Bangkok BUSINESS BRIEFING First published 2011. April/May 2016 relaunch edition

News and analysis for Bangkok’s English language business community

 

IN THIS ISSUE

INSIGHTS

5 Welcome to Bangkok Business Briefing 6-7 SURVEY: Where Bangkok flies 8 Bangkok’s traffic congestion ranked 9 Thrifty comes to Thailand 10 Can Thailand maintain pole position in the

ASEAN automotive market? 12 Iflix gains Sky as investor 13 True’s China Mobile pact: what it means 14 New ringgit/baht settlement platform 15 Bangkok’s 1st halal hotel 16 World’s biggest telecom show comes to TH 17 Thailand’s best companies: two surveys

FEATURES

20 Why you should not register in Thailand 22 Frank advice on going it alone as

an expat entrepreneur

PROFILES

24 The capital career of Raine Grady 28 Seachangers: three successful business sto-

ries 32 From journalist to real estate salesman

GUEST OPINION

34 Getting recruitment right This issue of Bangkok Business Briefing was edited by the team from Decisive Publishing. Global; HQ: Suite 26, Level 17, 327 Pitt Street Sydney NSW Australia 2000 ACN: 13 065 084 960 Founder and CEO: Grahame Lynch Group editorial director: Petroc Wilton Journalists: Tony Chan, Geoff Long, Richard van der Draay Editor at large: Nicola Jones-Crossley All editorial inquiries to grahamelynch@commsdaymail.com

BANGKOK BUSINESS BRIEFING is published under license by Centaur Management 394/42, D’65 Condominium, Soi Sukumvit 65, Prakanong Nua Sub District, Wattana District, Bangkok, 10110 Thailand Publisher & Advertising inquiries: Yamong Cools yamongcools@gmail.com 0818780016 Accounts: Maethika Tansakul maethika@centaur-mgmt.com 02 714 1559 This magazine was formerly titled Bangkok Business Brief Circulation: 10,000 copies circulated to a controlled database of expatriate business community members, hotel business lounges and paid subscribers. Ensure you receive BBB in the future. Sign up at : www.bangkokbusinessbriefing.com

WELCOME TO BANGKOK BUSINESS BRIEFING

Bangkok is an incredible place. It suffers from trials and tribulations in the form of

floods, demonstrations, bombs, corruption, congestion and resource pressures to a suffi-cient degree that in times of antiquity it would have been wiped from the map. But it retains

its incredible Teflon-like ability to bounce back from adversity.

Just over one year ago, the Brookings Institute said Bangkok was the slowest growing of 300

cities it measures annually. But the latest economic growth statistics show that Thailand and

its capital city are bouncing back.

In the 4th quarter of last year, private expenditure on most measures was up year on year:

and to the extent that the economy was in a torpor, this was mainly in the rural agricultural

industry. In terms of capital expenditure, public spending pumped the construction sector

and a look around Bangkok in terms of new developments such as Iconsiam shows that confi-

dence endures.

It is into this environment that we re-launch a five year old newspaper as a colour A4 print

magazine and email publication. We have always believed that the best time to launch an en-

terprise is in times of adversity and there is certainly plenty of that to go around.

But as the content of this issue of the magazine shows, there are still plenty of bright aspects

to Bangkok’s international business community. We feature the success stories of a number of

entrepreneurs in this issue, along with grounded advice from those who have been there and

seen it all, as well as insights on some of the most interesting business news from the last

month or two.

There is every reason to be confident about Bangkok’s future.

Exports remain buoyant, a start-up scene is rapidly emerging and with growth in Thailand’s

regional neighbours, the opportunity is there for Bangkok to assert itself as a regional hub.

We want to share this journey with you. If you fancy yourself as a editorial contributor to

these pages, our doors are open to your pitch. If you are seeking to promote your wares or

brands to tens of thousands of Bangkok’s English-speaking business people, we are your most

targeted advertising option. And later in the year we will introduce an event and awards series

where we hope to meet some of you in person.

We are looking forward to serving your business insights, analysis and networking needs

across 2016 and beyond.

The editorial team,

Decisive Publishing

Siem Reap 11

Brunei 1

Bangalore 2

Beijing 7

Busan 3

Changsha 2

Chengdu 2

Chennai 2

Chittagong 1

Chongqing 3

Colombo 2

Delhi 5

Denpasar 2

Dhaka 3

Fuzhou 2

Guangzhou 11

Haikou 1

Huangzhou 2

Ho Chi Minh City 14

Hong Kong 33

Hyderabad 1

Jakarta 4

Johor Bahru 1

Kaohsiung 1

Kathmandhu 1

Kolkata 4

Kuala Lumpur 28

Kunming 5

Luang Prabang 4

Hanoi 10

Macau 9 Mandalay 3

Manila 6 Mumbai 5

Naypyitaw 1

Pakse 1

Paro 1

Penang 2

Phnom Penh 10

Seoul 15

Shanghai 12

Shantou 1

Shenzhen 2

Shijiazhuang 1

Singapore 31

Suvannakhet 1

Taipei 11

Taiyuan 1

Tianjin 1

Vientiane 5

Wuhan 4

Medan 1

Xi’an 2

Xiamen 2

Zhengzhou 1

Yangon 18

Where Bangkok flies REGIONAL SURVEY

NUMBER of daily non-stop flights from Bangkok

Fukuoka 2

Nagoya 3

Osaka 5

Sapporo 1

Tokyo 23

Daily non-stop flights are an important marker of the connectivity

of a city to its international region across tourism, business and personal connections. Bangkok Business Briefing’s survey of the Asian

cities with which Bangkok has such a connection shows one startling

thing: the city’s primary connection is with China’s Pearl River Delta.

An astonishing 55 flights on average per day fly non-stop to the four

airports in that region: Guangzhou, Shenzhen, Macau and Hong

Kong. Indeed, some 104 flights a day proceed to a total of 20 destina-

tions in mainland China (including Hong Kong).

Unsurprisingly, the other major North Asian economies are also

major powerhouses for non-stop daily flight connectivity to Bangkok.

There are 34 daily flights to Japan, 18 to South Korea and 12 to

Taiwan.

But it is in ASEAN, with two exceptions, that Bangkok’s flight con-

nectivity comes into its own. There are 31 non-stop daily flights to

neighbor Malaysia, as well as 31 to Singapore. But there are also 24

flights to two destinations in Vietnam, 22 to three destinations in My-

anmar, 21 to two destinations in Cambodia and 11 to four destina-

tions in Laos.

However, connectivity to ASEAN’s number one economy Indone-

sia and its second most populous, the Philippines, is revealingly less

developed. Just seven flights a day make it to Indonesia, and two of

them are to Denpasar, a major international tourist destination. There

are six flights a day to Manila, none direct to other destinations in

that sprawling nation.

Bangkok’s business, personal and increasing tourist ties to India are

also pronounced, with 19 flights a day to five destinations. This may

represent a mere one-fifth of the traffic to China, but still shows that

Bangkok is increasingly a hub on an arc that connects North Asia with

South Asia. Further to that is daily flight connectivity to all India’s

neighbors Nepal, Bhutan, Bangladesh and Sri Lanka.

B angkok has been awarded the dubious distinction of being the second worst

city in the world for traffic congestion, be-hind only Mexico City and knocking last year’s “winner”, Istanbul, into third place. An annual index compiled by GPS and telematics specialist TomTom found that Bangkok residents faced 57% longer travel times because of the city’s congestion. The index measures congestion in 295 cities using GPS data from its devices out in the field. According to TomTom, the congestion level percentages represent the measured amount of extra travel time experienced by drivers across the entire year. “This is in

comparison to measured travel times during uncongested conditions. We calculate and report the overall congestion level (all day) and the morning and evening peak hour congestion levels for each city.” Bangkok also scored the dubious distinc-tion of having the world’s worst evening peak congestion with its drivers taking 114% longer than in a “free flow” situation to reach their destinations. The only other city in Asia to make the global top ten was Chengdu in China alt-hough there were twelve other Chinese cities in the global top thirty. Bangkok was not ranked last year due to a lack of data.

Bangkok receives global

silver for traffic jams

INDICATORS

N ew research data suggests that Indone-sia is on its way to challenge

Thailand’s ASEAN dominance in automo-tives, but the Thai government and the country’s existing strength in electronics may respond with formidable defence. According to Ipsos Business Consulting global automotive sector leader Markus Scherer, Indonesia is closing in on Thailand as the region’s top car making centre. In 2015, Thailand produced 811,000 more cars than Indonesia’s 1.1 million. But by 2020, that number is expected to shrink to 466,000 units, driven by strong domestic demand and production base expansion by top original equipment manufacturers. “The evidence is clear that in terms of the trend in vehicle production output, pol-icy development, and improvements in in-frastructure, Indonesia continues towards increasing capacity, domestic consumption and export volumes,” Scherer said. “Automotive manufacturers and policy makers in Indonesia, Thailand and else-

where will want to consider the implica-tions.” One of the main drivers behind Indone-sia’s push is its rapidly expanding domestic market, which grew 16% between 2011 and 2014 – more than 3 times the Thai growth rate of 5%, and second only to the Philip-pines (28%), according to Ipsos. The surge in domestic demand, and its at-traction to global carmakers, will drive pro-duction capacity growth in Indonesia, said Ipsos country head for Indonesia Douglas Cassidy. “Global automotive players who do not yet have a significant production base in In-donesia will increasingly be asking whether they are positioned to gain market share in an ASEAN market comprising more than 600 million people, and whether they can defend their existing market share as other companies look to expand in Indonesia and Asia generally,” Cassidy said. “A production base in Indonesia will ena-ble them to benefit from the cost, scale and

Can Thailand maintain pole

position in ASEAN’s automotive race?

AUTOMOTIVE

supply chain advantages of the country that seems on track to become the pre-eminent automotive power in ASEAN.” Despite clearly having its foot on the gas petal, Indonesia has its own challenges to navigate, such as the need for a stable regu-latory environment, and continuous devel-opment of the support infrastructure re-quired for the automotive sector. At the core of the matter, Indonesia needs to make it easier for foreign business-es to do business. At the moment, the coun-try ranks 109th out of 198 countries in the World Bank’s ease of doing business index, compared to Thailand in 49th spot, Ipsos said with Scherer noting that “recent devel-opments have been encouraging, encom-passing the relaxation of foreign ownership rules and streamlined licensing applications procedures.” But while Indonesia is the top automo-tive spot in ASEAN, Thailand is still very much in the race. For starters, Thai-land boasts one of the best “logistics supply chains” in South East Asia, Ipsos said. Today, half of the cars made in Thailand are exported to over-seas markets. Addition-ally, the country has a mature automotive components industry that already ships glob-ally. At the same time, Thailand is also adapting its production capacity to capture the global demand for low-emission vehi-cles, a strategy publicly endorsed by the Thai government. In a recent meeting with executives from Toyota, Isuzu, Nissan, and Honda, Thai prime minister Gen Prayut Chan-o-cha spe-cifically highlighted the country’s ambition to become the manufacturing hub for eco

and hybrid vehicles. Subsequent reports suggest his message was received loud and clear with all four car-makers pledging some kind of investment in-to production or research into hybrid or electric cars in the country. Today, one in seven cars manufactured in Thailand are categorised as eco-car, accord-ing to statistics from Ipsos. Also on the technology front, Thailand is well positioned to capture the growth in telematic solutions by combining its auto-motive leadership and mature electronics and electrical appliances industry, added SEMI, the global industry association serv-ing the electronics manufacturing supply chains. “Thailand is in the list of the world’s top 15 automotive manufacturing countries [Editors’ note: it is 9th] and the most im-portant growth area within automotive elec-

tronics is infotainment,” said SEMI South-east Asia president Ng Kai Fai. “According to recent news reports, the global automotive electronics market is ex-pected to reach US$280 billion by 2020. This provides a fertile ground for the semi-conductor and electronics industry to strengthen the regional business collabora-tions between Thailand and Southeast Asia.”

T hrifty Car Rental has expanded its global footprint to Thailand, launching

two locations initially in Bangkok and Pat-taya. It has an additional seven airport loca-tions planned to open in 2016. Thrifty Thailand is open in Sathorn Road – its Bangkok Downtown branch – while North Pattaya Rd is its Pattaya Down-town branch. Thrifty, which is part of the Hertz Global group, is aiming to position the Thailand brand to serve “value-oriented” customers, according to the company. It said the loca-tions in Thailand would be strategically placed in relevant urban areas to satisfy the mobility needs of local customers and inter-national travelers alike. The Thailand launch followed an extend-ed agreement between Hertz and its fran-chise partner Paragon Car Rental, which has been operating Hertz in the country since 2003. Future planned openings for 2016 include the international airports in Suvarnabhumi (Bangkok), Donmuang (Bangkok), Chiang Mai, Chiang Rai, Phu-ket and Samui as well as the domestic air-

port in Khon Kaen. “It is truly exciting for us to see Thrifty's expansion to Thailand,” said Michel Taride, group president, Hertz International. “Already a much sought-after destination by millions of international travelers every year, the addition of low-cost airline routes to Thailand is expected to drive even further growth potential for the Thrifty brand.” Taride said that longstanding franchise partner Paragon Car Rental would continue to manage Thrifty and was ideally posi-tioned to serve both international visitors and domestic customers. “After having successfully operated Hertz Thailand for 13 years, we are now ready to step forward, with an additional exciting ad-venture by launching Thrifty Thailand,” said Paragon chairman Chartchai Panichewa. “Embracing Hertz's multibrand strategy will help us expand our market, and target additional customer segments.” Thrifty Car Rental started its expansion to Asia last year. The company currently op-erates in Singapore, Malaysia, the Philip-pines and Thailand.

Thrifty launches in Thailand

AUTOMOTIVE

S outheast Asian internet TV service iflix announced the completion of a large

new round of funding worth an estimated US$50m, led by Sky PLC, Europe’s leading entertainment company. Indonesian company Emtek Group, through its subsidiary Surya Citra Media, one of Indonesia’s leading television and content companies, also participated in the round. The funds will help accelerate the compa-ny's growth in Malaysia, Thailand and the Philippines, and will be used for expansion into new markets on the back of strong de-mand for the service. iflix co-founder and Group CEO, Mark Britt said: “As pioneers of the global broad-casting industry and true leaders in televi-sion and media, Sky shares our passion for delivering market-leading content and ser-vices through innovation.” “We are also pleased that Sky will further their commitment by appointing a director to the board of iflix.”

Britt continued, “In response to both the

rapid growth and customer adoption in our existing markets and strong demand from new markets, we have decided to accelerate our expansion plans for the business sooner than expected.” Andrew Griffith, Group Chief Financial Officer, Sky commented: “iflix has quickly established itself as Southeast Asia's most ex-citing and fastest-growing streaming TV ser-vice. There are lots of opportunities for Sky and iflix to work together and share exper-tise as both companies continue to expand.” iflix claims over one million subscribers to its service. Unlike Netflix, much of its con-tent is subtitled in Thai for the local market. But with so much competition, trade jour-nal ContentAsia was moved to question whether there may be a streaming VOD bub-ble at play. “Is the streaming boom in Asia real or bat-bleep-crazy? Some think both, and that the current madness will settle down to a few superstars driven in equal measure by content and tech savvy, underpinned by the big-bang ability to be bold, innovative and to move fast.

iflix attracts big name

international investors

MEDIA & ENTERTAINMENT

T rue Corporation has signed a memo-randum of understanding to work with

the world’s largest mobile operator China Mobile, along with Singapore’s StarHub. Under the framework called “Hand-in-Hand Program,” the three operators pledged to accelerate strategic collaboration across five broad areas ranging from hand-sets to the Internet of Things. According to the international arm of China Mobile, who will represent the Chi-nese-giant in the three-way MoU, the goal of the Hand-in-Hand program is to “form an integrated platform involving an expanding group of international partners.” While spe-cific details of the program have yet to be announced, the broad definition of initia-tives indicates clear directions that would benefit all three carriers. In the device realm, the three partners will “intensify” collaboration, including re-search into future technologies. As such, True will be able to tap into the immense resources and industry clout of China Mo-bile when it comes to future devices with the likely result True will not only get devic-es earlier, but more cheaply. Meanwhile, tighter cooperation in mo-bile roaming will come into play for the three operators both for traditional voice and data services, as well as new business opportunities in relation to innovation and the Internet of Things, the operators said. For True, that means better support for its customers travelling to China and Singa-pore, and possibly more revenue from in-

coming roamers from the two countries log-ging onto its network. At the same time, True will have access to China Mobile’s “global Wi-Fi hub” – an global Wi-Fi infrastructure designed to sup-plement LTE roaming. There are other synergies between the three operators, starting with business data services. According to China Mobile, the program will aim to “strengthen complemen-tary capabilities” from the three operators in this area. While the description remains vague, there are clear opportunities for cross border cooperation for all three partners, in-cluding converged fixed and mobile solu-tions targeting multinational corporations. At the very least, the three operators can share information on the program’s Global Resource Improvement Platform, or GRIP, which is designed to drive operational effi-ciency when working across borders and op-erator infrastructures. The Hand-in-Hand Program was initiated in July 2015. The non-exclusive partnership platform aims to attract not only other telecoms oper-ators, but also partners from other indus-tries, China Mobile said.

True’s China Mobile pact:

what it means for local market

TECHNOLOGY & TELECOMS

W hile Thailand has always had a well developed tourism infrastructure to

support Muslim visitors, the operator of the new Al Meroz Hotel in Ramkhamhaeng says he now wants to bring that message to Europe as well as the 1.6 billion Muslims worldwide. According to Al Meroz Hotel GM Sanya Saengboon, Thailand remains outside the radar of most Muslims living beyond Asian countries such as Malaysia, Indonesia, and Brunei, where most of the country’s Mus-lims visitors originate. “Our target markets are Muslims living in France, Germany and Scandinavia – Europe-an countries with sig-nificant Muslim com-munities – as well as Austria and Eastern Eu-ropean countries like Serbia,” Sanya told tourism industry publi-cation TTG Asia. “I ex-pect Europe’s Muslim outbound market to grow, especially to South-east Asia, as the re-gion is still perceived as an exotic destina-tion.” As part of its strategy, Sanya said the ho-tel is sending representatives to key travel-related trade shows in Europe, and the Mid-dle East, and plans to conduct a road show to spread its message to Central Asian coun-tries such as Kazakhstan, Uzbekistan and Azerbaijan. The hotel, which is certified by the UAE’s Gulf Halal Centre as a Muslim-friendly establishment, offers an all halal environment catering specifically to Mus-lims, including halal restaurants, a women-

only floor, separate prayer rooms and a roof-top swimming pool that is opened at differ-ent times for men and women. Also, the entire premises are alcohol-free and all staff has received training on Islamic dress code and customs, including the han-dling of food. Each room also comes with a copy of the Quran, qibla showing the direc-tion to Mecca, and prayer schedule and mat. According to Sanya, about 50% of its cur-rent guests are Muslim. Al Meroz Hotel is arguably the first large establishment to specifically cater for Mus-lim tourists coming to Thailand, but it is on-

ly the latest creation in a well-developed industry. According to Tourism Au-thority of Thailand offi-cials, 1.1 million Malaysian Muslims already visit Thai-land on an annual basis, equivalent to the roughly the number of tourists ar-riving from Korea. There is even a mobile app that in-forms Muslim visitors

where to visit in Thailand. Another source of Muslim visitors to Thailand is Brunei, according to Thai offi-cials. The number of tourists from Brunei increased by 49% between 2014 and 2015, with each visitor averaging two visits for year for shopping and increasingly, medical treat-ment. Brunei has likewise caught the attention Al Meroz Hotel’s Sanya, who is soliciting not just guests, but also cooperation from the Asian neighbour. Sanya is looking for suppli-ers of halal products, Muslims staff for the hotel, as well as potential partners to pro-mote tourism between the two countries.

Behind Bangkok’s 1st halal hotel

TOURISM & HOSPITALITY

T he International Telecommunications Union has picked Bangkok, Thailand

as the venue for its ‘ITU Telecom World 2016’ event, focused on growing the digital ecosystem and the role of SMEs. The four-day event is intended to com-bine a global technology exhibition, a knowledge-sharing forum, a networking hub for corporates, governments and SMEs and an awards program. Showcasing digital solutions and invest-ment opportunities from nations, regions, organisations and companies, it will encom-pass both emerging and developed markets; the emphasis is on bringing high-growth SMEs, especially those founded in develop-ing markets, to the international stage.

“By emphasising the importance of collab-oration throughout the digital economy, ITU Telecom World 2016 will highlight the roles of multiple stakeholders from govern-ment and industry, including the small and medium businesses that are key to driving innovation and ensuring sustainable, inclu-sive economic growth,” said ITU secretary-general Houlin Zhao. Zhao added that holding the event in Bangkok would add value “as the city is at the centre of a fast-growing digital economy and is an important strategic gateway to the ASEAN countries and the wider South East Asian region.” ITU Telecom World 2016 will run at Im-pact from 14-17 November.

World’s biggest telecom show comes to BKK

EVENTS AND NETWORKING

B ank Negara Malaysia and Bank of Thai-land announced the operation of a lo-

cal currency settlement framework as part of the continuous efforts to promote the use of ringgit and baht for settlement of bi-lateral trade between the two countries. This follows a memorandum of under-standing signed between the two central banks in August 2015. The two said that the introduction of the framework allows for greater efficiency in accessing the local currencies and managing exchange rate risks arising from trade trans-actions. With the framework, Malaysian and Thai businesses will be able to effective-ly source ringgit and baht from the respec-tive banks in their home countries to settle trade transactions. Bangkok Bank, CIMB, Malayan Banking and Kasikornbank will participate in the

framework. "Given that this is a pilot project, only banks that fulfil key qualifications are select-ed to ensure success and smooth operations of the project. These qualifications include strong business links between both coun-tries, presence of branches in both countries or high volumes of trade in ringgit and baht. In addition, these banks have been grant-ed the necessary flexibilities to provide a greater range of financial services which in-clude ringgit and baht deposits, trade financ-ing and hedging products,” the two central banks said in a press release.

Ringgit, baht settlement framework begins

FINANCE & MARKETS

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www.advaoptical.com

AUTOMOTIVE Debut Car of the Year Suzuki Motor for Suzuki Ciaz Car of the Year Honda Automobile for Honda HR-V Luxury Car of the Year Mercedes Benz for Mercedes Benz C-Class Value-for-Money Car of the Year Mitsubishi Motors for Mitsubishi Attrage Pickup Model of the Year Nissan Motor for Nissan Navara

CHEMICALS, MATERIALS & FOOD Animal Nutritional Feed Company of the Year Charoen Pokphand Foods PCL Oleochemicals Company of the Year Global Green Chemicals PCL Wood Coatings Company of the Year Tai-Yo Paints (Thailand) Co. Ltd Palm Oil Plantation Company of the Year Univanich Palm Oil PCL

ENERGY & ENVIRONMENT LED Signage New Product Innovation Award Civic Media Co Ltd Biomass Power Company of the Year DP Cleantech Water Technology O&M Service Provider of the Year East Water Group Facilities Management Building Operations & Mainte-nance Customer Value Leadership Award ISS Facility Services Co Ltd Facilities Management Public Infrastructure Support Services Company of the Year ISS Facility Services Co Ltd Property Development Customer Value Leadership Award Land And Houses Public Company Limited LED Lighting Company of the Year Philips Electronics (Thailand) Ltd Facilities Management Industry (Building Operations & Maintenance) Company of the year Property Care Services (Thailand) Ltd Property Development Product Leadership Award Raimon Land PCL Property Development Company of the Year Sansiri PCL

Who Frost & Sullivan ranks as

Thailand’s best companies

EXCELLENCE

Global analyst firm Frost & Sullivan awarded its 5th annual gongs for Thailand’s best products and firms in six key verticals late in March at the Dusit Thani hotel. According to the firm, its awards are re-searched by its analyst team using metrics such as:

• Revenue growth• Market share in specific category and growth inmarket share• Demonstrated leadership in new product intro-duction and innovation• Breadth of products and solutions• Major customer acquisitions• Subscribers and growth in subscriber base• Business/market strategy

Biogas Company of the Year Award Thai Biogas Energy Company Limited Water Technology System Integration Company of the Year TropicalTech Co Ltd Thailand Technology Innovation Award in Bath Fittings Bathroom Design Co Ltd Industrial Bioremediation Company of the Year Keeen Limited

TRANSPORTATION & LOGISTICS Emerging Logistics Service Provider Company of the Year aCommerce Oil and Gas Logistics Service Company of the Year Bangkok Freight Forwarders Co. Ltd. Project Logistics Company of the Year CEA Project Logistics Logistics IT Solutions Company of the Year Dynamic IT Solution Co Ltd (JWD Group) Cold Chain Logistics Service Provider of the Year JWD Infologistics PCL Warehouse Development Company of the Year WHA Corporation PCL Technology Innovation Leadership Award in Textile Fibers Industry Phoenix Pulp & Paper PCL

HEALTHCARE Diagnostic Services Company of the Year Bangkok RIA Group Stem Cell Company of the Year Cryoviva (Thailand) Co Ltd Medical Gloves Company of the Year

Siam Sempermed Corp. Ltd Healthcare Supply Chain Company of the Year Berli Jucker PCL Private Healthcare Insurance Company of the Year AIA Co Ltd

ICT Contact Center Applications Vendor of the Year Avaya Managed Security Services Provider of the Year CAT cyfence 2016 Thailand Contact Center System Integrator of the Year Chevalier Networks Solutions Thai Limited Unified Communications System Integrator of the Year Dimension Data (Thailand) Limited Infrastructure as a Service Provider of the Year INET Fixed Broadband Service Provider of the Year Jasmine International Unified Communications Vendor of the Year NEC Corporation (Thailand) Ltd Outsourced Contact Center Service Provider of the Year One To One Contacts Data Center Hosting Service Provider of the Year TCC Technology Company Ltd Telecom Service Provider of the Year True Corporation PCL Mobile Data Service Provider of the Year True Move H Universal Communication Co Ltd Mobile Service Provider of the Year True Move H Universal Communication Co Ltd Most Innovative Enterprise Messaging Service Provider of the Year Eko Communications

Finance Asia ranks Thailand’s best managed companies

Hong Kong’s Finance Asia magazine asked 129 portfolio managers and analysts for their view on Thailand’s best managed firms. The overall winner was seafood maker Thai Union Group, a firm only founded in 1977 and listed in 1994. With a turnover of 125 billion baht and a labour force of over 46,000 employees, Thai Union is best known by its portfolio of major brands including Chicken of the Sea, John West, King Oscar, Petit Navire, Parmentier, Mareblu, and Century, as well as Thai brands Sealect, Fisho, Bellotta, and Marvo. Working in fisheries brings its fair share of controversy, but the firm has won plaudits for its CSR work.

BEST MANAGED COMPANIES 1: Thai Union Group 2: AIS 3: True Corporation 4: Airports of Thailand 5: Central Pattana 6: Intouch Holdings 7: Minor International 8: Home Product Centre 8: Siam Cement

BEST MIDCAP 1: Carabao Group 2: MK Restaurant 3: Thaicom

BEST SMALL CAP 1: Big Camera 2: Workpoint Entertainment

BEST CFO: 1: Noppadol Dej-udom, True

BEST CEO 1: Thirapong Chansiri, Thai Union 2: Bill Heineke, Minor Group 3: Phillip Tan, InTouch Holdings 4: Somchai Lertsuthiwong, AIS

BEST INVESTOR RELATIONS: 1: Thai Union Group 2: Minor Group 3: AIS

N owadays, every man, woman and their dog wants to be an entrepreneur. No

longer does the traditional school, universi-ty, corporate job trajectory apply to young people. More often than not, fresh gradu-ates take what little money they have, roughly sketch a business plan and enter the tough world of being their own boss. This concept appeals not only to young-sters starting out, but also to middle level corporate executives who quit their office jobs to follow their passion. Whether this obsession with entrepre-neurship stems from wanting meaningful work, dissatisfaction working for someone else, or the need for flexibility, working for yourself has never been sexier. Enter Bangkok. Regional HQ of some of the world’s biggest companies and home to a bustling startup and entrepreneurial sce-

ne. It boasts a socially savvy, mobile focussed market brimming with copycat companies and innovative ideas. Local up-and-comers compete head to head with foreign owned startups, vying for funding, sourcing talent and working on be-coming the next big thing. The hub of the region, Bangkok was voted the second Best Business City in Southeast Asia, beaten only by Singapore in 2014 and although the startup scene is relatively young, Bangkok has momentum on that front. However, do locally owned startups and foreign entrepreneurs compete on a level playing field? Relatively low startup costs at-tract foreign players to Bangkok while local Thai companies experience increased com-petition in an ever globalising market. Echelon touched on this topic briefly at a two day conference held at the Bangkok In-

W ’ REGISTER T T

C B >

ternational Trade and Exhibition Centre. Speaking at Echelon, Conor Bracken founder and CEO of Andovar—a firm which specialises in advising clients on re-gional localisation—challenged the largely foreign audience to research options for le-galising their startups outside of Thailand. “Don’t register a company in Thailand,” he declared, after apologising in advance to the Thai government representatives present. For foreign founders, Bracken explained, Thailand’s complicated paperwork, red tape and visa requirements, baffles entrepre-neurs and discourages foreign startups from registering their business in Thailand. The battle for 100% foreign ownership of a com-pany can quickly turn into a nightmare. An easier way to legalise a startup compa-ny, Bracken suggested, would be to register in Singapore where the process is fairly sim-ple then enter Thailand and apply to the Board of Investment (BOI) for 100% owner-ship of a foreign company operating in Thailand. Once the foreign company is granted BOI status, lucrative tax breaks are available along with other benefits. That may be all very well for foreign owned startups, but what does this mean for aspiring Thai entrepreneurs? Unwittingly by creating more advantages for entering the Thai market as a foreign company with BOI privileges, exemptions and tax breaks, this creates a barrier to en-try for indigenous young Thai companies who don’t even contemplate registering their company internationally to receive tax

breaks in their own country. Where foreign companies might have to jump through more hoops initially when en-tering the Thai market and establishing BOI, financially they benefit long-term from geo-arbitrage. “Geo-arbitrage does not mean tax eva-sion,” Bracken stressed. It simply means tak-ing advantage of a global economy. While emerging countries are often entrepreneuri-ally innovative and costs of start up are low, often the legal and accounting frameworks or the taxation and compliance infrastruc-ture either does not exist or is complicated and painstaking. As with everything in Thailand there are laws and then there are ways to circumvent those laws. Where structures are in place—in a round about way—to encourage foreign in-vestment and business in Thailand, indige-nous Thai entrepreneurs are not given a fair playing field. This may simply be because without having to juggle registration legali-ties, Thai startups are not aware of the bene-fits from operating as a foreign company in Thailand. With the arrival of AEC entrepreneurial competition is only going to get steeper. It’s imperative that entrepreneurs start thinking regionally and planning strategically when setting up and registering their company. Definitely think twice about registering in Thailand, especially when experts are advis-ing your most nimble and agile peers to do the same.

Nicola Jones-Crossley

So exclaimed Cassandra Italia, Founder and Director of Global Health Travels and TopDocs, speaking at Startup Exchange: Entrepreneurship in Thailand hosted re-cently by the Australian Chamber of Com-merce, Australian Alumni and Glowfish. Italia explained, “An entrepreneur needs to be highly dedicated, extremely particular and most importantly, needs to be able to charm the pants off investors.” Hosted by Glowfish, Bangkok’s boutique workspace, Italia was joined by a diverse panel of speakers including Ardent Capital CEO Adrian Vanzyl, Uber SEA executive Barry Levy, Blackmores country manager Pussadee Suchitchon and Heritage Estates MD Gavin Vongkusolkit. Together they shared their experiences of entrepreneurship in South East Asia. Moderator Simon Osborne kicked off the discussions by inviting thoughts from the panel on the insecurities of entrepre-neurship and the uncertainties that come with being your own boss. Financial limita-tions, lack of regular income and social pressures were recurring issues, however pas-sion for the work and belief in the projects outweighed many of these factors. Even without the technical know-how to run a business, Ardent Capital CEO Adri-an Vanzyl claimed that “passion will trump whatever you have studied.” Barry Levy

from Uber agreed saying, “It’s important to love what you do. When you do, it doesn't feel like work.” This begged the question, has university become obsolete? Passion may be all very well, but can it take the place of traditional education, Osborne asked? Vanzyl was quick to defend his statement, offering that he understood university to be important for socialisation and experience. The field of study however, has been found to be irrelevant to entrepreneurs later in their careers. Many of the panel confessed to holding degrees in completely unrelated fields to their current line of work. While passion is paramount in all entre-preneur’s undertakings, finding a team to share that passion and vision is difficult. “Everyone who is good, is already doing their own thing,” Gavin Vongkusolkit not-ed. Those who know and understand the concept of entrepreneurship have often lived or studied abroad. These people are driven, determined and resourceful—all the factors that you look for in a great team member—but more often than not, these traits also mean they are en-trepreneurial and are working on developing their own ideas. “No one wants a job anymore, they want to work for themselves,” Vongkusolkit add-ed. Vanzyl agreed stating, “the biggest limit-ing factor for growth in South East Asia is

Frank talk on what it takes

to go it alone in business

LEARNINGS

“To be an entrepreneur you need to be a psychopath”  

people.” The region is awash with capital. Access to funding is fairly easy and even pri-vate investors are not hard to find. The re-gion is booming and there is money to back that growth. What is lacking is the talent to sufficient-ly grow these businesses. Which is why, Vanzyl explains, it is really important to cultivate the culture of your company and staff. Your business will at-tract dedicated, hard-working people if the culture of your company supports, acknowl-edges and rewards their work. Vanzyl and his company Ardent Capital are putting this into practice having just launched Ardent Hired, the recruitment arm of Ardent Capital. Drawing on years of in-depth experience working with startups, Ardent Hired aims to provide “fast-growing startups in South East Asia with tailored recruit-ing services.” Pussadee Suchitchon, the new Country Manag-er for the popular vita-min brand Blackmores, added that she felt Thai entrepreneurship was limited by not know-ing how to market and present themselves professionally. Compared to startups being funded out of the US or closer to home in Singapore, Suchitchon felt that Thai entrepreneurs need to work on presenting themselves at an international standard. The way a company is marketed and pre-sented creates trust with the consumer, she explained. This trust in the company and product is what Suchitchon believes to have been a major contributing factor to Black-mores’ success in the Thailand. In conclusion, Osborne asked the panel-ists to share with the audience how they

have learnt from their mistakes. Vanzyl offered a personal reflection from

his early years in business. “The biggest mis-take I made was not learning from my suc-cesses.” Vanzyl went on to explain how he was successful very early in his career, mak-ing some decently sized capital. Spurred on by the fast results and not stopping to plan or understand why, Vanzyl marched on, intent on securing further deals. He ended up losing everything he had earned and was forced to start from scratch once again. He warned the importance of strategising, analysing and taking the time to truly under-stand what contributed to success before moving forward. As the discussion opened up to questions from the audience, one attendee asked “Do

you need co-founders or can a start-up be run by a single founder?” In a room filled with aspiring entre-preneurs and successful business owners, the answer to this could have gone ei-ther way. The panel howev-er was unanimous.

Yes, it is preferable to start your business with a partner, as this gives you someone to bounce ideas off and go to for support, not-ed Italia. Vanzyl added that venture capital-ists prefer to invest in companies that have more than one founder as it provides a more stable investment. Exit strategies and when to sell was also of interest to the entrepreneurial audience. Vanzyl offered his advice: As soon as you get a decent offer for your first business, take it and get out. Exit sooner rather than later the first time around as this gives you the capital to start something else, dig your heels in and grow it big.

Nicola Jones-Crossley

TAKEOUTS FROM THIS ARTICLE > Passion is essential for entrepreneurs,tertiary education not so much > Everyone wants to work for themselves> The region is awash with capital> Thai companies need to understand how tomarket themselves internationally > Analyse your successes, not failures> Partnerships are worth it> Exit when you get your first offer

CAPITAL CAREER

Behind the success of video and TV entrepreneur Raine Grady

T here are too many malls in Bangkok! exclaimed Australian long-term expat

Raine Grady. After slight confusion over which branch of TWG Tea in which to meet (she thought Emquartier, we thought Emporium) Raine settled into her chair and gestured around her. “There was none of this 20 years ago when I moved to Bang-kok,” she explained. “Bangkok now is a very different place.” Raine Grady is a familiar face in Bang-kok’s expat community. If not known by name, she’s recognised as an influential force in foreign media and known for being crazy enough to introduce English speaking TV to Thailand. More often than not, she also used to stick out as the sole female attendee at Chamber networking events. Thankfully times have changed and the gender balance has evened out somewhat, however Raine with her bold sense of style and broad Australian accent is still easy to pick. Raine is the Founder and Executive Producer of Capital Televi-sion, a production house that produces lo-cal English language content across South East Asia. Based in Thailand, Capital TV also owns over 60 hours of airtime locally per week on which they air their own shows that focus predominantly on travel and the expat market such as Destination Thailand. With over 25 years experience in televi-sion production in both Australia and Thai-land, Raine has seen and is experiencing the changes that are happening in the con-sumption and production of media. She’s built a successful, foreign owned business in Thailand and has dealt with the trials and challenges this has brought over the years. In our interview with her, Raine

also highlighted some of the milestones she has celebrated as her business has grown. “When we had the chance to be recog-nised outside of Thailand, when we were ap-proached by CNBC Asia for instance to pro-duce programs for them, suddenly it was a different ballgame and we had to set up a network of people around Asia.” For a small production house based in Thailand, this was a big milestone and was the catalyst for Raine and her team to begin producing regional content. A few years later Capital TV began pro-ducing Travel Asia and Beyond with Star World, a show that would go on to become one of the longest running travel shows in Asia and suddenly put Capital TV produc-tions in front of a huge audience in over 50 countries.

“That [TV show] really put us on the map in terms of being producers of lifestyle and travel related content,”

Raine explained, as her team tapped into the excite-ment and buzz that was hap-pening around Asia at the

time. These were defining moments for Raine, confirming the need for local English language production in Asia and validating her move from Australia to Thailand. “In the early days people said we were mad, because there wasn’t such a huge de-mand,” she confessed. A little over 20 years ago, Raine visited Thailand on a holiday. She was working as a journalist for Aus-tralia’s Channel 9 network and met John Everingham the celebrated photojournalist who mentioned to her that no-one was pro-ducing English language television in Thai-land at that time. This intrigued Raine and it didn't take her long to hand in her resignation at Chan-nel 9 and move to Bangkok for a year to ex-

In the early days people said

we were mad, because there

wasn’t such a huge demand

[for English TV in Thailand]

plore television production in Thailand. “My news director thought I was a luna-tic and my family thought I was crazy,” Raine explained with a laugh, however she felt that she was young and the time was right. 22 years later, she owns a successful production house and a library of travel content spanning regionally across Asia. However times are changing and the world of media and television is not what it used to be. The consumption and conse-quently the production of media is evolving as people watch and engage with media by different means. Raine is the first to acknowledge this and talked about the shift away from traditional TV, “Originally we used to call ourselves Television Producers, now we call ourselves Content Producers.” Television is no longer the primary pro-vider of news and media. “My own kids are evidence of this,” explained Raine. “They don’t watch TV but they watch a lot of content. You have to evolve for that. And I think that makes it very interesting for me because I started in country televi-sion which was grassroots TV so you were very focused and niche in what you pro-duced for a very specific audience.” “Then things moved away to be very net-worked and you were producing for mass markets and it was very hard when you were in networks to reach a small niche. So now with the internet, with mobile broadcasts, with pay per view, with all these different means to watch, people can cherry pick and you can target a very small niche. That makes it very interesting, you have to be a little more creative and experimental.” “We all have to evolve because our world is changing in television. But the demand for good content will always be there. 70% of all internet traffic as of next year is going to be video, so the demand is very high.”

With Asian countries being some of the highest mobile content consumers in the world, creating content for mobile devices will also be a high priority. Just with any entrepreneurial business venture, setting up a new media production company in a foreign country has its chal-lenges. Raine explains how Capital TV avoids controversial subject areas such as politics to mitigate the potential for censor-ship, an issue that news media channels struggle with. A challenge that Raine often comes up against is with communication and lan-guage. She tells how the English language still is, and always has been a challenge. Finding staff that have a high enough level of English is hard and there is a need for Thailand to really focus on developing its output of English speaking graduates and high quality education programs as the AEC open labour market rolls out. Being a foreign media production compa-ny also means you have to “jump through a few extra hoops” to have access to be able to film certain things, Raine adds. In these circumstances it all comes down to who you know and your contacts which is why it is so important to nurture the net-works you have. Other than that, Raine stresses the need to always be mindful that although she lives in Thailand, she is not Thai and everything

that she produces needs to be well-researched, respectful and even-handed. “I've been here a long time, I know a lot of people and know the way things work,” Raine smiled, answering a question on what strengths she has brought to the industry. Being an expat and hav-ing lived and worked in Thailand for over 20 years, Raine feels as though she’s seen it all. Changes of gov-ernment, development of in-frastructure and different people in positions of power have taught Raine to be pa-tient, resilient and importantly have a good sense of humour. She is very mindful of what is happening in the media industry and adapts quickly to new trends. “What tests your mettle in me-dia is not when everything goes right it's when everything goes wrong and how you deal with it,” Raine explains.

It’s evident that she still loves her work.

That perhaps is the biggest strength one can bring to any career. Exciting times lay ahead for production companies and alt-hough Raine jokes about early retirement, she’s committed to developing ties with part-ners to move into the mobile environment

in the next few years. She’s also looking for-

ward to nurturing her crea-tive roots and getting into

short film production. She craves the freedom and creativity that working for clients and advertisers does not always afford, though

she feels lucky to be making money from do-ing what she loves. She concludes: “I’m still excited about what we’re doing and where we’re going. That’s the most important thing because if you lose that enthusiasm you may as well go and do something else, because our industry is about passion.”

Nicola Jones-Crossley

So now with the internet, with

mobile broadcasts, with pay

per view, with all these

different means to watch,

people can cherry pick and you

F aisal Malik is the self-described artist-craftsman-designer at Faisal

Malik Design, which specialises in wood art. Canadian national Faisal describes his work and business to us.

Can you describe your business to us? What made you decide to be a wood artisan?

I create functional art which unite wood’s innate beauty and history with modern ele-ments. I could see that Thai history and ar-chitecture was being lost to make way for European style modern developments. Old Thai homes, temples, boats and bridges are being destroyed daily. As one of Bud-dhism principals is of rebirth, foremost for me is to preserve the spirit found within the tree and the history of the original source. I have always loved nature and trees since a child. From growing up in my mother’s flower shop, fly fishing in the Canadian val-leys and climbing trees. Being a wood arti-san is a natural progression and combines my passion of nature, history and creativity.

What is the most challenging part of your business?

There is the artistic and creative side which I enjoy immensely yet to succeed also means having to effectively manage and develop other vital aspects. From meeting clients, preparing proposals, accounting, research and development, sales and marketing.

What is the most rewarding?

There are two aspects which I find reward-ing. Knowing that the pieces I make will

live on for generations and hopefully bring a sense of happiness and pride to the new owners. Secondly is the actual creative pro-cess; searching across the country for an-tique wood, experimenting with new tech-niques and materials and bringing out the natural beauty within the timber.

What were doing with your life and career before?

I was working as an operations manager for International NGOs and as the managing director of Camillian Home, a charitable in-stitution in Bangkok for disadvantaged Thai children living with disabilities and serious illness.

Any advice for people who want to set up and go it alone?

Be completely focused and obsessed towards your work and your vision. Believe that you can create and achieve anything in this world and through hard work and dedica-tion you will. Never stop learning and ex-perimenting. Be inspired. Surround yourself with a network of kind and honest people who are also passionate and successful with-in their own respective fields.

D arren Moore is the MD of Firecreek, a specialist web and mobile applications

development company. The UK national now has seven fulltime staff.

Can you describe your business to us? What made you decide to be an app developer?

Firecreek evolved from being my personal company in the UK to a web and mobile app development company in Bangkok with a team of inhouse Thai programmers. We focus exclusively on web and internet tech-nologies. What made us go into app devel-opment was the market demand. The sys-tems we make start from been accessible in a web browser and inevitably end up being supported on mobile devices. Mobile apps have a different challenge than web apps so it's an exciting area with new technologies to learn.

What is the most challenging part of your business?

Dealing with customer expectations is prob-ably going to be quite common for a lot of managers and business owners. Program-ming is a slow and sometimes laborious job. If you're trying to explain to a customer why the new feature took four days instead of their estimated one day then stop because you'll never win and you'll waste more time explaining than doing. Having good cus-tomers is important but your customers need to respect your knowledge and trust you. Daily email updates and using online tools such as Trello really help managing customer expectations.

What is the most rewarding?

It's the end of the week and the team have moved all the post it notes from "To Do" to the "Done" column. Having a real visual representation of the work done by the team gives a good sense of achievement for everyone. Another rewarding feeling is when my team go that extra step to do something better than we originally out-lined. Over the years of trying to become a better manager I have found different ways

of working with different staff and working with the Thai culture. If you give them the right environment they'll surprise you with some great ideas.

What were doing with your life and career before?

I decided my career path at quite an early age. I was always playing with computers and decided that's what I enjoyed the most. I left high school and became a full time program-mer. When I felt like I had the necessary ex-perience I decided to go freelance. Freelance is great but it can be a drain working daily by yourself so I went backpacking and I ended up in Thailand.

Any advice for people who want to set up and go it alone?

Get the money flowing in and learn how to do a profit and loss spreadsheet. Worry about money but not to the point where it stresses you out —your focus should be con-stantly on the customers and your employ-ees. In this industry I recommend others to stick to a few popular technologies and be-come specialists in them. As a SME it’s im-possible to provide a high quality service if you’re trying to do everything.

S akai Naismith is an Australian who has stamped out a niche with Discover Else-

where, which holds eclectic tours, often to unusual and dangerous places.

Can you describe your business to us? What made you decide to be a tour specialist with a difference?

We organise customised tours to places that no one else goes. I believe that travel has the power to create real, tangible, positive change. Mark Twain said, 'Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts.' The main difference that between Discover Elsewhere and other trav-el companies is that we listen to our cus-tomers and thus are able to engage with them in a way that holds their interest. An example might be the images of Buddha: Some appear more feminine than others across South East Asia. Most guides would not be aware of the reason behind this... our guides understand that the image of Buddha became more feminine during times of war.

What is the most challenging part of your business?

As the sole employee, my biggest challenge is being on the road with clients and deal-ing with new enquiries at the same time. Although I do have other guides, they are freelance and also work for other compa-nies. The other main difficulty is that I am best at the operational aspect of running a tour company, I am not great at marketing... Although I am learning more about this, I have found that the best form of marketing for Discover Elsewhere, is word of mouth.

What is the most rewarding?

The most rewarding aspect is the loyalty that I have from some of my customers. I have had the privilege of a client from 10 years ago get in touch and request that I de-sign a tour for 3 generations of her family. The feedback that we get from our clients is extremely flattering. We have never received

negative feedback to this day.... and will strive to ensure that we never do. If you want to have a look at some of our past cli-ents feedback, check the website: www.discoverelsewhere.com/testimonials.

What were doing with your life/career before?

I left a promising career as a lawyer to join a circus, after which I jumped between a few different professions before landing in the travel industry. For me, the travel industry was the glass slipper that fit perfectly. I am fascinated by the various cultures in the world and it seems as though people appreci-ate the ways in which I connect to different places as a traveller.

Any advice for people who want to set up and go it alone?

Know your industry. It is not enough to have a vague knowledge of what you are do-ing.... you need to have an vast and intimate knowledge. Nothing can replace this.

 

ANDREW BATT is best known in Thailand as one of Asia’s top property writers and commentators most recently as group editor of Thailand Property magazine. He also has a reputation as Thailand’s English-language media guru via his blog, Bangkok Bugle. Now he has jumped to the other side of the fence as the new GM for AsiaRents, a start-up aiming to replicate European standards of service in the rental market. He brings us up to date…

MY NEW JOB is General Manager for Asi-aRents. We focus solely on the rental mar-ket in Bangkok. Jamie Nettleship, the founder and CEO, has a goal to change the way people rent property in Bangkok. You could say by hiring a 25+ year veteran media professional is one way he’s doing exactly that. I can say without doubt there are no other media professionals with such exten-sive property journalism experience working

in this side of the Bangkok real estate sector.

ONE THING that already makes AsiaRents stand out from the competition is its brand-ed vehicles. Agents use them to collect cli-ents for viewings, and they come complete with cold water and iPads showing the se-lected properties for viewing. Someone also goes ahead to ensure the property is open, clean, the air-conditioning is on and the cof-fee is brewing.

THE DOMINANT TREND in terms of sales has to be luxury in central Bangkok. Why? Purely it’s down to lack of space, so any developments happening within, say, five miles of Siam BTS will be at the super-luxury end of the market. Even projects launching close to the mass-transit network are attracting good sales levels and decent prices.

IN TERMS OF RENTALS in general we’re seeing more expatriates looking further away from what we would call the traditional loca-tions such as Asoke, Nana and Thonglor. Yes, they are still looking here but perhaps in fewer numbers. More seem to be looking at places like On Nut where THB 20,000 per month will get you a decent, new proper-ty in close proximity to the BTS network. The Thonburi side of the river is also attract-ing some interest.

PRICES OF NEW PROPERTIES in Bang-kok have risen pretty much every year since the Asian Financial Crisis but some people looking to rent are still expecting to get something in the centre of the city for THB 10,000 per month. That’s just not possible. New property prices have risen and rental prices have too, but getting that message across is one of the things we, and other agents, need to do.

FOR RENTALS IN BANGKOK, I would say try to visit as many properties as you can but narrow down both a location and price band from the start. Go at different times of the day. Go during the week and at week-ends and get a true feel for where you will be

staying. Most rental agen-cies will want tenants to sign a one-year agreement so you don’t want to be stuck somewhere awful.

I THINK, again, that is what makes AsiaRents dif-ferent. We sell rentals, yes, but we also advise and you can get a truly balanced opinion from a company with more than 50 years of combined experience.

I WILL ALWAYS BE A JOURNALIST, but this is a change of direction in a lot of ways, but that said I am putting all my industry knowledge and experience to great use, I am still writ-ing and blogging about property for AsiaRents, and helping to create com-pelling listings for some outstanding rental proper-ties.

IN TERMS OF WORK-ING around Southeast Asia, the most important thing I have learned as a journalist is to do your due diligence. I’ve had run-ins with PR companies and developers where I know what they’re trying to say is not true. For buyers and investors buying anywhere in the world they should always seek inde-pendent legal advice and be entirely sure they know what they are signing.

MY ‘MEDIA GURU’ tag all started from my blog – The Bangkok Bugle – although I have to say it’s not a top priority now. The media scene here is a long way behind other parts of the world, and print is still the pre-ferred choice for many advertisers, despite the ability to know (and change) instantly any online campaigns.

ONLINE WILL CONTINUE to grow but the major problem is that people expect to read validated and professional content for free. It will take a long time for most pub-lishing companies in Thailand to generate enough revenue purely online to be able to employ the best journalists to generate the best content.

ENGLISH IS STILL A ‘NICHE’ language in terms of the media, but with the advent of AEC it will grow as more Thais discover the need to have better English skills or risk missing out on investment to other coun-tries, such as the Philippines or Singapore.

T he biggest task of an HR business is the business of finding the right peo-

ple. The challenges this imposes upon HR and internal recruitment teams are seeming-ly never ending.

Attrition rates in South East Asia, and in particular, Thailand remain unnervingly high. Only the promise of consistent pay in-creases and greater bonuses seem to counter balance the constant issue of staff attrition.

Having worked across projects in over 30 countries I can say there is a consistency in the inconsistency that most companies dis-play in trying to find the right people. What appeals? What makes the person right? This changes by the border. The fact is there is little or no consistency, attrition is generally driven by a need to earn more and simply survive, the ratios are often small but the impacts to businesses as a whole can be sub-stantially damaging.

HIRING KEY TO HR Hiring was always seen as a smaller part of the role within HR, not anymore, workforc-es are presenting challenges never before ex-perienced, globalisation, inflation, cost of living, benefits, travel, larger families, broad-er social issues, politics, the list is endless but all impact massively on the day to day operations of HR operations.

Business today demands sleek pro active sharp operators to find cost savings and yet the cost of recruiting gets higher, year on year high street recruiters get record profits from escalating fees and more place-ments…..often replacements. The fact is it’s costly and time consuming and most people within HR prefer to leave it to somebody

else. Now that’s fine but that does not help the bottom line.

From what the geopoliticians and econo-mists are telling us, times are going to get tougher, and indeed there has been a colos-sal downturn in direct investment into Thai-land from major players such as Japan.

I am not sure if this signals the end of an era or is a reflection of the global economy for now, but there is one thing for sure, the em-ployment market is still very buoyant. Latest statistics tell us that less then one percent of the employable workforce is indeed unem-ployed, as such we are in a cycle of recycling human capital.

HOW TO RETAIN BEYOND A YEAR So how do businesses today meet the de-mands of employees and more importantly retain their services for more than the man-datory one year, take a bonus then run typi-

Recruitment trends and challenges in TH

COMMENTARY

cal candidate? There is no quick fix, howev-er business can be more aware of their com-petition, benefits expectations, environ-ment, bonus and appraisal, leave entitle-ment and so on, are businesses proactively researching the market to get a better under-standing of these principles? Are businesses making recruiters work for their money and demanding this market data? Is the average HR function taking the issue of attrition se-riously enough? Are they listening?

With over 30 years experience in the busi-ness of manpower my honest thoughts are no to all of the above, the recruitment in-dustry is not contracting its actually grow-ing, I for one believed it would be in full scale reverse by now, but its quite the oppo-site. Markets are ripe for the people with the right skills. In Thailand the key areas for now and the future continue to in and around, Engineering, Infrastructure, Fi-nance & Accounts, Senior Management, Rail-all skills, Construction & Project Man-agement, Pharmaceuticals, Automotive, Electronics & hospitality.

Outside of these sectors farming and tour-ism make up the remaining GDP for Thai-land. The coming years may well be chal-lenging for Thailand, but we have high hopes for the ASEAN community impact, perhaps greater localised investment, per-haps a leaking workforce as new opportuni-ties are clearly identified across local bor-ders, either way the challenge will not fade.

Damien A Lee CEO & Founder of Scooppeople.Asia Damien is a seasoned veteran of the manpower in-dustry and can boast a 30-year career spanning across 31 countries and 5 continents. He has spe-cialized in substantial recruitment campaigns –(RPO) for some of the world’s largest blue chips, covering multiple sectors, especially in O&G, Con-struction, Infrastructure. Damien is now spear-heading a business that will offer the best technolo-gy solution to all HR departments who need to hire, a product that is a fraction of the cost of man-power agencies and regular cv search engines.

BANGKOK BUSINESS BRIEFING circulates over 10,000 copies each issue to:

1) Active, qualifiedmembers of the

American Australian British Canadian Danish Finnish German Japanese Korean Malaysian New Zealand Singaporean, and Thai-Chinese

business communitiesof Bangkok

2) Business lounges of majorhotels in Silom, Sulhumvitand the Chao Praya

3) Entertainment venues whereforeign businesspeople meet

4) Our paid subscriber list

And for those not seeing a print copy, digital versions are available and promoted online. There is no better way to reach Bangkok’s English-language business community than through our targeted circulation.

Print is the best way to cut through the online clutter. And BBB is the best way to reach your target mar-ket.

Contact Yamong Cools at yamongcools@gmail.com For a media kit and our printer & mailer statement

4th QUARTER 2015

31

Table 1 Gross Domestic Product at Current Prices Unit: Millions of Baht

2014p 2014p 2015p1

2015p1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Private Final Consumption Expenditure 6,922,620 1,663,574 1,776,176 1,766,437 1,716,433 1,684,203 1,778,695 1,771,020 6,974,351 1,740,433

General Government Final Consumption Expenditure

2,235,428 514,851 555,614 615,036 549,927 530,412 572,944 641,169 2,334,149 589,624

Gross Fixed Capital Formation 3,259,488 798,338 853,399 821,077 786,674 847,186 851,441 796,432 3,375,475 880,416

Change in Inventories -98,218 48,644 -96,868 -70,118 20,124 36,839 -96,156 -80,929-108,626 31,620

Exports of Goods and Services 9,098,713 2,277,026 2,177,053 2,244,574 2,400,060 2,274,024 2,222,267 2,404,587 9,340,694 2,439,816

- Goods 7,299,933 1,808,545 1,809,054 1,826,570 1,855,764 1,729,690 1,752,145 1,911,365 7,265,569 1,872,369

- Services 1,798,780 468,481 367,999 418,004 544,296 544,334 470,122 493,222 2,075,125 567,447

Imports of Goods and Services 8,230,125 2,036,408 2,049,858 2,107,269 2,036,590 1,904,440 1,931,691 2,004,817 7,811,706 1,970,758

- Goods 6,501,293 1,604,273 1,617,777 1,674,090 1,605,153 1,485,593 1,489,858 1,571,396 6,073,947 1,527,100

- Services 1,728,832 432,135 432,081 433,179 431,437 418,847 441,833 433,421 1,737,759 443,658

Expenditure Side 13,187,906 3,266,025 3,215,516 3,269,737 3,436,628 3,468,224 3,397,500 3,527,462 14,104,337 3,711,151

Statistical Discrepancy -55,672 42,855 4,738 -44,866 -58,399 -66,607 -93,156 -195,822 -566,852 -211,267

Production Side 13,132,234 3,308,880 3,220,254 3,224,871 3,378,229 3,401,617 3,304,344 3,331,640 13,537,485 3,499,884

Table 2 Real Gross Domestic Product Growth (YoY) Unit: Percent

2014p 2014p 2015p1

2015p1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Private Final Consumption Expenditure 0.6 -2.8 1.0 2.3 1.7 2.5 1.7 1.8 2.1 2.5

General Government Final Consumption Expenditure

2.1 3.5 1.2 -0.2 4.3 0.7 1.0 2.3 2.2 4.8

Gross Fixed Capital Formation -2.4 -10.5 -4.7 2.7 3.6 10.3 2.6 -2.64.7 9.4

Exports of Goods and Services 0.2 0.1 -0.7 -3.2 4.5 1.2 1.5 1.7 0.1 -3.5

- Goods 0.7 0.5 1.3 -1.6 2.6 -2.5 -3.9 -1.8-3.4 -5.6

- Services -1.6 -1.7 -8.6 -9.2 11.2 15.4 27.3 16.5 14.6 3.8

Imports of Goods and Services -5.3 -10.5 -8.6 0.1 -0.8 2.3 0.2 -2.6-0.4 -1.3

- Goods -6.9 -13.7 -11.7 -0.5 -0.7 3.9 -0.4 -3.3-0.6 -2.3

- Services 1.1 3.0 0.9 2.3 -1.8 -3.2 2.3 0.1 0.4 2.7

Gross Domestic Product (GDP) 0.8 -0.5 0.8 0.9 2.1 3.0 2.7 2.9 2.8 2.8

THAILAND ECONOMIC & SOCIAL INDICATORS: LATEST QUARTER

4th QUARTER 2015

32

Table 3 Real Gross Domestic Product Growth on Production Side (YoY) Unit: Percent

2014p 2014p 2015p1

2015p1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Agriculture 0.7 0.9 4.8 0.2 -1.7 -4.6 -4.1 -5.5 -3.4-4.2

Agriculture, Hunting and Forestry 0.9 1.1 5.9 1.1 -2.4 -5.3 -4.2 -5.5 -4.4-4.8

Fishing -2.0 -2.2 -8.2 -11.5 7.8 2.2 -1.5 -3.1 6.52.1

Non-Agriculture 0.8 -0.7 0.4 1.0 2.8 3.9 3.2 3.2 4.2 3.6

Mining and Quarrying -1.6 -3.1 -1.6 -1.0 -0.7 0.1 -1.4 2.4 3.7 1.2

Manufacturing -0.2 -2.2 -0.2 0.3 1.3 2.2 -0.2 1.0 0.8 0.9

Electricity, Gas and Water Supply 2.7 -4.9 4.5 4.2 8.5 3.7 2.8 4.8 5.0 4.0

Construction -3.7 -9.9 -3.6 -3.3 3.5 19.6 12.5 9.4 23.9 15.8

Wholesale and retail trade; repair of motor -0.5 -2.4 -1.5 0.3 2.0 4.1 3.7 4.1 5.5 4.3

Hotels and Restaurants 2.4 1.1 -1.2 -0.3 9.2 18.0 22.1 12.7 5.0 14.0

Transport, Storage and Communications 3.4 1.9 3.2 3.3 5.1 8.1 9.7 6.7 5.3 7.4

Financial Intermediation 6.8 6.4 6.8 7.2 6.8 8.0 7.7 5.9 7.5 7.2

Real Estate, Renting and Business Activities 0.5 -0.6 -0.4 -0.3 3.3 4.5 2.2 3.1 6.6 4.1

Public Administration and Defence; 1.3 3.6 1.1 0.0 0.4 -2.8 -1.4 0.0 1.3 -0.8

Education 0.9 3.7 0.4 -0.1 -0.4 -5.8 -4.0 -3.9 2.3 -2.9

Health and Social Work 2.7 3.5 1.6 2.1 3.4 -0.8 0.9 3.0 4.2 1.9

Other Community, Social and Personal Servics Activities -0.1 -0.2 -5.2 -0.4 5.3 2.9 5.4 6.1 8.3 5.7

Private Households with Employed Persons -4.4 -7.0 -5.6 -4.6 -0.1 -2.3 -0.9 -0.6 1.5 -0.6

Gross Domestic Product (GDP) 0.8 -0.5 0.8 0.9 2.1 3.0 2.7 2.9 2.8 2.8

Unit: Percent Table 4. Real Growth Rate on Production Side and Expenditure Side (QoQ Seasonally Adjusted)

2014p 2015p1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Gross Domestic Expenditure

Private Final Consumption Expenditure 0.2 2.0 0.5 -0.9 1.0 1.1 0.6 -0.1

General Government Final Consumption Expenditure 0.1 1.6 0.4 2.0 -2.9 1.5 1.7 4.4

Gross Fixed Capital Formation 0.9 3.3 3.9 -4.3 7.2 -3.7 -1.3 7.5

Exports of Goods and Services -0.1 -0.8 -0.5 5.5 -2.7 -0.6 -0.3 -0.3

Imports of Goods and Services -3.7 0.3 4.2 -1.6 -0.5 -1.2 0.3 0.2

Gross Domestic Product

Agriculture 0.6 0.4 -2.7 0.8 -2.5 0.8 -3.9 3.4

Manufacturing -1.4 1.5 0.8 0.1 0.0 -0.8 1.3 0.2

Wholesale and retail trade; repair of motor -1.0 0.2 1.3 1.2 1.3 0.1 1.5 2.4

Financial Intermediation 0.7 2.0 2.3 1.6 1.9 1.6 0.7 2.9

Gross Domestic Product (GDP) -0.6 0.7 0.9 0.9 0.5 0.4 1.0 0.8

    

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