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.
Monday, September 28, 2009
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.
"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."
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.
"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.
Thursday, September 24, 2009
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.
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.
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.
Tuesday, September 22, 2009
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.
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.
Sunday, September 20, 2009
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.
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.
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.
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.
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.
"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.
Wednesday, September 16, 2009
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.
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.
OTOP PRODUCERS, SMES PENETRATE LAOS
The Industrial Promotion Department and the Otop Thailand Association will lead 100 One Tambon One Product and SME operators to Laos in a bid to promote their products.
The move is aimed at offsetting shrinking domestic sales.
Association chairman Sakda Siridechakul yesterday said the operators would promote their products at a Thai-Lao handicraft festival that will run between next Tuesday and September 27.
"This event will serve as a channel for Thai SMEs and Otop producters to sell their wares internationally. We expect no less than US$600,000 [Bt20.25 million] worth of orders from the event," he said.
He listed dried seafood, herbal and spa products, souvenirs and garments as potential products for the Lao market.
"We want to penetrate Laos because its gross domestic product is expected to grow 3.4 per cent this year, thanks to the country's resilience in the face of the global economic crisis.
Laos will also host the 25th Southeast Asian Games this year, whcih should attract more visitors and give its tourism industry a boost," Sakda said.
He said Vietnam and Malaysia were already beginning to enter the Lao market, and so Thai operators must act quickly.
The move is aimed at offsetting shrinking domestic sales.
Association chairman Sakda Siridechakul yesterday said the operators would promote their products at a Thai-Lao handicraft festival that will run between next Tuesday and September 27.
"This event will serve as a channel for Thai SMEs and Otop producters to sell their wares internationally. We expect no less than US$600,000 [Bt20.25 million] worth of orders from the event," he said.
He listed dried seafood, herbal and spa products, souvenirs and garments as potential products for the Lao market.
"We want to penetrate Laos because its gross domestic product is expected to grow 3.4 per cent this year, thanks to the country's resilience in the face of the global economic crisis.
Laos will also host the 25th Southeast Asian Games this year, whcih should attract more visitors and give its tourism industry a boost," Sakda said.
He said Vietnam and Malaysia were already beginning to enter the Lao market, and so Thai operators must act quickly.
Tuesday, September 15, 2009
Approval sought for "Creative Thailand"
The Commerce Ministry is seeking cabinet approval for its "Creative Thailand"project which calls for about 20 billion baht to be spent on boosting the value of local products and making themmajor foreign exchange earners.
The project will be implemented by the Creative Thailand Committee, which will be chaired by Prime Minister Abhisit Vejjajiva. The committee will be made up of government ministers and representatives from the private sector, said Deputy Commerce Minister Alongkorn Ponlaboot, who will be a member and secretary of the committee.
Mr Alongkorn will also chair a subcommittee responsible for considering and approving projects for financial support from the government.
The creative economy concept would add value to local products and services,said Mr Alongkorn, who was confident the project would double revenues from creative products to 1.8 trillion baht within three years.
The project will be implemented by the Creative Thailand Committee, which will be chaired by Prime Minister Abhisit Vejjajiva. The committee will be made up of government ministers and representatives from the private sector, said Deputy Commerce Minister Alongkorn Ponlaboot, who will be a member and secretary of the committee.
Mr Alongkorn will also chair a subcommittee responsible for considering and approving projects for financial support from the government.
The creative economy concept would add value to local products and services,said Mr Alongkorn, who was confident the project would double revenues from creative products to 1.8 trillion baht within three years.
Sunday, September 13, 2009
THE CHALLENGE OF FAMILY TIES
While the illness of Apple founder and CEO Steve Jobs has spooked Wall Street, similar concerns can be found among Thai investors over the future of family-run business in which they have invested.
"There is fear over the power transition to the second and third generations of family firms, who may or may not be as competitive as their predecessor,"said Suvabha Charoenying, managing director of Thanachart Securities.
The majority of listed companies in Thailand are still considered family businesses in fact if not in style. Many of them have been core economic agents for industrial and financial development for decades.
Family businesses account for about 80% of companies listed on the Stock Exchange of Thailand. Well-known family firms or groups include the Chirathivat family's Central Group, the Sophonpanich family's Bangkok Bank,the Lamsam family's Kasikornbank and the Sarasin family's Thainamthip.
Family firms in this case means businesses that were set up by an individual family which still has considerable influence on the organisation regardless of current ownership proportion.
"The core values of family businesses are good in many ways, but we would want to see a strong transition [of a new generation] in listed companies,"Ms Suvabha said.
Family businesses' weak points such as internal family conflicts need to be curbed or eliminated through the involvement of more outside managerial professionals when recruiting, she said.
Yupana Wiwattanakantang, professor at the Institute of Economic Research at Japan's Hitotsubashi University, said many Thai and Asian business leaders still chose to have their sons or daughters to run their businesses rather than non-family members, which limits the pool of potential talent.
"Problems are also that the talent or the skill sets of their parents are not always passed on to their children or what we call the 'idiot son' syndrome,"said Prof Yupana.
She said inferior managerial capabilities among second or third generations tend to emerge because the children have been spoiled with everything prepared for by their parents.
"It is often the case that the founders or the first generation don't want to let go until they are too old or too ill to handle the firm, then they would start training the next generation which is quite late already," Prof Yupana said.
Therefore, she said, successful transition should start with early planning of who will be the successor, accompanied by early and constant training.
Prof Yupana said many Japanese family firms, such as that of the Mitsui family, have lasted for many generations because there were more successor choices besides blood heirs.
"The Japanese firms solve the problems of passing on assets by using nonblood heirs such as sons-in-law or adopted sons if their children are not competent enough to run the company,"she said.
"They also go for outsiders as professional managers, such as what Toyota Motors did or even choose to give up their companies, like the Morita family's Sony."
Ms Suvabha said that although there should be less fraud within a family business as the reputation of the family name is at stake, the misuse of money for personal interests is still a challenge.
"What people fear is that family members might use the company's money like their own family money, such as changing cars every two or three years,"she said.
"There is fear over the power transition to the second and third generations of family firms, who may or may not be as competitive as their predecessor,"said Suvabha Charoenying, managing director of Thanachart Securities.
The majority of listed companies in Thailand are still considered family businesses in fact if not in style. Many of them have been core economic agents for industrial and financial development for decades.
Family businesses account for about 80% of companies listed on the Stock Exchange of Thailand. Well-known family firms or groups include the Chirathivat family's Central Group, the Sophonpanich family's Bangkok Bank,the Lamsam family's Kasikornbank and the Sarasin family's Thainamthip.
Family firms in this case means businesses that were set up by an individual family which still has considerable influence on the organisation regardless of current ownership proportion.
"The core values of family businesses are good in many ways, but we would want to see a strong transition [of a new generation] in listed companies,"Ms Suvabha said.
Family businesses' weak points such as internal family conflicts need to be curbed or eliminated through the involvement of more outside managerial professionals when recruiting, she said.
Yupana Wiwattanakantang, professor at the Institute of Economic Research at Japan's Hitotsubashi University, said many Thai and Asian business leaders still chose to have their sons or daughters to run their businesses rather than non-family members, which limits the pool of potential talent.
"Problems are also that the talent or the skill sets of their parents are not always passed on to their children or what we call the 'idiot son' syndrome,"said Prof Yupana.
She said inferior managerial capabilities among second or third generations tend to emerge because the children have been spoiled with everything prepared for by their parents.
"It is often the case that the founders or the first generation don't want to let go until they are too old or too ill to handle the firm, then they would start training the next generation which is quite late already," Prof Yupana said.
Therefore, she said, successful transition should start with early planning of who will be the successor, accompanied by early and constant training.
Prof Yupana said many Japanese family firms, such as that of the Mitsui family, have lasted for many generations because there were more successor choices besides blood heirs.
"The Japanese firms solve the problems of passing on assets by using nonblood heirs such as sons-in-law or adopted sons if their children are not competent enough to run the company,"she said.
"They also go for outsiders as professional managers, such as what Toyota Motors did or even choose to give up their companies, like the Morita family's Sony."
Ms Suvabha said that although there should be less fraud within a family business as the reputation of the family name is at stake, the misuse of money for personal interests is still a challenge.
"What people fear is that family members might use the company's money like their own family money, such as changing cars every two or three years,"she said.
Saturday, September 12, 2009
Intrade Malaysia to boost Thai SMEs
"We are merely providing an additional marketing option for Asean SMEs, as well as larger companies, to,among others, boost intraAsean trade DATO' HUSNI ZAI YAACOB Malaysian Ambassador to Thailand
Locally based small and medium-sized industries looking to tap the Malaysian market should head to the upcoming Intrade Malaysia 2009 convention, says the country's ambassador to Thailand,Dato' Husni Zai Yaacob.
"The event will provide an integrated marketing platform for the regional and global trading community to buy and sell Asean products and services," he told the Bangkok Post by e-mail.The annual Intrade Malaysia trade fair is currently in its third year and will be held from Nov 10-12 at the Matrade Exhibition and Convention Centre in Kuala Lumpur.
The general trade exhibition will provide an opportunity for companies, especially SMEs, both in Malaysia and the region to present their products and services to the international market.
The event drew 300 companies in its first year and generated 3.38 billion ringgit (33 billion baht) in potential sales of products and services . Despite the onset of the financial crisis last year, Intrade Malaysia drew 350 companies and generated potential sales of 2.6 billion ringgit.
"Intrade Malaysia 2009 is expected to help sustain and generate export revenues as previous years," he said.
The initial space of 3,000 square metres has been booked, prompting the organ-isers to increase the space by another 20% to boost participation by foreign firms, said Mr Yaacob.
Intrade Malaysia is one of the region's largest international SME trade fairs, he says. The exhibition allows smaller firms to showcase their products and services more effectively than at events that are tailored towards larger operators.
"We are merely providing an additional marketing option for Asean SMEs as well as larger companies to, among others, boost intra-Asean trade," he said.
Thai SMEs which cannot bear the cost of overseas promotions should rely on events such as Intrade Malaysia which attract international buyers, he said.
The ambassador said Thai companies could hence benefit from the fair on several levels. Those aiming to generate sales can become exhibitors which will allow them to also participate in the Kuala Lumpur International Trade Forum. Those Thai exhibitors will not only get access to the trade visitors but also the quality foreign buyers that will be invited to attend the exhibition.
Companies seeking business prospects can use the event as a platform to establish new contacts and increase their exports both to the region and beyond.
"While we are not able to guarantee sales for all exhibitors, please rest assured Matrade will take all necessary steps to promote Intrade Malaysia 2009, both locally and overseas, to the business and trade communities," he said.
"Alternatively, Thai companies which wish to source can be involved in the buyers' programme."
The trade exhibition will also serve companies looking to source products and services from Malaysian firms. Buyers will come from a number of sectors and markets such as regional buyers and those representing retailers and hypermarkets from the European Union, the United States and other companies based in Thailand, he said. Multilevel marketing companies, importers, wholesalers, construction firms, assemblers and man-
facturers will also attend.
Operators from Thailand's key export industries, such as food, textiles, jewellery and wood are encouraged to join.
The trade fair will be key in boosting bilateral trade.
"Asean has concluded negotiations on free trade agreements with China,Korea, Japan, India, Australia and New Zealand. These FTAs have provided the impetus for the creation of strong business networks within this region," he said.
Interested companies can contact Matrade Bangkok, the Malaysian Embassy,02-629-6800 or e-mail bangkok@Matrade.gov.my
Locally based small and medium-sized industries looking to tap the Malaysian market should head to the upcoming Intrade Malaysia 2009 convention, says the country's ambassador to Thailand,Dato' Husni Zai Yaacob.
"The event will provide an integrated marketing platform for the regional and global trading community to buy and sell Asean products and services," he told the Bangkok Post by e-mail.The annual Intrade Malaysia trade fair is currently in its third year and will be held from Nov 10-12 at the Matrade Exhibition and Convention Centre in Kuala Lumpur.
The general trade exhibition will provide an opportunity for companies, especially SMEs, both in Malaysia and the region to present their products and services to the international market.
The event drew 300 companies in its first year and generated 3.38 billion ringgit (33 billion baht) in potential sales of products and services . Despite the onset of the financial crisis last year, Intrade Malaysia drew 350 companies and generated potential sales of 2.6 billion ringgit.
"Intrade Malaysia 2009 is expected to help sustain and generate export revenues as previous years," he said.
The initial space of 3,000 square metres has been booked, prompting the organ-isers to increase the space by another 20% to boost participation by foreign firms, said Mr Yaacob.
Intrade Malaysia is one of the region's largest international SME trade fairs, he says. The exhibition allows smaller firms to showcase their products and services more effectively than at events that are tailored towards larger operators.
"We are merely providing an additional marketing option for Asean SMEs as well as larger companies to, among others, boost intra-Asean trade," he said.
Thai SMEs which cannot bear the cost of overseas promotions should rely on events such as Intrade Malaysia which attract international buyers, he said.
The ambassador said Thai companies could hence benefit from the fair on several levels. Those aiming to generate sales can become exhibitors which will allow them to also participate in the Kuala Lumpur International Trade Forum. Those Thai exhibitors will not only get access to the trade visitors but also the quality foreign buyers that will be invited to attend the exhibition.
Companies seeking business prospects can use the event as a platform to establish new contacts and increase their exports both to the region and beyond.
"While we are not able to guarantee sales for all exhibitors, please rest assured Matrade will take all necessary steps to promote Intrade Malaysia 2009, both locally and overseas, to the business and trade communities," he said.
"Alternatively, Thai companies which wish to source can be involved in the buyers' programme."
The trade exhibition will also serve companies looking to source products and services from Malaysian firms. Buyers will come from a number of sectors and markets such as regional buyers and those representing retailers and hypermarkets from the European Union, the United States and other companies based in Thailand, he said. Multilevel marketing companies, importers, wholesalers, construction firms, assemblers and man-
facturers will also attend.
Operators from Thailand's key export industries, such as food, textiles, jewellery and wood are encouraged to join.
The trade fair will be key in boosting bilateral trade.
"Asean has concluded negotiations on free trade agreements with China,Korea, Japan, India, Australia and New Zealand. These FTAs have provided the impetus for the creation of strong business networks within this region," he said.
Interested companies can contact Matrade Bangkok, the Malaysian Embassy,02-629-6800 or e-mail bangkok@Matrade.gov.my
Friday, September 11, 2009
COMPANIES TOLD TO THINK OUT OF THE BOX
It is great time for the business community to apply corporate sustainability in their business plans at this time of economic downturn, Donald Fisher, executive director and CEO of Mid-South Quality/Productivity Centre, based in Memphis, Tennessee, said yesterday.
"Corporate sustainability will give them strategic direction to win back the business. It helps you focus the way you do business and improve your competitiveness globally," he said.
By implementing a corporate sustainability plan, businesses need to think out of the box and be creative. The plan also allows enterprises to develop their strategic direction and plan for the organisation to cope with the new world economy.
Corporate sustainability for an organisation is the practice of measuring, disclosing and being accountable to internal and external shareholders for organisational performance to wards the goal of sustainable development.
Sustainability reporting is a broad term considered synonymous with others used to describe reporting on economic, environmental and social impacts. A corporate sustainability report should provide a balanced and reasonable representation of the organisation's sustainability performance-including both positive and negative contributions and results.
Corporate sustainability reporting can be used by any organisation for benchmarking and assessing its sustainability performance against notable global organisations with respect to laws, norms, codes, performance standards and voluntary initiatives.
Fisher said corporate sustain-ability is gathering a lot of interest globally. Many businesses around the world have already merged their corporate sustainability plan into their annual report.
Corporate sustainability has to be a aligned with the way they do business, he said.
"Corporate sustainability is the trend of the future. It is not only helping companies to increase sales and reduce operating costs, but also to enhance their brand reputation and market value. It helps increase profit margins by operating better," ha said.
To cope with the trend of global station, entrepreneurs need to apply a corporate sustainability plan by addressing the "triple bottom line," which includes paying close attention to their economic (financial factors), environmental (risk/requirement factors) and social (human factors) issues.
SMEs would clearly benefit by developing corporate sustainability plans for their organisations. They will strategically benefit when they self-assess their organisation internally and identify critical economic, environmental and social issues.
Their key bottom-line economic, environmental and social benefits and impacts will be realised when they use their findings to identify and develop short-and longer term strategic plans and directions for their enterprise that will provide both the data and information bedded to map out a strategic vision and plan that addresses both short-and longer-term directions that will ensure ongoing corporate sustain-ability withing their operations.
"The corporate sustain-ability/social responbitity global initiative is much more than a fad. Corporate sustainability is of utmost importance for the survival of organisations and future generations worldwide.
"Organisations' product/service offerings and vendor networks are globally interconnected and are being recognised by such groups as the World Economic Forum, which holds an annual global conference in Davos, Switzerland and recognises the Global Most Sustainable Corporations in the world," he added.
"Corporate sustainability will give them strategic direction to win back the business. It helps you focus the way you do business and improve your competitiveness globally," he said.
By implementing a corporate sustainability plan, businesses need to think out of the box and be creative. The plan also allows enterprises to develop their strategic direction and plan for the organisation to cope with the new world economy.
Corporate sustainability for an organisation is the practice of measuring, disclosing and being accountable to internal and external shareholders for organisational performance to wards the goal of sustainable development.
Sustainability reporting is a broad term considered synonymous with others used to describe reporting on economic, environmental and social impacts. A corporate sustainability report should provide a balanced and reasonable representation of the organisation's sustainability performance-including both positive and negative contributions and results.
Corporate sustainability reporting can be used by any organisation for benchmarking and assessing its sustainability performance against notable global organisations with respect to laws, norms, codes, performance standards and voluntary initiatives.
Fisher said corporate sustain-ability is gathering a lot of interest globally. Many businesses around the world have already merged their corporate sustainability plan into their annual report.
Corporate sustainability has to be a aligned with the way they do business, he said.
"Corporate sustainability is the trend of the future. It is not only helping companies to increase sales and reduce operating costs, but also to enhance their brand reputation and market value. It helps increase profit margins by operating better," ha said.
To cope with the trend of global station, entrepreneurs need to apply a corporate sustainability plan by addressing the "triple bottom line," which includes paying close attention to their economic (financial factors), environmental (risk/requirement factors) and social (human factors) issues.
SMEs would clearly benefit by developing corporate sustainability plans for their organisations. They will strategically benefit when they self-assess their organisation internally and identify critical economic, environmental and social issues.
Their key bottom-line economic, environmental and social benefits and impacts will be realised when they use their findings to identify and develop short-and longer term strategic plans and directions for their enterprise that will provide both the data and information bedded to map out a strategic vision and plan that addresses both short-and longer-term directions that will ensure ongoing corporate sustain-ability withing their operations.
"The corporate sustain-ability/social responbitity global initiative is much more than a fad. Corporate sustainability is of utmost importance for the survival of organisations and future generations worldwide.
"Organisations' product/service offerings and vendor networks are globally interconnected and are being recognised by such groups as the World Economic Forum, which holds an annual global conference in Davos, Switzerland and recognises the Global Most Sustainable Corporations in the world," he added.
Tuesday, September 8, 2009
Thailand bids to lead world in outsourcing
Thailand has set an ambitious target to become one of the world's top three countries for outsourcing by 2013, building a 4-billion-baht industry and forming an outsourcing association.
The kingdom's potential to capture opportunities as an attractive international IT outsourcing destination has led the driving industries to form the Thai IT Outsourcing Association, or TITO, said association chairman Steven Kalayanamit. The association is comprised of 10 pioneering international outsourcing companies.
According to a recent study,"Global Services Location Index 2009" by AT Kearney, Thailand ranks number four worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support, following India, China and Malaysia, which have retained the top three spots since 2004. However, Steven believes that unifying IT outsourcing companies into "One Nation, One Com-pany" and offering unique, specialised skills will help Thailand surpass Malaysia at in number three by 2013.
Currently, there is no formal figure to show the scale of IT outsourcing in Thailand but rough estimates suggest a range of 800 million to 1.5 billon baht,with an average project value of 300 million baht. Within the next two years,the market should reach 4-5 billion baht.
"Thailand's attributes lie in its high talent level and good resources within a friendly business environment ,but there is still a need to boost confidence and awareness among the target market."
He added that "Within the next three months, the association will launch a web portal to facilitate searches and business matching by using short video clips to introduce each members including business matching."
There is a great demand for outsourcing in the world market, with the industry expected to be worth $1.4 trillion (47 trillion baht) by the end of this year.
Therefore there is no need to focus on generating new business, so the association is seeking to promote Thailand's capabilities and high valuefor-money to the existing market.
In the short term, Thailand can start with animation and digital content outsourcing, which fits in with Thailand's creativity profile, and others fields such as database management outsourcing services, accounting business process outsourcing and COBOL programming and development outsourcing.
In the long term, intelligent business outsourcing is an interesting area because there is a growing demand for customisation in this field, but it takes time to train new skill resources.
Hintendra Patil, Chief Operating Officer of Saraff Infotech, an accounting and taxing business outsourcing service located in Bangkok, said joining this association will help the company find more new customers and local subcontracting partners for its services to the US market.
"Thailand may not be the cheapest cost location but the accuracy and quality of services here help us to be competitive. However, high speed bandwidth and reasonable costs are important issues to address to strengthen Thailand's outsourcing capabilities because it is critical to the infrastructure of outsourcing services," he said.
Software Industry Promotion Agency (Sipa) director Rungreung Limshoopati-pha added that Thailand has flexibility and creativity as outstanding points in its outsourcing portfolio , along with the Government's policy to build a creative economy through its "Creative Thailand" strategy.
The government can play a role in facilitating business matching with international customers to increase confidence in outsourcing providers and setting standards or a methodology for outsourcing contracts.
This year has seen a lot of success for Thailand in the outsourcing field, with contracts ranging from accounting business processes,TV animation series and biometric-related services to medicalrelated services generating business worth more than 1 billion baht
An emerging service is COBOL programming outsourcing for the banking in Europe market, which, while still in need of maintenance, can boast a skills resource in Thailand of some 1,000 professionals.
"Over the next three to six months,Sipa will support the retraining of 200 COBOL developers.
"This should help to convince foreign investors to consider basing their outsourcing operations in Thailand," Rungreung concluded.
The kingdom's potential to capture opportunities as an attractive international IT outsourcing destination has led the driving industries to form the Thai IT Outsourcing Association, or TITO, said association chairman Steven Kalayanamit. The association is comprised of 10 pioneering international outsourcing companies.
According to a recent study,"Global Services Location Index 2009" by AT Kearney, Thailand ranks number four worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support, following India, China and Malaysia, which have retained the top three spots since 2004. However, Steven believes that unifying IT outsourcing companies into "One Nation, One Com-pany" and offering unique, specialised skills will help Thailand surpass Malaysia at in number three by 2013.
Currently, there is no formal figure to show the scale of IT outsourcing in Thailand but rough estimates suggest a range of 800 million to 1.5 billon baht,with an average project value of 300 million baht. Within the next two years,the market should reach 4-5 billion baht.
"Thailand's attributes lie in its high talent level and good resources within a friendly business environment ,but there is still a need to boost confidence and awareness among the target market."
He added that "Within the next three months, the association will launch a web portal to facilitate searches and business matching by using short video clips to introduce each members including business matching."
There is a great demand for outsourcing in the world market, with the industry expected to be worth $1.4 trillion (47 trillion baht) by the end of this year.
Therefore there is no need to focus on generating new business, so the association is seeking to promote Thailand's capabilities and high valuefor-money to the existing market.
In the short term, Thailand can start with animation and digital content outsourcing, which fits in with Thailand's creativity profile, and others fields such as database management outsourcing services, accounting business process outsourcing and COBOL programming and development outsourcing.
In the long term, intelligent business outsourcing is an interesting area because there is a growing demand for customisation in this field, but it takes time to train new skill resources.
Hintendra Patil, Chief Operating Officer of Saraff Infotech, an accounting and taxing business outsourcing service located in Bangkok, said joining this association will help the company find more new customers and local subcontracting partners for its services to the US market.
"Thailand may not be the cheapest cost location but the accuracy and quality of services here help us to be competitive. However, high speed bandwidth and reasonable costs are important issues to address to strengthen Thailand's outsourcing capabilities because it is critical to the infrastructure of outsourcing services," he said.
Software Industry Promotion Agency (Sipa) director Rungreung Limshoopati-pha added that Thailand has flexibility and creativity as outstanding points in its outsourcing portfolio , along with the Government's policy to build a creative economy through its "Creative Thailand" strategy.
The government can play a role in facilitating business matching with international customers to increase confidence in outsourcing providers and setting standards or a methodology for outsourcing contracts.
This year has seen a lot of success for Thailand in the outsourcing field, with contracts ranging from accounting business processes,TV animation series and biometric-related services to medicalrelated services generating business worth more than 1 billion baht
An emerging service is COBOL programming outsourcing for the banking in Europe market, which, while still in need of maintenance, can boast a skills resource in Thailand of some 1,000 professionals.
"Over the next three to six months,Sipa will support the retraining of 200 COBOL developers.
"This should help to convince foreign investors to consider basing their outsourcing operations in Thailand," Rungreung concluded.
Monday, September 7, 2009
PACKAGE "LACKS STRATEGIC PLANNING"
The governament's Bt1.43-trillion Thai khemkhaeng (Invest for Strength) second stimulus package would possibly haul the economy back on track but would do nothing to enhance its long-termproductivity or competitiveness, economists warned yesterday.
"It is not launched baxed on strategic planning and is not a package. It doesn't and is not a package. It doesn't solve problems in terms of quality and structure so it has no power to promote Thai Khemakhaeng in the medium and long-term," said Pattamawadee Suzuki, head of the Policy Watch group of lecturers at Thammasat University.
The programme sholud have a clear target and direction of development. It should also be introduced based on the country's weaknesses and vision in order to make the plan the best, the group sais in a statement.
It is unclear that the programme would be able to generate enough revenue to pay publict debt, which is expected to reach 60 per cent or more of gross domestic product.
The Cabinet approved the second stimulus package on May 6, in order to boost the economy and employment, and sharpen competitiveness in the long run. It consists of 13 plans under 19 organisations.
Pattamawadee, who is also the dean of Thammasat's economics faceulty, said the programme covered important aspects of develoopment that the country needed, including transportation, irrigation, energy and education.
Of the Bt1.06 trillion worth of development projects approved, 31.27 per cent or about Bt300 billion is for transportation, 21.1 per cent for agriculture and water resource, 14.68 per cent for energy, 12.16 per cent education and 9.22 per cent for public health, The scheme was needed to boost the economy, which was expected to follow a U-shaped road to recovery. It also kept alive other projects that have been in the pipeline for years, Pattamawadee said.
It would build up backbone infrastructure such as mass transit and irrigation systems, and new projects like the creative economy, but lacks a clear direction and targets, particularly for the creative economy, he said.
It could not support the Kingdom's vision - self-dependency, good immunity, increasing efficiency and development dispersion - and address its weakness, he said.
The country depended heavily on exports and oil imports while the educational system's quality was low. the infrastructure in the agricultural sector was insufficient and its productivity was minimal. The country has also invested sparesely on research and development, leaving yawning social and economic gaps. The second stimulus package has ignored alternativeenergy projects despite the energy plan absorbing up to Bt100 billion of the total investment. The Kingdom's energy expense reaches 80 per cent of the 2009 budget, he added.
Praipol Koomsub, an economics lecturer and member of the group, said half of the transportation projects were for road development while the rest was distributed to mass transit and railway systems, leaving nothing for water transportation.
Some road projects were not practical while four lines of rapid transit were too much just for commuters in Bangkok.
"The budget for mass transit should be spent on alternative energy instead," he said.
Pattamwadee said the goverment had no development plan for OTOP and promotions for SMEs. It gave the Industry Ministry only about Bt2 billion under the stimulus package, and provided financial assistance via only recapitalisation of state-run banks.
The second stimulus package could not enhance efficiaency for transportation,education and the agricultural secotr. Although money was allocated to irrigation projects, the total irrigated area would hardly be expanded.
The irrigated area is currently about 23 per cent of the total agricultural area, indicating that most farmland had no access to a supply of water.
"The irrigation projects mostly involve existing water resource management, with the existing budget," he said.
Praipol said the economy needed to expand 5 per cent on average over the next three years of the programme so the government could pay the debts incurred by the programme.
Politicial instability could dampen sentiment and economic momentum. The principle of the programme should continue despite any political change, he added.
"It is not launched baxed on strategic planning and is not a package. It doesn't and is not a package. It doesn't solve problems in terms of quality and structure so it has no power to promote Thai Khemakhaeng in the medium and long-term," said Pattamawadee Suzuki, head of the Policy Watch group of lecturers at Thammasat University.
The programme sholud have a clear target and direction of development. It should also be introduced based on the country's weaknesses and vision in order to make the plan the best, the group sais in a statement.
It is unclear that the programme would be able to generate enough revenue to pay publict debt, which is expected to reach 60 per cent or more of gross domestic product.
The Cabinet approved the second stimulus package on May 6, in order to boost the economy and employment, and sharpen competitiveness in the long run. It consists of 13 plans under 19 organisations.
Pattamawadee, who is also the dean of Thammasat's economics faceulty, said the programme covered important aspects of develoopment that the country needed, including transportation, irrigation, energy and education.
Of the Bt1.06 trillion worth of development projects approved, 31.27 per cent or about Bt300 billion is for transportation, 21.1 per cent for agriculture and water resource, 14.68 per cent for energy, 12.16 per cent education and 9.22 per cent for public health, The scheme was needed to boost the economy, which was expected to follow a U-shaped road to recovery. It also kept alive other projects that have been in the pipeline for years, Pattamawadee said.
It would build up backbone infrastructure such as mass transit and irrigation systems, and new projects like the creative economy, but lacks a clear direction and targets, particularly for the creative economy, he said.
It could not support the Kingdom's vision - self-dependency, good immunity, increasing efficiency and development dispersion - and address its weakness, he said.
The country depended heavily on exports and oil imports while the educational system's quality was low. the infrastructure in the agricultural sector was insufficient and its productivity was minimal. The country has also invested sparesely on research and development, leaving yawning social and economic gaps. The second stimulus package has ignored alternativeenergy projects despite the energy plan absorbing up to Bt100 billion of the total investment. The Kingdom's energy expense reaches 80 per cent of the 2009 budget, he added.
Praipol Koomsub, an economics lecturer and member of the group, said half of the transportation projects were for road development while the rest was distributed to mass transit and railway systems, leaving nothing for water transportation.
Some road projects were not practical while four lines of rapid transit were too much just for commuters in Bangkok.
"The budget for mass transit should be spent on alternative energy instead," he said.
Pattamwadee said the goverment had no development plan for OTOP and promotions for SMEs. It gave the Industry Ministry only about Bt2 billion under the stimulus package, and provided financial assistance via only recapitalisation of state-run banks.
The second stimulus package could not enhance efficiaency for transportation,education and the agricultural secotr. Although money was allocated to irrigation projects, the total irrigated area would hardly be expanded.
The irrigated area is currently about 23 per cent of the total agricultural area, indicating that most farmland had no access to a supply of water.
"The irrigation projects mostly involve existing water resource management, with the existing budget," he said.
Praipol said the economy needed to expand 5 per cent on average over the next three years of the programme so the government could pay the debts incurred by the programme.
Politicial instability could dampen sentiment and economic momentum. The principle of the programme should continue despite any political change, he added.
Sunday, September 6, 2009
TWEETING FOR FUN AND PROFIT
Revolution in messaging has businesses studying how to harness the reach of Twitter to build brands and bottom lines.
By Chadamas Chinmaneevong and Komsan Tortermvasana
"Marketing through Twitter must be done seriously and continuously; otherwise, a brand will be at risk. At least, there must be a tweet a day NATHIDA RATTHANAWUT FOUNDER, MARKETINGOOPS
""Twitter can turn crisis into opportunity if you manage it right,"WOODY MILINTHAJINDA TV PERSONALITY AND TWEETER
You may have heard of Twitter but how well do you know it?People may think that Twitter is for messaging. That is partly right. In fact, you can also use this social network to promote your business and even yourself free of charge.
It's no surprise, then, that Twitter has become very popular very rapidly.Many big companies, such as Starbucks Coffee worldwide, and Thai firms, including Central Department Store and the property developer Sansiri Plc, are also using social networks as a marketing tool to communicate with their customers directly.
Basically, Twitter is a social network and microblogging service used to broadcast comments and message people in short form. Users can "tweet"short text (not more than than 140 words)updates to their Followers and receive updates from people they are following.It is a one-to-many broadcast system that has attracted massive publicity and traffic ever since celebrities such as Oprah Winfrey began to discover its power. One of the world heavyweights on Twitter is actor Ashton Kutcher he has 3.4 million followers but is only following 215 people.
In Thailand, Twitter only began to take off a few months ago when fugitive former prime minister Thaksin Shinawatra began using it to keep in touch with his ardent followers.
Nathida Ratthanawut, the founder of the MarketingOops website, said many well-known people such as politicians, singers, and TV hosts were now using Twitter to communicate with people in their networks. It also allows business enterprises to publicise their movements, launch promotional campaigns,directly communicate with customers and build their brands as well.
Marketers and advertisers are expected to rush to embrace Twitter but to date the knowledge of how to apply it in the marketing context is limited and successful case studies are not widely distributed.
"Marketing through Twitter must be done seriously and continuously; otherwise, a brand will be at risk. At least,there must be a tweet a day. Good and useful information can attract followers,"Ms Nathida said.
According to Comscore, a marketing research company that provides marketing data and services to many of the internet's largest businesses, the number of Twitter users grew by 95% in March to 19.1 million - that's not one year's growth but one month.
The most recent data for July showed 51.6 million users visited Twitter.com.In Thailand, there are more than 120,000 users who are mostly aged 20-30 years.Statistics from Alexa.com show that Twitter.com is ranked 43rd among the most popular websites in Thailand.
With the rapid growth of users worldwide and in Thailand, there is no doubt that Twitter will be a convincing channel where creative marketers, as well as advertisers, will look to develop effective and connecting advertising communications, Ms Nathida added.
At present, more than 30 companies in Thailand are using Twitter as a marketing tool but enterprises may need experts to advise them on the right ap-proaches to take with this new medium.
For example, V Australia launched a marketing campaign by sending three "mates" to Los Angeles for "The Ultimate 72 Hours". The catch was that they were required to use Twitter to tweet every minute that they were there - all 4,320- to win round-the-world plane tickets.
Twitter is also popular with media businesses including news agencies.Tweets from such sources (including the Bangkok Post ) come with links to the full stories on their websites.(Long web addresses are not a problem in the 140-character world of Twitter, which uses Bit-ly, a URL shortener, to make them bite-sized.)
Ms Nathida said the number of corporate users of Twitter would probably double this year.
In some countries, half of Twitter members use Twitter on smartphones,a trend that is certain to grow in Thailand as smartphone prices come down. Mobile usage could become the norm if 3G mobile broadband services become available locally.
"To me, I think Twitter is great tool for building personal brands. I believe that many big music companies will use Twitter as their marketing tool to promote their artists to fans," said Ms Nathida.
Thanyawat Chaitrakul, managing editor of MKT Magazine and an expert in brand management, said social networking and its power to reach individuals could not be ignored by marketing executives.
Traditional media were now under threat by new social media, he said.Anyone can now create his or her own brand and reach a global audience.
"This is a change from the earlier pattern in which celebrities typically were 'shaped' from TV or radio appearances," Mr Thanyawat said.
He cited the example of Sukree or @sukree in Twitter. A computer programmer, Sukree was among the first Twitter users locally and now ranks among the most popular Thai tweeters.
It's not unusual now for companies to seek out people with a large number of followers on Twitter (or friends on Facebook, for that matter) and offer them rewards to help promote brands to their followers, tweet by tweet.
But Mr Thanyawat said that promoting brands by having prominent, popular posters advertise products and services could be dangerous.
A product that failed to meet with expectations would generate instant feedback and backlash. Similarly, web icons risk their own reputations if it was found that they received compensation to tweet products or services that people didn't like.
In any case, the power of social networking is too large to ignore, and companies would be wise to develop a strategy in how to monitor and manage their brands through the internet.
Woody Milinthajinda, a leading television moderator and owner of Woody Born to Talk on Modernine TV, said he began using Twitter just last February and it had now become part of his daily life.
He recalled how after tweeting about poor service from a local mobile phone operator, he received a phone call from an executive of the company to follow up on the complaint.
"Twitter can turn crisis into opportunity if you manage it right," Mr Woody said.
He said several brands had offered him money to tweet messages recommending their products but he did not accept unless they had proof that their products were really good.
He said that if he tweeted something and the quality did not meet what was advertised, then he certainly could receive negative feedback.
By Chadamas Chinmaneevong and Komsan Tortermvasana
"Marketing through Twitter must be done seriously and continuously; otherwise, a brand will be at risk. At least, there must be a tweet a day NATHIDA RATTHANAWUT FOUNDER, MARKETINGOOPS
""Twitter can turn crisis into opportunity if you manage it right,"WOODY MILINTHAJINDA TV PERSONALITY AND TWEETER
You may have heard of Twitter but how well do you know it?People may think that Twitter is for messaging. That is partly right. In fact, you can also use this social network to promote your business and even yourself free of charge.
It's no surprise, then, that Twitter has become very popular very rapidly.Many big companies, such as Starbucks Coffee worldwide, and Thai firms, including Central Department Store and the property developer Sansiri Plc, are also using social networks as a marketing tool to communicate with their customers directly.
Basically, Twitter is a social network and microblogging service used to broadcast comments and message people in short form. Users can "tweet"short text (not more than than 140 words)updates to their Followers and receive updates from people they are following.It is a one-to-many broadcast system that has attracted massive publicity and traffic ever since celebrities such as Oprah Winfrey began to discover its power. One of the world heavyweights on Twitter is actor Ashton Kutcher he has 3.4 million followers but is only following 215 people.
In Thailand, Twitter only began to take off a few months ago when fugitive former prime minister Thaksin Shinawatra began using it to keep in touch with his ardent followers.
Nathida Ratthanawut, the founder of the MarketingOops website, said many well-known people such as politicians, singers, and TV hosts were now using Twitter to communicate with people in their networks. It also allows business enterprises to publicise their movements, launch promotional campaigns,directly communicate with customers and build their brands as well.
Marketers and advertisers are expected to rush to embrace Twitter but to date the knowledge of how to apply it in the marketing context is limited and successful case studies are not widely distributed.
"Marketing through Twitter must be done seriously and continuously; otherwise, a brand will be at risk. At least,there must be a tweet a day. Good and useful information can attract followers,"Ms Nathida said.
According to Comscore, a marketing research company that provides marketing data and services to many of the internet's largest businesses, the number of Twitter users grew by 95% in March to 19.1 million - that's not one year's growth but one month.
The most recent data for July showed 51.6 million users visited Twitter.com.In Thailand, there are more than 120,000 users who are mostly aged 20-30 years.Statistics from Alexa.com show that Twitter.com is ranked 43rd among the most popular websites in Thailand.
With the rapid growth of users worldwide and in Thailand, there is no doubt that Twitter will be a convincing channel where creative marketers, as well as advertisers, will look to develop effective and connecting advertising communications, Ms Nathida added.
At present, more than 30 companies in Thailand are using Twitter as a marketing tool but enterprises may need experts to advise them on the right ap-proaches to take with this new medium.
For example, V Australia launched a marketing campaign by sending three "mates" to Los Angeles for "The Ultimate 72 Hours". The catch was that they were required to use Twitter to tweet every minute that they were there - all 4,320- to win round-the-world plane tickets.
Twitter is also popular with media businesses including news agencies.Tweets from such sources (including the Bangkok Post ) come with links to the full stories on their websites.(Long web addresses are not a problem in the 140-character world of Twitter, which uses Bit-ly, a URL shortener, to make them bite-sized.)
Ms Nathida said the number of corporate users of Twitter would probably double this year.
In some countries, half of Twitter members use Twitter on smartphones,a trend that is certain to grow in Thailand as smartphone prices come down. Mobile usage could become the norm if 3G mobile broadband services become available locally.
"To me, I think Twitter is great tool for building personal brands. I believe that many big music companies will use Twitter as their marketing tool to promote their artists to fans," said Ms Nathida.
Thanyawat Chaitrakul, managing editor of MKT Magazine and an expert in brand management, said social networking and its power to reach individuals could not be ignored by marketing executives.
Traditional media were now under threat by new social media, he said.Anyone can now create his or her own brand and reach a global audience.
"This is a change from the earlier pattern in which celebrities typically were 'shaped' from TV or radio appearances," Mr Thanyawat said.
He cited the example of Sukree or @sukree in Twitter. A computer programmer, Sukree was among the first Twitter users locally and now ranks among the most popular Thai tweeters.
It's not unusual now for companies to seek out people with a large number of followers on Twitter (or friends on Facebook, for that matter) and offer them rewards to help promote brands to their followers, tweet by tweet.
But Mr Thanyawat said that promoting brands by having prominent, popular posters advertise products and services could be dangerous.
A product that failed to meet with expectations would generate instant feedback and backlash. Similarly, web icons risk their own reputations if it was found that they received compensation to tweet products or services that people didn't like.
In any case, the power of social networking is too large to ignore, and companies would be wise to develop a strategy in how to monitor and manage their brands through the internet.
Woody Milinthajinda, a leading television moderator and owner of Woody Born to Talk on Modernine TV, said he began using Twitter just last February and it had now become part of his daily life.
He recalled how after tweeting about poor service from a local mobile phone operator, he received a phone call from an executive of the company to follow up on the complaint.
"Twitter can turn crisis into opportunity if you manage it right," Mr Woody said.
He said several brands had offered him money to tweet messages recommending their products but he did not accept unless they had proof that their products were really good.
He said that if he tweeted something and the quality did not meet what was advertised, then he certainly could receive negative feedback.
Thursday, September 3, 2009
BANK RESCUES TOURISM FIRMS
Thanks to liquidity provided by the Small and Medium Enterprise Development Bank (SME Bank), several small tourism businesses have been able to continue operating.
The bank's spokesman Vichaya Vitheethum said yesterday that 1,237 small and medium tourism operators had been given loans worth a total of Bt2.09 billion.
Of the total loans, Bt633 million was allocated to 217 companies under the Thai Hotels Association, Bt563 million to 481 members of the Thai Restaurant Association, Bt438 million to 204 members of the Association of Thai Travel Agents and Bt463 million to 335 firms under the Tourism Council of Thailand.
He added that the bank had also extended five-year-long soft loans at the rate of 5 per cent to small resorts so they could survive. So far, a total of Bt2.04 billion has been given to 100 resort operators.
Meanwhile, the Standard Chartered Bank (Thailand) filed a lawsuit against the SME Bank on Wednesday demanding a compensation of Bt323 million, saying the SME Bank had failed to pay the interest and fines for 18 months over the issuance of the Floating Rate Certificate of Deposit (FRCD).
Earlier, the SME Bank had announced that the FRCD deal had been nullified but the foreign bank refused to accept this. This is the third time that the Standard Chartered Bank (Thailand) has sued the SME Bank on the FRCD issue.
In 2006, the SME Bank issued US$300 million (Bt10.24 billion) worth of FRCD and asked the foreign bank to cover the risk. Later, however, SME Bank decided to nullify the contract.
The bank's spokesman Vichaya Vitheethum said yesterday that 1,237 small and medium tourism operators had been given loans worth a total of Bt2.09 billion.
Of the total loans, Bt633 million was allocated to 217 companies under the Thai Hotels Association, Bt563 million to 481 members of the Thai Restaurant Association, Bt438 million to 204 members of the Association of Thai Travel Agents and Bt463 million to 335 firms under the Tourism Council of Thailand.
He added that the bank had also extended five-year-long soft loans at the rate of 5 per cent to small resorts so they could survive. So far, a total of Bt2.04 billion has been given to 100 resort operators.
Meanwhile, the Standard Chartered Bank (Thailand) filed a lawsuit against the SME Bank on Wednesday demanding a compensation of Bt323 million, saying the SME Bank had failed to pay the interest and fines for 18 months over the issuance of the Floating Rate Certificate of Deposit (FRCD).
Earlier, the SME Bank had announced that the FRCD deal had been nullified but the foreign bank refused to accept this. This is the third time that the Standard Chartered Bank (Thailand) has sued the SME Bank on the FRCD issue.
In 2006, the SME Bank issued US$300 million (Bt10.24 billion) worth of FRCD and asked the foreign bank to cover the risk. Later, however, SME Bank decided to nullify the contract.
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