Insights Into Recruitment Trends in Thailand - AMCHAM Thailand
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Thai-
American
Business www.amchamthailand.com
Journal of The American Chamber Of Commerce In Thailand • Volume 1, 2019
Insights Into
Recruitment Trends
in Thailand
Also in This Edition:
• Thailand’s Healthiest Workplace by AIA Vitality 2018 Survey
• CSR Special Award Winners
• AMCHAM and ATF 2018 Financial Reports
• ATF Scholarship Recipients
2 Thai-American Business - Volume 1/2019
Contents THAI-AMERICAN BUSINESS
I S S N - T- A 0 1 2 5 - 0 1 9 1
Volume 1 | January - March 2019
LETTERS MEMBER NEWS
6 From the President 34 BHMA Pens Second Phuket Deal
38 From the Executive Director 34 Scaling Impact through Innovation
FEATURE STORIES AMCHAM THAILAND
10 Insights Into Recruitment Trends in Thailand FOUNDATION
12 Thailand’s Healthiest Workplace by AIA Vitality 36 ATF Scholarship Recipients Talk About
2018 Survey Impact
14 18
16 20
SPECIAL UPDATES AMCHAM GOVERNMENT AFFAIRS
14 2018’s ACE Winners Impact 42 Guiding Goverment Engagement
22 AMCHAM Treasurer’s Report 2018 Audited
Financial Statement EVENTS ROUNDUP
27 2018 Report of American Chamber Of 44 Social Networking at Hyatt Regency Bangkok
Commerce In Thailand Foundation Sukhumvit
47 Managing Tourism – Ensuring Great Experiences
LEGAL UPDATES and Sustainable Outcomes
30 Thai Government Reduces Fees for Company 48 Webster University ChariBowl Tournament 2019
Registration and Simplifies Registration 50 AMCHAM Committee Meetings
Procedures
32 Thailand Legalizes Cannabis for Medical Use NEW MEMBERS
and Research 52 AMCHAM Welcomes New Members
Cover Photo: Northwest corner of Sukhumvit Road and Asoke Montri Road in Bangkok
4 Thai-American Business - Volume 1/2019
Letter from the President
AMCHAM BOARD OF GOVERNORS 2019
PRESIDENT
Gregory Bastien,
American Axle & Manufacturing
VICE PRESIDENTS
Daniel Abate,
Chevron Thailand Exploration & Production
Tibor Pandi, Citibank
David Nardone, WHA Industrial and International
Dale Lee, CoffeeWORKS
TREASURER
Jeremy R. Osterstock, Esso (Thailand)
SECRETARY
George Hartel, NaRaYa
GOVERNORS Dear AMCHAM Members,
Parnsiree Amatayakul, IBM Thailand
Herman J. Ehrlich, Conrad Bangkok
Viboon Kromadit, AMATA Corporation
At the end of 2018, the Board elected me to my first term as President
Jennifer Peng, Colgate Palmolive Thailand
of AMCHAM and it is an honor to serve the Chamber in this capacity.
Ornkanya Pibuldham,
Bank of America Merrill Lynch I am excited for the changes that are taking place at AMCHAM as we
Ian Nicholls, General Motors modernize our offerings for the benefit of all our members.
Jeffrey Nygaard, Seagate Technology
Yukontorn ‘Vickie’ Wisadkosin, After first arriving in Thailand in 2011, I have been living in Pattaya with my
Ford Motor Company family as Managing Director for American Axle and Manufacturing. Now
that I am your President, I will be spending more time in Bangkok, but
BOARD ADVISORS
also look forward to welcoming you to AMCHAM events on the Eastern
David Lyman, Tilleke & Gibbins International
AMCHAM President in 1975, 1986 Seaboard. The Eastern Economic Corridor (EEC) is a high-priority for
Harold Vickery, Jr. Thailand to develop for foreign investment and my experience here has
Prem Tinsulanonda International School been very positive.
AMCHAM President in 1984
I would like to take this opportunity to thank the 2017-2018 President,
EXECUTIVE DIRECTOR
Jeffrey Nygaard, for his tireless efforts in seeing AMCHAM through the
Heidi Gallant
hiring of AMCHAM’s new Executive Director, Heidi Gallant. I also want
to express my deepest appreciation for the members of the Board of
T-AB Magazine is published quarterly by
Governors and all the Committee Leaders who provided stability during
The American Chamber Of Commerce In Thailand the transition period; all of you are critical to the Chamber’s mission and
7th Floor, GPF Witthayu Tower A have provided Heidi with a wealth of education on AMCHAM activities,
93/1 Wireless Road, Bangkok 10330 history, advocacy concerns, and traditions.
Tel: +66 (0)2 254-1041 Fax: +66 (0)2 251-1605
www.amchamthailand.com
The Board of Governors, Committee Leaders, and AMCHAM’s secretariat
Editorial Advisory Board: Heidi Gallant, Harold Vickery, Jr. met mid-January for a strategic planning session to discuss charting the
Editorial Team: Chamber’s course for 2019 and beyond. The Chamber is committed
Sarawan Dever, Meagan Anderson to increasing membership, enhancing member benefits, engaging
Artwork & Layout: Phaisan Nangnoi more people from each member company, and modernizing our
Production: Scand-Media Corp., Ltd communications with our members. We will also have an increased focus
Tel.: +66 (0)2 943-7166/8 Fax: +66 (0)2 943-7169 on advocacy, and are building relationships with many areas of the Thai
Email: scandmedia@scandmedia.com government.
Any opinions expressed in articles in this magazine
do not necessarily reflect the views of the Chamber.
T-AB Magazine welcomes contributions from MEMBERSHIP SERVICES
AMCHAM members. Articles may be reproduced
with acknowledgement, except those taken AMCHAM provides an array of services to keep member companies
from other sources.
informed and connected, in addition to acting as a conduit for new U.S.
companies seeking to do business in Thailand.
6 Thai-American Business - Volume 1/2019
The Chamber currently communicates with Student Scholarship Program, and we are in currently
members through a number of channels and on a in search of auction items. Please consider donating
number of platforms—printed materials including products or unique experiences, such as a wine tasting
T-AB Magazine and the Membership Directory, or adventure experience. We also hope you’ll directly
weekly e-mail briefs, the website, Facebook, and support individual students through our Adopt-A-
LinkedIn. In 2018, we unveiled a new website Student program.
and membership directory for members, and the
secretariat is exploring additional tools with which
to improve our productivity. There are many new AMCHAM and ATF FINANCIAL STATEMENTS
digital tools at our fingertips, and we want to ensure
we use the most cost-effective and efficient ways The 2018 Treasurer’s reports and financial statements
to serve our members and the organization as a for both the Chamber and the American Chamber Of
whole. Commerce In Thailand Foundation can be found on
pages 22 and 27.
While the Chamber continues to support networking
events, monthly meeting lunches, and committee Although this year’s Chamber financial statement shows
meetings, we have two new series of events already a deficit of just over four million Baht, this was expected
underway: the AMCHAM Insight Exchange and the and budgeted in advance. The Chamber is fortunate to
Women on Board Discussion Series. The former is have a healthy cash balance and during the budgeting
a monthly meeting of a diverse group of members to process for 2018, the decision was made to use some
explore solutions to their business problems. After of the cash on hand rather than increase dues.
introducing themselves and their business, members
ask for help with new business leads, hiring, referrals Please review the statements in this issue and stay
or other specific topics on their agenda at that time. informed about how the Chamber spends membership
Over a simple lunch, we all work to help each other dues. Any questions you have may be directed to the
with these issues. This format is very productive and AMCHAM Treasurer or Executive Director.
the first events have resulted in great feedback from
our guests.
2019 STRATEGY
The latter event is an informal discussion with women
who serve on non-profit boards. It’s a discussion AMCHAM will focus in 2019 on increasing our
about how to get the most from your volunteer hours membership. We know there are more companies that
and what this service can mean for your career. can benefit from our services and we plan to encourage
We know that many organizations are struggling to them to join our network. We are expanding the
diversify their boards and we want to spread the member-to-member discount program and increasing
word about these opportunities and help women to the number of people at each company who can take
find them. advantage of the member benefits. We will continue
to improve our communications strategy, bringing you
more information digitally than through our traditional
COMMUNITY ENGAGEMENT print avenues. We will continue to be one of the most
active foreign chambers in Thailand, giving members
AMCHAM, through the American Chamber Of many opportunities to share information, network
Commerce In Thailand Foundation (ATF), continues and contribute to Thailand. The relationship between
to invest in the future of Thailand by providing Thailand and the United States is healthy and the
scholarships for Thai university students. These ATF Kingdom has a strong interest in recruiting more foreign
programs are administered under the guidance of investment to Thailand. We see this as an opportunity
the AMCHAM Community Projects Committee. We for AMCHAM to advocate for a better business
were pleased to see many long-serving Committee environment with the new democratic government and
members return at the last meeting, as well as also to increase the numbers in our network.
welcome a number of new members looking to
get involved with our charity arm. In 2018, we Best Regards,
provided scholarships for 174 university students
with financial needs. This year’s career camp should
welcome about sixty of our graduating students to
Bangkok for mock interviews and job search advice.
The upcoming Silent Auction during the Governors Gregory Bastien
Ball is the biggest source of funding for the ATF AMCHAM President
The American Chamber Of Commerce In Thailand 7
18 • American Chamber Of Commerce In Thailand 8 Thai-American Business - Volume 1/2019 AD AAM 2013
Amplify Your Voice through Thought
Leadership with AMCHAM
AMCHAM is seeking member submissions
for our T-AB Magazine and website.
Subject Guidelines
Future issues of T-AB Magazine will focus on the themes of CSR, Education,
and Training, and we are actively soliciting articles on these topics. We also
welcome articles about new legal and regulatory developments; knowledge
sharing and best practices; and any topics affecting the business climate in
Thailand.
We do ask that articles be on topics of general interest and demonstrate
thought leadership by including original research, information, or analysis.
Articles should not be primarily self-promotional or focus on member news;
this type of information – for example, press releases – may be submitted to
our communications team, but will be compiled in a separate section under
Member News.
Format Guidelines
Articles should be sent in editable format, accompanied by 2-4 images.
Images should be unedited and saved in .JPEG format with a resolution of at
least 330 dpi. Please include captions. Charts and graphs should be sent in
PDF format with title.
Please provide the author’s position, organization, and e-mail address, as well
as a recent headshot style photo. Feature articles for T-AB Magazine should
be approximately 500-800 words, and may be edited for length or clarity.
Contributions for the website may be shorter.
Submission deadlines for T-AB are May 15, August 15, and November 15.
Website articles may be submitted on a rolling basis.
For submissions or
inquiries please contact our
communications team at
comm@amchamthailand.com.
The American Chamber Of Commerce In Thailand 9
Feature Stories
Insights Into Recruitment
Trends in Thailand
By Zipporah Goetze and Richard Jackson
2
019 will see some game current available databases and Next Generation Talent and the
changers in the realm CRM software. The end goal for this Evolving Workplace Dynamics
of recruitment. Despite relationship between recruitment
strong global headwinds, and tech would be to reach a point We’re witnessing a very interesting
Thailand’s economy has proven where the bulk of the processing time in the Thai labor market. There
to be quite resilient and strong time could be significantly is a changing demographic ratio of
with high domestic demand, streamlined. However, this is still the current labor force, which has
stemming from an upswing in both very much in its infancy, as we are given rise to a more competitive and
private consumption and private still dealing with the first generation robust labor market, as well as the
investment. The Asian Development of such software. There are features following:
Bank’s revised 2019 models predict in sites like LinkedIn that already
that the Thai economy will see a lean towards such a function but • Language capabilities of
4.3 percent growth. LinkedIn’s market share in Thailand is candidates. This remains a top
significantly less than other countries requirement for recruiters and
AI Disruption and the Evolution in the region – i.e. Singapore. hiring companies alike. As the
of Recruitment language of ASEAN, and the
For highly repetitive, low- lingua franca of the business/
The talk of technological disruption skilled jobs, expect to see the corporate community, English
is everywhere but very few really proliferation of chatbots and remains imperative for those
dig deep into how disruptive tech automated interactions during the seeking a career with any MNC.
and the likes of hacking affect the hiring process. California-based Candidates without such skills will
way in which recruiters operate. customer interaction platform continue to encounter barriers to
For recruitment agencies and Alorica’s chatbots have already career progression.
professionals, all that this really made their way into the Philippines
means is using tech to essentially and screened and estimated • Changing workplace dynamics.
break, streamline, and subvert 100,000 candidates for their In overall recruitment trends, we
conventional wisdom – it is more overall Asia operations. When we see a bit of a culture clash. The
than simply taking all the work online. speak of disruptive technologies, new generation of workers that
we should look at how it can are entering the workforce at
Currently, acquisition professionals impact the highly repetitive work the corporate level increasingly
tend to spend about a third of their that recruitment agencies currently demonstrate an entirely
time screening candidates using have. different and evolving mindset
PRIZES NEEDED FOR GOVERNORS BALL SILENT AUCTION
We are searching for fun, interesting and/or valuable
prizes for the silent auction to be held at the A few of the great auction prizes to date:
Governors Ball on April 27. Our “PAN AMCHAM” - United Airlines / American Airlines / Cathay Pacific /
Governors Ball Silent Auction has a goal to raise Baht EVA Airlines tickets to USA
two million towards supporting scholarships for - Hotel stays throughout Thailand
disadvantaged, motivated and hard-working Thai - I-Phone X
university students. We need your help to source or - Lay-Z-Boy Recliner
provide prizes. - Jewelry
All donations will be recognized! - Technology from Seagate
- Stanley tools
To donate a prize for the silent auction, please contact - Gift baskets and more........
sheree@amchamthailand.com or Tel. 02-254 1041 ext
212.
10 Thai-American Business - Volume 1/2019from their predecessors. This
new fleet of professionals
have had more exposure to
overseas education working
environments and mindsets
which have influenced their
working style. Many MNCs
have tried to act as a bridge
between this clash of cultures,
but the truth of the matter
remains that this independent,
more modern style of working
is in stark contrast with the
traditional hierarchical structure
of many Thai workplaces.
• The recruitment processes. How
we recruit new talent is constantly
changing. Everything from the
mediums we advertise through to
the length of the entire process is Richard Jackson is the General Manager of RLC Recruitment,
being called into question. and Co-chair of the AMCHAM HR Committee. RLC has earned
a reputation as one of Thailand’s leading boutique technical &
While Facebook and online job senior executive search companies. RLC uses a consultative,
boards have been lauded for personalized approach to support their multinational clients
bringing on-the-go recruitment to attract and retain high potential local and international
to the masses – they too are candidates to build a talent pipeline.
becoming obsolete. It’s not
enough to simply have a page
with text, you need strong Over the past seven years, RLC has garnered extensive
branding and a clear concise experience in manufacturing, niche engineering and technical
voice to attract quality talent. industries, such as renewable energy, life science and
aerospace alongside traditional strengths in automotive,
• Job descriptions (JD). packaging, consumer products and supply chain/logistics.
According to a study conducted
by the job-search firm
theLadders, fourty-four percent adaptability, and the potential sphere remains one that often
of job-seekers claimed to spend for career growth are always involves gate-keepers and word of
only one to five minutes reading major components of the mouth referrals.
job descriptions before deciding hiring company – areas which
whether to pursue them or not. are rarely covered in a job However, in today’s digitally
It wouldn’t be a stretch to say description. conscious, social, and research-
then that the lengthy, convoluted driven workforce, it will become
job descriptions lose candidates Social Recruiting: The Need for easier to find out about a
because they fail to concisely Employer-Business Membership company’s operations and
summarize their expectations. Organizations standing in the local community.
In an age of increasingly agile The legal changes seen in the
talent, traditional JDs also can While Thailand’s strict defamation way companies are able to
be seen as having a silo-effect laws are in place, companies communicate with their target
for candidates who may be like Glassdoor – a site which demographic, such as GDPR,
looking at cross functional or allows candidates to review their mean that sooner or later we will
project-based work. I can safely company – may yet be held at bay. need to build strong communities
say that when approaching Currently, roughly fifty per cent of that people will want to actively
assignments, a job description RLC’s executive placements are join. This will eventually mean an
is usually representative of fulfilled using a hybrid approach of overhaul of the way recruitment
fifty percent of the role’s technology, referral networks and companies operate leading to the
requirements at best! Aspects proactive approaches to potential use of more tech, fewer clients, but
such as workplace culture, candidates. Thailand’s recruiting closer relationships.
The American Chamber Of Commerce In Thailand 11Feature Stories
Thailand’s Healthiest Workplace
by AIA Vitality 2018 Survey
T
hailand’s Healthiest the risk of developing a chronic interviewed are suffering from at
Workplace by AIA Vitality condition. least one facet of work-related
2018 Survey revealed that stress, 5% of employees have
organizations in Thailand The study showed that 39% of high levels of anxiety or depressive
are losing an average of 73 days of employees in Thailand surveyed do symptoms, and 27% of employees
productive time per employee each less than 150 minutes of physical noted they had a lot of financial
year due to health-related absence activity per week, and 45% sleep concerns at present.
and presentieesm, compared to less than seven hours, compared
49 days in Australia and 74 days in to around 10% and 27% in Meanwhile, Thailand reported a
other Asian countries. The average Australia respectively. While just lower percentage of employees
yearly cost per organization is 1.2% of Thai employees exceed than Australia and other Asian
estimated at 6,169,237 Thai baht. recommended consumption limits countries at risk in the area of
of 14 units of alcohol per week (1 clinical health. Just 7.3% of
The 1st year of this science-based unit = 275 - 330 ml small bottle/ interviewed employees are obese
workplace study focusing on the can beer with 3.5% or less alc. (BMI higher than 30), which is
health and well-being of employees vol. or 100 ml. glass of wine with lower than the 17.4% in other Asian
surveyed 146 organizations, 12.5% alc. vol. or 25 ml whiskey markets and 17.6% in Australia.
representing a combined workforce with alc. vol. 40%) and only 7%
of 7,539 employees across are current smokers, more than Over eight-tenths (83%) of
Thailand. The study showed 84% of employees do not eat a employees in Thailand reported
that poor lifestyle choices and balanced diet. symptoms of one or more
mental health are issues for Thai musculoskeletal conditions
employees, which can lower As for mental health, the survey compared to 84% in Asian markets,
workplace productivity and increase found that almost half of employees among which shoulder and
neck pain are the most common
symptoms.
In addition, 24% of participating
employees in Thailand reported
one or more chronic conditions,
compared to 30% and 37%
in Asian markets and Australia
respectively. These chronic
diseases include high blood
pressure, diabetes, heart disease,
and cancer.
Despite these findings, the
research demonstrates that
Thailand’s employers are aware
of the importance of workplace
health interventions. A total of 93%
of employers have offered at least
one health and wellbeing program
or facility in the workplace, while
56% of employees participated in
at least one workplace intervention
and indicated that the interventions
positively impacted their health.
12 Thai-American Business - Volume 1/2019The “Healthiest Workplace by AIA combined workforce of 24,187 Healthiest Workplace
Vitality” study was developed by AIA employees.
• Small organization
Group and delivered in partnership
- Public Health Center 16
with RAND Europe since 2017. The The Healthiest Workplace by AIA
Lumpini
survey examines data on employee Vitality also recognises excellence
• Medium organization
lifestyles, clinical indicators, mental in workplace wellness across
- WE Fitness Co., Ltd
health, stress, and other areas three award categories; Healthiest
• Large organization
of concern, with the objective of Workplace, Healthiest Employer
- Phyathai Sriracha Hospital
assessing the associated impact and Healthiest Employees and
on health and productivity. three organization sizes; Small
Healthiest Employer
• Small organization
- PTT Polymer Marketing
Thailand reported a lower percentage Company Limited
of employees than Australia and • Medium organization
- Grand Hyatt Erawan Bangkok
other Asian countries at risk in the • Large organization
- Advanced Info Service Plc.
area of clinical health.
Healthiest Employees
In 2018, the wider Healthiest (20-249 employees), Medium • Small organization
Workplace survey, (250-999 employees), and - Public Health Center 16 Lumpini
encompassing Australia, Hong Large (1,000- employees). • Medium organization
Kong, Malaysia, and Thailand, The winners of the first-ever - WE Fitness Co., Ltd
involved the participation of 340 Thailand’s Healthiest Workplace • Large organization
organizations representing a by AIA Vitality awards are: - Phyathai Sriracha Hospital
The American Chamber Of Commerce In Thailand 13Special Updates
2018’s ACE Winners Impact
Winners from last year’s AMCHAM Thailand’s CSR Excellence awards speak on
their projects and subsequent impact
For the past ten years, AMCHAM Thailand has acknowledged outstanding commitment in CSR awards with
the American Chamber Of Commerce In Thailand Corporate Social Responsibility Excellence Awards; ACE
for short. Each member striving for this recognition has exemplified excellent work within their company’s
CSR initiatives. For more information, please email Kittie at kittie@amchamthailand.com
Cargill Siam Ltd. encouraged to create their own
Winner of the 2018 AMCHAM menu from our listed ingredients.
CSR Excellence Special Award The competition was closely super-
“CSR Excellence (under One vised by teachers and volunteers
Million Baht)” to ensure that the children cooked
safely and were engaged in learn-
Name of CSR Initiative: Cargill ing around nutrition throughout the
Cares: Healthy School Project competition.
At Cargill, we are committed to The Cargill Cares Volunteer Program
our community and strive to lead engages over two hundred employ-
the private sector in nourishing ees in building school greenhouses
the world in a safe, responsible, for growing organic vegetables to
and sustainable way. We strongly rich meals that they need to grow. use in the school’s lunch programs.
believe that every child deserves We also encourage parents to join This project saves on school food
nutritious and healthy meals. the school’s kitchen staff to prepare expenses while providing fresh and
meals, building a stronger sense of nutritious vegetables for students
The “Cargill Cares School Lunch” community and easing the burden of and staff.
program started in 2014. After sur- expenses borne by the school.
veying nearby schools, we identi- 2019 marks Cargill’s fiftieth anniver-
fied opportunities to improve child In 2018, Cargill Cares initiated a new sary in Thailand and we are making
nutrition, particularly with respect activity in honor of World Food Day. special efforts to celebrate this mile-
to protein, which plays a key role The Cargill Master Chef Junior Com- stone. Our goal for 2019-2020 is to
in developing learning ability. As petition is a half-day event providing extend our program to encompass
a result, Cargill began to provide primary students the opportunity to at least fifty schools and five thou-
protein and other age-appropriate learn more about nutrition and raise sand students. We have partnered
nutritional requirements. Today, the awareness of global hunger and with Save The Children to extend our
Cargill Cares Healthy School Project the prevention of food waste. The reach and further our efforts to see
consists of three major activities: the program highlight was a cooking children grow healthy, happy, and
Cargill Cares Nutrition Program, the competition in which children were ready for the future.
Master Chef Junior Competition, and
the Cargill Cares Volunteer Program.
The Cargill Cares Nutrition Program
provides over 400,000 healthy
meals annually to fourteen schools
and 1,300 students in Saraburi and
Nakorn Ratchasima provinces and
will be expanding to schools near
our other factory.
With support from Cargill, schools
are now able to reduce their lunch
costs and allocate funding else-
where, knowing that the children
are being provided with the nutrient
14 Thai-American Business - Volume 1/2019Special Updates
Cisco Systems (Thailand Ltd.) backgrounds. More than one industries and shaping the
Winner of the 2018 AMCHAM: million students train through the modern world, future jobs, and
CSR Excellence Special Award program each year. Across Asia opportunities for graduates.
“Excellence in Education alone, there are 980 academies
Partnership (Ambassador’s in twenty-five countries, with over • Women Rock-IT, a quarterly
Award)” 160,000 students. live TV broadcast which
communicates the benefits of
Name of CSR Initiative: Cisco In Thailand, Cisco has supported a career in IT by talking about
Networking Academy the training of 49,725 students the types of work performed by
since 1999, through fifty- women and how technology
Cisco Networking Academy three partnerships with higher plays a key role in their business
is a global education program educational institutions, vocational success. Invited speakers
that teaches students how schools, public sector agencies represent different career
to design, build, and secure and the non-profit sector. Apart stages, occupations, and
computer networks for increased from the curriculum and platform businesses.
access to career and economic that Cisco provide, we continue to
opportunities. Through online organize activities such as: Ninety-five percent of our students
courses, interactive tools, hands- in Thailand who have completed
on learning activities and network • Cisco Networking Academy the Cisco Certified Network
simulations, students prepare Student Competition, which Associate (CCNA) program report
for ICT careers in virtually every utilizes Cisco’s web technologies that the program has assisted
type of industry. Our Networking to create an interactive them to gain a new job or a better
Academy helps students build networking skills contest that educational opportunity.
twenty-first century skills such enhances classroom learning,
as collaboration and problem unites students from across As technology evolves, Cisco
solving by encouraging practical the world, and promotes further Networking Academy will continue
application of knowledge. technology education and to develop our curriculum to
training. incorporate trends such as IoT
Since 1997, Cisco Networking Security, CCNA Cyber Ops,
Academy has grown from a small- • Find Yourself in the Future, a live and Python Programing, while
scale project to the world’s largest TV broadcast hosted by Cisco continuing to equip our students
e-learning program, operating in which Cisco experts share with both the technical and the
in 165 countries and reaching their knowledge of advanced soft skill sets that are so vitally
students of all socio-economic technologies that are transforming needed in the workplace.
16 Thai-American Business - Volume 1/2019Special Updates
Microsoft (Thailand) Limited Redemptorist Foundation in the 21st century – they become
Winner of the 2018 For People with Disabilities, prepared not only to use apps and
AMCHAM CSR Excellence International Rescue Committee websites today, but to create the
Special Award “Excellence (IRC), and the Mechai Foundation apps and websites of the future.
in Developing Smart People” -- have provided essential digital
literacy and computer science Program beneficiaries typically
Name of CSR initiative: training for over 400,000 students show further interest in advanced
Equip All Youth to be Future since 2014. These programs curricula and repeat participation
Ready through Digital Skills especially target youth with low in similar STEM programs
and Computer Science Edu- access to computer science offered by Microsoft and partner
cation training. This includes students organizations. These include the
with physical disabilities, residents UNESCO & Microsoft Hackathon
A core part of Microsoft’s mission of the three southernmost Thai for Culture and Peace; and the
is to equip youth around the provinces, displaced youth in Accessible Learning Hackathon:
world, young Thais among them, refugees’ camps, and female Solving the Right Problems
with digital skills, helping them inmates; as well as NGO staff, for Students with Disabilities,
achieve their goals and overcome volunteers, and educators. These in partnership with Ministry of
educational disadvantages in education initiatives ensure that Education and UNESCO.
today’s digital economy. Young more young Thais are future-ready
people play an important role in and have access to the key digital In 2018, Microsoft jointly founded
innovative development and Thai skills that employers seek. the Coding Thailand project with the
youth are on par with their peers Digital Economy Promotion Agency
worldwide. Experts predict that automation (DEPA) and code.org. Which aims
will impact or replace more than to promote computer science
Microsoft, together with its half of jobs globally. Digital skills education. Codingthailand.org is a
partners -- the Ministry of Digital are essential to open the door Thai language computer science
Economy and Society (MDES), to greater economic opportunity. learning website, which offers
Ministry of Education (MOE), Unfortunately, these skills are code.org’s high quality curriculum
National Electronics and Computer beyond the reach of many youth, and resources at no cost. Built
Technology Center (NECTEC), especially those who live in on Microsoft’s Azure platform, the
Digital Economy Promotion Agency impoverished and marginalized website provides a sustainable online
(DEPA), Code.org, UNESCO, communities. By giving students community where knowledge and
International Telecommunication access to computer science entertainment are combined to spur
Union (ITU), Change Fusion, training – foundational to education youth interest in computer science.
18 Thai-American Business - Volume 1/2019The American Chamber Of Commerce In Thailand 19
Special Updates
Minor International Public Co., beginning with the orientation initiatives to develop the Economic
Ltd. (MINT) Winner of the 2018 program which introduces them to Eastern Corridor (EEC), Minor,
AMCHAM CSR Excellence the company history, culture and in partnership with Bangsaen
Special Award “Excellence in labor practices. In subsequent Technical College, recruited twenty
CSR Project Award” on-site training, students are high-school graduates from Plook
introduced to different job Ton Kla project. This partnership
Name of CSR initiative: Equip requirements. Minor employs provides the opportunity for
All Youth to be Future Ready a blended learning approach students to work for income while
through Digital Skills and following the 70-20-10 learning studying in the 2-year program.
Computer Science Education model: 70% on-the-job training,
20% online, and 10% classroom, In April 2019, Minor will officially
Minor Corporate University (MCU), and has developed a competency- open the SPA Learning Center, with
spearheaded by Minor Food, is a focused curriculum. a specially developed curriculum.
three-pronged initiative to develop Students will study at college for the
human capital in Thailand, comprising Students are evaluated on a first and third semesters, and work
of an internship program (320-350 monthly basis by their direct at the Minor Hotels MSPA in the
hours); training programs in cooper- managers and receive feedback on second and the fourth semesters.
ation with universities (4-6 months); their performance for further career
and training programs in partnership development. All trainings and Starting in 2018, the training
with vocational schools (1-2 years). evaluations are recorded in MCU programs expanded to include Minor
passports. Minor surveys students Lifestyle, the company’s lifestyle
By participating in the training annually to assess program brand distributor. Initially piloted with
programs, students gain hands-on success and identify opportunities the brands Charles & Keith and
experience and earn income, while for improvement. Anello, this program will expand in
earning academic credit towards 2019 to OVS, Etam, Bossini, Esprit,
their degrees. This has far-reaching Minor equips vocational school and Zwilling J.A. Henckels, and allow
economic and social impact, while at teachers with on-site training, so students to work as salespeople at
the same time increasing Minor Inter- that they too have the chance the brand stores.
national’s pool of highly-skilled poten- to learn new skills and upgrade
tial employees. MCU has partnered old ones and can pass on this In March 2019, the “Hotel
with over 150 vocational colleges knowledge to all their students. Competency Workshop”, will take
under the Department of Vocational Students are provided on-site place, following up on last July’s
Education (DVE) and the Ministry of facilities at the college to practice mapping of teaching standards to
Education. Since 2012, MCU has entrepreneurship. Revenue earned hotel management requirements.
enrolled over 19,000 students. from these efforts form part of The workshop will include students
MCU’s ongoing funding. from seven vocational colleges with
Students receive a variety of the objective of tailoring curriculum
skill training and development, In support of the Thai government’s to meet International standards.
20 Thai-American Business - Volume 1/2019The American Chamber Of Commerce In Thailand 21
Special Updates
AMCHAM Treasurer’s Report
2018 Audited Financial Statement
On page 24 you will find the Chamber’s financial statements. The statements were prepared by PKF
Audit (Thailand) Ltd. with the following unqualified opinion: “In my opinion, the accompanying financial
statements present fairly, in all material respects, the financial position of the chamber as at December
31, 2018 and its financial performance for the year then ended in accordance with the Thai Financial
Reporting Standard for Non-Publicly Accountable Entities. (TFRS for NPAEs).”
SUMMARY 3. Other Income
In 2018, operating activities for the Chamber resulted in Included in this is all event activity, social events,
a net deficit of 3.7 million Baht. This compares to a net promotional items, gains/loss on exchange rate, etc.
loss in 2017 of one million Baht, and was higher than Overall, proceeds were down 28%. Significant items
our projected deficit of 2.7 million Baht. The primary to note under Other Income:
driver of the net deficit in 2018 were one-time expenses
related to a donation to the Great & Good Exhibition, i. Meetings: Committee meetings did not result
costs related to our Executive Director departure and in a surplus but did achieve higher than
new hire, the implementation of a new CRM system anticipated income.
and website, higher than estimated fees for regular
meetings (including the 2018 strategy session), and ii. Special Events & Programs: There were no
lower than estimated income for advertising. special events or trade missions in 2018
to result in large event proceeds. Myanmar
REVENUES Chamber is now fully self-sufficient.
1. Membership iii. Governors Ball: The ball resulted in net
proceeds of 2.1 million Baht, which also
Membership has decreased in the last four years matched 2017’s income.
since peaking in 2014, however it is a current
priority to increase membership in 2019. Current iv. Social Activities: Includes the sports activities
membership stands at 648 companies. and the Independence Day picnic. All
proceeds from this category are transferred
2. Subscriptions & Advertising to the Foundation and show up as part of the
Foundation Expense. This was budgeted at
Advertising revenue was down significantly in 2018. 1.5 million Baht and reached 1.4 million baht,
Changes to the types of online advertising available nearly achieving the target.
are responsible. The Chamber did not collect fourth
quarter income with the change in website and CRM v. Miscellaneous Income: In 2017, this
system in order to deliver on all offers within the included a 1.8 million Baht service charge
calendar year. New offerings are now available using to AMCHAM Myanmar for membership and
our new platform for 2019. administrative services provided by AMCHAM
Thailand, which we did not receive in 2018.
Bank Interest We did continue to receive 100,000 Baht in
proceeds from sponsorship of the Citibank
Slight decrease due to changes in interest rates. Board room.
22 Thai-American Business - Volume 1/2019EXPENSES movement from salary line to professional fees for
contract staff.
1. Employee Costs: Salary costs for three
employees now on contract due to age have 11. Dues & Subscriptions: Includes U.S. Chamber,
been moved to the professional fees line of the Board of Trade and APCAC. Below both budget
income statement. If these were included in the and prior year, reflecting the effect of favorable
salary line, the adjusted figure would be on par foreign exchange.
with budget.
12. Depreciation: On par with prior year and budget.
2. Entertainment & Meetings: Up from 2017 and
higher than budget due to an early 2018 strategy 13. Other Expenses: The most significant drivers of
session as requested by the Board of Governors. the increase from prior year and relative to budget
is the Great & Good Donation of 500,000 Baht
3. Lunch Coupon Redemptions: Matched both and costs related to the change of executive
budget and last year’s redemption. director.
4. Office Rent & Utilities: Slightly above both budget
and prior year, budget should be increased to 2.7 BALANCE SHEET
million as these are relatively fixed costs.
Assets
5. Publications & Media: This category includes
costs associated with producing the T-AB 1. Current Assets declined by 3.75 million Baht due to:
magazine and Handbook directory. This was
lower than budget only because issue 4 of T-AB a) 3.75 million Baht deficit for 2018 operations.
was produced in 2018 and thus we produced two
fewer issues than the previous year.
LIABILITIES
6. Communications, Stationary Printing & Postage:
Reduced by another 7% and now meeting 1. Unearned Income of 9.3 million Baht reflect
budgeted figure. membership dues collected in advance for 2019.
7. Transportation & Travel: Much lower than 2. Accrued Expenses include amounts owing for
anticipated due to not attending the Washington events held in Nov and Dec and paid by credit card
door-knock. and salary withholding tax and social security:
8. Insurance: Higher than budget but may not need a) 823,646 in withholding and social security;
adjustment as premium should be lower in 2019.
b) 1,165,726 in Citibank credit card charges for
9. Computer Service: Much higher than prior years CSR, Eggnog and Jazzy lunch among other
due to overlap in old provider and new. This is a smaller amounts owed.
one-time increase in spend that was budgeted for
in 2018. 3. Non-current liabilities include employee benefit
obligations of 4.7 million Baht.
10. Professional Fees: Major increase due to
The American Chamber Of Commerce In Thailand 23Special Updates
The American Chamber Of Commerce In Thailand
Annual Financial Statements And Audit Report Of Certified Public Accountant
For The Year Ended December 31, 2018
24 Thai-American Business - Volume 1/2019
The American Chamber Of Commerce In Thailand 2526 Thai-American Business - Volume 1/2019
Special Updates
2018 Report of American Chamber
Of Commerce In Thailand Foundation
On page 28 you will find the financial statements of the American Chamber of Commerce in Thailand
Foundation. The statements were prepared by PKF Audit (Thailand) Ltd. with the following unqualified
opinion: “In my opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Foundation as at December 31, 2018 and its financial performance for the year then
ended in accordance with the Thai Financial Reporting Standard for Non-Publicly Accountable Entities.
(TFRS for NPAEs).”
1. SCHOLARSHIP PROGRAM raised at the Annual Festive Eggnog Party (2017:
Baht 43,500).
In 2018, the Foundation granted 174 scholarships to
Thai students at 31 universities in Thailand; the total
contribution by the Foundation was Baht 4.25 million 4. OTHER FUNDRAISING
(2017: 174 scholarships at 30 universities; total
contribution Baht 4.325 million). The usual amount of • Proceeds from the Governors Ball Silent Auction,
each scholarship is Baht 25,000. organized by the Chamber’s Community
Engagement Committee, generated a donation of
The annual FedEx Career Camp brought 43 Baht 1.66 million (2017: Baht 1.7 million).
graduating scholarship students from 15 universities
nationwide to Bangkok in October 2018 for a four- • The Chamber’s Young Professionals Committee
day program to prepare them for future careers. donated Baht 111,000 (2017: Baht 161,000) from
its monthly networking events.
The Orientation Camp brought 63 newly admitted
scholarship students to Bangkok in November 2018. • Donations received at the Chamber’s social
Students in this camp learn about financial planning, networking nights totalled Baht 274,000 (2017:
community service, and key life skills. Baht 237,000).
• The Chamber’s Memorial Day and Thanksgiving
2. ADOPT-A-SCHOOL PROGRAM Day Golf Tournaments, organized by the
Chamber’s Sports Committee, generated
In 2018, the Foundation received 32 donations for the donations of Baht 880,000 (2017: Baht 1 million).
Adopt-a-School Program, in a total amount of Baht
939,000 (2017: 73 donations, total Baht 3.7 million). • The Independence Day Picnic, organized by the
Chamber’s Independence Day and Community
During 2018, Baht 1.05 million (2017: Baht 2.9 Engagement Committees, generated a donation
million) was expended by the Foundation for nine of Baht 595,000 (2017: Baht 659,000).
Adopt-a-School projects (2017: 22 projects) which
were funded by donations of the same amount • Proceeds from the Chamber’s ChariBowl
(2017: Baht 2.9 million). Tournaments, organized by the Chamber’s
Sports Committee, generated a donation of Baht
Adopt-a-School projects for schools in Thailand in 292,000 (2017: Baht 341,000).
2018 include construction and renovation of school
buildings, including, classrooms, provision of library • Donations for Student Camp funding 540,000
books, and teacher support. Baht (2017 Baht 330,000).
• Donations for Scholarship Program funding
3. OTHER CONTRIBUTION 176,000 Baht (2017 Baht 534,000).
The Foundation contributed Baht 50,390 to the • Miscellaneous donations to the Foundation
Human Development Foundation from proceeds totalled Baht 41,000 (2017: Baht 10,000).
The American Chamber Of Commerce In Thailand 27Special Updates
American Chamber Of Commerce In Thailand Foundation
Annual Financial Statements And Audit Report Of Certified Public Accountant
For The Year Ended December 31, 2018
28 Thai-American Business - Volume 1/2019ommerce in
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The American Chamber Of Commerce In Thailand 29Legal Updates
Thai Government Reduces Fees
for Company Registration and
Simplifies Registration Procedures
By Michael Doyle
L
ast year, the Thai Under the new rule, however, all 1,000 Baht of the head office
government enacted the newly registered companies are overseas registered capital, with
following changes making required to pay a flat official fee of the minimum fee of 20,000 Baht
it easier for foreigners to only 5,500 Baht and all existing and the maximum fee of 250,000
invest in Thailand. Some changes companies increasing capital Baht.
affect all new companies and are required to pay a fixed fee of
some affect only foreign-held only 500 Baht, irrespective of the However, under the new rules,
entities. amount of capital. there is no longer a requirement
for foreign companies seeking to
Note that the benefits of the rule So, using the above example of establish a representative office or
changes described below apply a new company with a registered regional office to obtain an FBL.
to all foreign companies including capital of 30 million Baht, the Instead foreign companies are
US-held companies operating official fee under the new rules only required to file a notification
under the US-Thai Treaty of Amity. would be 5,500 Baht (instead of form and supporting documents
165,000 Baht under the previous with the Ministry of Commerce
rule). Also, using the second (MOC). The MOC shall then issue
1. Reduction in Official Fees example presented above, of a certificate with a registration
Payable When Registering an existing company increasing number for a representative or
Companies / Increasing its capital from five million to 25 regional office which can normally
Capital million Baht, the official fee would be completed within 1-2 weeks.
be 500 Baht (instead of 100,800
Historically in Thailand, when a Baht under the previous rule). In addition, the above described
new company was registered, official fee formerly payable when
an official fee of 5,500 Baht was submitting the FBL application is
payable for every one million Baht 2. Simplification of Procedure no longer applicable.
of the new company’s registered to Establish Representative
capital (not to exceed 250,000 and Regional Offices and
Baht). Similarly, each time an Elimination of Official Fees 3. Elimination of Requirement
existing company increased its for Foreign Representative
capital an official fee was payable Prior to the rule change, each of Representative, Regional
equal to 5,000 Baht for every one time a foreign company sought to Office and Directors of
million Baht of increase in capital establish either a representative Companies with Foreign
(not to exceed 250,000 Baht) plus office or a regional office in Business License to Obtain
an 800 Baht fixed fee. Thailand, it would first be required Work Permit.
to apply for and obtain a Foreign
So, for example, during this Business License (FBL) prior to Probably the most significant of
period, if a new company was commencing operation. The FBL the new rule changes concerns
established with a registered application process was not easy, work permit requirements
capital of 30 million Baht the requiring the foreign company for the foreign representative
applicable official fee would be to provide extensive financial of representative or regional
165,000 Baht. information in addition to a 60- offices and foreign directors of
day consideration period after companies already operating
Similarly, if an existing company submission. under an FBL.
increased its registered capital
from five million Baht to 25 million Also, under the former system, Formerly, the general rule was that
Baht, the applicable official fee there was an official fee payable, all foreign employees working for
would have been 100,800 Baht. equal to five Baht for every representative offices, regional
30 Thai-American Business - Volume 1/2019offices, and companies in system (not requiring and FBL) is still Foreign directors of a limited
Thailand were required to obtain required to obtain a work permit. company which has obtained an
work permits. FBL are now no longer required
For example, suppose a to obtain a work permit. So, for
Under the new rules, however, US company established a example, if there is a company with
representative office in Thailand five an FBL with five foreign directors
1) foreign representatives years ago, with a US citizen as its living and working in Thailand,
working in either a representative office representative. Until the rule under the previous system all five
office or a regional office (one change last year, that US company would be required to obtain a work
foreigner representative per office) was required to obtain a work permit; however, under the new
which was established under the permit for the office representative; rules they are now not.
former rules (requiring a FBL); and however, after the rule change it is
no longer required to do so.
2) directors of companies which
have obtained a FBL; are no Foreign representatives of
longer required to obtain a work representative or regional offices
permit. established under the new rules
(no longer requiring an FBL),
The above rule change means however, are still required to
that a foreign representative of obtain a work permit. Therefore,
either a representative or regional using the above example if the
office established under the US company established a
previous system (requiring a FBL) representative office in Thailand
is no longer required to obtain a this year (when there is no longer
work permit (although a business an FBL requirement) rather than Michael Doyle is a US lawyer
visa is still required). However, a five years ago (when there was and Senior Partner of the law firm
foreign representative of either a an FBL requirement) the US Seri Manop & Doyle. He may be
representative office or a regional representative would be required reached at michael@serimanop.
office established under the new to obtain a work permit. com.
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The American Chamber Of Commerce In Thailand 31Legal Updates
Thailand Legalizes Cannabis for
Medical Use and Research
By Peerapan Tungsuwan
A
cross the world, manufactured, tested, used, of the amended Narcotic Act,
countries are revisiting and possessed. Manufacturers which would possibly limit, prohibit
their laws on the use are also required to comply with or restrict others from utilizing
of cannabis. For some specific conditions provided in the cannabis or cannabis extracts. To
countries, such as Canada amended Narcotics Act. address these concerns, on 28
and Uruguay, the legalization January 2019, the National Council
of the use of cannabis extends In this regard, the Ministry of for Peace and Order (NCPO) issued
to non-medical purposes, Public Health has issued three an order to amend the Thai Patent
including recreational use. For a ministerial notifications to date Act to exclude cannabis-related
number of other countries, such to impose criteria, procedures, inventions from patentability for
legalization has been limited to and conditions related to those commercial purposes. The NCPO’s
medical use only. The move to in possession of Narcotics Order stipulates that once the
legalize cannabis for non-medical type no. 5 before the amended amended Narcotic Act is enacted,
purposes is a direction being Narcotic Act became effective. the non-patentability provision will
debated in light of the 1961 These notifications exempt expire.
Single Convention on Narcotic certain groups from penalties
Drugs, as amended by the 1972 for possession of Narcotics In the initial trial period, after the
Protocol, which places obligations type no. 5, if they comply with amended Narcotic Act became
upon State Parties to limit the the requirements under the effective, private entities wishing
production, manufacture, export, regulations. Notably among these to operate businesses related
import, distribution, trade, use and are: to research and development of
possession of drugs exclusively to cannabis production can seek
medical and scientific purposes. • patients for whom it is collaborations with state agencies.
necessary to use Narcotics In any case, all steps must meet
Amidst these developments, type no. 5 for medical the regulatory controls and
Thailand has become the first reasons; and requirements under the Thai FDA
nation in Southeast Asia to allow • organizations or individuals and International Narcotics Control
the use of cannabis for medical whose possession of Board (INCB), mandated to monitor
use and research with the Narcotics type no. 5 is and support the government’s
amendment to the Narcotics Act, for medical and research compliance with the three
legalizing licensed possession of purposes. international drug control treaties.
cannabis for medical purposes, as
of 19 February 2019. The ministerial regulations specify
conditions and timeline for the
The amended Narcotics Act aforementioned groups to comply
now allows certain types of in regard to the exemption of
entities and organizations to penalties.
apply for and obtain licenses
to manufacture, import, export, The amendment of the Narcotic
distribute, and possess cannabis Act to legalize the use of cannabis
(“Narcotics type no. 5”) for medical for medical purposes would
purposes, treatment of patients, likely have come sooner, had
and research and development. there not been some concerns
The amendment also includes over cannabis-related patent
provisions to allow responsible applications. There were concerns For more information contact
government agencies to issue raised by academics and the public Peerapan Tungsuwan,Partner and
further Royal Decree(s) outlining sector over the cannabis-related Head of Healthcare Group, Baker
the areas where Narcotics patent applications which were McKenzie Bangkok at peerapan.
type no. 5 can be grown, already filed pending the approval tungsuwan@bakermckenzie.com
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