T-AB February 2024 by amchamthailand

February 2024

T-AB

THAI-AMERICAN BUSINESS

INSIDE THIS ISSUE: REVOLUTIONIZING ESG STRATEGIES WITH EXECUTIVE SEARCH ROUNDTABLE MEETING WITH THE REVENUE DEPARTMENT AMCHAM FOOD & AGRI ALERT: NUTRITION FACTS IN THE SPOTLIGHT - EDGAR SALMERON ORIENTATION CAMP

FOR THE LOVE OF

growing, thriving, and transforming since 1967. for the love of progress

™

Thai-American Business ISSN-T-A 0125-0191

Contents

February 2024

LETTER 06

Executive Director

FEATURES 08

SEA Primed for Growth: Businesses Must Make Bold Moves and Seize Opportunities

Revolutionizing ESG Strategies with Executive Search

LEGAL UPDATES 16

White Collar Law – Thailand

Enhancing Rights and Welfare: The Freelance Promotion and Protection Bill

FOOD & AGRI-BUSINESS ALERT 20

AMCHAM Food & Agri Alert: Nutrition Facts

SPECIAL UPDATES 24

A Letter from the Government Affairs Director’s Desk

GOVERNMENT ENGAGEMENT 26

Roundtable Meeting with Deputy Director General of Revenue Department

IN THE SPOTLIGHT 28

Edgar Salmeron, Director of Neat Interactive.

MEMBER NEWS 30

Indorama Ventures launches Future Leaders Program

FOUNDATION 32

Orientation Camp

Raja’s Dedication Trip

EVENTS 36

Ransomware and Cybersecurity – Threats to your Business

Factory Visit to Kenvue

Trivia Night

The Life Cycle of a Start-Up Part 4 - Success Stories

TTF 2024

Governors’ Table @The Peninsula Bangkok

NEW MEMBERS 44

Welcome New Members

it’s only human to power a brighter future We believe that the future of energy lies in reducing carbon emissions and mitigating greenhouse gases, thereby ensuring a sustainable and resilient world in all aspects. Chevron Thailand Exploration and Production Limited is committed to advancing technology in reducing greenhouse gas emissions from operations while enhancing the utilization of renewable energy in our production processes to support Thailand's carbon neutrality target by 2050 and net-zero emissions by 2065.

www.chevron.com/sustainability

Letter from the Excutive Director Dear Members, AMCHAM BOARD OF GOVERNORS 2024 PRESIDENT Ornkanya (Mook) Pibuldham, Bank of America N.A.

VICE PRESIDENTS Wiyada Srinaganand, 3M Thailand Chatit Huayhongtong, Chevron Peerasak Gamonsugosol, Honeywell Systems Charles Blocker, IC Partners

TREASURER Simon Denye, Harmless Harvest

SECRETARY Eliot Delunas, Nitro Labs

GOVERNORS Lena Ng, Amata Corporation PCL Narumon Chivangkur, Citibank Ravi Bordia, Kenvue

March is typically one of our busiest months, and this year is no exception - we have something on the calendar for everyone. If you want to enjoy a fabulous black-tie gala, with swashbuckling pirates and the chance to bid on fantastic prizes to support our scholarship program, join our Governors’ Gala on March 16. If you want to hear from the Royal Thai Government, join our Annual General Meeting on March 28, with keynote speaker Dr. Prommin, Secretary-General to the Prime Minister, who will share progress on the new administration’s economic priorities. For updates on the National Single Window (NSW) join our March 12 Virtual Member Meeting with the Customs Department. There are still a few spots left for our Parliament Visit on February 29, but book now as it is selling out quickly.

Jonathan Wood, Mastercard Asama (Prae) Dumrongmongcolgul, Meta Ririnda Tangtatswas, Minor International John Evans, Tractus

BOARD ADVISORS David Lyman, Tilleke & Gibbins AMCHAM President in 1975, 1986

EXECUTIVE DIRECTOR Heidi Gallant T-AB Magazine is a publication by The American Chamber of Commerce in Thailand. 101 True Digital Park, Griffin Building, Level 12A, Unit No.12A-06, Sukhumvit Road, Bangchak, Phra Khanong, Bangkok 10260 Tel: +66 (0)2 119 3350 www.amchamthailand.com Editorial Advisory Board: Heidi Gallant Editorial Team: Varsha Wadhwani, Gawinnart Phupianlert, Aphirak Klayna, Nutcha Sangthai Any opinions expressed in articles in this magazine do not necessarily reflect the views of the Chamber. T-AB Magazine welcomes contributions from AMCHAM members. Articles may be reproduced with acknowledgement,

If you engage in CSR activities, join our Connecting For Corporate Impact Member Forum on March 8. Our Corporate Social Impact Awards Committee will share 2024 directions and themes, and the 100+ participating companies can connect with peers, find partnerships, and meet with our ESG, DEI, AMCHAM Women, and Digital Economy Committees/Councils to support your initiatives. Our Councils – Government Affairs, Healthcare, and ESG - continue to gather members for focused working meetings. Our Tax Council will share updates on their recent Revenue Department meeting regarding the recent notification on foreign-sourced income and other topics. Our Committees are bringing great event programming to members, with an HR event on Future Proofing Your Talent Acquisition and an AMCHAM Women event on Inspire Inclusion. Our Business Economics Committee is planning an online speaker event on macroeconomics and the Thai economic outlook for the end of the month. And finally, if you are one of the 30 members who have newly joined us in 2024, please don’t miss our New Member Orientation, where we will walk you through all of these different activities that we offer.

except those taken from other sources.

Sincerely, Heidi Gallant

EXCLUSIVE TIER MEMBERS 2024 PLATINUM

GOLD

SILVER

FEATURE

SEA Primed for Growth: Businesses Must Make Bold Moves and Seize Opportunities

By Praneeth Yendamuri, Dhruv Vohra and Sameer Mehta, Bain & Company, Meta and DSG Consumer Partners.

Consumer product companies and brands are beginning to regain their footing after facing several difficult quarters marked by surging inflation, dim economic prospects, and rising interest rates that slowed spending on consumer goods across various sectors. For consumer product companies, growth has largely come from pricing rather than volume. In Southeast Asia, consumers have cut their spending in the short term. But the good news is that macro forces are ripe for long-term growth For brands that are already present in Southeast Asia and those considering a meaningful presence in the region, having a playbook outlining the rules of the game and the trends shaping the region’s consumer categories is crucial. With this objective, in Q3 2023, Bain & Company partnered with Meta and DSG Consumer Partners to conduct a survey involving senior executives from consumer product companies 8

and 9,000 consumers across Southeast Asia to gain insights into issues likely to drive the expansion of consumer products in the region over the next five years. The results are detailed in the SYNC Southeast Asia report, Bold Moves: Leading Southeast Asia’s Next Wave of Consumer Growth. The report unveils several traits defining consumer behaviors, with a significant focus on their current, value-conscious spending habits. It emphasizes that the region comprises diverse countries and cultures, each with its market preferences that brands must recognize and engage with. As the third most populous region in the world, with more than 700 million residents, and the third-fastest-growing large economy, Southeast Asia’s status as a market block is well-established. In the coming years, its market influence is expected to grow further, particularly as private equity and venture capital funding

To achieve market leadership in the region, companies must recognize Southeast Asia as “same-same, but different.” Each battleground (market, channel, or consumer segment) needs to be won separately, necessitating strategic prioritization and resource allocation. Once the “where to win” is clear, companies can focus on “how to win.”

continue to pour into the region, prompting companies to de-risk their supply chain footprint. The region’s expected typical GDP growth rate is projected to well exceed the global average of 2-3%, with some Southeast Asian countries expected to double it. This economic upswing, along with a boost to the region’s high- and upper-middle-class populations is expected to lead to new levels of consumer spending, particularly in previously untapped markets, including luxury goods. Already, certain categories, such as beauty products and branded apparel, are shifting in consumers’ minds from “wants” to “needs.” This shift reflects Southeast Asian shoppers’ growing willingness to pay for elevated goods that may have once seemed extravagant, if their value is evident. The report also emphasizes the future influence of Gen Z — currently between the ages of 17 and 27 — in expanding and shaping the Southeast Asian marketplace, particularly in their preference for online shopping and products that align with their values of individuality, authenticity, sustainability, and identity. Interestingly, older consumers are not far behind Gen Z in their reported daily use of online shopping channels and digital tech, including exploration of new technologies, such as AR/VR electronics. The key takeaway is clear: for successful market growth, companies must adopt nuanced/personalized marketing approaches and offer products that resonate with all age demographics in Southeast Asia.

Brands can draw inspiration from “insurgent disruptors” companies effectively capturing market shares from incumbents to profitably and quickly grow in the region. These brands report success intaking shares away from incumbent brands, leading to significantly higher share volatility in the last five compared to the preceding five years. They achieve this success by deploying one of five strategies: 1. The Localized Traditional Approach (specialized or localized products priced for the masses) 2. The High-End, Digital First Approach (purpose-driven, digitally enabled operations at premium pricing). 3. The Low-Cost Champion Approach (economy pricing to target consumers from lower-to midincome levels). 4. The Retail Copycat Approach (affordable, retail-branded products that mimic the look and feel of high-end branded goods). 5. The Shapeshifter Approach (products focused on delivering new solutions for unmet needs). Significantly, the survey revealed the region’s consumers to be more concerned about their well-being than US and European consumers. Overall, Southeast Asian shoppers report a strong willingness to pay for wellness goods, including sports nutrition, fitness wearables, and vitamins or supplements. However, the high costs and limited availability of these products prevent their broader market adoption. In addition, savvy shoppers throughout the region express a growing preference for products that are customized or personalized to fit their unique needs, spanning wellness and baby care products to beauty products and electronics. Given that personalization strategies are 9

expensive and hard to execute at scale, many companies are embracing AI to explore ways to bring production down and delivery costs. Beyond personalization of actual products, consumers show a strong preference for personalized content and marketing. When marketing reaches the level of personalization, shoppers are more likely to spend more on a product or brand (63%) and recommend it (66%). AI has become an important tool for businesses to meet these expectations at scale and across the entire customer journey. With the Southeast Asian consumer increasingly embracing AI and use cases growing, the region is well suited for AI to gain momentum. Targeted Playbook for Effective Brand Growth For brands ready to make a bold move in Southeast Asian markets, the report suggests a four-step action model for success: Prioritize, Sequence, and Fund your Southeast Asian Ambition Brands should base their top priorities in the region on future-facing opportunities and seek funding accordingly. Companies must strategically choose which markets, channels, and consumers to target. Brands that avoid a one-size-fitsall model and effectively discern where to go deep versus broad in their marketing approach will net the greatest profit gains.

Dhruv Vohra is Managing Director at Global Business Group, Mid-Market, APAC at Meta.

Build an Obsession with the “Local” Consumer Companies must have an exhaustive understanding of their target consumers’ preferences and buying habits to cater to them effectively. This involves meeting and engaging consumers where they are. Evolve your Business Models and Consumer Engagement Future-winning models in Southeast Asia are markedly different from historically winning ones. We predict the greatest success for companies that target one or more of the following approaches: top-line growth and ESG prioritization, fully local product specialization, a flexible approach to asset ownership, and investments in disruptive or innovative marketing platforms, including those driven by AI-powered data analytics. Become a “Scale Insurgent Disruptor” Companies primed for success in the Southeast Asian market must engage the best approaches from the insurgent and incumbent mindset. Southeast Asia is primed for growth now. For companies ready to move strategically, the region presents a rare opportunity to expand both brand loyalty and brand reach in previously untapped markets within one of the fastest-growing consumer segments on the globe.

Praneeth Yendamuri is a Partner at Bain & Company.

Sameer Mehta is Investment Director and Head of Southeast Asia at DSG Consumer Partners.

18 • American Chamber Of Commerce In Thailand

FEATURE

Revolutionizing ESG Strategies with Executive Search By Lelia Lim, Lim-Loges & Masters

The business world is constantly evolving and adapting to new trends and challenges. One such trend that has gained significant traction in recent years is Environmental, Social, and Governance (ESG) strategies. This set of criteria used by companies to evaluate their environmental impact, social responsibility, and corporate governance is moving to the forefront for companies as investors and customers demand more transparency and accountability from businesses. As companies strive to incorporate ESG initiatives into their operations, they have turned to executive search firms to help them find the leaders who can drive their ESG efforts forward. Uniquely positioned to assist organizations in achieving their ESG strategies, how have executive search firms positioned themselves as an integral partner in implementing them?

and social issues, including the rise of socially responsible investing. According to Global Impact Investing Network report, sustainable and impact investing assets reached 715 billion dollars in 2020, nearly double the amount from just two years prior. As companies strive to meet the escalating demand for ESG initiatives, they encounter new challenges. They require leaders who can navigate this complex landscape and foster positive change, making executive search firms instrumental. The Role of Executive Search Firms in ESG

The Rise of ESG Strategies

Asia Pacific has seen 30 percent growth in hiring for green jobs — defined as jobs that require sustainability skills — between 2016 and 2021, according to a global study of job searches on business social network LinkedIn, which boasts 800 million members across 200 countries.

ESG strategies have existed for decades, but their significance has surged in recent years due to the increasing awareness of climate change

As experts in identifying and attracting top-level talent for organizations, executive search firms have a deep understanding of various industries

and their unique leadership requirements. Therefore, as ESG strategies continue to gain importance, leading executive search firms have incorporated them into their recruitment process. ESG strategies involve a wide range of initiatives, from reducing carbon emissions to promoting workplace diversity and inclusion. These areas require leaders with a diverse skill set and a deep understanding of the critical issues involved, causing executive search consultancies to adapt their methodologies to identify candidates with the necessary combination of experience, skills, and personal commitment to drive ESG strategies forward. This adaptation involves developing a more comprehensive and nuanced approach to evaluating prospective candidates beyond the traditional metrics of experience and skillsets. Firstly, they delve deeper into a candidate’s understanding and experience of ESG-related issues – their ability to formulate and execute sustainable strategies and their track record in delivering positive ESG outcomes. Secondly, they scrutinize a candidate’s ability to engage with various stakeholders, including shareholders, employees, and the public, on ESG matters. Strong communication skills are critical to ensure transparent and effective implemented EGS strategies.

align with the company’s ESG goals. This is crucial to ensure the company’s successful integration and adoption of these strategies The Importance of Diversity within ESG Diversity stands as a crucial aspect of ESG strategies, requiring companies to have diverse leadership teams that reflect the communities they serve. Executive search firms have made diversity a key component of their recruitment process by leveraging their extensive networks, utilizing technology to eliminate bias and implementing diversity training for their employees. This not only helps companies meet ESG expectations but also improves overall performance. Long-Term Impact of Recruitment on ESG The impact of executive search firms on ESG strategies goes beyond initial recruitment. Those who genuinely understand the significance of these long-term ESG goals for organizations work closely with them to onboard and retain toplevel talent. They guide and support the company and the new leader throughout the integration process.

Finally, they consider a candidate’s personal values and commitment to ESG principles. Through interviews and reference checks, search firms evaluate whether a candidate’s beliefs 13

operations. Companies need leaders who can effectively drive their ESG initiatives forward as they navigate this complex landscape. Executive search firms adapting rapidly to this changing environment and playing a significant role in identifying and securing top-level talent for organizations are transforming how businesses approach ESG strategies. This is leading to more sustainable and responsible practices. The future of the business is undoubtedly intertwined with ESG strategies, and executive search will continue to play a crucial role in this journey. Whether you are a company looking for top-level ESG leaders or an individual seeking a career in this field, executive search firms can assist you in achieving your goals and make a positive impact.

Moreover, executive search firms also play a crucial role in succession planning. As ESG strategies continue to evolve, companies will require leaders with a deeper understanding of these issues to assist organizations in preparing for the future. Executive search firms excel at identifying and developing future leaders who can drive these ESG efforts forward. Advancing ESG Strategies ESG strategies are no longer just a trend but have become a crucial aspect of business

Lelia Lim has been leading C–suite searches across Asia pacific since 1997 and is the principal founder for Lim– Loges & Masters and the Managing Partner, Asia Pacific.

"Our Vision is to be a Leading Tech and Innovative Conglomerate, Providing Food for both Body and Mind, that Creates Shared Value and Brings Health and Well-being for All."

"Making Today A Better Tomorrow"

HIGHLIUPDATES GHT LEGAL

White Collar Law – Thailand By Christopher Osborne and Chanakarn Boonyasith, Nishimura & Asahi

Every year, employee fraud costs organizations 4.7 trillion US dollars globally, according to the Association of Certified Fraud Examiners Occupational Fraud 2022: A Report to the Nations. Background checks often fail to reliably identify candidates with a history of fraud, and external audits seldom detect fraudulent activities. The most effective action employers can take to detect fraud is to establish a hotline through which customers and clients can report fraudulent activities. Employers can suspend suspected employees during fraud investigations only if the company’s work rules and terms of employment grant the employer the right to do so. Otherwise, Thai labor law prohibits employers from suspending employees without full pay during investigations. Companies with ten or more employees must create work rules that address mandatory issues and can include additional matters. Employers terminating employees suspected of committing fraud are required to provide severance pay and provide appropriate notice of termination, unless they can demonstrate the employees’ actions fall within an exception to these legal requirements. Severance pays can 16

be as high as 400 days’ wages, and white-collar notice periods often range between 30 and 90 days. An employee’s breach of the company work rules is an exception to the previously mentioned requirements. It permits employers to terminate employees without notice and severance pay if the company’s work rules include policies governing employee conduct, and the employee’s conduct constitutes a serious breach (or repeated nonserious breach) of the relevant rules. Employers without work rules that explicitly prohibit employee fraud will need to establish that the employee’s conduct falls within a different exception if they wish to avoid paying severance upon termination. Some of these exceptions include: •

Falling to faithfully discharge the employee’s duty. However, this does not always eliminate the obligation to pay severance. The company can terminate the employee immediately but may still be required to provide severance pay.

•

Intentionally committing a criminal offence. Yet, fraud involving a misuse of influence in

violation of a duty owed to the employer (for example, bribery and conflicts of interest) is not always a criminal offence under Thai law, constituting 57% of fraud cases in the Asia Pacific region. •

Dishonest performance of duty. However, situations involving bribery and conflicts of interest could arise without involving “dishonesty,” as currently interpreted by Thai courts.

•

Willfully causing damage or negligently causing serious damage to the employer. However, bribery and conflicts of interest may not always

Christopher Osborne boasts over 20 years of expertise collaborating with Thai lawyers on cross-border M&A and regulatory issues, offering global solutions for businesses entering the Thai market.

result in measurable damage to the company, and proving intent to cause damage to the company is difficult to prove, in practice. To tackle the widespread issues of the prevalence of bribery and conflicts of interest in the Asia Pacific and navigate the challenges of terminating an employee without paying severance, employers should review their work rules. It is crucial to ensure these rules clearly and effectively regulate bribery and conflicts of interest.

Chanakarn Boonyasith is a partner heading the labor & and employment practice as well as specializing in personal data protection law and commercial contracts.

HIGHLIUPDATES GHT LEGAL

Rights and Welfare: The Freelance Promotion and Protection Bill By Panisa Suwanmatajarn, The Legal

In the 21st century, the digital age has transformed the global landscape, leading to an increased reliance on electronic devices and digital platforms for daily survival. This shift is prominent in major Asian cities like Bangkok, where traditional cash transactions are being replaced with digital payments such as credit cards, debit cards, and QR codes. Alongside this digital revolution, applications like Grab, Bolt, and Robinhood have introduced a new paradigm of work facilitated by independent contractors or partners, offering services ranging from food delivery to transportation.

that aims to establish a distinct category for these contractors, recognizing them as semiindependent professionals or semi-freelancers.

Independent contractors, despite their indispensable role, commonly known as partners, often find themselves in a precarious situation. Although their work may resemble that of employees, they do not enjoy the same level of protections provided by traditional employment laws. To address this pressing issue, the Ministry of Labor has introduced the draft Freelance Promotion and Protection Bill

Regulating Agreements for Transparency and Fairness

Safeguarding Semi-Freelancers The Bill aims to protect semi-freelancers by prohibiting business operators from arbitrary termination of their services during the resolution of complaints or in case of serious allegations. This provision is designed to provide a safety net for semi-freelancers, ensuring a fair process before any cessation of work.

The Bill recognizes the importance of transparency and fairness in agreements between business operators and semi-freelancers. Through the regulation of these agreements, the legislation seeks to create a working relationship that respects the rights and interests of both parties.

Strengthening Collective Bargaining Power Recognizing the collective strength of freelancers and semi-freelancers, the Bill promotes the formation of worker’s unions. This empowers freelancers to engage in collective bargaining, fostering a more equitable working environment and ensuring that their voices are heard. Establishing a Dedicated Committee The establishment of a Freelance Promotion and Protection Committee underscores the commitment to safeguarding the rights and promoting the well-being of freelancers. This Committee will serve as a dedicated body to address emerging issues and ensure the effective implementation of the Bill. In conclusion, the Bill represents a crucial step towards acknowledging and addressing the unique challenges faced by freelancers and semifreelancers in the evolving digital landscape. By providing legal recognition, ensuring job security, and establishing mechanisms for dispute resolution and collective bargaining, the Bill aims to foster a more equitable and supportive environment for those engaged in freelance work. Ultimately, this legislation endeavors to build a robust social security net, promoting the rights and well-being of freelancers and semi-freelancers in the contemporary workforce.

Enhancing Well-Being To enhance the well-being of semi-freelancers, the Bill proposes the establishment of a fund where members can contribute. This fund would provide benefits such as access to credit unions, insurance coverage, and other rights, offering a social security net for individuals engaged in freelance work. Arbitration Mechanisms for Dispute Resolution The Bill empowers semi-freelancers with the right to arbitrate labor disputes through tribunal, arbitrator, or the labor court. This ensures a fair and impartial resolution mechanism that considers the specific nature of freelance work.

Panisa Suwanmatajarn is a Managing Partner of The Legal. She has extensive experience in various fields of law including corporate and commercial, intellectual property, and information technology fields.

HIGHLI Food & GHT Agri-Business Alert

Nutrition Facts By AMCHAM Food & Agri-Business Committeeไ

Understanding the nutrition facts label on food items can help you make healthier choices. The label breaks down the amounts of calories, carbohydrates, fat, fiber, protein, and vitamins per serving of the food, making it easier to compare the nutrition content of similar products. On January 4, 2024, the Thai Food and Drug Administration (TFDA) implemented four regulations in the Government Gazette pertaining to nutrition information. These are important new rules that will affect food businesses in Thailand. 1. Notification of the Ministry of Public Health (No. 445) B.E. 2566 (2023) issued by virtue of the Food Act B.E. 2522 Re: Nutrition Labels This Notification repeals and replaces the following Notifications: 1) Notification of the Ministry of Public Health (No. 182) B.E. 2541 (1998) Re: Nutrition Labeling 2) Notification of the Ministry of Public Health (No. 219) B.E. 2544 (2001) Re: Nutrition Labeling (No. 2) 20

3) Notification of the Ministry of Public Health (No. 392) B.E. 2561 (2018) Re: Nutrition Labeling (No. 3) In Thailand, a nutrition facts label is compulsory for foods that present nutrition claims, health claims, and food values in sales promotions. In addition, foods that are required to bear the Guideline Daily Amounts, GDA Labeling (for example, snacks, chocolates, bakery products, beverages, dairy products, ice cream, and more) are also required to present a nutrition facts label. It is a voluntary inclusion for other foods. One important change that will affect food businesses is the new format requirements for a nutrition label.

A second change that may also affect food businesses is the revised amounts of Thai Recommended Daily Intakes (RDIs) for vitamins and minerals. The updated Thai RDIs are as follows:

2. Notification of the Ministry of Public Health (No. 446) B.E. 2566 (2023) issued by virtue of the Food Act B.E. 2522 Re: Food Products Required to Bear Nutrition Labeling and Guideline Daily Amounts, GDA Labeling (No. 2) The TFDA has reviewed the criteria and conditions for displaying a nutrition table in the Notification of the Ministry of Public Health on nutrition labeling. Hence, the nutrition labeling requirements of the Notification of Ministry of Public Health (No. 394) B.E. 2561 (2018) Re: Food Products Required to Bear Nutrition Labeling and Guideline Daily Amounts, GDA Labeling should comply with the Notification of the Ministry of Public Health Re: Nutrition Labeling. 3. Notification of the Ministry of Public Health (No. 447) B.E. 2566 (2023) issued by virtue of the Food Act B.E. 2522 Re: Health Claims in Foods to be Displayed on a Label This Notification provides the requirements for displaying health claims on food labels, including the guidelines for the safety assessment of a new health claim not previously accepted by the TFDA. “Health claim” means a declaration or statement, image, mark, symbol, trademark, or any information related to the relationship between a food or a constituent of that food, and health benefits, both directly and indirectly, as classified into three types: 1) “Nutrient function claim” means a declaration of benefits related to the physiological role of the nutrient in the growth, development and normal functions of the body.

Food companies will need to prepare new nutrition facts labels to comply with this Notification. The TFDA provides an exemption period for foods having nutrition labels made prior to this Notification becoming effective. This period will not be more than three (3) years from the date this Notification becomes effective.

2) “Other function claim” means a declaration of specific beneficial effects of the consumption of foods or their constituents in the context of the total diet on normal functions or biological activities of the body. Such claims relate to a positive contribution to health or to the improvement of a function or to modifying or preserving health. 3) “Reduction of disease risk claim” means a declaration of benefits related to consuming a food or food constituent to the 21

of the Ministry of Public Health (No. 445) B.E. 2566 (2023) issued by virtue of the Food Act B.E. 2522 Re: Nutrition Labels.

reduced risk of developing a disease or healthrelated condition. 4. Notification of the Ministry of Public Health (No. 448) B.E. 2566 (2023) issued by virtue of the Food Act B.E. 2522 Re: Food Supplements (No. 5) This Notification provides the updated maximum limits of vitamins and minerals for use in food supplements. The minimum limits of vitamins and minerals for use in food supplements are more than 15% of Thai RDIs, as set out in the Notification

The interesting changes are as follows: • Vitamin D changes from 5 mcg to 15 mcg. • Vitamin B1 changes from 1.5 mg to 100 mg. • Vitamin B2 changes from 1.7 mg to 40 mg. • Pantothenic Acid changes from 6 mg to 200 mg. • Vitamin B12 changes from 2 mcg to 600 mcg. Biotin changes from 150 mcg to 900 mcg. • Vitamin C changes from 60 mg to 1,000 mg. • Chromium changes from 130 mcg to 500 mcg. These Notifications will become effective on July 2, 2024. Foods having nutrition labels or health claims made prior to these Notifications can remain in use throughout distribution, but for not more than three (3) years as from the date this Notification becomes effective. This means that all products in the market should comply with these new Notifications on or after July 2, 2027. The Food & Agri-Business Alert is provided by the AMCHAM Food & Agri-Business Committee.

Click here to register

THERE’S MAGIC WHEN WE EAT TOGETHER

HIGHLIGHT SPECIAL UPDATES

A Letter from the Government Affairs Director’s Desk Dear Members, The year 2024 holds both challenges and opportunities for Thailand, marking it as an exciting period ahead. Adding to the excitement, the government is dedicated to attracting foreign investment and eager to work with AMCHAM on improving ease of doing business. In December 2023, AMCHAM collaborated with the new Regulatory Reform Committee, led by Prof. Dr. Tongthong Chandransu. Together with his sub-committees on Business Development, International Trade, Super License, and Clean Energy, they are working on addressing key issues to enhance Thailand’s competitiveness. AMCHAM is committed to deploying our member resources and providing feedback to the committee. Our roundtable meeting with the Revenue Department, led by the Tax and Customs & Excise Councils, was productive and informative. We received clarification on implementation of the tax on foreign sourced income, with the promise of written responses to some of our queries. While the department was not able to offer details on the first draft of the Organization for Economic Co-operation and Development (Base Erosion and Profit Shifting) Pillar II model, it is expected to be published in Q1. Regular meetings with the Revenue Department are being planned by AMCHAM this year to stay abreast of developments for these important member concerns. This year will also see the introduction of many regulations related to Climate Change and the Green Economy. These are being followed by our Environment, Social, and Governance (ESG) Council. We are also pleased to welcome new councils with regular working group meetings: Food & Agribusiness, Tax, and Tourism & Hospitality. We look forward to collaborating with council leaders and members to address your concerns and advocate with the government.

We have set ambitious goals for 2024! If there are pressing issues impacting a significant number of members, we encourage you to reach out to our team. Together, we can accomplish even more. Jen Meckhayai Governmenr Affairs Director

HIGHLIGHT GOVERNMENT ENGAGEMENT

Roundtable Meeting with the Revenue Department (RD), Ministry of Finance (MOF)

On January 17, AMCHAM President Ornkanya (Mook) Pibuldham of Bank of America and AMCHAM members, met with Vinit Visessuvanapoom, Deputy Director-General acting as Principal Advisor, Nirandara Prachaubmoh, Deputy Director-General and their team. The Revenue Department team provided insights into the ongoing tax policies, including clarification on the documents required to support foreign-sourced income tax and an update on the OECD BEP Pillar II Global Minimum Tax model. They facilitated a discussion on transfer pricing adjustments, the audit process for Good Exporter and Registered Exporter applications, and merger and acquisition transactions. Both parties agreed to follow-up meetings to discuss technical issues throughout the year. AMCHAM is ready to collaborate closely with the government to cultivate an effective and efficient Thai tax system, ultimately benefiting the Thai economy. 26

IN THE SPOTLIGHT Edgar Salmeron is the Director of Neat Interactive. He serves as a Co-Chair on the AMCHAM SBE Committee. Why did you join AMCHAM? We joined AMCHAM to gain visibility for our business and learn from fellow entrepreneurs, founders, and C-level executives. We joined just before Covid-19, when restrictions on movement and gatherings limited our ability to connect and network. The monthly online AMCHAM activities kept us connected and informed. We are glad we joined AMCHAM and look forward to remaining in the chamber long-term. How has committee involvement enhanced your experience and network within AMCHAM? During my first years in AMCHAM, I felt that membership provided me with plenty of benefits. There were quality events to choose from, ample opportunities to connect with industry leaders and professionals, and a supportive AMCHAM team, who were always ready to answer questions or make introductions. I wanted to contribute more than just attending events and networking and wanted to give back to the Chamber. Luckily, I joined the Small Business & Entrepreneur (SBE) Committee, where I have had the opportunity to work closely with my fellow Co-Chairs in organizing various events for AMCHAM, bringing together quality speakers and a diverse audience from both inside and outside the Chamber. Additionally, our events have been well received throughout the year, and it has been a real pleasure to have attendees and speakers thank us for putting on these types of events. It has also been a great opportunity to work closely with the AMCHAM staff, who have been supportive, even as we occasionally push the envelope with our event ideas. For foreign entrepreneurs entering the Thai market, what advice can you provide? I would advise entrepreneurs to begin with an open mind and understand that the way we conduct business in our own countries may not align with the business practice in Thailand. Research the market, industry, and regulations thoroughly by engaging with both Thai and foreign professionals who have been doing business in Thailand for many years. Consider joining an organization like AMCHAM and take advantage of the various opportunities available to learn and network.

MEMBER NEWS

Indorama Ventures launches Future Leaders Program

Indorama Ventures, a global sustainable chemical company, launched its first Future Leaders Program (FLP), the latest addition to its portfolio of tailored leadership development programs. The program targets young leaders across the global organization and is designed to facilitate and accelerate the development of critical leadership skills for future a role at Indorama Ventures. Structured over a 12-month journey, the program employs a blended learning approach, including contextualized assessments, self-paced learning modules, coaching, mentoring, and experiencebased assignments. Participants will collaborate on individualized development actions aligned with their Individual Development Plan, working closely with their managers. Leadership development is an integral part of Indorama Ventures’ employee value proposition and Vision 2030, which aims to develop the next 30

generation of empowered leaders with an agile growth mindset in three areas: growing the core of their business, expanding their portfolio, and embracing sustainability. The company’s people development strategy has earned it numerous awards and accolades, including the HR Asia Best Companies to Work for in Asia 2023 (Thailand edition) Award. Indorama Ventures is creating a dynamic and innovative environment for growth and learning for leaders at all levels within its diverse and multicultural workforce consisting of more than 26,000 employees worldwide.

FOUNDATION

AMCHAM Thailand Foundation Empowers Future Leaders with Insightful Workshops at Annual Scholarship Orientation Camp

The American Chamber of Commerce in Thailand Foundation (ATF) welcomed its new scholarship recipients for the 2023-2024 academic year for a two-day orientation camp in Bangkok from January 29 – 31. Over these two days, students actively participate in a series of workshops and activities designed to provide valuable insights and essential life skills as they embark on their educational journey at universities and vocational schools. Heidi Gallant, the Vice President of the ATF and Executive Director of the American Chamber of Commerce in Thailand (AMCHAM), said, “Our ATF Scholarship program and the 32

orientation and career camps empower students with the necessary tools for navigating their path to employment. Member companies proactively contribute by raising crucial funds for the program, offering resources for vital personal and career development workshops, and generously sponsoring gifts for the student goody bags.” AMCHAM member companies organized workshops focusing on essential skills. Tanaryu Meesitita of Dale Carnegie organized the ice-breaker activity, while First Aid Training Bangkok conducted the CPR training workshop. Thanaporn Jirarattanarungsri of UOB led the basic personal finance workshop, covering topics such as budgeting and saving. Busayapa Srisompong of Shero Thailand spearheaded a workshop on handling abuse in relationships and the DrinkiQ workshop, by Shutchada Chandrangsu and Khemika Ratanakul of Diageo, focused on educating students about the risks associated with excessive alcohol consumption and how to stay safe if they choose to drink. The workshops were well-received by the scholarship recipients, who described them as informative and practical. “I have learned so much from the AMCHAM Orientation Camp, especially how to communicate effectively,” said Mongkolchai Nakchoom, a scholarship recipient from Naresuan University. Natthapat Kaewjamnong from Chonburi Technical College added “The AMCHAM Scholarship opens doors for my future ambitions, especially coming from a vocational background, allowing me to meet new friends. More importantly, the camp workshops are practical for personal development, and I highly enjoy them.”   The ATF supports financially disadvantaged students, providing academic, vocational, and professional opportunities. By working together with member companies and conducting diverse workshops and activities, the ATF equips its scholarship recipients with the tools they need to succeed and make a positive impact in their communities.

HIGHLIGHT FOUNDATION

AMCHAM and Raja’s Fashions Dedicated the 19th Classroom Building in Ubon Ratchathani

On January 21, AMCHAM Thailand together with Raja’s Fashions dedicated a new threeclassroom building at Ban Sompornrat School in Ubon Ratchathani. Raja’s Fashions sponsored the construction of the school building and provided school supplies to facilitate the learning experiences of the students. Investing in education is the mission of the AMCHAM Thailand Foundation (ATF) and is a win-win for AMCHAM members depending on a high-quality workforce. 34

EVENTS Security Commitee

Ransomware and Cybersecurity – Threats to your Business – Jan 16 Speakers:: Alex Konnaris of RMA Group, Matthew E. Wright of Homeland Security Investigations Bangkok and Police Colonel Jessada Burinsuchat of the Cyber Security Investigation Unit in the Royal Thai Police Moderator: AMCHAM Security Committee Co-Chair Matt Garda of Hill & Associates Organized by: Security Committee Event Highlights: Speakers illuminated the growing threat of cybercrime as a prominent global risk for 2023 and beyond. Presentations delved into the details of ransomware and underscored cybersecurity measures such as intricate passwords and multi-factor authentication. The interactive question-and-answer session offered valuable insights into the changing threat landscape. To wrap up the event, attendees gathered for networking at Wine Connection. The event not only heightened awareness about cybersecurity but also fostered a dynamic exchange of ideas and strategies among the diverse group of participants.

Manufacturing Commitee

Factory Visit to Kenvue (J&J Consumer Health Company) - Jan 19 Organized by: Manufacturing Committee Event Highlights: AMCHAM members participated in a factory visit to Kenvue (Thailand), located in Lat Krabang, Bangkok. The program started with a comprehensive safety and protocol briefing and an insightful introduction to Kenvue (Thailand) and Kenvue’s iconic brands which are recommended by healthcare professionals and experts and used by ~1.2 billion people globally in their daily rituals and the moments that matter most. Afterwards, the members were guided on a fascinating tour, providing them with an up-close look at Industry 4.0 technologies and capabilities that create value, improve end-to-end flow, and support more sustainable operations.

EVENTS Young Professionals Committee

Trivia Night @ Roadhouse Barbecue– Jan 25 Organized by: Young Professionals Committee Event Highlights: “Trivia mastery opens the door to triumph!” AMCHAM Young Professionals Committee hosted an enjoyable Trivia Night at Roadhouse Barbecue. The event was filled with laughter and joyful competition, providing all attendees with the opportunity to showcase their trivia knowledge. All proceeds raised at the event will contribute to the AMCHAM Thailand Foundation scholarship program, providing assistance to disadvantaged Thai students to fulfil their academic aspirations. Sincere thanks to Bank of America for their sponsorship of the event!

NOW TRENDING

V E GA N . C O LO U R S F RO M N AT U R A L S O U RC E S . Our new chewy candies deliver the innovation consumers expect from Jelly Belly.® Featuring fun shapes, great tastes and ingredients that appeal to all age groups, they set the trend for what a modern candy can be.

EVENTS SBE Commitee

The Life Cycle of a Start-Up Part 4 - Success Stories: Surviving, Thriving and Scaling as a Small Business in Thailand - Jan 26 Speakers: Luca Dotti of HOMA, Autcharawan (Gay) Pratumwan of Island Technology, Paul Crosio of Silk Legal, and Viona Zhang of SAIJAI Moderator: AMCHAM SBE Committee Co-Chair Edgar Salmeron of Plat Ventures Organized by: SBE Committee Event Highlights: The AMCHAM SBE Committee organized its final event in its four-part event series focused on starting, scaling, going to market, and stabilizing a small business/startup. The event featured a panel on success stories of small businesses and emphasized the results of innovation, adaptation, and resilience. AMCHAM members enjoyed an evening of knowledge sharing and networking in this Phuket event.

Thailand Tourism Forum (TTF)

AI Set to Drive Thailand’s Leadership as The World’s Premier “Lifestyle” Travel Destination: Thailand Tourism forum 2024 - Jan 15 Event Highlights: Thailand’s position as the world’s leading “lifestyle” travel destination was the hot topic of debate at TTF, held at InterContinental Bangkok as AI emerged as a key driver to the future success of the country’s tourism industry. Founded by Bill Barnett, TTF is Thailand’s leading platform for travel and tourism discussion. Industry leaders from government and private sectors come together each year in January at the eagerly awaited annual forum for insights and indicators for the future trends of the sector. Read full article here

EVENTS AMCHAM Signature Event

Governors’ Table @ The Peninsula Bangkok – Feb 1 Event Highlights: Host: Wiyada Srinaganand of 3M Thailand; Narumon Chivangkur of Citibank; and Ririnda Tangtatswas of Minor International The AMCHAM Board of Governors hosted AMCHAM members at the Governors’ Table for an executive dinner fostering connections. AMCHAM members enjoyed the networking experience with the premier business community at The Peninsula Bangkok. The evening started with introductions, followed by networking and dinner.

NEW MEMBERS

Welcome New Members CORPORATE MEMBERS The Holiday Inn Bangkok Silom is situatedon Silom Road, at center of Bangkok’s prime commercial, shopping, and entertainment district. Adjacent to the city’s jewelry sector, the hotel provides easy access to Bangkok’s suburbs, tourist attractions, and Suvarnabhumi International Airport. B A N G KO K S I LO M

LightBlue is an UN-awarded Food Waste Prevention Tech and Consultancy organization, that reconciles Sustainability with Business Excellence. Since 2012, they have developed unique skills, technologies, and methodologies to minimize food waste and enhance sustainability in operations.

Established in 2006, Medix is a global and leading provider of innovative, high quality, medical management solutions. With offices in London, Hong Kong, Shanghai, Singapore, Jakarta, Kuala Lumpur, Bangkok, Melbourne, Mumbai, and Tel Aviv; Medix’ client base exceeds 6 million members, spread across over 90 countries.

ONYX Hospitality Group combines the expertise of an international team with the warmth and excellence for which Asia is renowned. Founded to oversee the operations and development of the rapidly growing Amari, Shama and OZO portfolio, ONYX has over five decades of management experience in the Asia Pacific region.

ps-engage

Government Relations Consultancy

PS-engage is a Singapore-based company that focuses on constructive engagement activities, government relations consulting, and establishing public and private partnerships. The team at PS-engage comprises skilled government relations and legal professionals with extensive experience across the Asia-Pacific region.

January 2024 A multiple award-winning airline, Qatar Airways won the ‘World’s Best Business Class’ for the tenth time at the 2023 World Airline Awards, managed by the international air transport rating organization, Skytrax. The airline remains synonymous with excellence, also securing accolades for Best Airline in the Middle East, World’s Best Business Class Lounge, and World’s Best Business Class Lounge Dining at the 2023 Paris Air Show.

RIVA

MOISSANITE

Riva Moissanite is a distinguished bespoke jewelry company that specializes in custom-crafted pieces, with a primary emphasis on Moissanite jewelry. Renowned for expertise and creativity, Riva Moissanite offers a variety of exquisite jewelry pieces set in high-quality 9-18K gold.

S&O specializes in advising clients on all aspects of intellectual property in key commercial regions worldwide, from registration to enforcement and commercialization. They collaborate closely with the clients to create Intellectual Property Rights strategies tailored to their specific needs.

Conveniently located in the heart of Bangkok, VIE Hotel Bangkok, MGallery Hotel Collection is just steps away from the BTS Skytrain Ratchathewi station and within walking distance of the city’s most famous shopping district Siam. Recognized as one of the best hotels in Bangkok, VIE Hotel Bangkok is a modern and elegant 5-star luxury designed hotel and creation of renowned French architect J + H Boiffils.

“ Corporate Membership is available to all companies registered in Thailand. If you are interested in joining the AMCHAM member network please contact us at mew@amchamthailand.com “

Can we eliminate plastic waste?

Plastic waste is a problem. And we are going to fix it. How? First, by getting help from our industry friends who also want to #EndPlasticWaste. Ensuring no waste – plastic or otherwise – gets in our environment. We’re finding new after-use opportunities. We’re cleaning up our ocean. We’re improving waste management. Plastics benefit our lives in so many ways. And we can’t let it go to waste. It’s time to change the conversation. To change our planet. How can you help? #DontWaste

dow.com/packaging

industrial city in ASEAN AMATA Smart and Eco City Natuey

CHINA

AMATA Smart and Eco City Namor

VIETNAM AMATA City Ha Long

MYANMAR LAOS AMATA Smart and Eco City Yangon

Quang Tri (upcoming) Yangon

THAILAND AMATA City Chonburi 2

CAMBODIA

AMATA City Chonburi

AMATA City Bien Hoa

Phnom Penh

AMATA City Rayong

AMATA projects in Long Thanh Ho Chi Minh

GULF OF THAILAND

AMATA City

Rayong 2

500

100 sqkm

1400

land supply in GMS region

of developed land

international tenants

sqkm

340k

Over

people

working population

Awarded the Best Sustainability Award by the Stock Exchange of Thailand AMATA aspires to become a data center hub with its purpose-built Data Center Zones in Thailand Smart City Development - creating a smart livable city and hub for innovation

We are always building, always expanding. Why not make Amata home for you business? Enquire today!

+66 89 834 0007

communication@amata.com