB Singapore provides a full range of commercial banking activities with emphasis on trade finance, structured finance, cash management, shipping finance and treasury services aimed at the needs of Northern European and German companies and their counterparts in the Asian region as well as Financial Institutions in Asia. In addition, our Private Banking subsidiary provides international offshore private banking services for Northern European individuals

Overview of the company SEB is a North European financial banking group that serves over 400,000 companies and institutions and more than five million private individuals through its branch offices in Denmark, Finland, Norway, Sweden, the Baltics, Germany, Ukraine, and other international financial centres. SEB Private Banking, the international private banking arm of the SEB Group, opened a fully-fledged private bank in Singapore in 2005. SEB Private Banking provides a comprehensive range of tailor-made international wealth management services for Nordic individuals with offshore assets residing, working or investing abroad. The only fullyfledged Nordic private bank in the Asia Pacific, the SEB Group offers its Nordic private clients account booking facilities and front offices in various locations around the world: Luxembourg, Switzerland, and Singapore. The Singapore office serves Nordic individuals living, working or investing in the Asia Pacific region, and the product offering ranges from financial advisory services to internet banking, regional equity brokerage, and a wide range of various investment opportunities.

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On the lookout for CNH? The only Nordic Private Bank in Asia Pacific. Now also offering offshore Chinese Yuan investments. Tel: +65 63570895 E-mail: singapore@sebprivatebanking.com.sg www.sebgroup.com/privatebanking

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Moving to Thailand Checklist We have all made some moves in our life. Some went well; others did not! Like in everything you do you have to have a Plan according to your employment contract, with budgets and timelines. An important part of the plan is to make a Checklist of what to do. To help you get started, please see my menu below. By Leo Alexandersen Owner of Pacific Orientation Relocation Services Co Ltd, Thailand

tour to familiarize yourself with your new city. Support you with Housing and School search â&#x20AC;&#x201C; this alone is very time consuming and probably the most critical part of your move.

Cultural awareness training to avoid making the most elementary mistakes. Advice for selecting the right Moving company. Arranging an Orientation

Your company will arrange your Work Permit and Visa applications but you need to understand the process and timeline to fit into your overall program. Once you have arrived, you need support with setting up internet and cable TV, opening a bank

o implement the Plan I recommend that you get professional help with your move. Donâ&#x20AC;&#x2122;t believe you can handle everything yourself! This includes Personal Income Tax advice. Advice on which Insurances to have (health, liability, household goods).

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account, getting a driverâ&#x20AC;&#x2122;s license, and register your family with a hospital and get their emergency contact card. I can say that it is preferable to have one center coordinating all of this for you. When combining your own Plan with professional local relocation Expertise, the chance is that your move will be a successful and happy one. Welcome to Thailand.

Pre-Move Countdown Activities • Arrange a complete physical and receive the required inoculations a month before departure. Hepatitis B, Typhoid is recommended for Bangkok • Complete host country resource reading and company orientation material • Consider making arrangements for “ Power of Attorney” • Have any necessary adjustments made in insurance policies • Notify local charge accounts of address change or have them cancelled • Notify local post office of mailing address changes and provide six to eight weeks’ notice of change to magazines • Once departure date is known, inform home delivery services, utilities, etc. • Secure and become familiar with samples of Thai currency. Familiarize family members • Secure the following - Passport – keep with your passport a written record of all immunizations and vaccinations with dates and physicians’ signatures. Immunization, school and local health authorities often require this information. - Separate passport for each family member - Birth certificate(s) and marriage certificate - Children’s school records - Letter of credit, reference and competence - Universally accepted credit cards, such as American Express, Master card or Visa card - Travellers Cheques (in home and host country currency). Have cash availability for settling in purposes - Letter from current auto insurer referring to driving record and insurance history - An account in a bank that has Bangkok branches or an open transactional relationship with a Bangkok bank

- Large safe-deposit box - Copy of your most recent prescription for glasses, contact lenses and medicines and a spare pair of glasses/lenses - A supply of prescription medicines adequate until local medical contacts can be established - High school certificate, University transcripts/ diplomas and employee letters of recommendation • Arrange for your home country to send pertinent publications to you on a timely basis • Communicate with your receiving office (and us) as to your exact date of arrival in Bangkok and your employment starting date • Receive tax counseling from an experienced international tax expert • Obtain medical and dental records for you and your family • Obtain original or certified copies (translated) of your university degree(s) and transcripts (record of grades). These are often necessary for continuing your education or employment • Execute a will • Make arrangement for support obligations of family members remaining at home • For children, choose a legal guardian. In case of you and your spouse’s unexpected death, the legal guardian will be the only one permitted to take your children back to your home country • Vital documents should be recorded on a checklist with a separate record kept of them. Give a copy of the record to a home country resident, relative or friend and place a copy in your safe deposit box with originals. • Bring all legal documents in your personal luggage – do not send them with your shipment • Prepare a detailed inventory list for the insurance company with photographs, for proper coverage.

Document Checklist Personal and official documents should be brought with you to Bangkok. The following informal checklist could be used as a guide: • Signed and notarized Power of Attorney executed by each spouse on behalf of the other • Joint checking account details • Current copy of will(s) • List of family members, social security numbers, bank account numbers, insurance policy details, passport numbers with dates of issue • Family medical records and prescriptions, immunization records, eyeglass prescriptions • Up to date household inventory • Children’s school records • Past tax records and information necessary for filling your future tax return • Bring and use your existing credit cards while in Bangkok. Birth and marriage certificates • Past employment records, resumes, letters of recommendation • List of your home country doctor, dentist, lawyer and other professionals • Mortgage records, deeds, bonds etc. • Updated address books - business and personal • Travelers cheques, bank book, cheque book and cash • List of assets and liabilities

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Visa and Work Permit Regulations for Foreigners in Thailand Foreigners who intend to spend a certain time in the Kingdom of Thailand have to deal with the Thai Visa regulations. Furthermore, if work in Thailand is envisaged by a foreigner, he has to comply with the applicable work permit requirements. The following article provides an overview on the most important regulations that should be considered prior to entering the Kingdom. By Martin Klose, Roedl & Partner Co., Ltd

Visa Regulations Generally, any person, other than being in transit or citizens of countries that have entered into respective bilateral agreements with Thailand, is required to obtain a visa in order to enter the country. The Thai Immigration Act of 1979 (as amended in 1980) establishes various visa categories. Most foreigners enter Thailand as tourists. Tourist visas are initially valid for 60 days and renewable at the discretion of the Immigration Department. Renewals are normally granted for periods up to 30 days at a time. Foreigners who have obtained a so called Transit Visa from a Thai Embassy or consulate will be granted a 30-day stay in the Kingdom. Extensions of such stay are normally granted for periods of 7-10 days. In 54 l Thai Property Guide

practice many tourists are exempt from the Visa requirement as nationals of more than 40 countries which cover most European countries will be able to enter Thailand without a visa and may remain for 30 days per visit. If foreigners enter the Kingdom under the Tourist Visa Exemption category, they may re-enter and stay in Thailand for a total duration of stay not exceeding 90 days within any 6-month period from the first entry date. It should be noted that holders of transit, visitor transit and tourist visa are not permitted to work in Thailand. For foreigners intending to work in Thailand or stay for a timeframe which exceeds the aforementioned periods, there is a high relevance of so-called Non-Immigrant Visa. Such visa should be applied for all family members prior to entering the Kingdom. There are several categories of Non-Immigrant visa which include, among others, business visa category (B), dependent visa category (O) which is relevant for family members, investment subject to the provision of the laws on investment promotion (BOI IB), diplomatic and consular visa category (D), performance of duties with the mass media (M), performance of skilled or expert work (EX), investment with concurrence of ministries and concerned departments (capital investment IM), and the visa category for study or observation (ED). Advantages of a Non-Immigrant visa include the entitlement of the holder to apply for a multiple re-entry visa to Thailand from the Immigration Division in Bangkok and, subject to the regulations of the Immigration Authorities, entitlement of the holder to apply for permanent residence in Thailand. Other advantages are the eligibility for issuance of a work permit to the holder as well as for temporary visa renewal while processing issuance of a long-term annual visa. Foreigners may also apply

for permanent residence permits for Thailand under certain conditions, such as investment in a business or a condominium. Respective applications can be submitted to the Immigration Department and in some cases to the Board of Investment (BOI), if in line with respective BOI-announcements. Another type of visa is the so-called Non-quota Immigrant category which for example includes residence permit holders who want to leave the country for a certain time and need to apply for this type of visa in order to preserve their rights in accordance with the residence permit. It can thus be compared to the re-entry permit to preserve the right of Non-visa holders. Members of the diplomatic or consular corps, foreigners coming to perform their duties in Thailand with the approval of the Thai Government, foreigners performing their duties in Thailand under an agreement between the Thai Government and a foreign government, heads of international organizations or agencies operating in Thailand, and dependents of all the aforementioned persons, including private servants of members of the diplomatic corps, are generally exempted by the Immigration Act from the normal visa requirements. Foreigners should strictly observe the rules governing each visa category and report any changes of address or

status to local police within 24 hours. In addition, foreigners residing in Thailand for more than 90 consecutive days are required to register their address with the Immigration Bureau every 90 days. This requirement applies to all foreigners, including holders of work permits and longterm visas. Failure to do so can result in substantial penalties. In response to feedback from investors, the BOI coordinated the establishment of a One-Stop Service Center for Visas and Work Permits. Through joint cooperation with the Immigration Bureau and the Ministry of Labor, the center can process applications or renewals of visas and work permits within three hours, upon receipt of proper and complete documentation. In addition, the center handles other transactions, including the issuance of multiple re-entry stamps, changes in class of visa to non-immigrant from tourist or transit, and payment of fines.

case and usually includes, among others, a valid passport containing a Non-Immigrant visa; evidence of the applicant’s educational qualifications and letters of recommendation from the former employer, describing in detail the applicant’s past position, duties, performance and place and length of employment; a recent medical certificate from a first-class licensed physician in Thailand stating that the applicant is not of unsound mind and not suffering from certain diseases; three 5x6 cm. full-faced, bareheaded, black and white or color photographs, taken no longer than six months prior to the filing of the application.

Work Permit Any foreigner working in Thailand must obtain a work permit before commencing work. Exemptions merely exist for a few groups of profession, i.e. members of the diplomatic corps or professionals performing work of any urgent and essential nature for a period not exceeding 15 days. The term “urgent and essential work” is not explicitly defined in the Foreigner Employment Act and the issuance of such exemption is subject to administrative discretion. While a prospective employer may file an application on the foreigner’s behalf in advance of his commencing work, the actual work permit will not be issued until the foreigner has entered Thailand in accordance with the immigration laws and has presented him or herself to receive the work permit. Required documentation varies from case to

The permit, if issued by labor authorities with competence outside of Bangkok, will initially be valid only for the period stipulated in the foreigner’s Non-Immigrant visa. Subsequently the work permit will be subject to renewal in accordance with the renewed or extended visa. With regard to work permits which have been approved by the labor offices in Bangkok area these rules are no longer applied, therefore the work permit can be issued and extended over the period stipulated in the applicant’s NonImmigrant visa as a one year work permit, subject to subsequent renewal. The Labor Department will in principle grant an initial duration of one year for the work permit which is subject to subsequent renewal. It should be

noted that some types of work permits could be approved for the duration of two years such as a work permit for Representative offices, companies with registered capital exceeding 30 Million Baht, as well as work permits for BOI-promoted companies. A work permit must be renewed before its date of expiry. Work permits, which are valid for the period of the visa, have to be renewed every year. When an individual applies for a renewal of visa, he or she has to show that taxes for the previous year have been paid. It should be noted that Thai law prohibits employers from allowing foreigners to perform any function other than that described in the foreigner’s work permit. Employers must report changes in employment, transfers and termination of all foreigners in their organization within 15 days of any such action. In cases of dismissal, foreigners must return their work permits to labor authorities in Bangkok at the Foreign Occupation division or, if they are in a provincial area, to the province’s Department of Employment. Any foreigner engaging in work without a work permit, or in violation of the conditions of his work as stipulated in his permit, may be punished by a term of imprisonment up to three months or a fine of up to 5,000 baht, or both. An employer who permits a foreigner to work in his organization without a work permit or to act in violation of the nature of the work specified in the permit may also be punished with imprisonment up to three years or fined even up to 60,000 baht, or both. Permit holders must obtain prior permission to change their occupation and/or place of work. A change of the employer’s location or the residential address of the permit holder must be properly endorsed in the work permit by the labor authorities. The Foreign Employment Act does not prevent a foreigner from engaging in work in more than one field or for more than one employer.

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Serviced Apartments Serviced Apartments have offered temporary living solutions for individuals and families across the globe for more than 50 years. By Bjorn Richardsson, Oakwood Serviced Apartments

rimarily targeted at people who relocate to a new city or country, serviced apartments are an ideal choice for a first address in the new location, and offer a complete home from where more permanent living options can be explored. Offering the privacy of a home away from home whilst providing the services of a hotel, the benefits of living in a serviced apartment are numerous,

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and there are many families who opt to stay their entire period abroad in a serviced apartment as opposed to seeking other semi-permanent accommodation, such as renting a condominium or a house. While the product standards and service levels vary, in Thailand most serviced apartments are at the high end of both. Apartments typically range from Studios to 2 or 3 bedroom apartments, and are similar in size and layout to normal condominium apartments. The kitchen is normally fitted to include a large fridge with freezer, cooking hob, microwave oven, and various appliances such as toaster, hot-water kettle, pots, pans & cooking utensils. In addition, china, glassware and cutlery are available. As in normal home a washing machine / dryer is also standard, as well as Internet / Wi-Fi connection, TV with satellite channels and multi-media / DVD player, electronic in-room safe

and complete fire / life-safety and security systems. Generally, serviced apartments require a minimum of one month stay, but in Thailand most serviced apartments also possess a hotel license, and are therefore also able to cater to the needs of guests staying for shorter periods and would otherwise chose a regular hotel. As serviced apartments are fitted with a kitchen and generally are larger that a standard hotel room, they have become an increasingly popular choice of accommodation for leisure travelers, especially for families travelling with children, as well as with business travelers and other guests who need additional space. Just as in regular hotels, serviced apartments offer housekeeping, laundry & dry-cleaning service, engineering assistance, 24-hour security, front desk and bell / concierge services and also assist with transportation needs, etc. Facility-

wise, most serviced apartments have an on-site restaurant with roomservice, and also feature swimming pool, fitness centre, and as a lounge / library / smaller meeting room, while hotels normally offer more / additional facilities, e.g. several restaurants, large meeting rooms, Spa, etc. While the daily rate for serviced apartments normally is lower than at a hotel, it should also be noted that the rates for monthly and daily stays at serviced apartments are different, with the daily rate being higher than the monthly rate. Some serviced apartments also offer discounts on the monthly rates for stays above 6 months – 1 year. The rate difference is due to the slightly different service offered for daily stays, e.g. provision of bathroom amenities, linen change and housekeeping services, etc. For monthly stays, guests are generally provided with an initial setup of amenities, and are thereafter

responsible to provide their own soap, shampoo, etc. Housekeeping generally service the apartment 6 days per week with twice weekly linen change, but this varies between operators. Even though rental of a condominium or house may initially look cheaper than staying in a serviced apartment, there are several advantages of staying in a serviced apartment. Primarily, condominiums generally require minimum rental periods of six months to one year as well as several months rent in deposit, while serviced apartments rent out on a monthly basis, with only one month deposit and/or one month’s advance rental required. Serviced apartments also either include, or have a monthly basic allowance for, electricity and water consumption, internet / Wi-Fi connection, and include TV subscription and IDD phone lines. In a condominium, those are sometimes either added on to the

rental fees or not available at all. Also, as implied in the name, all services are either included or available in a serviced apartment - to find a maid and to provide linen, towels, cooking utensils, china and glassware etc. may be difficult when arriving in a new destination, and also require additional time and cost. Finally, a few things to look at and consider when selecting a serviced apartment for monthly stays: • If your schedule requires you to stay a few days longer than a month, will the monthly rate be pro-rated at the monthly rate during the additional days, or will a new daily rate apply? • Does the rate include Internet / WiFi connectivity? If not, what is the monthly charge? • Does the rental include electricity and water? If not, what is the monthly allowance, and what is the charge per additional units?

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Thailand's health care system Navigating the health care system in ones own country can be a challenge at times, but the challenges are generally foreseeable. In my own country I never attempt to see my health care practitioner without a good book, my I-pad charged, and if it is near Christmas a bit of knitting. I expect to wait no matter how early or on time I may be for my appointment. Likewise, when traveling overseas and utilizing health care services, it is nice to know what to expect so that you can be prepared. By Nicolas Leloup, Samitivej Hospital 60 l Thai Property Guide

he great news is that Thailand has developed the capacity to meet the health care needs of foreign patients. In fact, in 2007 Thailand cared for approximately 1.4 million foreign patients. Many foreigners use Thailand’s health care systems while they are living, working, or traveling throughout the country. In addition, there is an increasing population who arrive in Thailand for the sole purpose of utilizing the countries health care services. These individuals are attracted to Thailand’s system because they are looking for a more advanced level of care then what is available in their home country, more cost effective care than what is available in their home country, or potentially both. Singapore, once considered the “go to” country for medical tourism is now being surpassed by Thailand. Having said that, there is a huge variation on what can or should be expected when one walks into a health care facility. For example, depending on the geographical location you can expect to find a Starbucks and a piano being played in the hospital’s lobby, or alternatively an open air corridor where patient family members are sitting on the floor eating lunch. In case there was any question, Bangkok is the

largest city as well as the countries primary financial and health care hub. It is in this city where you can have your blood taken while being serenaded as you sip your tall non-fat latte. Of Thailand’s 28 internationally accredited hospitals, accredited by the Joint Commission of International Hospitals (JCI), 22 of them are located in Bangkok. In addition, the two most prestigious medical schools in Thailand, Chulalongkorn and Mahidol University, are both located in Bangkok. Few hospitals, such as the Samitivej Hospital Group, have accredited hospitals located both in and outside of Bangkok ensuring an international standard of care in multiple settings. If staying for an extended period of time in some of the cities outside of Bangkok such as Hua Hin, Phuket, or Pataya, it is advisable to identify a competent English speaking physician for minor acute/stable chronic disease care; with the expectation that more serious conditions will necessitate a transfer to Bangkok. The level and price of care will vary between each hospital and clinic. Thailand claimed universal health care coverage in 2002, but this

coverage certainly does not apply to foreigners. Although health care is competitively priced relative to many developed countries, in the case of a complicated and/or serious illness/injury medical expenses can accumulate exponentially. It is advised that everyone acquires comprehensive health insurance and understands what is and is not covered under their policy prior to arrival. For example, some policies cover only overnight/ in-patient hospital care vs. day/outpatient visits and will only evacuate one to the closest center of medical excellence vs. repatriation home. Many policies will not cover preexisting disease. It is better to know your policies coverage conditions from the onset. Moreover, keeping this information easily accessible in multiple locations (i.e. wallet, car, home, with your passport) is extremely advisable. Its Murphy’s Law that whatever can go wrong will go wrong – please plan so that this law does not apply to you or your loved ones. Finding yourself misunderstood and/ or misunderstanding the person in front of you, but somehow finding a way to communicate can add to the overall fun of engaging a different

and potentially new culture. But there is nothing like an acute illness to take the fun out of problem solving communication issues. Fortunately, physicians who work in organizations which cater to foreign populations have excellent language skills. Most have completed part or the majority of their medical training overseas in order to further perfect their technical skills as well as their

communication skills. However, the capability to communicate in a second language can vary significantly among nursing and ancillary staff. Ones expectation to be easily understood should decrease the farther one travels outside of Bangkok. Few hospitals, such as the Samitivej Hospital Group offer comprehensive language training services for staff and additional translation services needed for patients in order to prevent miscommunication. Please don’t expect to find a foreign health care practitioner providing direct care. Foreign healthcare practitioners are not able to provide direct care without first taking the recertification exam in the Thai language, so there are only a handful of practitioners who have committed the time needed to become sufficiently proficient in Thai. In addition to the language barrier, navigating Thailand’s health care system can be complicated for other reasons. The majority of physicians in Thailand practice as specialists. The role of the ‘general’ practitioner, who treats standard acute and chronic illnesses, consulting and coordinating with specialists as needed, is not the way things are necessarily done in Thailand. Thai-Swedish Chamber of Commerce l 61

Therefore, an individual arriving with a history of multiple chronic illnesses should expect to repeat their health history to multiple providers, and the burden of cross communication between specialists may need to be borne by the patient. For example, an individual with a history of diabetes, hypertension, and osteoporosis may need to see three different specialists’ (endocrinologist, cardiologist, and gynecologist respectively) for care and will need to ensure that any treatment plans followed are known by all those involved in order to ensure care continuity and safety. Speaking of navigation, just because one has mastered the map of Thailand, doesn’t mean he/she will get where they want to go on time. Traffic is precarious in Bangkok, making responding to emergency situations even more so. There is no centrally run emergency response service similar to North America’s ‘911’. Each center must own and operate the ambulances they deem necessary to transfer patients and respond to emergencies. Determining the closest provider who is most able to care in an emergency situation should be a priority. Once determined, keep the phone number of the hospitals’ ambulance service where it can be easily accessible by all.

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Having read and understood this article but still find yourself frustrated, standing in front of a hospital counter, and raising your voice at a health care provider or ancillary staff member only to find him or her smiling at you in return … please don’t erupt. Do yourself (and everyone around you) a favor and take a deep breath. You are being provided a lesson in Thai cultural competence 101. The Thai people take smiling and politeness seriously.You will rarely see a Thai person yell in frustration. Moreover, the customary response to being yelled at is to smile as a sign of wanting to help and rectify the situation.

The service provider is not laughing at you and I promise he or she is taking your issue to heart despite the response being different than what you are used to. Politely asking to speak to the staff member’s manager is always a better option then pulling out ones hair.

Bureauo of Policy and Strategy Ministry of Public Health. (2009). Health policy in Thailand. Retrieved from http://bps.ops.moph.go.th/ Health%20Policy%202009.pdf Joint Commission International. (2011). Accredited organizations. Retrieved from http://www. jointcommissioninternational.org/JCIAccredited-Organizations/ NaRanong, A & NaRanong, V. (2011). The effects of medical tourism: Thailand’s experience. Retrieved from http://www.who.int/bulletin/ volumes/89/5/09-072249/en/index. html

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Buying Medical Insurance in Thailand? First the good news: the standard of medical treatment available in Thailand is very good by world standards. International hospitals are well-equipped, doctors well-trained and general medical costs reasonable. By Jerome Kelly, Lawton Asia

owever, with the wide choice of medical insurance policies available, finding the right one for you and your family can be quite daunting. No policies are exactly alike and there are plenty of subtle nuances in the policy wordings; meaning you need to go over them with a fine-tooth comb. On the plus side, the medical insurance market here has become much better regulated in recent years. The Office of the Insurance Commission now looks after the needs of all consumers, including expatriates, and this has led to better quality insurance products and, just

as importantly, greater consumer protection. Today, all insurance sales people have to be qualified; meaning all legitimate salesmen have a license that you can ask to see. So what should you look for in a medical insurance policy? Firstly, you need to think carefully about what benefits are most important to you and how much you want to spend. It’s useful to be aware of medical costs in Thailand so that you know what level of cover to buy – for instance, the average room cost for an international hospital is around 3,500 baht a day. At its most basic level your health cover should offer medical treatment when you want it, and where you want, including the costs of surgery, specialists, nursing and choice of hospital. In this respect, exclusion clauses and restricted benefit levels are just two of the areas where you can get caught out if you don’t look carefully at the small print. For instance, a policy may say it covers ‘cancer’, but then puts a limit on outpatient treatment. With modern cancer drugs on the market at over 120,000 baht a treatment, your limit could soon be exceeded. Pre-existing conditions (medical problems you had treatment for prior to taking out the policy) can also adversely affect your benefits. Forms of asthma,

diabetes, high blood pressure and high cholesterol levels are just some examples of pre-existing conditions which could lead to exclusions on your policy.

Types of policy available The top-of-the-range products are international in scope and are often transferable into other overseas plans if you leave Thailand. Typically, they offer high benefits, good cover and provide access to international hospitals in Thailand. Among the wide variety of insurance products available in this category are many that have been specially tailored for expatriate families. Although the premiums on these policies can be quite expensive, costs can be lowered considerably through the use of deductibles (the amount you agree to pay for medical bills before the insurance cover comes into effect). There are also policies designed for the local market with benefits that reflect the needs of the Thai population. These may be suitable for expatriates on a tight budget, but in the case of a serious illness, the benefit limits can be quickly exceeded, leaving you to pay the remainder. Also, when it comes time for renewal, the serious illness you had may be excluded from the new policy and the premium increased. These products are not transferable overseas. Finally, there are ‘offshore insurance products’ which you can purchase outside Thailand for use within

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Thailand and other countries. The products themselves may offer good cover, but, if there is a dispute with the insurance company over the payment of a claim you have no legal redress within Thailand; you have to revert to the country of origin. Such policies normally cover you when you travel to most other countries (although, as with most policies, the USA is excluded because of it’s horrendous medical costs).

It pays to use a broker Because there are so many nuances within medical insurance policies which need to be properly explained and understood, it is a good idea to talk to a broker who can give you clear, concise advice. Contrary to popular belief, you still pay the same price whether you buy through a broker or go direct to an insurance company or their agents. The big advantages of using an independent insurance broker are choice and support. A good broker will help you decide on the type of cover you require and then go to several different insurance companies to give you a variety of options and prices. Buying direct from the insurer, or their agent, means you will need to do your own research as the company will only

sell your their own products. Secondly, if you have a dispute with an insurer over the payment of a claim, a good broker will support you in your claim, if it is legitimate, and, if the insurance company still refuses to pay up, will take your case directly to the Office of the Insurance Commission for an independent ruling.

Understand the terminology After you have decided on the policy that suits your requirements, there is one other point you need to be aware of: there are two different forms of medical underwriting; ‘Moratorium Underwriting’ and ‘Full Medical Underwriting’. Which is best for you will depend on your health. Full Medical Underwriting is based on the insurer knowing your medical history before the policy is issued; whereas with Moratorium Underwriting you are not asked to give details of your medical history. There are advantages and disadvantages to both types of underwriting. For instance, if you know for certain that you do not have any preexisting conditions, then Moratorium Underwriting can be advantageous. It means that there is no need for you to fill in a medical questionnaire,

and cover can start as soon as your application is received. What is and is not covered is defined by the plan’s benefits, terms and conditions. However, if you do have a pre-existing medical condition, Full Medical Underwriting is probably preferential. Here the insurer is aware of your medical history before they sell you a plan since you need to fill out a medical questionnaire and wait while the insurer decides on what cover they will offer. This means they have more control over what they cover and, if they so choose, they can cover preexisting medical conditions from the start of the plan. To summarize: when buying medical insurance don’t simply look at premiums, make sure you understand the benefit limits (per visit and per year); watch out for exclusions and the way an insurer treats pre-existing conditions; take a deductible to help you reduce premium costs; get help from a broker; and tell the truth on your application form, not to do so can cost you dearly in the long run. Finally, remember the golden rules: always get the best medical insurance that you can afford, and always read the small print.

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Bangkok Bank Public Company Limited 333 Silom Road, Bangrak Bangkok 10500 Tel: 1333 in Thailand or + 66 (0) 2645-5555 E-mail: info@bangkokbank.com, Website: www.bangkokbank.com

Bangkok Bank PCL Business Type Banking

Company Profile Bangkok Bank is Thailand’s leading commercial bank and one of the largest banks in Southeast Asia. We have Thailand’s largest customer base of around 18 million accounts, and an extensive nationwide channel network of close to 1000 branches, 7500 ATMs and CDMs, and 230 business desks and business centres. Our market leadership is due to our expertise and experience, as well as our philosophy of developing long-term supportive partnerships with our customers. Our self-service network includes ATMs, CDMs, internet and mobile-banking services, all available in English and Thai, plus real-time internet-banking services for business clients such as cash management, trade and custodial services. As the market leader in corporate and SME banking, we offer a full range of commercial banking services including loans, treasury and global payments, trade services, cash management and investment banking, along with specialist industry advice. With 25 branches, subsidiaries or offices in 13 economies, we are Thailand’s only truly international bank. We have fully-owned subsidiaries in China and Malaysia and branches in Japan, the United States, the United Kingdom, Hong Kong, Taiwan, Vietnam, Philippines, Indonesia, Singapore and Laos, as well as a representative office in Myanmar. We have particular expertise in helping companies tap into the fast developing Southeast Asian market and extend their business interests across Southeast Asia and China. Our strong commitment to supporting expatriate customers includes staff specially trained to meet expat needs and a special section for foreign customers on our website www.bangkokbank.com. We have also published a banking guide for foreign customers which you can pick up at any branch. If you have any questions related to business or personal banking services, please email us at expats@bbl.co.th

Senior Management:

Chairman of the Board of Directors: Chatri Sophonpanich Vice-Chairman of the Board of Directors: Staporn Kavitanon Chairman of the Board of Executive Directors: Kosit Panpiemras Vice Chairman of the Board of Executive Directors: Deja Tulananda President: Chartsiri Sophonpanich Senior Executive Vice-Presidents: Suvarn Thansathit, Chansak Fuangfu, and Boonsong Bunyasaranand

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Singapore – growing the private banking industry When the new Marina Bay Sands opened in summer 2010, Singapore added yet another stunning landmark building to its numerous attractions – and another symbol for its innovative and growing economy. Not far off at 50, Collyer Quay #12-03, the Swedish financial services group SEB just moved into their new offices overlooking the Marina Bay.

njoying the stunning view, Ole Hamre, General Manager of the private banking branch looks back at the beginning of SEB’s business activities in Singapore. “SEB has been present in the island-state since 1979, starting with Merchant Banking and later adding private banking services to its portfolio. The latter developed so well that we upgraded the representative office to a full fledged private banking branch in 2005,” says Mr Hamre. What attracts foreign banks and investors, even from the far North of Europe, to the private banking industry in Singapore?

Ribbon cutting of the new premises of SEB in Singapore, Swedish Ambassador Ingemar Dolfe, Annika Falkengren (CEO, Skandinaviska Enskilda Banken AB publ, Sweden), Bo Carlsson (General Manager, Skandinaviska Enskilda Banken AB publ, Singapore Branch) 68 l Thai Property Guide

Situated off the southern tip of the Malay Peninsula, Singapore has long played an important role due to its strategic location. Today the islandstate not only has one of the busiest ports worldwide, it is also the world’s fourth leading financial centre with the fourth largest foreign-exchange trading centre – and it is rated the most business-friendly economy globally. With its stable political climate, strong economic and financial fundamentals, and favourable regulatory and business environment, many of the world’s largest and most reputable financial institutions can be found in Singapore. Today more than 600 international banks and other financial institutions are represented in the island-state. The lion city is the ideal place to serve the fast-growing markets of the Asia-Pacific region which is why SEB has made it the hub for its activities in Asia. The SEB Group has a staff strength of 100 in Singapore, with a team of nine dynamic and entrepreneurial financial professionals at Private Banking. “Together with Europe and American centres, Singapore is a significant hub for 24-hour trading in foreign exchange and securities,” says Ole Hamre. “Furthermore, international travel is very convenient. Singapore has

become a strategic link and important gateway for global investors looking for Asian competence and investment solutions.” Singapore scores high in all the necessary prerequisites which define the best private banking locations. “The regulatory and legal systems are regarded as among the best anywhere,” says Ole Hamre. “Furthermore, the commitment to deliver a professional and personal service is at the heart of the private banking business in Singapore.” The private banking industry has grown over the past 10 years with assets under management amounting to around 300bn, 6 times what they were a decade ago. It is estimated that Singapore manages around 5% of the world’s private wealth. Traditional private banking centres like Switzerland have representative offices or branches in Singapore as do many of the most important private banking institutions in the world. The arsenal of financial products and services is key to the industry. The private banking offering is sophisticated and focuses on tailoring to the individual needs of clients with significant assets. In addition to all the classic retail banking services such as credit and debit facilities, mortgages

Facts about Singapore Capital city: Singapore Area: 694 km2 Population: 5,076,700 (2010 census) Ethnic groups: Chinese 74%, Malay 13%, Indians 9% Official languages: Chinese (Mandarin), English, Malay and Tamil and loans, global wealth management features services such as wealth and lifestyle advisory services, investment strategies, tax and estate planning as well as asset protection and credit services. SEB, who target Scandinavian individuals living or having assets abroad, has a clear advantage over its Nordic competitors. “We are the only Nordic private bank in Singapore offering the whole range of banking services,” says Mr Hamre. “Our clients can benefit from account booking facilities and front office services, both locally and globally.” The head office of SEB’s international private banking activities is based in the heart of Europe, in Luxembourg, with another branch office in the world’s most traditional private banking centre, Geneva. “This enables us to cater to the needs of clients with international investment needs,” Ole Hamre points out. “Say you are a Nordic expat working as a CEO in Singapore for several years,

move on to Bangkok and later back to Europe. With our international platform we can assist you wherever you are: You can keep your account in Singapore, but get access to a private banker in Luxembourg or Geneva, or the other way round.” SEB lately opened a new branch in Hong Kong, strengthening its presence in the region as the Asian market grows in importance for an increasing number of clients. “In Asia, we have more than 30 years of experience and a broad network across the region,” Mr. Hamre continues. “In terms of private banking, Singapore is SEB’s hub for Asian competence, offering all the expertise and investment solutions a global investor is looking for.” Singapore’s private banking industry is likely to grow in importance during the coming years. A country shaped through the need for trade and services, the lion city offers the ideal base for private banking.

Government: Parliamentary Republic; - President S.R. Nathan - Prime Minister Lee Hsien Loong Ruling party: PAP- People‘s Action Party Next election: August 2011 (Presidential) GDP per capita: 43,867 USD (nominal, 2010 est.) Major industries: Electronics, financial services, oil drilling equipment, petroleum refining, pharmaceutical manufacturing, processed food and beverages, rubber products and ship repair No. of financial institutions Insurance Companies/brokers: 218 Banks: 162 Fund Management Firms: 118 Securities Deal: 94 Financial Advisors: 69 Futures Brokers: 47 Corporate Finance: 37

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Time to look East “Oxford slips, more Asian universities in top 100”, said a headline in the Indian newspaper Hindustan Times. For those who are living in Asia, the newspaper headline is not surprising at all. To many Asians, this is the natural culmination of the inevitable shift that is occurring in the world today. By Professor Said Irandoust, President of AIT

owever, for many outside Asia, the shifts that are altering the entire landscape of development are confounding. For almost a thousand years now, people have been looking towards the West. Whether it was technology, science or education, the West seems to have been the natural destination. And rightly so. The first universities of the modern era came up in the West and have continued to be torchbearers in the path of higher learning and education. The “community of teachers and scholars” or universitas magistrorum et scholarium, as they say in Latin gave birth to the modern term “university”. From the times of the University of Bologna, Universities have been a strong European phenomenon, till North America gradually usurped the numero uno position. Though the word ‘university’ may be Western in nature, institutions of higher learning have always flourished in the ancient times in India, China and Greece. The ruins of Nalanda in Indian province of Bihar are a testimony to the intellectual leadership that the East enjoyed during ancient times. The clock turned and Europe took over. Later its hegemony over higher education was challenged by the United States. Time has changed once again. Today, Asian universities are rubbing shoulders with elite institutions from the West. 15 Asian universities have reached the top 100 rankings. It must be appreciated that the Asian miracle is not restricted to finance and economy alone. It is a manifestation of a process that extends into other fields like science and technology, education and society. If Korean mobile and consumer manufacturers are upstaging European majors; and if the Indian and Chinese economies are leading the path towards global recovery following the recession, then these are not isolated instances. They form a part of a collective surge of Asia toward a bigger and rightful share in global space.

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For over six years now, I have been based in Thailand, which is another unique example of remarkable progress and success. Let us not talk about tourism for which Thailand is globally famous. The country is scoring high in other aspects as well. Five universities in Thailand now rank among the top Asian 100. There is no doubt that Europe had a head start in the field of higher education. Unlike Uppsala which was founded in 1477, the first university in Thailand, Chulalongkorn University was established in 1917, though some consider the establishment of Thailand’s first medical school, Siriraj Hospital in 1889, as the beginning of higher education in Thailand. Since then higher education has grown by leaps and bounds. Today the Office of the Higher Education Commission recognizes 71 public sector and 79 private sector institutions, apart from 19 community colleges. Over two million students in Thailand are enrolled in higher education institutions today. Today, more than 16,000 students from all over the world are enrolled in 96 Thai higher education institutions in Thailand. Though majority of the foreign students are from China; North America and Europe contribute 11 per cent of foreign student body. Students from all countries are flocking to Thailand to pursue higher education.

Popular subjects among foreign students include Thai Language, Business Administration, English Language, International Business and Marketing, and Tourism studies. As of 2008, there were a total of 884 international programmes being offered in Thailand which use English as the medium of instruction. Of these 296 were undergraduate programmes, 350 Master’s, 215 doctoral and 23 other degree programmes. Our own Asian Institute of Technology (AIT) hosts students from 40 countries spreading across all continents. Ranging from Peru to Cook Islands, Sweden to Canada, students study here to participate in the Asian learning experience. But AIT is not just international because of its students. Even the faculty and staff arrive from 30 countries. Unlike other institutes which fall under the Ministry of Higher Education of Thailand, AIT is a unique institute since it falls under the jurisdiction of the Ministry of Foreign Affairs of Thailand. Being an international intergovernmental institute, AIT has ambassadors and representatives of 17 countries, including the

Ambassador of Sweden, Norway, and Finland as members of its Board. The advantages of studying in Thailand and particularly AIT are tremendous. Asia is today the centre of global action, whether it is in the field of economy or technology. Obtaining an Asian experience would be a prerequisite for a global citizen of tomorrow. A European student, who studies for a semester as an exchange student at AIT gets an additional qualification, which positions him or her better compared to others. Exchange students at AIT rubs shoulders with friends from all over the world, helping them forge lifelong connections and networks. On the other hand, it is not just foreign students who benefit from studying in Thailand. The country and its higher learning institutes also benefit since it helps overcome insularity that is often the hallmark of local education. Higher education in Thailand is concentrated in Bangkok metropolitan area, which accounts for over 40 per cent of higher educational institutions. Pedagogical techniques often focus on memorization and acceptance of what is taught rather than critical thinking.

This is being increasingly challenged due to arrival of not just foreign students but also Thai scholars who have studied abroad and are returning to their country. Due to unprecedented economic growth, the job market in Asia is expanding. As opportunities grow, there is need for more talent. Asian markets are acting as magnets for attracting global talent. Today Thailand ranks fourth after India, China and Malaysia as the most attractive outsourcing offshore destination, according to A.T. Kearney’s Global Services Location Index (GSLI). Students from Europe, including some from recent batch of exchange students from the University of Borås, Sweden, have preferred to conduct their research work and internships in Thailand itself. Asia also offers challenges in solving complex development problems. Issues of twenty first century like urbanization; food, water and air issues, and climate change are all present in Asia. Students get a firsthand experience on working on development issues – an opportunity that simply does not exist in many other parts of the world. Today, Thailand is more than a land of Smiles and a haven for expatriates. It is emerging as a global networking hub and the Asian Institute of Technology is situated right there.

Prof. Said Irandoust, a Swedish national is the President of the Asian Institute of Technology. Thai-Swedish Chamber of Commerce l 71

International School System Bangkok is home to approximately nine million Thais and an ever-growing population of expatriates who move to Thailand for business, educational and personal reasons. As the number of expatriates living in Thailand continues to grow, the most important consideration for families moving abroad is often the quality of education on offer.

school from one which is perhaps not so good, becomes increasingly critical. In recognizing what constitutes a suitable international school for your children, we can propose two key tenants: the curriculum required and the schoolâ&#x20AC;&#x2122;s location. Obviously these are not the only factors that differentiate the 99 ISAT schools as each has differing fees, quality of teaching staff, student composition, reputation, level of technology provided in the classrooms, general facilities, activity programmes and academic standards. However, the place to start should be with the curriculum and location and followed up with an examination of the quality of the other factors.

By Mr. Adrian Watts, New International School of Thailand

angkok has a history of providing international education that dates back to the early 1950s and since then a plethora of international schools have been founded to suite the educational needs and budgets of most expats living in Thailand. The International School Association of Thailand (ISAT) was founded in 1994 and serves as a link between ISAT schools and the Ministry of Education, increasingly its role is being extended towards education reform and education legislation. ISAT currently has 99 member schools in Thailand, emphasising the sheer variety in international schools across the country. When parents are confronted with such a list the ability to recognize a good international

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Bangkok offers expatriate families and local Thais a myriad of International schools to choose from, each with their unique curriculum, facilities and approach to international education. Most notable is the number of excellent schoolâ&#x20AC;&#x2122;s whose reputations precede them. As a result of these high quality learning environments, Bangkok managed to established itself as reliable location for expat families to receive high quality education for their children. If one is to ask most expatriates for the top three international schools in the country the majority of responses would most likely highlight The International School of Bangkok (ISB), Bangkok Patana School (BPS) and The New International School of Thailand (NIST). These three schools are recognized for producing students who excel in: the arts, academically, athletically and in their commitment to service and community. Students consistently

graduate from these schools and go on to renowned institutions across the globe. All three of these schools provide the International Baccalaureate (IB) Diploma programme for their graduating class. The IB programme, recognized by over 120 governments world-wide as an entrance qualification for their universities, has an excellent reputation for its effectiveness in equipping students with the skills and knowledge required to become productive, global citizens. In addition, these programs prove to be particularly effective in preparing students for University with students gaining high marks and going on to acclaimed institutions. The IB programme is often a deciding factor for families who recognize the distinct merits of IB. For many other families however, the North American curriculum offered at The International School of Bangkok is preferred. Students here consistently score high marks, many of whom later attend Ivy League schools. Considering the exceptional quality of all three schools and in particular the academic excellence inherent in each school, parents often consider the quality in location.

Donâ&#x20AC;&#x2122;t let anything stop you.

Spica Co., Ltd. is exclusive importer for Husqvarna in Thailand. Spica is providing the full range of Husqvarna Forest and Garden products as well as Husqvarna Construction Products with complete after sales service for all products. Bangkok is notorious for its densely populated city centre and traffic congestion hence location should undoubtedly be a factor in choosing a school for your children if you want to avoid long travel times. The top three schools offer somewhat different benefits, being located in very different areas of the city. NIST holds a central location on Sukhumvit Soi 15 whilst BPS is in Bangna and ISB at Chaeng Wattana. Location has two obvious influences, travel time and space.

Spica Co., Ltd.

891, 897 Pornpailin Business Point, Soi Sukhumvit 77, Onnuch Rd., Suanluang, Bangkok 10250 Tel: 02-742 5200 Fax: 02-742 4418 Email: info@spica-siam.com www.husqvarna.com/th/en & www.spica-siam.com

However, with the top three schools the facilities provided by them all are excellent. Expatriates moving to Thailand are thus fortunate enough to be able to choose from three good schools, each with excellent curriculum that consistently produce academic excellence, and each with its own appeal in regards to location. Finally expatriates must narrow their decision down to select a single school, in light of todayâ&#x20AC;&#x2122;s need for technology skills, the technological advancements of each school may prove the deciding factor. Does the school offer its students state-of-the-art technology, encourage innovation and lead by example? Laptop programmes, smart boards, projectors in each class room, expatriate parents moving to Thailand can and should set their expectations high when looking to choose the very best education for their children.

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Thai-Swedish Chamber of Commerce l 73

Swedish School in Thailand The first Swedish school in Thailand was established in 2004 on the island of Koh Lanta. Today there are a number of Swedish schools for families staying in Thailand for a period of 4 weeks up to a full school year, or even more. By Mr. Patric Gunnarsson

he school in Koh Lanta also holds classes for Danish students and some of the other schools offer a place to Finnish/ Swedish students or students from Norway. Most schools are embedded in a beautiful surrounding, often close to the ocean were they use the beach for sports or outdoor days.

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Most of the schools follow the Swedish curriculum, Lgr-11, which is based on an individual development plan for each student. The Swedish schools operating in Thailand often holds a high quality in regards of teaching, amount of students in each class and staff. Usually the schools only hire educated Swedish teachers with several years of experience. The amount of students in each class varies between the schools but in general they work with smaller groups, app. 10 students in each class. This enables individual teaching and a close relationship between the student and the teacher. Besides the “traditional teaching” the schools also often offers basic lessons in the Thai language, makes excursions to exiting and interesting places and introduces the students to knowledge in Thai traditions. This could mean anything from visiting a temple to Thai cooking or elephant tracking. The goal is to increase the student’s awareness of diversity and understanding for different cultures.

Most of the schools offer the service of school (1st-9th grade) and preschool (6 years old), the staff in the preschool is often educated preschool staff with a number of years in experience. Some of the schools also offer families the service of kindergarten, 3 years and older. The quality of kindergarten teachers between the schools varies but some schools focuses on hiring educated and experienced staff from Sweden, usually preschool teachers. As for the school the classes normally consists of a small number of children in order to allow and enable a natural and comfortable relationship between the teacher and child. To be able to take a break from the hectic life at home and move, temporary or for a longer period of time, together with your family to a beautiful tropical part of the world has proven to be very appreciated since quality of schools and teaching was introduced via Sanuk, the first Swedish school of Thailand.

FAQ´s Do all students get allowance from their home school to leave for Thailand? Yes, most schools give allowance for a longer stay in Thailand if the student receives education in a Swedish school. Absence request needs to be handed in to the principal as usual together with information on how the student´s education is going to be handled during the absence. Most of the school s in Sweden is aware of the fact that most Swedish schools in Thailand holds a high quality of teaching and that they have a good reputation. If the home school has thoughts or questions there usually is a lot of information to be found on the Swedish school of Thailand´s webpage and the principal or teacher are always welcome to give the Swedish school in Thailand a call in order to get the information they need.

What preparations need to be handled by the home school prior a trip to Thailand? Student´s staying for a shorter period of time than one semester brings their own school material and planning from the teacher of each subject with them from their home school. The teachers of the Swedish school in Thailand communicate with the teachers of the home school when necessary and needed. At the end of school in Thailand the student receives a written judgment that they bring back to the teacher of the home school. Students staying for a longer period of time than one semester usually receive school material in the school in Thailand and the teacher on sight is also responsible for the planning within each subject.

Does the Swedish school in Thailand set grades? No, for the students that are planning to stay in Thailand for a longer period of time the planning and grades are handled thru Sofia distans, a Swedish distance education, and the student receives guidance and support from

the Swedish school in Thailand. Students that are in school for a shorter period of time receives a written judgment in each subject which supports the teacher in the home school when setting grades.

Does it cost anything to attend a Swedish school in Thailand? Yes, all schools in Thailand are being financed thru a tuition fee that is set by student and week. Today, a few Swedish county´s offer to leave a contribution for the school tuition fee, usually the demand then is that the student stay´s for a semester or more. It is worth contacting your home county to ask if there is a possibility to receive support with the tuition fees. The tuition fees differentiates between the schools in Thailand and this is due to different sizes of classes, the experience of the teachers, the facilities and the school’s location and easy access.

Swedish school in Thailand meet for a starting conversation. Because of this it is good to plan for an arrival in Thailand a couple of days prior to the students first day of school. In this starting conversation you go thru any questions and expectations that you might have and you go thru the planning that the teacher in the home school made for the student. You will also receive a schedule and information about how a week in the school will be. For younger students you will discuss how you´ll introduce the child to his/ hers new class in the first couple of days of school. It´s of course important that the student feels comfortable and safe in this new environment and the teachers are usually very used and experienced in handling this. First day of school, usually a Monday, all new students are greeted welcome. Often there are a number of new students each Monday, especially during high season, and the teachers therefore focus and work very hard with the group in order to make everybody feel welcome. Since every student in a sense is a visitor to the Swedish school in Thailand and knows how it feels to have the first day of school they are very good at taking care of the new arrived students in order to make them feel welcome and comfortable in the group.

Do you need to apply early to a Swedish school in Thailand? Yes, especially if you are planning to attend the school during high season (January to April). During this time of year the school and preschool usually get fully booked early, especially the small schools. It is wise to make a reservation 8-12 month in advance if possible. During the low season (August to December) most schools, if open, can offer a student a place with shorter notice.

What happens when you arrive at the school or preschool in Thailand? Before the students first day in school the student, parents and responsible teacher/ preschool teacher in the

Thai-Swedish Chamber of Commerce l 75

Black Mountain

he Black Mountain Golf Club is inspired by its beautiful landscape, featuring huge valleys surrounded by jutting mountains with large black rocks protruding from their faces, lent itself well to the name Black Mountain. Overlooking the course, Black Mountain has created 15 stunning hideaway luxurious pool villas, 76 spacious condominiums, all boasting outstanding views over the surrounding valley and golf course. In addition, the new 57 private pool villas

recently constructed are the perfect home where luxury meets tranquillity. The Black Mountain Luxury Condominiums, featuring incomparable contemporary architecture bordered by a lush nature preserve with spectacular views of the Black Mountain Golf Course. The design concept is inspired by the Hua Hin Charm as being the ultimate getaway. The 5 storey condominiums feature 76 units from 143 â&#x20AC;&#x201C; 317 square meters consisting of 3 unit types from 2 bedrooms, 4 bedrooms and the penthouse. Adorned with modern contemporary decoration in warm tone, each unit offers the ultimate luxurious privacy living and is smartly designed to utilize available space, open to the spacious balcony and the panoramic view of the golf course. The private pool villas with the size of 136 and 155 square meters have been created to anticipate the needs of couples and families travelling together by inviting them to experience the concept of tropical living in the

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luxury lifestyle. Each villa is set within a private modern style compound featuring a swimming pool and other necessary home facilities. All villa categories have an integrated lounge, kitchen and dining environment designed to incorporate a tasteful contemporary decor with balcony and pool view beneath a traditional Thai roof structure. The upcoming family attraction which include 9 hole par 3 Course, golf academy, fitness center, span, gym, Swimming pool, water park, wakeboard, Adventure golf, Tennis, Paddle Tennis, Volley ball, Boule, Pool, Table tennis, Horse riding (December 2012), Wellness center and Yoga (December 2012), Hotel (December 2012). With the spectacular scenery and generous facilities Black Mountain have attracted those who are looking for luxury golf residence as their home away from home. Including some of Europeâ&#x20AC;&#x2122;s top golfers to become Black Mountain members and home owners like Johan Edfors, Mikko Ilonen, Pelle Edberg, Rikard Karlberg, and Simon Yates.

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Buying a car in Thailand Given Thailand’s amazing tourist destinations, along with the many activities to do and the exotic culture and food to enjoy, having your own car will certainly help you get more out of your stay in this beautiful country. By Mrs. Chantana Vataranomya, President of Volvo Car Thailand

es, there is always more to life if you can easily go to any place that you choose to go. That is why to most people who are first-time car buyers, driving your own car does not only make a strong personal statement that you “have arrived”; it also allows you to leave easily and, well… go places! As exciting as it sounds, shopping around for a car is also a daunting task. Are you buying a new or used car? How much can you afford? Then, is it for family use or for personal gratification? What brand? Which type? What safety features are available? What type of fuel? The list seems endless… and we are just getting started. Later on, after having tackled these initial concerns, you will be facing some other requirements that you need to carefully put your hands on. Choose one for the environment Like in many countries, Thailand also offers many fuel options – benzene, gasohol, diesel and compressed natural gas (CNG). CNG is, by far, the cheapest but finding a CNG service station and waiting in long queues to have your tank filled can sometimes become a bit of an annoyance. Benzene, priced at approximately 40 plus Baht per liter, is the most expensive while diesel price is about 25% less and gasohol, especially E85, is only half of the benzene price. It is, therefore, up to you to choose the right type of vehicle engine that best suits your budget but here’s a friendly reminder: try to be good to the 78 l Thai Property Guide

environment too and always consider sustainability.

Safety a priority Driving on the busy roads of Bangkok can be quite a big challenge as hundreds of motorcycles race through narrow spaces during traffic hours. When buying a car in Thailand, it is wise for you to also consider safety and drivers’ assist features as the top priorities. There are actually car models today that are equipped with efficient and innovative safety features such as rear parking camera to assist you when parking and the one that allows the driver to see clearly other approaching cars in the blind spot, which is very useful when you are driving on a busy roads with tens of motorcycles near you. Yes, innovative car manufacturers have already come up with such amazing technologies no one is going to give you a quizzical look when you ask about these features, so don’t worry. Then you need to study well the information and choose the ones that best fit your needs.

Car ownership I know it all sounds so easy, but for a foreigner trying to buy a car in Thailand it takes a longer stretch than the usual drill. First, let us go down to the basic requirements. In Thailand, nonresident foreigners cannot normally own a car. For a foreign expatriate to own a car in Thailand, one needs a work permit or a proof of residence issued by the Immigration Office. You will need to submit all the document to the Department of Land Transport, which can be easily handled by your dealer, in order to get a car registration and license plate.

Let you fingers do the walking

Now, the license plate can be fun or, in many case, confusing. There are as many as seven color schemes for the license plates. For home use cars, the plates are white but with three different colors for the letters and numbers – black number for a 7-seater, blue number for over-7-seater and green number for a home-own pickup. Commercial vehicles will carry yellow plates with three different colors for the letters and digits to identify the type of vehicles, such as taxi and cargo transport.

For someone who is yet to buy a car, it is but practical to “let your fingers do the walking” as you do not yet have the “wheels” to go around. In this age and time, without question, the Internet is by far one of the most effective tools in hunting for the kind of car that you are looking for.

There are more fancy license plates too. These white plates with black numbers and graphic design and hologram effect in the background are special plates available through auction held by the Department of Land Transport. They carry “beautiful” or “auspicious” numbers like 9999.

Advertisements exist for several reasons, chief of which is to highlight the brand’s strong selling points. So go and watch as many as you can and be your own decision-maker. Go to YouTube and, consult car magazines and search for the latest commercials of the brand of car you have in mind. You may also want to look at Classified Section in daily newspapers as there are lots of advertisements there. After having made the decision and exploring all the options you need, then you’ll be able to visit a dealership, ready to ask more questions, and even for a test drive. In addition to using the Internet to research the car you want to buy, you can also use it to figure out your finance options.

There is another caution. If you buy a brand new car, you will get a red-color temporary license plate. According to Thai law, a car with red temporary plate is not allowed to be used after sun sets. That means it such new car can be used only during daytime. It is

recommended to avoid driving a car with red license plate at night until you have obtained the white plate which normally takes a month or so.

Choose a trusted dealer In addition to the car itself, pre-sales and after-sales services should be taken into consideration. Although there are many car repair shops around, trusted dealerships can still be your saving grace thanks to their quality and service standards. Next, consider their maintenance service quality and convenience, warranty and other special services like roadside assistance. For expatriates, you may also consider the brands that have English-speaking staff to help you around. That will give you full peace of mind! First of all, your dealer will ask you to pay for the reservation which can range from 5,000 to tens of thousands Baht, depending on each brand’s policy. On the purchase agreement signing date, you will then have to choose between paying cash or credit. For credit, you will have to discuss with your dealer the deposit which is generally 15-20% of the total price, interest rate, and installment payment terms, leasing company, plate registration fee, red plate deposit fee, insurance, etc.

Insurance and tax

mobile units in some superstores, post office, and car dealerships or agents.

Every car must have the license plate registration sticker on the windshield and is renewed annually when you pay tax. You also need a low-end mandatory Thai insurance required by the State which is costing about 1,600 Baht. If you need more protection or buy a car on installment terms, you have to buy first-class insurance policy covering the car’s occupants, damaged property, your own vehicle and adequate liability. This First Class policy usually runs about 20,000-60,000Thai Baht for the first year, depending on your car engine replacement and price. If you have no claims, it is reduced by 20% the second year and again by 20% for the third. Make sure both insurance and registration are current, both year and date or you will receive fines! The registration is usually payable at the Department of Land Transport, its

Once you have made the decision, prepared all the documents needed, and paid at least the deposit required for your car, then it’s time to wait for your dealership to get your car ready. On the delivery date, it’s quite important for you to check and ensure that there are no flaws and that every system is working well. Check thoroughly before you drive it home.

Getting a driving license If you already have an international driving license, use it. If you don’t, you will have to get one from the Department of Land Transport. Bring your passport with non-immigrant visa, work permit, proof of residence issued by the Immigration Office and a photo, then fill up the form, then take a written examination and a driving test. If you pass all the tests, the driving license will be ready in no time. If not, you will have to come back and redo the test. Driving license ready, car ready, now it’s time for you to start the engine and enjoy life on the road and the fun of living in Thailand. If Volvo is in your shopping list, click to www.volvocars.co.th or call 0 2305 4499.

Thai-Swedish Chamber of Commerce l 79

The international channel of Sveriges Television SVT WORLD is the international channel of the Swedish public service broadcaster Sveriges Television (SVT). The programmes are transmitted via the satellite Eurobird 9A, (9 ۫ East, frequency 11.919 MHz) in Europe, North Africa & West Asia and in Finland terrestrially and in cable nets. In the USA and Canada SVT WORLD is distributed encrypted via IPTV (digital TV via broadband). By SVT World Stockholm

Central and East Asia In this area, Thailand included, the channel is distributed via the Thaicom 5 satellite’s global covering (78,5 ۫ East, frequency 3.640 MHz). The satellite broadcasts are encrypted in Viaccess 2.6. The necessary equipment for satellite reception is a satellite dish with a microwave head of type “C-band” for Thaicom 5. A receiver with embedded Viaccess 2.6 encryption that can receive digital transmissions of MPEG2/ DVB-standard and is able to handle teletext is also necessary. Most of the high-quality receivers in Thailand are imported from South Korea. To make all this equipment function properly an authorized smart card from ConNova´s customer service is a must. If the receiver has a Common Interface slot and no embedded Viaccess encryption, a CA module (CAM) for Viaccess, version 1,08 or higher is needed.

How it’s done in North America We would like to mention what kind of equipment is needed in North America simply because we believe

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that IPTV (digital TV via broadband) will soon be introduced in Thailand as well. A broadband connection with minimum speed of 1 Mbit/s (2 Mbit/s is recommended) and a special set top box for SVT WORLD which is purchased from ConNova’s customer service the same used in USA and Canada for time being.

Who can get access Subscriptions can be held by private households and hotels outside the Nordic countries, as well as by embassies, churches, schools and companies. The fee for 1 year subscription for satellite private households is SEK 1.358 and subscription fee for IPTV households in North America for the same period is USD 19,50/month. Local VAT or Tax might be added. For the other type of subscriptions there is a special price list.

What’s on show SVT WORLD broadcasts mainly Swedish-produced programmes from all domestic SVT channels. Most of the foreign productions can

not be broadcast outside of Sweden due to copyright reasons. Not all Swedish programmes can be shown on SVT WORLD either. For example films from Svensk Filmindustri and Sandrews and some sports events, as the rights to these are owned by foreign companies. The aim in planning the programming is to give SVT WORLD viewers the chance to see all programmes SVT has the right to broadcast outside Sweden. The basic rule is that the programmes have to be shown at the same time as they are broadcast in Sweden, which is in Central European Time (CET).

Some other options There is also a limited possibility to delay (time shift) the showing of programmes for 48 hours from broadcast in Sweden to enable the broadcasting of programmes which would otherwise not be shown on SVT WORLD. There are 24 time zones in SVT WORLD’s transmission area. Repeats during day- and night time CET allow viewers to watch programmes in their local primetime. In addition to this, a PVR-receiver or DVD-recorder might be useful.

Programme information TV schedules and programme information can be found on svt.se/svtworld and are available in local time in all 24 time zones. SVT WORLD broadcasts 24/7. Viewers also have access to SVT’s teletext with approx. 800 text-tvpages (incl. the Stockholm Stock Exchange). Furthermore two radio stations are included in the service: Radio Sweden and SR P4 with sports, entertainment and local broadcasts. Please note that SVT World consist of only one channel and is a mix of programmes from SVT 1 and SVT 2.

Other services via IPTV As teletext does not work in North America news flashes from SVT´s teletext are broadcast on a separate channel with short Rapport news every 30 minutes at 19.00 – 00.00 EST. This might also be available in Thailand in the near future.

Subscription SVT WORLD’s customer service ConNova is responsible for handling all subscriptions and technical support. All necessary information about how to get SVT World installed in Thailand is on www.connova.se Regarding subscriptions and technical support Regarding programmes ConNova AB SVT World Box 304 SE-105 10 Stockholm SE-591 24 Motala Phone: +46 8 784 25 00 Phone: +46 141 20 39 10 Fax: +46 8 665 90 39 Fax: +46 141 20 39 11 svtworld@svt.se svtworld@connova.se svt.se/svtworld www.connova.se

“Let us help you manage your business professionally and cost effectively” Our professional services include: • Accounting and Tax • Outsourcing Solutions We support foreign investors and local companies in Thailand with a comprehensive range of outsourced accounting, tax, HR payroll, and other non-core activities tailored to fit with your business needs. Sharpener Accounting and Tax 54 Level 8, Suite 3802, BB Building, Sukhumvit 21 (Asoke) Klongtoey Nua, Wattana Bangkok 10110, Thailand T. M. E. W.

+662 258 5422 +668 1866 8200 veeruthai@sharpenerat.com www.sharpenerat.com

Thai-Swedish Chamber of Commerce l 81

Building a Swimming Pool Living in Thailand, there are a few things that Scandinavians must have. One of them is their own swimming pool. By Thilina Ponnamperuma, About.com

f your new home does not have a swimming pool already, chances are you will be looking for a professional pool company. The assumption would be that they know how to provide the best quality and will be are used to compete with other providers in the market, so their prices will most likely be in the higher end of the market, but still competitive. Still, you are a bit nervous, because you have already heard the horror stories of people before you, who thought this was going to be easy. Before you have dozens of contractors scheduled to come and give you a free estimate for your swimming pool construction, read the following ten tips about hiring a contractor to build a swimming pool at your home. Heeding this simple advice could save you a great deal of aggravation, not to mention money, in the long run. The result of using inexperienced people, non swimming pool companies and cheap options nearly always results in problems and extra costs later on. It costs far more to correct and solve bad workmanship and inexperienced build works than it does, to do it correctly the first time.

How Much Does a Pool Cost? This depends so much on your choices, design, size and so on. Swimming pools vary tremendously in price and as in the construction of a house, it is impossible to quote prices without knowing what it is the client wants. For any provider to provide an accurate quotation we have to know size, materials chosen for finish, systems required, quantities of materials and all the many pieces of information required to work out the costs. A successfully swimming pool in Thailand starts with the correct design and construction. This is of paramount importance to protect you and to ensure that you enjoy your pool for many years to come. To safe guard against, leaks, improper filtration systems and inadequate construction you need to talk to experienced personnel. 82 l Thai Property Guide

Beware of any swimming pool contractor who requires a substantial down payment, or who wants high percentages of the contract paid before much work has been done.

What is the best pool size? Recreational swimming pool users, particularly children, don’t require great depth and it is adequate to provide a sloped floor which goes from a minimum depth of 36 inches to a maximum of 4 or 5 feet. A purely recreational pool also does not need to be any particular shape, so you can pick a shape to complement your lot. On the other hand, athletic lap swimmers need a long and narrow space with at least 4-5 feet depth throughout, to avoid touching the bottom while swimming, and to ensure that turns at the pool’s ends can be executed safely. For competitive swimmers in training, providing a length of 25 yards or 25 meters will enable them to develop a swimming style usable in competition. It is possible to accommodate both recreational and athletic needs by having a hybrid shape and depth, like an “L” shaped pool, where the shallow, short leg is large enough for fun and games while the longer leg is designed for lap swimmers. Further options to consider are provision of a diving area or water slide, and a wading area for small children. While diving boards and water slides are popular there is

considerable debate regarding the required depth and diving well size for optimal safety. Consider the depth factor carefully with your swimming pool contractor. You may choose to forgo the idea altogether to avoid tempting untrained people, particularly children, from participating in these inherently risky activities. A wading pool, on the other hand, is relatively safe, but small kids will quickly outgrow it and join the rest of the family in the main pool. A reasonable alternative is to build a separate wading pool that can later be converted into a spa.

Here are some more good advice: 1. Shop like you are buying a car Swimming pools are custom construction projects and are built by many individual trades and pool contractors with different standards. All pools are not built the same, unlike an automobile which is manufactured in a factory under controlled conditions. With a swimming pool much of what you do not see will impact the cost of pool ownership. 2. Ask more questions. Do not assume every builder is going to give you an education about constructing a pool or is capable of giving you one, for that matter. The more you know and understand about swimming pool construction the better buyer you will ultimately be. This helps you and your pool contractor. Do your homework.

3. Paralysis by analysis This is when someone gets 10-15 or more estimates for swimming pool construction and then can’t make a decision because they have become so confused. Do your due diligence and get 3 or 4 estimates from reputable swimming pool companies. Then make your decision and go with it.

6. When is it cheapest? Don’t assume swimming pools cost are less in the off season. Increases in steel prices, concrete shortages, gas increases, and insurance premium hikes play each their part. Pools don’t get cheaper as time goes on; building a swimming pool will never be less expensive than it is today.

4. Check the contractor What makes them qualified to build swimming pools? Consider the saying, “If you think the cost of a Professional is expensive, wait until you hire an Amateur.”

7. Read the contracts Make sure you understand what you are getting into. Read the contract - in an English translation. If you don’t understand it, ask. Make sure everything is in writing. It is very difficult to cancel a contract with many contractors after the obligatory 3-day rescission period. The contract should protect you AND the contractor.

5. Shopping based on price Usually if a deal seems too good to be true, it is! If you shop for price alone you are destined to be disappointed. Bottom line: you usually get what you pay for. Shopping over the phone for a pool It is impossible and a waste of time. Visit the swimming pool builder or have them come to your home to provide you with an estimate. Visiting a contractor’s place of business will tell you a lot about the type of business it is.

8. Look beyond the good looks It is a mistake to focus on the aesthetics of a pool and not look into the mechanicals of the pool building project. Hydraulic design, flow rates, pipe size, pump and filter types, chemical management systems, and many other factors will make a difference in the ability of your swimming pool to stay clean and sanitized.

9. Think about safety Swimming pools can be a great place to recreate, exercise, and just enjoy the outdoors. They can also be dangerous. Ask the local municipality what is required regarding barriers and fencing. Make sure you protect the ones you care for, and protect the ones that cannot protect themselves. 10. Make enough space When drawing up swim pool building plans, make sure to include extra space around the pool for a deck or paved area surrounding all sides of the pool. The poolside area provides easy access to the pool (which is particularly important from a water safety perspective), minimizes the amount of dirt entering the water and catches overspills which would otherwise cause the garden to becoming water logged. As a rule of thumb, the total poolside area should be about equal to the pool, and should be at least 5-8 feet wide. Remember to include a safety fence around the outside of the patio, too.

Home is the most important place in the world. Wherever you are. A better everyday life at home 38 Moo 6 Bangna-Trad Rd., Km.8 Bangkaew, Bangplee, Samutprakarn 10540 Phone: +66 2 708 7999 www.IKEA.co.th

Thai-Swedish Chamber of Commerce l 83

Golfing in Thailand Back in 1924, a Scottish railway engineer by the name of O.A. Robins designed Thailand’s first golf course, Royal Hua Hin Golf Club, in a sleepy fishing village south of the nation’s capital, Bangkok.

By Ian Lenton

ver the years that have gone by since then, golf has been embraced by both local Thai’s and visiting tourists and with the development of over 200 courses players can enjoy a full range of golfing experiences. With the growth of the game locally, Thailand has produced some high quality professional golfers. With names such as Prayad Marksaeng and Thongchai Jaidee featuring at the top of the Asian Professional golf tour on a regular basis. Both golfers have enjoyed success in Asia and have competed well in Europe and in the USA.

Due to the warm climate of Thailand, golf can be enjoyed throughout the year. Being situated in the Tropics, Thailand’s seasons are broken down into only two, Dry Season and Wet Season. The self-explanatory names provide a good indication of what to expect in terms of weather, with the dry season giving golfers the optimum advantage to play. Contrary to what you would think, the wet season is not as bad as it sounds. While the wet season does experience monsoonal rain, these can sometimes last for short periods of time and with many courses constructed with modern drainage systems that clear laying water quickly, opportunities to play golf are on a daily basis. In the hotter months, local golfers can be seen walking courses carrying an umbrella over head. This is not an indication of impending rain, but a system to both help keep themselves cool and, as with many Asian countries, as fairer skin colour is preferred helps to keep the sun off their skin. It is recommended for all golfers to apply sun block and drink plenty of liquids before, during and after each round to remain hydrated and avoid sunburns. Unlike many western countries, all golf courses in Thailand provide female caddies for each golfer. In fact, it’s compulsory to take on a caddy for your round and is usually quite inexpensive. The caddies go through training and lessons with some becoming quite good golfers themselves. Apart from the benefits of not having to lug your own clubs around, these knowledgeable caddies will provide you with

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putting lines, hole distances and give you extremely good local knowledge to help you with your game.

The recently opened cable water ski park will keep the kids happy on the water all day long and the currently under construction water park with slides and fun water activities is another great days activity for the family. There’s even a sports centre with tennis, boules and mini golf and for those tired soles the luxury spa will pamper those aches and panes.

Most caddies come from local villages surrounding the courses and like to practice their English with visiting golfers. Remember to chat politely with them and trust their tips. It is also very common practice to tip your caddie at the end of a round with some courses also providing a rating system to help give the club feedback on caddie performance. Most, if not all golf clubs in Thailand have quality hire equipment available at reasonable rates. Some courses change their rental gear yearly, providing their golfers with the most up to date equipment available. Electric golf carts are also readily available at most courses.

For those golfers searching for a more permanent residence as a base to play golf, Thailand has a huge range of golf course property available for purchase. One such course is the extremely popular Black Mountain Golf Club in Hua Hin.

Many of the more up-market resort courses offer luxury accommodation and facilities such as spa’s, sports centers and practice ranges. Most of the golf courses around the country are established in Bangkok and all the other major tourist destinations such as Chiang Mai in the north, Hua Hin and Pattaya just south of Bangkok and Phuket Island to the south of the country.

Black Mountain has gained a solid reputation as not only Thailand’s best championship golf course, but also as a top three Asia Pacific Course. With careful planning going into the development of Black Mountain the estate offers some amazing course-side villas and condominiums as well as a new development that offers midrange homes at very affordable prices.

While distances may seem great, with several budget airlines travelling throughout Thailand, playing golf throughout the country is easily accessible and quite affordable with the trip from Bangkok to Phuket only just over an hour and costing only around US$100.

With so many golf courses having set high standards throughout Thailand in terms of quality courses, Black Mountain has established itself at the peak by adding a long list of off course facilities to allow not only a fun day golfing but allowing the whole family to enjoy themselves.

General Manager of Black Mountain, Mr Harald Elisson commented, “We are very pleased with the progress of the Black Mountain Golf Club, both in terms of it’s outstanding reputation as a golf course, and the popularity of the property project. We hope to continue to contribute with the success of the game of golf in Thailand for many years to come”. For regular golfers in Thailand, memberships to clubs are readily available. Pricing varies from club to club and region to region with the popular tourist island of Phuket being the most expensive. With memberships, golfers can enjoy reduced or free green fee’s and access to the club’s facilities such as fine dining restaurants, spa rooms, practice facilities, plus other great benefits. Contact the pro shop of your preferred club for more information on memberships. Golf and Thailand seem to go hand in hand, with great weather, world-class golfing facilities and the warm smiles of the Thai people, there simply is no better place for a round of golf or two.

Thai-Swedish Chamber of Commerce l 85

Internet in Thailand By Håkan Alm

hailand is in comparison to European and Northern American countries in terms of internet penetration, available bandwidth and service quality not nearly as strong. There is also a huge difference between the local Thai internet speed (i.e. when the server accesses is located in Thailand) and international speed, local bandwidth was over 6 times faster that international in 2009 according to Wikipedia.org . For example a web page in Europe will load relatively slow compared to a web page in Thailand.

General stats This 2009 statistics from World Bank illustrates that roughly 25-30% of Thailand’s population are internet users.

Compared to Sweden’s over 90% of total popoluation.

Internet around Thailand There are numerous Internet Service Providers (ISPs) they vary much in packages offered and in the quality.

So which provider is best? There is no ‘one size fits all’ solution. I strongly recommend you to ask around among friends and neighbours to see what gives you the best value in your area. Not all ISPs are available in all parts of Thailand. Above is a short summary of packages available around Thailand taken from the ISP’s respective web pages in July 2011, we are unable to guarantee the accuracy and this info should be used as an overview. 3G – mobile broadband To date Thailand has not approved the licensing for 3G and 4G mobile broadband. True and AIS have, however, started to implement it around Bangkok anyway.

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Skype solutions Besides being a free service to call from PC to PC, Skype (Skype Out) also gives the opportunity to make phone calls to regular phones. Most landlines (not mobile phones) cost less than € 19 öre / minute (www.skype.com/intl/ en/prices/payg-rates ). This means a one hour phone call will cost only € 11,40 SEK. There are also packages with unlimited calling to landlines in most countries for €100 SEK /month / country (www.skype.com/intl/en/ prices/pay-monthly/ ). Another nice feature in Skype is Skype-in, which will give you a local phone number in for example London or Stockholm allowing people to call you at local rates and you can pick up the call in Thailand or anywhere else in the world. If you have a smartphone you can download the Skype app to place and receive high quality phone calls directly on the mobile. One phone that works well for this is Samsung Galaxy Mini priced at around Bt. 5 000. You need to connect the phone to a wireless internet connection in order to do this. Håkan Alm Founder, Vision House Limited (www.VisionHouse.co.th) Doctoral Candidate, University of Borås (www.HB.se) and Asian Institute of Technology www.AIT.Asia Lecturer, University of Borås

Dental treatment in Thailand For more than ten years, Iâ&#x20AC;&#x2122;ve been working as a dentist amidst the city of Bangkok. What is obvious to me is how foreign touristsâ&#x20AC;&#x2122; perception of Thai dental services changes throughout these years. Sometime ago, there were few tourists that came to Thailand with a dentist in mind. Most of these customers entered a dental clinic on the spur of the moment and usually asked for only simple services which can be done in a single visit such as scaling, cleaning or tooth whitening. By Dr. Adisorn Hanworawong, Mos Dental Clinic

owever, there are few who know that many present foreigners visit Thailand with dental services as their main purpose. Many of these services are more complicated and need wellplanned treatment courses whether they are dental prosthesis, surgery or dental implant which is now popular throughout the globe as they look very much like natural teeth.

comparing to other countries. This is possible because the education of dentistry is supported by Thai government. Besides cheap costs, Thai dentists are known for their delicate works, especially porcelain, which utilize advanced technologies and excellent service minds that are always eager to fulfill customersâ&#x20AC;&#x2122; needs. The patrons are, as a result, usually very satisfied.

The treatments are mostly discussed and planned to a certain degree with a dentist through e-mails before the trip can be finalized to fit in with the procedures. Most of dental clinics in Bangkok are well-equipped with modern instruments and up to the standard thanks to the laws involving medical services which require the clinics to have their licenses reevaluated every year. As for dentists, they to experience at least six years of dental school before optionally proceed to be trained as specialists for about two or three years.

For tourists who seek dental treatments in Thailand, simple task such as teeth cleaning may not need to be planned beforehand and can be done by a clinic in the vicinity. But for treatments which require time and specialists, it is wise to directly discuss the matter with a dentist to analyze the fee and time need for the procedures and it would be better if the clinic is close to your residence or easy to travel to. Sometimes, complicated dental works may need more than one dental specialist. Prices and locations of various clinics should be researched from the websites such as www.sukumwitdentist.com. For more information, please inquire www.facebook.com/Dr.adisorn or www.adisornh@gmail.com.

Dentists residing clinics around the Bangkok are, therefore, knowledgeable and capable in their line of services despite lower cost

Thai-Swedish Chamber of Commerce l 87

The quick guide to ... Enhancing your favourite coffee experience Brewing an espresso is like conducting an election – everyone has an opinion on what makes a good cuppa. Convenient functions, stylish design and the perfect brew ideal for coffee connoisseur. By Sutti Manokitjarunman, Managing Director and General Manager, Electrolux Thailand Co., Ltd.

f the tantalizing aroma of coffee is the perfect way to ignite your senses, we created just what you need. The Expresso Maker is your quintessential partner that makes the perfect aromatic cup of coffee. With professional pre-brewing function to ensure you’ll enjoy every single brew that is as aromatic as the last.

Preparing for a good cuppa Photo Credit: Darren Robertson

Like any great experience, the preparation of a good cup of espresso starts even before the brewing process. While opinions may differ depending on the barista you ask, coffee beans meant for espressos are typically a dark roast, although the degree of roasting can differ.

Some examples of roasts used for espressos:

The right roast is important in determining the flavour of your espresso 88 l Thai Property Guide

• Light roast: As its name suggests, light roast beans spend the least time in roasting, retaining more acidity and a toasted grain taste. Not usually used in espresso.. • Medium-dark roast: The lightest roast generally used for espresso, the medium-dark roast is less acidic and sweeter than lighter roasts.

The Eloisa ECM3100 drip brewing machine makes up to 15 cups of coffee while still retaining the bean’s natural flavours

• Dark Roast: Almost black in colour, dark roast beans can appear oily as the roasting process brings oils to the surface. The roasting process is more evident in the coffee, creating a smoky-sweet, even burnt taste. The best coffee is made from beans roasted the day before brewing. The average shelf life of roasted beans is just two weeks, after which the taste and aroma can quickly decline. The beans should also be kept in a dark, cool place away from sunlight, but not in the refrigerator. Light roasted beans are best used with drip brew coffee machines (or filter coffee machines) for normal coffees. The light roast tends to retain natural flavours that provide hints to the origin of the bean. Coffee makers such as the Electrolux Eloisa series make brewing such coffee a convenient experience. They allow users to automatically brew large amounts for friends and family – up to 15 cups in the case of the ECM3100, while still retaining the flavour of the beans used. Before making the coffee, the beans should ideally be grinded by a burr grinder, a type of grinder that uses a burr to crush whole beans between a stationary disk and a rotating grinding wheel. Such grinders typically produce more consistent, finer particles and

be drunk at the peak of its freshness in one gulp, giving the lucky imbiber maximum enjoyment of the coffee’s rich flavours. Over the years, creative baristas have found creative ways to serve their espressos, including:

less chance of overheating the beans than a propeller-based coffee grinder.

Things to note while brewing

Affogato: Italian for drowned, this drink involves submerging a scoop of gelato under a shot of espresso.

If your machine doesn’t do it for you, pre-warm the espresso machine’s portafilter by running it under hot water. A cold portafilter can lower the brewing temperature and affect the extraction of the drink.

Café Bombon: Adapted into Kopi Susu Panas in Malaysia and Kafe Ron in Thailand, this drink mixes espresso and condensed milk in an 1:1 ratio.

The time taken to brew an espresso is typically 22 seconds, but may vary depending on different factors such as your machine. It may take some experience to determine the perfect time to end the extraction to avoid over or under-extracting the espresso shot. The former results in a weaker flavour while the latter may cause the espresso to be too bitter.

Caffe Medici: A double shot of espresso poured over chocolate syrup and orange or lemon peel, topped with whipped cream. Corretto: Meaning “corrected”, the Italians certainly had the right idea in correcting their morning espressos with grappa or brandy.

The perfect way to drink

Espresso Romano: A shot of espresso with a small rind of lemon and sugar.

The resulting espresso should not be allowed to sit more than 30 seconds as the full taste will begin to degrade due to cooling and oxidation. Hence, the Italians believe the best way to savour a fine drink like an espresso is to treat it like beer. The shot should

Experience innovative products at Electrolux Home Inspirations, Electrolux Building, New Petchburi Road, leading department stores, and dealers nationwide. For more information, please contact our Customer Care Tel. 02-725-9000, 24 hrs, 7 days a week.

Stay in touch with Sweden – SVT World SVT World, the international channel of the Swedish public service TV company, Sveriges Television, offers mainly Swedish-produced programmes worldwide. News. Music, sport & nature. Children’s programmes. Drama, debate and culture. Plus teletext and two radio channels: Radio Sweden and SR P4, 24 hours a day. SVT World is distributed via the Thaicom 5 satellite’s global beam coverage (78,5o East, 3.640 6G, H) and encrypted in Viaccess 2.6. svt.se/svtworld

Contact SVT World Customer Services at: ConNova phone: +46 141 20 39 10 e-mail: svtworld@connova.se www.connova.se

Thai-Swedish Chamber of Commerce l 89

Checklists Many of us fall into the trap of believing we can remember every step of a project or everything we'll need for a vacation. Truth be toid, using a checklist may be the smartest thing we can do for ourselves prior to a purchase of a house or a condo unit.

hese checklists are to be used when buying a condo unit or a house in Thailand. It is important to use a checklist for all the houses or condo units of interest as the first step in the buying process. Secondly, when a decision is made for a house or condo unit, a due diligence process must be carried out.

Check list prior buying a condo unit r Get the minutes of the AGMs and the Minutes of the Committee Meetings. r Read The Condo Act: read the Condo Regulations which is a legal document deposited with the Land Office. r The Condo Association will aiso have records of what percentage of units are foreign owned. r Does the Committee meet as specified in the Regulations? r Are the Committee Members approachable and helpful? r Speak with as many non-committee member residents as possible. r Ask for the audited financials. r Ask about major naintenance projects-sewage and drainage, water and filtration, roof, roads, gardens, painting of outside of building and corridors, elevators. r Have the projects planned for the previous year been completed? How about any work in progess? r Is there a Sinking Fund? Is it sufficient? r Is Insurance Coverage enough? r What are the yearly maintenance fees? r Check the security and safety procedures. r Make sure that the security and safety procedures are well known among the staff. r Check that security personnel are smart, courteous and at their stations. r Is there 24 hour coverage by English speaking staff? r Is the building secure or can anyone just walk in and go where they please? r Is the perimeter secure? r Is there CCTV and does it work? r Is the garbage room clean and tidy? How often is garbage collected? r Availability of (IDD) telephone (data) lines and the cost of same. r Availability of cable TV choiceand options for putting up own satellite dish(es). r Cost of metered services-water and eletricity if supplied by building and cost of changing to own meters. r What kind of commonfacilities are available? Is there a charge? r Are facilities open to non-residents? r If there is a view is there the possibility it could be blocked in the future? r Parking spaces are common property and should not be allocated. r How long to wait for an elevator during high season? r How many units are currently unoccupied? r How many units are currently offered for sale or rent? Check other prices. r If the management offers to rent condo's on the owners' behalf, how much do they charge and exactly what service is on offer?

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Check list prior leasing land and buying a house r What is track record of the developing company? r Who is financing the Project? r What is the developing company registered share capital? r Confirm there will be a seperate Sale, Purchase and Maintenance Agreement for the house and ownership will be registered in the name of the purchaser at the relevant authority. r Who is responsible for paying Building and Land Tax? r Indicate what services will be provided. r How much is the monthly or yearly maintenance Service Fee, and how long will the maintenance contract last? r Is the land connected to main utilities sush as water and electricity? r How many kilowatt for the area and for each house? r Is there enough water to cover the area in case of governmental water stop? r How many houses are being built in the Project? Could the view be blocked by new construction? r Ask for track record of the construction company? r What standard will the houses be built? r Can the buyer instruct an independent building surveyor to inspect upon completion? r How many houses in the Project has been sold? r Who will pay the common fees for unsold houses? r Confirm that the Seller will be responsible for payment of withholding and business tax on the transfer date. r What is the payment schedule? How much deposit is payable? r Can the purchaser assign the purchase to a third party before the house is completed? r Is the Project insured?

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Thai Swedish Chamber of Commerce By Peter Bjork, Executive Director TSCC

Introduction

you read about the latest news about Chamber activities and find other useful information. The many useful links provide intelligence within business and trade. Part of the Chamber website will be specifically devoted to featuring the Property Guide and the Second Home Market. We have also a monthly E-News letter sent out to all members.

The Thai Swedish Chamber of Commerce was formed in 1989 and inaugurated by the Swedish King Carl XVI Gustav. Since then many developments of TSCC has taken place and today we are a modern and growing Chamber with 100 + members and 22 years of existence has established ourselves firmly in the international business community in Thailand.

Objectives for TSCC

The Chamber conducts an essential role in the Thai Swedish business and through our membership of the joint foreign Chambers of Commerce in Thailand we identifies businessmen’s problems and opportunities and seeking support in Thai Government policies to address these issues. This includes interaction with for example the Board of Trade, Thai Customs Department, Immigration and Revenue Departments, Board of Investments etc. giving access to top officials in the Thai administration including the Prime Minister.

• TSCC is a membership organization -Therefore everything we do must be based on this. To understand what the Members need and want is crucial. That is why we are now developing Member surveys that will be repeated at least once a year. We are also interacting on our networking events with our members and are listening and discussing new ideas. Any Chamber Strategy is based on improving the benefits of the members

Through an active Chamber Event Committee, we secure interesting guest speakers from the top of Thai administration and political life. Also foreign guest speakers give our Members a constant update on current issues, local as well as global. Through the Chamber members and Network you will get access to information, recourses and support in key business areas for your benefit. Support which otherwise can be difficult to access. As a Chamber Member you will receive future editions of the ‘Property Guide’ free of charge.

• Lobbying – We have many opportunities for lobbying on behalf our members, the most important through the Joint Foreign Chambers of Commerce in Thailand. But sometimes we can also take direct contact with representatives of the Thai Government on different levels, sometimes as high as Ministry level and even the Prime Minister directly. • Networking - We offer various opportunities for networking several times per month. Sometimes they are organized together with the other Nordic Chambers. The main networking events are: • Breakfast Meetings where we invite interesting speakers • Huntsman Pub, we normally have a sponsor who will cater for the first rounds of beverages • Nordic Chambers Networking, can take place in many forms often sponsored • Young Professionals, this is a Nordic Event where we

The Thai-Sweden Review is a combined twice yearly Magazine and Yearbook Directory distributed free to all Members featuring interesting articles about business, trade and life style in both Sweden and Thailand. The Membership Directory provides details of all Members and other useful information. The Chamber website www.swecham. com is an interactive web site where 92 l Thai Property Guide

target young people such as entrepreneurs, trainees, students or other young people coming to Bangkok and Thailand • Assisting members - We assist our members in various ways, mainly giving initial advice, referring to experts in different areas and recommend ‘ways forward’. If necessary we can also organize projects to help in special areas that require more substantial advice.

Established Working Committees The Board works through established Working Committees and Chairman of each Committee is a Board member. The Committees meets regularly to work and develop the Chamber and the benefits for the members. The following committees are established; • Treasury – To work with budgeting, financial forecasts and reports both internally and externally • Events & Membership; To organize and develop all the activities and of course also to find ways to recruit new members • Media, Thai-Swedish Review, Web-site, Newsletter. This is another important committee that deals with all the communication and information to all our members • Property, Property Guide. We have seen a continual rising interest from Swedish citizens to buy a second home in Thailand in recent years. We estimate the number to be at least 20 000 today and more is to come. This group needs support and advice in for example law and taxation Visa regulation and the Chamber are working to find solutions and advice for this group. • Legal & Government. Through our Law firm Vickery & Worachai we offer our members a regularly issued Legal New Letter in English to give information about for example changes in the Thai Law that can have impact on Swedish Citizens, Companies and other organizations in Thailand

Lobbying Lobbying is taken place both indirectly and directly with different stakeholders that is relevant to TSCC; Indirectly through Joint Foreign Chambers of Commerce, Committees • Law Committee, Foreign Business Act, Foreign Employment Act • Property, Leasehold Extension • Employment & Immigration, Business Visa, Work Permits  ICT, 3G • Taxation, Reduction of company taxes • Customs, Penalty clause changed • Tourism, improvements of Tourism Directly with Government and Public Institutions • BOI, Thailand Trade Representative, Board of Trade, Ministries, PM Etc.

The new strategy We live in a rapidly changing world. In the past we, the TSCC have been dominated by Large Swedish Companies with Swedish CEOs. Now we experience a shift towards International, Global Companies with a CEO of any nationality. We can also see that many small Swedish Companies, Swedish Home Owners and Swedish- and Thai Students are coming to Thailand. In order to be at breast with the new times the Chamber and its Board have taken on the new strategy in order to achieve a ‘turnaround process’ of the Chamber. It will be implemented during 2011/12 and continuously improved after that in order to: • Increase Membership & Improve Finance • Add Value for Members • Improve Member Information • Improve Cooperation with Nordic Chambers • Improve Cooperation with Swedish Export Council Identifying new membership groups TSCC have identified several new membership groups. We now are forming out offers targeting each group. As they have their own special

needs we try to tailor our membership offer to each group so that it will be attractive.

will provide essential information to anyone interested in buying property in Thailand e.g. current property market, legal matters, case stories, best practices etc.

Property Owners We will during the second half of 2011 start a Property Club within TSCC and offer membership to everyone that has bought a property or Condominium in Thailand – second home owners. We plan to apart from the ordinary services we have to this group also offer for example legal advice, advice on Visa regulations, Taxation and retirement services. Some of this is planned to take place in areas where Swedes have bought property such as Hua Hin, Phuket and Eastern Seaboard.

Students & Young Professionals

Value for our members We are continuously working on the value creation for our members. This includes a thorough analysis for the different Members categories and forming out value propositions to each of them. Today we have the following different membership categories; • Premium • Corporate • Individual

We have seen an increased number of ‘Young Professionals’ coming to Thailand such as internships, young entrepreneurs and students coming as exchange students to Thai Universities. In the opposite direction many Thai students have been traveling to Sweden to pursue a degree at Swedish Universities. These people are often young and enthusiastic but may need advice and a network of more experienced individuals to be able to get most out of their time in Thailand.

To be added during 2011/12 will be • The Property Club • Students

EABC

Apart from the large Swedish export companies we have also noticed an increase in the Small- and Medium sized Enterprises – SMEs with Swedish origin entering Thailand. The challenges for those small companies are different than for the big multinational companies, often they do not have all the competence in-house needed for establishing themselves on the Thai market. They need advice and they need a network where they can get support and learn from the already established companies.

The Property Guide

The Guide will furthermore be of help for second home buyers for living in Thailand like medical care, taxes, insurance, education, interior design, traveling, moving and transportation and much more.

TSCC are also one of the partners in EABC – The European Asean Business Center in Bangkok Thailand. EABC is a physical center aimed at facilitating market access for European business in Thailand, to promote Thailand and ASEAN as a high potential trade and investment market for European businesses. The center will work mainly within two different areas. Firstly to establish advocacy groups within areas where market access and business cooperation can be improved. Secondly the center will develop services which facilitate cooperation between EU and Thai businesses like seminars, flagship events. This will be done in synergy with existing service providers, both in Thailand and in EU.

This Property Guide by the Thai Swedish Chamber of Commerce we plan to issue once a year. The Guide Thai-Swedish Chamber of Commerce l 93

Join us – Apply Now! Sign up for Membership in TSCC now online at www.swecham.com and click ‘Join us’. Submit the form and we will contact you! You are of course also welcome to contact us over the phone or drop by at our office at Phayathai BTS station in downtown Bangkok. Thai-Swedish Chamber of Commerce 34 C.P. Tower 3, 9th Floor Building A Phayathai Road Ratchathewi Bangkok 10400 Tel +66 (0) 2354 5229-31, Fax +66 (0) 2354 5232 contact@swecham.com www.swecham.com

TSCC Members Value Propositions Annual fees: • Premium 24 000 THB • Corporate 12 000 THB • Individual 5000 THB • Property Club 2000 THB • Students 1000 THB • Registration fee for first time applicants 1000 THB (except for Students) All categories will get: • Invitations to seminars, networking events and other functions • An authority voice to the highest level of Thai and Swedish Governments • Membership and influence in Joint Foreign Chambers of Commerce in Thailand (JFCCT) • Membership and influence in European Asean Business Center (EABC) • Legal News Letter and other selected information on a regular basis • Thai Sweden Review Magazine twice yearly (TSR) • Monthly News Letter, access to our interactive website 94 l Thai Property Guide

• Welcome package, orientationand introduction at events Premium Members will also get: • 3 Representatives in TSR and on our website • Interview in TSR, 2-3 pages • 5 TSR, 5 email invitations to all events • Logo and company profile prominently featured in TSR and our website • Offer to buy fast track to Immigration at Bangkok International Airport • Fast track for Business Visa at the Swedish Embassy (to be launched within short) • 2 seats at VIP table at events (on a first come first served basis) • Bringing 2 guests to networking events free (not including costs for lunch, dinners etc) • Offer to promote Products to members in TSR and on the website Corporate Members will also get: • 2 Representatives in TSR and on our website • Offer to buy fast track to Immigration at Bangkok International Airport • Fast track for Business Visa at the Swedish Embassy (to be launched within short) • 3 TSR, 3 email invitations to all events

• Bringing 1 guest to networking events free (not including costs for lunch, dinners) • Offer to promote Products to members in TSR and on the website Individual Members will also get: • 1 Representatives in TSR and on our website • 1 TSR, 1 email invitation to all events • Orientation seminar about doing Business in Thailand, culture bridging and more Property Club Members will also get: • 1 Representatives in TSR and on our website • 1 TSR, 1 email invitation to all events • Special service directed towards Property owners with initial advice and invitation to seminars on topics related to owning Property in Thailand and ‘Long stay’. • Offer of a special package with health care, insurance, tax advice, banking, legal advice and more Student Members will also get: • 1 Representatives in TSR and on our website • 1 TSR, 1 email invitation to all events • Invitation to Nordic Young Professionals events, alumni events and more

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Thai Property Guide by Thai Swedish Chamber of Commerce ISBN 978-974-7560-20-6 Publisher: Thai Swedish Chamber of Commerce, 34 C.P Tower 3, 9th Floor Tower A, Phyathai Rd, Ratchathewi, Bangkok 10400 Tel: +66 (0) 2354 5229-31 - Fax: +66 (0) 2354 5232 - E-mail: contact@swecham.com Edited by: Peter Bjork, Executive Director Design & Layout: Scandinavian Publishing Co., Ltd. Printer: BTS Press Co., Ltd., Bangkok, Thailand

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