Академический Документы
Профессиональный Документы
Культура Документы
Monthly/February 2011
Insight
Moving forward with the AEC
580 million
Europe Union
South Korea
Population
GDP size
International trade
FDI
Compare to
50 billion USD
International tourists
65 million persons
6 times Thailand
60% of China
ranked 2nd globally
next to France
Nevertheless, the completion of the implementation of the AEC Blueprint does not necessarily mean
that the goal of a true, integrated economic community has been realized. It just means that the
AEC Blueprint has been fully implemented. The Blueprint covers four important aspects of the AEC which
are (1) becoming a single market and production base, (2) enhancing regional economic competitiveness,
(3) building equitable economic development, and (4) integration into the global economy. The success
of the integration process will be assessed by its outputs and outcomes, for instance, whether trade
liberalization and tariff reduction have helped bridge price gaps among ASEAN countries; or whether the
facilitation of labor flow has increased labor movement to a level that narrows wage differences.
73.6%
of target achieved
Competitive
economic region
Equitable economic
development
82%
50%
100%
100%
Laying the
foundation for
competition
policy, consumer
protection,
intellectual property
rights, and
ratifying transport
agreements
Studies and
development
of SMEs and
Initiative for ASEAN
Integration Work
Plan 2
Liberalization
and facilitation
of free flow of
goods, services,
investment, skilled
labor, and capital
Source: SCB EIC based on data from Department of Trade Negotiations, Ministry of Commerce
Features
European Union
ASEAN
- reduced to 0%
- reduced to 0%
- 100%
- 70%
- Movement of labors
- Single currency
- National currency
- Intergovernmental
European Parliament
member state
European Court
European Legal System
European Competition
Commission
The EU was originally determined to build a supra-national authority. It has authority to make decisions on
behalf of all member countries within its agreed scope of responsibility, and member countries are bound by
these decisions. This supra-national authority has created unity among member countries, and enabled the EU
to move forth more easily while ASEAN is struggling with a slow pace and, in some cases, the impossibility
of moving forward due to its intergovernmental nature, which means that member countries are still holding
their sovereignty above the institution. Consensus is required in stepping forward, yet it is not easily reached.
Although there have been ideas and attempts to develop ASEAN into a supra-national institution, ASEAN
remains short of a concrete plan of action towards such a goal. Moreover, even the EU itself is facing
difficulties in their attempts toward further integration, for instance, from differences in their fiscal policy as
evidenced by the ongoing Eurozone public debt problems. The path towards integration followed by the EU
may not be an easy one.
Much more remains to be done to fully realize the AEC vision. If we look at the
whole process of AEC building, we have completed only one part of it, which is the
reduction of tariffs among ASEAN countries, with the ASEAN Free Trade Agreement
already in force. There are other important components requiring ASEANs collective
effort and time to accomplish. This includes, for example, common external tariffs,
which means a single tariff rate to be enforced in all ASEAN countries with their
trade with external partners. This tends to be very difficult in practice and, in the
end, may result in selective cooperation. For example, it is highly unlikely that
Singapore would increase its tariffs from 0% to a higher rate as might be agreed by
other ASEAN countries. The harmonization of economic policies among all member
countries is another difficult task because so far there are no legal provisions or
regulations binding all member countries. This is a major difference between ASEAN
and the EU.
Removal of
tariffs and
quotas
Common
external
tariffs
Only AFTA
has been
completed
Investment
mobility
Labor
mobility
Harmonization
of economic
policies
Source: SCB EIC analysis based on data from David J. Dennis and Zainal Aznam Yusof (2003) 1
David J. Dennis and Zainal Aznam Yusof (2003), Developing Indicators of ASEAN Integration - A Preliminary Survey for a Roadmap,
final report to REPSF Project 02-001
Unit: %
ASEAN
China
India
Korea
Japan
Australia
New Zealand
35
30
28.7
25
21.8
20
18.0
15
2020
2019
2018
2017
2016
2010
2.8
0
0
2015
0.2
2014
4.1
2013
7.7
2012
8.4
2011
10
Source: SCB EIC analysis based on data from Revenue Department; Department of Trade Negotiations,
Ministry of Commerce; and Office of National Economic and Social Development Board
Excluding Peru which the agreement will be effective by second quarter, 2011
Liberalization of trade in services is on the way. After trade in goods, freer trade in services will follow
suit and lead to the liberalization of investment and labor mobility within ASEAN. This report focuses
on impacts from freer trade in services. The main topic of interest is an agreement to increase the
percentage of share ownership by ASEAN nationals, as the ceiling of shares held by ASEAN nationals in
most business will be elevated to 70%.
2008
2010
49%
51%
70%
49%
51%
49%
51%
2013
2015
ICT
Healthcare
Tourism
Air transport
Logistics services
Other services
30%
10
70%
70%
services in Thailand
While the ASEAN Agreement on Trade in Goods (ASEAN Free Trade Area: AFTA) is already in force,
liberalization of trade in services, investment, and labor mobility are still on the negotiation table. Services
business thus will be increasingly impacted in the near future. In this paper AEC analysis for the most
part focuses on the impact of agreements on business rather than the role of cooperation within the
AEC framework.
The liberalization of trade in services will affect Thai services primarily in two aspects: (1) an increase
in shares held by foreigners, and (2) freer mobility of the professional workforce that is an important
factor for services businesses. The importance of the latter is underscored by GATs defining the 4th
mode, the temporary movement of natural persons, as a vital component for supplying the services
described in Modes 1-3. (see BOX: the liberalization of trade in services within the AEC)
Services businesses in Thailand will be affected by the elevation of permitted maximum shares held
by ASEAN nationals, including legal consultancy, retail food, packaging services, and hospitality services
because these businesses already have a high proportion of foreign share holding, with an average of
39%. If the ceiling is lifted to 70%, there is a high possibility of encountering further foreign investors. On
the other hand, some services businesses such as retail apparel, commercial printing, and IT services, have
not been popular among foreign investors. The average of foreign equity participation in these businesses
is only 4%, despite a ceiling of 49%.
53
Current ceiling = 49%
0
Commercial printing
Apparel retail
Restaurants
Distributor
12 10
Home improvement
Environmental services
Publishing
Construction**
Healthcare
Entertainments
Airlines
16 16 15
15 14 14 14
Advertising
Internet services
Air logistics
21 20 19
Educational service**
Department store
Telecommunication
Marine
Broadcasting
30 30 28
26 24
Food retail
Paper packaging
35
IT services
44
Legal consultancy**
* Weighted average data of 5 largest listed companies by market capitalization in each sector
** Figures based on data from Business Online PCL as they are non-listed
Source: SCB EIC analysis based on data from SETSMART
11
In fact, foreign investors currently have other channels facilitating greater investment than the AEC. This
could mean that the impact may not be as much as anticipated if foreign investors are already using
other available channels to increase their investment. For instance, investment promotion in some specific
fields by BOI allows a more flexible percentage of shares ownership. Therefore, it is not surprising to
see businesses in some areas owned 100% by foreigners.
Furthermore, impacts on one sector may help others. The education sector is facing more intense
competition from increasing investment by foreigners, but this competition will lead to the development
of students who will compose a quality workforce for other businesses in Thailand.
Another negative impact is a shortage of professional workers due to greater labor mobility in
ASEAN. If we look at the remuneration and cost of living of an accountant, for example, we will find that
remuneration in Singapore and Malaysia is about 3 times higher than in Thailand. This could cause
brain drainage from Thailand, especially to Singapore, which has a decreasing working age population and
the fastest increase of elderly people in ASEAN. It is forecast that the proportion of elderly people in
Singapore will reach 30% in 2025 and 35% in 2050, up from the current 16%. This demographical change
will double their need to import workers.
The impact may not be confined to specific sectors. As pointed out above, differences in the remuneration
of accountants will affect every business, as they all require accounting services. Moreover, a shortage
of critical professionals like physicians and nurses will not only affect the health care business, but also
society as a whole, which could suffer from insufficient medical services.
12
5,000
4,000
3,000
2,000
1,000
0
Singapore
Malaysia
Indonesia
Brunei
Thailand
Vietnam
Lao PDR
One of the attempts to facilitate labor mobility within the AEC is to develop mutual recognition of
professional accreditation. ASEAN has already concluded Mutual Recognition Agreements (MRA) in 7 fields,
namely engineering, nursing, architecture, surveying, medicine, dentistry, and accountancy3. Professional
workers who are accredited as agreed in the MRAs will be recognized in all member countries, enabling
them to more easily work in any member country.
Despite mutual recognition, labor movement may not be so easy in practice. Many countries still
preserve rules and regulations that may prevent labor mobility from happening. For example, medical
personnel who wish to work in Thailand will have to obtain a license by passing an examination, some
parts of which are in Thai. There are also other obstacles such as differences in language, culture, and
social acceptance.
More details of each MRA could be found from Department of Trade Negotiations, Ministry of Commerce
13
14
Business opportunities
As businesses in Thailand will be affected, the higher ceiling of foreign shares held by ASEAN members
will provide opportunities for Thai businesses in other ASEAN countries.
Thai businesses will be presented with greater opportunity to increase their investment, especially in
Malaysia, the Philippines, and Indonesia. These countries have so far capped the percentage of foreign
share ownership at 30%, 40% and 49% respectively. The liberalization of trade in services under the AEC
will push the ceiling up to 70% and enhance opportunities for Thai businesses. Singapore, Vietnam, and
Cambodia are already largely open towards foreign investors (at least on paper!).
70% in 2015
Cambodia
100%
Vietnam
100%
Singapore
100%
Indonesia
49%
Thailand
49%
Philippines
Malaysia
40%
30%
Source: SCB EIC analysis based on data from World Trade Organization (WTO) and Asian Development Bank (ADB)
However, the elevation of foreign investment ceilings may be difficult to enforce. In practice, there
are many other domestic rules and regulations to be complied with by foreign investors. These rules
and regulations will be obstacles or barriers that could impede an increase in foreign investment. The
most frequently raised example is the right of foreigners to own land, which remains prohibited in many
countries, including Thailand. Some countries have found a way out by allowing long-tern rent instead.
Moreover, there are other rules, for example, regarding minimum investment, modes of investment, the
composition of a companys board of directors (which must be local people), economic needs tests, joint
ventures, and technology transfer.
15
Businesses with high profit margins, to some extent, possess potential and could be a good start in
seeking interesting services businesses in ASEAN countries, especially after the agreement on trade in
services under the AEC framework enters into force. In terms of profit, it was found that Malaysia and
Singapore have many services businesses with a high EBITDA margin. According to statistics, Malaysia and
Singapore have the highest average EBITDA margins for 7 and 5 service fields, respectively, out of a total
of 21 fields for services sector companies4.
Malaysia
Singapore
Thailand
Philippines
Indonesia
Vietnam
Advertising
Apparel retail
Healthcare
Educational services
Paper packaging
Commercial printing
Computer and
electronic retail
Leisure facilities
Distributors
Entertainment
Telecommunication
services
Department store
Restaurant
Environmental services
Internet softwares
and services
Publishing
IT Services
Marine
16
This finding was a result of an analysis of limited data which covers only data of listed companies in stock exchange of each member countries collected from
Bloomberg. They are categorized into each services field according to Global Industry Classification Standard (GICS) by Morgan Stanley Capital International
(MSCI) and Standard & Poors (S&P).
10
EBITDA margin of
some services businesses
Publishing
21%
Malaysia
Indonesia
15%
Philippines
19%
Singapore
10%
7%
Thailand
Vietnam
Distributor Department
store
9%
n/a
9%
39%
19%
25%
4%
n/a
8%
5%
2%
n/a
n/a
4%
11%
5%
IT services
26%
n/a
10%
17%
8%
Computer Internet
retail
software
21%
25%
12%
7%
16%
19%
7%
8%
0%
21%
17%
Food and
staples
retail
22%
n/a
17%
9%
Commercial
printing
n/a
5%
7%
15%
21%
n/a
7%
Potentially attractive services businesses in Singapore are those related to trade, such as retail apparel
shops, computer and electronics shops, distributors, and department stores. In Malaysia, IT services and
internet software services tend to make high profits. From the data collected for this analysis, we have
also found interesting trends; for example, in ASEAN, low-cost airlines have almost twice the EBITDA margin
than general commercial airlines; and there is only one human resources services company registered in
an ASEAN stock exchange, and its profit margin is as high as 40%.
17
Singapore
100%
Vietnam
100%
Cambodia
100%
Indonesia
67%
Thailand
49%
Philippines
Malaysia
40%
30%
AEC = 70%
Source: SCB EIC analysis based on data from Jutamas and Fink (2007) 5
18
Jutamas Arunanondchai and Fink, Carsten (2007), Trade in Health Services in the ASEAN Region, World Bank Policy Research Working Paper 4147,
March 2007
The hospital sector in Thailand may not feel that much impact from a bigger proportion of foreign
shares because currently there is only an average of 15% foreign share ownership of hospitals in
Thailand. The greatest percentage is 40%, which is lower than the current limit. This could mean that
ASEAN investors had little interest in equity participation up to the limit. Therefore, an increase in the
ceiling may not necessarily result in more investment as the constraint or ceiling on investment is not a
binding one at present. Thus, the opening up to a greater proportion of foreign shares in the hospital
sector may not seriously affect the hospital sector in Thailand.
The more significant impact may come from greater competition for health care professionals. This
is due to the limited number of professional workers in the field of healthcare, especially physicians.
Only Singapore, the Philippines, and Brunei have physicians above the average of lower-middle income
countries. This will affect investment and lead to further social problems such as inequitable access to
medical services because hospitals will bear greater costs in attracting and employing medical personnel.
Medical service fees may increase as a result.
12
Country
Nursing and
midwifery personnel
Physician
Pharmaceutical
personnel
Singapore
15
Philippines
Brunei
Malaysia
44
12
61
11
61
Vietnam
Myanmar
18
6
1
1
8
10
3
<0.5
Thailand
Lao PDR
10
<0.5
<0.5
Cambodia
Indonesia
14
1
n/a
Source: SCB EIC analysis based on data from World Health Statistics 2010, World Health Organization (WHO)
19
In terms of business growth opportunities, demand for healthcare services in ASEAN look quite positive,
with an increase in the aging population as a major driving factor. The United Nations has forecasted that the
proportion of aging population (people above the age of 60), will jump from 11% in 2010 to 15% in 2025 and 22%
in 2050. Singapore will rank first among ASEAN, with a proportion of 30% in 2025 and 35% in 2050, increasing from
the current ratio of 16%. Thailand will come in second with an increase from the current 12% to 27% by 2050.
Singapore
Thailand
Vietnam
Indonesia
Malaysia
Philippines
Business opportunities for hospitals in ASEAN, Indonesia, the Philippines, Lao PDR, Cambodia, and
Myanmar appear attractive compared with other countries. The ratios of the number of hospital beds
to population in these countries are below the average of lower-middle income countries. They also spend
less on healthcare compared with Malaysia, Singapore, and Thailand.
20
753
22
Thailand
136
18
Malaysia
12
Lao PDR
Philippines
58
26
Brunei
Myanmar
1,148
28
Vietnam
Cambodia
32
Singapore
Indonesia
307
27
Lower-middle
income countries = 18
42
n/a
6
36
7
Lower-middle
income countries = 80
63
Source: SCB EIC analysis based on data from World Health Statistics 2010, WHO
Despite greater opportunities in the hospital sector, businesses will face other barriers, such as domestic
rules and regulations. For example, in Indonesia, foreigners can only invest in hospitals with more than
200 beds and can only work as consultants. The Indonesia government intends to prevent money flowing
out of the country from Indonesian patients using health services abroad. In addition, every hospital
must provide 10% of their total services as third-class services to poor people, in order to enhance their
accessibility to services in quality hospitals. Nonetheless, the hospital sector in Indonesia remains tempting
because of an increase in the number of people in the middle and upper classes, as well as cheap labor.
During 1993-1999, the National Investment Coordinating Board authorized foreign investment in 12 projects
worth about USD 234 million. Most of the investors were Singaporean or Australian.
The Philippines has an advantage in possessing a large number of nurses who can communicate in
English and are qualified by US standards. The number of nurses from the Philippines working abroad
accounts for 25% of the total number of foreign nurses around the world. In the US alone, nurses from
the Philippines account for 83% of total foreign nurses. Their salaries are as high as USD 5,760 a month.
On the contrary, working in the Philippines will earn them only USD 175 a month. This could lead to
difficulty for hospitals in the Philippines as many nurses will flow out of the country.
21
Investment in healthcare services with a focus on cardiology could present a good opportunity in
ASEAN because heart disease, especially, ischaemic and hypertensive heart disease, are among the top
causes of death in ASEAN. Therefore, an investment in the hospital sector in ASEAN with a focus on
cardio centers would attract more attention and will see greater demand.
15
Thailand
Singapore
Malaysia
Philippines
Indonesia
HIV/AIDS
Ischaemic
heart disease
Ischaemic
heart disease
Lower respiratory
infections
Ischaemic
heart disease
Ischaemic
heart disease
Lower respiratory
infections
Cerebrovascular
disease
Ischaemic
heart disease
Tuberculosis
Cerebrovascular
disease
Cerebrovascular
disease
Lower respiratory
infections
Tuberculosis
Cerebrovascular
disease
Diabetes
mellitus
Trachea, bronchus,
lung cancers
Chronic obstructive
pulmonary disease
Hypertensive
heart disease
Lower respiratory
infections
Road traffic
accidents
Colon and
rectum cancers
Hypertensive
heart disease
Perinatal
conditions
Perinatal
conditions
Source: SCB EIC analysis based on data from World Health Statistics 2010, WHO
In conclusion, the hospital sector in Thailand may not be seriously affected by an enlarged foreign shares
ownership limit for ASEAN nationals. Currently the average level of total foreign share ownership in
hospital business in Thailand is 15%. The largest percentage is 40%, which is lower than the current limit
set forth by law. But the sector could be affected by the inadequacy of needed health care workers
because most of the ASEAN countries, with the exception of Singapore, the Philippines, and Brunei,
have an insufficient number of healthcare workers. Nonetheless, Thailand can exercise her strength and
reputation in healthcare services to extend investment to Indonesia, the Philippines, Lao PDR, Cambodia,
and Myanmar, where there is a positive demand trend, while trying to focus on heart disease as it is at
the top of the mortality lists in ASEAN.
22
How should
businesses adapt?
Full leveraging of core competencies will be key in maximizing benefits from emerging opportunities
in the ASEAN market under AEC.
16
4 potential ASEAN
3 trends in AEC
Concentration of production
Non-tradables to tradables
ASEAN expatriate class
market
Intra-region tourism
Biggest Muslim population
Growing middle-income
class
Aging population
aging population =
Hotel management +
ASEAN tourists
Food processing
muslim
Thai businesses must step out by using the ASEAN market as a starting point in strengthening
themselves before possible further market integration like ASEAN+3, where we will see even more
intense competition from businesses in China, Japan, and South Korea. We need to start by fully leveraging
and rolling out our core competencies or strengths as well as seeking out opportunities from trends
arising from the AEC and the salient features of the ASEAN market.
23
24
A single market and production base in AEC will likely foster at least three key trends worth
keeping an eye on: (1) the concentration of production to new bases with potential in terms of raw
materials and markets, like the evolution of pick-up truck manufacturing in Thailand, (2) the age of new
service products where non-tradables (services) become more tradable, e.g. organizing wedding events
in Thailand for foreign couples, and (3) the emergence of a new ASEAN expatriate class, resulting from
labor mobility in ASEAN, as exemplified by the increasing number of Singaporean executives in Lao PDR
and Cambodia.
Production will be increasingly concentrated to new bases with market advantages and natural
resources, and can benefit from production networks and regional logistics webs in ASEAN. This is
similar to the expansion of pick-up truck manufacturing in Thailand, which started with their popularity
among Thai people and continuously developed until Thailand became a regional pickup center, benefiting
related businesses. In addition, there may be a natural resource-based advantages. For instance, Indonesia
has ample marine resources, especially, tuna fish and shrimp, and is the biggest overseas fishery. Although
not specialized in food processing, Indonesia intensely promotes foreign direct investment, which attract
many international food processing companies6.
Non-tradables will increasingly become tradable in ASEAN. For example, patients can choose their
hospital in other countries; the retired can decide to live in a place with appropriate services; and
couples from overseas might come to Thailand to have a grand wedding ceremony at a cheaper price.
Thai tourism can build upon these new service products which, in turn, will bring greater competition in
tourism and will lead to the creation of new tourist attractions and recreation developments like Marina
Bay in Singapore. Wedding ceremonies and celebrations by foreign multimillionaires in Thailand, which
have made the news recently, furnish examples of new service products for which borders have been
expanded. Additionally, the hospitality and tourism sectors will benefit from wedding couples and guests
spending extra time in Thailand.
The promotion of and support for the Malaysia My Second Home Program (MM2H) is another example
of a new way of generating income from services for retired people, formerly confined to the domestic
market. The focus has now shifted to an aging foreign population with high purchasing power. This leads
to the development of related businesses, such as real estate and healthcare services. Another example
is Singapores big step beyond her land limitation. She overcomes the limit by investing in schools and
institutions in Thailand as well as developing curriculum in accordance with her standards to accommodate
both local students and Singaporean students in the future.
A new class has emerged from freer labor mobility in countries, especially those that lack skills and
need highly skilled labor. For example, companies investing and locating in Lao PDR, Cambodia, and
Vietnam need executives and managerial expertise from more developed countries like Singapore. This
has created a new class and market with higher purchasing power than locals, as we can see from the
customers of Thailands leading hospitals.
Indonesian law stipulates that 70% of marine creatures caught in Indonesian water must be uploaded at Indonesian ports for distribution or process in
the country. For foreigners, food processing business must be in a form of joint venture with Indonesian nationals. The maximum percentage of foreign
shares held is 80%.
25
While the AEC is facilitating the creation of a single market, businesses should hasten to tap these
new markets in order to establish market share. Emerging opportunities will come form at least
three areas.
1. Behavioral changes in ASEAN. Greater importance is given to childrens education. More time is
spent on vacation. People tend to spend for satisfaction and pleasure over utility. Obvious examples are
the competition in the field of education in Singapore that has policies underscoring human resource
development, and the increasing number of Lao students in Thailand. Regarding time spent on vacation,
intra-ASEAN travelling has grown at an average of 7% per annum during the last 8 years compared to
global travelling, which has only risen an average of 5% a year. In addition, the group of consumers who
are willing to pay for their satisfaction and pleasure has expanded, as we can see from the spawning
of expensive restaurants in many cities.
2. Demographic changes in ASEAN. The working population is on the decrease while the aging population
is increasing. The size of the middle-income class that has a modern lifestyle i.e. using mobile phones,
living in condominiums, and spending most of their time in shopping malls, is growing.
3. Country-specific factors. For example, in Singapore, agricultural fields account for only 3% of the total
land in the country and can only produce 3 kinds of goods which are (1) seafood (fish), (2) eggs and, (3)
vegetables accounting respectively for 4%, 23% and 7% of total consumption. Indonesia has the largest
Muslim population, who composes an important market for Halal food, while the Muslim population in
Malaysia has the third highest purchasing power among Muslim populations, following Saudi Arabia and
Turkey.
Full leveraging and rolling out of core competencies or strengths seems to be a good start to expanding
business in the ASEAN market in the age of the AEC, which will create a critical mass of consumers
in the region that all businesses can access. Each business needs to find its core competencies. For
instance, Thailand has reputation and strength in the area of healthcare services, including hospitals and
personnel. It will be a great opportunity to tap the retired population of ASEAN, of which the proportion
will increase from the current 9% to 12% in the next 10 years. Both Thailand and Malaysia are voted the
top 2 destinations out of 30 to spend post retirement years. We in turn begin to see the development
of real estate aiming at attracting this market both in Bangsaen, Hua Hin, Chiang Mai, and Phuket.
Brand building in Thailands hotel management is another example of expanding business from strengths
and advantages. It will also create more ASEAN brands, in addition to the Red Bull that is the only
ASEAN brand ranked in the world top 100 most valuable global brands 2010 according to Millward
Brown. Regional hotel management brands tend to have an advantage over international brands given
the increase in intra-ASEAN travel. It is forecasted that intra-ASEAN travel will increase at an average of
8% yearly for the next 20 years, while travel between ASEAN and other regions will increase by 6% on
average. Even though international hotel chain brands gain more recognition regarding uniform standards
and excellent customer databases, the increasing number of customers who are willing to pay will be a
good opportunity for Thai brands.
26
The expertise in the food processing sector and being a source of raw materials are advantages for moving
towards becoming a center for Halal food. There are 270 million Muslims in ASEAN. Moreover, the growth
rate of the global trade value of Halal food remains higher than the total food trade. In 2005-2009, the
trade value of Halal food increased by 18.2% annually, higher than total food trade value, which increased
by only 10.4%. Furthermore, the export of Halal food from Thailand is growing, and Thailand is now the
fifth largest exporter of Halal food globally and the first in ASEAN.
From now on, the main difficulties faced by businesses may not necessarily be in finding markets, because
the AEC will help create a critical mass of consumers for many businesses. From traditional service products,
there will be new products which become more tradable. For example, the wedding event organizing
business, which was formerly confined to the domestic market, will now attract foreign clients. The next
step for Thai businesses will be to penetrate markets and businesses in which we are competitive and
can fully leverage our core competencies to be the very first to enter the market and imprint Thai brands
at the ASEAN level to progress further in the global level in the future.
27
Contributors
Vithan Charoenphon
vithan.charoenphon@scb.co.th
(662) 544-2478
Ekasit Kanchanapinyokul
ekasit.kanchanapinyokul@scb.co.th
(662) 544-3085
Metinee Jongsaliswang
Head of Research
metinee.jongsaliswang@scb.co.th
(622) 544-3259
28
Bunyanuch Niltakoch
Chief Economist
sethaput.suthiwartnarueput@scb.co.th
(662)544-4996
Executive Assistant
bunyanuch.niltakoch@scb.co.th
(662)544-5644
Research
Metinee Jongsaliswang
Ekasit Kanchanapinyokul
metinee.jongsaliswang@scb.co.th
(662)544-3259
ekasit.kanchanapinyokul@scb.co.th
(662)544-3085
Pornthep Jubhandhu
Mantana Lertchaitawee
pornthep.jubandhu@scb.co.th
(662)544-3066
mantana.lertchaitawee@scb.co.th
(662)544-6760
Pranida Syamananda
pranida.syamananda@scb.co.th
(662)544-2705
Paradee Vivatanaprasert
paradee.vivatanaprasert@scb.co.th
(662)544-2475
Vithan Charoenphon
vithan.chareonphon@scb.co.th
(662)544-2478
Witchuda Chummee
witchuda.chummee@scb.co.th
(662)544-1644
Kampon Adireksombat
kampon.adireksombat@scb.co.th
(662)544-1463
Research Networking
Darakorn Pipatanakul
darakorn.pipatanakul@scb.co.th
(662)544-4006
Pinattha Aruntat
pinattha.aruntat@scb.co.th
(662)544-2953
Vipasara Arpaskundait
vipasara.arpaskundait@scb.co.th
(662)544-6566
Jiraporn Kritsadarak
Executive Assistant
jiraporn.kritsadarak@scb.co.th
(662)544-6759
Akarapat Charoenpanich
akarapat.charoenpanich@scb.co.th
(662)544-5602
Disclaimer : The information contained in this report has been obtained from sources believed to be reliable. However, neither we nor any of
our respective affiliates, employees or representatives makes any representation or warranty, express or implied, as to the accuracy or
completeness of any of the information contained in this report, and we and each of such persons expressly disclaims any and all liability
relating to or resulting from the use of this report or such information by the receipt and persons in whatever manner.
Any opinions presented herein represent the subjective views of ours and our current estimated and judgments which are based on various
assumptions that may be subject to change without notice, and may not prove to be correct.
This report is for the recipients information only. It does not represent or constitutes an advice, offer, recommendation, or solicitation by us
and should not be relied as such. We or any of our associates may also have an interest in the companies mentioned herein.
29