Channel 0128 SMEs | OTOP | Handicraft

Economic Rebound to Drive Information and Communications Technology (ICT) Demand in Asia Pacific: Avaya Survey

2010-02-07T04:43:00.001-08:00

Avaya today announced the findings of its “Tuning Into The Channel” survey conducted at its annual Avaya Asia Pacific Business Partner Conference in Beijing, China.

The survey was conducted by Avaya Asia Pacific by polling participants from 20 countries in Asia Pacific who attended the conference.

The survey highlights a positive sentiment within Avaya’s Asia Pacific channel network with 64.6 percent of the respondents expecting to see a demand surge in ICT before the end of 2010 as the economy continues to improve in 2010. Among respondents, 37.7 percent see the SME sector as the biggest driver for this increase over the next 12 months. This positive sentiment is supported by business momentum as 40.5 percent of the Avaya channel partners polled said their customers have identified ‘making selected investments in projects to drive productivity’ as a key strategy over the next 12 months.

Financial Services (27.3 percent) and Telecoms (19.5 percent) are other key sectors identified as driving growth in what in 2010. The survey identified Unified Communications as a big opportunity in 2010 with 36.3 percent of the respondents identifying it as”the best opportunity for 2010”. The survey indicates that as many as 85 percent of channel partner customers prefer to extend and invest in existing systems. As many as 61.5 percent of channel partners polled are considering new contact centre solutions to improve their own customer service capabilities this year..

“The positive sentiment shared by our channel partners is good news for Avaya,” said Chee Heng Loon, director, Channels, Avaya Asia Pacific. “We see a similar reaction from many of our customers following our merger with Nortel Enterprise Solutions in December 2009.Avaya is well-positioned to strengthen our leadership in Asia Pacific,”

Bangkok Bank offering special deals at Money Expo Pattaya

2010-02-07T03:42:00.001-08:00

Bangkok Bank will offer loads of special deals at Money Expo Pattaya 2010, including loans with special interest rates, discounts and free gifts. The bank will feature specially-selected products and services for both Thai and foreign customers residing in Pattaya and in nearby provinces under the theme ‘Financial Navigator’.

Money Expo Pattaya will be held at the PEACH Convention Center, Royal Cliff Beach Resort from 5-7 February 2010.

“Bangkok Bank will be combining specialized products and services to suit the needs of Thai and expatriate customers residing in the eastern region,” said Bangkok Bank Executive Vice President, Head of Provincial Commercial Banking, Piya Sosothikul. “Pattaya City, Chon Buri, Rayong, Chachoengsao and Chanthaburi residents will have an opportunity to seek advice and special deals from Bangkok Bank, Thailand’s largest bank.

“We will be dedicating 120 square meters of floor space and a team of Bangkok Bank financial specialists to help navigate customers toward their personal or business financial goals,” said Mr. Piya.

“As we head into Valentine’s Day and Chinese New Year, customers who apply for Bangkok Bank’s products and services at the three-day fair will receive discounts, special offers or free gifts from Bangkok Bank. Bangkok Bank will be offering deals and information on a wide range of products and services, including Bualuang Home Loans; SME Loans; deposits; mutual funds including RMFs and LTFs; bonds and debentures; bancassurance including Gain 1st, PA 1st and Cancer Protection 1st; international funds transfers, personal and business internet banking, Be 1st debit cards and credit cards,” Mr. Piya added.

“I encourage anyone living in Pattaya, Chon Buri and nearby provinces to visit Bangkok Bank’s exhibition to take advantage of these special privileges and offers available at Money Expo Pattaya, and to keep their eyes and ears open for further information on Bangkok Bank’s promotions,” Mr. Piya concluded.

KBank and CMBC open borders toward financial service excellence

2010-01-30T01:44:00.001-08:00

KASIKORNBANK, in collaboration with China Minsheng Banking Corporation (CMBC), has opened a new chapter in the Sino-Thai banking business, opening the financial frontier between the two countries by merging the service networks of the two banks to allow cross-border services. Both parties target joint lending to Chinese SMEs at 6 billion Baht this year.

Mr. Dong Wenbiao, Deputy Director of the Economic Committee of the Chinese People’s Political Consultative Conference (CPPCC), and Chairman of the Board of Directors of CMBC, chaired the January 28 signing ceremony at Chomphu Phukha Reception Room, KBank’s head office to open the financial frontier between the two nations. The move is aimed to enhance collaboration in financial services for customers of KBank and CMBC. KASIKORNBANK Chief Executive Officer Banthoon Lamsam and Mr. Hong Qi, President and Chief Executive Officer of CMBC, also signed the agreement at the ceremony.

Mr. Dong Wenbiao, Chairman of the Board of Directors of CMBC, said KBank and CMBC have been business partners since 2004. The two banks have together studied and developed a financial service platform and provided loans for SMEs in China with a risk management technique that has provided sound financial management for Chinese mainland SMEs. This joint project has seen significant progress, and has proven successful.

Over the past 5 years, trade between China and ASEAN has risen from USD 59 billion to USD 250 billion. On January 1, 2010, the ASEAN-China Free Trade Area (FTA) officially started, with trading volume between the two to be increased to 13 percent of total world trade volume, becoming a major economic community covering 11 countries with a total population of 1.9 billion and combined GDP of USD 6 trillion. The ASEAN-China FTA is the most populous free trade area and the world’s most powerful economic driver among developing countries. Thus, the collaboration between KBank and CMBC in diverse aspects will serve as a strong base to support and provide convenience in business operations between the two countries, which are expected to grow continually.

Mr. Banthoon Lamsam, CEO of KBank, said the Bank has expanded business in China in collaboration with CMBC, China’s leading private bank, by providing credits for SMEs in the Chinese mainland, which is one of the key business strategies of KBank in the country. The joint credit provided for China’s SMEs measured CNY 178 million, or around 900 million Baht. As the SME market in China is quite large, with a huge demand for funding, the Bank has targeted provision of CNY 1.2 billion, or approximately 6 billion Baht, of joint lending in 2010.

Aside from SME lending in China, KBank and CMBC are planning to open the Sino-Thai financial frontier via collaboration among the networks of 400 CMBC branches in China, KBank branch and representative offices in China, and 800 KBank branches in Thailand, in order to directly facilitate trade and investment between customers in the two countries, under the “boundless business” concept.

Thus, the cooperation in business expansion for customers in China and Thailand includes cross-border RMB funds transfer, wealth management such as mutual fund investments, securities trading, and deposits, credits such as syndicated loans and factoring, financial advisory services, derivative services, bancassurance, and exchange of economic and business information between the two banks.

“From now on, KBank customers will be able to use financial services offered by CMBC in China,” Banthoon said. “ For example, KBank and CMBC jointly provide RMB-denominated credits to Thai companies investing in China, and RMB-denominated credits to Chinese companies investing in Thailand. The services also include the Bank’s other financial products in four main groups including deposits, investments, risk management, RMB foreign exchange services, and international trade. Such cooperation is to innovate towards financial service excellence of the two countries in a way that will largely benefit businessmen of both nations.”

In addition, the two banks will exchange knowledge and banking management innovations. KBank is the number-one player among SME businesses in Thailand, and widely recognized as an Asian leader in providing financial services to SMEs under the concept of “Customer Centricity”. The exchange of knowledge in brand building, marketing, product development, and a complete credit management system, in combination with business administration techniques in China from CMBC, will benefit business operations to efficiently serve theneeds of SME customers in China.

New Trade Landscape Emerging for Asia’s SMEs

2010-01-29T23:48:00.000-08:00

FedEx-Commissioned Research Reveals Trade Opportunities for Asia’s SMEs Increasingly Linked to Burgeoning Demand from China’s Domestic Market And to Unrealized Potential of FTAs

FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world's largest express transportation company, today released the findings of new research which reveals the challenges and opportunities for Asia’s Small and Medium Sized Enterprises (SMEs) emerging from the financial crisis towards economic recovery. The study shows that while cost controls remain crucial to survival, SME exporters may benefit from both new sources of consumer demand within Asia, and from the rising volume of trade within the region—especially if more advantage is taken of its many Free Trade Agreements (FTAs).

Entitled “Towards the Recovery: Challenges and Opportunities facing Asia’s SMEs,” FedEx Express commissioned the research from The Economist Intelligence Unit (EIU). The report is based on interviews with corporate officers at SMEs, regional experts and a review of recent studies published by leading authorities, including the Asian Development Bank and national governments in the region.

“Small and medium sized enterprises, which comprise 95% of businesses in the Asia Pacific region and employ nearly 80% of the workforce, play a critical role in the region’s economy and will be vital in its recovery and growth in 2010,” said David L. Cunningham Jr., president, Asia Pacific, FedEx Express.[1] “With demand in the West making a slower recovery than Asia’s rapidly improving economic outlook, this report provides SMEs in the region with an understanding of the new trade dynamics that are emerging here. As a facilitator of trade, we believe the report’s insights will help SMEs to evaluate these new opportunities and tap into the regional recovery underway in Asia.”

One of the report’s key findings examines how SMEs stand to benefit from two new interlocking dynamics within the economies of the Asia Pacific region. The first is a need to rebalance economies in the region to reduce their reliance on consumers in developed Western markets and turn their attention towards domestic demand.

The second is intra-regional trade, by which SMEs in smaller markets in Asia may take advantage of increasing consumer demand in the region’s developing giant economies, namely China.

Against a backdrop of slow economic recovery in the West, Asian SMEs would benefit from an emerging customer base within the region. There are signs that China may be able to provide this, as its middle class becomes wealthier and policy makers seek to rebalance its economy away from a reliance on exports and towards domestic demand.

In fact, in the first three quarters of 2009, China’s retail sales grew by 15.1% year-on-year, almost as fast as before the financial crisis. The buoyant Chinese economy has the potential to anchor a new region wide trade dynamic, with China not just an assembly point for exports to Western markets, but as a final destination for goods from other Asian countries.

“Throughout this decade we have witnessed the flow of goods into China as it has acted as the assembly line for the region, and then exports out of China to the West. This research shows that Asian consumerism is a force that will lead the region back to prosperity,” Mr. Cunningham said. “FedEx is committed to assisting SMEs seek out emerging trade opportunities within and across the Asia Pacific region through our intra-Asia network which connects 22 major cities. Coupled with our flexible services we can help position SMEs to be even more competitive in today’s rapidly changing business environment.”

Linked to this trend of increasing intra-regional trade is the proliferation of Free Trade Agreements (FTA) that have been signed over recent years in an effort by Asian economies to promote more trade with each other. As of mid-2009 these economies concluded 54 FTA’s among themselves and with countries outside the region. Most recently, an FTA between China and the Association of South-East Asian Nations (ASEAN) went into effect on January 1st, 2010. This will create a common market of some 1.7 billion people and under the agreement, 90% of goods traded between China and ASEAN’s six richest member states now enjoy zero tariffs.

The trade preferences offered by FTAs represent a major opportunity for SMEs in the region to grow their cross border business. However, the research points to the fact that many SMEs, with their limited resources to handle multiple tariff schedules and document requirements, do not yet know how to make use of FTA provisions. It is clear that better official guidance and information is necessary if SMEs are to take advantage of Asia’s evolving trade dynamics.

“FedEx is a supporter of any act or process that facilitates trade,” Cunningham said. “Confusing customs regulations, duties and taxes remain one of the biggest barriers for SMEs in accessing international markets, which is why FedEx offers dedicated software solutions that help small business expand their reach quickly and simply.”

One such example is FedEx Global Trade Manager, an online tool that simplifies international shipping by identifying the documents needed for shipping to more than 200 countries. The free, online resource even calculates various taxes and duties needed in the process.

“We commissioned this research recognizing the importance of SMEs to the region’s economy and also to the future development of the express market. Today’s international exporters are not major multinational companies, but small businesses,” Cunningham said. “FedEx helps small business owners go global from day one through greater access and its tailored portfolio designed to meet the unique needs of SMEs with personalized services, innovations, tools and discounts focused on value, reliability, reach and service. It is particularly satisfying to see these services as being increasingly relevant in Asia’s changing economies.”

TCDC and Department of Industrial Promotion signs MOU in “Product Design and Development for Creative Industry SMEs”

2010-01-17T04:03:00.001-08:00

TCDC and Department of Industrial Promotion signs MOU in “Product Design and Development for Creative Industry SMEs” project to give Thai SMEs competitive edge in international market

Thailand Creative & Design Center (TCDC) has joined forces with the Department of Industrial Promotion, Ministry of Industry, in a bid to broaden business opportunity for small and medium enterprises (SMEs) across the nation by signing an MOU for collaboration in ‘Product Design and Development for Creative Industry SMEs’ project. The major project takes the Creative Thailand scheme off to a flying start in the Year of the Golden Tiger with an aim to raise business operation standard and capability of creative industry entrepreneurs in Thailand for greater competitiveness in the global market.

Mr. Apisit Laistrooglai, Managing Director of Thailand Creative & Design Center (TCDC), provided background about the partnership: “As a specialized institute of The Office of Knowledge Management and Development (OKMD) under supervision of The Office of the Prime Minister, TCDC undertakes a mission as the center of knowledge resources in design and creativity with a role to create public awareness of the economic value of design under “Creative Economy” concept. TCDC has therefore implemented a proactive action plan with special emphasis on strengthening business capability of the entrepreneurs through a year-round series of activities.”

“TCDC has previously provided opportunities for entrepreneurs from all industries to take part in Ploy Saeng Festival,” he continued. “At the festival, entrepreneurs and owners of products with high business potential were also recruited into a special workshop under a ‘Handmade Profit” Project’, which is a pilot project to support new entrepreneurs and increase visibility of Thai products and services in the international market. However, TCDC wishes to keep expanding these services by increasing accessibility of SMEs nationwide to the knowledge resources and introduce them to the community of creative industries. We have therefore partnered with various local and international organizations in a continued effort to boost the potential of Thai designers and entrepreneurs by building an expansive business development network. For instance, TCDC has recently signed an MOU with Taiwan Design Center in an initiative to hold the International Design Alliance (IDA) Congress 2011, which will be comparatively regarded as the Olympics of designers around the world. The event will serve as a springboard and business networking channel for Thai designers and entrepreneurs in their entrance into the global market.”

And most recently, TCDC has signed an MOU with the Department of Industrial Promotion, Ministry of Industry, to implement ‘Product Design and Development for Creative Industry SMEs’ project to help creative industry SMEs enhance the image of their products. The project emphasizes on bringing development and extending business opportunity to SMEs in four creative industries covering 15 fields of business: handicrafts, cultural and biodiversity-friendly tourism, Thai traditional medicine, Thai food, performing arts, visual arts, cinematography and videography, printing, broadcasting, music, design, fashion, architecture, advertising, and software. According to the database of the Department of Industrial Promotion, entrepreneurs in these fields of business make up more than half of the department’s database of 2.8 million registered entrepreneurs nationwide.

In the initial phase, the two partner organizations will jointly recruit 100 entrepreneurs into the project. Selected entrepreneurs are required to attend workshops and seminars to be held during the first month of the program, which will revolve around fundamental knowledge for creative industry entrepreneurs. The subjects include basic understanding of creative economy and interconnection of SMEs as part of creative economy development, creativity in product development, relevance of materials in creative product development, intellectual property rights, sources of business funding, marketing of products and services in modern market environment with insightful understanding of market demands, and case studies from entrepreneurs who have taken part in TCDC’s earlier project to ‘bring conceptual design to commercial production’. The training will be provided by experts from TCDC and many other related organizations, such as Thammasat University, the Department of Intellectual Property, and Small and Medium Enterprise Development Bank of Thailand (SME Bank). After that, the number of project participants will be halved down to 50 entrepreneurs with well-balanced variety of products. The cut will be based on business development potential as well as commitment and financial capability of the entrepreneurs.

The qualified entrepreneurs will, during the second and third month of the program, attend another series of workshops for more in-depth training. The subjects include product uniqueness and differentiation, product classification for effective product development, cost analysis, production capacity, target customer analysis, product prototyping, packaging design and development, sales channels, market testing, and customer feedback survey for improvement. TCDC will along the way evaluate the improvements in terms of product quality, development, as well as marketing potential in local and international markets. Upon completion of the program, the entrepreneurs are expected to come up with a product with add-on development or a new product creation. Successful participants will be given the opportunities to be part of Ploy Saeng Festival: Create/Make/Earn and sell their products at The Shop@ TCDC.

According to Mr. Arthit Wuthikaro, Director-General of the Department of Industrial Promotion, the project coincides with the department’s mission and the department is clearly aware of TCDC’s role and objectives in supporting SMEs and increasing their accessibility to knowledge resources in creativity and design. With this opportunity for business growth, the SMEs can make their contributions by raising the standard of products and services to achieve marketability in both Thai and foreign markets.

The department will play its part in this project by recruiting and screening participants from its database of registered SMEs nationwide. Prospective SMEs will be classified by their field of business and consideration of the SMEs that meet initial criteria of the project also takes account of their physical profile. The list of selected SMEs will be sent to TCDC for more thorough analysis and consideration. In addition to this, in-depth information about the SMEs will be shared with TCDC, particularly in terms of their business operation, problems, and limitations, as well as recommendations about additional resources that the SMEs would need for their creative business development. The contribution is an effort to fulfill the needs and expand the opportunity of creative industry entrepreneurs in Thailand by providing them the ground for development and the channels to present their creative products to the public.

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

2009-12-16T20:02:00.001-08:00

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

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

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

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

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

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

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

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

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

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

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

The Sasin Graduate Institute of Business Administration of Chulalongkorn University

‘Roses of the North’ Charity Exhibition

2009-12-16T18:28:00.000-08:00

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

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

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

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

2009-12-15T18:45:00.001-08:00

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

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

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

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

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

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

2009-11-20T21:59:00.001-08:00

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

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

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

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

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

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

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

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

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

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

UMI TO INCREASE MOSAIC EXPORT FOCUS NEXT YEAR

2009-11-12T23:06:00.000-08:00

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

OBTAINING SPECIFIC ANSWERS FROM STRATEGY

2009-11-04T06:35:00.000-08:00

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

THE IMPORTANCE OF TAX RISK MANAGEMENT

2009-11-04T06:33:00.000-08:00

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

WHAT IFRS WILL MEAN FOR YOUR BUSINESS

2009-10-28T21:12:00.001-07:00

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

ONLINE MARKETING IN CONSUMER-GENERATED TERRITORY

2009-10-28T21:10:00.000-07:00

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

Kingdon's best crafts

2009-10-28T21:09:00.001-07:00

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

WASTE NOT WANTED

2009-10-14T23:41:00.000-07:00

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

Happy family retreat

2009-10-13T16:51:00.001-07:00

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

Khao Kla plans SME fund next year to tap recovery

2009-10-07T20:57:00.000-07:00

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

TMB EXPECTS TO HIT 2009 SME LOAN TARGET

2009-10-06T20:36:00.000-07:00

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

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

SME Bank offering bills of exchange

2009-10-06T20:35:00.001-07:00

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

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

2009-10-02T20:44:00.000-07:00

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

Local wisdom through metal

2009-10-02T20:43:00.001-07:00

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

OIE ACTION PLAN AIMS TO BOOST SME COMPETITIVENESS

2009-10-02T20:40:00.000-07:00

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

SME debt suspension proposed by Pradit

2009-09-28T22:55:00.001-07:00

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

OSMEP HEAD DETERMINED TO MODERNISE ORGANISATION

2009-09-28T22:54:00.001-07:00

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

REACHING OUT TO LOCAL COMMUNITIES

2009-09-28T22:52:00.000-07:00

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

German aid body changes tack

2009-09-28T22:50:00.000-07:00

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

Companies utilise social sciences to fill tech jobs

2009-09-24T23:13:00.000-07:00

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

Joint venture to boost Thai SMEs online

2009-09-24T23:12:00.001-07:00

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

Perceptions matter for SMEs

2009-09-22T00:13:00.001-07:00

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

Creating jobs with local crafts

2009-09-20T02:01:00.001-07:00

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

Carver turns trash into cash

2009-09-20T01:59:00.000-07:00

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

From the Pacific to the Andes

2009-09-20T01:58:00.000-07:00

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

SUPPLIERS TARGET INDOCHINA VIA MEDICAL FAIR THAILAND

2009-09-20T01:57:00.002-07:00

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

JAPANESE INVESTORS WILL STAY PUT

2009-09-20T01:57:00.001-07:00

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

THE SWEET TASTE OF SUCCESS

2009-09-16T19:42:00.000-07:00

       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.

OTOP PRODUCERS, SMES PENETRATE LAOS

2009-09-16T19:41:00.000-07:00

       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.

Approval sought for "Creative Thailand"

2009-09-15T18:13:00.000-07:00

       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 CHALLENGE OF FAMILY TIES

2009-09-13T21:10:00.000-07:00

       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.

Intrade Malaysia to boost Thai SMEs

2009-09-12T17:57:00.000-07:00

       "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

COMPANIES TOLD TO THINK OUT OF THE BOX

2009-09-11T07:11:00.001-07:00

       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.

Thailand bids to lead world in outsourcing

2009-09-08T21:06:00.000-07:00

       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.

PACKAGE "LACKS STRATEGIC PLANNING"

2009-09-07T20:17:00.001-07:00

       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.

TWEETING FOR FUN AND PROFIT

2009-09-06T21:08:00.000-07:00

       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.

BANK RESCUES TOURISM FIRMS

2009-09-03T21:04:00.000-07:00

       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.

MASSIVE LENDING PROGRAMME BY SPECIALISED BANKS TO BOOST RECOVERY

2009-08-26T20:45:00.000-07:00

       State-owned banks have begun a campaign of aggressive lending aimed at pulling the country out of recession.
       Measures involve fast-track loans on three-day approval, waiving loanguarantee fees and offering credit to foreign importers.
       Finance Minister Korn Chatikavanij and executives of seven specialised financial institutions yesterday launched fast-track lending, in which borrowers could obtain loans within three days, or no more than 21 days.
       The Finance Ministry wants these banks to increase their combined target lending this year from Bt625.5 billion to Bt927 billion.
       Fast-track lending is major feature of the scheme. Korn said banks would not only reduce days of waiting, but also make loan documents simpler, with fewer pages.
       To achieve the new lending target, Korn said the Samll Business Credit Guarantee Corporation (SBCG) would waive its 1.75-per-cent-per-year guarantee fee for the first year of the loan term. It will also double its per-bank-per-borrower loan guarantee to Bt40 million.
       SBCG chairman Pichit Akrathit pledged to meet the target of providing loan guarantees worth Bt30 billion even though the scheme had not yet made much progress. So far, the corporation has provided guarantees worth only Bt3 billion.
       Pichit said if the SBCG could fully implement its pledge, it would lead to bank lending worth up to Bt100 billion.
       The Finance Ministry next week will ask the Cabinet to provide a financial subsidy to the SBCG to compensate it for the cost of implementing the project. For the whole project, the corporation needs Bt2.5 billion in compensation from the government.
       Export-Import Bank of Thailand (Exim Bank) president Apichai Boontherawara said his bank would offer credit to foreign importers, in order to promote the country's goods and services. To mitigate its risk, Exim Bank will advance loans via foreign banks. Apichai said he believed foreign importers could repay their debts even though they faced a lack of liquidity in their countries.
       The bank will also offer credit to suppliers of Thai exporters.
       For fast-track Exim credit, the bank will offer a revolving credit line of up to Bt10 million and notify eligible exporters within five business days of the completion of loan documents. Teh bank will also offer working-capital loans of more than Bt10 million and notify exporters of whether their application has passed preliminary screening within seven days.
       Government Savings Bank (GSB) president and CEO Lersuk Chuladesa has promised to reduce loan documents from eight pages to two, group guarantees will require only two people rather than three, and loan approvals will be notified within three days.
       This applies to microcredit loans for low-income applicants from the People's Bank and credit to small entrepreneurs who run businesses from their townhouses.
       Ennoo Suesuwan, acting president of the Bank for Agriculture and Agricutltural Cooperatives (BAAC), said the bank's fast-track lending would be offered to 680,000 farmers and ordinary borrowers, with a total loan target of Bt22 billion. The bank's existing customers will get loans within five days, while new clients will be notified with 15 days.
       Government Housing Bank (GHB) president Khan Prachuabmoh said h is bank would offer mortgages totalling Bt15 billion to people buying homes from land developers or building their own homes. The interest rate would be 1.5 per cent for the first three months, 2.99 per cent for the rest of the first year and the bank's minimum retail rate minus 2 per cent for the second and third years.
       The finance minister said the GSB and the Small and Medium Enterprise Development Bank of Thailand (SME Bank) would take care of the tourism industry. He said new loans would contribute 0.5-0.9 per cent to expansio of gross domestic product and that he expected 730,000 people to access them.
       The specialised financial institutions have lent 99.54 per cent of their earlier combined target of Bt625.5 billion. The BAAC has lent 105 per cent, the GSB 116 per cent, the GHB 73.55 per cent, the SME Bank 64.76 per cent, Exim 50.26 per cent and the Ialamic Bank 75.78 per cent.
       Lending by the specialised financial institutions rose 6.5 per cent in the first half of the year, while commercial bank's lending contracted 0.4 per cent in the first five months.

Thai government gets creative

2009-08-25T23:11:00.001-07:00

       With the ambition of boosting the country's revenue from creative industry,the Government plans to allocate 18 billion baht to a "Creative Thailand"project strategy.
       The budget will come from the Government's economic stimulus package 2.The Software Industry Promotion Agency (Sipa) and National Electronics and Computer Technology Centre (Nectec) will draft plans to use IT to add value and promote Thai culture, art and performance, entertainment and fashion design, covering 15 industries worth nearly 800 billion baht, or 10-11 percent of Thailand's Gross Domestic Product.
       There are several key ministries involved in Creative Thailand, ranging from the commerce ministry, industry ministry, science and technology ministry, to the information and communication technology ministry and the culture ministry, said Sipa Director Rungruang Limchoopatipa.
       Digital content and software play an important role not only in creative industry itself but also as tools for transforming and uplifting the 15 industries.
       There are strategic areas that Sipa will execute to achieve the government's policy push towards creative economy.The first area is research and development (R&D), which will see several hun-dreds million baht invested in a cloud computing centre to support all creative industries.
       The agency will increase its capability in entrepreneurship and establish a Digital Creative Centre, with a budget of 600-800 million baht, to be a one-stop shop providing all necessary hardware and software to support creative industries that use IT in their core business.
       The centre will also build networking,with 30 related domestic associations including government agencies such as Nectec, Software Park under National Science and Technology Development Agency, and others.
       Interms of international cooperation, Sipa will launch the Association of Asia Creative Industry, featuring 10 member countries from the Asia Pacific region. This association will form an Asia Fund to invest in the coproduction of software and digital content.
       For example, Japan and Korea may be responsible for story development and techniques, while Thailand could cover production processes and Singapore might be responsible for marketing.
       The agency has discussed with Carnegie Mellon University, Massachusetts Institute of Technology (MIT), and IBM about joining hands on a new degree called "Creative Science Engineering Management" to build a new workforce of creative professionals blending science, engineering, art and management skills. The budget for the bachelor degree curriculum is set at 180 million baht.
       Sipa will submit the project proposals and budget for 2 billion baht over the next three years to support its plan. For the fiscal year ending 2010, Sipa has already secured 200 million baht.
       Meanwhile Nectec Director Pansak Siriruchatapong added that the agency,under Creative Thailand, will support R&D, especially in cloud computing, to facilitate digital content and animation as well as other creative industries.
       Moreover, Nectec will use its technological expertise to add more valued to Otop products and Thai history and culture via digitised content.
       For example, it will develop an e-museum and e-library to showcase the evolution and history of Thai culture.
       If tourists views profile of a locally made product, including how it is made and its historical and cultural significance, its attractiveness to the potential buyer will increase.

AEC WILL COME WITH STIFF COMPETITION, SMES WARNED

2009-08-25T23:10:00.001-07:00

       Incompetent small and medium-sized enterprises could be wiped out by waves of better-quality goods from the Asean Economic Community (AEC), researchers warned yesterday."Thai SMEs could lose out if they cannot increase their efficiency," said Aat Pisanwanich, director of the
       Centre for International Trade Studies at the University of the Thai Chamber of Commerce.
       By 2015, they may have to shut down if they lack knowledge and research-and-development capabilities to stand up to other Asean enterprises, a new study conducted by the centre showed.
       The AEC, whose measures will start going into effect next year, is expected to create an initial trade deficit of Bt923 million per year in the SME sector, due to the invasion of more competitive goods in the domestic market.
       "Although the overall exports of SMEs will increase 10.7 per cent to Bt35.9 billion in 2015, imports will also jump 13.9 per cent to Bt38.03 billion in the same period," Aat said.
       The eight SME categories that will be the hardest hit are electronics and electrical appliances, garments and textiles, chemical products, rubber and plastic, wood products, petroleum, mining, and steel.
       SMEs need to understand more about how to take advantage of trade liberalisation among Asean countries, he said. But so far, the government has not provided help to develop SMEs' edge amid Asean's economic integration.
       The government should draw up a strategy to strengthen SMEs. It must help promote the development of industry clusters from upstream to downstream.
       The government should also closely monitor imports.
       Local companies should further develop their product quality and create added value, while lowering production and logistic costs to ensure better competitiveness with other Asean countries.
       The centre's study also found that incomes for farmers would not improve as a result of the regional economic integration.
       On average, farm income will rise only Bt23 a month towards 2015, while income for industrial workers will rise Bt118 a month during the period.
       Chainant Ukosakul, vice chairman of the university's committee on trade rules and international trade, questioned whether Thailand was ready for free trade in Asean, because SMEs were still in the dark about the AEC.
       He urged the government to provide more information on the opening of trade in both goods and services, which could create new challenges for smaller businesses.

SMEs on alert as AEC nears

2009-08-25T23:09:00.001-07:00

       Local small and medium-sized enterprises are expected to be hardest hit once the Asean Economic Community (AEC) starts to take effect next year, a university study warns.
       "Certain Thai businesses such as electrical appliances and electronics, textiles and garments, chemicals, rubber, plastic,wooden products, petrochemicals, steel and mining would face adverse conditions once import tariffs are brought down to zero next year under the AEC agreement," said Aat Pisanwanich, director of the Center for International Trade Studies of the University of the Thai Chamber of Commerce.
       "Without proper preparations, those industries would definitely face intensifying competition and be subject to operating losses."
       Eleven priority goods and services sectors are part of a pilot programme to be completed by 2010 under the AEC regional integration goals. Full integration is supposed to take place by 2015.
       The priority sectors are agro-based products, fisheries, wood-based products, rubber-based products, textiles and apparel, automotive, electronics,information and communication technology, health care, tourism, and air travel. Recently, logistics were added as the 12th priority sector.
       The study estimates that integration would raise export revenue from small and medium-sized enterprises by 35.9 billion baht and imports worth 38 billion baht in 2015.
       Currently, exports from SMEs are estimated at 5.2 trillion baht, with the 12 priority sectors under the AEC pilot programme making up 80%. Imports were estimated at 5.2 trillion baht.
       The study also projected that eco-nomic integration would benefit Thailand's non-farm sector more than the farm sector. Income of the farm sector was expected to increase by 1,428 baht per household per year, with the nonfarm sector rising 3,380 baht per household per year in 2015.
       Currently,farm sector household income is estimated at 12,300 baht per month, while the non-farm sector earns 28,000 baht per month.
       "We're now gravely concerned, particularly over five sectors - tourism,aviation, health care, and information technology - in which foreign ownership of up to 70% would be allowed next year," said Mr Aat.
       "From this study, questions arise whether those businesses are well prepared for higher competition under the AEC over the next six years, as this should affect the way of life of all Thais going forward."

PM'S AWARDS GO TO 34 OUTSTANDING EXPORT FIRMS

2009-08-24T22:19:00.000-07:00

       Thai exporters who won this year's Prime Minister's Awards say creativity, packaging development and social responsibility have been vital for their business success amid the global economic downturn.
       Prime Minister Abhisit Vejjajiva yesterday rewarded 34 outstanding exporters with 40 of the prestigious awards in a ceremony at Government House.
       Abhisit said he strongly believed Thai exports would soon return to positive growth, because there were good signs of economic recovery in many countries.
       "Exports in the fourth quarter should increase, and that will result in a lower fall in export growth, averaging a 10-per-cent contraction for the full year," he said.
       The prime minister said economic growth dropped 4.5 per cent year on year in the second quarter. However, he is confident the economy will recover in the second half and that Thailand's economic growth will contract only 3-4 per cent for the full year.
       To ensure smooth export growth, Abhisit said the government would tighten collaboration between government agencies and support creative economic policies as keys to promoting a higher value for exports.
       This year's PM Awards were made in five categories. Five companies were named Best Exporterl; five firms were recognised for Thai-Owned Brands; two awards were made to Best Service Providers; five awards were made for Otop Export Recognition; and 23 awards went to 19 firms for Design Excellence.
       Thammasak Jittimaporn, managing director of Green Spot, which won a Best Exporter award, said despite some negative factors, including the strengthening of the baht and slowing economic growth, the company's exports still increased 20 per cent in the first half.
       Moreover, the firm has contracted soybean farmers in the North as a strategy to lower fluctuations in world soybean prices, as well as support Thai farmers.
       Pakinee Jiwattanapaiboon, marketing and research and development manager of Xongdur Thai Organic Food, which won a PM's Award for Otop Export Recognition, said his firm created and launched new products, with good packaging design, every six months.
       Healthy food products are on high demand, and the company has set up many training programmes for its contract farmers, so they can better understand organic farming systems, she said. "The company's turnover has increased 30 per cent year on year despite the global economic downturn," Pakinee said.
       Dhanabadee Art Ceramic won a PM's Award for Design Excellence. Managing director Panasin Dhanabadesakul said his firm had spent 5 per cent of its revenue of Bt65 million on innovations.
       The company also adds valued to its products by adapting local wisdom and raw materials for its design creativity.
       Bangkok International Preparatory and Secondary School was named one of the country's Best Service Providers. Headmaster Keith Wecker said the school concentrated on increasing opportunities for Thai students to study international progrkammes by setting medium fees.
       Normally, international schools charge Bt600,000 to Bt700,000 per year, but Bangkok Prep's fees are Bt250,000 to Bt400,000 for three semesters.
       Napatr Morin, director of Tia Ngee Hiang, a producer of processed food, meat and rice crackers under the Chaosua brand, said his firm won a Thai-Owned Bran Award by focusing on creating brand recognition and quality development.

CRITERIA MAY BE REKAXED FOR CREDIT-GUARANTEE SCHEME

2009-08-21T21:40:00.000-07:00

       The Finance Ministry and the Small Business Credit Guarantee Corp (SBCG) are considering the relaxation of four criteria in the government's Bt30-billion credit-guarantee scheme after it fell well short of its target.
       The ministry and the SBCG plan to lower the first-year credit-insurance fee of 1.75 per cent after small and medium-sized enterprises (SMEs) said they had not joined the scheme due to the high fee.
       The ministry will discuss with the SBCG how much the fee should be slashed by, because the ministry would have to compensate the corporation for lower income resulting from any cut.
       "We have proposed to the ministry and the SBCG that they lower the fee. They have reacted positively and will bring it to the Cabinet for approval soon," Bank of Thailand Assistant Governor Sorasit Soontornkes said yesterday.
       Only Bt1.85 billion had been spent by the end of last month, short of the target of Bt4.44 billion. The authorities overall target through to the end of next March is Bt30.23 billion.
       In addition, the ministry hopes to get approval to allow SMEs with loans not exceeding Bt40 million to join the programme. The current loan maximum is Bt20 million.
       The government also plans to expand the give-year maturity of the credit quarantee to any period, depending on each debtor's loan maturity. This should help restore confidence for SMEs.
       "We don't want the SBCG to cease its guarantee if the debtor's loan maturity remains. This could cause the creditor to call back the loan," said Sorasit.
       Finally, the ministry hopes to win approval for the SBCG to give a credit guarantee to any type of SME business, instead of limiting it to certain types of activity as at present.
       Howevelr, it will continue to provide all credit insurance based on normal risk management.
       The assistant governor said the central bank had informed SMEs around the country about the scheme in order to persuade them to obtain credit guarantees.
       The central banks is also expanding the Credit Cooperation Centre's role into that of a mediator on debt rescheduling between debtors and creditors. This would help prevent "special-mention loans" becoming non-performing loans.
       The centre will focus only on retial debtors and SMEs, as they have less negotiating power than large companies.
       Its new role begins in October.

A way with waste

2009-08-19T22:10:00.000-07:00

       Fallen leaves and fruit skin have no use for city people, but a group of villagers in Khiriwong, Nakhon Si Thammarat, seem to have found a way with the waste which they use to produce natural dyes.
       These dyes, created with local ingenuity and used for colouring clothes,blouses and accessories, have earned Tambon Kamlon, of which the village is part, a name and have been accorded OTOP (one tambon, one product) rating.
       "We aim to make the most use of materials naturally available in our community," said Aree Khunthon, leader of a housewife group which has been producing natural dyes for 14 years.
       The orchards of Khiriwong yield mangosteen, durian, rambutan, garcinia
       som khaek ), longon, mango, parkia sataw ) and other plants depending on time of year, a factor helped by good weather and fresh air that, according to the Pollution Control Department, is among the cleanest measured in the country. The village sits at the foot of Khao Luang, the highest mountain in southern Thailand.
       But selling fruit alone wasn't enough to make a living, recalled Aree of the years before her group embarked on a programme to produce natural dyes to supplement their meagre income. Back then the average earning of a family was 10,000-30,000 baht earned between August and October, while it sat idled for the rest of the year.
       Following a series of natural disasters starting with flooding in 1975 and 1988 and drought in 1996, the villagers decided to switch to something that would allow them stable and sustained income, and where they wouldn't have to rely soely on the weather.
       After several rounds of debate and discussion, they settled on something that would make use of local ingenuity,using up to 80% of raw materials available locally and be environmentally friendly,explained Aree.
       For start-up capital, the village received 25,000 baht from the Komol Keemthong Foundation."Instead of using plastic ropes to create patterns on cloth, we use bamboo sticks, which come handy when making small patterns such as flowers and leaves, and they can also be reused," she said.
       The cloth is put in a basin containing liquid dyes produced from natural materials.
       The dyes themselves are made by boiling the leaves or fruit in huge enamel basins for a whole day. Dead mangosteen leaves give off orange colour while fresh ones produce pink shade; bangal almond produces yellowish-green shade; parkia pods give off grey colour; parkia pods boiled with rambutan skins produce dark grey hue; core of jackfruit produces yellow colour; leaves of peka (Oroxylum indicum ) olive green; and seeds of jiringa (nieng ) brown colour.Each piece of cloth is dyed at least three times to ensure colour does not run. The raw materials used to make the dyes are later dried to be used as cooking fuel.
       Currently there are 33 families joining the programme, each earning between 3,000 to 7,000 baht a month selling cotton shirts, blouses, pants, tablecloths, bed cover sheets, pillow cases, hats, key chains and bags.
       "We will keep experimenting trying to use natural materials to explore new dyes and create fresh designs," said Aree,"to ensure the products we make remain unique to our village."
       Located in Lan Saka district, the village of Khiriwong, which was rated the "Best Community Attraction" at the Thailand Tourism Awards in 1998, offers homestay and trekking tours to Khao Luang National Park. Visitors can buy homemade mangosteen wine, soap made from mangosteen skins and various herbs, and preserved durian. August to October is high fruit season.
       To get to the village, take a minibus from Talat Yao in Muang district, available between 7am-4pm.Alternatively, you can take Highway 4016 from town and drive onto Highway 4015 to Lan Saka, a distance of about 26 kilometres. The village is at Kilometre 20 marker to your right.
       For more information, visit the Tourism Authority of Thailand's web site at www.tourismthailand.org

LARGE-SCALE TECHNOLOGY ASSISTANCE PLANNED FOR CORE INDUSTRIES

2009-08-19T22:08:00.000-07:00

       The rice-milling, rubber-production and chicken-raising industries are being targeted for new-technology assistance by the Technology Management Centre's Industrial Technology Assistance Programme (iTAP).
       Under what is called the iTAP Big Impact scheme, TMC plans to offer its services and funding subsidies to help greater numbers of small- and medium-sized enterprises (SMEs) in the three flagship industries.
       TMC's director Chatchanart Theptharanon said the ambitious move was aimed at helping the many SMEs involved in the three vitally important industries to adopt technologies to improve their productivity and save energy.
       The industries were chosen because they generated Thailand's core revenue.
       The concept of the programme is to use TMC's existing services to help a mass of SMEs rather than providing tailor-made technology assistance for individual organisations.
       "iTAP's approach has been continously developed. We began by offering technology assistance on a one-to-one basis, and then with a group-to-group approach and a cluster approacg, until now we think we should scale up this body of knowledge to help core-industry SMEs on a mass scale, with the goal of making a big impact on the country," Chatchanart said.
       In the rice-production industry, iTAP will improve the rice-milling process by providing consultancy to farmers on technique. At a pilot plant, the productivity of a rice mill has been increased 20 per cent, along with savings in energy use.
       "For rice mills with a capacity of 60 to 120 tonnes per day, we can help them save up to Bt500,000 a year in energy costs. If we can implement our services in all of Thailand's 43,000 rice mills, we can reduce energy costs by up to Bt21 billion a year," Chatchanart said.
       Initially, TMC will deploy its rice-milling service through its partner, Khon Kaen University, which will take care of 50 rice mills in the north-eastern region. Then, the programme's coverage will be scaled up through TMC's university networks throughout the country.
       In the rubber industry, Chatchanart said iTAP's service was aimed at raising the productivity of the rubber fumigation operation and saving energy costs by improving rubber ovens.
       Rubber fumigation with tradition soild ovens can fumigate 1,200 pieces of rubber. Using three ovens, each fumigation operation takes four or five days to complete, usually producing rubber pieces of varying quality and creating the risk of fire.
       A new oven designed and developed by TMC reduces the time taken by fumigation to only three days and produces rubber pieces of uniform quality. The risk of fire is eliminated, she said.
       In Thailand, there are 660 rubber-fumigation plants, each of them normally requiring three ovens. If all of them adopted the locally developed ovens - about 2,000 ovens for 660 plants - they would save Bt200 million a year in energy costs.
       Chatchanart said the beauty of the plan was it would enable 6 million rubber farmers with trees covering 4 million rai to keep their fresh rubber until they had orders or until the price of rubber pieces was high enough for them to sell.
       "If we reduce time spent in rubber fumigation, we save up to 40 per cent of the energy used in the process, and the higher quality of the fumigated rubber will help to improve the price.
       "From our research, each new oven will raise profits by up to Bt165,000 a year. Importantly, it will also lift revenue from the export of piece-rubber, which is now about Bt70 billion a year, out of the Bt220-billion value of rubber exports," Chatchanart said.
       TMC is working with partners, including Walailak University and King Mongkut's University of Technology North Bangkok, to pilot the project with the Rubber Plantation Cooperative and Industrial Office in Nakhon Si Thammarat province, by deploying the newly developed oven in a rubber fumigation plant there.
       In the chicken-raising industry, the programme plans to install locally made air-control fans in chicken-feeding houses. The 50-inch fans are cheaper than imported models and produce no noise.
       Chatchanart said working with King's Mongkut's University of Technology Thon Buri and the Betagro Group, iTAP had developed 50-inch air-control fans that were half the cost of imported models and achieved a 23-per-cent energy saving.
       "Normally, each chicken-feeding house requires 10 air-control fans. If all of the 64,000 chiecken-feeding houses in Thailand deployed this technology, the country would save up to Bt1.3 billion a year," Chatchanart said.
       The locally made fans will also relieve tension and stress among the chickens because they produce no noise, she said.
       "In all these programs, iTAP will provide up to 50 per cent of the total cost of technology deployment but not more than Bt500,000. Up to now, we've helped about 300 SNEs, but we plan to significantly increase those numbers through iTAP Big Impact," she said.

SELF-SUFFICIENCY FREES FARMERS FROM BAD DEBT

2009-08-19T22:07:00.000-07:00

       Under a government plan to assist poor farmers using His Majesty's self-sufficiency programme, 80,000 communities are being targeted to become recipients of its training and funding facilities.
       So far, 20,000 communities nationwide have qualified for the programme.
       Each will receive severall hundred thousand baht, depending on their respective scale, tapping the Bt20-billion scheme.
       At a training centre in the outskirts of Nakhon Nayok town, about a two-hour drive from Bangkok, hundreds of farmers attended a seminar last week to learn how the sufficiency economy worked.
       They will become part of a dynamic grass-roots movement designed to free them from debt slavery by corrupt corporations and banks.
       The scheme is aimed at making small farmers financially independent and protecting them from a highly exploitive system that largely benefits big business and foreign entities.
       "The whole idea is to free farmers form the misguided belief they must invest heavily in land, construction, fertilisers and pesticides," said Sumit Champrasit, director of the Sufficiency Economy Office under the Prime Minister's Office.
       "All farmers need to do is work on 1 rai of land."
       On that 1 rai, they can cultivate rece, breed firsh and shrimp and grow cash crops like papayas, bananas and herbs.
       Sumit said the recent longan and lichee scandal and other cash-crop schemes had devastated many rural families, forcing government intervention, which itself was riddled with graft and theft.
       "For the past 50 years, we've been programmed by the West, its education and commercial system to embrace ideas that do not work well for markets like Thailand," he agrued.
       Under the training programme, farmers are told it is absolutely unnecessary to use imported fertiliser, construct costly air-conditioned breeding houses and buy dangerous pesticides.
       Through first-hand experience, one farmer lost Bt40 million after investing in huge tracts of land, purchasing all of the chemicals, farme quipment, feed meal and seeds, only to find out they were costly mistakes.
       "Because of the outlay, I had to borrow money from banks and went deep into debt," he says. "When crop prices fell, I went broke and for the last 10 years have been struggling to pay back the loans."
       Sumit said that farmer was one of thousands who had been poorly advised and encouraged to take risky positions and adopt Western farming methods that did not work well in Thailand, which for centuries had been a sucessful agricultural producer. While the anti-Western and anti-corporate tone may sound xenophobic at first, the fact is Sumit is only echoing what many respected scientists around the world are now saying: be wary of corporations and their promises of quick profits.
       In South American countries like Bolivia and Peru, where potatoes originated some 8,000 years ago, Western horticultural experts have recently announced the huge mistake by countries that support only one strain of spud while destroying hundreds of other types of the crop.
       In a BBC expose in the Andes, we are told supermarkets carry only one type of potato, because monopoly is ultimately the end game of big corporations.
       The wisdom of having other strains is if one type becomes afflicted with disease, the others will likely survive, and there will be no need for pesticides. But chemical firms would not be ecstatic if such a choice were available.
       This week, UK scientists in that country's Agriculture Ministry said the old emphasis of achieving high yield and wmploying huge tracts of land for production was the wrong way to go.
       The solution lies in finding ways to farm on smaller plots and use less fertilisers and pesticides - exactly what His Majesty the King's self-suffiency farming programme champions.
       Thailand, like all developing countries, has every right to be paranoid aout the intentions of global corporations - and Western governments, if they are not in bed with big business, will agree.
       The Grorge Clooney film "Michael Clayton" showed how global executives put profit above public health.
       The chilling truth is such movies are based more on fact rather than fiction.
       In India, the recent clash between farmers and Monsanto in its attempt to sell rice seed that would forever make farmers completely dependent on the firm for future crops and fertiliser, offended even the most broad-minded supporter of genetically modified foods.
       The self-sufficiency idea is in many ways anything but revolutionary. Sumit said all it did was speak bluntly and realistically about the failings of a consumer system that would only ruin unsuspecting farmers. The present global meltdown is a wake-up call to everyone to re-evaluate the sustainability of an immoral market system that insults the very core of capitalist principles.

BATIK TO THE FUTURE

2009-08-19T22:06:00.000-07:00

       Hmong craftswomen |in Chiang Mai revive an ancient art for a brighter tomorrow
       For the Hmong people of the North, keeping their traditional art of batik-making alive is a key to survival.
       Each piece of cloth, coated in beeswax then dyed with an exquisite design, sells for between Bt1,500 and Bt1,800 at the Doi Pui community in Chiang Mai.
       "It takes me at least one week to paint the pattern on each piece," Pra Fuangfukij-jakarn says.
       Expertly drawing an intricate design on white cloth, this 58-year-old woman reveals that she has practised the art since the age of seven.
       "Our ancestors have passed on the batik-making tradition to younger Hmong for generations. It's a useful money-spinner," Pra explains.
       Switching from opium
       The Hmong around Doi Pui used to grow opium poppies, says Pra. They switched to farming several decades ago after His Majesty the King visited the area and offered them advice and Bt200,000 to fund the development of their land.
       "Since then, my family has grown fruits and vegetables. We've also promoted our village as an eco-tourism destination. That's when we began to focus more on the batik making."
       Repertoire of designs
       The local artisans have built up a repertoire of more than 100 designs.
       "Beginners have to follow traditional patterns but more experienced craftswomen can create their own designs."
       The patterns on the fabric are drawn using a small brush and liquid beeswax. The wax-painted fabric is then dipped into indigo dye. As the dye doesn't penetrate the wax, the pattern appears after the wax is removed.
       "For a cloth of a metre and a half square, the whole task takes me 15 days," Pra explains.

TIPS ON HOW TO CREATE YOUR OWN YOU

2009-08-19T22:04:00.000-07:00

       People are not products but there are ways for you to stand out

       Can people be branded?
       If you're like most people, you're probably faithful to at least a couple of brands. Maybe it is your favourite brand of rich and tasty ice cream or a particular shampoo that does more for your hair than any other. Certain brands command higher prices than others because they are perceived as superior.
       If brands are so powerful that they can bring out such loyalty in us - the kind of loyalty that keeps us reaching into our hearts and our pocketbooks year after year - why shouldn't people be branded? Why can't we, as individuals, evoke that same kind of loyalty in our careers? In fact, think about it: If you were the "brand of choice" in your workplace, what that would it mean in terms of promotions, recognition, and higher pay?
       Now, of course, I'm not suggesting that you're a product like a tub of ice cream or a bottle of shampoo. But the truth is that we are all like shampoo because just as shampoo must offer a benefit to improve your hair, you must also offer something of value in business. Otherwise, you're out of luck...or worse, out of a job. Taking charge of your personal brand at work is exactly how you become known for what you have to offer.
       The good news is: Personal branding doesn't have to involve advertising yourself in a sandwich sign. It's not all about self-promotion! There are subtle ways you can become known for your greatest strengths and talents.
       So, the question isn't whether people can be branded. The real question is: How do you create a personal brand that makes "YOU..." - the trademarked You - the brand of choice in your workplace?
       The art of branding yourself
       Becoming the brand of choice in your workplace means that your Audience is loyal to YOU... Who is your "Audience?" They are the people who can most impact your work and career. It may be your boss, your clients, or your colleagues. These are the people whose needs you must fulfil in order to set yourself apart as uniquely valuable. Just as a corporate brand must fulfil the needs of its consumers, you must figure out the needs of your audience and focus on meeting those to the best of your ability.
       But how do you know that you're meeting your audience's needs and becoming their brand of choice?
       In my experience as a marketer, the only way to take a corporate brand to the top is to use a proven step-by-step framework that establishes a brand's position in the marketplace. And this same proven framework works for personal branding, too.
       It begins with a Personal Brand Positioning Statement that consists of the same six elements that have been used to create every top-selling corporate brand.
       I have already mentioned the first two of the six elements, but what are the remaining four?
       - Audience - The people who most affect your career or your job.
       - Need - The problems of your audience that you must help resolve.
       - Comparison - Others who could also fulfil your audience's needs, and how you can set yourself apart from them.
       - Unique strengths - The talents and strengths you bring to the job that make you memorable to your audience.
       - Reasons - The credentials and experience that will convince your audience that you can deliver your unique strengths.
       - Brand character - The aspects of your personal brand that are unique to your personality.
       These six elements fix together like a jigsaw puzzle to carefully define the personal brand you want for yourself and that can help you achieve greater success at work.
       If you haven't taken the time to carefully define what you want your specific personal brand to stand for, chances are the people you most want to influence on the job aren't clear about what you stand for either.
       How clear are you on who 'YOU...' are?
       Have a question for the branding coach? Write to Brenda@BrendaBence.com
       Brenda Bence is managing director of Brand Development Associates International. Prior to this, she spent 20 years of her career with Procter & Gamble and Bristol-Myers Squibb managing dozens of brands across four continents and 50 countries.

CLINIC PILOT PROJECT TO TARGET RUBBISH, WASTE IN COMMUNITIES NATIONWIDE

2009-08-19T22:03:00.000-07:00

       Dealing with rubbish and waste management in communities will be the next area of environmental concern targeted by the Clinic Technology project of the Ministry of Science and Technology.
       The project was set up in 2004, contributing technology and ideas from Thai researchers in the ministry's agencies and academic institutes.
       "Most needed technology related to agriculture, food and herbal drugs, and we have given them what they needed," said project manager Suwimon Inthasen. "Our staff has worked onsite for the past five years...to improve their quality of life," she said.
       Suwimon expected the latest pilot project, to help people around the country with effective rubbish and waste management problems, to start in some communities in October.
       "The ministry and the project's network academic institutes have useful research findings on rubbish and waste management. We're seeking pilot communities, considering which ideas are practical to implement, and considering the budget for this pilot project," Suwimon said.
       Local administrative organisations will help the clinic initiate proper management systems.
       So far, more than 60,000 people in over 50 provinces nationwide have been educated by 119 clinics in the technology needed to upgrade the quality of their agricultural products and other types of goods.
       They include agriculturists, small and medium enterprise (SMEs) and small and micro community enterprise owners, women's groups producing their own products for sale, and local administrative organisations.
       "Average budget spent on the project is Bt70 million per year. We contributed technology to 5,800 people during 2004, whereas more than 13,000 people have received it this year," she added.
       Patchareeporn Wutitien, a Bangkok SME owner said she had been producing and selling cereal drinks for years. The clinic had helped her upgrade the quality of her drinks and trained her at Rajamangala University of Technology Phra Nakhon (RMUTP) - on cleanliness to meet sanitation standards.
       "I'm more confident to explain medicinal properties to customers after consulting with lecturers here. The clinic also designed my products' package and trained me in marketing strategies. I learned about safe tools and production. As a result, I can now sell more products," Patchareeporn said.
       RMUTP's Assistant Prof Chuta Peeraphatchara, director of the institute of research and development, one of five technology clinics at the university, said they offered training about fabrics, food and handicrafts to people and entrepreneurs.
       "We help them study the criteria for product standards from the Thai Industrial Standards Institute, and encourage them to improve their products' quality to be good enough to pass the criteria. It will help them increase the number of their customers and make it easier for them to extend their market," Chuta said.

Gifts for any occasion

2009-08-19T22:02:00.000-07:00

       Mother's Day has passed but the gift-hunting mission is still on as the gift-giving seasons are not only restricted to birthdays and special days officially marked on the calendar. Every day can be a special occasion for everyone to offer the gift of love - especially when we come across some nice items and feel the urge to buy them for our loved ones.
       And now there's a big fair running at CentralWorld where you are guaranteed to find a variety of quality products from many royal projects, including organic produce, processed foods, Thai desserts, handicrafts,wickerwork and home decorative items such as lovely ceramic pieces and glass sculptures.
       This is a good chance to build up your own collection of gifts to give to each of the special persons when the time is right. The recommended items here are from the shops under the management of the Royal Project,including Phu Fah Shop, Chulabhorn Research Institute, the Sai Jai Thai Foundation, the Princess Pa Foundation and Bangsai Arts and Crafts Centre.
       Not only will you appreciate the distinguished features of the local products and the unique skills of our local folk, you will also find your heart filled with joy while choosing the items for each of the persons in your mind.RT
       All items are available during the "Royal Project 40@CentralWorld" which is running at CentralWorld until Aug 16. For more information, call 02-640-7000 ext 1303.

SOCIAL NETWORKING FOR CORE INDUSTRIES

2009-08-19T22:01:00.000-07:00

       Software Park Thailand and its parent organisation, the National Science and Technology Development Agency, are working with the Industry Ministry to set up pilot projects using service-based technologies aimed at lifting the performance of Thailand's core industries, tourism agriculture.
       Manoo Ordeedolchest, president of Software Park Thailand's board and a member of the NSTDA's board, said the park would fill the role of a technology supporter. Initially, it will help to produce human resources with service-based technology skills, but eventually it will develop a service-based platform called a Digital Connected Service, to work for the two flagship industries.
       In part, the move is a bid to drive and promote the local software industry in the new era of a service-based economy. The park plans to be more proactive in promoting and building awareness of service-based technologies among local software businesses.
       The key to service-based technology is service-oriented architecture (SOA). There are two main styles of Web services developed by SOA: simple object access protocol (Soap) and representational state transfer (Rest). The goal is to identify component-based software technology that will enable small-and medium-sized software companies to develop software in compenent form, rather than as completed applications or solutions.
       One example of a Rest-based SOA is Amazon's affilate network - or, for that matter, any e-commerce affiliate network. Another example of a Rest-based SOA is Google's AdSense network. REST-based SOAs are bound to see much wider adoption throughout the web than Soap-based SOAs.
       Manoo said the park planned to promote and build awareness of Rest-based SOAs among local software companies.
       "Rest-based SOAs are lightweight SOAs that suit small- and medium-sized enterprises (SMEs). They can be designed and developed for easy, uncomplicated tasks. A viral effect is built around this kind of SOA.
       "The park will join with universities in promoting this kind of technology through interdisciplinary curricula," he said.
       Meanwhile, the park is also planning to launch a social website in the next two months to promote component-based software technology throughout the online community. The website will initially offer 40-50 component software prototypes designed according to REST-based SOA. By the end of this year, it plans to have about 200 component-software pieces available.
       "This social website will be designed as a component-software marketplace for both users and developers. Users, especially SMEs, can visit to find the component software they need, by shopping or posting their requirements. Software houses will then have a great channel by which to reach the market - especially SMEs - and will have a chance to learn and work on SOA," Manoo said.
       As well, Software Park Thailand will introduce its Digital Connected Service, which it hopes will apply the principles of current popular social networks to the real industryh sectors.
       The park will work with partners to integrate the social network technology and Web 2.0 with "last mile" communication channels such as community radio, to deliver information and services to agricultural producers and tourism businesses in remote areas.
       "This pilot will be a trial for integration and use of advance technology - Web 2.0 - and traditional communication - community radio channels. It will not only prove the concept of blending these technologies to help lift up the country's core real sectors, but also create new market opportunities for local software businesses," Manoo said.

Thai silk in the AEM spotlight

2009-08-19T22:00:00.000-07:00

       Asean trade and industry ministers will receive special silk mementoes during the 41st Asean Economics Ministers(AEM) Meeting that runs from today to Sunday in Bangkok.
       The move is part of the plan to promote the Kingdom as a regional handmade-silk hub.
       For the male delegates, the Commerce Ministry has prepared silk bathrobes with their names embroidered on them, while the ladies will receive a silk shawl, also with their names on them.
       These souvenirs have been produced by popular silk clesigner Jim Thompson.
       Prime Minister Abhisit Vejjajiva will also highlight the elegance of Thai silk through specially desiged shirts to be worn during today's opening ceremony at the Asean Fashion Plus Trade Fair.
       This silk will be from the Bangsai Arts and Crafts Centre, which was founded by Her Majesty the Queen Sirikit on December 7, 1984.
       In addition, silk designs will be made for the national dress of all 10 Asean members and six trading partners participate in the AEM Meeting.
       Trade and Industry ministers from Asean and six trading partners-China, Japan, South Korea, India, New Zealand and Australia-will be invited to participate in the opening ceremony. They have been asked to submit samples of their national attire, and as Asean fashion show will be one of the programme highlights.
       This activity will help serve as a showcase for Thailand's readiness to serve as a regional hub for fashion and silk products.
       Delegates will aslso be invited to visit the Bangkok International Fashion Fair and Bangkok International Leather Fair 2009 at Muang Thong Thani's Impact Exhibition Centre, which coincides with the AEM Meeting.
       And on Saturday, they will attend a gala dinner at the Royal Navy Convention Centre.
       Led by Thai Commerce Minister Porntiva Nakasai, lady ministers from Asean will take to the catwalk and model Thaisilk apparel by local designers.
       The AEM Meeting will be a good opportunity for the Kingdom to promote Thai silk as a premium-grade-fabric with multiple uses in daily life. Having Asean ministers wear clothing madel Thaisilk apparel by local designers.
       The AEM Meeting will be a good opportunity for the Kingdom to promote Thai silk as a premium-grade fabric with multiple uses in daily life. Having Asean ministers wear clothing made from Thai silk will also be good advertising.

Arts of the Kingdom

2009-08-19T21:58:00.000-07:00

       No idea where to take your beloved mother to on Mother's Day today? Visit "The Arts of the Kingdom V" exhibition at the Ananta Samakom Throne Hall, Dusit Palace.
       FROM LEFT - The Gold Niello Bhudthan Throne - The Sri Suphannahongse Royal Barge - The Gold Damascene Bhudthan Throne.
       The exhibition features exquisite but rarely seen traditional Thai crafts that reflect decades of work initiated under the Support Foundation (Supplementary Occupations and Related Techniques) of HM the Queen.
       The highlights include a model of the Sri Suphannahongse Royal Barge, Busabok Chaturamook Bhiman Throne, the Gold Niello Bhudthan Throne, the Gold Damascene Bhudthan Throne, Sivikakarn (covered palanquin), an embroidered Himavan Forest Screen and an octagonal-shaped room decorated with beetle wings.
       The exhibition is free (on Mother's Day only) and is open to the public and is open from 10am to 6pm. Appropriate attire is required.
       Call 08-1904-1000.
       Sivikakarn.

HM the King in great shape, says Queen

2009-08-19T21:56:00.000-07:00

       Her Majesty the Queen says His Majesty the King is hale and hearty and remains dedicated to working for the good of his people.
       The Queen yesterday talked about the King's health during her birthday address to a gathering of cabinet ministers, senior government officials and members of the public who went to the Dusitdalai Pavilion inside the Chitralada Palace to wish her well on the eve of her 77th birthday today.
       She was accompanied by His Royal Highness Crown Prince Maha Vajiralongkorn and Her Royal Highness Princess Maha Chakri Sirindhorn and other members of the royal family
       The Queen said the King now lived at Klai Klang Won Palace in Prachuap Khiri Khan's Hua Hin district where he benefitted from a healthful climate.
       The King is healthy, exercises regularly by walking and can perform his duties such as receiving foreign guests and inspecting royal projects in Hua Hin, the Queen said.
       She said it is now impossible for the King to work as hard as he did decades ago when he was strong and vigorous,although he has always followed the progress of projects to help ease the plight of the people, particularly measures to deal with floods.
       "His Majesty cares very much about his people. He is concerned about flooding and is looking for ways to prevent it," the Queen said.
       She said in the past when the King travelled long distances to visit people in remote rural areas, he always drove himself and carried maps wherever he went to examine geographical details.
       His Majesty visited people in all regions of the country to see for himself their hardships so he could think of ways to help them according to their varying needs.
       His Majesty has initiated more than 3,000 royal projects aimed at improving the livelihood of people in all regions and has continued to work for the good of the people for almost 60 years.
       "His Majesty said he was delighted when he learned his people were happy,"the Queen said.
       The Queen also spoke about a project to make artificial reefs off the coast in Pattani's Mai Kaen district.
       The project was introduced after local people complained to Her Majesty about depleted fish stocks in the sea.
       She said the project had now become a success and the artificial reefs were home to an abundance of marine life with rare fish species beginning to reappear.
       Her Majesty asked Prime Minister Abhisit Vejjajiva and the relevant government agencies to support the project to create artificial reefs in other provinces in the South.
       She also talked about the nutritional value of rice which is widely recognised and urged more consumption of the grain.
       At one point of her hour-long speech,the Queen praised villagers for their remarkable artistic skills in making exquisite traditional handicrafts which are now on show at the Ananta Samakhom Throne Hall.
       The Queen said the handicrafts were described by foreign visitors as "worldclass".