UPDATE Q3/2019: Pharmaceuticals

3/2019 http://thailand.ahk.de

T H E M AG A Z I N E O F T H E G E R M A N - T H A I C H A M B E R O F C O M M E R C E

PHARMACEUTICALS Pharmaceuticals: Working towards a healthier future PREMIUM PARTNER 2019

Interviews: Bayer Thai Co., Ltd. Polipharm Co., Ltd.

GTCC Gala Night 2019 “Fairy Tales” ANNUAL PARTNER 2019

FROM THE EDITOR Dear readers, Thailand’s pharmaceuticals industry is one of the country’s fastest growing sectors, projected to grow about 6 per cent per year from 2018 to 2020. With its value of Baht 1.77 hundred billion (US$ 5.7 billion) in 2018, the market presents huge opportunities for foreign pharmaceutical companies. This figure is projected to double by 2020 due to several supporting factors such as an increase in the number of patients, the ageing population and access to quality treatments supported by the Thai government, together with the country’s high reputation for world-class medical care.

As of 2018, Thailand was home to 65 hospitals and medical organisations accredited by the Joint Commission International (JCI); that is the highest figure in ASEAN, followed by Singapore and Malaysia. There are about 170 pharmaceuticals companies and factories in Thailand, some of which have already become Contract Manufacturing Organisations (CMO) for multinational pharmaceutical companies. One of them is Polipharm, which recently upgraded its new laboratory facilities to achieve its aim to become Thailand’s leader in CMO as well as Contact Research Organisation (CRO) and laboratory services in five years.

More than half of Thailand’s medical export destinations are ASEAN countries, especially Cambodia, Laos, Myanmar and Vietnam. Thailand’s key pharma product exports comprise antibiotics, cardiac medications, antidiabetic medications and antihypertensive drugs which are either made under an original equipment manufacturing agreement (OEM) or the manufacturer’s own brands (OBM).

This also provides a good oppor tunity for foreign companies to par tner with local pharma manufacturers to produce quality products and export to the growing markets in ASEAN. Thailand imported pharma products valued at more than US$ 2.2 billion in 2016. Germany is one of the main pharma exporters to Thailand, along with the United States, France and Switzerland.

According to Außenwir tschaftszentrum Bayern (AWZ), the pharmaceutical and similar products exported from Germany to Thailand in 2018 accounted for EUR 245.86 million (US$ 290.1 million), an increase of almost 10% year on year. In 2017, foreign drug companies achieved total sales of Baht 402.9 billion in the Thai market. German pharma companies such as Bayer, Merck and Boehringer Ingelheim have not only been operating in Thailand for many years but are also strongly contributing to the sustainability of the country’s development of the pharma industry and quality health care.

I trust you will enjoy an interesting and informative read.

Dr. Roland Wein

UPDATE is published quarterly by the German-Thai Chamber of Commerce and distributed free of charge to members and qualified non-members in Thailand and abroad.

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CONTENTS

08

Pharmaceuticals: Working towards a healthier future

12 Interview: Riaz Buksh, General Manager of the Pharmaceuticals Division, Bayer Thai Co., Ltd.

18 26 HANNOVER MESSE 2019 delegation visit GTCC Gala Night 2019 “Fairy Tales”

30 Meeting the Minister of Education

PHARMACEUTICALS

GTDEE INSIGHT

06 Pharma market in Thailand: Rising demand, but

33 Fourth meeting of the national vocational

10 Medical devices sector improving quality of life in

35 Examination Committee meeting on PAL Final

tougher competition Thailand

16 Interview: Quality, trust have made Polipharm one

of leading pharma companies in ASEAN

CHAMBER ACTIVITIES 21 GTCC White Asparagus Wine Dinner 21 GTCC Business Women Networking 22 GTCC Business Luncheon: International Green

Building Certification

23 GTCC-FCCT-TICC Ice-Breaker Networking

“Innovation & Lifestyle Night 2019”

25 AHK Digital Strategy Workshop Asia-Pacific

education committee Examination 2019

BUSINESS BRIEFS 36 German Desk at Mazars Thailand 37 Continental celebrates grand opening of

Greenfield Tire Plant, Rayong

MEMBERS’ CORNER 38 New GTCC Members

TRADE FAIRS 41 ITB Asia 2019 42 BAU China 2019

06 PHARMACEUTICALS

Pharma market in Thailand: Rising demand, but tougher competition Chadaphan Maliphan

Thailand’s pharmaceutical (pharma) market is wor th Baht 177 billion (US$ 5.7 billion), which ranks it at number two in the ASEAN region after Indonesia. The Pharmaceutical Association of Thailand has estimated the market growth rate to be 5-6% annually.

With more than 170 local manufacturing companies and over 12,000 pharmaceutical outlets in Thailand, Krungsri Research also projects the value of pharmaceuticals distributed by Thai manufacturers is expected to grow by an average of 5-6% per year from 2018 to 2020.

Growth factors: More patients, medical tourism, access to quality healthcare and Thailand’s BOI promotion The world, including Thailand, is entering an era of an expanding ageing society. The number of elderly people in Thailand is expected to reach 10.3 million within 2019.

The number of Thai patients — especially those suffering from diseases such as hypertension, diabetes, heart disease, stroke and cancer — are therefore increasing. These illnesses also lead to higher demand for

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“…there are 142 domestic pharmaceutical producers accredited with the Good Manufacturing Practice (GMP) standards. However, only about 5% of them are capable of manufacturing active pharmaceutical ingredients (API)...” specialised drugs and medical services. As a result, the Government of Thailand’s expenditure on elderly welfare is projected to rise from Baht 281 billion in 2016 to Baht 464 billion in 2021.

The Government’s Universal Healthcare Cover age Scheme (Prakan Sukkapab Thuanna), in operation since 2002 is another growth factor as it improves access to affordable and better healthcare. This results in more medical expenses, which are expected to grow at about 5.4% annually during 2018-2020.

As one of the world’s largest medical tourism

markets, Thailand has been steadily expanding its medical tourism sector with a high number of specialised medical centres, especially for chronic diseases and elderly care. The costs of medical treatment in Thailand are considered lower than in competitors in the region such as Singapore and Malaysia. The number of foreign patients seeking treatment in Thailand is expected to increase by approximately 7-8% annually during 20182020.

In line with its “Thailand 4.0” policy, the Government considers the healthcare industry to be a priority sector for investment and fur ther development. Thus, the Board of

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Investment (BOI) policy is another key growth factor in boosting investment in the Thai pharma industry. The BOI continuously offers investment promotions for companies to improve their factories in order to meet GMP standards according to PIC/S guidelines. Companies applying for such promotions from 2018 onwards will be eligible for five-year corporate income tax exemptions, which are expected to motivate pharmaceutical manufacturers to increase their investments in the pharma industry.

Thailand’s Pharma Industry in Figures

Market value in 2018

Baht 177 billion

Ranking in ASEAN (market value)

2nd, after Indonesia

Growth rate during 2018-2020*

5-6%

Number of elderly people in Thailand in 2019*

10.3 million

Expenditure on elderly welfare in 2021*

Approx. Baht 464 billion

Medical expenses during 2018-2020*

+5.4% annually

Number of foreign patients seeking treatment in Thailand during 2018-2020*

+7-8% annually

Source: Krungsri Research 2018, *estimated

Hospitals are the main buyers, the “GPO” is the key producer About 80% of Thai pharma sales are made through hospitals (75% public, 25% private hospitals) partly supported by the Government’s Universal Healthcare Coverage Scheme, while 20% of the sales come from over-the-counter (OTC) purchases. About 95% of the output by Thailand’s pharmaceutical sector is consumed in the domestic market.

Players in the pharma sector are divided into two groups: (a) state enterprises such as the Government Pharmaceutical Organisation (GPO) and the Defense Pharmaceutical Factory, which place emphasis on the production of generic drugs (the GPO is the main state manufacturer of pharmaceuticals); and (b) private sector producers, comprising local companies and multinationals.

Generic drugs are still the best sellers, but they have a lower market value In 2017, local pharmaceutical and chemical manufacturers earned a total of Baht 67.92 billion, in contrast to the total sales value of Baht 402.9 billion that foreign drug companies recorded in the Thai market.

In terms of pharma product technology, the Thai market largely consists of generic drugs which are FDA-approved and are identical to trademark drugs, but without patent protection. The majority of Thai conventional medicine manufacturers are downstream producers of finished generic drugs. The market value of generic drugs is much lower than trademarked drugs.

According to Thailand’s Food and Drug Administration (FDA), as of June 2019 there are 142 domestic pharmaceutical producers accredited with the Good Manufacturing Practice (GMP) standards. However, only about 5% of them are capable of manufacturing active pharmaceutical ingredients (API) for which are usually imported and expensive. It should be noted that the production of active ingredients will largely be used as inputs into their finished products.

More competitive markets due to higher manufacturing costs and price wars Manufacturers of generic drugs are expected to see rising incomes based on the abovementioned growth factors. However, domestic manufacturing costs will also tend to rise because production facilities will need to be upgraded in order to meet the GMP-PIC/S standards, while impor ted ingredients will become more expensive. Price competition in the Thai pharma

industry will therefore become tougher, due to cheaper Chinese and Indian imports.

Germany is one of the main pharma exporters to Thailand Between 2012 and 2017, exports of Thai pharmaceuticals grew by around 9% per year, but comprised low-value generic drugs.

Impor ts have been focused on high-value products that the domestic sector cannot produce, such as anti-anemia treatments, antib io tic s and c ho le s te ro l-l ower ing medications. Germany is one of the main exporters to Thailand among the United States, France and Switzerland. According to Außenwir tschaftszentrum Bayern (AWZ), the pharmaceutical and similar products exported from Germany to Thailand in 2018 accounted for EUR 245.86 million, an increase of almost 10% year on year. During the past three years, there has been a significant increase in the value of imports from India, which accounted for 7.3% of all Thai imports of medicines, compared with 5.9% previously.

High potential emerging markets in ASEAN In recent year s, pharma industries in Southeast Asia have shown significant growth as the region’s population has climbed to almost 650 million, thus offering huge marketing oppor tunities. The CLMV (Cambodia, Lao People’s Democratic Republic, Myanmar and Vietnam) market is more open and has ver y high growth potential. Thai pharma products have been expor ted to neighbouring countries for decades and have steadily grown more popular despite the challenge of cheaper products from India and China. As a result of the implementation of GMP standards, pharma products from Thailand are widely recognised for their quality and reliability.

Sources: Krungsri Research 2018, Thailand’s Food and Drug Administration (FDA), Bangkok Post, Prachachat Business, Marketeer, WHO, GTAI and BOI Contact details: Chadaphan Maliphan Publication and Communication Manager Tel: +66 2 055 0623 chadaphan@gtcc.org

www.thailand.ahk.de

08 PHARMACEUTICALS

Pharmaceuticals: Working towards a healthier future Dr. Armin Wiesler and Christopher E. Knight The biopharmaceutical industry is a key driver of innovation. Compared to other industries, including aerospace, information technology and industrial chemicals, the research-based biopharmaceutical industry invests more in research and development — with its worldwide research and development (R&D) spending continuing to increase annually.

According to industry association figures, Germany accounts for the highest R&D spending in Europe in the pharmaceutical industry.

The biopharmaceutical sector relies on scientific innovation for developing and advancing medical therapies that will benefit patients and improve health outcomes. The current global life expectancy is the highest in history, and child morbidity continues to drop. There are many factors attributable to these significant improvements in health outcomes, including better sanitation, education and improved access to medical services.

Innovation is key to health The biopharmaceutical industr y and its continued investment in innovative medications and vaccines is also a key contributor to this progress. Medical progress helps not only individual patients; society and the economy also benefit from a healthier and more productive workforce.

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There are numerous examples of how biopharmaceutical R&D have improved global health. Vaccines prevent 3 million deaths ever y year from diarrhoea, pneumonia, cervical cancer and many other illnesses. The number of deaths caused by measles has been reduced by 79 per cent between 2000 and 2014. HIV/AIDS has progressed from a death sentence to a chronic, manageable disease over the past few decades — largely due to new antiretroviral therapies and better patient access to these therapies. If diagnosed early, leukemia can be driven into remission with a once-a-day treatment. High cholesterol and other cardiovascular diseases can now be easily managed with oral therapy. Moreover, the developments in cancer treatment have significantly extended survival rates for patients and improved their quality of life.

The quest for innovation to further advance patients’ lives continues. Biopharmaceutical companies have invested more than US$ 500 billion since 2000 in research and development in order to address unmet medical needs.

The fight to find a cure for HIV/AIDS continues, and the challenge to find vaccines for diseases such as HIV, malaria or tuberculosis goes on.

Moreover, more than 3,000 projects are in

the pipeline to fight cancer — ranging from more common types of malignancies, such as lung, prostate or breast cancers, to rare types of cancer.

Biopharmaceutical research and development takes significant time and investment, and always poses a high risk of failure. On average, it takes around 10 years and more than US$ 2 billion to bring one new medication from the research pipeline to patients, including the cost of failures. To sustain biopharmaceutical innovation, a number of enabling conditions are critical. These include

PHARMACEUTICALS 09

access to world-class researchers, political and financial stability, efficient and resilient health systems, intellectual proper ty protection and a regulatory framework that protects and rewards innovation.

Expanding access to health care Innovative medicines are a critical element in improving the quality of a patient’s life and public health. However, it is equally important that these innovative medicines are made available so that patients and society can benefit from them. Factor s impacting a patient’s access to a medicine or vaccine include the general health infrastructure, the quality of the healthcare system, access to insurance or other forms of cost coverage, and government policies on import tariffs and taxes.

Expanding access, par ticularly in low- and middle-income countries, requires cooperation between the public and private sectors as well as ensuring that resources are used effectively and efficiently. The biopharmaceutical industry is committed to improving public access to medicines and vaccines, and is involved in numerous health partnerships around the world. These partnerships facilitate access to treatments, strengthen health systems and r aise awareness and actions on critical topics.

What does this mean for Thailand?

The Government of Thailand has initiated the “Thailand 4.0” strategy, with the objective of pulling the country out of the middleincome trap and into the high-income range. The economy should transform from a strong reliance on manufacturing products to one that is driven by research, development and innovation. Ten industries have been defined as targets in order to

“The current global life expectancy is the highest in history, and child morbidity continues to drop.” achieve this advancement, several of which have a direct link to health care, including “biofuels and biochemicals”, “medical industries” and “affluent, medical and wellness tourism”.

Thailand has existing strengths and skills that it can leverage, such as a high-quality hospital infrastructure with highly skilled health-care providers. These are key factors in further strengthening the role of Thailand as an international medical hub that offers state-of-the-art medical care and the newest medical innovations. The hospital infrastructure also under lines the strong potential of Thailand to be a leader in conducting clinical trials in the region. For Thailand’s regulatory environment, important steps have already been taken to suppor t the availability of innovative medications in the country through Thai FDA reform, which has led to faster approval timelines.

Thailand has a unique oppor tunity in the region due to the prominence of its universal health-care coverage (UHC), which is also being used as model by other countries.

The Board of the National Health Security Office (NHSO), which oversees the UHC, will increase the budget for UHC from Baht 166 billion to Baht 183 billion for fiscal year 2020, and will expand medicines, vaccines and medical supplies across a number of areas, e.g., screening for colon cancer for people aged 50 to 70, and minimal invasive surgery.

In addition, Thailand’s ageing society will see 20 per cent of its population become senior

citizens by 2020. Fur ther expansion of access to innovative medication and treatments for patients in Thailand through the public health sector will, therefore, remain impor tant not only to improving patients’ quality of life and public health, but also to supporting the goals of the Thailand 4.0 strategy. Collaboration between the public and private stakeholders will play a key role in achieving these goals, and the biopharmaceutical industry is ready to be a partner in this endeavour.

References: European Feder ation of Pharmaceutical Industries and Associations, The Pharma Industr y in Figures R&D, Brussels; and International Federation of Pharmaceutical Manufacturers & Associations, Committed to a Healthier Future, Geneva.

Contact details: Dr. Armin Wiesler Vice President of the Pharmaceutical Researchers and Manufacturers Association Thailand (PReMA) and General Manager/Head of Human Pharma of Boehringer Ingelheim (Thai) Ltd. http://www.prema.or.th Christopher E. Knight Senior Executive Advisor to the Board of PReMA http://www.prema.or.th

www.thailand.ahk.de

10 PHARMACEUTICALS

Medical devices sector Improving quality of life in Thailand Sayan Roy

The medical devices sector includes medical devices (such as X-ray equipment, ultrasound machines, reagent and test kits, and dental devices) as well as medical and surgical equipment (e.g., scalpels, blood-pressure monitors, and other items such as disposable gloves and masks) and is considered a highvalue industr y. The sector in Thailand is seeing ongoing growth despite unfavourable economic conditions, par tly because its products are life-essentials for the ageing population.

Thailand is an impor tant market in the ASEAN region, with the sector valued at approximately US$1.2 billion. The import and export values are split into a ratio of 27:73.

Durable medical devices are the largest group of imports at 44%. On the other hand, most Thai exports comprise single-use devices and account for 84% of all exports. The United States (accounting for 29% of all exports by value) followed by Japan and Germany are the most important markets for Thai exports.

With current policy suppor ting Thailand becoming a medical hub, there is continuous growth in medical tourism; the number of foreign patients seeking treatment in Thailand healthcare facilities has also grown to about 2.5 million annually. Therefore, the Thai medical devices industry has expanded, both domestically and internationally. Between

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2012 and 2016, the value of medical devices distributed to the domestic and export markets grew by 8% and 3.1% per year, respectively. In 2016, the total value of the Thai medical devices market was Baht 41.65 billion, up 4.7% year-on-year, while the export market was worth Baht 96.7 billion, up 4.5% year-on-year.

Three decades of improving quality of life Medical technology is one of Germany’s strong areas, with several medical schools and worldrenowned medical research institutes. While Thailand is in need of innovative solutions to tackle health-care issues — especially those of the ageing population, chronic non-communicable diseases and re-emerging communicable diseases — B. Braun plays a key role in advocating Germany’s healthcare footprints in Thailand through sharing expertise and collaborative works bridging the Government and other stakeholders.

Established in 1989, B. Braun (Thailand) Ltd., is celebrating its thir tieth anniversary. As a true

PHARMACEUTICALS 11

partner, B. Braun not only sells products but also understands customers’ situations and provides solutions, thus helping them to solve their problems. The company takes pride in playing a key role in educating and training health-care professionals, which is in keeping with its vision of improving healthcare throughout Thailand.

“Thailand is an important market in the ASEAN region, with the [medical devices] sector valued at approximately US$1.2 billion.”

As a leading manufacturer of medical technology and pharmaceutical products worldwide, the company employs 63,751 people in 64 countries, including around 230 in Thailand. B. Braun’s goal is the continuous care and improvement of people’s health.

The B. Braun product range comprises 5,000 products, 95% of which are manufactured in-house in its 112 factories, with a focus on 18 therapy fields. It operates company-owned dialysis centres as well as ser vices and consultancies for optimizing hospital processes to prepare patients and their families for at home care.

Partnership and collaboration projects The safety of healthcare workers as they go about their jobs is a major target of the World Health Organization and the Government of Thailand in the development of a sustainable health service system.

B. Braun, in joint collaboration with the Deutsche Gesellschaft für Internationale Zu sa mme n ar beit ( G IZ ), Th a i l a n d , i s implementing the nationwide project “Improving occupational safety for healthcare workers in public hospitals in Thailand”, with a focus on educating and developing safety measures. Another part of this approach is emphasizing to senior hospital management the need to fully develop the public health system and enhance the capabilities of their personnel. This project has been implemented with four local par tners — Ramathibodi Hospital, the Infusion Nurse Network of Thailand, Thailand Oncology Nurses Society and Healthcare Accreditation Institute (Public Organization) — on four modules; (1) the role of hand hygiene in healthcare associated infection prevention; (2) peripheral intravenous cannula insertion and management; (3) the safety of IV chemotherapy for healthcare professionals; and (4) support for the middle and top management of hospitals in applying occupational safety measure standards. The project will enable hospitals to save costs and

improve their efficiency, which can increase their reputation and competitiveness.

The other example of B. Braun’s “System Par tnership” with Ramathibodi Hospital is the “Home Chemotherapy Rama Model (HCRM)” that identifies the hospital’s needs and creates solutions through constructive dialogues. Global best practices are used to understand and design a care model that could be replicated in Thailand. The results from the pilot project show that ambulatory HCRM helps colorectal cancer patients live a normal life by administered treatment at patients’ home, resulting in significantly improved quality of life and significant cost savings. This project can be expanded to other disease areas to help suppor t healthcare financing for ageing society.

In B . Br aun, talent management is an impor tant business strategy. This provides

impor tant business strategy. This provides the opportunity to attract the most talented and skilled employees available and, in turn, contributes to the improvement of business performance and results.

A no the r e x amp le o f the c om pa ny’s contribution to society is the “B. Braun for Children” project to improve the quality of life of underprivileged children.

Sayan Roy Managing Director Contact details: Napaton Rattanarungcikun Executive Assistant B. Braun (Thailand) Ltd. Tel: +66 2 617 5004 napaton.rattanarungcikun@bbraun.com www.bbraun.co.th

www.thailand.ahk.de

12 INTERVIEW

Bayer sees innovation, technology in healthcare as the key to success in making Thailand a healthy society and healthy economy Riaz Buksh, General Manager of the Pharmaceuticals Division, Bayer Thai Co., Ltd. Bayer, which is leading global company in pharmaceuticals, consumer health and crop science, has more than 150-year history with core competencies in the areas of health care and agriculture. Thailand’s pharmaceutical industry continues to see ongoing expansion, following an increase in its ageing population, growth of medical tourism and investment promotion efforts by the Thai Board of Investment (BOI), according to Krungsri Research. Bayer Thai Co., Ltd., which was established in 1962, is a major player in this expansion with three locations, including its head office located on Sathon Road in Bangkok province, a production site at the Bangpoo Industrial Estate, Samut Prakarn province and a research and development facility in Suphan Buri province.

Recently, GTCC had the opportunity to interview Mr. Riaz Buksh, General Manager of the Pharmaceuticals Division, Bayer Thai Co., Ltd., who has more than 23 years of industry experience in New Zealand, Australia and Thailand. He started his career at Bayer in 2012 in Australia in a marketing role. He was transferred to Bayer New Zealand in June 2014 as the General Manager of Bayer Pharmaceuticals in New Zealand. Riaz was then transferred to Thailand in November 2015 as General Manager of the Pharmaceuticals Division, with responsibility for Thailand, Myanmar, Cambodia and Laos and a Director of Bayer Thai. Riaz is also an elected board member of the Thailand Pharmaceutical Research & Manufacturers Association (PReMA) since 2017.

What have been the key changes in the pharmaceutical industry from 1962 until now?

How did you handle those transitions?

When Bayer started business in Thailand in 1962, life expectancy of Thai people was less than 60 years. Today it is almost 75 years1, with much of that change due to advances in healthcare innovation including medicine. There has been a significant shift in disease patterns, from the earlier critical concern over infectious to non-infectious diseases or “non-communicable diseases” such as heart disease, cancer and other age-related diseases.

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1

Today, innovation and technology are more advanced and evolving rapidly. We are in the digital age and this generates an opportunity for research and development to make significant improvement in health innovation and oppor tunities for improved patient treatments and outcomes. Better treatments and improved survival mean people are able to live longer and healthier, enabling them to return to their usual daily routines, resume work and therefore continue to play an active role in their families, society and the economy.

World Bank 2017 : https://data.worldbank.org/indicator/SP.DYN.LE00.IN?locations=HK&name_desc=false

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“Modern technology, including AI, can fundamentally enhance the drug development process in making it faster and more accurate. This would also create more opportunities for patients to receive enhanced treatment.”

At Bayer, we have a long history of innovation, our global research and development activities have evolved in addressing challenges related to evolving disease and societal patterns, both of which are equally applicable to Thailand. This enables Bayer to continuously apply leading scientific capabilities to innovate treatments for diseases that have high unmet need for medical treatments. This is particularly important given the societal and economic burden created by disease and ageing society.

What are the newest trends and future innovative products in the pharmaceutical industry?

The trend in pharmaceutical development is moving from synthetic, chemical molecule medicines in the nineteenth century to the development of complex biological molecule medications in the twentieth century that are more specific to targeted disease treatment and providing better chances for improving patients’ quality of life. More recently, the trend has moved towards precision medicines, including the use of gene editing; this could be identified as a new generation approach to addressing the high medical need for dealing with difficult-to-treat diseases which would provide better and more specific treatment results with reduced side effects.

W h a t i s t h e m a i n f o c u s o f B ay e r Pharmaceuticals Division in Thailand?

Bayer supports Thai government’s direction in driving towards an innovation-based economy under Thailand 4.0. This will definitely benefit Thailand’s economic development and competitiveness, and help to elevate the country from the middle-income trap. It will also enhance oppor tunities for improved patient access to health innovations.

Bayer Thai Pharmaceuticals shares a common goal with our commitment to suppor t

government achievements through enabling innovation and technology with the aim of providing innovative medicines that are beneficial to patients in battling serious diseases. Our focus includes prescription drugs for eye diseases, heart disease, cancer (liver, colon and prostate), contraception and women’s health as well as radiology products for MRI and CT scan diagnosis.

Bayer Thai Phar maceuticals has been sustainably growing and outperforming the industr y over the last decade, resulting in Bayer now being ranked among the top 10 multinational pharmaceutical corporations in Thailand. Bayer continues to offer new innovative solutions for addressing both healthcare professional and patients’ demands.

As a research-based pharmaceutical company, Bayer additionally generates essential economic value in terms of job creation, supporting continual medical education for healthcare professionals and investment in clinical trials, which are key activities in its research and development efforts contributing to economic growth in Thailand.

Ageing society is now a big topic in Thailand.

Are you active in this market?

The wor ld’s population is facing a demographic shift. More than 950 million people around the globe were aged over 60 in 2017 and this number is expected to double to two billion people by 2050, according to the United Nations World Population Prospects repor t. As for Thailand, the National Economic and Social Development Board projected that the number of Thais aged 60 and older will almost double from 10.5 million in 2015 to 20.5 million in 2035. Therefore, Thai people will need access to new and innovative medicines to help them to better manage and avoid chronic age related diseases.

Bayer provides innovative medicines for

addressing these challenges. For example, Bayer’s targeted therapies for various types of cancers and medicine for stroke prevention are at the forefront of new treatment paradigms. Our solutions address some of the unmet medical needs of Thai society.

Health innovations such as those in medicine are essential enablers in supporting the transition from costly acute hospital care to preventive and primary care. For example, preventing strokes and heart attacks in patients with chronic coronary and peripheral artery disease (CAD/PAD), and preventing blindness in aged population that can benefit not only the patients but their caregivers and society generally.

Thailand medical hub and medical tourism is likely to grow by 14% annually, according to KPMG in Thailand. What challenges and opportunities do emerging markets such as Thailand hold for you as a pharmaceutical company?

Thailand is geographical very well-placed in Asia. Additionally, private hospitals are of a ver y high standard, and qualifications of physicians here are world-class. Medical schools are also world-class in terms of standards, facilities and faculty qualifications.

Bayer believes that the correct infrastructure is crucial, such as hospitals with cutting-edge diagnostic or surgical technologies as well as state-of-the-ar t tools for doctors such as medicines that provide patients with the best possible care. Medical care in most of Thailand’s neighbouring countries is now also good. People coming to Thailand as medical tourists are looking for high-quality care, and advanced diagnostics and medicines.

Respectively, having early access to new innovative medicines will enhance Thailand’s competitive position as an attr active destination for medical tourists who are seeking such high quality medical care and advanced treatment choices.

Thailand medical services are very good compared to neighbour ing countries.

Whether it is the public sector or the private sector, I would say access to good medicine in Thailand is available. Since I began working in Thailand, I have found little room for criticism other than the usual resource challenges in any healthcare framework, including in more developed countries.

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14 INTERVIEW

The challenge that Thailand will face in realisation of its vision of becoming a medical hub, is to incorporate the availability of, and access to cutting-edge medicines as part of its competitive offer. It is very important that patients are able to access the best, most modern and innovative medicines. New medicines with clinical and societal benefits represent an oppor tunity as well as a challenge for the Government of Thailand in making them available to Thai and foreign patients as part of the medical hub vision.

Bayer is at the forefront of innovation. We are part of the research-based industry of Thailand. Our role is to make sure that our new portfolio medicines are truly available in Thailand to local people and to medical tourists. It is our collective responsibility to make such medicines available. We look forward to collaborating with the Thai government to ensure the right infrastructure and pathway to making these drugs available including sharing our international practices related to value-based care and outcomebased system rather than a ver y narrow purchase cost of medicine approach.

What would you think are the threats to Bayer in the current world of digital evolution?

Threats exist, of course, such as the use of digital technology for wrongdoing activities.

Yet, we also have significant opportunities for utilising the evolution of digital technology, including artificial intelligence (AI), to achieve good results, particularly in the early phase of drug discovery and development.

Bayer employee is working at a “Genome Analyzer” in a research lab in Berlin.

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It is not easy to develop new innovative medicines as the process is lengthy between 10 and 15 years, as well as it would need many effor ts and investments to discover and develop one molecule as an innovative medicine. This involves an intense research and development process which is highly regulated to ensure consistency of quality, efficacy and safety. This also involves a high r isk of failure . Of the thousands, and sometimes millions, of compounds that may be screened and assessed ear ly in the research and development process, only a few will ultimately prove to be of benefit to patients and receive approval to market.

Investments needed to under take such a rigorous screening and validating process are significant to say the least.

Moder n technology, including AI, can fundamentally enhance the drug development process in making it faster and more accurate.

This would also create more opportunities for patients to receive enhanced treatment.

This is why Bayer is trying to discover new ways to meet the challenge of providing more effective medical treatment for major illnesses such as cancer, cardiovascular diseases and heart disease, which are the main ailments globally, including Thailand.

What is Bayer’s organisational secret for producing innovative products? What type of new products is Bayer planning to introduce to the Thai market in 2020?

It is our organisational value structure, which is in fact not a secret — Science For A Better Life is our guiding principle. We are trying to provide value of our products that benefits patients. Research is Bayer’s lifeline and our expertise. Without research and discovery, we cannot innovate to bring new medicines to patients. In addition, we have approximately 120 staff members in the Pharmaceuticals Division here in Thailand. Most of my team members are highly qualified healthcare professionals (pharmacists, doctors, etc). With their collective intellectual strengths and professional capabilities, we add to Thailand’s healthcare community and contribute to Thailand’s intellectual economy.

Our innovative focus is targeted to certain disease areas; our non-communicable disease programme is par ticular ly focused for cardiovascular diseases (CVDs), various types

of cancers and eye disease related to aging and diabetes.

We have various products in the pipeline.

Our objective is to make as many of these products as possibly available in Thailand to benefit Thai patients in addition to optimising our existing portfolio over the next few years.

How do the different regulations in Thailand and other South-East Asian countries affect the pharmaceutical industry?

With regard to regulations in Thailand, we refer to the Food and Drug Administration (FDA), under the Ministry of Public Health.

There were some significant changes in terms of the framework for regulating drugs in Thailand in the past couple of years. We have entered into a fee-based registration framework, which we appreciate will help significantly improve process, and time in drug registration protocols, especially for new drug applications. The FDA recently introduced the E-Government System, the so-called E-Submission. This is another approach to making the submission system more efficient and transparent which is important for the industry and ultimately important for improving patient access.

Regulatory review also plays the significant role as the first step to enhance timely access to innovative medicines of patients. A fast and predictable registration timeline will enhance patient access to new innovative medicines for better quality of treatment.

Among ASEAN countries, there is the regulatory network so-called working group of regulators and joint discussions on ASEAN harmonisation of regulations. This supports the regulatory development in abiding to the international standards and guidance which Thailand is now harmonized in terms of regulatory requirements with other countries in the ASEAN region.

Bayer definitely supports the government in regulating the pharmaceutical market as we share a common priority. Good governance which oversee product quality, safety and effectiveness is critically important to ensure patient protection as well as public health.

Interviewed by Chadaphan Maliphan, Erik Mersch and Neele Bösche, GTCC Team

16 INTERVIEW

Quality, trust have made Polipharm one of leading pharma companies in ASEAN Wanna Thanesanont, General Manager, Polipharm Co., Ltd. Good quality research and development (R&D) is crucial to the long-term growth and success of the pharmaceutical (pharma) industry. Thai pharma company Polipharm Co., Ltd., which specialises in the manufacturing, marketing and distribution of pharmaceutical products, has just opened its new R&D facilities this year to enhance its position in handling contract manufacturing as well as providing R&D and laboratory services for local and international clients. The company also aims to expand its exports to more countries apart from Bangladesh, Cambodia, Hong Kong, the Lao People’s Democratic Republic, Malaysia, Myanmar, Singapore, Sri Lanka and Vietnam.

G T C C is grat e f u l fo r th e re c e n t opportunity to interview Ms. Wanna Thanesanont, the new General Manager of Polipharm Co., Ltd., who has worked with the company for 32 years in QC, QA, HR, Procurement and Import-Export. The discussion provided an excellent chance to learn about the pharma markets in Thailand and ASEAN as well as the company’s success stories and future plans.

UPDATE 3/2019

Please share with us Polipharm’s journey in Thailand’s pharmaceutical industry since the company’s establishment in 1978.

During the first five years of operation we had to invest in facilities. Therefore, we could not record a profit at that time. Only ten products were approved and we had only ten people and three pharmacists working in our company. Then in 1999, Mr. Volker Fischer (Chairman) took over Polipharm from Berli Jucker, and introduced to significant changes.

For example, we opened a new factory, new laboratories and a new warehouse. In addition, we increased our product registrations and we are a PIC/s GMP, ISO/IEC 17025 and ISO 9001 certified company that is trusted

by Thailand’s Food and Drug Administration (FDA) and its many customers. We have received many awards, including quality awards from Thailand’s FDA in the past three years (2016-2018), in addition to introducing Innovative products. This is the best period for the company. During the past five years we have invested in a new R&D section to produce new generic drugs. Our sales growth has been a 7 per cent accumulated average, and it will jump to a higher level in the next one to two years.

How do you deal with the requirements for complying with the standards set by local authorities and the international licensor, from the beginning of drug development to actual production?

To produce a new product, we must research and study which products are to be launched in the next five years. There are different steps to be taken in developing a new product.

The first step is R&D, where we begin with desk research into the active pharmaceutical ingredients (API) for the drug product that we are interested in, followed by sourcing the raw materials. Once we have suitable raw materials, we initiate the formulation.

Next, the ASEAN Common Technical Dossier (ACTD) is submitted to the Thai FDA. The whole process normally takes three to five years for each product.

How competitive is the pharmaceutical market and what is your most successful product?

A price war is unavoidable as it is normal in business. However, the unique selling point of Polipharm is our quality. We are in the medium price sector; this means our products

INTERVIEW 17

could be a bit more expensive than our competitor(s) but not the most expensive ones. Most of our customers trust our quality.

What challenges and opportunities have you been facing in ASEAN markets as a Thai company?

Th ailan d h as th e bi g g e s t nu m b e r o f pharmaceutical manufacturers in ASEAN. Some countries — for example, Laos and Cambodia — love Thai pharma products.

Two of our popular products in the Thai and ASEAN markets are Berclomin tablets (a gastrointestinal drug) and Nuhair lotion (hair growth).

ASEAN represents around 10 per cent of the world population. The high standard of Thailand’s pharmaceuticals industr y has resulted in most ASEAN countries trusting Thai companies. This is a good business oppor tunity for our company. On the other hand, every country has a policy for supporting their local industry, so it is quite a challenge.

What are your plans for expanding into ASEAN markets and other international markets?

We have already been exporting to ASEAN markets for more than ten years, except Indonesia and the Philippines. We are planning to sell our products in the Philippines this year, with a projected growth of 5-7 per cent.

Currently, we have many products that have already been selected for registration in the Philippines within this year.

Apar t from Southeast Asia, we expor t to Bangladesh, Hong Kong and Sri Lanka, and we are a Contract Manufacturing Organisation (CMO) for a Dutch company that uses Polipharm as the production base and exports to the Netherlands and CIS countries.

Our product exports account for 5 per cent of our sales. Thus, 95 per cent of our production is sold in the Thai market.

What is the hardest export market in ASEAN for you, and to which country do you export the most?

Right now, Indonesia is the hardest. Highest values are exports to Vietnam and Myanmar.

You opened a new R&D building at the beginning of 2019. What impact will that have on the future development of your company?

Our aim is to invest in R&D, because right

From left: Polipharm’s team: Business Development Manager Ms. Nipaporn Gulpanich, Managing Director Mr. Suchart Chookruvong, Chairman Mr. Volker Fischer,and General Manager Ms. Wanna Thanesanont

“Thailand has the biggest number of pharmaceutical manufacturers in ASEAN. Some countries — for example, Laos and Cambodia — love Thai pharma products.” now generic drugs are more potential for hospitals or customers. We are also planning to become the leader of the R&D Centre or “CRO” (Contract Research Organization) and Contract Testing Laboratories.

You received the Quality Award from Thailand’s FDA last year. How do you plan to maintain or increase your quality level?

The FDA Quality Award for three consecutive years is the highest level of achievement.

We aim to keep receiving the award and

maintaining the necessar y level of quality.

How can we do so? We have the system needed to ensure consistent quality of our products such as GMP PIC/s, ISO 9001 and ISO/IEC 17025:2017. We are planning to export to developed countries and we will have the products certified by their FDAs. Where do you see your company being in five years’ time?

We aim to be the leader of drugs for elderly patients, because we are investing a heavily in R&D for the production of new generic drugs in that field. We will be the leader in CMO and will become the CMO for more multinational companies, in addition to becoming the leader in R&D, CRO and Laborator y Testing Ser vices.

Interviewed by Chadaphan Maliphan, Neele Bösche and Lisa te Kaat, GTCC Team

www.thailand.ahk.de

18 CHAMBER ACTIVITIES

Thai-German Technology Conference “Biogas in Thailand” To enhance co-operation between Thai and German companies, and within the framework of the German Energy Solutions Initiative suppor ted by the German Federal Ministry for Economic Affairs and Energy (BMWi), GTCC organised a Technology Conference in collabor ation with the Renewables Academy (RENAC) AG on the topic of “Biogas” on 25 March 2019 at Crowne Plaza Bangkok Lumpini Park.

The keynote address was given by Asst. Prof.

Dr. Pruk Aggarangsi from the Energy Research and Development Institute-Nakornping, Chiang Mai University. Speakers from leading German biogas companies — APROVIS Energy Systems GmbH, Binder GmbH, BioEnergie grünes Deutschland GmbH/ BioEnergy Germany Co., Ltd. carbonauten GmbH, CONTINENTAL INDUSTRIE GmbH Gebläse- & Exhaustorentechnik, Maxxtec GmbH, PlanET Biogas Global GmbH and Weber Entec GmbH & Co. KG — discussed and shared experiences in biogas topics and relevant technology solutions in order to assist Thailand in achieving its goals.

HANNOVER MESSE 2019 delegation visit From 30 March to 7 April 2019, GTCC organised its annual delegation trip to HANNOVER MESSE 2019, the largest trade fair worldwide for industrial technology. The trip featured site visits to ZF TRW Automotive GmbH (which produces and intelligently integrates active and passive safety systems), Mercedes-Benz in Bremen (one of the most modern automotive factories in the world), Airbus Defence and Space GmbH (leading global industrial hub for transport, manned space flight and space robotics) and Porsche in Leipzig (production of the Macan model and the Panamera series). The 29 participants focused on the topic of “Integrated Industries — Industrial Intelligence”, which provided them with valuable insights during the site visits and the two days spent at the trade fair.

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CHAMBER ACTIVITIES 19

GTCC Stammtisch Bangkok at Rembrandt Hotel & Suites Bangkok The second GTCC Stammtisch Bangkok of 2019 took place at the Da Vinci Restaurant in the Rembrandt Hotel & Suites Bangkok on 4 April 2019. GTCC Board Member Mr. Marcus Magiar opened the event and welcomed guests from the German-Thai business community. Afterwards the guests enjoyed a wide range of Italian food and German beer while networking.

GTCC Eastern Seaboard Seminar with Schuler (Thailand)

On 26 April 2019, GTCC organised an Eastern Seaboard Seminar in collaboration with Schuler (Thailand) Co., Ltd. on the theme of “The challenge at the press shop of today�.

Speaker Mr. Rolf Wittlinger, Director, Service Asia/Asia of Schuler (Thailand) Co., Ltd introduced the participants to the road to the digital future with Schuler as well as the Intelligent network in the smart press shop.

www.thailand.ahk.de

20 CHAMBER ACTIVITIES

GTCC Eastern Seaboard Networking The GTCC hosted its Eastern Seaboard networking event on 26 April 2019, in collaboration with multiple bilateral Chambers, at the Pullman Pattaya Hotel G. The event attracted 150 members, other guests and friends. GTCC would like to express its sincere gratitude to par tners DACHSER and Pullman Pattaya Hotel G for their great support of this event.

GTCC Breakfast Talk with Luther LLP

On 30 April 2019, GTCC organised an Executive Breakfast Talk on “The European General Data Protection Regulation (GDPR) and what Thai businesses need to know about it� at the Radisson Blu Plaza Bangkok.

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Mr. Sebastian Blasius, Attorney-at-Law at Luther LLP, showed the participants on how to evaluate whether or not the European data protection laws would be relevant to their organisation and, if so, which steps would

need to be taken to make sure that their business complied with the new rules. Luther LLP is one of the largest German-based law firms in South-East Asia.

CHAMBER ACTIVITIES 21

GTCC White Asparagus Wine Dinner In partnership with DACHSER (Thailand) Co., Ltd., GTCC held a White Asparagus Wine Dinner on 3 May 2019 at the Royal Orchid Sheraton and Towers, at which it welcomed about 60 distinguished guests including German Ambassador to Thailand, H.E. Georg Schmidt.

The participants enjoyed the five-course finely cooked “white gold” dinner and a selection of German premium wines. GTCC is grateful for the support provided by DACHSER in making this event a big success.

GTCC Business Women Networking The second GTCC Business Women Networking event, which was held on 16 May 2019 at the Movenpick BDMS Wellness Resort Bangkok, discussed “Career fulfilment for business women: Is striving for leadership the only option?”. About 30 women from various professions joined the event, which was moderated by the GTCC Head of Membership, Events and Communications, Ms. Patchar apor n Korbuakesor n. The par ticipants shared their experiences regarding career fulfilment aspects and developed good friendships during the event.

www.thailand.ahk.de

22 CHAMBER ACTIVITIES

Breakfast Talk with L&P On 28 May 2019, GTCC organised its second Executive Breakfast Talk of the year with Lorenz & Partner Co., Ltd. (L&P) at Spaces, in the Empire Tower. Mr. Till Morstadt, Equity Partner of Lorenz & Partner, presented key issues on “Transfer pricing and BEPS — challenges and opportunities for internationally operating companies in Thailand”.

He shared interesting information on how the new standards work and how to prepare for the new environment in order to reduce tax exposure resulting from those changes. Lorenz & Partner is one of the leading German law firms in Thailand.

GTCC Business Luncheon: International Green Building Certification

In par tnership with EGS-Plan (Bangkok) Co., Ltd., Africus Co., Ltd., and other bilateral Chambers, GTCC hosted a Joint Chambers Business Luncheon on 4 June 2019 at Mövenpick BDMS Wellness Resort Bangkok on the topic of “International Green Building Certification — What’s new in LEED V4.1, DGNB 2019 and WELL V2?”. The speakers shared information on the updated international Green Building Certification Systems that are currently available in Thailand. They provided some insights into what is new and made a comparison between the different systems.

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CHAMBER ACTIVITIES 23

GTCC-FCCT-TICC Ice-Breaker Networking “Innovation & Lifestyle Night 2019” GTCC, in co-operation with FTCC and TICC, organised a GTCC Ice-Breaker Networking event, “Innovation & Lifestyle Night 2019” on 6 June 2019. Guests enjoyed exploring new innovative and lifestyle products from selected German, French, Italian and Thai companies.

In addition, they had an oppor tunity to purchase the products at excellent discounts. Many thanks to the hotel partner, Sofitel Bangkok Sukhumvit, for making the event successful.

RIS Swiss Section School Extension Project meeting On 10 June 2019, the Chamber, together with RIS Swiss Section — Deutschsprachige Schule Bangkok, held a meeting at the GTCC office concerning the RIS Swiss Section School Extension Project and possible contributions by German companies to its sustainability.

The President of the School Board, Mr. Knut Sierotzki, and School Principal, Mr. Simon Dörig, discussed possible contributions to the sustainability and efficiency of the project with the participants.

www.thailand.ahk.de

24 CHAMBER ACTIVITIES

GTCC Rountable “How to handle a dragon?”

On 12 June 2019, GTCC organised a round table event on “How to handle a dragon? — German-Chinese economic relations amidst the US-China trade war”. The speaker, Mr. Jens Hildebrandt, Executive Director of the German Chamber of Commerce in China - Nor th (AHK Greater China), and the guests discussed the implications of the trade war between the United States and China for GermanyChina economic relations. He also shared his perspective on how German companies could prepare themselves.

GTCC Eastern Seaboard Seminar with L&P “Labour Law Matter” On 14 June 2019, GTCC , organised the second Joint Chamber Eastern Seaboard meeting of the year, in collaboration with Lorenz & Par tners Co., Ltd. (L&P), at the Pinnacle Grand Jomtien Resort on the topic of “Labour Law matter — how to avoid labour disputes in view of the new Labour Protection Act”. Speakers Mrs. Athitaya Chanthasirichot and Mr. Rapeesak Kesasuwan provided the participants with insights into the new Labour Protection Act which recently came into force and increased the rights of employees.

The seminar gave an overview on the current legislation and outlined how to reduce risks when ending an employment relationship.

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CHAMBER ACTIVITIES 25

AHK Digital Strategy Workshop Asia-Pacific

GTCC welcomed thir ty-six par ticipants from the German Chambers of Commerce Abroad (AHKs) in the Asia-Pacific region to the 2-day AHK Digital Strategy Workshop during 13-14 June 2019, to set the digital goals and strategy for our global network in 2025 together. The participants also jointly identified challenges and oppor tunities of digitalization within the AHK network.

26 CHAMBER ACTIVITIES

Guests, including GTCC members, business partners and executives from more than 20 top brands in the German-Thai business community, participated in the GTCC Gala Night 2019 at Shangri-La Hotel, Bangkok, on 24 May 2019.

GTCC President Mr. Markus Lorenzini welcomed the guests and gave the opening speech in which he said: “Our theme this year, ‘Fairy Tales’, represents a wonderful fantasy world and is also reminiscent of the Brothers Grimm fairy tales which were collected and published more than 200 years ago in Germany”.

Mr. Lorenzini said that fairy tales also tell stories of wonderful miracles like the economic miracle (Wirtschaftswunder) as a period of tremendous economic growth in West Germany in the 1950s and early 1960s. The social market economy is considered a main driving force for the economic development of Germany. “The concept of social market economy was successful in Germany because it was based on the Basic Law of the Federal Republic of Germany, Germany’s Constitution, which came into effect on 23 May 1949. Therefore, this year Germany celebrates the 70th anniversary of the Basic Law (Grundgesetz),” Mr. Lorenzini added.

He also pointed out another miracle in the life of the German people, which happened 30 years ago — the fall of the Berlin wall in 1989, which led to the reunification of Germany.

GTCC was honoured by the presence of the German Ambassador to Thailand, H.E. Georg Schmidt, who also delivered a special address about the peaceful reunification of West and East Germany, and how the Basic Law came into force. Among the VIP guests were: Ms. Duangjai Asawachintachit, Secretary-General of Thailand Board of Investment; Mr. Supant Mongkolsuthree, Chairman of the Federation of Thai Industries; and Mr. Chusak Chuenprayoth, Vice-Chairman of Thai Chamber of Commerce.

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CHAMBER ACTIVITIES 27

www.thailand.ahk.de

28 CHAMBER ACTIVITIES

The prestigious evening was made possible by the suppor t from leading German and Thai companies including: (Diamond Partner) Mercedes-Benz Thailand Limited; (Gold Par tner) BMW Thailand Co., Ltd.; (Silver Partners) AMATA Summit Ready Built Co., Ltd., B.Grimm Trading Corporation Limited, Continental Automotive Bangkok Co., Ltd., Covestro Thailand Company Limited, DACHSER Thailand, Deutsche Bank AG, Mazars Thailand Limited, Thai Nakorn R.O.P and Symbior Solar Limited; (Airline Partner) Lufthansa Group; (Logistics Partner) Leschaco Thailand Limited; (Beverage Partners) Global Wines & More Company Limited and Flow Inter Company Limited; (Hotel Par tner) Shangri-La Hotel Bangkok; (In-kind partners) Bumrungrad International Hospital, Majorette Thailand Co., Ltd., Hua Hin Marriott Resort & Spa, Ramada Plaza by Wyndham Bangkok Menam Riverside, Rober t Bosch Limited, Samitivej Hospital Public Company Limited and SO Sofitel Bangkok; (Media Par tners) Big Chilli and HELLO! & Prestige (Burda Thailand) All proceeds from the raffle ticket sales at the Gala Night were donated to the Iceman Charity, to be used to provide a new Kärcher scrubber machine for the daily cleaning of a 2,000-m2 canteen for 2,400 children in an orphanage under the administration of Wat Sakaeo Temple in Ang Thong.

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CHAMBER ACTIVITIES 29

www.thailand.ahk.de

30 GTDEE INSIGHT

GTCC Certificate Presentation at Robert Bosch Automotive Technologies (Thailand) On 5 February, CIM Integrated Expert and GTDEE Project Director, Mr. Markus Hoffmann an d Sen io r M an ag e r of t h e G TD E E Depar tment, Dr. Kamonsak Sur adom par ticipated in the GTCC Cer tificate Presentation Ceremony for the Apprenticeship Programme Batch 2016 in Production Techniques, Quality Management and Logistics at Robert Bosch Automotive Technologies (Thailand) Co., Ltd. Fur thermore, the company’s Financial Controller, Ms. Nuria Aparici Peidro, and the management team joined the congratulatory ceremony.

Meeting the Minister of Education On 11 February 2019, Mr. Markus Hoffmann and Dr. Kamonsak Suradom par ticipated in the second meeting of the National Vocational Education Committee on Internationalization Vocational Education, hosted by Dr. Teerakiat Jaroensettasin, M.D., Minister of Education, at the Ministr y of Education. Fur thermore, the public and private agencies participating in the meeting included the Board of Trade of Thailand, Federation of Thai Industries (FTI), Office of Vocational Education Commission (OVEC), Thailand Professional Qualification Institute (Public Organisation), Irish-Thai Chamber of Commerce, British Chamber of Commerce Thailand, Australian-Thai Chamber of Commerce and German-Thai Chamber of Commerce.

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GTDEE INSIGHT 31

Pre-selection of Apprenticeship Programme Batch 2019 From February 2019 to April 2019, the GTDEE team organised the apprentice’s pre-selection Batch 2019 for GTDEE partner companies listed below.

GTDEE Apprenticeship Programme batch 2019

Date

Company

College

8 February 2019

BMW (Thailand) Co., Ltd.

Don Bosco Technological College

26 February 2019

Mercedes-Benz (Thailand) Co., Ltd.

Eastern Technological College (E.Tech)

27 February 2019

Mercedes-Benz (Thailand) Co., Ltd.

Samut Prakan Technical College

18 March 2019

Mercedes-Benz (Thailand) Co., Ltd.

Bangkaewfa Vocational College

21 March 2019

BMW (Thailand) Co., Ltd.

Eastern Technological College (E.Tech)

3 April 2019

Mercedes-Benz (Thailand) Co., Ltd.

Lopburi Technical College

www.thailand.ahk.de

32 GTDEE INSIGHT

BMW Service Apprentice Scholarship ceremony 2019

On 1 March 2019, GTDEE team members Dr. Kamonsak Suradom, Mr. Panuwat Jaitham, Mr. Katiphot Kanoknorrasade and Ms. Apinya Amporn participated in the BMW Service Apprentice Scholarship ceremony 2019, which was organised at the BMW Group (Thailand) Training Centre, Pathum Thani. Additionally, the scholarships for

apprentices Batch 2017 and Bath 2018 were handed out by Mr. Chanin Thitijarupaisan, BMW Business Development Manager.

Fur thermore, the teachers from Chitralada Technology Institute, Don Bosco Technological College and Eastern Technological College (E. Tech) attended the event.

Final examination meeting with Thai-Austrian Technical College On 12 March 2019, GTDEE team members Dr. Kamonsak Suradom and Senior Consultant Mr. Katiphot Kanoknorrasade participated in a meeting at the Thai-Austrian Technical College with Head of the Mechatronics D epar tm en t, M r. S o m b a t In - yi n a n d apprentices from Robert Bosch Automotive Technologies (Thailand) Co., Ltd. (HmjP), on the Final Examination preparation in Mechatronics.

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GTDEE INSIGHT 33

Fourth meeting of the National Vocational Education Committee On 14 March 2019, GTDEE team members, Dr. Kamonsak Suradom, Mr. Panuwat Jaitham and Mr. Katiphot Kanoknorrasade participated in the four th meeting of the National Vocational Education Committee on Internationalisation Vocational Education, hosted by Dr. Teerakiat Jaroensettasin, M.D. Minister of Education, at the Ministr y of Education. Fur thermore, the public and private agencies participating in the meeting included the Board of Trade of Thailand, the Office of Vocational Education Commission (OVEC), Thailand Professional Qualification Institute (Public Organisation), Thai Chamber of Commerce, Irish-Thai Chamber of Commerce, British Chamber of Commerce Thailand, Austr alian-Thai Chamber of Commerce, German-Thai Chamber of Commerce, IBM and Microsoft.

Three-party meeting on preparations for the GTCC final examination 2019 On 18 March 2019, GTDEE team members Dr. Kamonsak Suradom, Mr. Panuwat Jaitham and Mr. Katiphot Kanoknorrasade participated in a meeting with Mr. Ritthawat Chinnawong and Ms. Supreeda Siripat from Grohe Siam Limited together with Mr. Somsak Wachiradusit, Head of the Electric Power Department of Eastern Technological College (E. Tech). The main discussion of the meeting involved on the preparations for the GTCC final examination 2019 for apprentices Batch 2017. Furthermore, the apprentices were also given the guidelines regarding the examination.

www.thailand.ahk.de

34 GTDEE INSIGHT

Developing a Competent Workforce to Meet International Standards Workshop On 29 March 2019, GTDEE team members par ticipated in Developing a Competent Workforce to Meet International Standards Workshop at Rajamangala University of Technology Phr a Nakhon. Mr. Mar kus Hoffmann was invited to give a presentation on GTDEE’s services, i.e., apprenticeships, AdA International — Train the Trainer, and quality assurance on vocational institutions.

After the presentation, the GTDEE team had an oppor tunity to present all the GTDEE ser vices in detail to the audience, which comprised par ticipants from Rajamangala Univer sity of Technology Bangkok, King Mongkut’s University of Technology Nor th Bangkok and Eastern Technological College.

Visiting to Khon Kaen Technical College On 5 April 2019, Mr. Markus Hoffmann and Dr. Kamonsak Suradom, together with Khon Kaen Brewery Co., Ltd. staff visited Kho n Kae n Te c hnic al Co lleg e . They participated in a meeting with the College Director, Dr. Sitthisak Khampati and staff to discuss co-operation on dual vocational education under the GTDEE programme in the professions of Electric Power, Mechanics and Electronics for the B certificate (local dual VET in line with the German model).

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GTDEE INSIGHT 35

Examination Committee meeting on PAL Final Examination 2019 On 19 April 2019, GTDEE team members; Mr. Mar kus Hoffmann, Dr. Kamonsak Suradom, Mr. Panuwat Jaitham, Mr. Katiphot Knoknorrasade and Ms. Apinya Amporn par ticipated in the meeting with BMW (Thailand) Co., Ltd.’s Manager, Qualification and Training, Mr. Wichit Tangwongcheunsuk, Senior Technical Trainer, Mr. Natthapong Lorpisanchai and Senior Technical Trainer, Mr. Kriskorn Kraichinda; Mercedes-Benz (Thailand) Co., Ltd.’s Senior Training Manager, Mr. Prawit Muang-Im and Senior Technical Trainer, Mr. Anucha Prathumrat; and College of Industrial Technology of KMUTNB’s Assoc. Prof. Dr. Chedthawut Poompipatpong, Asst. Prof. Dr. Warit Thammasiriroj and Asst.

Prof. Direk Choowichien. The discussion was mainly focused on the preparations for the PAL final examination in Automotive Mechatronics for apprentices Batch 2017. The meeting was organised at the BMW Group (Thailand) Training Centre, Pathum Thani.

GTCC Final Examination 2019 During April 2019, the GTDEE team organised the GTCC final examination 2019 in various professions listed below.

Date Professions Company

Number of apprentices

Exam venue

23 April 2019 Mechatronics

Robert Bosch Automotive Technologies (Thailand) Co., Ltd. - Hemaraj

8

KMUTNB

25 April 2019 Mechatronics

Robert Bosch Automotive Technologies (Thailand) Co., Ltd. - Hemaraj

1

KMUTNB

Grohe Siam Limited

6

KMUTNB

25 April 2019

Mechatronics

25 April 2019 Mechanics Grohe Siam Limited 3

Don Bosco Technological College

25 April 2019 Electric Power Grohe Siam Limited 1

Don Bosco Technological College

www.thailand.ahk.de

36 BUSINESS BRIEFS

German Desk at Mazars Thailand

The German Desk at Mazar s Thailand provides support to German companies at every stage of their corporate development, helping them to seize oppor tunities in a competitive business environment.

Martin Liebenow, the head of the German Desk and German tax consultant (Deutscher Steuerberater), noted that “Mazars is agile and able to adapt to the speed at which

business moves. The German Desk acts as a point of contact for German businesses that plan to enter the Thai market or expand their existing business operations. We can provide advice and handle both local and international challenges, and facilitate growth“.

The German Desk can assist business clients of all magnitudes by providing in-depth knowledge and experience of various industries as well as a clear understanding of German business practices, to ensure that clients comply with local regulations.

Mazars Thailand’s expertise covers audit and assurance, accounting and payroll services, tax advisory services, legal services and business advisory.

Mazars has a strong global network and integrated partnership structure that enables it to handle cross-border assignments seamlessly. With German desks in almost every country where Mazars is operating, the firm works closely with colleagues to share information and ensure that client requirements are met.

For more information on Mazars Thailand, please visit www.mazars.co.th For more information on the German Desk: www.mazars.co.th/Home/International-services/German-Desk About Martin Liebenow: www.mazars.co.th/Users/Our-team/Martin-Liebenow2

ARBURG Thailand celebrates inauguration of new premises On 17 May 2019, the ARBURG subsidiary in Thailand celebrated the official opening of its new building in Samut Prakarn. To mark the occasion, an open-house event was held, which was attended by around 60 guests who were able to experience the potential of the largest ARBURG showroom in South-East Asia for themselves.

Andrea Carta, ARBURG Director of Overseas Sales, thanked the customers and the ARBURG Team Thailand on behalf of the entire parent company “The successful development confirms that we chose the right path decades ago and that our continuous investments in this important market have paid off ”, she said.

ARBURG’s activities in Thailand started almost three decades ago. Since December 1992, it has been managed by a representative office of ARBURG Pte Ltd. Its first employee was Mr. Ratree Boonsay, who also took over the management in 2001 of the newly founded subsidiary, and with her team successfully established and expanded it. In order to further improve the range of services, the subsidiary moved to its new premises in Samut Prakarn, one of Thailand’s leading industrial regions.

With its 705 m² offices, the new building offers considerably more space for machines and training. The showroom, with space for three ALLROUNDER injection moulding machines, is at the heart of the building. As well as functioning as a presentation forum, it is also a central point of contact for customer trials and practical training. A training room with space for 18 persons is available for the theoretical aspects. The spare parts warehouse has also grown, which this allows even more spare parts to be delivered directly. In addition, there is a hotline

UPDATE 3/2019

for quick help by telephone as well as the availability of competent service technicians for fast assistance on site.

BUSINESS BRIEFS 37

Continental celebrates grand opening of Greenfield Tire Plant, Rayong

and representatives of academic institutions, gathered on site to celebrate this important milestone The new tyre plant is a Euro 250 million investment in Thailand and is equipped with state-of-the-ar t technology to produce premium tyres for about four million passenger vehicles and light trucks in Thailand and the whole Asia Pacific Accreditation Cooperation (APAC) by 2022.

The leading technology company, Continental, on 27 March 2019 celebrated the grand opening of its Greenfield Tire Plant in Rayong, Thailand. Starting operations exactly on schedule, only two years after the groundbreaking ceremony, the tyre manufacturing facility welcomed around 500 guests on-site. Dr. Somchai Harnhirun, Thailand’s Deputy Minister of Industry, Mr. Nikolai Setzer, member of the Executive Board of Continental and Head of the Tyre Division, together with Continental’s management, local project team and employees as well as suppliers, dealers

The Rayong plant is the seventh Greenfield manufacturing facility opened by the company since 1998. It expands the Tyre Division’s global production footprint from currently 19 plants across 16 countries to 20 plants in 17 countries.

Dachser names Jan-Michael Beyer as Managing Director Thailand Jan-Michael Beyer was appointed Managing Director, Air & Sea Logistics Thailand on 27 April 2019. In his new role, he reports to Edoardo Podestá, Managing Director, Air & Sea Logistics Asia-Pacific.

Beyer completed his degree studies in transport and logistics management, and then gained his first work experience in a logistics company in Hamburg. In 2007, he joined Dachser in Germany and shor tly after relocated to Asia, where he has held several positions with a strong focus on sales.

After successfully managing sales activities in Thailand since 2015, he was promoted to Head of Sales Air & Sea Logistics Thailand, Vietnam, Singapore and Malaysia in 2018, which gave him extended responsibilities across the South-East Asian region. His

customer-driven mindset and solutions-driven approach have allowed him to address customers’ specific needs in Thailand.

“Thailand is a major logistic hub in the region, with one of the most developed industries within ASEAN. Being the second-largest economy in South-East Asia, this country has huge potential in many aspects,” Mr. Beyer said.

“Together with our team, I believe we can fur ther develop sales in the local market and unleash its potential for our Dachser network,” Mr. Beyer said. “In addition, from a logistical point of view, Thailand is a fascinating place. I am looking forward to working closely with our professional teams to combine our experiences and skills in driving our business to the next level,” he added.

www.thailand.ahk.de

38 MEMBERS’ CORNER

New GTCC members up to 30 June 2019

German-Thai Chamber of Commerce warmly welcomes 15 new members BDMS Wellness Resort Co., Ltd.

CleanMax IHQ (Thailand) Co. Ltd.

Mr. Bruno Huber General Manager Khun Prin Pathanatham Executive Assistant Manager resort.bdms.info@movenpick.com https://www.movenpick.com/en/asia/thailand/bangkok/bdms-wellnessresort-bangkok/overview/ Accommodation | Food and beverage service activities

Mr. Harsh Deept Dash Business Development Lead Mr. Umakant Shende CEO, Southeast Asia thailand@cleanmaxsolar.com www.cleanmaxsolar.com Electricity, gas, steam and air conditioning supply | Specialised construction activities | Financial service activities, except insurance and pension funding

Beach Republic (Samui) Co., Ltd.

Diva Beauty Co., Ltd.

Mr. Thimothy John Alexander Dean-Smith President Khun Sumintra Sethawatpongsa Director tim@beachrepublic.com www.beachrepublic.com Accommodation | Food and beverage service activities

Khun Suwanna Sato Company Director Mr. Rynichi Sato Company Director suwanna.sato@gmail.com www.takecarebeauty.com Manufacture of chemicals and chemical products | Other personal service activities

Blue Lotus Hua Hin (Thailand) Ltd.

Expotrade Services Ltd.

Mr. Robert Pijper Project Director groupmarcomm@banyanthailand.com www.banyanthailand.com Hotels and similar accommodation

Mr. Francesco Mesiti Managing Director mail@expotrade.services www.expotradeservices.com Specialised construction activities | Management consultancy activities | Advertising and market research

Bold Group GmbH

Henley & Partners (Thailand) Co., Ltd.

Mr. Ralph Rettler Managing Director Khun Teerasak Wongpiya Managing Director Asia ralph.rettler@bold.group www.bold.group Activities of head offices; management consultancy activities

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Mr. Andrew Raming Senior Manager Khun Oak Samart Country Manager andrew.raming@henleyglobal.com www.henleyglobal.com Activities auxiliary to financial services and insurance activities

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HĂśrmann Thailand Co., Ltd.

Regus Management (Thailand) Ltd.

Mr. Martin Jobst Hermann Hoermann Board of Director Khun Chaithanan Jandeenontapat General Manager Chaithanan.Jandeenontapat.bkk@hormann.co.th http://www.hoermann.com Manufacture of fabricated metal products, except machinery and equipment | Other construction installation | Joinery installation

Mr. Anan Jamnansribejra Area Manager Mr. Lars Wittig VP Sales ASEAN info@regus.co.th www.wgplc.com Real estate activities | Rental and leasing activities | Office administrative, office support and other business support activities

Mahanakorn Partners Group Co., Ltd.

Thai Bedding Co., Ltd.

Mr. Luca Bernardinetti Managing Partner Khun Vilasinee Thephasadin Na Ayuthaya Managing Partner luca@mahanakornpartners.com www.mahanakornpartners.com Financial service activities, except insurance and pension funding | Legal and accounting activities

Khun Thanaphat Techakuakulwong Managing Director thaibed@trueclick.net www.picasso.co.th Other manufacturing

Mr. Michael Berger

Total Access Communication Public Co., Ltd.

Associate Consultant at Mercuri Urval michael.berger@mercuriurval.com, michael-berger@gmx.de

Mrs. Alexandra Reich Chief Executive Officer Mr. Rajiv Bawa Chief Corporate Affairs and Business Development Manager alexandra@dtac.co.th www.dtac.co.th Telecommunications

P3 Automotive GmbH Mr. Bjoern Voss Director Mr. Jan Hinrichs Managing Director info.automotive@p3-group.com www.p3-group.com Architectural and engineering activities; technical testing and analysis | Other professional, scientific and technical activities

www.thailand.ahk.de

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EMO Hannover 2019

The world’s premier trade fair for the metalworking industry 16 – 21 September 2019, Hannover Exhibitors travel to EMO Hannover from all over the world and from all sectors of metalworking technology. With a share of foreign exhibitors running at approximately 60%, EMO Hannover is the world’s most international metalworking trade fair. As the leading fair of its kind, it serves as a networking hub epitomizing the highest level of expertise among providers and users. EMO Hannover presents an unparalleled width and depth of products and services covering all production areas relevant to machine tools and production systems – ranging from machining and forming, as the nucleus of manufacturing, to precision tools, accessories and control technology, system elements and components for automated manufacturing, right on up to interconnecting equipment and industrial electronics. Visitors who come from all over the world can examine the unrivaled innovations potential of productivity and efficiency displayed at the fair.

Aiming to support trade and investment between Germany and Thailand, GTCC organizes an exclusive Business & Study Trip to EMO Hannover.

The study trip will also combine the visit to leading German companies, both technology providers and users, in order to gain first-hand insights and experience.

The delegation trip to visit EMO Hannover is scheduled for 14 – 22 September 2019.

To enquire for information or to reserve the seat in the business & study trip, please reach us at +66 2 055 0643 or e-mail to services@gtcc.org.

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ITB Asia 2019: Premier meeting place for the global travel trade industry 16-18 October 2019, Singapore ITB Asia, the region’s leading travel trade event, is an annual three-day B2B trade show and convention designed to bring together the key travel industry leaders in the region. It features hundreds of exhibiting companies from the Asia-Pacific region as well as Europe, the Americas, Africa and the Middle East. It covers not only the leisure market, but also the corporate and MICE segments.

Now in its twelfth year, ITB Asia will be held in Marina Bay Sands in Singapore from 16 to 18 October 2019. The show, which is organised by Messe Berlin (Singapore) Pte. Ltd., is supported by the Singapore Exhibition and Convention Bureau.

Exhibitors from every sector of the industry are expected to par ticipate, including destination promoters, airlines and airports, hotels and resor ts, theme par ks and attractions, inbound tour operators, inbound DMCs, cr uise lines, spas, venues, other meeting facilities and travel technology companies.

ITB Asia is the travel trade industry’s premier meeting place for forging new partnerships an d s tr e n gth en in g e x i s t i n g bu s i n e s s

relationships among the most important players in the region. This is where international exhibitors of all sectors within the travel value chain, including Asia-Pacific’s leading travel companies and emerging small and medium-sized enterprises’ meet with top international buyers from the MICE, leisure and corporate travel markets.

The key highlights of ITB Asia 2018 included: • As Asia’s largest and only hybrid show, bringing together more than more than 1,000 exhibitors, 1,000 buyers and 11,000 delegates from the MICE, corporate and leisure sectors in 127 countries; • Connections with more than 1,000 pre-qualified buyers; • Capturing the immense growth of the Asian outbound market, with more than 70 per cent of buyers based in Asia; • Guaranteed 1:1 ratio between buyers and exhibitors; • Representation of more than 127 countries, making ITB Asia the most international travel trade show in the region; • Sixty per cent recommended buyers from 120 intermediaries; • Contract signing between one in every two buyers with exhibitors, thereby making it the most business-conducive trade show; • Seventy per cent of the participants who were decision makers • Some 25,000 pre-scheduled appointments arranged exclusively between buyers and exhibitors before the show, and 100 per cent pre-scheduled appointments with at least 33 guaranteed appointment slots with preselected buyers.

More information about ITB Asia can be found at https://www.itb-asia.com. For fur ther details, please contact GTCC’s official representative for Messe Berlin GmbH in Thailand, Ms. Patamaporn Wasuwat, by telephone at +66 2 055 0641 or by e-mail at berlin@gtcc.org.

www.thailand.ahk.de

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BAU China 2019: Largest specialised show for design and construction of building openings 5-8 November 2019, Shanghai The leading trade fair in the Asia-Pacific region for “Building Systems Solutions, High-End Technologies and Materials” will take place for the first time as BAU China from November 5 to 8, 2019. Since its premiere in 2017 as FENESTRATION BAU China, exhibition segments have been integrated in line with BAU in Munich. The new name now better reflects the evolution and the variety of topics the event has to offer.

Under the umbrella of BAU China, five segments will from now on form the pillars of the event. FENESTRATION BAU China, being integrated into BAU China, continues to occupy the largest exhibition area. With the other segments, Architecture Solutions/ CADE, Digitalization & Building Automation, Flooring as well as Roofing and Waterproofing, the total area of the trade fair is to continue to grow substantially.

About 650 national and international companies will be presenting themselves to around 100,000 potential buyers expected to visit the eleven halls of the Shanghai New International Expo Center (SNIEC). The exhibitors will display comprehensive display door and window systems, building materials, hardware accessories and various system solutions applied in building. They will include various green, intelligent, safe, highperformance and low-energy-consumption

UPDATE 3/2019

products and materials applied in construction, customised personalised solutions, intelligent manufacturing and driving systems and future building scenes. Visitors will have opportunities to meet their peers or future business par tners from all over the world as well as negotiate business oppor tunities, break through restrictions and discover innovations.

In addition to the offerings of the exhibitors, there will again be a comprehensive supporting program tailored to the needs of the industry in China and picking up on trend topics of the industry.

At the Prefabrication Materials & Green Building Forum in the Future Building Hall, discussions will be held on how the construction of the future can implement the issues of sustainability, energy efficiency and smart solutions.

Following its premiere in 2018, the China Architecture and Design Expo (CADE) will take place again this year in cooperation with the Architectural Society of China. In Hall W5, architects will find stimuli for new design concepts, application trends, building materials and technologies.

In keeping with the topic, the BAU Congress China will also be held in this hall. Under the

central theme “The Future of Building in China”, the three-day congress will once again offer insights into practice-oriented solutions for the Chinese construction industry.

More details on BAU China are available at http://www.bauchina.com. For fur ther information, please contact GTCC’s official representative for Messe München GmbH in Thailand, Ms. Patamaporn Wasuwat, by telephone at +66 2 055 0641 or by e-mail at muenchen@gtcc.org.

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