Magazine of the British Chamber of Commerce Thailand Issue 6/2012
www.bccthai.com
Blitz on bribery The Brief
Issue 6/2012
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CONTENTS Issue 6/2012
BCCT
Board of Directors 2012 Chairman Simon Landy Colliers International Thailand T: 02 656 7000 simon.landy@colliers.com
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Vice Chairman & Treasurer John Sim MBMG Group T: 02 665 2534 john.sim@mbmg-international.com Vice Chairmen Matthew Lobner HSBC T: 02 614 4040 matthew.k.lobner@hsbc.com Simon Matthews Manpower Thailand T: 02 634 7273 matthews@manpower.th.com Dean Thompson Boots Retail (Thailand) Ltd T: 02 694 5900 dean.thompson@bootsrt.com Directors Gary Biesty South Asia Law Co., Ltd T: 02 636 0585 garyb@southasia-law.com
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Viriya (Boyd) Chongphaisal GlaxoSmithKline T: 02 659 3000 viriya.x.chongphaisal@gsk.com David Cumming Amari Orchid Pattaya T: 038 418 418 david.cumming@orchid.amari.com Stephen Frost Bangkok International Associates T: 02 231 6201/6455 sfrost@bia.co.th
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Richard Greaves Grand Hyatt Erawan Bangkok T: 02 254 6239 richard.greaves@hyatt.com Andrew McBean Grant Thornton T: 02 205 8222 Email: andrew.mcbean@th.gt.com Sriram Narayan British Airways PLC T: 02 627 1723 sriram.narayan@ba.com Chris Thatcher Anglo-Thai Legal Co., Ltd. T: 085 064 8884 christhatcher1@gmail.com
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Foreign Secretary backs Thailand’s anticorruption campaign British firms sign pledge to fight corruption in Thailand
Front cover: Foreign Secretary William Hague endorsed the fight against corruption during his recent visit to Thailand.
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IOD chief leads nation’s blitz on bribery Education holds key in fight against corruption
New Ambassador set to make his Mark in Thailand Myanmar must learn lessons from Mongolia Royal engagement for Thai Prime Minister IATA chief calls for airports development The Brief
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It CAN strike twice Are you ready?
CONTENTS Issue 6/2012
British Chamber of Commerce Thailand 7th Floor, 208 Wireless Road Bangkok 10330, Thailand Tel: 02-651 5350/3 Fax: 02-651 5354 Website: www.bccthai.com Email: greg@bccthai.com Greg Watkins, Executive Director
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The Brief is published by: British Chamber of Commerce Thailand For advertising and editorial enquiries, please contact Greg Watkins, Executive Director - BCCT Production: Scand-Media Corp., Ltd Bangkok Editor: Dale Lawrence The views expressed by individual authors are not necessarily those of the British Chamber of Commerce Thailand or of the publisher. Reproduction in whole or in part without written permission from the British Chamber of Commerce Thailand is strictly prohibited.
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Chairman’s Message Executive Director’s Message UK volunteers bridge the language gap in Thailand
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New British Council branch gets royal backing
Helmet campaign seeks sponsors By the Numbers Chamber events
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Bob strikes right chord with busker James
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Chairman’s Message
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he past year has been a memorable one for me and it has been a privilege and honour to chair BCCT. The Board started out the year keen and determined to make its mark, and I’m pleased to say that we end the year with the level of enthusiasm, activity and dedication on as high a plane as it was when we started. Progress has been made on all the main agenda items we set out with and others that have been added, although inevitably progress is more evident in some areas than others.
Simon Landy
Sterling Partners
Corporate Partners
The Board: The number of Vice Chairs was increased to four to ensure continuity and leadership while each Board member was allocated a specific task to administer. It was encouraging to see a high level of attendance at all Board meetings, and many new initiatives in specific portfolios. All Directors were keen to take on and develop important areas, so it would be unfair to single out individuals. However, we were sorry to lose three Board members during the year – Toni Weber, Colin Hastings and Jane Bailey – and would like thank them for their many contributions, especially Colin who had been one of the longest serving Board members. I would also like to welcome Stephen Frost, who has recently stepped in as a new Director. Advocacy: A landmark event for the year was our members’ get-together in April, where feedback was generated in a series of structured discussions with over 60 members. Input has been used to recalibrate our advocacy policy chiefly around members’ ongoing concerns on the Foreign Business Act, visa and work permit processes and property rights. The newly-formed European ASEAN Business Centre has included FBA and other key cross-chamber issues in its 2102 European Business Issues Paper to the government in June. Many of our member firms were actively engaged in the process of putting this paper together through the EABC’s eight sectoral advocacy groups. I have also been fortunate to be able to promote our agenda directly to various highlevel Thai officials and British visitors, from the Thai Prime Minister and British Foreign Secretary, through various ministers from both countries and local officials, most recently in a face-to-face meeting with the Immigration Commissioner. While concrete progress in these areas may seem glacial, we are seeing a much keener interest to engage and some positive moves in the right direction. These can hopefully be built upon in the coming years.
Other Major Partner
Supporting Partners
Annual Airline Partners
Events: Input from the members was generally positive on our events programme, yet we have tried to respond to sometimes contradictory proposals for change. Directors are encouraged to engage with new attendees and help introduce them to other members with similar interests, while we have tried to hold more in-depth events on specific business topics, most recently on the Dawei Deepsea Port and a joint event with Microsoft, Google and Apple. We have tried to maintain the Chamber’s balance between business and social topics, between large income-generating and smaller breakeven events and between training programmes, presentations and panel discussions. We are also keen to increase services to members outside Bangkok. Alternating the co-hosting of events with Amcham and Austcham in the Eastern Seaboard is working well, and we are holding events with other like-minded groups in Phuket, Chiang Mai and potentially Myanmar. Finally, we’re very pleased that our very experienced head of events, Khun Rungjit, has returned to the fold after a short interval in time for the Christmas Lunch! Structure: The consultation process resulted in some important tweaks to the constitution which we will be putting to the membership at the AGM. The main proposed change is to increase director terms to two years to ensure continuity and encourage more participation. We would also like the Treasurer’s role to be formally recognised and accorded signatory authority. Many of you have contributed through word and deed to this year’s achievements and I would like to thank you all for your continued support and interest. As we approach the January AGM we would like to see more new faces and diversity on the Board. I would be more than happy to chat to you about the level of commitment required which I believe is not too onerous for what can be an extremely worthwhile and rewarding role. A merry Christmas and happy new year to you all! The Brief
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Executive Director’s Message
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aving returned from a very busy visit to the UK last month I thought that it would be useful to use this message to report back on the key activities of the visit. However, before doing so a good question to ask is – why is the BCCT Executive Director visiting UK at all?
GREG WATKINS
BCCT undertakes activity in the UK, including participation in events, to support Thai and UK public sector bodies (eg BOI and UKTI), connect with BCCT members there and to market membership. This is consistent with BCCT’s mission statement:- “To serve the needs and promote the development of British business in Thailand and as ‘Partners in Progress’ contribute directly to Thailand’s economic advancement”. There is a further important aspect in that if lobbying by BCCT is to be taken seriously by the Thai government there has to be a quid pro quo. That is we need to be able to answer the question ‘what is BCCT doing to help Thailand?’ All visits to the UK (and elsewhere overseas) are approved by the BCCT board and are supported by BCCT’s annual airline partnership programme. Earlier this year BCCT reduced the cost of overseas membership and restructured existing services to create a better value for money and marketable membership offer. This was formalised in the signing of the ‘Headstart’ memorandum of understanding between UKTI represented by Minister for Trade and Investment Lord Green and BCCT (of which more in a separate article in this issue of The Brief). The timing of the visit was good as I was able to promote BCCT at seven different Thailand events during ten days. These included workshops organiszed by UKTI’s Asia Task Force, UKTI’s country team and the UK ASEAN Business Council, the Thai Board of Investment, British Chambers of Commerce and a briefing on Thailand and Myanmar organised by BCCT with British Expertise. Of the 117 contacts I connected with, six non-member companies have offices in Thailand and a further six wish to pursue Headstart ie overseas membership. A full report of the visit is accessible via Latest Reports on the BCCT website. Other than the presentation events I undertook specific meetings in London. With the FCO I discussed BCCT’s plans to establish a British Business Group in Myanmar and with a separate department of the FCO I received an update on British passport renewals. The transfer of responsibility from the FCO to the Identity and Passport Service is proceeding slower than planned. It is likely to be completed in early 2014. Any changes to systems are not expected before then but the objective is to reduce the turnaround time for renewals to ten working days. In order to progress our Thai alumni initiative I met three students from Samaggi Samagom (the Thai Students Association in UK). There are 5,000 Thai students in UK. All three were very enthusiastic about linking Samaggi Samagom with potential BCCT member employers when the students graduate and return to Thailand or for summer internships. It is possible that we will organise a job fair in London early next year in order to give member companies an opportunity to access these students. I also met senior representatives of British Chambers of Commerce (BCC) and participated in their first International Trade Conference. BCC is the national body for a network of 52 accredited chambers of commerce across the UK. In order to achieve 25 percent increases in the number of companies supported by UKTI in each of the next two years Lord Green is keen to move some key export and investment promotion business services to British Chambers overseas. This mirrors the German model. However, in Germany companies must join their local chamber of commerce. The funds generated then support German chambers overseas. Germany has a much higher share of Thailand’s imports and in general UK’s export performance is declining. BCCT expects to receive formal proposals from UKTI early next year. As this will be the last issue of The Brief before the Christmas and New Year break I would like to take this opportunity to thank the board and all BCCT members for their support of the BCCT office team during 2012 and to wish you and your colleagues a restful holiday and a successful 2013. The Brief
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Cover Story
Foreign Secretary William Hague is welcomed to Thailand by Prime Minister Yingluck Shinawatra.
Foreign Secretary backs Thailand’s anticorruption campaign T
he visit to Thailand by Foreign Secretary William Hague included discussions with Prime Minister Yingluck Shinawatra on opportunities to increase bilateral trade and investment and the development of English language skills for Thais. Mr Hague arrived in Bangkok after representing the UK at the Asia Europe Summit in Vientiane. The Foreign Secretary ‘exchanged views on the global economy’ with Deputy Prime Minister and Finance Minister
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Kitiratt Na Ranong, discussing the impact of Thailand’s financial and business regulations. Mr Hague later met his Thai counterpart Surapong Tovichakchaikul, as well as a selection of political and commercial figures including former PM Abhisit Vejjajiva. Mr Hague, accompanied by Thailand’s Education Minister Pongthep Thepkanjana, also witnessed the work of the British Council in Thailand. He also presided
over the signing of an anti-corruption pledge by British companies as part of the private sector Collective Action Coalition Against Corruption (see page 12). In Laos, the Foreign Secretary formally opened the United Kingdom’s new embassy in the capital Vientiane. In the presence of Laos government minister Soulivong Daravong, Mr Hague said,” Today we are reopening the British Embassy in Laos, after an absence of 27 years. In that time you
have begun to transform your country and your role in the region. You have liberalised your economy which is growing faster than that of any other nation in ASEAN, itself one of the world’s most dynamic areas. You have halved the number of your people who live below the poverty line, and you are on the cusp of joining the World Trade Organisation. Two million tourists visit your beautiful and fascinating country each year, including as many as 35,000 Britons. “I warmly congratulate you on behalf of the British Government for what you have achieved and for the huge opportunities to advance the security and prosperity of your country that lie ahead of you. Every country has challenges it must face, and so does yours, in the areas of economic, social and political development and in confronting the legacy of past conflict, including cluster munitions. But like you, we are very optimistic about the future of Laos,” added the Foreign Secretary. “Our new Embassy is an expression of confidence in your country’s future and of our desire to work more closely with you than ever before. Across Asia we are intensifying our bilateral relationships, opening new Embassies, sending more diplomats to the region, championing Free Trade Agreements with the European Union and investing in our ties for the long term. “We have the same high hopes for our relationship with Laos. With this new embassy Britain becomes one of only three European countries to be represented in all ten states of ASEAN at a pivotal moment in the organisation’s history as it works towards becoming the fourth largest single market in the world.”
sustainable growth, infrastructure, mining and hydropower. “Our Ambassador and his team will promote deeper contact and understanding between our two peoples. We will shortly announce the start of the recruitment process for the Chevening scholarship programme for 2013/2014, investing in your future leaders.”
Mr Hague added that the government will use the newly-opened embassy in Vientiane to increase trade and investment. “Last year our exports here grew by 142 percent, from a very low base, showing the huge potential there is on both sides. Our diplomats will provide advice to British companies interested in investing here, create
William Hague (left) with former Prime Minister Abhisit Vejjajiva
contacts with the Lao authorities and business, strengthen the UK-ASEAN Business Council and help your companies to access British expertise in
This was the first ever visit made by a British Foreign Secretary to the Lao People’s Democratic Republic. For a full transcript of William Hague’s speech in Vientiane: http://ukinthailand.fco.gov.uk/en/ news/?view=Speech&id=831011982
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British firms sign pledge to fight corruption in Thailand During his recent visit to Thailand, the Rt. Hon. William Hague MP, Secretary of State for Foreign and Commonwealth Affairs, presided over the signing of the Thailand Collective Action Coalition Against Corruption’s anti-corruption pledge by a number of British companies operating in Thailand. The British Embassy hosted the event at the Ambassador’s Residence in cooperation with the British Chamber of Commerce Thailand (BCCT) and Thai Institute of Directors Association (Thai IOD). British companies signing the pledge were Boots, DLA Piper, GlaxoSmithKline, Grant Thornton, Halcrow, Rolls-Royce, Salamander Energy, Triumph and ZincOx (Thailand).
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IOD chief leads nation’s blitz on bribery By Dale Lawrence
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r Bandid Nijathaworn is a man on a mission. As President and CEO of the Thai Institute of Directors (IOD) he is playing an influential role in the campaign to eliminate corruption in Thailand. And Dr Bandid refuses to accept that he’s fighting a lost cause. As a former Deputy Governor of the Bank of Thailand, Dr Bandid is well placed to recognise and understand the damage inflicted upon a nation’s economic health by institutional corruption and he is placing great faith in the ability of the private sector Collective Action Coalition Against Corruption (CAC) to make substantive progress in the months and years ahead. A recent CAC conference in Bangkok highlighted in particular the responsibilities of company directors in fighting corruption in Thailand and Dr Bandid is both delighted and impressed with the support of British diplomats and business leaders to the cause. The third national conference on ‘Collective Action against Corruption’ featured a closing address from UK Ambassador to Thailand Mark Kent. He stated that ‘corruption undermines progress and has no place in any society’, adding that ‘the global community is collaborating on various initiatives to fight
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corruption and the United Kingdom is committed to supporting Thailand’s efforts in the fight’. “Corruption, fraud and bribery undermine good governance and the rule of law, and hurt the poorest and most vulnerable. It is against our core principles of free markets, trade and competition and is a costly obstacle to economic development, stability and security,” he said. “In the UK we have fought hard against corruption over the years with considerable success. In 2010 the government introduced the UK Bribery Act and whilst the UK is no stranger to anti-corruption initiatives, with legislation going back to 1906, this Act brings together numerous UK agencies and overlapping jurisdictions so that those fighting corruption can work more effectively.” The Ambassador added that ‘bribery has no place in British businesses, at home or abroad. We expect our businesses to observe the same standards, and are governed by the UK Bribery Act when operating abroad. The embassy encourages UK companies operating in Thailand to join or support the CAC’. “Corruption is to be fought on many fronts and we are encour-
aged by the initiatives Thailand is undertaking. I am very encouraged by these initiatives and I want to reiterate the UK’s commitment to work alongside our friends in Thailand, and in countries in south east Asia to eradicate corruption across the region,” Mr. Kent concluded. Within days of this high-profile conference, nine British companies signed an anti-corruption pledge witnessed by visiting Foreign Secretary William Hague in a ceremony staged at the British Ambassador’s residence in Bangkok and supported by both the Thai IOD and the BCCT. Supporting the CAC campaign are Boots, DLA Piper, GlaxoSmithKline, Grant Thornton, Halcrow, Rolls-Royce, Salamander Energy, Triumph and ZincOx (Thailand). “I am absolutely delighted with the help and support of British businesses, the British Chamber of Commerce Thailand and, of course, the British Ambassador,” said Dr Bandid, who acknowledges the importance and significance of the UK’s Bribery Act which reached the Statute Book in 2011. COMPLIANCE Dr Bandid is convinced that greater awareness of the need for strict compliance in the private sector is the
Dr. Bandid Nijathaworn (right), pictured with British Chargé d’Affaires Steven Chandler and Karen Pillay, Head of the Global and Regional Team, at the signing of the agreement to support Thai IOD to develop a training course for Thai business executives to reduce corruption.
key to success with this campaign. Of the 131 companies in Thailand now supporting the CAC, 74 are listed on the SET. Dr Bandid is expecting the anti-corruption bandwagon to gain further momentum as company directors acknowledge publicly that corruption leads to higher costs in doing business in Thailand. But there’s much more to the campaign than merely signing a pledge. Companies supporting the CAC must adopt clearly defined internal anticorruption policies and demonstrate good governance at the highest level through audits signed off by either the head of their internal audit committee or independent external auditors. Only then will certification be awarded as official recognition from the Thai IOD and the CAC. “We also want to see our messages filter through to the business supply chains and, indeed, to other stakeholder groups. In the case of publicly-listed companies their shareholders are fully entitled to ask Directors about anti-corruption policies,” he said. “The private sector has a role to play and a responsibility to act if we are to eradicate this problem.”
Dr Bandid is pleased that the Thai government acknowledges the work of the CAC in raising awareness in the private sector. – but he is quick to point out that public sector bribery and corruption is a matter for the nation’s law enforcement organisations. “Tackling this problem is on the government’s agenda and it is clear that public sector corruption is matter for law enforcement organisations.” Plans for 2013 include a series of Thai-language workshops for local business executives. In the case of foreign companies wishing to take
part, Dr Bandid expects that local employees will join the workshops but he does not rule out running a similar programme in English. That may become essential if his hopes for even greater levels of support from international business and foreign chambers of commerce come to fruition. “Our message is clear. Support a new and better way of doing business. The problem has increased in recent years and this means we see it decrease in the years ahead. I believe that in five years’ time this CAC campaign will have made a difference.”
Dr Bandid Nijathaworn graduated with honours in Mathematical Economics from the University of Essex in England before moving to Melbourne to study for his PhD in Economics. He later took the Advanced Management Programme at Harvard University in Boston. Early in his career Dr Bandid taught economics at Thammasat University in Bangkok before joining the International Monetary Fund. He was most recently Deputy Governor in charge of financial stability, financial policy and banking supervision at the Bank of Thailand.
More details: http://www.thai-iod.com/en/index.asp
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Education holds key in fight against corruption This keynote address on corruption in Thailand was given by Dr Virachai Techavijit at Cambridge University
O
ne misty morning, prior to giving a talk at Cambridge University on ‘The Cure for Collective Corruption in Thailand’, I was listening to BBC Radio 4. I heard about a forestry commission which was planning for the well-being of an area of woodland with a vision in mind of what the forest will look like 500 years from now. It struck me as curious that we, in Thailand, do not seem to attend in the same way to the well being of our human communities.
What we need is nothing short of a new vision of education for the 21st century. So let us be modest. Let us start with the next 30 or 50 years but let us begin now. And if the ideas I am about to lay before you are born in and of a love for Thailand then the vision is also global. The situation across the world brought on by advanced states of corruption is urgent. The phenomenon of collective corruption in which three parties, giver of bribes, taker and observer indulge and the associated wider acceptance of it in the country sucks people into a social black hole. This phenomenon has become an epidemic which has spread among the youth of a country. What, for instance, can we infer from a post-election July 2011 poll (www.abacpoll. au.edu) which suggests that 64.5 percent of Thai people (and 72% of those between 18-29 years of age) support corruption as long as they too benefit from it? Are we to infer that the majority of Thai people are inherently corrupt? Or is what we might refer to as ‘Thai culture’ inherently corrupting? Are we to suppose that Thais are any different from any other group of people who share a way of doing
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Dr Virachai Techavijit
things? I think not. Nonetheless, the question must be asked, “What does this mean for Thailand?” It is my passionate belief that responsibility for attending to decaying values in society rests with educationalists and how teaching and learning, the core business of education, happens across the country. So if we are to tackle the phenomenon of collective corruption, we must first rediscover what it means to be educated
and contemplate what it means to be humanly good citizen, for students, for schools, for a community and for a nation, in the context of this seemingly intractable real world issue. If we are truly going to create a better, more peaceful world through intercultural understanding and respect, then Thailand needs to lead by example and address core issues at home. Acting locally whilst thinking globally, the wider application of this vision is I hope apparent.
Blueprints for success This is not the occasion to examine in detail perceptions of what corruption can and does mean in different cultures and societies, suffice to offer the following example which might serve to illustrate that corruption is a contested concept. Take Italian, Argentine and Thai footballers who deliberately cheat the referee but are seen as ‘clever’ for deceiving the official. Here, deceit is seen as a revered skill. Corruption means different things depending on your culture and where you come from. But more of this another time. What we are experiencing in Thailand now is, I propose, part of a global phenomenon of the ‘cult of the immediate’ born of free market economics, consumer capitalism and the homogeneity of globalisation. We see and hear it all around us, on the television and on the street. The cry is not just “I need it” and ‘I want it and I must have it’ but ‘I want it and must have it now’. To paraphrase Shakespeare’s King Lear, it is time to apply some reason to the need. The cult of the immediate in politics here in Thailand is reflected in chronic short-termism characterised by self interest with little regard for the long term well being of either traditional culture or the future of the country. The tragedy is that the reverse is required. We need a culture of long term altruism, of service to the common good and the evolution of (rather than a return to) some understanding of common and shared values which puts the welfare of each other above the interests of the individual. It is needed and needed now. And it needs to be modelled by our political leadership. The evidence of the last 15 years’ education reform in Thailand renders it redundant and suggests that ruling politicians are either not interested in long term projects or are incapable of implementing them. Perhaps, they are incapable of conceiving them. Perhaps it is collective corruption which is at the heart of the disinterest, or more precisely, this ‘inertia’?
What we need is in essence simple. We need to develop blueprints for how a nation can be given hope for the future through education. At the heart of the vision is ‘moral, valuerich education’ possibly characterised by the curricula of the International Baccalaureate and the six pillars of Round Square Schools (www.roundsquare.org). My own Regents schools are among the most passionate Round Square members. From as young as Year 2 a student’s school activities and curricula are designed to encourage them to exhibit six ‘pillars’ which underpin social skills and the development of moral values, namely internationalism, democracy, environmental awareness, adventure, leadership and above all, service. The six pillars are known collectively as IDEALS which are tools capable of tackling (respectively) prejudice, disrespect for others’ opinions, selfishness, lack of concern and narrow-mindedness. Such blueprints must be created and prepared by Thai visionaries and independent educationalists so that they will be readily available when Thailand is blessed with a government of strength driven by moral purpose which demonstrates the commitment and genuine desire to bring collective corruption to an end. You may wonder if there will ever be such a government. If, as G.K.Chesterton suggested, ‘education is simply the soul of a society as it passes from one generation to another’ then we must rediscover the soul of our society. For such a vision must be shared by a new kind of citizen, who also rejects corruption in all its forms. Is this possible at all in Thailand for my grandson, who is eight months old at the time of writing, to see. New values Tackling corruption in Thailand is like opening Pandora’s Box - all manner of socio-economic, political and military demons will be released and will contrive to bewilder, poison and muddy the thinking. But if our beloved country is to break the cycle
of corruption which brought about military influence in government and develop a genuine democracy, then I would argue, profound socio-cultural-economic change is necessary. The best chance of achieving this change peacefully is I propose, through significant and long term education reform. It is both a source of frustration and relief that education reform is not a major priority for either of the main political parties. We have seen eight education ministries over the past five years. Can there be a country in the world which goes through more education ministers than Thailand? Yet if education is the voice of hope, it has rarely been heard above a whisper. Education reform is not a priority, it is the priority. From this, all else follows. No wonder we have not gone further than a few steps in a marathon distance. Significant social upheaval is inevitable – indeed this is the material point – so how we are to manage such an evolution becomes critical and that is where we must return to politics, because political manoeuvring and posturing risks prolonging or derailing the process. But education cannot be politicised. Politics is cancer to education. We must avoid the politicisation of education by which any political party can gain favour; this is essential. Those who might otherwise benefit need to resist any favour which might come their way. You might ask ‘what has been the purpose of education up until now other than the means by which the aims of a political and economic plan can be realised’? Otherwise, what is the aim? Why do we bother? Why should we bother? Because, as the visionary English educationalist Christopher Wright points out ‘the future of humanity lies in the hands of those who are able to pass to future generations reasons for living and hoping’. And that is the role of education. It transcends economics. It transcends politics. It brings hope of a better life, a better future. Has this been hapThe Brief
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The sun sets over Cambridge.
pening in Thailand? Obviously not. We are not doing justice for our children and grandchildren at all. Critical to the success of the vision of my lecture at Cambridge University is the idea that the architecture of education reform must be removed from politics and designed by the visionaries who are not politicians, something which logically, it can be strongly argued, should be enshrined in the constitution. The duty of the government must be limited to just implementing those blueprints required by the constitution. If politicians lead educational reform, then there is a good chance that their adversaries in the next government will scrap them, however coherent the blueprints might be. Indeed, the better the Blueprints, the quicker they would be scrapped by the opposition. Look at what has already happened this year. Sadly the details of few examples of such scrapping cannot be spelled out in the public domain such as in this publication. The future holds no guarantees. As I mentioned in my talk at Cambridge’s Faculty of Education in October 2011 what is required is ‘nothing short of a miracle’. So let us hope for a miracle just in case another opportunity conducive for such miraculous event may come about as it did in Septem-
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ber 2009 but no miraculous act was made – let us develop a new vision.
al Baccalaureate (IB) United World Colleges (UWC) and Round Square.
For a moment let us dare to dream and imagine we reach the point where we feel we are succeeding; in curriculum design, in teacher training, in radically altering the way teaching and learning happens in our schools and in our communities, in reviving the aspirations and hopes of our society and in building a new foundation on which to develop a new generation of moral value-rich Thai citizens.
The foundations of his educational philosophy were built in the belief that education is the only sensible means by which war, conflict and corruption can be avoided. He respected young people, whom he believed possessed fundamental decency and a sense of moral purpose and in the simple notion that ‘education does not begin or end in the classroom or examination hall and the most essential elements of education may exist outside of both’ (IB, 1996).
We must focus on character building by instilling sincerity, love and care for others in the hearts and minds of Thai children. We must prevent jealousy and selfishness from developing in their minds by the way we educate and through our role models. Education reform will be the sole preserve of educationalists; it will blend the best of international education, the cultural traditions of Thailand and a set of values defined by moral purpose. It is not just what you learn; it is how you learn it. Education is about how, where and when teaching and learning happens. Kurt Hahn , German philosopher and educationalist, was the inspiration behind some of the greatest success stories in education of the last eighty or so years across the globe, including the Internation-
Hahn pioneered modern understanding of how community service must be at the centre of an educational experience; at the centre, not at the edges. Community service should create sustainable community partnerships whilst service education must become a reciprocal teaching and learning experience between schools and their community partners such as orphanages, children with HIV/AIDS, ‘Sea Gypsies’ schools and the slum Mercy Centre children. Community service should help our young people understand that sustainable long term partnership with people less fortunate than ourselves is the commodity most needed for us to move forwards together. Where values are central to rather than peripheral to the planned curric-
ulum, this is moral value-rich education. Let us consider for a moment the United Kingdom, whose educational tradition has led to the National Curriculum for England and Wales being taught and learned all over the world. If we look at historical attempts to design a national curriculum, they have inevitably been politicised. The best intentions of quality educationalists have seen their work hijacked by politics which emphasise testing, statistics and league tables and produces results which are only loosely related to the standards they wished to promote, that is moral values and social skills have been less focused. The dilemma is like a recurring nightmare and the answer is clear: we must keep a safe distance between politicians and education reform’s architecture. The irony is unmistakeable but fifteen years here in Thailand since the Reform Act of 1997 have passed without any of us knowing in which direction education reform, especially moral education, is heading or if it will ever be addressed in this Reform. The heartbeat of the IB and Round Square programmes is a commitment to service through which students come to understand one thing above all (to quote Einstein) that ‘they are on earth for the sake of each other, for those upon whose smile and well-being their own happiness depends, and also for the countless unknown souls with whose fate they connect with a bond of sympathy. Many times a day, people realize how much their own outer and inner lives are built upon the labours of others, both living and dead, and how earnestly they must exert themselves in order to give in return as much as they have received and are receiving’. I am not suggesting that all Thai schools should become IB or Round Square schools; far from it. What I am suggesting is that now is the time to radically alter the direction of education of this country by blending the best of visionary educational philosophy with the best curriculum that the world has to offer with Thai cultural traditions.
Some countries, Japan for example, seem to be getting it right. If we do this, we will also radically improve the chances of the future well being of our children. This is an opportunity we cannot allow to be derailed. We must teach our children the language of common citizenship because in local, regional and global communities our children are increasingly bound together whether they like it or not and they will have to learn to share the same space and the same resources. As individuals, they must each do their share in ensuring that they build something which provides for them all. This is as true for Thailand as it is for anywhere else in the world. Vicious circle What is Thailand, the country we love intensely, becoming? We might consider ourselves part of a brave new world of emerging democracies, or as a maturing democracy, or possibly as a recovering wounded tiger economy? Whatever we are, it seems that the moral compass of the country moves wildly around uncertain poles. Put simply, the situation is unstable and its decay seems inevitable. At worryingly regular intervals during the last 80 years of Thailand’s democracy, military coups have been justified on the grounds of public protests about corruption. However, subsequent temporary governments were under great pressure from western countries to prepare for new elections. This has been only one mandate placed upon those temporary governments. There has never been any urgency to acknowledge the problem of collective corruption, let alone any attempt to cleanse the country of corruption permanently or any discussion of the means which might be employed to achieve this. Western powers who seem to think their kind of western democracy is the ‘medicine for all cures’ have done themselves a disservice in exerting unfortunate kinds of influence which has led to the return of the same corrupt politicians, apparently reinvented and sometimes marching under a new party banner. The pres-
sure placed on an inexperienced temporary government by these Western powers has also contributed to this vicious circle. This phenomenon has led to a vicious circle of corruption which has gone from bad to worse, fuelled by a fundamental lack of self-confidence in governments staying in power for a full term. Surrounded with uncertainty corruption has intensified. We ignore what is happening at our peril; the chase for the quick money promises social breakdown and cultural disintegration. It is time to adopt a different kind of hope and confront the challenge. Schools are the engines of education which drive a country forwards and as Professor Steward Sutherland observed ‘they have to make the choice whether they want to be the mirror of society or the change agents of society’. What I am proposing represents an ambitious vision to develop blueprints which will form a crucial part of a comprehensive strategy that will eventually wipe out the phenomenon of collective corruption in Thailand. Take a moment to reflect on that. We are talking about a strategy that will address and seek to change deep rooted ways of doing things. Changing the culture - there can be no greater challenge. I emphasise that for real and significant long term change to happen through educational reform, the government must adopt readily available blueprints and embed them in the constitution. Further, the government should be required by the constitution to implement those blueprints. Only then do we stand a chance. Considering the intensity of current corruption the chances of the military, the self-appointed ‘cleaning company’, suddenly appearing on the street are high. There is no time to lose. I propose that we, the visionaries with no political interest, must seize the initiative and start producing the blueprints now, independently, because when it comes to doing good we should not leave it too late. The Brief
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Issues for Thailand as UK bribery law begins to bite By Mark Butters
T
he Bribery Act 2010 became effective from 1 July 2011 and is often described as the toughest anti-corruption legislation in the world with a near universal jurisdiction allowing for the prosecution of either an individual or a company which has links to the UK, regardless of where the offence took place. Offences under the Act include bribery/being bribed, the bribery of foreign public officials or even the failure of a company to prevent bribery made on its behalf (e.g. an agent who ‘facilitates’ the clearance of a consignment through Customs, since the Act includes the term through a third party). Penalties for a breach of the Act are significant and include unlimited fines, imprisonment for up to 10 years, confiscation of property and the disqualification of directors from holding office in the UK.
Thai Prime Minister Yingluck Shinawatra and opposition leader Abhisit Vejjajiva participate at a recent anti-corruption rally in Bangkok.
Does it apply to companies in Thailand? It is important to stress that the Act applies to companies in Thailand if the organisation registered in the
Crooked court clerk A court clerk who made legal history when he became the first person to be jailed under the UK’s latest bribery legislation had his sentence reduced on appeal. Munir Patel, 22, from Dagenham, was sent down for three years for bribery and a further six years (to be served concurrently) for misconduct in a public office. But the Court of Appeal in London ruled that the total of six years imprisonment imposed upon ‘a young man of previous good character who pleaded guilty at the first available opportunity’ was excessive. Patel, who worked at Redbridge magistrates court in east London, used his privileged access to the court system to help more than 50 offenders avoid prosecution relating to driving offences in exchange for sums of up to £500. The Appeal Court stated that Patel ‘abused his position as a court clerk to pervert the course of justice by taking bribes from those who had committed motoring offences’, and then reduced his sentence by two years. The reduction in sentence was achieved by cutting Patel’s original six-year term for misconduct in a public office to four years.
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country has business in the UK, irrespective of the nationality of the local entity. For example, one interpretation is that a US-owned company that has operations in the UK and which makes a payment to a Thai government official could be prosecuted under the Act, and, as mentioned above, this could be extended to third parties acting on behalf of the company. In reality the Act is most likely to apply to companies and individuals who have a close connection to the UK, including British citizens, residents of the UK or a company registered in the UK. What may fall under the definition of the Act? The Act incorporates a relatively wide definition of offences ranging from the receipt/payment of bribes to corporate hospitality and ‘facilitation
payments’. Many of the transactions which may fall under the Act may be widely accepted business practices in a number of companies and strict compliance may place companies with UK connections at a disadvantage. Can the risks be mitigated? The Secretary of State for Justice, Ken Clarke, issued guidance three months before the Act came into force, setting out six principles to be followed by a business. These principles are proportionate procedures, top-level commitment, risk assessment, due diligence, communication/training and, finally, monitoring and review. In practice, this may include: • Appointment of a senior person within the Company as an “AntiBribery & Corruption Officer” with a remit to ensure that policies and procedures are adhered to • Inclusion of the Company’s policies in respect of bribery and corruption in the staff or procedures manual
• Provision of training to staff • Ensuring that sub-contractors or agents acting on behalf of the Company are aware of the requirements of the Act and its potential implications and documentation of this action • Obtaining written representations from sub-contractors or agents to the effect that they have adopted sufficient safeguards • Implementation of disciplinary procedures for staff who are found to be in breach of the Company’s policies as regards bribery and corruption and incorporation of these into the working regulations • Translation of the procedures into Thai language • Performance of a risk assessment review to identify areas for concern/ high risk divisions or activities • Development of effective systems and procedures to mitigate the risk, such as a log for all entertainment or gift sponsorship expenses above a certain level or a requirement for significant outlays for such expenses to be pre-approved
at a senior level • Implementation of a monitoring program to ensure compliance with procedures • Engagement of a professional audit firm to ensure compliance with the Act In conclusion, if a Company takes adequate steps to prevent non-compliance with the Act it should be able to provide evidence to defend itself in the event of being charged of failing to prevent bribery or compliance with the Act.
Mark Butter is Director, Business Services Division at RSM Advisory (Thailand) Ltd. Tel: 02 670 9002 Mark.Butters@rsmthailand.com www.rsmthailand.com
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PM Cameron appoints new trade envoys P
rime Minister David Cameron has appointed eight new trade envoys to promote UK business in selected high-growth and developing markets. In his keynote address at the Lord Mayor’s banquet in the Guildhall the PM also announced a £8 million pilot project to strengthen the capacity of overseas business groups, such as chambers of commerce, in 20 key countries. Both moves are part of the Government’s ambitious strategy to help double UK exports to £1 trillion by 2020. “We need to show the world at every opportunity this country’s great creativity and dynamism if we are going to win this global race for jobs, trade and investment. That is why I am delighted that some of our great parliamentarians have accepted my invitation to use their experience and know-how to bang the drum for British business,” said Mr Cameron. Lord Marland, Parliamentary Secretary for Business, Innovation and Skills and Chair of the Prime Minister’s Trade Envoys Network, said, “The Prime Minister has put trade at the heart of our country’s economic growth. I am delighted to chair and work with a cross-party group of high calibre and experienced individuals who are prepared to help British companies with their export drive in high growth markets.” The role of trade envoy will involve a proactive programme of activity to include leading trade delegations and raising the profile of the relevant markets within the UK. Each representative will complete up to two overseas visits per year as well as a programme of UK-based activity. The network of the Prime Minister’s Trade Envoys will be chaired by Lord
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Prime Minister David Cameron
Marland and will complement existing initiatives including the Business Ambassadors’ Network and the Prime Minister’s Business Advisory Group. The overseas pilot project will help to transform the way that the UK delivers trade support to UK business overseas and put the UK on more of a competitive footing with countries such as Germany, USA and France, all of which have strong overseas chambers capable of supporting domestic businesses in overseas markets. A new unit has been set up within UKTI to see the project through its first phase and will build on discussions across a range of business bodies such as the British Chambers of Commerce, the Confederation of British Industry, the Institute of Directors, the Engineering Employers Federation and the Federation of Small Businesses. This aims to make the experience of growing and expanding into overseas markets simpler and more seamless for UK business. The project will look to enhance the
range of overseas support available to UK companies including advisory services, launchpad offices, sector specialist working groups, trade missions, market intelligence reports and mentoring for new exporters. The intention is for business groups, such as chambers, that are based in these markets to become a stronger and more integrated resource for UK businesses, alongside the work already being done by the Foreign and Commonwealth Office and UKTI.
New UK trade envoys • Baroness Bonham Carter of Yarnbury (Mexico) • Baroness Morris of Bolton (Jordan, Kuwait, Palestinian Territories) • Lord Puttnam of Queensgate (Vietnam, Laos and Cambodia) • Lord Risby of Haverhill (Algeria) • Baroness Scotland of Asthal (South Africa) • Lord Sharman of Redlynch (Morocco) • Charles Hendry MP (Azerbaijan, Kazakhstan and Turkmenistan) • Richard Graham MP (Indonesia)
Small firms given Headstart to export A
new service providing practical support for UK businesses to export to high growth markets in South East Asia has been unveiled. The Headstart initiative is designed to help small and medium sized businesses seeking to export to these markets for the first time, offering access to local business networks, introductions to already established UK companies, temporary office space with local British Chambers of Commerce (BCC) representation and on-going access to BCC staff. The service is a partnership between UK Trade & Investment (UKTI), the UK-ASEAN Business Council (UKABC) and the British Chambers of Commerce in Singapore, Thailand and Indonesia. Headstart is initially being offered as a pilot programme for six months. If successful, the project will be expanded to other markets in South East Asia. Trade and Investment Minister Lord Green said, “Many more British companies could be exporting, but we know that striking out into new and unfamiliar markets can sometimes look daunting. Headstart will help small and medium sized companies seize the many opportunities in fast growing economies of South East Asia by connecting them with local support quickly. “We want to see another 100,000 businesses exporting by 2020 and helping more small firms to do so is vital to securing a return to longterm and sustainable growth.” Chairman of the UK-ASEAN Business Council Lord Davies of Abersoch said:
New trade initiative kicks off in Thailand.
“I am delighted that Lord Green announced the Headstart pilot at the UK-ASEAN Business Council (UKABC) annual conference. This pilot is a perfect example of the practical support which the UKABC is providing to UK small and medium sized enterprises, enabling them to make the most of opportunities in South East Asia. There are many more British businesses who could be exporting to South East Asia and we’re here to support them as they take that first step on the ladder.”
tive, being able to put on the ground expertise and connections as well as existing infrastructure to good use for UK small and medium sized enterprises.”
British Chambers of Commerce Executive Director - Indonesia Chris Wren said, “The local chambers are pleased to participate in this initia-
UK businesses wishing to avail yourselves of Headstart services in Thailand please contact: greg@bccthai.com
Headstart is available to companies with a maximum of 250 staff and maximum annual turnover of up to £25 million. The service is available for a nominal fee collected by the local chamber. These fees will typically range from between £220 to £500 for up to a year of support.
New Ambassador set to make his Mark in Thailand By Dale Lawrence
M
mounts a spirited defence of Britain’s membership of the EU.
ark Kent is no stranger to Thailand. He took up residence in August 2012 as Britain’s Ambassador after an intensive period of cultural acclimatisation that included language tuition at universities in Chiang Mai, Khon Kaen and Bangkok.
After spending some four years in Mexico City as Commercial Counsellor and Consul General he returned to Brussels in 2004 as International Affairs Advisor to the Supreme Allied Commander, Europe - General James Jones. An interesting addition to any diplomat’s CV.
His background is markedly different to that of his predecessor Asif Ahmad who worked for some years as a banker before joining the diplomatic service in 1999. Mark Kent joined the FCO at the tender age of 21. He admits to being a career diplomat and there’s no doubt that his previous postings in such cities as Brasilia, Mexico and Hanoi have prepared him well for the multitude of challenges presented to him and his team on a daily basis in Bangkok. He defends vigorously the many hours spent in the classroom learning the Thai language. “Studying Thai has helped to give me a very important insight into the country, its people and its culture and if my ability to speak the language can help to secure just one major investment deal for Britain then it will have been time well spent,” he says. He is certainly no stranger to foreign language textbooks having previously mastered, to varying degrees, Vietnamese, Spanish, Dutch, French and Portuguese. He also needed to overcome the operational challenges of working in the maelstrom of the EU with his appointment in 1993 as a First Secretary in Brussels some years 24
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Meeting Thailand’s Prime Minister Yingluck Shinawatra
ago with a key role to represent British interests. That gave Mark Kent a privileged insight into the inner workings of the European Union and he
It’s clear that Mark Kent has grasped quickly the challenges and opportunities that lie ahead. He speaks passionately about the role of the BCCT in assisting British business and he’s clear about his own role. “I’m here to promote the United Kingdom as a business-friendly nation”, reflecting proudly upon the UK’s high ranking in the World Bank league table for ‘ease of doing business’. He also encourages pro-active roles for British businesses already established in
A warm welcome for Britain’s new Ambassador from Bank of Thailand’s Governor Prasarn Trairatworakul
Thailand, helping to build the all-important relationships and trust that lead to new business opportunities. He is also a strong supporter of the campaign to fight corruption in Thailand and he made views known in his closing address at a recent national conference that focussed upon the responsibilities of company directors (see page 14). He is keen to remind the business community in Thailand that the UK’s most recent legislation, in the form of the Bribery Act 2010, extends beyond the shores of the UK and regards the new law as a powerful weapon in the fight against corruption. On the day we met at the official residence in Wireless Road the Ambassador had just returned from a briefing with Prime Minister Yingluck Shinawatra at Government House. His hopes of putting those many months of Thai language lessons into practice were scuppered when the PM expressed her preference for conducting the meeting in English – perhaps with one eye focussed upon the subsequent visit to the UK and the audience with Her Majesty Queen Elizabeth on 13th November. The trials and tribulations of Brits abroad inevitably impacts upon the work of Ambassadors and consular staff in popular tourist destinations such as Thailand. Mark Kent has a clear message for all business and leisure travellers arriving in Thailand, stressing the need for example to take out adequate medical insurance before leaving home and to take basic measures during their stay to protect themselves and their valuables.
Flying high in Thailand. Ambassador Mark Kent pictured in the cockpit of a Thai Airways A380.
Passport renewals – the facts The renewal of standard 10-year passports for UK citizens based in Thailand is currently handled by the FCO Regional Passport Processing Centre in Hong Kong. The British Embassy in Bangkok does not issue such passports. In the longer term all passports will be issued in the UK by the Identity and Passport Service – an agency of the Home Office. This centralisation is in part a costsaving measure and also, importantly, a policy designed to prevent passport fraud.
You may renew your passport up to nine months before the expiry date. The unused validity of the old passport will be added to the new one. It is possible in certain circumstances to apply for a second passport to accommodate certain travel itineraries. However, this may pose problems in Thailand where visas are attached to one specific passport number.
More details: http://ukinhongkong.fco.gov. uk/en/help-for-british-nationals/passports/ how-to-apply/thailand/renewals
Emergency Travel Documents (ETD) The British Embassy in Bangkok can assist with emergency travel documentation in exceptional circumstances. You must establish whether the country you plan to visit accepts such ETDs by contacting that country’s Embassy or Consular Office in Thailand. An ETD is valid for only one return journey out of Thailand which can be to a maximum of five destinations. A person may only be issued with two ETDs within a 12 month period. You will need to take with you to the Embassy the following items:
He also outlined the rationale behind the decision to streamline the process of passport renewals, explaining the new system will improve security as well as making important cost savings as part of the government’s austerity programme (see above right).
and Bangkok is one of the UK’s busiest consular posts worldwide’, he writes.
His website message is very clear. ‘Thailand is a favourite destination for UK tourists, with over 800,000 British nationals visiting each year. There is also a significant British resident community. Providing consular assistance to those who get into difficulty is an important part of the Embassy’s work
‘Many problems can be prevented by preparations and precautions, so I would urge prospective visitors to read the travel advice for Thailand at the Foreign and Commonwealth Office’s travel pages before coming. You can also subscribe to the Embassy pages on Twitter and Facebook’.
• completed application form • recently taken passport size photograph • proof of your confirmed travel plans (travel itinerary, hotel booking etc.) • evidence that your passport is unavailable (if you are resident in Thailand, you need to present a police report) • copy of passport data page • payment
More details: http://ukinthailand.fco.gov.uk/ en/help-for-british-nationals/passports/
After just three months or so in the role of Her Majesty’s Ambassador to the Kingdom of Thailand Mark Kent is clearly relishing his new challenge and is reassuringly upbeat about Britain’s drive to attract further inward investment from this country. He’s confident and optimistic of success. As an Arsenal supporter, he’s also used to being patient. The Brief
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Thailand considers new controls on cigarette packs By Alan Adcock and James Evans
A
ustralia is the first nation to require all tobacco products to be sold in plain packaging. From 1 December 2012, tobacco packaging became standardised for all manufacturers. Photographic health warnings occupy 75 percent of the front and 90 percent of the back of the packaging. Product names must appear in a uniform font in the remainder of the pack which itself must be coloured olive green. No famous logos, other branding, trademarks or colours can be applied. The justification given by the Australian government is that branding on tobacco packs leads to an uptake in smokers and reinforces their commitment to smoking itself. The counterargument is that branding is simply about differentiating the brands – and brand loyalty must not be confused with any addictive nature of the product. In juxtaposition to these actions taken by Australia related to cigarette and tobacco packaging, a court in the United States recently invalidated a regulation requiring graphic health warnings to be applied to cigarettes packs in that country. The court found that the U.S. Food and Drug Administration (FDA), which proposed the regulation, could not show that graphic health warnings covering half of the pack would reduce smoking, saying that ‘the FDA has not provided a shred of evidence … that the graphic warnings will di-
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rectly advance its interest in reducing the number of Americans who smoke’. The court also noted the lack of data in favour of graphic health warnings from countries that have implemented them, like Thailand, stating that ‘the dearth of data reflecting decreased smoking rates in these countries is somewhat surprising and strongly implies that such warnings are not very effective at promoting cessation and discouraging initiation’. Thailand already has some of the strictest tobacco regulations in the world. For example, all packs include graphic health warnings that cover 55 percent of the front and back of the pack, smoking is banned in most places and tobacco products are not allowed to be advertised or marketed at all.
In the wake of Australia’s legislation it seems that Thailand’s Ministry of Public Health (MOPH) may also be considering introducing plain packaging. A current draft Tobacco Consumption Control Act is set to introduce more restrictions, including the government dictating the design of tobacco product packaging and facilitating the introduction of plain packaging in Thailand. As this debate pushes ahead there are some important legal and practical issues that need to be given full consideration. The Constitution of the Kingdom of Thailand provides that the ‘property right of a person is protected’ and that a person shall enjoy the liberties to engage in an enterprise or an occupation and to undertake fair and free competition. Arguably, due to the lack of regulatory impact assessments evidencing any correlation between use of trademarks on tobacco and social problems of smoking, such a ban would not be proportional under the Constitution. Trademarks provide substantial benefits to their owners in terms of asset value, licensing value, assignment value and overall goodwill. Importantly, trademarks differentiate the goods of one business from the goods of others, thereby conferring an important valuable benefit to Thai consumers by enabling them to differentiate goods from one company versus another. Just because a good is a controversial product it does not mean that the im-
portant trademark function of indicating quality of a product should not still be afforded to both the public and the trademark owner. By registering a trademark, the trademark owner has obtained the exclusive rights to use and license the use of the trademark in Thailand. A ban on use of trademarks on tobacco products would serve to disallow trademark owners’ use of their trademarks and put those trademarks at risk of being cancelled for non-use. Indeed, as Thailand prepares for accession to the Madrid Protocol system for the international registration of trademarks, Thai companies may choose to use this new international trademark application system as their businesses grow and expand into new overseas markets. However, if their original Thailand trademark is cancelled for any reason, including for non-use, then this will amount to a ‘central attack’ and their equivalent trademarks in those other countries will be cancelled as well. In addition to the protection that a business’ valuable trademarks enjoy under Thai law, they are also protected under international treaties, including the World Trade Organization (WTO) Agreement on TradeRelated Aspects of Intellectual Property Rights (TRIPS). Thai laws and regulations controlling the use of trademarks would bring into question Thailand’s obligations under various Articles of TRIPS, including Article 20 which prohibits unjustifiable encumbrances on the use of a trademark in the course of trade.
Australia is currently dealing with the consequences of enacting plain packaging in the WTO, as three countries have formally requested WTO consultations with Australia regarding its plain packaging measure. In fact, on 28 September 2012, the WTO Dispute Settlement Body agreed to establish a panel to hear Ukraine’s complaint against the plain packaging measures taken by Australia. Loss of the WTO cases and other pending international cases could result in annulment of the Australian law and possible payment of compensation by Australia. Of course, Thailand has also been down this road before when the MOPH proposed putting graphic health warnings on alcohol beverages and a number of countries, including Australia, questioned the proposal in the WTO. Since 2007, Thailand has been placed on the USTR’s Priority Watch List for the world’s most notorious intellectual property violators. Trademarkinfringing products are easily seen around the country today. However, identifying counterfeit, smuggled or other illicitly traded tobacco products will become extremely difficult as plain packaging will remove common product markings. If all packages are identical without security features, Customs authorities will not be able to easily tell a counterfeit from a genuine product. This will also likely increase the ease of infringers to copy such products, which in turn will increase the trade in unlawful products and cause both
confusion in the consumer’s mind about which products are genuine and which are not and lead to a reduction in tax income to the government, as illicit products do not pay government taxes. Overall, Thailand needs to take a pragmatic and practical approach to this issue, rather than simply following one country’s extreme lead or taking directions from ill-informed NGOs. It is important to remember that Australia has a different social, legal and economic make-up to Thailand. As such, Thai authorities will need to ensure any measures they introduce do not end up infringing on the Thai people’s constitutional rights, undermining intellectual property protection in Thailand, violating the country’s international trade obligations or unexpectedly resulting in increased levels of smuggling and counterfeiting of tobacco products into the Kingdom.
Alan Adcock is a Partner and Deputy Director, Intellectual Property, and James Evans is a Consultant at Tilleke & Gibbins in Bangkok. They can be reached at alan.a@tilleke.com and james.e@tilleke.com or at +66 2653 5555.
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EABC drives for new car tax policy
EABC working group meets Thailand’s Minister of Industry MR Pongsvas Svasti.
T
he automotive working group at the Bangkok-based European-ASEAN Business Centre (EABC) has discussed key automotive industry issues with Thailand’s Minister of Industry Pongsvas Svasti. Group members raised a number of issues including standardisation, emission-based taxation and availability of skilled and unskilled labour. The EABC is concerned that Thailand’s automotive industry continues to experience significant shortages of both skilled and unskilled workers and appears to have difficulty in recruiting qualified despite the offer of attractive compensation packages. The EABC is supporting a publicprivate partnership solution through education and training programme and is looking to work more closely with the Ministry of Labour, Ministry of Education and the Thailand Automotive Institute (TAI) on HR development initiatives in response to the needs of the automotive industry. The EABC automotive working
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group is also calling for regulatory alignment through Mutual Recognition Agreements (MRA).
Mutual Recognition Arrangement (MRA) on the automotive products between Thailand and the EU.”
“Onerous regulatory requirements as well as the application of domestic standards that differ from international standards can hinder trade and harm businesses. Automotive manufacturers in Thailand have to face redundant approval or homologation standards, such as requirements for re-testing on products already approved, or separate quality audits.
The EABC is tabling a proposal for a new excise tax policy that movies away from a graduated tax rate based on increasing engine capacity towards a tax that is based upon a decreasing rate of vehicle carbon emissions.
“This renders the compliance procedures not only repetitive but also costly and time consuming. The industry calls upon Thailand to rectify this problem in an expedient manner in order to strengthen the country’s competitiveness as the regional hub of the automotive industry,” says EABC Director John Svengren. “We recommend that the Thai authorities recognise and accept overseas test reports and plant audits. The EABC strongly supports the
As a leader among ASEAN automotive producing countries, Thailand should set the example for excise tax policy that shapes consumption behaviour. Eco Car has been an outstanding success due to its environmental impact and economic impact. EABC recommends that a revised tax policy encouraging CO2 reduction can be beneficial to all stakeholders. This excise tax policy must not be delayed further, but a compromise within vehicle categories possible to encourage passenger car and pickup truck manufactures to mutually benefit.”
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Myanmar must learn lessons from Mongolia By John Boley
I
n mid-2012 Myanmar was without any doubt flavour of the month. A backlog of visa applications, otherwise reputable hotel groups gazumping customers with room rates among the highest in the world, a dearth of seats on flights from Bangkok and a never-ending succession of celebs transiting its suddenly cramped airport at Mingaladon. The reaction to this flood of publicity was disappointment for many as the queue built up to deal with officialdom while the anticipated overhaul of banking, infrastructure and communications failed to deliver an instant transformation. Expectations had been too high; this sow’s ear has not become a silk purse by the simple acts of conferring legitimacy or throwing money. Progress is being made but those who will win in economic terms in Myanmar will be those who are prepared to take a long-term view. Those easily deterred will not be able to countenance the occasional bump in the road, such as October’s renewed clashes between Muslims and Buddhists in the restive west of the country. However (writing before the US election) it seems unlikely that the incoming US president would U-turn on policies now in place to engage and support Burma for the long haul. The comparison between Myanmar and Mongolia is intriguing. Mongolia, diametrically across China from Burma, has an economy ballooning by 21 percent per quarter. As The Economist recently stated ‘it is not just that Mongolia is a treasure chest of geological wealth. It is slap-bang next to the world’s biggest and fastest-growing market for most miner30
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als. Put together Mongolian supply and Chinese demand and Mongolia will be rich beyond the wildest dreams of a population many of whom, a generation ago, saw themselves as nomadic herders’. Brian Fisher, an Australian economist who conducted a study of the economic impact of OT (Oyu Tolgoi, or Turquoise Hill, a desolate spot in the Gobi desert and the site of a massive copper and gold project), says Mongolia ‘sounds like Australia in 1930’. Myanmar could at least match it (given that its population is 20 times bigger), especially on the infrastructure side. Accordingly, everyone is either there or on the way. Despite some assertions that the shyly emerging Myanmar has already been carved up between rapacious neighbours China and India it seems obvious that opportunities abound to provide alternatives. The UK and other EU countries should be in there pitching with the United States. Thai corporations have recent-
ly appeared to take the opportunities on their doorstep rather too much for granted, as if their neighbours would by default turn to them. But competition is fierce, not only from the major trade blocs and China but also from other ASEAN neighbours. In Indonesia, the government has set up state-owned enterprises to help push the expansion of private-sector companies into Myanmar. “Indonesia should be able to take up any opportunity…their current economy is like Indonesia in the 1970s,” says StateOwned Enterprises Minister Dahlan Iskan. Early members of a stateowned network are Bank Negara Indonesia (BNI), construction company PT Wijaya Karya and gas and oil company PT Pertamina and a number of top executives have been in Myanmar for the last six months – tasked with collecting information on how to do business in Myanmar so that a strategy can be devised to penetrate the market, according to Mr Dahlan Iskan. “We are going to ensure our
business in Myanmar will be safe and beneficial for both countries.” In a telling quote, deputy minister for infrastructure and logistics Sumaryanto Widayatin said that Indonesia would reap benefits from Myanmar because the country needed infrastructure. Pertamina and others had already proved their ability to contribute to development in Indonesia and could set an example for Myanmar. BNI would help finance projects initiated by Pertamina and Wijaya Karya. “We have not calculated the planned investment but I can assure you that it will be very big,” he said. “We should have entered the country five years ago. But again, it’s better late than never.” In Malaysia, international trade and industry minister Mustapha Mohamed believes the changes in policy by the Myanmar government have sent a strong signal that the country is serious in attracting foreign investors. He said earlier this year that there were several economic sectors and activities in which local companies and businessmen could invest, including building roads, highways and airports, manufacturing, oil palm, property development projects and oil and gas. “Presently there are 200 Malaysian companies and businessmen there and we want to see more of them in Myanmar,”’ he stated earlier this year. Strategically and resource-wise there is no doubting the rewards available in Myanmar. Resources include tin, antimony, zinc, copper, tungsten and lead, to say nothing of petroleum, timber, coal, marble, limestone, gemstones, natural gas and hydro power. Last year, for example, state-run media trumpeted that SIPC Myanmar Petroleum’s exploration project in Magwe had found gas reserves in the Pahtolon oilfield of at least 909 billion cubic feet and possibly as much as 7.16 million barrels of gas condensate. To oil and gas reserves, add the desperate need for infrastructure. This is one of the world’s poorest and, in many ways, most backward countries (think North Korea without the famine). Britain conquered Burma over a period of 62 years (1824-1886) and incorporated it into its Indian Empire. Burma was administered as
a province of India until 1937 when it became a separate, self-governing colony; independence from the Commonwealth was attained in 1948. But, after the British upped and left, a series of ever more corrupt military juntas built plush housing for themselves in the new and remote ‘capital city’, Naypyidaw, while ignoring the needs of the population of 55 million. According to CIA World Fact Book statistics, Myanmar has less than 2,000 miles of paved roads for a land area of 261,000 square miles. Some 29 percent of the population has still to receive clean drinking water supply. There is a rail network – stretching for more 3,000 miles – but all on a narrow one metre gauge. What Myanmar does have, in addition to its mineral riches, is a long coastline facing India and the west and oil and gas pipelines (gas 1,900 miles; oil 340 miles) China’s ‘bigbuddy’ act is based largely on these pipelines. Beijing sees the opportunity for gas and oil to travel across Myanmar to or from the three ports of Moulmein, Rangoon and Sittwe instead of travelling the much longer distance by sea through the narrow, congested Straits of Malacca, past Singapore and up the long stretch of the South China Sea. China is already a major investor in Myanmar’s gas and oil sector and is likely to be the end user of much of its oil and gas production. State-owned CNOOC is building twin pipelines from the Arakan coast to Yunnan province in south western China.
people’s imagination for decades.” But hotels are not built in weeks (any more than the much-vaunted credit system, which while theoretically in place had at time of writing still not begun to process foreign credit cards). On the plus side land, even good beach land, can be obtained at eye-wateringly cheap rates if you know the right locals to deal with and can come with genuine title. Balancing that is the appalling lack of skilled staff. Essentially, as one local leader told me recently, ‘no-one under the age of 60 is skilled in anything – not even the basics’. This applies as much to chambermaids as to lawyers or any other professionals. Another problem of trying to do business in Myanmar concerns the authorities. Officialdom seems quite happy to retreat to its ‘black hole’ of Naypyidaw; even President Thein Sein is difficult to entice down to Yangon. This is a nuisance rather than a deal-breaker but it adds days, miles and discomfort to the procedures involved. For some observers the biggest concern is the political succession. It is easy to see ‘The Lady’ as a kind of Madiba and hope that Aung San Suu Kyi can replicate Nelson Mandela’s stunning success with the ‘Rainbow Nation’. But can she ensure that, when she retires, her nation will not corrode in the same way that South Africa is now doing? A descent back into corruption and rights violations would act as a deterrent to even long-haulers and embarrass Western governments who have been so swift to stamp their approval.
Travel and tourism is being touted as a veritable goldmine. But the bottleneck being created – try organising a major conference in Yangon in the next six months – may act as a deterrent to many potential entrants. Good quality hotels are scarce. Major hoteliers such as Starwood (Westin and Sheraton) and Marriott plan properties there to compete with the lone big foreign brand, Traders (Shangri-La) in Yangon. “Marriott would love to be there if the conditions are right,” Arne Sorenson, president and CEO-elect of Marriott International told media. “Burma has captured
John Boley is a director of BAM Consulting, which offers ‘corporate hand-holding’ for companies doing business between Europe and Asia. Tel: +66 87 595 4711 Email: John.Boley@BAM2B.com www.BAM2B.com The Brief
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Investors size up Myanmar options By Chris Osborne
M
yanmar’s continuing political and economic reforms and the relaxation of international sanctions have placed the country in the global spotlight as potential investors size up opportunities in what is considered by many to be one of the world’s remaining frontier economies. Yet the attraction of untapped natural resources and markets servicing a population of 60 million is tempered by the knowledge that Myanmar’s legal system remains undeveloped and requires considerable effort to shape it into a system which addresses the legal and commercial expectations of international investors with a degree of certainty similar to other developing economies. Such absence of information is likely to prove particularly challenging to foreign investors conducting due diligence on potential local partners in the country which is, as experience has taught us, an important step in any investment in an emerging market and, in the case of Myanmar, one which is fundamental in view of the new Foreign Investment Law, which was approved by the country’s President on Friday 2nd November and which awaits the introduction of ministerial rules to establish limits on foreign participation in restricted business sectors such as agriculture. Timing on other key pieces of legislation remains to be seen. Such absence of information is likely to prove particularly challenging to foreign investors conducting due diligence on potential local partners in the country which is, as experience has taught us, an important step in any investment in an emerging market and, in the case of Myanmar, one
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which is fundamental in view of the new Foreign Direct Investment Bill, which was approved by the country’s MPs on 7th September and limits foreign participation in certain businesses to a maximum of 49 percent. Timing on other key pieces of legislation remains to be seen. Myanmar has announced wholesale reform of its legislation and is prioritising new laws addressing foreign investment, mining and employment. As is the case in most countries, it is unlikely these laws will be drafted overnight, despite the authorities’ optimism as to the timeframe within which the most important new measures can be put in place. The dilemma faced by many investors in the energy, mining and service sectors is therefore whether to enter the market now and accept the current regulatory risk, or to enter after the new laws have been enacted, accepting that others may, by taking this risk, also benefit from a first‑to‑market advantage. Our in‑country discussions suggest there is a third way, offering a combination of both of the above approaches. A consistent message from Myanmar government officials at conferences and presentations in Myanmar and neighbouring countries throughout 2012 has been that the procedure for investment (in particular in the mining and energy sectors) requires a formal approach to be made at ministerial level via the embassy of the investor’s country. Although this approach may seem overly formal to some, the advantage is direct access to senior level officials with whom investors can discuss proposed investments. The perspective conveyed to us by Myanmar
government officials and diplomatic personnel in Myanmar is that it would be advantageous for investors to have concrete investment proposals ready to discuss at the first meeting, rather than to regard the initial meeting as merely introductory. Investors targeting Myanmar as a market for obsolete technologies are likely to be disappointed. The Myanmar government is presently very sensitive to the views of its citizens and is unlikely to embrace any technology which exposes its citizens to hazards not found in developed countries. Proposals for a large conventional coal fired power plant have already been rejected by the Myanmar government, and investors in the mining sector should expect to be requested to demonstrate minimal environmental and social impact in connection with their projects. The implied advantage of meeting with government officials while the new laws on investment, employment and mining are being drafted is that investors will have the opportunity to shape policy by presenting approaches taken in other jurisdictions. As enthusiastic as Myanmar’s officials are to develop workable legislation, the result of decades of isolation from foreign private investment is that there is insufficient in‑country expertise for Myanmar to draw on during a public consultation phase, and contact with foreign experts in the field is likely to be one of the ways in which Myanmar is able to gather information required to progress foreign investment policy. In addition to the opportunity of being able to shape policy, making an early approach to the relevant ministry is also likely to provide inves-
EU backs Laos planned accession to WTO T
he European Commission is backing the decision by the World Trade Organisation (WTO) to accept Laos as the 158th member of the global trade body. Speaking in advance of the ASEM summit in Vientiane, EU Trade Commissioner Karel De Gucht said, “The WTO has put the spotlight on the important role for least-developed countries in the multilateral trading system. This is fully in line with the European Union’s belief that trade is a key driver to boost the economies of developing countries.” An EU press release states that ‘after Vanuatu and Samoa, Laos (Lao People’s Democratic Republic or LAO PDR) is set to be the third Least Developed Country (LDC) to join the WTO over the past two years. By providing financial assistance in
tors with the advantage of information asymmetry ‑ the lack of detailed publically available information will continue to be a barrier to investors who seek to access information remotely. There is no doubt that investment in Myanmar at this early stage in its transformation requires a certain appetite and readiness for risk, perhaps over and above that which foreign investors may be used to in other developing economies. In that context, there is no substitute for taking the time and making the journey to Myanmar to investigate the opportunities, familiarise oneself with the business landscape and begin building the connections and relationships at all levels that will be vital to any investment.
EU - Laos trade
Thai PM Yingluck Shinawatra and Foreign Secretary William Hague in Vientiane
various trade fields, the EU has been supporting the country throughout its accession process. In the years to come, the EU will remain an important trade partner for Laos providing support after its accession and ensuring its full integration into the multilateral trading system’. Laos must ratify its accession package by 24 April 2013. It will become a full member of the WTO 30 days later. Since its request for accession in
Our recommendation is that investors serious about Myanmar should arrange in‑country meetings now rather than after the new laws have already been passed.
Chris Osborne is a Partner at Watson, Farley & Williams (Thailand) Ltd. He can be contacted at: cosborne@wfw.com T: +66 2 665 7800
• As a least-developed country, Laos benefits in the EU from the Everything But Arms Initiative (EBA). Under this most favourable regime of the EU’s Generalised Scheme of Preferences (GSP), the EU grants Laos full duty-free, quota-free access to its Single Market for all originating products, except arms • In 2011, total Laos exports to the EU were valued at €221 million. EU exports to Laos amounted to €197.4 million • The EU is Laos’ fourth most important trading partner (5.23%), after Thailand (52.8%), China (17.9%) and Vietnam (8.4%)
1997, Laos has engaged in a process of reform to make its legislative and administrative structures consistent with the WTO framework.
All references to ‘Watson, Farley & Williams’ and ‘the firm’ in this brochure mean Watson, Farley & Williams LLP and/or its affiliated undertakings. Any reference to a ‘partner’ means a member of Watson, Farley & Williams LLP, or a member of or partner in an affiliated undertaking of either of them, or an employee or consultant with equivalent standing and qualification. This briefing is produced by Watson, Farley & Williams. It provides a summary of the legal issues, but is not intended to give specific legal advice. The situation described may not apply to your circumstances. If you require advice or have questions or comments on its subject, please speak to your usual contact at Watson, Farley & Williams. This publication constitutes attorney advertising. © Watson, Farley & Williams 2012
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Asia Pacific poverty in decline – ESCAP D
etails published in the latest Statistical Yearbook published by the United Nations Economic and Social Commission for Asia and the Pacific indicate that progress in reducing development gaps in Asia Pacific has been impressive but uneven. Asia and the Pacific has made impressive gains in improving the living conditions of its people and promoting economic growth but faces wide development gaps, particularly in basic health care and gender equality. According to ESCAP, the region had the lowest unemployment rate of 4.6 percent in 2010 compared to 9.7 percent for Europe, 9.5 percent for North America, 8.1 percent for Africa and 7.2 percent for Latin America and the Caribbean. The region also reduced, by more than half, the number of people living in extreme poverty (defined as those living on less than PPP $1.25 per day) from about 1.7 billion in 1990 to 0.8 billion in 2010. The Asia Pacific share in global extreme poverty declined from 71 to 57 percent over this period. The region has also made significant progress in child survival over the past two decades, reducing under-five mortality from 83 deaths per 1,000 live births in 1990 to 42 deaths per 1,000 live births in 2011, slashing infant mortality from 61 deaths per 1,000 live births to 33 over the same period. Likewise, maternal mortality levels were more than halved from 379 deaths per 1,000 live births in 1990 to 146 per 1,000 live births in 2010. There are, however, wide disparities in social and economic development within Asia Pacific. 34
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the Islamic Republic of Iran, Lao PDR, Mongolia, Nepal, Pakistan, Papua New Guinea, Sri Lanka and Timor-Leste. ESCAP also states that Asia Pacific greenhouse gas emissions continue to increase but at a lower rate. The annual growth rate of regional co2 emissions fell from 4.1 percent in 2008 to 2.6 percent in 2009. China was the world’s largest greenhouse gas emitter in 2009, releasing an estimated 6.8 billion tonnes of co2, 1.1 billion tonnes more than all of North America. However, per capita emission in North America was three times that of China.
In 2011 Afghanistan, followed by Pakistan, Tajikistan, Myanmar, India, Timor-Leste and Bhutan, had the highest under-five mortality rates ranging from 101 to 54 per 1,000 live births. The region accounts for 37 per cent of total world maternal deaths, with its maternal mortality ratio ranging from 260 maternal deaths per 1,000 live births in the low-income countries to just 8 in the high-income countries. Despite increased access to basic amenities, some 380 million people in the region lacked access to improved water sources and 1.74 billion lacked access to improved sanitation in 2010. Relative female participation in the work force in the region also fell from 65 employed women per 100 employed men in 1991 to 62 employed women per 100 employed men in 2010. The report also notes the ‘very limited’ access by women to land in Afghanistan, Bangladesh, Fiji, India,
North and Central Asia had the highest carbon intensity with 824 grams of co2 emissions per 1000 dollars GDP while South-East Asia had the lowest carbon intensity with 391 grams of CO2 per 1000 dollars GDP. Although the Asia Pacific region as a whole has increased its forest area by nearly 90,000 sq. km over the past decade, south east Asia lost about 332,000 sq. km, an area about the size of Viet Nam. On the other hand, East and North-East Asia added an estimated 454,284 sq. km of forest, an area larger than Uzbekistan. Headquartered in Bangkok, United Nations ESCAP is the largest of the UN’s five Regional Commissions in terms of its membership, population served and area covered. The only inter-governmental forum covering the entire AsiaPacific region, ESCAP works to promote sustainable and inclusive economic and social progress. More information on ESCAP is available at www.unescap.org
UK real estate market remains hot with overseas investors By Nicholas Edmondes
A
stable political and respected legal system has enabled the UK to retain its popularity with overseas investors and in this article we identify the steps to be undertaken before buying in order to facilitate a successful transaction. The starting point is deciding what asset to buy and ensuring that it is saleable when the time comes to dispose of the investment. The best class of asset is ‘freehold’. This gives the owner near absolute ownership of and control over land. Some institutions, such as local councils, are either unable or unwilling to part with the freehold and so may grant a ‘long leasehold’ interest to an investor (typically for 99 years or more) in exchange for a premium, allowing the investor to receive rental income. In addition, the age, location and quality of tenants in a property will have a bearing on its value. Emerging trends are increased demand for newer prime office or retail developments with strong tenant covenants (and the buildings meeting or exceeding the latest energy efficiency requirements) with secondary or tertiary developments in less attractive locations and weaker tenant covenants being marked down. The second issue is how the investor sees its role in holding the property; be it as a ‘passive’ investor (taking a low profile and perhaps granting a long lease of the whole of an office building at a premium to a tenant who will pick up all liabilities); as an ‘active’ investor (being much more
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hands on such as with a shopping mall, where shorter term leases are granted and services provided to tenants in exchange for payment); or as a ‘developer investor’ (be it through ‘forward funding’ where the investor is involved in funding the development or ‘forward purchase’ where a pre-let is in place and the investor does not provide interim funding). Alternatively, despite the greater risks involved, the role of developer can be attractive for those investors with a clear vision of the bespoke project they want to deliver. Thirdly, an investor needs to choose the vehicle it will use for buying property and where it will be resident. Tax treatment will often be the guiding factor. Structures range from a simple non-UK resident corporate entity, to joint venture vehicles and
offshore investment funds. Each needs to be tailored according to the investor’s UK activities, commercial objectives and UK tax treatment. It should also be noted that the UK Government has recently increased the potential UK tax cost of investing in UK real estate. The potential top rate of Stamp Duty Land Tax (SDLT), which applies to the purchase of residential accommodation in the UK worth more than £2M is now 15%. This rate applies if the investor is what is known as a ‘non-natural person’ (which would include a company, wherever resident). The UK Government is also proposing to charge what is essentially an annual fee for non-natural persons owning UK residential accommodation worth more than £2M, and to charge
UK capital gains tax on such persons, if non-UK resident investors, on the sale of UK residential accommodation for more than £2M. These proposals, which are due to be introduced in April 2013, are currently the subject of consultation, but the likelihood is that the tax cost of owning and selling such properties will increase in the years to come. Fourthly, it is essential to assemble a team of UK professional advisors who can guide the investor through the surveying, legal and tax issues. Ideally, they should be in place before the site has been identified. Once the property has been chosen then the agent and solicitor should ensure the ‘heads of terms’ for buying the same meet with agreed requirements, particularly as to timings for exchange and completion. Likewise, comfort should be obtained that the seller is ready to proceed quickly. Funding is the fifth issue. The investor may be able to self-fund from reserves or have raised equity finance. Alternatively, it could choose either conventional debt financing (the debt being secured on the property and interest paid on the debt) or Shariah compliant lending. Once again, the UK tax implications of funding structures need to be considered. The sixth point to consider is the level of due diligence to be undertaken. Where external funding is involved then this may be more detailed than with self-financing. The UK has a long established system enabling searches of public records to establish if there are any problems with property, such as lack of any planning consent or, say, subsidence from historic mining. In addition, there may be matters not revealed by searches (such as boundary disputes) on which a buyer’s solicitor would raise enquiries of the seller and these need to be considered together with the site survey. Prior to purchase, the solicitor would prepare a report on all relevant matters both for the buyer and any funder so that the decision can be taken whether or not to proceed. The seventh matter to consider is whether any consent is required from
any third party (such as the landlord of a long leasehold property) and, if so, how quickly it can be obtained. An important consent is planning permission for development, but there may also be restrictions on how the land can used in order to protect the interests of adjoining landowners. The eighth issue is the sale contract. This document governs the relationship between seller and buyer and crucially sets the financial terms and completion date and apportions risk between the parties. For example, a site may historically have been used for industrial processes that could have caused pollution. A buyer may be prepared to take on the liability for cleaning up such a site if this is reflected in a price reduction. Finally, there will be post-completion tax issues to consider. The most immediate is SDLT which is levied on any purchaser of UK real estate, regardless of whether he is resident in the UK or not. The level of tax depends on the amount of purchase price and, as mentioned above, can reach up to 15 percent of the price. Owner occupiers are liable for business rates (on multi-let properties the individual tenants will be responsible) but the UK Government has introduced ‘enterprise zones’ with more flexible
planning and tax regimes and reduced rating liabilities which may influence investment decisions. In addition, where an investor controls the energy supply to a multi-let commercial development, then it could be liable to pay an environmental tax under the ‘Carbon Reduction Commitment’. Potentially this is recoverable from tenants, though the scheme is still in its infancy and it remains to be seen how it will work in practice. For further information please contact Nicholas Edmondes, William Clements or Andrew Williams, lawyers in the London office of the international law firm and BMCC member Trowers & Hamlins LLP.
Nicholas Edmondes may be contacted at the principal office of Trowers and Hamlins in London. Tel: +44 (0)20 7423 8203 Email: nedmondes@trowers.com
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How QE3 can affect your savings By Eric Jordan
F
or several decades the QE2 for many of us was a proud ocean liner. Today people are more likely to associate QE2 with the second round of quantative easing (read for that ‘printing money’) by the US Federal Reserve. You may wonder why this should be our concern. QE3 is the third attempt by the ‘Fed’ to stimulate the US economy and reduce the high rate of unemployment. This round is different from QE1 and QE2 in that it is intended to continue indefinitely until unemployment falls to an acceptable level. It consists of the purchase from banks of mortgage securities to the value of $40 billion a month. Will the move be successful or is it just a political ploy? The immediate reaction of stock markets on September 13, the day of the announcement, was positive. On the surface! But many analysts saw things differently. Forbes for example pointed out that the ‘Real Dow’ actually fell in reaction to the announcement. The ‘Real Dow’, which is the Dow Jones Industrial Average divided by the price of gold, fell by 0.65% on September 13, the day that QE3 was announced. While the Dow gained 1.6% on the day, gold went up by 2.2%. How money can fall in value Marc Faber, publisher of the Gloom, Boom & Doom Report, told Bloomberg that “the fallacy of monetary policy in the U.S. is to believe this money will go to the man on the street. It won’t. Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down”. With Obama now re-elected, it is very likely that Mr. Bernanke will also stay in office. An interesting point to note 38
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is that since Bernanke was appointed in early 2006, the price of gold has increased from $570 an ounce to more than $1,700 an ounce. In the same period, the price of silver has surged from $9.70 an ounce to over $32 an ounce. After QE3 was announced, gold quickly increased by $38, while silver jumped more than $1. The US Dollar has fallen against most currencies, but not really against the Thai Baht.
Cash reserves are essential but beyond that cash is a poor long term investment. For real long term growth it must be put to work. A regular savings or pension plan is one way. The performance of these plans has not been inspiring over the past decade but it is still a good way to build up wealth gradually from spare income. Larger sums of money could go into a portfolio of diverse assets, the bulk of which should consist of traditional stocks and bonds. ‘Real assets’ will hold their value
The US debt now stands at over $16 trillion. Check out http://www.usdebtclock.org/ for a fascinating display showing the latest figures in real time. How politics impede progress What we are seeing throughout the world are policies that are driven by politics, rather than by commonsense. Politicians seeking popular support will always resist austerity plans or measures that would help the economy and eventually the people. Fuel subsidies adopted by many Southeast Asian governments are an example. The reluctance of the US to tackle their debt problem is another. Europe’s woes today are also due to excessive borrowing and spending. If we handled our finances the same way we would be leaving a terrible legacy of debt to our grandchildren.
Printing money does not create wealth. It may provide a temporary stimulus but it is not adding real value. To protect ourselves against the ravages of inflation, which will surely return, we should look to real assets. Land and property is an obvious one for the long term. Investments in gold and precious metals will also give protection against the fall in value of money. You don’t necessarily have to buy the physical products but can invest via bullion, exchange traded funds or mining funds. The same applies to oil which you can access via energy funds. Diversification, as always, is the key to managing risk. ‘Collectibles’ such as stamps, works of art, fine wines and vintage cars offer further possibilities but that is another story……
So what should we, as investors, be doing? We don’t need to make the same mistakes as governments. We can avoid getting into debt and if we are in debt we can make an effort to get out of it. Politics should not come into it – unless there are similar issues within the family! Assuming there are no debts, other than perhaps a manageable house loan, the challenge is how to make the best of disposable income.
Eric Jordan is Managing Director of Professional Portfolio International (PPI) with offices in Thailand, Malaysia and Indonesia. Tel: 02 664 0968 Email: eric.jordan@ ppi-advisory.com
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Royal engagement for Thai Prime Minister
Yingluck in London photo spread David Cameron says... ‘... It’s a great privilege and pleasure to welcome the Prime Minister of Thailand here to Number 10 Downing Street. We’ve started our discussions and we’ll be talking further later. We’re starting a strategic dialogue between Britain and Thailand to cover all the elements of our relationship. Clearly, there’s an important economic relationship. We’re both big investors into each other’s countries, we want to see that expand and I’m delighted that, Prime Minister, you brought so many strong Thai businesses to Britain this week and I look forward to doing the same when I come to Thailand in the future. We have a strong people to people relationship, there are many British visitors to your country and many Thai students and Thai businesses here in Britain. Also I want us to have a strong strategic dialogue where we talk about all of the security issues that we face around the world, but perhaps particularly in your region where we can discuss the transition in Burma and the other regional issues which will be very important to address later today. So thank you very much for coming, you’re very welcome’.
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Yingluck Shinawatra replies... ‘... Thank you very much Prime Minister. First of all I think we would really like to express the appreciation from our government for the very warm welcome and hospitalities. And also I have to give congratulations on the success of the Olympics and Paralympics. And this trip will be the proudest in my life: I have been granted an audience to Her Majesty, Queen Elizabeth II. I think this will be the proudest moment in my life. And also – we look forward to having a strategic dialogue with you . So we believe that this is another way for us to keep growing on the collaboration that we have and also to keep increasing the trade and investment between us. And also I think on the strong people to people relationship we have, I think here is the preferred destination for Thai people and Thai students. So we believe that the success of this bilateral will be to expand our areas of collaboration. And I also extend my invitation for you Prime Minister to come on an official visit to Thailand’.
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Foreign interest set to increase in Thailand’s insurance sector By Stephen Frost
T
he news that Prudential’s Thailand subsidiary will acquire Thanachart Insurance for THB 18 billion (approx. US$600 million) once again focuses attention on Thailand’s insurance industry and its potential attractiveness for foreign investment. The transaction is predicted to double Prudential’s share of the Thai insurance market. In this article, we discuss the nature of Thailand’s insurance industry and the current permitted levels of foreign investment in a Thai insurance company or insurance brokerage. Thailand has 19 life insurers and 35 non-life insurers (see box out). Some are already linked to foreign insurers and others are linked to Thai banks or financial groups. But there are amongst them some that are undercapitalised, family controlled and do not have a foreign strategic partner. These are potential targets for foreign acquisition or joint ventures with foreign insurers. Foreign ownership requirements for life and non-life insurance businesses were last revised in February 2008. At least 75 percent of the shares must be held by: (a) Thai individuals or Thai nonjuristic partnerships in which all the partners are Thai, and/or (b) an entity registered in Thailand in which (i) a person in (a) has more than 50 percent of the shares, or (ii) a person in (a) or an entity in (i) has more than 50 percent of the shares 42
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However, the OIC (Office of the Insurance Commission) as industry regulator has power to permit up to 49 percent foreign ownership and to allow up to half of the directors to be foreign. The Finance Minister, on the recommendation of the OIC, has the discretion to permit greater foreign ownership and a majority of foreign directors where the operation of the company may cause loss to insured parties or to the public. Such approval may be granted subject to conditions or for a limited period of time. Existing insurance companies have until 2013 to adjust to the new foreign shareholding and director requirements. If the requirements are still not complied with at that date, the company will not be permitted to open new branches. All insurance companies must convert to public company status by February 2013. If a company does not do it may continue to operate for a further three years but may not issue new policies. Failure to convert to public company status by February 2016 will mean that the company will lose its licence to operate an insurance business. With effect from December 2011, the permitted foreign ownership percentage of insurance brokerages was increased from 25 percent to 49 percent. It is no longer a requirement for 75 percent of the directors to be Thai. Directors with signatory power must have passed the insurance examinations set by OIC, the Thai insurance regulator. Brokerages may operate other types of business with the OIC’s permission and may also hold li-
cences for both life and non-life business. Brokerages now have to submit details of their business operations containing specific information with applications to renew their licences. All brokerages are required to maintain a capital fund, the size of which will depend on their commission income. All brokerage employees who conduct brokerage must hold an individual brokerage licence. The potential for foreign investment in the Thai insurance sector is clear and foreign insurers will surely be looking at the industry after such a significant investment by Prudential. This, coupled with recent changes to the permitted levels of foreign ownership and the requirement for companies to convert to public company status, should lead Thai insurers to look for a foreign strategic partner to upgrade their products, marketing and strategic direction, in order to compete with larger competitors who already have a foreign partner.
For further information, please contact Stephen Frost by email at sfrost@bia.co.th or telephone (66) 2 231 6201/6455. Bangkok International Associates has updated its Thailand Business and Legal Guide and may be downloaded from www.bia.co.th.
Planning to do the IB? KIS International School is offering IB Diploma Scholarships Email today to apply for 2013 admissions@kis.ac.th
think, therefore IB
World School
Accredited
www.kis.ac.th Tel +66 (0) 2274 3444 The Brief
Issue 6/2012
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IATA chief calls for airports development T
he International Air Transport Association (IATA) is urging Asia Pacific aviation leaders to focus on airport and air traffic management infrastructure as the region’s demand for connectivity continues to grow. “Aviation is a vital part of Asia’s economy, supporting 24 million jobs and nearly half-a-trillion dollars of GDP. Connectivity, facilitated by aviation, is a critical link to markets and a generator of wealth, both material and of the human spirit. Ensuring the timely development of sufficient and costefficient infrastructure capacity is a priority for the continued successful growth of air transport in Asia-Pacific,” said Tony Tyler, IATA’s Director General and CEO. Tyler was speaking to delegates at the Association of Asia Pacific Airlines (AAPA) Assembly of Presidents in Kuala Lumpur. IATA is advocating a prudent approach to private investment in the development of airport infrastructure to support demand growth in the Asia Pacific region. The comments come as a trend is emerging across the region with governments in Vietnam, Indonesia and the Philippines all considering the participa-
Hong Kong International Airport
tion of private investors as they plan for the development of airport infrastructure. The Korean government, for example, is considering private equity participation in Incheon airport.
effective economic and service-level regulatory framework to ensure that the national interest is well protected. That means ensuring that air connectivity is both cost-effective and efficient,” added Tony Tyler.
“I am not advocating for or against private participation. But there have been enough mistakes made when engaging the private sector in airport development. These should not be repeated. When governments work with private investors to develop infrastructure they must establish an
Tyler cited the example of Delhi airport, where the 46 percent concession fee is making the airport unaffordable for airlines. Despite several appeals from the industry, the Airport Economic Regulatory Authority approved an increase of 346 percent. “Private sector participation was able to build a great hub facility. But the framework for economic regulation is not sufficiently supporting the long-term need for cost-efficient connectivity to fuel economic growth,” said Tyler.
Bangkok-based lawyer Stephen Frost has joined the BCCT Board. Stephen, a regular contributor to The Brief, replaces Colin Hastings who tendered his resignation in October. Stephen has worked in Thailand for some 19 years and is a Director of Bangkok International Associates – an independent legal practice. Stephen has advised the Chamber on a wide range of legal matters and has served on the BCCT events and property committees.
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He also noted that when the Hong Kong government looked at airport privatisation in 2003-4, the conclusion was to keep Hong Kong International Airport fully under government ownership as the best way to ensure that it delivered maximum benefit to the Hong Kong economy.
The British Council is planning an UK alumni reunion on 19th January 2013 at the Centara Grand at Central World, Bangkok. BCCT members will have the opportunity to network with Thai-UK alumni at this event. The annual networking also proves to be a tremendous opportunity for meeting old friends and making new contacts. More details: 02 657 5678 or email ukalumni@britishcouncil.or.th
Britain in South East Asia (BiSEA) Cambodia British Business Association of Cambodia c/o Top Recruitment Cambodia 592, Building F, Phnom Penh Centre Corner Sothearos & Sihanouk Boulevards, Phnom Penh, Cambodia Tel: 855-23-997-492 Fax: 855-23-997-493 Email: secretary@bbacambodia.com Website: www.bbacambodia.com Chairman: Tom Sterling Committee Secretary: Kevin Britten Indonesia British Chamber of Commerce in Indonesia Wisma Metropolitan 1, 15th Floor, Jl. Jend, Sudirman Kav 29-31 Jakarta, Indonesia 12920 Tel: 62-21-522-9453 Fax: 62-21-527-9135 Email: bisnis@britcham.or.id Website: www.britcham.or.id Chairman: Haslam Preeston Executive Director: Chris Wren Malaysia British Malaysian Chamber of Commerce E04C1, 4th Floor East Block Wisma Selangor Dredging, 142-B Jalan Ampang 50450 Kuala Lumpur, Malaysia
Tel: 603-2163-1784 /1786 Fax: 603-2163-1781 Email: britcham@bmcc.org.my Website: www.bmcc.org.my Chairman: Dato Larry Gan Director, Business Development: Molly Jagpal Philippines British Chamber of Commerce of the Philippines c/o The British Embassy Manila 120 Upper McKinley Road McKinley Hill, Taguig City 1634 Metro Manila, Philippines Tel: 632-858-2255/858-2372/858-2373 Fax: 632-858-2390 Email: secretariat@bccphil.com Website: www.bccphil.com Chairman: Keith Perrin Executive Director: Alison Doig Henderson Singapore British Chamber of Commerce in Singapore 138 Cecil Street, #11-01 Cecil Court Singapore 069538 Tel: 65-6222-3552 Fax: 65-6222-3556 Email: info@britcham.org.sg Website: www.britcham.org.sg President: Mr. Steve Puckett Executive Director: Brigitte Holtschneider
Thailand British Chamber of Commerce Thailand (BCCT) 7th Floor, 208 Wireless Road, Lumpini Pathumwan, Bangkok 10330 Tel: 66-2651-5350-3 Fax: 66-2651-5354 Email: greg@bccthai.com Website: www.bccthai.com Chairman: Simon Landy Executive Director: Greg Watkins Vietnam British Business Group Vietnam Ho Chi Minh City G/F 25 Le Duan Blvd, District 1 Ho Chi Minh City, Vietnam Tel: 84-8-3829-8430 Fax: 84-8-3822-5172 Email: execdirector@bbgv.org Website: www.bbgv.org Hanoi 67 Le Van Huu, Hai Ba Trung, Hanoi, Vietnam Tel: 84 4 6674 0945 Chairman: Patrick Regis Executive Director: Jakki Lydall
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Helping the Needy
KIS working to help refugees in Bangkok By Michael Hirsch
I
magine being woken in the middle of the night, and your father telling you that ‘it’s time to go. We must leave’. Earlier in the day, your father was approached and told that your family’s property would be confiscated and that if you didn’t leave you would all be killed.
from Myanmar in the refugee camps on the Thai borders few know that in Bangkok there are over 2,100 urban refugees, according to the UNHCR. These asylum seekers enter blindly into the country with little to no money, not knowing the language and usually they end up asking around and finally ending up on the doorstep of Asylum Access, the Jesuit Refugee Services, or the Bangkok Refugee Center.
Your father has been on the phone all afternoon and evening calling in favours from friends to pull the money together to get you out of the country. He has finally scraped the cash together and you are off to the airport leaving everything behind that you can’t carry. Your father has purchased last-minute tickets to Thailand – it’s one of the cheapest countries to get to – and you can get a 30 day visa for tourists when you arrive. This scenario plays out every day and Bangkok takes on a huge number of asylum seekers – with large groups of Christians and Muslims fleeing Muslim extremists in Pakistan and others fleeing Sri Lanka where they have
We’ve written this article in the hope that once more people are aware of this problem more people can get involved in supporting these families in need. Here are a few simple things that you can do to help: The current GSP scheme covers three elements: • Encourage your school to consider starting a refugee
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angered the wrong faction in the ongoing fallout from the country’s civil war.
These organisations provide great help but there is great need. Asylum Access and Jesuit Refugee Services will meet with these families and help them put together their case to be heard by the UN. If their case gets heard and the UN agrees that they face persecution or grave danger if they were to return home, they will be granted refugee status by the UN.
Although many know of the approximately 100,000 refugees
This is a step in the right direction but the process of getting placed in a new country frequently takes close to six years. In the meantime, since Thailand is not a sig-
scholars program. Many schools can accommodate these students, and all schools benefit from having hardworking students • Make a donation to Asylum Access (www.asylumaccess.org) -they provide free legal support to families applying for refugee status • Make a donation to Jesuit Refugee Services (www.jrsap.org) - they provide legal support to refugees while they are waiting to be placed
• Volunteer with or donate to Life Raft International (liferaftinternational.org) or In Search of Sanuk (www.insearchofsanuk.com) both groups help support refugee and asylum seeking families with basic necessities and access to basic educational services • Volunteer with or donate to the Bangkok Refugee Center (email Father John Murray at: fjyogi@yahoo.com.au)
Care and comfort at Shalem House By Peter Cook
C
hildren and families with cancer or other serious or terminal sicknesses from provinces around Thailand often come to Chulalongkorn Hospital Bangkok for treatment. However, for many, it can be a traumatic experience. The worry about the treatment is enough but, on top of that, is the disorientation of arriving in the bustling city of Bangkok and then finding a good and safe place to stay. There is also the considerable financial burden for them. Shalem House provides a safe place for such families - a place of refuge and support. Shalem House is part of Rainbowland Community Services, the social outreach foundation of The
natory of the UNHCR agreement (presumably due to its proximity to Myanmar, Laos, Cambodia, and Vietnam), you have a weird quasi- legal status where you can’t work, your children have no access to formal schooling, you have no access to government assistance and you can be arrested at any time and held in the Immigration Detention Center indefinitely under prison-like conditions. At KIS International School we became aware of the plight of children associated with these families through families that attend our school that are affiliated with the United Nations and various NGOs. Since 2007 KIS has had a special scholarship for
Anglican Church in Thailand (and Christ Church Bangkok) and run by the foundation’s social worker Khun Jarin. The house is usually full, often with around 60 people at a time living there. Alongside providing food and shelter Jarin and team offer support, listening and counselling. Jarin is often the person asked by the hospital to follow up after any traumatic diagnosis or a tragic death. Her skills are considerable and her heart is huge. As part of the care and support, families are visited in hospital and there is a programme of play therapy with children. Jarin frequently helps families transition back to their village and to make the connections needed with local authori-
refugees and, since 2009, we have had two places available for refugee scholars. We are proud to have supported four refugee students with 100 percent-plus scholarships so that they have been able to continue their education while waiting to be placed. For us, it has been an incredible experience. The students and their families have been strong community members and all of the students have gone on to great academic success. We have two IB Diploma candidates that are predicted to not only earn full IB Diplomas but also to exceed the international average. The students have
ties. There is often a follow up visit. It is no wonder that Chula Hospital refers many to Shalem House and their care. Visiting Shalem House is always a humbling experience. It can be both heart-wrenching and heartwarming as is often the case when such love and care is to be found amongst the most vulnerable. The foundation also offers support and assistance to other needy Thai people who seek help and especially from the slum areas of the inner city.
Reverend Peter Cook is Vicar of Christ Church, Bangkok
brought incredible work ethics, diverse perspectives, and a love and appreciation for learning. We feel like it’s been a great opportunity for us to lead by example and to live our mission. In recent years, through working with our refugee families, we have become more aware of refugee issues. Although we are proud of what success we’ve had we realise that there is so much more that can be done. Through our MYP and DP’s academic programmes students have become involved in running a Saturday school for young children, refurbishing old computers to make donations and various campaigns to raise greater awareness of refugee issues.
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Helping the Needy
UK volunteers bridge the language gap in Thailand I
t is generally acknowledged that, whatever their theoretical understanding of English, most Thai youngsters lack the confidence to actually speak the language. Giving them that confidence is what the SET Foundation’s Volunteer Teacher Programme is all about. The programme has been sponsored by the BCCT since 2003 and the Chamber has so far sponsored 24 volunteers via an annual grant to SET. The volunteers - usually girls - are from the UK and are in their ‘gap year’ before starting tertiary studies. They are chosen for SET by the UK’s Project Trust organisation which sends 200 volunteers to 20 developing countries every year, including 18 to Thailand. SET’s two volunteers spend a year teaching English conversation in schools, organise English camps, one-on-one language clinics and many other activities geared towards increasing speaking confidence. The programme has proved to be a great success, not just for the students but also for the volunteers themselves. They have the challenge of living and working for a year within a culture very different to their own and they respond remarkably well. They understand that they are not only volunteers but also young ambassadors for the UK. In SET’s programme the volunteers teach at inner city schools in Nakhon Sawan, where SET is based. They also teach for several hours each week at a school for novice monks supported by the foundation. This is a small programme with a major impact. Even after a few weeks 48
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the improvement in the students’ confidence is often amazing. Once they overcome their shyness they often progress very quickly. They begin to take real pleasure in being able to speak English, even in a basic way,
and become keen to improve. That’s due to the volunteers’ own enthusiasm, their out-going personalities, fun teaching methods and their determination to achieve something worthwhile during their year here.
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Member News
New British Council branch gets royal backing H
er Royal Highness Princess Maha Chakri Sirindhorn has presided over the opening ceremony of the new British Council Thailand (BCT) branch at Paradise Park shopping mall in eastern Bangkok. The new branch is helping to meet the increased demand for English language skills from residents living in that part of the city. The Princess was welcomed by UK Ambassador Mark Kent, British Council Thailand Country Director Chris Gibson and Deputy Director Duncan Wilson. They demonstrated to Her Royal Highness some of the highlights of BCT’s work in Thailand and its support for Thailand creative industries – including the project ‘English for Thailand’s UN Peacekeepers’ launched earlier in 2012 in collaboration with the Thai Ministry of Foreign Affairs, Royal Thai Police and Royal Thai Armed Forces. The project is designed to prepare participants for the UN Police selection test.
Princess Maha Chakri Sirindhorn performs the official opening of the new British Council branch.
The Thailand English Teaching project involved UK undergraduates and recent graduates assisting with the teaching and learning of
A new British Council Arts initiative took place in October, with the first visit to Thailand by the UK’s leading multi media artists The Light Surgeons. In town to research venues and potential partners for a future collaborative work, the main feature was an evening at the Sodsai Centre for Performing Arts at Chulalongkorn University, where a capacity audience was informed and entertained with a presentation about a selection of their projects with leading museums in the UK, including the permanent installation Voyagers at the National Maritime Museum and LON24 at the Museum of London. They also gave a live audio visual performance of LDNREDUX which was developed from their work with the Museum of London, giving the invited audience in Bangkok a unique insight into how London works on a daily basis.
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English in Thai schools across the country. The Handmade Chiang Mai project aims to help creative industries in Chiang Mai, particularly in the tourism and crafts sectors, to improve competitiveness by integrating creativity, digital technology and local wisdom. “The British Council wants to prove to the public that learning English with us can be a fun and exciting experience,” Chris Gibson said. “These branch opening activities aim to raise public awareness of the brand and imply more proactive marketing movement. At the same time, it is to say that we listen to the increasing demand for English learning from the Thai market.”
UK volunteers play vital role in English teaching B
ritish Council Thailand, collaborating with the Ministry of Education, has rolled out a series of English teaching projects to support the government in developing Thai students’ English skills. These projects have been initiated in response to the government’s concern that Thailand may find itself at a disadvantage, as a result of its citizens having inferior English skills when south east Asia becomes a single integrated community. The projects aim to support Thai students in improving their English competency, as the nation gets ready for the establishment of the ASEAN Economic Community in 2015. The first 65 British volunteers, who worked in pairs for eight weeks as English teaching assistants in private and state schools at primary and secondary level around the country, came from 14 UK universities. They worked together in the classroom with Thai teachers of English and supported extra-curricular activities outside of classroom hours. Their role was to use British Council resources to help to teach and motivate
the pupils, complementing the work of the full-time teaching staff. The project also supported the skills development of Thai school pupils that face a more competitive world in which English is an essential skill. For the UK volunteers, the project helped to develop more rounded and employable UK graduates with an international outlook. It is expected that the scheme will be expanded to
involve some 500 UK students in 2013 and up to one thousand UK students every year from 2014. The ‘British Council English Language Learning’ content is designed so that Thai pupils may learn English in a fun and stimulating way under the government’s policy of One Tablet Per Child (OTPD). British Council has provided electronic course materials which the Education Ministry has converted into tablet-compatible files. The software is in the form of a content bundle of interactive games, videos and mp3 files pre-installed on to every tablet. “The concept of ‘one tablet per one child’ education, where every student has access to a tablet both inside and outside of the classroom, opens up new alternatives for classroom pedagogy in English language teaching, new ways to support learning with authentic language input and new ways to expand learning beyond the classroom,” said Chris Gibson, director of the British Council in Thailand.
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Member News
Students reach new peak at Everest base camp S
tudents from Bangkok Patana School have trekked to Mount Everest base camp as part of their push to secure Duke of Edinburgh Gold Awards. The students used their half-term break to make the trek to the base camp of the world’s highest mountain – located more than three miles above sea level.
Sally Madden, the school’s Outdoor Education Coordinator, says that the students should be proud of their achievement in completing the 11 day trek. “Now in its 12th year at Bangkok Patana School, the Award is a personal challenge that requires a substantial amount of commitment by the students. But as well as these memories the students will have been encouraged to think for themselves, to work as a team and to develop skills and confidence that universities and employers will be looking for,” says Sally. The Duke of Edinburgh’s Award was launched in 1956, initially for boys aged 15 to 18. It was administered by Brigadier John Hunt, who led the
Bangkok Patana School students reach Mount Everest base camp.
British expedition to Everest in 1953 when Edmund Hillary and Sherpa Tenzing reached the summit. In 1958 The Duke of Edinburgh’s Award was extended to girls. For those completing all three levels of the Award (Bronze, Silver and Gold) it is estimated to require around 500 hours to fulfil the four sections at each level: Service, Skills, Physical Recreation and Adventurous
Journey. At Gold level the first three sections must be undertaken for a minimum period of 12 months whilst the Adventurous Journey must last for at least four days, during which time the students have to be entirely self-sufficient. “This is a fantastic achievement for the students and their recollections of the trip will stay with them for life,” adds Sally Madden.
Standard Chartered Bank (Thai), represented by Khun Oranuch Nampoolsuksan, Senior Executive Vice President - Finance, receives the Taxpayer Recognition Award for 2011 from Prime Minister Yingluck Shinawatra. The award was given to mark the bank’s ‘outstanding tax payment record’ and for complying with all the rules and regulations of the Revenue Department, Ministry of Finance. 52
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Lyn’s banking on ASEAN success for Thailand firms S tandard Chartered Bank is backing Thai business to succeed in the expanding ASEAN market. Lyn Kok, President and CEO of Standard Chartered Bank (Thai), told media that Thailand continues to maintain a trade surplus with ASEAN as an economic bloc and that emerging economies in the region offer excellent prospects for the country’s commercial and industrial sectors.
“Thailand’s trade with ASEAN grew at 13 percent CEGR (compound annual growth rate from 2000 to 2011 and the prospects for our customers in Thailand continue to look bright,” she said. Miss Kok added that ASEAN nations hold the key to the country’s prosperity. “Malaysia is Thailand’s number one ASEAN trading partner with some US$ 24,730 million of business in 2011 and this year Indonesia has overtaken Singapore to become Thailand’s second largest trade partner in ASEAN. Though the world economy continues to recover after the crisis the picture shows that two sides of the world vary greatly, where a fragile West contrasts with a resilient East. This leads to the attempt both by the government and private sector to build new trade corridors outside Europe and the US to become less dependent on the economies in the West. “The emerging economies are not immune to fall-out from problems in the West, but they have had room for policy manoeuvre to respond and rebound. After the global recession of 2009, emerging economies helped to
Banking on success. Lyn Kok, President and CEO of Standard Chartered Bank (Thai) pictured in Bangkok with regional colleagues Lim Cheng Teck, Neeraj Swaroop and Richard Hill.
drive about two-thirds of the pick-up in global growth in 2010 and have played a dominant role since.” Lyn Kok was speaking in Bangkok at the conclusion of the Bank’s regular regional CEO summit also attended by Lim Cheng Teck, CEO - Standard Chartered Bank (China); Richard Hill, CEO - Standard Chartered Bank (Korea) and Neeraj Swaroop, CEO - south east Asia (excluding Singapore). Mr Hill said that South Korea’s trade with Thailand has steadily grown over the past three years and this was set to continue with healthy growth predicted in the agriculture and en-
gineering sectors, shipbuilding, automobiles and smart technology. Mr Hill added, “Trade between South Korea and Thailand amounted to US$14 bn in 2011 with 14 percent CAGR and that the countries have asset a target to increase bilateral trade to US$30 bn within the next five years.” Referring to the broadly balanced trade relationship between China PRC and Thailand, Lim Cheng Teck said there was a noticeable shift towards economic stimulus in China through domestic consumption. He forecasted significant growth in the amount of international trade conducted in the Chinese reminbi currency.
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Member News
NIST team on the ball as FIFA certifies new pitch F
IFA, the world’s governing body for Association Football, has awarded accreditation to the new artificial turf playing field at NIST International School. The field was tested for ball-to-surface and player-to-surface interaction in accordance with the strict standards of the FIFA Quality Concept for Football Turf. It’s the first such playing surface in Thailand to receive this recognition by FIFA. The artificial turf is installed on a specially designed drainage mat, allowing the field to be used in heavy monsoon rain whilst providing additional shock absorbency to the field as a safety feature. “NIST was determined to provide the best possible playing field for our students which could be used all year
On the ball. FIFA has awarded accreditation to the new artificial turf playing field at NIST.
round. We were fortunate to be able to engage the services of one of the world’s leading consultants, Joe DiGeronimo, who ensured that every detail in the field’s construction adhered to world class standards. The end result benefits
not only NIST students but visitors from other schools who participate in events at our school. The funds were raised through the generosity of NIST parents” said NIST Headmaster Simon Leslie.
Students, parents and staff at NIST in Bangkok celebrate United Nations Day. It’s a day devoted to making known to peoples of the world the aims and achievements of the UN. NIST Secondary Principal Julian Edwards says, “Our greatest strength at NIST is our diversity. We represent over 50 nationalities and on UN Day we celebrated that. Teachers and students were invited to wear their national dress or clothes in their national colours. NIST exists because of the UN and so the significance of this day has greater meaning for NIST as a school.”
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New look to Bumrungrad B
umrungrad International Hospital in Bangkok has used the services of dwp design agency in its extensive renovation and upgrade project. dwp was briefed to create a ‘calm, contemporary, at-
mospheric interior design concept, welcoming to patients and visitors’. By making use of natural materials, tonal colour palettes, accent lighting solutions, custom signage systems and graphics, dwp was able to
evoke a sense of comfort, wellness and warmth. Online specialist news service HealthExecNews.com lists Bumrungrad in seventh position in its list of the ‘25 Most Beautiful Hospitals in the World’.
Tops awards for Jones Lang LaSalle
J
ones Lang LaSalle has been awarded number one overall real estate advisor in Asia Pacific at the Euromoney Real Estate Awards 2012. The firm in Thailand has won top votes in four categories – overall advisor, valuation, agency/letting and research. Alastair Hughes, CEO, Jones Lang LaSalle
Asia Pacific said, “We are very honoured by this recognition, particularly as these awards are voted for by our industry. Our success in the 2012 Euromoney Awards is testament to our leadership in the region, the quality of our people and our focus on delivering excellent services to our clients.”
Jones Lang LaSalle also secured a number of country awards in the Asia Pacific region, being voted top advisor in the following categories: Australia: overall advisor, agency/letting and research; Hong Kong: overall advisor, valuation and research; India: agency/letting and research; New Zealand: overall advisor.
Udom confirmed as BOI chief
U
dom Wongviwatchai has been appointed as the new Secretary General of the Thailand Board of Investment (BOI), following the promotion of his predecessor Dr. Atchaka Sibunruang to deputy permanent secretary at the Ministry of Industry.
Mr Wongviwatchai earned his Bachelor of Engineering degree in Electrical Engineering at Kasetsart University and a Master of Science degree in Accounting at Thammasat University. He subsequently earned a Master of Science degree in Management Engineering at the University of Bridge-
port in the United States. Secretary General Wongviwatchai previously held a number of positions at the Office of Industrial Economics, Ministry of Industry, including Deputy Director-General , Office of Industrial Economics and Director of the Bureau of Macro Industrial Policy. The Brief
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Member News
New GM for Banyan Tree Bangkok
M
iss Nopparat Aumpa is the new General Manager of the Banyan Tree hotel in Bangkok. Miss Aumpa’s managerial career began in 1996 when she joined The Westin Banyan Tree Hotel in Bangkok, Thailand as an Assistant Manager in the Front Office department. She was awarded the Thurston Dupar Inspirational Award in the same year and in 1997 was presented with a Service of Legend award.
Miss Aumpa (right) was a member of the opening teams at the Banyan Tree Ringha in China and the Royale
Hayat Hospital, Kuwait in October 2006. She also managed the Double Pool Villa construction at Banyan Tree Phuket while she was the hotel’s Executive Assistant Manager, Rooms from 2005 to 2007. She has also worked in Bintan and Tianjin and was Resident Manager at the Banyan Tree Samui from 2010 to 2012. Miss Aumpa, a facilitator for the Banyan Tree Talent Management Programme, was born in Sukhothai province and graduated from Thammasart University in Bangkok.
It was back to school for British Ambassador Mark Kent (second left) as guest of honour at the official opening of the refurbished Harrow Preparatory School building in Bangkok. The Ambassador toured the School with Harrow Head Master Michael Farley (pictured right), meeting students and listening to the school orchestra’s first-ever public performance. Also pictured are year 8 students Ethan Southgate and Ying Indraphandhu.
Colliers International Thailand picked up six awards at the 2012 Thailand Property Awards ceremony in Bangkok. Simon Landy ( fourth from left), Executive Chairman of Colliers International Thailand, collected the awards with his management team. They included Best Property Consultancy, Best Residential Agent (Eastern Seaboard) and Best Residential Agent (Hua Hin).
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A rousing rendition of Jerusalem was one of the highlights of the 2012 ‘Last night of the Proms’ concert at Shrewsbury International School in Bangkok. The musical programme also include well-known traditional works by Henry Wood and Edward Elgar and the lesser-known Forrest Gump suite written by Alan Silvestri.
9 Active heads up CSR program with Planet Football Youth Academy
BCCT Member 9 Active Co., Ltd. team up with Planet Football Youth Academy to help keep kids of both Thai and foreign nationalities off the streets. Planet Football opened its doors in February 2010, its target audience was children in the local community wanting to play and learn the skills of football. Through the academy’s community work each year local children get the chance to play football for a team in an organised league. The leagues are only possible due to the support from sponsors who help cover some of the general running costs, which include the referee, balls, medals, trophies and refreshments. 9 Active will add their core strengths in assisting Planet Football with securing partnerships and sponsorships. For more information: www.9active.com
Members of the St Andrews International School 107 Eco-Committee and the Student Council visit the Fiber Pattana Company plant where beverage cartons are recycled in partnership with Tetra Pak and Big C. Students were shown many of the products made from these recycled cartons including cups, stools, clocks, notebooks, table tennis bats and boats. Tetra Pak manufactures the cartons, Big C provides recycling points and Fibre Pattana handles the reprocessing. There is now a collection point at the St Andrews Sukhumvit campus. More details:www.standrews-schools.com St Andrews International School Sukhumvit 107 Campus and Sathorn Campuses have been accepted as members of the prestigious COBIS organisation. COBIS is an organisation which brings together high quality British International Schools from around the world. COBIS has HRH The Duke of York as its patron.
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Member News
Helmet campaign seeks sponsors
M
otorcycle accidents in Thailand kill, on average, 35 people every day in Thailand and leave many others incapacitated for life because of traumatic brain injuries.
The AIP (Asia Injury Prevention) Foundation is continuing its road safety campaign with a renewed call for all riders and passengers to wear helmets. Working with the Thai Ministry of Interior’s Department of Disaster Prevention and Mitigation (DDPM) the Foundation has launched the Thailand Helmet Vaccine Initiative that embraces public awareness campaigns, safety training, childhood education and community engagement. A pilot phase started in July 2012 in Ayutthaya province. The Foundation is seeking commercial sponsors to back the campaign. Each
Road safety training in a Thailand classroom.
sponsor receives extensive media coverage, logo exposure, and volunteer opportunities, in addition to enhancing their reputation as a
company committed to stopping the deaths on Thailand’s roads. More details: info@aipf-thailand. org or telephone (66-2) 676 0274.
Centara expands in Pattaya
C
entara Hotels & Resorts is set to open its fourth property in Pattaya in March
2013.
The new Centara Grand Resort & Spa Pattaya, located at Phratamnak Hill on the eastern side of the city, will have 161 rooms and suites. Thirayuth Chirathivat (right), chief executive officer of Centara Hotels & Resorts, said, “We have enormous confidence in the future of Pattaya and regard this beautiful property as being an important strategic step in our growth plans.
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“This property is completely different in style and locality to our other three hotels in Pattaya, and gives us a very strong addition to our marketing options,” added Chris Bailey, senior vice president for sales and marketing. The hotel will also be targeting the MICE sector. “The events facilities will be especially attractive for companies with business interests in the region, and for local and Bangkok residents organising private parties and receptions,” he added.
School workshops add up B angkok International Preparatory and Secondary School has hosted a G.A.T.E.WAYS (Gifted and Talented Education) maths and science workshop for gifted and talented children aged 7-12 years.
G.A.T.E.WAYS have run similar programmes throughout Australia since 1994 and this was the first time these workshops were brought to Bangkok to provide opportunities for highly able and
gifted children with special educational needs. The two-day workshop was designed to enable like-minded students to participate in activities that would challenge them intellectually and nurture their various talents. Students from various international schools in Bangkok had the opportunity to mix with peers and to form rewarding friendships that further foster their interests, social skills and self-esteem.
Estonian Prime Minister Andrus Ansip met members of the Thailand-Estonia Friendship Parliamentary Group, led by Senator General Kasemsak Plooksawat, during a private visit to Bangkok. The meeting was arranged by Dr Virachai Techavijit, Estonia’s Honorary Consul-General in Thailand. From left to right – front row: Dr Vichuda Rattanapian, Ongart Kalmpaiboon, General Kasemsak Plooksawat (Chairman of the Group), Andrus Ansip, Dr Virachai Techavijit, Mrs Thiphavan Techavijit and Miss Piyanoot Hongsyok (Estonia Honorary Consul - Phuket). Second row: Mrs Rukshanok Kiangsiri, Kanet Techavijit, Raivo Lükk, Märt Volmer, Witawad Boonyasatid, Juhan Lepassaar, Villu Känd and Miss Kwanshanok Techavijit.
CBRE Chairman David Simister (4th from left), together with team members from CBRE Thailand, display the company’s six awards presented at the 2012 Thailand Property Awards. CBRE Thailand was named ‘Best Residential Agent (Bangkok)’ and ‘Best Residential Agent (Phuket)’ and also awards for Property Consultancy, Commercial Agent, Residential Agent Eastern Seaboard and Property Management Company.
The Brief
Issue 6/2012
59
New hopes for Brits seeking residency status in Thailand By Stephen Frost
S
ince the end of 2006, virtually no Residence Permits have been granted, and all applications filed since then have been waiting in an ever-lengthening queue. However in September 2012, the Immigration Bureau commenced to issue permits in cases that were submitted in 2007, and have been approved for issue. It is believed that other pending applications will commence to be processed as well. In this article, we discuss how applications may be made and the criteria that the authorities will apply in deciding whether to grant an application.
When can an application for a Residence Permit be made?
(1) Employment
Applications for permanent residence may be submitted after a foreigner has been in Thailand for three years whilst holding a non-immigrant visa.
(2) Humanitarian reasons, as follows:
Criteria for obtaining a residence permit
The Immigration Commission will consider the following criteria for granting a residence permit: the applicant’s income, assets, knowledge, vocational ability, and family status in terms of connection with Thai nationals, matters of national security or other matters deemed appropriate for current economic and social conditions.
Qualifications of applicants for a residence permit Applicants for a residence permit must comply with the following requirements: 1. Must hold a non-immigrant visa and was granted oneyear visa extensions which show that prior to the date of application, the applicant have been staying in Thailand at least three consecutive years. 2. Applicants over 14 years of age are subject to a criminal record check in Thailand and their home country. 3. Applicant must reveal information concerning his/her income, assets, knowledge, vocational ability, and family status in terms of connection with Thai nationals, matters of national security or other matters as deemed appropriate for consideration. 4. The applicant must be able to understand and speak the Thai language. A test is administered for this purpose. Categories of application There are four categories of applicant, as follows: 60
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(a) Spouse: To provide support or to be supported by a spouse who is a Thai national (b) Child: To provide support or to be supported by a parent who is a Thai national, (c) Parent: To provide support or to be supported by the applicant’s child who is a Thai national, (d) Spouse: To provide support or to be supported by the applicant’s spouse who was granted a residence permit, (e) Child: To provide support or to be supported by the applicant’s parent who was granted a residence permit, (f ) Parent: To provide support or to be supported by the applicant’s child who was granted a residence permit.
(3) Experts (4) Other circumstances, on a case by case basis Qualification of applicant in each category The qualifications required for applicants in each respective category above are as follows: (1) Applications based on employment: (a) The applicant must hold the position of an executive such as President of Committee or Committee of juristic persons registered in Thailand, with capital of at least 10 million Baht and is an authorized signatory for such juristic person, for one year prior to the date of application. The applicant must earn at least
50,000 Baht per month for two consecutive years prior to the date of application and show tax returns, and (b) The business in which the applicant works must be of in the interests of the national economy, i.e.:
(b) Where the support provider is of the required age:
(i) International commerce, with exports valued in foreign currency in the past three years reaching a threshold of Baht 20 million on average. This must be certified by a letter issued by the commercial bank concerned or a company that provides loans to domestic manufacturing companies by bringing into Thailand, within the past three years, foreign currency of not less than Baht 100 million, or (ii) Tourism related business, which has brought into Thailand, at least 5,000 tourists on average in the past three years. This fact must be certified by a letter issued by the authority concerned, or (iii) Other types of business, where the applicant owns shares of at least 5 million Baht for a period of at least two years prior to the date of application.
Where the applicant lacks the criteria in (a) or (b) then the following requirements apply:
(a) The applicant should be the holder of work permit for at least three consecutive years prior to the date of application, and (b) He has been working in the current company for at least one year prior to the date of application, and (c) He earns annually at least Baht 80,000 per month for at least two years prior to the date of application, or has been filing tax returns showing annual income of Baht 100,000 for at least two consecutive years prior to the date of application.
(c) Minor: Where a minor applies for a residence permit to provide support or be supported by a parent who is a Thai national:
(i) A minor who wishes to provide support to a parent who is a Thai national:
(1) must be a biological child, and (2) the applicant’s father or mother must be at least 50 years old on the date of application, and (3) the support provider must earn annual income of at least 30,000 Baht per month on average for at least two consecutive years prior to the date of application and evidence of tax returns is required (4) the Thai national declares his intention to receive support from the applicant.
(ii) Where a minor wishes to be supported by a parent who is a Thai national:
(1) the parent must be a biological parent and registration of parental status was made, (2) the minor must be aged under 20 and not married, provided that if the child is aged over 20, then justification for such parental support is required, such as studying for a bachelor’s degree or equivalent, and such education commenced before the age of 20 and is continuing and documentary evidence is required, or the child is ill and cannot take care of itself where a medical certificate issued by a hospital is required, and (3) the support provider must earn annual income of at least Baht 30,000 per month on average for at least two consecutive years prior to the date of application and evidence of tax returns is required, (4) the Thai national declares his intention to receive support from the applicant.
(2) Applications based on humanitarian reasons: (a) Spouse: Where the purpose is to provide support or be supported by a spouse who is a Thai national:
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(i) The support provider works in Thailand, (ii) The parties must be legally married for at least two years before the date of application, and have biological children together. In a case of infertility, a medical certificate issued by the hospital is required. In a case of infertility without a certificate, the marriage must have been registered at least five years before the date of application, (iii) One or both parties must earn enough to provide support or have annual income of at least Baht 30,000 per month on average, for at least two consecutive years before the date of application and evidence of tax returns is required, (iv) The Thai national declares his intention to provide support or be supported by the applicant. The Brief
Issue 6/2012
(i) on the date of application, the applicant must be at least 50 years old, (ii) the applicant must be legally married for at least two years before the date of application, and (iii) the support provider must earn annual income of at least Baht 65,000 per month on average, for at least two consecutive years prior to the date of application, and (iv) the Thai national declares his intention to provide support or to receive support from the applicant.
(d) Parent: a parent wishes to provide support or be supported by a child who is a Thai national:
(i) Where a parent wishes to provide support to a child who is a Thai national:
(1) the parent must be a biological parent and registration of parental status was made, and (2) the minor must be aged under 20 and not married but if on the date of application the child is over 20, then justification for receiving parental support is required, such as studying for a bachelor’s degree or equivalent and such education commenced before the age of 20 and is continuing and documentary evidence is required, or the child is ill and cannot take care of itself and a medical certificate issued by the hospital is required, and (3) the support provider must earn annual income of at least Baht 30,000 per month on average for at least two consecutive years prior to the date of application and evidence of tax returns is required.
(f ) Where a parent has a residence permit: a child who wishes to provide support or be supported by its parent to whom a residence permit was granted:
(i) where a child wishes to provide support to a parents to whom a residence permit was granted:
(1) the child must be a biological child, and (2) either parent must be over 50 years old on the date of application, and (3) either parent declares his/her intention to be supported by the applicant, and (4) the support provider has the same qualifications required for an applicant who wishes to invest or to work in Thailand (see above).
(ii) where a child wishes to be supported by a parent to whom a residence permit was granted:
(ii) where a parent wishes to be supported by a child who is a Thai national:
(1) the child must be a biological child, and (2) the parent must be aged 50 or more on the date of application, and (3) the support provider must earn annual income of at least Baht 30,000 per month on average for at least two consecutive years prior to the date of application and evidence of tax returns is required, and (4) the Thai national declares his intention to provide support to the applicant.
(1) the child must be a biological child aged under 20 and not married but if on the date of application submission the child is over 20, then justification for being supported is required, such as studying for a bachelor’s degree or equivalent and such education had commenced before the child reached 20 and is continuing and documentary evidence is required, or the child is ill and cannot take care of itself where a medical certificate issued by the hospital is required, (2) either parent declares his/her intention to provide support to the applicant, and (3) the support provider has the same qualifications as an applicant who wishes to invest or to work in Thailand (see above).
(e) Where one spouse has a residence permit: a spouse who wishes to provide support or be supported by his/her spouse who already has a residence permit:
(g) Where a child has a residence permit A parent who wishes to provide support or be supported by a child to whom a residence permit was granted:
(1) the parties must be legally married for at least two years before the date of application, and (2) the first spouse has been granted a residence permit and declares his/her intention either to provide support or to be supported by the applicant, and (3) the support provider has the same qualifications as an applicant who wishes to invest or to work in Thailand (see above).
(i) where a parent wishes to provide support to a child to whom a residence permit was granted:
(1) the child must be a biological child aged under 20 and not married but if on the
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date of application, the child is over 20 then justification for being under parental support is required, such as studying for a bachelor’s degree or equivalent and such education commenced before the age of 20 and is continuing and documentary evidence is required, or the child is ill and cannot take care of itself where a medical certificate issued by the hospital is required, (2) either parent declares his/her intention to provide support to the applicant, and (3) the support provider has the same qualifications required for an applicant who wishes to invest or to work in Thailand (see above).
(ii) where a parent wishes to be supported by a child to whom a residence permit was granted:
(1) the child must be a biological child, (2) either parent must be over 50 years old on the date of application, (3) the support provider declares his/her intention to provide support to the applicant, and (4) the support provider has the same qualifications required for an applicant who wishes to invest or work in Thailand (see above).
(3) Experts: An applicant who applies as an expert, must have the following qualifications: (1) he/she graduated with a minimum of a bachelor’s degree and possesses special ability that is needed and is beneficial to Thailand, (2) he/she must be supported and officially certified by the authority concerned, (3) a certifying letter related to the applicant’s employment in such position indicating, prior to the date of application, a period of at least three consecutive years in employment, (4) Applicants in other circumstances: The qualifications of applicants in other circumstances will be considered on a case-by-case basis:
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(1) A person who is beneficial to Thailand or the Thai Government or was selected by a national institution as a person whose performance creates benefit to Thailand or who works for an authority, and (2) A person who supplies certificates in the form of letter signed by at least a departmental authority, governor or civil servant of at least level 10 status, or a military officer holding the rank of general, air chief marshal, admiral, police general or political official in the position of minister, president of the national assembly, vice president of the national assembly, president of the senate or vice president of the senate or committee of a non-governmental orgaThe Brief
Issue 6/2012
nization under the constitution. Detail of the applicant’s work is required to be furnished or, (3) A person with other qualifications, or the number of residence permits to be granted will be considered as appropriate by the Immigration Committee.
Principles to be applied Applicants must hold their qualifications on the date of application. Where the number of eligible applicants of a particular nationality is higher than its annual quota, then a ratio will be set for each category and the number of eligible applicants for such nationality. Although an applicant may possess all stipulated qualifications but taking into account economic, political, and social factors, the Immigration Committee or Minister of Interior may decline to grant a residence permit and that decision is considered final. Fees Fees were increased substantially a few years ago. The fee is now 10,000 Baht on filing the application and an additional 190,000 Baht when granted, reduced to 90,000 Baht where the applicant has a Thai spouse, and in other cases. Practice Applications are subject to a quota on the basis of 100 persons per country per year. Applications are submitted once a year, normally in December. They are subject to a pre-approval process. Applications that are pre-approved are then considered again before final approval. The Board of Investment and the Immigration Bureau have special programmes for granting lifetime residence permits to certain investors. Comment Since there has been a clear change of policy to start clearing the backlog, foreigners qualified to apply may now think about preparing their applications for submission in December 2012, assuming that applications may be submitted that month. As can be seen above, a large number of documents need to be assembled. In particular, a criminal check will have to be carried out in the applicant’s home country and this can take several weeks to be processed. Applicants are advised to start preparing their applications soon!
Bangkok International Associates is a general corporate and commercial law firm. For further information, please contact Stephen Frost by email at sfrost@bia.co.th or telephone (66) 2 231 6201/6455. Bangkok International Associates has updated its Thailand Business and Legal Guide and may be downloaded from www.bia.co.th. This is a 100,000 word English language guide to the laws of Thailand that are relevant and important to foreign investors.
Dataconsult
Ease of Doing Business
Chamber Events
By the Numbers Chris Bruton Director, Dataconsult Ltd.
A
s year-end approaches, the number crunchers are out in force. Updates and forecasts abound. The IMF, in any spare moments from bailing out crumbling member countries, has produced its updated historical and forecast figures through 2017, for which we detail nine significant economic factors below, for the ten members of ASEAN, plus China and India for comparison.
(ranking among 183 countries)
Country
2012
2011
2010
2009
2008
2007
Singapore
1
1
1
1
1
1
2
Malaysia
12
21
23
21
25
25
25
2006
Thailand
18
19
16
12
19
18
19
Brunei
79
112
117
94
83
n.a.
n.a. 108
China
91
79
78
86
90
93
Vietnam
99
78
88
91
87
104
98
Indonesia
128
121
115
129
127
135
131
India
132
134
135
132
120
134
138
Cambodia
133
147
145
139
150
143
142
Philippines
138
148
146
141
136
126
121
Lao PDR
163
171
169
165
162
159
164
Source: World Bank: Doing Business Surveys 2007-2012 Note: Country ranking may be revised retrospectively, Figures given are latest reported. Myanmar not included in surveys
Global Competitiveness Index 2012-2013 Country
Within ASEAN, Thailand retains its position as second largest economy, after Indonesia. However Malaysia is closening the gap, and the Philippines could match Singapore by 2015 and move ahead into fourth position thereafter.
2012
(ranking among 144 countries)
2011
2010
2009
2008
2007
2006
Singapore
2
2
3
3
5
7
5
Malaysia
25
21
26
24
21
21
26
Brunei
28
28
28
32
39
n.a.
n.a.
China
29
26
27
29
30
34
54
Thailand
38
39
38
36
34
28
35
Indonesia
50
46
44
54
55
54
50
India
59
56
51
49
50
48
43
Philippines
65
75
85
87
71
71
71
Vietnam
75
65
59
75
70
68
77
Cambodia
85
97
109
110
109
110
103
Source: World Economic Forum: Global Competitiveness Report Note: Laos and Myanmar not evaluated
Philippines, Vietnam, Laos, Cambodia and Myanmar, as well as India, remain far behind. In purchasing power parity, the relative country situations are not much different.
In terms of GDP growth, Thailand risks being trapped in middle-level growth, whereas Laos, Cambodia, Myanmar, and Vietnam are forecast to maintain higher growth, which Indonesia will also share.
Apart from the IMF figures the World Bank has now released its 2012 Ease of Doing Business Survey, and the World Economic Forum has published its Global Competitiveness Survey. For Ease of Doing Business, Thailand holds
In terms of per capita GDP, Thailand already slipped behind China in 2011 and will fall further behind in coming years. Indonesia is also fast catching up. But poor countries, including the
to 18th best position but has slipped behind Malaysia, which jumped ahead to 12th position. Other ASEAN+2 countries remain dismal laggards. For Global Competitiveness, Singapore remains supreme and Malaysia strong at 25th position, while Thailand hangs on at 38th position, 4th in ASEAN, as yet without strong competition. Thailand’s report card says “could do better, but, overall, not bad at all”.
Table 1: Gross Domestic Product at current prices (total value) (countries ranked by 2012 size)
(US$ billion)
Country
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
China
2,712.9
3,494.2
4,520.0
4,990.5
5,930.4
7,298.1
8,250.2
9,038.7
9,925.5
10,928.1
12,020.5
13,212.2
India
908.6
1,152.6
1,262.5
1,266.2
1,630.5
1,826.8
1,946.8
2,117.3
2,314.7
2,547.0
2,836.1
3,171.0
Indonesia
364.4
432.2
510.3
538.8
708.4
846.5
894.9
1,006.9
1,188.0
1,372.5
1,588.3
1,842.8
Thailand
207.1
247.0
272.6
263.7
318.9
345.7
377.0
412.7
437.3
461.0
484.9
511.9
Malaysia
162.7
193.6
231.1
202.3
246.8
287.9
307.2
340.0
367.7
397.7
430.1
465.1
Singapore
145.7
177.6
190.0
185.6
227.4
259.8
267.9
277.9
289.1
301.5
314.6
328.7
Philippines
122.2
149.4
173.6
168.5
199.6
224.8
240.7
258.5
278.3
299.2
321.9
346.4
Vietnam
60.9
71.1
90.3
93.2
103.6
122.7
137.7
151.9
165.0
179.2
193.8
209.1
Myanmar
14.5
20.2
31.4
35.2
45.4
51.4
54.0
59.3
63.9
68.8
73.5
77.7
Brunei
11.5
12.2
14.4
10.7
12.4
16.4
16.9
16.5
17.1
17.4
17.8
18.1
Cambodia
7.3
8.6
10.4
10.4
11.3
12.9
14.2
15.7
17.3
19.1
21.1
23.4
Laos
3.6
4.2
5.3
5.6
6.9
8.3
9.3
10.3
11.2
12.3
13.5
14.9
Statistical source: International Monetary Fund, October 2012
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Issue 6/2012
65
Table 2: Gross Domestic Product at constant prices (growth) (countries ranked by 2012 size)
(Percentage change year-on-year)
Country
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Laos
8.6
7.8
7.8
7.5
8.1
8.0
8.3
8.1
7.7
7.8
7.9
7.8
China
12.7
14.2
9.6
9.2
10.4
9.2
7.8
8.2
8.5
8.5
8.5
8.5
Cambodia
10.8
10.2
6.7
0.1
6.1
7.1
6.5
6.7
7.2
7.4
7.6
7.7
Myanmar
13.1
12.0
3.6
5.1
5.3
5.5
6.2
6.3
6.4
6.5
6.5
6.5
Indonesia
5.5
6.3
6.0
4.6
6.2
6.5
6.0
6.3
6.5
6.6
6.7
6.9
Thailand
5.1
5.1
2.6
-2.3
7.8
0.1
5.6
6.0
4.5
4.6
4.8
5.0
Vietnam
8.2
8.5
6.3
5.3
6.8
5.9
5.1
5.9
6.4
6.8
7.2
7.5
India
9.5
10.0
6.9
5.9
10.1
6.8
4.9
6.0
6.4
6.7
6.9
6.9
Philippines
5.2
6.6
4.2
1.1
7.6
3.9
4.8
4.8
5.0
5.0
5.0
5.0
Malaysia
5.6
6.3
4.8
-1.5
7.2
5.1
4.4
4.7
5.0
5.0
5.0
5.0
Brunei
4.4
0.2
-1.9
-1.8
2.6
2.2
2.7
1.5
4.9
3.3
4.1
3.6
Singapore
8.8
8.9
1.7
-1.0
14.8
4.9
2.1
2.9
3.6
3.7
3.8
3.9
2017
Statistical source: International Monetary Fund, October 2012
Table 3: Gross Domestic Product per capita (countries ranked by 2012 size)
(Current prices) US$ Dollars)
Country
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Singapore
31,763
36,695
38,087
36,567
43,865
49,271
49,936
50,899
52,050
53,348
54,717
56,198
Brunei
29,949
31,404
36,223
26,423
29,852
38,534
38,801
37,173
37,760
37,485
37,627
37,517
Malaysia
6,066
7,122
8,390
7,252
8,737
10,085
10,578
11,513
12,243
13,020
13,846
14,724 9,528
China
2,064
2,645
3,404
3,740
4,423
5,417
6,094
6,644
7,262
7,957
8,710
Thailand
3,296
3,918
4,300
4,151
4,992
5,395
5,848
6,364
6,704
7,024
7,345
7,708
Indonesia
1,623
1,897
2,209
2,299
2,981
3,512
3,660
4,061
4,724
5,381
6,139
7,023
Philippines
1,405
1,684
1,918
1,827
2,123
2,345
2,462
2,594
2,737
2,886
3,044
3,211
Vietnam
807
1,009
1,090
1,079
1,370
1,514
1,592
1,709
1,844
2,002
2,201
2,428
India
724
835
1,048
1,068
1,174
1,374
1,523
1,660
1,783
1,913
2,044
2,180
Laos
610
712
879
916
1,105
1,320
1,454
1,588
1,709
1,852
2,007
2,175
Cambodia
514
603
711
703
753
853
934
1,018
1,111
1,215
1,331
1,459
Myanmar
257
350
533
587
742
824
849
914
964
1,019
1,066
1,104
2013
2014
2015
2016
2017
59,710.3 60,883.3 62,400.2
64,446.8
66,785.9
69,393.9
72,378.6
Statistical source: International Monetary Fund, October 2012
Table 4: GDP Purchasing-power-parity per capita (countries ranked by 2012 size) Country
2006
2007
2008
Singapore
47,360.7 50,302.0 50,738.5
Brunei
2009
2010
49,789.8
56,708.7
2011
(Current International dollar)
2012
49,430.8 50,028.9 49,139.4
47,709.7
48,621.8
49,536.1 50,526.4
50,927.4
53,055.7
54,529.4
56,572.8
58,522.8
Malaysia
12,734.9
13,748.2
14,542.5
14,263.5
15,293.4
16,239.8 16,942.1
17,674.7
18,509.5
19,425.1
20,429.4
21,534.2
Thailand
7,690.7
8,286.1
8,639.3
8,494.2
9,225.9
9,398.5
10,023.3 10,700.9
11,274.9
11,916.4
12,645.5
13,475.0
China
4,746.8
5,547.5
6,185.4
6,781.2
7,553.4
8,386.7
10,935.9
12,008.3
13,212.8
14,566.2
Indonesia
3,420.1
3,690.0
3,942.4
4,102.4
4,352.6
4,665.9
4,957.6
5,267.0
5,611.9
5,997.6
6,429.5
6,915.2
Philippines
3,260.2
3,506.6
3,659.4
3,664.9
3,920.3
4,080.3
4,263.7
4,440.0
4,636.1
4,851.1
5,086.9
5,346.2
9,146.4
9,983.3
India
2,441.4
2,724.7
2,936.3
3,093.2
3,403.0
3,662.7
3,851.3
4,082.0
4,347.8
4,656.3
5,003.9
5,392.6
Vietnam
2,364.1
2,607.5
2,799.9
2,939.4
3,143.0
3,358.6
3,545.3
3,758.6
4,009.1
4,299.0
4,638.8
5,030.8
Laos
1,859.8
2,032.6
2,205.7
2,356.6
2,544.2
2,768.5
3,004.5
3,244.2
3,496.0
3,776.9
4,093.8
4,443.2
Cambodia
1,626.3
1,823.8
1,956.4
1,942.7
2,068.0
2,239.2
2,398.5
2,567.1
2,764.6
2,988.2
3,241.6
3,528.4
Myanmar
983.2
1,110.7
1,153.0
1,198.8
1,254.5
1,324.6
1,401.4
1,479.9
1,565.7
1,661.5
1,767.0
1,883.4
Statistical source: International Monetary Fund, October 2012
Table 5: Inflation: average consumer prices (countries ranked by 2012 size) 2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
India
6.3
6.4
8.3
10.9
12.0
8.9
10.3
9.6
8.3
6.4
5.1
5.0
Vietnam
7.5
8.3
23.1
6.7
9.2
18.7
8.1
6.2
5.4
5.2
5.0
5.0
Myanmar
26.3
32.9
22.5
8.2
8.2
4.0
5.8
6.5
5.1
5.0
5.0
5.0
Laos
6.8
4.5
7.6
0.0
6.0
7.6
5.1
6.8
4.8
4.7
4.3
4.2
2017
Singapore
1.0
2.1
6.6
0.6
2.8
5.2
4.5
4.3
4.0
3.0
2.8
2.5
Indonesia
13.1
6.7
9.8
4.8
5.1
5.4
4.4
5.1
4.9
4.7
4.5
4.0
Cambodia
6.1
7.7
25.0
-0.7
4.0
5.5
3.6
4.4
4.3
3.3
3.0
3.0
Philippines
5.5
2.9
8.2
4.2
3.8
4.7
3.5
4.5
4.0
4.0
4.0
4.0
Thailand
4.6
2.2
5.5
-0.8
3.3
3.8
3.2
3.3
2.6
2.4
2.6
2.7
China
1.5
4.8
5.9
-0.7
3.3
5.4
3.0
3.0
3.0
3.0
3.0
3.0
Malaysia
3.6
2.0
5.4
0.6
1.7
3.2
2.0
2.4
2.5
2.5
2.5
2.5
Brunei
0.2
1.0
2.1
1.0
0.4
2.0
1.7
1.4
1.4
1.3
1.3
1.3
Statistical source: International Monetary Fund, October 2012
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(Percentage change year-on-year)
Country
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Table 6: General Government Gross Debt (percent of GDP) (countries ranked by 2012 size)
(%)
Country
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Singapore
86.4
85.8
96.9
103.4
101.2
107.6
106.2
103.4
100.8
97.8
95.1
96.4
India
78.5
75.5
74.1
74.2
68.0
67.0
67.6
66.7
65.6
65.1
64.7
64.3
Laos
72.4
65.1
60.9
64.0
61.8
55.9
54.1
52.4
51.1
50.0
48.8
51.3
Malaysia
41.5
41.2
41.2
52.8
51.0
52.9
53.0
53.5
53.9
54.4
55.1
55.8 36.1
2017
Myanmar
72.1
66.5
54.1
55.5
53.0
53.5
43.5
40.3
38.6
37.6
36.8
Thailand
42.0
38.3
37.3
45.2
42.6
41.7
44.2
46.2
48.8
49.9
50.9
51.4
Philippines
51.6
44.6
44.2
44.3
43.5
41.9
41.5
39.7
38.1
36.7
35.3
34.0
Vietnam
41.8
44.6
42.9
51.2
54.0
50.4
50.4
50.6
50.8
50.5
50.2
49.9
Cambodia
32.7
30.6
27.5
28.9
29.1
28.5
28.5
28.1
28.3
27.8
27.1
26.2
Indonesia
39.0
35.1
33.2
28.6
26.9
24.5
23.9
22.2
20.9
19.8
18.9
18.2
China
16.2
19.6
17.0
17.7
33.5
25.8
22.2
19.6
17.3
15.0
12.6
10.1
Brunei
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Statistical source: International Monetary Fund, October 2012
Table 7: Current Account Balance (countries ranked by 2012 size)
(percent of GDP)
Country
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Brunei
50.1
47.8
48.9
40.2
45.5
48.5
49.1
50.3
52.8
55.7
58.4
2017 61.6
Singapore
24.5
25.8
13.9
16.2
24.4
21.9
21.0
20.7
19.7
18.6
17.4
16.3 5.8
Malaysia
16.1
15.4
17.1
15.5
11.1
11.0
7.5
6.9
6.4
6.0
5.9
Philippines
4.4
4.8
2.1
5.6
4.5
3.1
3.0
2.6
2.5
2.2
2.0
1.8
China
8.6
10.1
9.1
5.2
4.0
2.8
2.3
2.5
2.8
3.2
3.8
4.3 -1.5
Vietnam
-0.3
-9.8
-11.9
-6.6
-4.1
0.2
0.3
-0.9
-1.1
-1.3
-1.3
Thailand
1.1
6.3
0.8
8.3
4.1
3.4
-0.2
0.1
0.8
1.2
1.1
1.0
Indonesia
3.0
2.4
0.0
2.0
0.7
0.2
-2.1
-2.4
-2.3
-2.5
-2.7
-2.9
India
-1.0
-0.7
-2.5
-2.0
-3.2
-3.4
-3.8
-3.3
-2.8
-2.5
-2.3
-2.3
Myanmar
7.1
-0.5
-3.3
-2.8
-1.3
-2.6
-4.4
-4.0
-2.9
-4.0
-4.1
-4.0
Cambodia
-0.6
-1.9
-5.7
-4.5
-3.9
-8.1
-9.7
-9.1
-7.1
-6.3
-5.7
-5.4
Lao
-9.9
-15.7
-18.5
-21.0
-18.3
-21.4
-21.9
-24.0
-23.9
-21.6
-16.2
-15.2
Statistical source: International Monetary Fund, October 2012
Table 8: Population ASEAN+2 (countries ranked by 2012 size)
(million persons)
Country
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
China
1,314.5
1,321.3
1,328.0
1,334.5
1,340.9
1,347.4
1,353.8
1,360.3
1,366.9
1,373.4
1,380.0
1,386.6
India
1,126.0
1,142.0
1,158.0
1,174.0
1,190.5
1,206.9
1,223.2
1,239.3
1,255.6
1,272.1
1,288.8
1,305.8
Indonesia
224.6
227.8
231.0
234.3
237.6
241.0
244.5
248.0
251.5
255.1
258.7
262.4
Philippines
87.0
88.7
90.5
92.2
94.0
95.9
97.7
99.7
101.6
103.7
105.8
107.9
Vietnam
84.2
85.2
86.2
87.2
88.3
89.3
90.4
91.5
92.6
93.7
94.8
95.9
Thailand
56.5
57.6
58.8
60.0
61.2
62.4
63.7
65.0
66.3
67.6
68.9
70.3
Myanmar
62.8
63.0
63.4
63.5
63.9
64.1
64.5
64.8
65.2
65.6
66.0
66.4
Malaysia
26.8
27.2
27.5
27.9
28.3
28.6
29.0
29.5
30.0
30.5
31.1
31.6
Cambodia
14.2
14.3
14.6
14.8
15.0
15.1
15.3
15.4
15.6
15.7
15.9
16.0 6.8
Laos
5.8
5.9
6.0
6.1
6.2
6.3
6.4
6.5
6.6
6.6
6.7
Singapore
4.6
4.8
5.0
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.7
5.8
Brunei
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.5
0.5
0.5
0.5
2011
2012
2013
2014
2015
2016
2017
Statistical source: International Monetary Fund, October 2012
Table 9: Total Investment (Percent of GDP) (countries ranked by 2012 size) Country
2006
2007
2008
2009
2010
(%)
India
6.3
6.4
8.3
10.9
12.0
8.9
10.3
9.6
8.3
6.4
5.1
5.0
Vietnam
7.5
8.3
23.1
6.7
9.2
18.7
8.1
6.2
5.4
5.2
5.0
5.0
Myanmar
26.3
32.9
22.5
8.2
8.2
4.0
5.8
6.5
5.1
5.0
5.0
5.0
Laos
6.8
4.5
7.6
0.0
6.0
7.6
5.1
6.8
4.8
4.7
4.3
4.2
Singapore
1.0
2.1
6.6
0.6
2.8
5.2
4.5
4.3
4.0
3.0
2.8
2.5
Indonesia
13.1
6.7
9.8
4.8
5.1
5.4
4.4
5.1
4.9
4.7
4.5
4.0
Cambodia
6.1
7.7
25.0
-0.7
4.0
5.5
3.6
4.4
4.3
3.3
3.0
3.0
Philippines
5.5
2.9
8.2
4.2
3.8
4.7
3.5
4.5
4.0
4.0
4.0
4.0
Thailand
4.6
2.2
5.5
-0.8
3.3
3.8
3.2
3.3
2.6
2.4
2.6
2.7
China
1.5
4.8
5.9
-0.7
3.3
5.4
3.0
3.0
3.0
3.0
3.0
3.0
Malaysia
3.6
2.0
5.4
0.6
1.7
3.2
2.0
2.4
2.5
2.5
2.5
2.5
Brunei
0.2
1.0
2.1
1.0
0.4
2.0
1.7
1.4
1.4
1.3
1.3
1.3
Statistical source: International Monetary Fund, October 2012
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Chamber Events Joint Professional Women’s Group Networking 4 October 2012 BCCT’s Professional Women’s Group (PWG) organised a networking event on 4th October 2012 at the Imperial Queen’s Park Hotel. AustCham, AMCHAM and New Zealand Chamber jointly participated in this event with the theme ‘Get your Incredible India On!’ with the Bollywood extravaganza where guests enjoyed Indian cuisine, arts, henna painting and dance. Thank you to our kind sponsors Shrewsbury International School and Worldwide Relocations.
01 01 (from left to right) - Michael Zitek, Imperial Queen’s Park Hotel - Jyoti Sachavirawong , BCCT - Heather Preen, Shrewsbury International School - Toni Weber, PWG Chairperson - Renu Bhatia, Indian Host (Fine Indian Dining) - Andy Flynn, Worldwide Relocations
02 02 - PWG Committee members
Anti-corruption in Thailand - Can the British Chamber contribute? 8 October 2012 BCCT organised an informal, exploratory meeting to consider how it may support anti- corruption programme in Thailand at the BCCT office on 8th October.
01 01 (from left to right) - Greg Watkins, BCCT Executive Director - Andrew McBean, Grant Thornton/BCCT Board Director
02 02 - Discussions focussed upon opportunities for action to support BCCT members rather than statements or restatements of policy.
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Chamber Events
BCCT Boardroom Briefing (Thai Residence and Nationality) 10 October 2012 On 10th October, Barry Petersen MC JP, Director of Lang Suan House Co., Ltd. was a guest speaker at the BCCT Boardroom Briefing on Thai Residence and Nationality.
01 01 - Stephen Frost, Chairman of the Legal and Tax Committee (left), presents a gift to Barry Petersen.
02 02 - Participants understood more about the process as many questions were raised in this useful meeting.
BCCT Evening Presentation - European ASEAN Business Centre (EABC) 11 October 2012 On 11th October Standard Chartered Bank (Thai) hosted at the BCCT Evening Presentation on the role of European ASEAN Business Centre (EABC) and benefits to BCCT members.
01 01 (from left to right) - Dr. Thavirap Tantiwongse, GlaxoSmithKline (Thailand) Ltd. - Graeme Harlow, Diageo Moet Hennessy (Thailand) Ltd. - Lyn Kok, Standard Chartered Bank (Thai) pcl - John Sim, MBMG/ BCCT Vice Chairman & Treasurer
02 02 (from left to right) - John Sim, MBMG/ BCCT Vice Chairman & Treasurer - Clive Butcher, Highfield Equity Co., Ltd. - Christopher Bruton, Dataconsult Ltd. - Greg Watkins, BCCT
Thank you to our sponsors and partners. The Brief
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Chamber Events
BCCT Half-Day Workshop (How to Handle Negotiation with Confidence) 12 October 2012 On Friday 12th October, the BCCT Management Development Group organised a Half-Day Workshop on ‘How to Handle Negotiation with Confidence’ at Le Méridien Bangkok.
01 01 - Prin Chaliervararese , Standard Chartered Bank (Thai) pcl
02 02 - The workshop provided technique and different aspects on negotiation skills in which participants can apply in business and life
BCCT Half-Day Workshop (Change Management) 18 October 2012 On 18th October the BCCT Management Development Group organised a Half-Day Workshop on ‘Change Management’ at the Conrad Bangkok.
01 01 - The Change Management workshop was well attended.
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02 02 - Joe Barker-Bennett, Crestcom-Traincom Ltd.
Chamber Events
Third Thursday Networking Evening 18 October 2012 Third Thursday Networking Evening on Thursday 18th October at Club 87 Plus was an enjoyable event. Sven-Göran Eriksson, former England Manager, made a special appearance at the event. Many thanks to our sponsors The Conrad Bangkok and Samitivej Hospital.
01 01 (from left to right) - Nicolas Leloup, Samitivej Hospital - Porntip Utsahaphan, Samitivej Hospital - Richard Greaves, Grand Hyatt Erawan/BCCT Board member
02 02 (from left to right) - Dean Thompson, Boots Retail (Thailand)/BCCT Board member - Sven-Göran Eriksson, former England football team manager
Joint AustCham/BCCT/AMCHAM Eastern Seaboard Networking Evening 19 October 2012 On 19th October the BCCT joined hands with AMCHAM and AustCham in organising the monthly Eastern Seaboard Networking Evening at Holiday Inn Pattaya.
01 01 (from left to right) - Simon Farbenbloom, Australian Embassy - Simon Landy, Colliers/BCCT Chairman - John Anderson, Meinhardt/AustCham President
02 02 - The event was well attended by members of AustCham, AMCHAM and BCCT.
Thank you to our sponsors and partners.
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Join the BCCT board I
f you would like to contribute more to the work of the BCCT please consider standing for election to the BCCT board of directors. The next Annual General Meeting will be held on Thursday, 24 January 2013. The role of a BCCT Board Director includes: • Attendance at monthly Board meetings (dates set at the beginning of the year). A minimum of six Board Meetings must be attended • All directors will be expected to actively participate in at least one of the BCCT Groups and other meetings/events as and when applicable • Preparation of regular reports on news, developments, opportunities, etc in your sector or area of expertise, or articles in The Brief magazine (no specific numerical requirement) • Input and advice on any issues raised by BCCT members, officers or the BCCT office • Promotion of the BCCT among the Thai and foreign business and government communities in Thailand • A Board Director may not miss three Board Meetings in a row otherwise he/she is deemed to have vacated his/her office More formally the board’s main responsibilities are: 1. To oversee the operation, support and advancement of the British Chamber of Commerce Thailand (BCCT), in accordance with the “Constitution and Regulations of BCCT”, “BCCT Group Rules & Guidelines”, and “BCCT Board Principles”. 2. To provide leadership to the BCCT through oversight, review and counsel. 3. To provide strategic input and set the strategic direction for the BCCT.
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4. To be the primary decisionmaking body for all matters considered as significant to the BCCT. 5. To ensure a robust governance framework and the establishment of sound policies and procedures to successfully achieve the BCCT Mission Statement and objectives, in compliance with statutory and regulatory obligations and generally accepted best practice. 6. To ensure the availability of adequate financial resources, such that the BCCT remains a fully self-funded organisation,
7. To be accountable to BCCT Members and Stakeholders for BCCT’s performance. 8. To oversee and appoint appropriate Groups, Committees, Common Interest Groups, and administrative operations in order to further the objectives of the BCCT. If you would like to discuss the role and/or responsibilities of a board director or if you have any other queries please contact BCCT Executive Director Greg Watkins: greg@bccthai.com
Comings and Goings The British Chamber of Commerce Thailand welcomes the following new members:
Amari Emerald Cove Koh Chang 88/8, Moo 4, Amphur Koh Chang Trat 23170 T: +66 (0) 39-552-000 F: +66 (0) 39-552-001
Representative: Mr. Peter Dietze, General Manager Business Activity: Hotel & Resort, F&B and MICE
BAM Consulting Asia 89/414, Moo 2, Green Lake Samut Prakan 10540 T: +66 (0) 85-811-3474, +66 (0) 87-595-4711, +61 8 9467 9779 Website: www.BAM2B.com Representative: Mr. Heneage Mitchell, Director JLT brand standards Mr. John Boley, Director Business Activity: Regional corporate facilitation “corporate hand-holding” Distinctive. between Asia andChoice. Europe including consulting, communications, marketing 2011 (V4.1) and onAUGUST the ground support Section Update 4. The JLT tagline & master brand wording
• Master brand wording - please note the staff number
company. Technical analysis and restoration of fire, water and storm damage of every kind and on any scale.
Caterpillar Leasing (Thailand) Limited 3rd Floor, 1760 Sukhumvit Road Soi 52-54, Bangjark, Prakanong Bangkok 10260 T: +66 (0) 2105-5111 F: +66 (0) 2741-4123
Representative: Mr. Christopher L. Farrar, Country Manager Business Activity: We are the financing arm of Caterpillar Inc., a Fortune 500 company and the world’s largest manufacturer of construction and mining equipment; natural gas and diesel engines; and industrial gas turbines. We have been serving our customers in Thailand since 1997.
Centre Point Hospitality 1522/2, Soi Kaysorn 1 Charoenkrung 50 Road, Bangrak, Bangkok 10500 Page (0) 2630-6345-9 T: +66 F: +66 (0) 2630-6353-4
in last paragraph 7 BELFORchange Thailand Ltd. 7. Brand architecture 193, Ramkhamhaeng Soi 24/5 • Introduction Huamark 11 Ramkhamhaeng, • Endorsing our Group brands - please note JLT Network Bangkapi, Bangkok 10240 has changed to ‘JLT International Network’ 14 T: +66 (0) 2300-0184 Representative: F: +66 (0) 2718-3238 Ms. Lasa Chiamchintanakul, Group Sale Manager Business Activity: Hotel and Residence
Representative: Mr. John Shanahan, Operations Manager Business Activity: BELFOR is the leading global restoration and repair
Hotel Muse Bangkok 55/555, Soi Langsuan, Lumpini, Pathumwan, Bangkok 10330 T: +66 (0) 2630-4000 F: +66 (0) 2630-4033 Representative: Mr. Nicolas Peth, General Manager Business Activity: Occidental, Oriental and all things opulent Rising high above one of the city’s most desired residential districts, Hotel Muse Bangkok brings to Bangkok a heretofore unknown hedonistic experience: a hotel dedicated to the golden age of travel and the most opulent of art and design. Hotel Muse Bangkok likewise dedicates itself no less to the art of pure pleasure, for every conceptual element reflects a theme of fanciful indulgence. Located minutes from the world-class fashion and lifestyle shopping of Siam Paragon, Central World, Central Chidlom and MBK. Hotel Muse Bangkok Langsuan offers 174 lavish guest rooms along with a distinctive array of dining and entertainment venues.
Jardine Lloyd Thompson Ltd. 29th Floor, Vanit Building II 1126/2 New Petchburi Road, Makkasan, Rachthevee, Bangkok 10400 T: +66 (0) 2626-2520 F: +66 (0) 2626-2580
Representative: Mr. Andrew Gascoyne Minnitt, Managing Director Business Activity: Jardine Lloyd Thompson Limited (JLT) is a part of Jardine Lloyd Thompson Asia, which in turn is a subsidiary of JLT Group, a 00 a London listed company. JLT is a market leader in insurance & reinsurance
Copyright © 2010 Jardine Lloyd Thompson Ireland Limited. All Rights Reserved.
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broking, risk consultancy and employee benefits services, with over 800 staff in 12 locations across Asia. Our technical abilities and knowledge span a wide range of specialist areas and our team of 75 staff in Bangkok is able to assist with enquiries in all of these areas.
Ruamrudee International School 6 Ramkhamhaeng 184 Minburi, Bangkok 10510 T: +66 (0) 2791-8900, 2518-0320 F: +66 (0) 2791-8901
Representative: Ms. Sudha Maroli, Deputy Head of School Business Activity: Ruamrudee International School (RIS) is a Pre-school - Grade 12 international school offering a modified American curriculum, as well as the IB Diploma and AP programs. Founded in 1957 by Redemptorist Fathers, RIS is jointly accredited by Western Association of Schools and Colleges (WASC) and the Thai Ministry of Education. Ruamrudee is a Thai word meaning “Union of Hearts�. RIS provides quality education and fosters character development in a multi-cultural, caring community. Emphasis on values and character education is a hallmark of learning at RIS. Our students are encouraged to achieve their full potential while developing skills and attributes that help them to become responsible, global citizens and contributing members of society.
Smart World Asia Co., Ltd. 287 Liberty Square, Level 20, Unit 2003 Silom Road, Bangrak, Bangkok 10500 T: +66 (0) 2631-2700-1 F: +66 (0) 2631-2701 #111 Representative: Mr. Bojan Trivic, Managing Director Business Activity: An all encompassing organization that puts communication, work and life experience at its heart. HelloWorld offers a variety of services, ranging from international exchange programs and work abroad opportunities (outbound programs), as well as soft 74
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skills training, English Language Training (ELT) and executive search/ recruitment services for corporate clients and Thai Government.
Trowers & Hamlins International Limited (Regional Office) Suites 15 & 16, CEO Suite, 36 Floor, Menara Maxis, Kuala Lumpur City Centre Kuala Lumpur, Malaysia 50088 T: +60 32-615-0186 F: +60 32-615-0187 Website: www.trowers.com
Representative: Mr. Nicholas William White, Regional Manager
Business Activity: English law firm Trowers & Hamlins has opened a representative Regional Office in Kuala Lumpur. The firm has an extensive track record of acting for Malaysian and ASEAN clients on a wide range of activities, including power and water projects, construction projects, disputes, real estate, oil and gas, corporate and commercial transactions, and on inbound investment to the UK both as to real estate and into other sectors. In addition to its UK presence, Trowers & Hamlins has been in the Middle East for over 50 years, with offices in Abu Dhabi, Dubai, Bahrain, Oman and Cairo, as well as associations in Jordan and Syria.
Vriens & Partners 1049/4, Renova Ploenchit Soi Nai Lert, Ploenchit, Pathumwan Bangkok 10330 T: +66 (0) 87-124-2007
Representative: Mr. Daniel Giles, Senior Associate Business Activity: Vriens & Partners (V&P) is a Singapore-based corporate advisory firm focused on political risk analysis, government relations, and public affairs in Southeast Asia
with strong partnerships across the Asia-Pacific region and beyond. Our skills, experience and reach allow us to offer premier counsel and service to multinationals, non-profits and governments in the fields of government relations, regulatory analysis, and social and mainstream media outreach. The firm provides independent, strategic analysis and risk assessments of the political, regulatory and economic developments around Asia. Our consultants are Asia experts with extensive experience providing analysis and counsel on issues that companies and organizations face in a diverse and challenging part of the world. Resignations/ cancellations: 1. 4 Asia Group Co., Ltd. 2. Adentity Creative Ltd. 3. Association of Life Partners Ltd. 4. Bacardi (Thailand) Limited 5. bbk partrners Co., Ltd. 6. Belzona Polymeric Limited 7. Chaophya Hospital Public Company Limited 8. Construction Cost Consultants Limited Partnership 9. Creative Partnership Co. Ltd., The 10. Easy Panel Construction Co., Ltd. 11. ERM-Siam Co. Ltd. 12. GE Water and Process Technologies (Thailand) Co Ltd 13. GLOWFISH 14. Green Heritage Group 15. Hilton Phuket Arcadia Resort & Spa 16. Holiday FM Ltd. 17. International Market Advisor Ltd (IMA) 18. Jomtien Property 19. Manchester United F&B Bangkok Co.,Ltd. 20. Marriott Hotels & Resorts Thailand-Luxury Hotels & Resorts (Thailand) 21. Martello Realty 22. Microsoft Thailand 23. Nava Nakorn Public Company Limited 24. NewspaperDirect International Company Limited 25. Nielsen Company ( Thailand) Limited (THE) 26. Nouwerk Limited 27. Paragon Executive Search (Thailand) Ltd 28. PeopleServe Asia Limited
ted and d with
29. Publicis (Thailand) Ltd 30. RAPP 31. Red Mango Limited 32. Shama Sukhumvit 33. Siam Legal International 34. Sindicatum Carbon-Capital (SEA) Pte., Ltd. 35. Ten Alps Publishing Ltd. 36. Teo Hong Silom Co., Ltd. 37. Thai Industrial Gases Public Company Limited (Linde (Thailand) 38. Thai Strategic Capital Management Co., Ltd. 39. Tudor Villas Ltd. 40. UK Auto Company Ltd 41. V.Pack & Move (Bangkok) Co., Ltd. New Company Representatives: 1. Emirates, changed from Mr. Khalid Bardan, to Mr. Jabr AlAzeeby 2. Etihad Airways, changed from Mr. Craig Thomas, to Mr. Kirk Albrow 3. Piyavate Hospital, changed from Dr. Piyanuj Ruckpanich, to Ms.
Naowarat Namtian 4. The Royal Bank of Scotland N.V. Bangkok Branch, changed from Mr. Plakorn Wanglee, to Mr. Manfred Schmoelz 5. SDV Logistics (Thailand) Co., Ltd., changed from Mr. Thibalt Janssens, to Mr. Christophe Marc Vincent 6. Securitas Security Services Thailand Ltd., changed from Mr. Steve Graham, to Mr. Rob Scarr 7. Shangri-La Hotel, Bangkok, changed from Mr. Thierry Douin, to Mr. Kieran Twomey 8. Shell Company of Thailand Ltd., The, changed from Ms. Pissawan Achanapornkul, to Mr. Asada Harinsuit 9. TMF (Thailand) Limited, changed from Ms. Suganya Ransigutta, to Mr. Paolo Tavolato 10. Wallem Shipping (Thailand) Ltd. , changed from Mr. Ashley Mawby, to Mr. Dickson Chin Changes of company name: 1. Herbert Smith (Thailand) Ltd., changed to Herbert Smith
Freehills (Thailand) Limited 2. International Fabrication Services Co.,Ltd., changed to Suretank (Thailand) Company Limited Members with new addresses: 1. Meinhardt (Thailand) Ltd. 6th-15th-16th Floor, Thanapoom Tower 1550 New Petchburi Road Makkasan, Ratchtevee Bangkok 10400 T: (0) 2207-0568 F: (0) 2207-0574 2. Raja’s Fashions 160/1, Sukhumvit Road (Near Soi 8, In front of Nana BTS Station) Klongtoey Bangkok 10110 T: (0) 2253-8379-89 F: (0) 2254-2181 3. Regent’s School (The) 601/99, Pracha-Uthit Road Wangtonglang, Bangkok 10310 T: 2957-5777 F: 2957-5777 ext. 55
The Brief
Issue 6/2012
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FINAL WORD
Reckless by name By Dale Lawrence
T
leader told the BBC’s Andrew Marr programme in early November that the issue of a public vote was a matter of ‘when and on what’.
ory MP Mark Reckless is once again in the publicity spotlight at Westminster. He gained notoriety for missing a late-night Commons vote because of his ‘tired and emotional’ state. He is now winning public and media recognition for his stance against the European Union. Mr Reckless (right) irked PM David Cameron and government Whips by coordinating a Commons rebellion in October in which 53 Conservative MPs joined forces with Opposition members to demand a cut (rather than a freeze as desired by Mr Cameron) in the EU budget. Mr Reckless believes that the vote marks the start of an inevitable path towards Britain leaving the EU. “It is a question of when, not if, Britain leaves,” he says. Mr Reckless, MP for the Kent constituency of Rochester and Strood, says that exiting the costly EU is a simple process. “It’s not difficult. We simply repeal the European
Communities Act. We have had 40 years of EU legislation, much of which doesn’t operate in our interests. We would go through that law by law and work out the best for ourselves rather than for other member countries.” He advocates an extended period of disengagement – but only after the British electorate is giving an opportunity to vote in a referendum. That referendum could be held before the next General Election, according to Work and Pensions Secretary Iain Duncan-Smith. The former Tory party
Tim Montgomerie, a writer for the online news and comment website Conservative Home, believes that some two thirds of Conservative MPs want to renegotiate the UK’s relationship with the EU. There is also the suggestion that more than 100 Tory MPs would back an exit strategy from the EU on the right terms. All this is music to the ears of Mr Reckless and his band of Eurosceptics at the Palace of Westminster – as is a recent poll suggesting that a majority of Brits would vote to quit the EU if they were given the chance to exercise their democratic right in a national referendum. Much depends on the approach of the Lib-Dem members of the Coalition. This could yet be another winter of political discontent for the PM.
Bob strikes right chord with busker James
L
ondon street busker James Bowen has found fame, and a possible fortune, thanks to a ginger cat called Bob. James, 33, was trying to kick his addiction to heroin when he was befriended by the ginger stray in the stairwell of his council flat in north London. Five years later and Bob’s story is now on the list of best-selling books in the UK with the prospect of a movie script to follow. James’ book A Street Cat Named Bob was published in March 2012 and topped the Sunday Times list for hardback non-fiction. It’s now sold more than 250,000 copies worldwide in 18 languages. His literary agent Mary Pachnos first spotted James and Bob outside a London underground station. “She
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The Brief
Issue 6/2012
Aniston about a misbehaving dog that forms a special bond with his owners. Now there’s a talk of a movie script about the bond between James Bowen and Bob the cat.
said she had been walking past me for weeks and wanted to know if I was interested in telling my story. Soon we had publishers on board and six months later we had a book.” Mary Pachnos brokered the movie deal for Marley & Me, the Hollywood hit starring Owen Wilson and Jennifer
“I didn’t plan to keep Bob. I’d take him outside but he just wouldn’t run away. I would leave for a day’s busking and he’d follow me up the road. Then one day he followed me onto the bus.” Bob joined James Bowen on his busking stint in London’s Covent Garden and there was a noticeable increase in contributions from passersby. With his first royalty cheque for £30,000 now tucked away, James plans to continue strumming his guitar with his feline friend. “I owe everything to Bob,” he says. “We’ve been on quite a journey together.”
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