Seven local SMEs win “Bai Po Business Awards by Sasin” A Thai SME Success Story

Siam Commercial Bank (SCB) and the Sasin Graduate Institute of Business Administration of Chulalongkorn University are presenting the prestigious “Bai Po Business Awards by Sasin” to 7 local SMEs. Award winners include Black Canyon (Thailand) Co., Ltd., Narai Intertrade Co., Ltd., Masterkool International Co., Ltd., Teera-Mongkol Industry Co., Ltd., Accurate Technology Co., Ltd., Aruna Co., Ltd., and Papop Co., Ltd. These awards reflect the strong potential and high quality of Thai SMEs. The award presentation ceremony will be held at the Siam Commercial Bank Talad Noi Branch, and presided over by Mr. Anand Panyarachun, Siam Commercial Bank Chairman of the Board of Directors. SCB Business Banking Group Senior Executive Vice President Sirichai Sombutsiri noted that "The Bai Po Business Awards by Sasin are a collaborative effort between Siam Commercial Bank and the Sasin Graduate Institute of Business Administration of Chulalongkorn University. Established in 2007 to recognize successful Thai companies demonstrating distinction among peers, the award aims to inspire local business operators to be more active in continuously enhancing their capabilities, and to assist them in becoming role models for other local small and medium enterprises in setting good standards and boosting sustainable economic growth. This is the fourth time in a row that these award ceremonies have been organized. To date 15 outstanding companies have received the awards, bringing great pride to the SME community."


Sasin Academic Affairs Deputy Director Kittiratt Na Ranong explained that, "Award winners must pass primary evaluation criteria and demonstrate distinctive qualifications critical to competitiveness, including customer focus, innovation, quality, adaptability to change, value creation, branding, efficiency, leadership & team building, social responsibility, and entrepreneurship. These criteria are considered critical to the development of SME business in order to withstand an unfavorable business environment and current economic woes. In selecting award winners, the Evaluation Committee Panel will judge qualified award recipients from candidates, with no limit to the number of candidates receiving the award each year."

Honorary Chairman of the Thai Chamber of Commerce Dr. Ajva Taolananda, in his capacity as the Chairman of the Evaluation Committee Panel, disclosed that this is the forth time that the Bank and Sasin have organized the award presentation ceremony. This year the committee selected seven companies to receive the awards, out of more than 150 applicants or nominated candidates, namely:

Teera-Mongkol Industry Co., Ltd.: A leading manufacturer and distributor of ballast and lighting equipment, the Company has introduced innovative technology emphasizing energy savings and manufactures products that offer an effective substitute for import products. The Company was awarded for its distinction in terms of adaptability to change and quality.

Narai Intertrade Co., Ltd.: A designer, manufacturer, and distributor of fabric bags and accessories under the "Naraya" brand, the Company is distinguished for its quality and efficiency.

Black Canyon (Thailand) Co., Ltd.: The Company operates coffee shops and restaurants famous worldwide and has distinguished itself through branding and value creation.

Papop Co., Ltd.: An environmental engineering consultant company helping businesses reduce their costs, while also generating more revenues. Its two-in-one technology effectively treats wastewater and generate biogas as renewable energy at the same time. The Company was awarded for its distinction in innovation, value creation, and social responsibility.

Masterkool International Co., Ltd.: A manufacturer and distributor of outdoor cooling system products that employ a natural water evaporation process, the Company has distinguished itself through its innovation, customer focus, and branding. Accurate Technology Co., Ltd.: A leading manufacturer, distributor, and exporter of industrial laundry equipment under the “Image” brand, distinguished for innovative technology and reduced production costs. As evidence of its branding, innovation, and quality leadership, the Company is No. 1 sales in the ASEAN region and No. 14 in the world.

Aruna Co., Ltd.: An OEM exporter of regular and polychromos color pencils, Aruna Co. is Thailand's first and only company with a special integrated bonding technique for producing lead with certified quality standards, safety, and a friendly environment. The Company was awarded for its distinction in terms of quality and customer focus. The “Bai Po Business Awards by Sasin” awards presented to these 7 companies will certainly help create business opportunities, boost creditability for trading partners and customers, and inspire other firms to demonstrate their competitiveness and growth.

Previous Bai Po Business Awards by Sasin award winners include Rukluke Edutex Co., Ltd., Officemate Co., Ltd., Bathroom Design Co., Ltd., Business Online Public Co., Ltd., General Hospital Products Public Co., Ltd., Taokaenoi Food and Marketing Co., Ltd., Bertram Chemical (1982) Co., Ltd., Botanique Co., Ltd., Ubis ( Asia) PCL, Interlink Communication PCL, Yothaka International Co., Ltd., Nandee Inter-Trade Co., Ltd., VPP Progressive Co., Ltd., Perm Poon Patana Industry Co.,Ltd., and Twin Lotus Co., Ltd.

The “Bai Po Business Awards by Sasin” aim to support the stable growth of local companies. Entrepreneurs can apply, or nominate other companies for the award program, by obtaining details from the Sasin Management Team at 02-218-4009 ext. 181-183, the SCB Business Call Center at 02-722-2222, www.baipo-business-awards.org, or by E-mail at baipo@sasin.edu.

The Sasin Graduate Institute of Business Administration of Chulalongkorn University

‘Roses of the North’ Charity Exhibition

Flowers can make everyone feel happy…. H.E.Privy Councillor Palakorn Suwanrath and Thanpuying Dhasaniya Suwanrath recently presided over at ‘Roses of the North’ charity oil painting exhibition inspired by Bhubing Palace organized by L’Occitane and Baan Saen Doi Resort in Chiang Mai. The art of mercy rose oil painting exhibition was held at Peninsula Plaza and part of sales went to support schools and hospitals where are needed in Chiang Mai. Many kind hearted celebrities attended the event including Khunying Dhipavadee Meksawan, Mr.Harald Link, Arunee Bhirombhakdi, Atchara Tejapaibul, M.L.Sirichalerm Svasti, M.L.Thongmakut and Jarujit Thongyai, Yuwadee and Nidsinee Chirathivat, Dararatana and Toey Mahadumrongkul, Chadapah Snidvongs, Captain Deuntemduang Na Chiengmai, Pimpawan Limpichart, Joy Sopitpongstorn, Panitnuj Bunnag, Piranuj T.Suwan, Sodsoi Chomthavat, Mayura Savetsila, Wanchana Sawasdee and more.

The exhibition showcased of over 70 oil painting of roses flowers by artist and art lecturer Narin Phothisombat. Narin Phothisombat is a talented artist with an art degree from Chiang Mai Technology Rajchamonkol. His painting was inspired by roses from Phra Tamnak Bhubing Rajanives (Bhubing Palace). His painting reflected his pride and passions towards the beauty of nature for roses including Queen Sirikit, Eliza, Rouge Meilland, Queen Elizabeth and Royal Air Force.

In addition there was the charity auction on 2 oil painting pieces. The first one was the painting of Queen Elizabeth which won by Harald Link, CEO of B.Grimm for 120,000 Baht and the other piece on Queen Sirikit won by Arunee Bhirombhakdi for 75,000 Baht.

Citi mandated to raise first syndicated SME financing for a microfinance institution

Citibank, N.A., Dhaka Branch today announced that it has been mandated for the country’s maiden syndicated facility of up to BDT 2 billion (US$29 million) to provide financing for small and medium enterprises (SMEs). This local currency facility will be for BURO Bangladesh, a leading microfinance institution and SME-financing NGO (non-government organization) in Bangladesh. The facility will be utilized by BURO to make credit available to SMEs, especially in rural and semi urban areas. SME financing is a priority area for Citi in Bangladesh and Citi is committed to further participating in the development of the sector.


“This Citi-led initiative is aligned with the Bangladesh Bank’s [the Central Bank of Bangladesh] objective to promote the development of the SME market. We are honoured to have this opportunity to support BURO. Once closed, this deal will provide long-term, local-currency solutions to BURO for the expansion of its SME portfolio,” said Mamun Rashid, Citi Country Officer Bangladesh. The transaction is expected to close in the first quarter of 2010.

This transaction is a follow-on to a recent transaction where Citi Bangladesh successfully closed the country’s first ever syndicated agricultural term facility of BDT1.5 billion (or US$21.7 million) to BURO Bangladesh, to support its expansion of micro-lending to the agriculture sector.

“We'll expedite our SME financing programs across the country using such funds," said Zakir Hossain, Executive Director of BURO, adding that the agency is now running their SME programs in four divisions including Dhaka.

Established in 1990, BURO Bangladesh serves more than 700,000 customers, of which more than 99% are women. BURO has a presence in 51 districts of Bangladesh through over 400 branches. As part of its 2009-2013 expansion program, BURO has plans to open 215 new branches covering 1.65 million total customers.

AIS BLACKBERRY FOR SMEs STAY RIGHT WITH THAI ENTREPRENEURS TO COMBAT THE ECONOMIC CRISIS

Mr. Yip Hon Mun, Vice President Corporate Business of Advanced Info Service Plc. or AIS, disclosed “AIS by Smart SMEs aims at continually developing solutions to support the SMEs entrepreneurs considered core infrastructure of the Thai economy. To reiterate such concept, AIS lately becomes the first to develop AIS BlackBerry service for SMEs entrepreneurs to be equipped with the tool handling administrative works via a BlackBerry handset every time and place. Convenient and cost saving, customers are not required to either invest in BlackBerry Enterprise Server installation or employ the IT help desk to maintain the system. The businesses of entrepreneurs are always connected to the world of business.”

The service AIS BlackBerry for SMEs enhances competitiveness of entrepreneurs as follows;

- Easy connection and access to Push Email, Address Book, Calendar, Browser, BBM Chat and various Applications simply via BlackBerry.

- Security and speed of Emails and information assured by the BlackBerry Service standard.

- Receive corporate Emails and Free mails such as Hotmail and Gmail up to 10 accounts.

- Licensed to use Microsoft Exchange 2007, PCs and web browsers version as well as BlackBerry Enterprise Server.

- Low investment because no BlackBerry Enterprise Server installation required. (AIS will maintain the system.)

- Value rate, only 1,800 Baht per month for unlimited use and 1,400 Baht a month for 50 megabyte bandwidth

- Special package for AIS BlackBerry SMEs subscription, get the BlackBerry Curve 8520 for 18 installation of 2,199 Baht a month, coming with unlimited access.

The interested entrepreneurs may contact AIS Smart SMEs Call Center 1149 or visit www.smartsolutions.ais.co.th.

UMI TO INCREASE MOSAIC EXPORT FOCUS NEXT YEAR

       Union Mosaic Industry next year will increase its mosaic-tile export volume to cash in on its Asian competitors having slowed down or shut production after facing high labour costs.
       The company current exports 15 per cent of its production of ceramic tiles and mosaic, but the proportion will be boosted next year for mosaic.
       UMI chairman Paweena Laowiwatwong said yesterday that the production slowdown or shutdown of some mosaic manufacturers in Asia had presented the company with an opportunity to win more overseas orders.
       She said mosaic production was more labour intensive than ceramic-tile production, whereas the market was smaller. This had led to the closure of some tile and mosaic-makers.
       Many countries in the Middle East and other parts of Asia still offer demand for mosaic tiling , however.
       UMI's mosaic sales account for 6-7 per cent of its revenue, she said. Although demand is not high, the company still produces mosaic because it offers a better margin than ceramic tiles.
       She said the export outlook for its range next year should be brighter than this year's because of the global market recovery. UMI expects to enjoy export growth of 10 to 20 per cent. This year's exports have dropped by 10 per cent due to the economic crisis.
       UMI yesterday reported a third-quarter net profit of Bt61 million in the same perioed last year. Its net profit in the first nine months was Bt95.54 million, compared with a loss of Bt34.46 million over the same period last year.
       The company expects to turn a profit this year because of its focus on cost reduction and high-margin product development, Paweena said. It posted a loss of Bt115.23 million last year.
       She said the company targeted sales growth next year at 5 to 10 per cent, from expected revenue of Bt2.1 billion this year.
       "If we can maintain our gross profit margin at 20 per cent and enjoy stable oil and natural-gas prices, we believe the company will achieve sales growth," she added.
       The company's board is considering paying a diveidend to stakeholders for the first time in four years, she said.
       Paweena said the Thai Khemkhaeng project was a positive factor driving demand for tiling next year.
       UMI plans to run at 85-per-cent capacity in response the expected rise in domestic demand. It currently operates at 75 per cent.

OBTAINING SPECIFIC ANSWERS FROM STRATEGY

       In our third and final segment of the discussion regarding inputs from organisational strategy to supply chain management in general and Sales &Operations Planning (S&OP) in particular,we will discuss some specific examples that should be addressed in the context of a business algorithm.
       As we have been suggesting, the business strategy needs to be very clear and communicate with great specificity "how" it is intended to be executed.There is a place for brief, high-level summaries of visions and strategies but there must be substance behind those.
       In one case we experienced recently,a "Strategy on a Page" document gave a clear indication of the organisation's overall vision and the top-line financial objective of EBIT (earnings before interest and tax) growth rate but not much more.
       In the business algorithm, presented in the diagram, one can find the sorts of drivers that can more directly affect one than EBIT itself. These then lead us to the specific points that must be addressed and specified in an effective strategy.(This diagram, by the way, comes from some very nice work done by one of our clients in Australia.)
       Functions and personnel need more detail about things such as the following:
       What do we expect from core business and/or existing SKUs?
       What do we expect from new product development?
       What do we expect from business efficiencies and cost savings?
       Which segments or channels or the market do we expect to grow and therefore intend to invest in to achieve this goal?
       What factors should be considered as we generate gap closing initiatives?
       Volume increases are expected to come from where?
       What does being low-cost producer mean for manufacturing and across the supply chain?
       From where are we expecting cost reductions fromG&A?
       What are the terms for capital available and the restrictions?
       What are the specific growth targets by brand, business unit, channel and account?
       Exactly what are the performance targets across the business?
       How can we achieve alignment between resources, demand and opportunities?
       Are policies aligned with the strategy?How will we make customers knowledgeable regarding our strategy or policies?
       Is the strategy interpreted into the shorter term business plan accurately?
       What are the expectations regarding performance measures for aspects such as brand health and penetration, NPD contribution, budget control, resource productivity or success rates of NPIs.
       Of course, these are just the start of the sorts of specifics that are required to manage in this new, tighter, integrated way.
       As with the S&OP process itself, the documentation of the requirements can and should evolve in due course over the first months following implementation.
       Weekly Link is co-ordinated by Barry Elliott and Chris Catto-Smith CMC of the Institute of Management Consultants Thailand. It is intended to be an interactive forum for industry professionals; we welcome all input,questions, feedback and news at:bjelliott@abf1consulting.com cattoc@cmcthailand.org

THE IMPORTANCE OF TAX RISK MANAGEMENT

       Although we may be turning the corner on the economic downturn, the public still has lower purchasing power and businesses are facing a lower net profit,or even a net loss. Consequently, many companies are attempting to achieve the same goals: a reduction in expenses and an increase in liquidity. A possible strategy for them to consider in pursuit of these goals may be to go about obtaining a tax refund from the Revenue Department.
       Tax is an unavoidable expense that affects a company's cash flow and is generally applicable in all business transactions, including those that occur during periods of economic downturn.Examples of such transactions include expenses in respect of compensation paid to suppliers for order cancellation,sales promotions, employees' severance pay, as well as transactions related to mergers, acquisitions or even liquidation.In addition, accounting entries such as the write-off of accounts receivable or obsolete inventory, the setting up of provisions or accrued expenses and depreciation of a factory or machinery may have adverse tax implications if not handled correctly.
       No one wants to pay tax needlessly but many companies applying for tax refunds find that, after the resulting tax audit, they have to pay more tax than the original claim.
       As a result some companies forgo the right to claim refunds to avoid an audit,because of uncertainty as to whether or not their tax submission was prepared fully in compliance with the Revenue Code. We note, however, that one of the department's strategies includes the investigation of companies that do not claim tax refunds, based on the logic that they perhaps have something to hide.
       Tax risk is a significant business risk and should be managed properly regardless of whether a company chooses to pursue a tax refund or not. Tax risk assessment is an important part of good risk management. It can be likened to having an annual health check-up so that disease may be detected and treated at an early stage. The following checklist can help a company judge the extent of its tax risk:
       Complicated transactions, or transactions with a large number of suppliers and/or customers;
       Significant transactions with related companies;
       Tax risk assessment has never been performed before;
       Frequent changes in staff responsible for tax function;
       Risk taker (when unsure how to pay tax, chooses not to pay or pays the least possible);
       Tax tasks are assigned to staff with insufficient tax or legal knowledge;
       Poor or unsystematic maintenance of documentation supporting the tax filing;
       No tax manual or the tax manual is not maintained up-to-date, or there is a good manual but its procedures are not properly implemented;
       Late submission of tax, problems with audited financial statements or tax computation;
       Previous record of additional tax payments or the department's tax assessments.
       Some suggestions are provided below to be included among the procedures for handling tax risk management:
       Step 1) Tax risk assessment
       Regularly review tax compliance status to identify potential risk.
       Step 2) Solving problems
       Take timely corrective action to mitigate identified tax risks and minimise related tax liabilities.
       Step 3) Dealing with tax audit
       Understand the tax audit approach and the Revenue officers' point of view;
       Analyze the tax issues raised by the Revenue officers;
       Consider a strategy for dealing with the Revenue officers in order to speed up the tax refund process;
       Make available sufficient and reliable documentation to support the defence.
       Step 4) Implementing "Best Practice"
       Raise levels of awareness of tax procedures and compliance requirements;
       Put in place proper internal controls and referral systems in organisation;
       Make sure that every tax position taken is supported by a credible basis in law.
       Our experience suggests that the efficiency and ability of the tax department's investigations have improved significantly in recent years.Procedures are more thoughtful and information technology systems have been introduced to assist in retrieving tax documentation online from all over the country, including obtaining information from other government departments (e.g. customs duty and excise tax). Consequently, it is easier for today's Revenue officers to detect or identify any non-compliance by taxpayers.
       It is therefore time for companies to pay greater attention to the concept of tax risk management so that whenever a tax refund is claimed or the companies are visited by a Revenue officer, they will have confidence that no unexpected tax liability will be discovered.
       PricewaterhouseCoopers'11th annual Tax and Legal conference,"Redefining Success: Managing Tax through Turbulent Times - Maximize Shareholder Value through Effective Tax Planning 2010"takes place in Bangkok on 12 November 2009. To register, please visit www.pwc.com/th

WHAT IFRS WILL MEAN FOR YOUR BUSINESS

       Last year's financial crisis, which brought down some of the biggest names in world banking, and whose aftershocks have been felt in economies the world over, has a new scapegoat. Politicians and bankers, trying to deflect some of the blame, pointed the finger at accounting standards, the rules by which accountants must abide, claiming the huge losses incurred by the banks were only exacerbated by the accounting requirement to write down investments to the current market price, which had plummeted, in some cases to almost nothing.
       One year on and many are claiming that the "green shoots of recovery" are being seen. However, the shockwaves are still being felt. Moves are underway to make accounting simpler. There are calls for less reliance on the teams of specialist accountants that are needed to interpret the finer details of specific standards. Many, including some of the world's top CFOs, now think that financial statements have become too complex - voluminous, full of tables and data but with little in the way of clear explanation.
       Many readers also probably think that accounting used to be much simpler. Why have audit fees increased? Why value assets at market price when you have no intention to sell? Why can't we create reserves for the bad times in order to even out the profits over the long term, thus creating longer term stability? Accounting in Thailand is changing too and over the next three years or so, there will be similar debate locally.
       International Financial Reporting Standards, referred to as IFRS, make up the accounting and financial reporting framework that now is used in more than 100 countries around the world. Countries soon to adopt the system include India, Indonesia, Malaysia, and Korea with Thailand not too far behind. There is even a roadmap for convergence between US GAAP and IFRS, something that would have been unthinkable not that long ago due to fundamental differences in the accounting methodology between Europe and the US.
       IFRS are not perfect - far from it. There are flaws. As Sir David Tweedie, the IASB (International Accounting Standards Board - the body that sets the standards) chairman, is fond of remarking, he has yet to fly on an aircraft that is recorded on the balance sheet of an airline company. But it is accepted by most that what we have now is a big improvement on what we had before.
       It is a misconception to think that IFRS only affects listed companies. It has created the opportunity for countries that have not yet developed a financial reporting framework to quickly put in place a globally accepted set of standards that local companies can follow. Cambodia is a good example of a country where this has happened. In addition, the recently issued IFRS for Small- and Medium-Sized Entities offers a scaled-down, simpler and more cost-effective version that can only be of benefit to other developing countries who want to raise their accounting game.
       The benefits of a global set of high-quality accounting standards are considerable. Cross-border comparability increases access to additional capital markets around the world. Additional disclosure requirements improve the transparency of a company's activities. The performance of a company in Hong Kong now can be compared meaningfully with one in Germany. No longer is it necessary to decode local accounting practice when trying to understand company performance. This is a major advantage, not just for investors, but also for potential suppliers and customers.
       Despite criticisms that accounting has become over-complicated, IFRS are here to stay. The IASB is now in a phase of both revising existing standards and issuing new ones.
       We are moving towards a requirement for management to issue a commentary on the company performance and intentions, further enhancing the understanding, quality and usability of the financial statements.
       Although accounting has undergone significant changes in the last decade and there are more changes ahead, it now appears more likely than ever that the world eventually will be using a common set of standards.
       Jonathan Fryer is a UK Chartered Accountant working for Mazars Thailand.

ONLINE MARKETING IN CONSUMER-GENERATED TERRITORY

       Akey digimarketing theme is consumer participation.Consumers are no longer passive targets. They are active, engaged participants: enabled by digital media.All forms of consumer participation via digital media are on the rise. Nowhere is this consumer creativity more evident than on social networks: those sites such as Hi5, Facebook, LinkedIn, and others.
       Consumers' time:The latest Universal McCann global internet survey, estimates that almost two-thirds of "active internet users"(people using the internet at least every other day) spend time managing their social profiles. What's more, almost three-quarters of them report visiting friend's profiles. Social networks are consuming an increasing part of consumers' digital time: time that consumers are choosing not to spend on brand- or marketing-oriented websites.
       Tread carefully:Good marketers understand that keeping in touch with consumers means going where consumers are. As consumers use social networks, that's where marketers must go. But be cautious: social networks are consumer territory. They are built by consumers.
       Unlike TV soap operas - which were developed to sell soap and consumer goods - social networks were not created to sell. They have been designed to help consumers with similar interests to help each other. When marketers venture into social networks they must do so with humility, candour and a genuine desire to help - three traits that are unfortunately absent in many traditional marketers.
       Everyone is feeling their way in marketing effectively on social network sites. The more enlightened companies are finding a useful first step is to get management and staff involved in the networks, both as private individuals and as brand representatives.
       Other companies, with a more Luddite perspective, ban staff from accessing social networks at all. The internet security company ScanSafe reports that 76% of companies may be blocking access to social networks. Although you need to manage what your employees are doing on company time, effective social network marketing demands your people understand and experience those networks. That's the only way to acquire the authenticity that social network marketing demands.
       Monitor the flow:Take some time to look at just what is being said about your company, your product and your brands, and how it is being said. Different social networks have different tones of voice and different norms of behaviour.Marketers need to fit in.
       There are many tools - which are mostly free - that send you an e-mail when key words or phrases are used.The easiest is Google Alerts. Everyone should be running Google Alerts for personal names (put your name in quotes to get exact first and last name), and relevant company and brand names.For well-known companies and brands,it's advisable to add some context words to avoid being overwhelmed with results,or use paid services that provide filtering for you.
       Intervene gently and politely:Many marketers wonder what they should do when they find their brand being discussed. Listen and then think. Are these inaccurate comments, based on product misuse, or misunderstanding?Inaccuracies can be politely and authoritatively corrected using sound evidence - in the same tone you might use to a family member. Offer something positive in return. If the customer is using the product for a purpose other than that intended, and therefore finds it performs poorly, can we recommend the right product for them, even if it's made by a competitor? Can we offer a partial refund?
       Are the comments negative but correct? If so, it's better to confess and apologise. Remember the traditional customer service findings: empathy and apology, with the promise of systemic change to ensure the error is not repeated work wonders, converting complainants into brand advocates. We have already seen that the new digital media model pushes power to the consumer. A happy brand advocate can be an extremely powerful ally.
       Of course, sometimes, comments are positive and marketers can bask in reflected glory and offer thanks and hints of improvements to come.
       Abuse:Abusive, unfounded, and unsupported comments are often the hardest to deal with.
       Some marketers ignore them and hope that other consumers will read them for what they are: an abusive tone that is not persuasive. Ideally, other consumers will reply. If they don't, my feeling is that marketers should intervene to politely reject the abuse and show it's undeserved. Remember, an internet search will turn up everything. When search turns up abuse, it would be good to also see its refutation.
       Dr Ian Fenwick is an adviser and Senior Head of Administrative Programmes, at Sasin Graduate Institute of Business Administration.He recently co-authored (with Kent Wertime)DigiMarketing: The Essential Guide to New Marketing & Digital Media, Wiley,2008.This is now available in Thai and Mandarin also. You can reach Ian at Ian@DigiMarketingNow.com; website www.DigiMarketingNow.com; and follow him on Twitter www.twitter.com/DrIanFenwick

Kingdon's best crafts

       Great stuff handmade in rural corners all over the country are on sale at the October 10 Thai Craft Fair in the Jasmine City Building on Sukhumvit Soi 23.
       Shop for baskets, hand-woven silk, ceramics, hilltribe stichwork and recycled items and view the exhibition "Khon Lek Lek", featuring the amazing baskets of Montri Yimyean and his fellow weavers in Rayong, who've found a less harmful altfernative to factories and fishing.
       The fair is running from 10 to 5. Call (02)676 0636-8, extension 231,or visit www.ThaiCraft. org.

WASTE NOT WANTED

       Sunun Kittong truly has a profound passion for all kinds of orchids and has never allowed them to wither in front of his eyes.With his skilful strokes and keen eyes,however, he is able to capture the fascinating features of countless flora in full bloom onto his fabric bags.
       Though they lack the glitz when compared to other fashionable bags, his satchels serve a noble mission since they help reduce piles of imperishable garbage that is already choking the planet. Sunan doesn't have only one or two fabric bags but a lot. Unsurprisingly, his house is now completely devoid of the plastic ones most people collect during shopping trips.
       On top of that, he doesn't need to waste money buying new bags since his own holdalls are more durable and serve different purposes. When his destination is the market, Sunun picks up one that can withstand hard rigour. While going out on personal business, he resorts to another pouch decorated with zips and small pockets where he can keep his personal belongings safely.
       But things were totally different in the old days because he was quite happy carrying plastic bags around.
       "In those days my house was full of plastic bags since I'm a shopping maniac.I love to buy things, especially books. But now I put all my shopping in my fabric bags instead. And it seems that many shopkeepers are also happy when I tell them that I don't need plastic bags since they can save them for other customers,"he explained.
       But what makes him most proud is the fact that all the bags he carries around are the fruits of his labour and help serve his wish to safeguard the natural environment.
       Also his hand-made bags serve an extra role as silent ambassadors who indirectly inspire others to reduce and ultimately stop the use of plastic bags.
       "After seeing my bags, my friends often asked me to design one for them. Soon word spread far and wide and now many orders are flooding in. It makes me feel so good knowing that more people are starting to use fabric bags," said Sunun.
       By profession, Sunun is a landscape and garden designer but now he is happy to pursue his new interest as a fabric bag designer.
       According to Sunun, it all started three years ago when he saw a client carrying a fabric bag made from recycled cloth. His client told him he found plastic bags boring and that he got a lot more from a fabric one.This got Sunun thinking and led him to what he is doing now.
       "That customer inspired me to follow in his footsteps. One evening at the Night Bazaar in Chiang Mai, I spotted a lovely fabric bag so I bought it," he recalled.
       Sunun liked the versatility of fabric bags and their durability so much so he decided to design his own and create pieces that suited his own personal taste. All of his hand-made textile bags are eye-catching with pictures of graceful orchids of various species.
       "I have long been enthralled by orchids owing to their graceful beauty. When I first designed my own fabric bags, I wanted to express my interpretation of the queen of flowers," he said.
       So far, Sunun has designed more than 200 orchid-patterned bags and each one he creates is unique since it is painted by hand and no bag is identical.
       "I like to give the best thing I can craft to like-minded people who care about the critical situation regarding our natural environment. While my customers can be proud of their one-of-a-kind bags, I am proud of my work," he said.
       His bags are decorated to appeal to both men and women.
       "Bags with a colourful design attract more female customers while those with blackand-white tones are popular among men,"explained Sunun.
       Though he keeps more than 10 handmade fabric bags for himself, Sunun still fashions new ones from time to time because wear and tear does finally catch up with them.
       "I don't want to feel I'm creating more trash by using plastic ones. A fabric bag is so convenient since it can be easily washed and repaired. To me convenience and versatility are my prime concerns when it comes to my choice of bag," he said.
       Asked how one can help tackle global warming, Sunun emphasised that it must first start with people's attitudes.
       "We must raise awareness among Thais that plastic is a dangerous waste product. It can pose great harm to both the natural environment and people themselves. We should all bear in mind that we should be aware of what we do in life and not create any adverse impacts on our planet," he stressed.m
       Tips on how to design the right bag for the right job and maintain its durability
       Different styles of bags serve different purposes so before designing it ask yourself what kind of bag will serve your purpose
       If the bag is used to keep personal accessories like combs and powders, it should be small and the cloth used to fashion it can be something simple like a rag
       If the bag is to be used for shopping,thick cloth is required since it has to withstand heavy weights. It should also be quite big in size
       A white fabric bag is not an ideal choice since it is somewhat difficult to keep clean
       Apart from painting, patterns on the bag can include embroidery or simple hand-written wording
       Wash the bag from time to time,especially if it is frequently used
       Tips on how to design your own fabric bag:
       Materials 1. Undyed cloth or used cloth 2. Paper and pencil 3. Acrylic colours and a brush 4. Needle, thread, and scissors Instructions
       1. Roughly design the style and pattern of the bag you want
       2. Cut a piece of cloth in the desired shape
       3. Manually sew a bag in the desired design and size for those who want something natural or use a sewing machine for those who want neat needlework
       4. Make the handles of the bags and adjust their length to suit your needs
       5. Paint the desired pattern on the bag with the acrylic colours

Happy family retreat

       Art, dharma and nature have been packaged together in this atypical familyoriented retreat programme. For October 23 to 25, the Family Network Foundation is organising a special programme for 10 families where they will learn drawing skills from senior artist Phong Saeng-Ging, the head of Arsomsilp Institute of the Arts's Craftsmen House Community, Buddhism from Phra Paisal Visalo, and aspects of the traditional Thai way of life including rice cultivation,pottery, cooking Thai sweets and handicraft workshops.
       The three-day programme to be held at the Rose Garden Resort in Nakhon Pathom will be a great opportunity for family members to come together and learn more about themselves and how to bring harmony into their homes.
       The three-day programme is open to families with children 8 to 11 years of age. Cost is 1,000 baht per family (two to three persons). Call 02-954-2346/7,08-1773-9186 or 08-1351-6067.

Khao Kla plans SME fund next year to tap recovery

       Khao Kla Venture Capital plans to establish a new fund next year to support small enterprises due to the improving economy.
       The new venture capital fund would raise about 500 million baht next year,said Patamaporn Chaiyakool, managing director of Khao Kla Venture Capital Management Company. The new fund would invest in small and medium-sized enterprises with high growth potential.
       The fund would be similar to Khao Kla's existing K-SME Venture Capital fund, but would differ in features and investment policy.
       The new fund would allow other investors, who might not be required to have SME experience, to investment.
       "We want to create a new concept of venture capital fund to develop the business and openings for other investors to join the investment," she said.
       "The financial support would help to grow and strengthen local SMEs, particularly under the improving economic situation in next year."
       K-SME Venture Capital, a business unit of Kasikornbank under Khao Kla's management, allows the fund to hold a maximum share-stake of 50% of registered capital of each SME. The venture capital fund also requires at least a three year track record for each SME.
       The company's total investment portfolio is 173 million baht invested in 10 SMEs, five of which plan to list on the Market for Alternative Investment.
       Khao Kla, yesterday, signed a jointventure agreement with Zemasch Corporation Ltd to provide the SME with 19.95 million baht of financial support.
       Zemasch plans an initial public offering of shares totalling about 100-200 million baht on the MAI next year. Funds raised would be used for business expansion and developing new products.

TMB EXPECTS TO HIT 2009 SME LOAN TARGET

       TMB Bank expects to provide new loans of Bt30 billion for small and mediumsized enterprise banking in the current quarter in order to hit the SME outฌstandingloan target of Bt112 billion for the year.
       Sayam Prasitsirigul, chief SME bankฌing officer at TMB Bank, said outstanding SME loans currently stood at Bt83 billion, while the bank expected to expand its SME credit by 3 per cent from the end this year to Bt112 billion.
       It had previously expected to achieve only 8090 per cent of the outstanding-loan target.
       He said the economy would improve next year and that the SME market would therefore expand.
       However, competition in the SME banking market was still high in terms of pricing, creditline offering and quick service. That said, during a bad economic situation, every player will only look for good customers.
       Overall SME banking business this year has been mainly focused on refinancing, which will continue into next year as there are new players in the market.
       However, TMB is focused on workingcapital loans more than refinancing loans.
       Regarding the SME newloan target of Bt30 billion during the fourth quarter, the bank expects to gain one half from refiฌnancing and the remainder from new cusฌtomers.
       "Currently, the bank has SME loans of more than Bt10 billion pending approval," said Sayam.
       Meanwhile, TMB's SME banking nonperforming loans are above 10 per cent, but most of them are legacy loans from the past. The bank has gradually solved the NPL problem in SME banking by itself, without having to sell its NPLs.
       The bank offers credit lines for SME customers at three times the collateral value, with a minimum interest rate of the minimum overdraft rate minus 1.5 percentage points. The bank's MOR stands at 6.5 per cent.

       SME banking business this year has been mainly focused on refinancing, which will continue into next year as there are new players in the market.

SME Bank offering bills of exchange

       The Small and Medium Enterprise Development Bank of Thailand for the first time is offering bills of exchange to the public with the return set at a minimum of 1 per cent.
       "To raise funds from the public this year is our domestic funding source. And we want to reduce foreign borrowing," president Soros Sakornvisava said yesterday.
       The SME Bank's B/Es, which had been limited to institutional investors, would be from now on sold to individual investors.
       The three-, six- and 12-month B/Es offer a return of at least 1 per cent.
       The minimum purchase is Bt1 million.
       The B/Es can also be placed as collateral for the bank's loans, the bank said in a statement.
       B/E holders would be creditors of the bank.
       The return would reflect the nontransferrable nature of the debt instruments.
       This is an alternative investment for the public, corporations, merchants and institutional investors, he said.
       Saving with SME Bank is safe without risk and easy for money management, he said.
       Those who had retired from state agencies and individuals with savings who haven't decided to invest their money in any business could invest in the bank's B/Es.
       The new retail product is currently available at SME Bank's 95 branches nationwide.

SME BANK LENDING BT2.5 BN TO CREATE 50,000 FRANCHISES

       The Small and Medium Enterprises Development Bank of Thailand will provide loans worth a combined Bt2.5 billion to Thapisuj Foods Group's franchisees, with a view to creating 50,000 entrepreneur jobs around the country.
       Thapisuj Foods Group is the franchisor of Prikkareang pork noodles and grilled-pork meatballs.
       SME Bank president Soros Sakornvisava yesterday said he expected the Bt2.5 billion to be released to Thapisuj Foods Group's franchisees within six months.
       The Prikkareang franchise is the first such operation for which SME Bank has approved loans. The agreement is for Bt50,000 to be lent to each frachisee.
       Soros said SME Bank expected to enter into similar agreements with two other franchise businesses by the end of the year. The bank will focus on the food business as its main priority, as this type of activity is easy to access for people wanting to run their own enterprises, he added.
       The loan period is for a maximum of five years, while the interest rate will fall into one of two categories: 5 per cent for franchisees who are members of the Social Security Fund, and the minimum lending rate for others.
       Industry Minister Charnchai Chairungrueng said he backed SME Bank's venturing into this kind of lending, as food-business franchises were a good way to reduce the unemployment rate.
       Meanwhile, Labour Minister Phaithoon Kaeothong said the unemployment rate had declined to 500,000 from about 1 million people early this year, due to a resumption of recruitment in major industries such as automobiles and electronics.

Local wisdom through metal

       Both children and adults are invited to learn more about our local wisdom in the ancient times during the "Thai Wisdom Through Metal Crafts" exhibition, which is running at Phufa Treasure Trove on the 4th floor of Siam Paragon until the end of the year.
       Jointly organised by the Department of Archaeology, Faculty of Archaeology, Silpakorn University, the exhibition focuses more on metal crafts which can reflect our local wisdom in terms of how our ancestors 3,000 years ago managed to use fire to create such cultural objects.
       Samples of ancient and present metal objects as well as pictures of selected metal pieces and of metalworking activities are on display with the aim of providing the general public with the preliminary knowledge related to metal crafts in Thailand.
       Besides getting a bigger picture of the importance of local wisdom, visitors will learn about ancient metalworking in the Kingdom from the prehistoric periods to the present time.Examples of important archaeological sites related to ancient metal production in the country are also exhibited.RT
       The exhibition opens daily from 11am-7pm. Admission is free of charge. For more information, please contact Phufa Treasure Trove on 02-129-4556.

OIE ACTION PLAN AIMS TO BOOST SME COMPETITIVENESS

       The Office of Industrial Economics yesterday unveiled its 2010 action plan, which includes an early-warning system to strengthen the competitiveness of small- and medium-sized manufacturers.
       Director-general Arthit Wuthikaro said the OIE would allocate Bt435.2 million todeveloping the early-warning system, which would help manufacturers adjust their business plans two months in advance.
       "Our small- and medium-sized manufacturers have been seriously hurt by the economic crisis, because they lacked information that could have allowed them to adjust their business plans in time. This will help them weather future crises better," he said.
       The early-warning system will be implemented in seven industries: food, autos, textiles, electrical appliances and electronics, steel and other metals, plastics and machinery.
       The OIE will also draw up a road map for making the industrial sector competitive in the global market. It will include a plan to develop the Kingdom's mass transit and supporting industries, he said.
       "In the first step, we'll study possible alternatives and investment opportunities for developing mass transit in Thailand. Next we'll promote business networks between local parts-makers and foreign mass-transit developers, which will sustain local manufacturers in the long term," he said.
       Next year, the OIE plans to spend Bt249.7 million to continue improving manufacturers' productivity.
       In collaboration with nine institutes and research centres, the money will be used to create 18,455 skilled labourers and reduce production costs at 652 factories.
       The OIE will spend Bt78 million on "intelligent property" projects, which will include creation of seven new innovations in the coming year, Arthit said.

SME debt suspension proposed by Pradit

       Deputy Finance Minister Pradit Phataraprasit ordered the Fiscal Policy Office to study the possibility of suspending debts for clients of the SME Bank.
       The criteria for debtors is not clear,and a Finance Ministry source said it could face criticism as non-SME Bank customers could face disadvantages.
       Mr Pradit noted that the government already had some measures to help small businesses, such as urging state banks to lend more, relaxing qualifications and speeding loan approvals. The Finance Ministry has set a new lending target for state banks of 927 billion baht this year,up from 625 billion earlier.
       The Finance Ministry pushed the six state banks (Government Savings Bank,Bank for Agriculture and Agricultural Co-operatives, Government Housing Bank, SME Bank, Islamic Bank and Small Business Credit Guarantee Corporation (SBCGC)) to outline faster loan schemes.
       Loan applications are supposed to take between three and 21 days, depending on the type of loan and documents.Revolving credit up to 10 million baht is to be approved in five working days.
       The SBCGC has been asked to waive its guarantee fee of 1.75% for the first year while doubling the maximum guaranteed amount to 40 million baht.

OSMEP HEAD DETERMINED TO MODERNISE ORGANISATION

       The newly appointed director-general of the Office of Small and Medium Enterprises Promotion has expressed his determination to modernise the organisation into an effective solution provider for SMEs.
       "I see challenges in front of me. But I would like to upgrade Osmep into a high-performance organisation that really helps strengthen SMEs, the country's economic root, to survive in the tough global competitive environment," said Yutthasak Supasorn, who was previously executive director of the National Food Institute of Thailand.
       He said he would highlight Osmep's role as a policy-maker for SMEs, similar to the broader role played by the National Economic and Social Development Board. In addition, it will be the centre for allocating funds to all SMEs-related projects, but will not operate the projects by itself.
       He accepts that in some people's minds the image of Osmep has been one of an agency that is not sufficiently transparent, so he has set a priority to recreate its image with his "3Gs" strategies - good governance, good standard and good management.
       As regards Osmep's SME promotion strategies, he plans to divid them into three groups - micro enterprises, One Tambon One Product and SMEs in the real sector - since the division will enable it to establish the proper scheme models for each.
       "Personally, I also think there should be a deduction of corporate income tax for SMEs in order to enhance their investment ability. But it is still a long-term strategy, as I have to talk to many related parties," he said.
       Yutthasak does not believe such a tax reduction would reduce the government's revenue income. On the contrary, it should be able to collect more revenue if more SMEs enter the tax system and have a greater ability to expand their investment.
       In 2010, Osmep has been approved a budget of Bt266 billion for its general projects in promoting SMEs. He added that the agency would expand its overseas network to support the potential of SMEs to invest abroad, particularly in Southeast Asia, which will implement the Asean Free Trade Agreement next year and the Asean Economic Community by 2015.

REACHING OUT TO LOCAL COMMUNITIES

       At first glance, the shoe manufacturing factory of Lamsaiyong Population and Community Development Cooperative seems disorganised with work being done here and there. Yet, this factory is the life of the cooperative, as it makes sufficient profits for the cooperative's community activities and creates jobs for villagers.
       The she-parts manufacturing business generated a profit of Bt2.2 million in 2008 fiscal year ending March 31, compared to Bt118,763 in the previous year. In 1997, the profit was Bt2.4 million or 8.04 per cent of the Bt30-million revenue.
       "I don't know it we would make a profit this year, as orders are affected by the political turbulence and oil prices. Still, this helps meet our goal of creating jobs for the locals. I'm also now open to new ideas to strengthen the cooperative," chairman Yuan Manprakhon said.
       The 70-year-old chairman recelled the days prior to 1989 when tambon Lam Sai Yong in Nang Rong district was nearly deserted, like other places across the country, as young adults left the village and only the elderly and children remained.
       The village today is more lively and independent thanks to Lamsaiyong Population and Community Development Cooperative, which brought the factory to the village in 1992. The plant now generates the highest profit to the cooperative, which also extends farming loans, conducts crop-trading and receives deposits.
       "our focus then was how to help members' children, who had to leave the village, to find jobs. We must have something here so that they could stay hers," said Cooperative chairman Yuan Manprakhon. "Our original businesses - loan extension, fertiliser trading, crops trading, and deposits - could do little in easing unemployment."
       Yuan has been involve with the cooperative since 1989 when it was started. He recalled the cooperative's beginnings under the guidance of the Population and Community Development Association (PDA), which launched the Community-Based Integrated Rural Development Project (CBIRD)/Nang Rong in the district.
       The non-profit organisation first arrived in the district in the 1980s to strengthen local communities through traiining and activities to improve their health and living quality. When CBIRD's funding dried up, villagers scrambled to find out how to preserve the knowledge and stand on their own feet. The cooperative was established the same year, with 140 members who had to pay at least Bt50 for 5 shares. With a seed capital of only Bt7,000, the cooperative had limitations in its lending activities and paddy rice trading and first thought about turning the village into a business site.
       Bata Thailand showed them the light by offering free training to 10 staff, who returned to train others. With the staff ready, Btat transferred 35 sewing machines to the cooperative, which built up a plant on its own land with help from CBIRD's Bt150,000 financing.
       Shortly after that, the cooperative approached Bata to purchase the machine for Bt5.7 million, with borrowing from CBIRD. It repaid the debt a year ahead of schedule with profits from the factory, which mainly produces school shoe tops and para floor slippers for Bata and its marketing arm in Malaysia. The plant now employs 170 workers, down from 210 prior to the 1997 crisis. Ninety per cent of them are village residents and they all earn minimum wages plus social-security benefits.
       As of now, the cooperative has 746 shareholders, with a capitalk of Bt14 million. With the profits, it is creating a market for farmers' crops and has already bought a 1.5-rai plot near the existing office. To Yuan, the new land plot could accommodate a new factory or a shop where members' goods are displayed.
       "We have come this far because of the support of our members and CBIRD. We've never been short of help," Yuan strssed.
       CBIRD/NR is one of 18 centres nationwide of the PDA, founded by Mechai Viravaidya who is commonly known as the condom man and the CSR man. Since 1984, it has extended help to nearby villages under Mechai's philosophy that the poor are not beggars and they should not be offered freebies but instead be helped so that they can stand on their own feet.
       Prayom Promboot, the centre's chief, said the centre first focused on agricultural training and promoted knowledge in health, nutrition, environment and household industry for 40 villages in 13 Tambons with funding from the Canadian International Development Agency (CIDA).
       In cooperation with government agencies, the villagers later set up their own groups for different purposes like community savings, rice banks and fertiliser funds. For instance, in supporting the fertiliser funds, CBIRD/NR allocated 100 sacks of fertiliser to each group. In return for each sack, the group's members must repay with 11 buckets of rice. While nine buckets were taken as the fertiliser price, the fund kept two buckets. In the first year of operation, the fund collected 200 buckets or rice and later loaned the rice to needy villagers.
       Later, villagers in 13 tambons created cooperatives for higher bargaining power against middlemen when it comes to fertilisers, tools and crops pricing. The centre's coverage area was later expanded to cover 90 villages. A few cooperatives were shut down, however. One saw its fuel station transferred to an oil retailer while one had to shut down a cow milk project as it was redundant to the province's programme.
       "That's technical. The rest of them are doing fine and getting stronger. That's in line with our policy to make villagers stand on their own feet," Prayom said.
       Under the centre's guidance, female villagers in Nong Ta Kai are creating a cooperative to sell silk fabrics, with some selected for Thai Craft's showroom in Bangkok. Like Lam Sai Yong, some companies set up factories in other villages.
       To cash in on the growing sense of corporate social responsibility (CSR), PDA recently introduced a new programme to match companies engaged in good deeds with poor villages, with focus mainly on forest, chemical residues and water.
       "We have 27 backers making a combined donation of Bt29 million for 33 villages," said Prahat Tafong, field director of the village development partnership project that kicked off in 2007.
       The donors include Maitree Trust Fund, Novartis, Thai Beverage, Citigroup and British Chamber of Commerce. Their fund swill be allocated to villages for development, which costs Bt2,500 per head. For sustainability, each village will manage the fund through an organisation with 32 members who will decide how the funds are to be used for income generation, environment, education/youth, and health/the elderly.
       The donors can propose ideas for the villages in formulating development plans. To Prahat, this will ensure their partnership and local community sustainability.
       In his interview earlier, Mechai said there's no government in the world that can deliver everything to its citizens. Social contribution, like giving out money, won't help as it will not create new knowledge or enhance the poor's energy and ability. Worse, it teaches them to ask for free things.
       "The poor don't have the chance to obtain loans at market rates. Businessman can give them ideas and provide the loans, to help them stand on their own feet."

German aid body changes tack

       The Thai-German Institute will try another tactic to achieve its goal of promoting the use of advanced technology in small- and medium-sized plants by approaching top executives and business owners.
       "Earlier, we focused on developing staff at the operating level, but the plants still failed to adopt knowledge in doing business. So we will change to enhancing the business skills of executives and owners instead," TGI director Narong Varongkriengkrai said yesterday.
       Local small- and medium-sized manufacturers have not given enough importance to improving their production technology, he said.
       "Even though we boost the skills of the workforce to work with new, advanced technologies, it will mean nothing unless executives see the need to make the investment and move their companies to high-value production," he said.
       TGI will focus on the electrical appliances, electronics and automobile industries, he said.
       Damri Sukhotanang, permanent secretary of the Industry Ministry, said small- and medium-sized manufacturers cannot produce value-added products as targeted due mainly to the lack of technology.
       Those manufacturers also need to pay more attention to packaging design, which will be another way to add more value to their products.
       "The Industry Ministry's departments and related institutes such as TGI and the Thailand Productivity Institute have to work in unison and give priority to upgrading original-equipment manufacturers to original-design manufacturers," he said.
       The Industry Ministry approved a budget of Bt142 million for TGI to provide 50 training courses for technicians and engineers in the mould industry.
       Vice Industry Minister Sorayud Petchtrakul said the mould industry was one of the important basic industries, supporting many industries including automobiles, machinery and printing.
       "One main problem is that we are short of skilled technicians and engineers to support the rapid changing of technologies. If our mould industry is weak, those hi-tech countries including Japan will not look favourably on continuing to invest here," he added.

Companies utilise social sciences to fill tech jobs

       The sprawling use of consumer technology is spurring the demand for new skills in the workplace, resulting in companies utilising social sciences to fill next-generation technology jobs, according to Gartner, Inc.
       Gartner, Inc vice president and distinguished analyst, Kathy Harris said during the next five years, consumer adoption of technology will accelerate as individuals and groups become more comfortable and adept at using it to manage their family, social, and business relationships. Meanwhile, organisations will struggle to keep pace as they integrate rapidly changing behaviours and technology into an already established business culture and infrastructure.
       To succeed in "consumerising" corporate technology, organisations will need new talent and skills that blend a deep understanding of the business, artistic talents in visual and social schemes that induce the desired behaviours and reactions from consumers' including expansive knowledge of how to invoke and leverage the power of Web technology and models.
       "Many emerging jobs and roles will not simply specialise in one skill area,but will blend business, artistic and technical skills. Many of the needed technical capabilities originate in the social sciences and are aimed at usability and adoption of technology-related business services," Harris said.
       These capabilities embody the notion of "action at the interface" between the enterprise and its markets or between business management and technology management.
       Therefore, organisations are likely to shift the responsibility for leveraging technology outside centralised IT organisations and into the business units responsible for growth and innovation of revenue, products, and services.
       The company sees four new roles in technology related jobs. The first is Web user experience roles to effectively consume the applications and information delivered on the Web.
       These roles range from user interface designers enabling users to work standalone or to self-serve without assistance,virtual-assistant designers who create Web beings that replicate the actions of a human being in providing agent services on the Web and interaction directors who produce Web conversations among multiple people or between people and Web beings in a structured Web environment.
       The second, behavioural analysis roles are aimed at understanding and exploiting human behaviour on the Web and how it may mirror and differ from behaviours in the physical world.
       Some key roles that will interpret and leverage human behaviour are Web psychologists who are becoming increasingly important to product development and marketing, community designers who are responsible for architecting organisation-owned communities, and Web and social network miners and analysts who focus on discovering, understanding and exploiting the social and behavioural dynamics of Web communities.
       The third is information specialists who trace the origin, history and evolution of Web content. Their objectives range from providing the history of content or information to spotting fraudulent or modified images, audio files and texts.Information anthropologists may therefore contribute to legal analysis or to processes where intellectual property or information quality and integrity are at risk.
       The fourth, digital lifestyle experts will aid individuals and groups (for example, executive management, technology or marketing teams) to become more digitally aware, connected, effective, and sophisticated. A digital lifestyle expert may also assist or stand in for their clients in their Web endeavours - defining target digital profiles, building out a digital image or personal brand - as well as helping wired users achieve the digital status they aspire to. As such, key roles will include digital personal consultants and personal brand advisers.
       "The future is solidly connected to the Web and new work streams clearly need to arise to support this," said Harris.

Joint venture to boost Thai SMEs online

       The Commerce Ministry has teamed up with Google and Sripatum University to boost electronic transactions by SMEs for tapping new customers and increasing sales in the domestic and global markets.
       As a part of the business stimulus package, the program is offered to SMEs with free of charge website development and online marketing training.
       Google offers 2,500 baht worth of free credits to start an online marketing campaign with Google AdWords, the brief four line text ads which show up as "Sponsored Links" at the top or right side of the results page when users conduct a Google search.
       Sripatum University will develop website and translation of the first page in English at no cost for those who don't have a website. The offer applies to the first 400 SMEs.
       According to Pornthip Kongchun,Thailand Marketing Manager of Google Asia Pacific, the Internet is a great opportunity for SMEs to expand their market, locally and across the world.
       Citing Internet World Stats, Pornthip said the world's Internet population today is at 1.6 billion mark with more than 200 million new people coming online each year. There are over 60 billion searches conducted on the Internet worldwide per month and over a billion people around the world search on Google for information everyday. In Thailand, there are some 14 million Internet users.
       Google AdWords platform reaches out to over 73 percent of the world's Internet population and over a billion online users everyday.
       Prapon Milintajinda, secretary to the commerce minister, said Thailand's export value has declined month by month,while e-commerce can help increase some 20 percent of sales revenue to SMEs. The collaboration of the three parties will be an effective channel for Thai SMEs to reach customers worldwide.
       As the government body, the ministry will do matching between the SMEs with customers. The program will encourage local SMEs to find new customers and market their products and services to overseas clients.
       The program is valid from now to October 31,2009 and SMEs can sign up for joining the program at www.google.co.th/sme2009. Rachaneeporn Phudyaporn Phukkaman, Sripatum president noted that the success of the program can be recognised by the transaction deals of those SMEs website.

Perceptions matter for SMEs

       The personal characteristics of small business owners are a major determinant to their success in Thailand, says Siriporn Allapach, a lecturer at the International College of Suan Sunandha Rajabhat University.
       Her study on factors influencing the success of small enterprises in central Bangkok focused on employee viewpoints and indicated that business owners must have certain characteristics that benefit small enterprises, while other factors including market orientation,business process and strategic intelligence are only part of the formula for success.
       Therefore, she says, employers must assume the responsibility to recognise,address, and correct flawed character-istics and personal traits.
       Future entrepreneurs should pay close attention to perceptions or biases, and particularly to those of their employees,prospective customers and competitors,in order to increase firm efficiency.
       The study found that by identifying and developing desirable characteristics,entrepreneurs can foster a strong corporate climate.
       Entrepreneurs who focus on their positive characteristics are able to identify alternatives and plan for the future which should lead to improved performance,compared to less forward-thinking individuals.
       Entrepreneurs in small enterprises should recognise the impact of personal characteristics on their ability to manage a small team of employees or they risk losing a competitive advantage over larger competitors with strong foundations and stable management teams.
       In general terms, small, family-run businesses with minimal structure and strategic outlook face a greater risk of failure if they are unable to make efficient use of self-perception and preferenceindicated characteristics.
       Dr Siriporn said small enterprises are the backbone of Thailand's economy so studying their success factors should benefit new entrepreneurs. The study also finds small enterprises have common characteristics: a hierarchy in administration, family-style management, seniority, a single decision maker, and a lack of investment in human capital.

Creating jobs with local crafts

       Leather handicrafts in Ban Kung Namwon village, in Ratchaburi province, proves commercial success is not dependent on government handouts.
       The village, famous for its leather goods made under the One Tambon One Product (Otop) brand, has earned a domestic and international reputation for quality craftsmanship and its range of products, which include handbags, wallets, key rings, belts, and mobile phone covers.
       The fact that the products are all handmade is a key selling point.
       "Our concept is we don't let the market dictate what products we should make," said Somkiat Sermpanya, who started in business with his neighbours five years ago.
       The quality handiwork creates products which easily catch the eyes of buyers, he said.
       "They are not run-of-the-mill items," he said.
       The process is also low cost and generates employment. Employees labour at work stations and not on an assembly line.
       "I don't depend on a local development fund," Mr Somkiat said, referring to the state-allocated budget to spur jobs and improve the livelihood of locals.
       "Though some local politicians offered some help with my business in return for votes, I said:'I can stand on my own two feet, thank you very much'," he said.
       Quality is the core differentiator that sets the villages products apart from the competitions.
       The appeal of Ban Kung Namwon products draws visitors, including foreign tourists.
       However, Mr Somkiat said he had to take risks and persevere before his products were recognised by the Otop office.
       During the first year of operations he thought his business would fail as his products were unattractive. But after scouting for local talent,he found people with exceptional leatherworking skills.
       His firm, which started with just a few craftsmen, now employs a host of skilled hands from local families.
       The work earns them a reasonable income and helps give local youths employment opportunities without having to leave home to work, Mr Somkiat said.

Carver turns trash into cash

       Phayao's creative entrepreneur Jidapa 'Toi'Mingkwan has made a windfall from her coconut creations, writes Sai-arun Pinaduang
       It is remarkable how someone with a vibrant imagination can take what most people regard as trash and transform supposedly worthless discards into creative products.A walk around the backyard of a onestorey house in the sleepy Ruang Thong community in Phayao's Chun district, reveals an open wooden rice barn. Next to it lay piles of dried coconut shells and finished products crafted from what was once considered rubbish.
       Close by, a middle-aged woman is busy cutting and carving coconut shells into various shapes.She is surrounded by numerous containers of dried coconuts, and judging from the quantity of the husks she has, her work won't be finished anytime soon.
       Jidapa "Toi" Mingkwan, 46, turns off the roaring cutting machine before she starts discussing her signature products, which she has proudly tagged "Coconut Shells of Phayao: A Thai Product of Local Wisdom".
       She explains how simple observations set her off on a journey of creative recycling.
       "There were two coconut trees in front of my house. Ripe and dried-up coconuts kept falling down one after another just to end up as garbage.One day I asked my dad what to do with those coconuts to get some value from them," says Ms Jidapa.
       She and her father spent some time working out how to make cash from the discarded nuts.
       Before long, however, they started cutting the shells into pieces of different shapes and sizes which they could then make into key chains,hairpins and earrings.
       Ms Jidapa says she always gives her imagination a free rein when cutting and carving the shells.
       And her creations show what someone with creative flair and ingenuity can achieve with a material most people think can only be used to fuel a cooking fire.
       What began as a hobby became a serious job in 2007 when she expanded her product line to include piggy banks, dolls, lamps, and candle holders.
       Her latest creations include incense containers shaped like a Native American's head - a design she plans to patent.
       Since the first day she picked up a dried coconut and made a commercial product from it, Ms Jidapa has come up with a large variety of impressively designed craftware.
       One day she thought it was time to see how her creations would fare against other people's products, so she signed up for a local Otop competition. Her products won awards from the Community Development Department in 2007 and 2008.
       "I have my own booths to display my products at various fairs held in the province. I also join fairs elsewhere whenever I have time," she says."I also attract customers at the Chatuchak market in Bangkok. They like my products which can be used to decorate spas and resort hotels."
       Among her best-selling products are scented candle holders made from coconut shells and colourful decorative lamps, says Ms Jidapa.
       The prices of her products range from 10 to 600 baht apiece. Cheaper items include key chains, hairpins and earrings. In the medium range are piggy banks priced 100 to 200 baht each. Larger items such as lamps cost 400 to 600 baht each.
       Ms Jidapa says she has received large orders from export companies.
       "I have orders from the company that exports scented products to the Middle East, especially to Dubai in the United Arab Emirates.
       "It is important that the products are chemicalfree and look natural," she says."They must be made from polished coconut shells only and show their true colour and texture. Seams can be decorated slightly with woven hyacinth threads."
       The first big order she received was for 600 candle holders priced at 20 baht each.
       As demand soon outstripped locally available raw materials, Ms Jidapa began buying coconut shells from outside her village.
       "There are coconut trees in the compound of most houses in the North. When local children knew that I needed dried coconuts, they kept bringing them to sell to me. I buy dried coconuts at 1 to 2 baht apiece," she says.
       Even rotten coconuts can be used as long as the shells are not tainted.
       Ms Jidapa also goes out to buy coconut shells herself and often uses the occasion to advertise her products.
       Turning coconuts into useful items not onl y creates value, she says, it is also an environmentally friendly way to make money, reduce garbage, and put oneself through all the physical and mental exercises that comes with the work.

From the Pacific to the Andes

       What do you do when you want to learn about a faraway country without having to fly there? Consulting Lonely Planet might take too long to give the whole picture of a territory,while the ever-popular Google could make you more confused with too many sites to plough through.
       Each country has unique tales to tell the world and the best evidence to verify the stories can be found in ancient objects like old maps, historical documents and archive films - mostly wellkept by its own people.
       To find out about the cultural side, however, a collection of artefacts can reflect how rich a country's cultural heritage is and also its people's way of life in earlier days - to some extent yet in an aesthetic atmosphere.
       Currently on display for the first time ever in the Kingdom are dozens of reproduced antique artefacts and handicrafts from Chile.Presented by the Embassy of the Republic of Chile, the "Chile...Infinite Latitudes Exhibition @ The Emporium" aims to mark the country's 199th year of independence as well as to tighten the diplomatic relationship between the two countries.
       Besides bringing Chilean cultural heritage to Thai people through the exquisite items of different civilisations dating back thousands of years, a set of 30 photographs are also exhibited to reveal Chile's geographical diversity.
       Captured by famous photographer Olivier Michaud, the pictures portray breathtaking landscapes of all parts of this South American country - an experience for Thais without the hassle of travel.

SUPPLIERS TARGET INDOCHINA VIA MEDICAL FAIR THAILAND

       Foreign medical equipment makers have joined the 4th Medical Fair Thailand to boost sales and seek local distributors to help them penetrate the Indochina market.
       More than 250 exhibitors from 20 countries exhibited their products at the fair, which was organised by Messe Dusseldorf Asia and ran from Wednesday until today.
       Thomas Missine, representative of Cypress Diagnostics, a Belgium-based laboratory equipment manufacturer, said the firm was interested in the Thai market, mainly because the government was aiming to turn the country into a regional medical hub. Cypress Diagnostics has already entered Indonesia, the Philippines and Vietnam.
       The company's target is to sell medical products to small and medium-sized laboratories and also win local distributors at the fair.
       Sandeep Kumar, general manager of Rehab Asia, a leading rehabilitation product provider in Singapore, said this was the first time the company has tried entering Thailand. The company is well established in Singapore and Malaysia.
       Kumar said Rehab Asia had not done well during the first quarter due to the global recession, though business is starting to pick up in the third quarter.
       "We hope the fair will help us get new orders and clients," he said.
       Rehab Asia expects its revenue this year to grow by 20 per cent from US$1.5 million (Bt50.67 million) last year.
       Michael Pang, managing director of Winner SG, a Singapore-based wheelchair manufacturer which invented the world's first wireless wheelchair, said the product was introduced in the Singapore market a few months ago and this is the first time this innovation has been exhibited in the region.
       "After this, we will introduce the wheelchair in Japan and the US," he said.
       Like Cypress Diagnostics and Rehab Asia, Winner SG too is seeking distributors and new business opportunities in Indochina and Europe.
       The Singaporean government spent 20 million Singapore dollars (Bt477.53 million) to fund the development of Winner SG's wheelchair.
       Udom Hongchatikul, managing director of Thai 3B Scientific, a Thai-German joint venture, said the company is looking for new opportunities at the fair.
       The company, which was set up in Bangkok by its German parent 3B Scientific two years ago, produces anatomical models for use in medical schools.

JAPANESE INVESTORS WILL STAY PUT

       Japanese investors yesterday insisted they had no plans to relocate to other countries despite having had to postpone many investment projects due to the financial crisis.
       "Most parent companies in Japan have adjusted their investment plans, not only in Thailand, but around the world. This is the main reason for the lower investment this year. We expect to expand our investment after the crisis is over," said Yo Jitsujakata, president of the Japan Chamber of Commerce in Bangkok.
       A chamber survey of 1,300 Japanese firms found they would continue investing here, because Thailand was the most important base in Asia.
       Although Japanese direct investment in the Kingdom has fallen, the decline is less than in other countries, he said.
       Toyota Motor Thailand president Kyoichi Tanada paid a visit to Deputy Prime Minister Korbsak Sabhavasu, asking for the government's help to boost purchasing power and relax capital-control regulations to support Toyota's transfer of its regional centre from Singapore to Thailand.
       A source present at the meeting said Toyota called for measures to promote pickup demand, which would benefit the economy, because the industry involved numerous parts manufacturers.
       Specialised financial institutions were encouraged to guarantee down payments.
       Toyota operates three plants and a research-and-development centre in Thailand.
       Jitsujakata said Japan was willing to cooperate with Thailand in technology transfers and skill development.
       "To lure foreign direct investment, Thailand needs to show a clear policy in investment promotion and also communicate with foreign investors, particularly SMEs, about what Thailand will throw its support to," he said.
       The chamber's survey showed the greatest concern for Japanese firms, 90 per cent of which are SMEs, was liquidity shortage.
       The Small and Medium Enterprise Development Bank was urged to ease its lending criteria.
       Board of Investment secretary-general Atchaka Sibunruang Brimble said her agency had explained the updated environmental rules and regulations for the Map Ta Phut Industrial Estate to the Japanese investors.
       Nippon Steel and JFE Steel have submitted letters of intent to build steel furnaces, but their plans have been stalled for two years, because of the government's slow process in exploring the location and the public's environmental concerns.
       Thailand needs the upstream steel smelter to secure a supply of raw materials for downstream manufacturers and reduce the risk of price fluctuations, which is the main factor in worsening competitiveness in many industries, including autos, construction and electronics, she said.

THE SWEET TASTE OF SUCCESS

       Witthaya Wasukraipaisarn (Aun) is a national celebrity. He is renowned as an actor in television dramas and in commercials. He has also featured in several music videos. Some of his recent projects, include Sab Phu Sa, a television drama, a Chevrolet Zafira commercial and Fung Hua Jai Tua Eng, a Masha Wattanaphanitch music video. Now, Witthaya has branched out by starting a new business, called "Coco Custard", a dessert cafeteria.
       From celebrity to entrepreneur
       Being an actor has its ups and downs. Although they get a high salary, their shelf-life tends to be quite short. One day they are in great demand, then the phone doesn't ring as frequently and finally the phone stays quiet. Witthaya knows this scenario all to well.
       "Right now, I don't have a major project on. Who knows when the next big role will land on my doorstep. A little while back I came to the conclusion that I need to secure my long-term future," he said.
       Consequently, Witthaya decided to open a shop. A family-run custard cafe sprang to mind because his grandmother can make heavenly Thai coconut custard (sang ka ya), using an old traditional Thai recipe.
       The actor understands that starting a cafe of this sort is not just about mouthwatering tastes. It also requires good planning and preparation just like other businesses. Buying equipment, production costs and pricing are among a large number of factors that he needs to consider.
       "You know, starting a new business is a big deal. I did some research to collect data. It's not easy to access all the information I required to open your own dessert cafe. I had to come up with a name, decide on what equipment is required and how to get the best employees blah, blah. I did everything myself," he said.
       Simply irresistible
       At Witthaya's cafe, people will be spoiled for choice by a wide selection of delectable treats. Custard, his signature, is perfect for a snack paired with steamed bread. The cafe also serves toast topped with a wide assortment of sauces, including chocolate, strawberry, pineapple as well as margarine and sugar, etc.
       Customers can also stop at the cafe to quench their thirst. A long list of cold beverages is on offer. Iced coffee and tea, iced strawberry milk and Italian soda are among the choices. Iced banana and coco milk are the most popular items.
       "At the beginning, we offered custard and bread only, but we have significantly increased the number of items," he said.
       Prices are quite low when compared to other places. Custard and bread starts at 50 baht and iced drinks are at 30 baht.
       "I believe reasonably priced products, of a high quality, attract customers," the star said.
       Financial projections
       Witthaya says that cost is the main factor in a business operation. Entrepreneurs will find that their enterprises will prosper or die depending on how they control the cost of their operation. For him, keeping the expenses down is the secret to his success. By doing so, he makes enough money to stay in business and earn a profit even though it's a small one at the moment.
       He saves money, for example, by purchasing ingredients such as eggs, coconut milk and sugar in bulk at stores nearby. The stores also provide free delivery which also helps keep costs down.
       "I get wholesale prices, which are much cheaper than going to supermarkets. Car mileage is a definite cost factor with a home-operated cafe. The superstar also admitted that it doesn't pay to be too cheap when it comes to initial investment. For instance, he tried to design the shop's logo himself but was told by family and friends that his own design wasn't good enough.
       "What I learned was that it pays to invest more in getting an expert to come up with things like an elegantly designed logo. It helped boost the image of my cafe," he pointed out.
       Location
       Witthaya had good luck in terms of location. His family owns the building where the cafe is located and as a result, there are no rental charges.
       The building was originally a dental clinic. It was then completely renovated and redecorated. In addition, the cafe is situated in a busy area with other businesses, schools and transport links close-by. It is only a stone's throw from Huay Kwang's subway station. This he feels can help attract a larger customer base.
       "The main drawback to our location is that we don't have parking space for customers. They have to park in the opposite soi," he said.
       Marketing products
       Wonderful smells wafting from the kitchen alone cannot guarantee his business will thrive - advertising the place is another important concern.
       "Originally, I thought word of mouth would be enough to attract customers. But I was absolutely wrong," Witthaya said.
       He was recently on a television talk show which he used to plug his new cafe. Soon after his cafe became very busy, especially between 5pm and 6pm. In particular, the place is very popular amongst teenagers and elderly people.
       "The media can make a big difference. It can provide such a positive boost in getting a business off the ground," he admitted.
       Competition
       The growth of bakeries and dessert cafes has mushroomed all around the country. Competition in this field has therefore become quite intense. Witthaya has decided not to go head-to-head with them. On the contrary, he has laid emphasis on making his business different in some way. He's chosen to make sure his products differ from those of his competitors.
       Witthaya insists on using only the finest ingredients, particularly fresh coconut milk. His custard has no preservatives or flour added. This is what makes the custard always fresh and creamy.
       "Our cafe is air-conditioned and stylishly furnished in vivid colours which creates a warm and friendly atmosphere. I believe these qualities make our shop a preferred choice amongst customers," he said.
       More than money
       With his moderately priced menu, Witthaya said he and his family did not set out to get rich. He said he will be quite satisfied as long as his little home enterprise guarantees his day-to-day survival.
       Witthaya's mother takes care of the kitchen, while his father, with many years of experience in his electrical appliance business, serves as a consultant. His sister usually visits the cafe in the evening after work to lend a hand. Witthaya, himself, drops by from time to time to make sure staff members are providing good service for customers.
       He says his sweetmeat business means more to him than money. He said he has gained a great deal of knowledge, important skills and practical experience. It also makes him think about how to tackle problems when they arise and how to overcome challenges.
       "As soon as I began this enterprise, I felt a sense of achievement. The time spent learning ways to survive have paid dividends. I am happy seeing repeat customers in the shop. I take great pride that myself and my family have started all this from scratch and is something that we completely own and control," he concluded.