Tadashi Maeda, chief executive officer and executive managing director of state-run JBIC, made the pledges when he met Prime Minister General Prayut Chan-o-cha and Deputy Prime Minister Somkid Jatusripitak at Government House yesterday.

Somkid said after the meeting that the two sides discussed progress on the EEC, especially concerning the government’s plan to build the high-speed network between the three international airports – Suvarnabhumi and Don Mueang in Bangkok and U-Tapao in Rayong province.

“The JBIC is ready to provide soft loans to Thai, Japanese, Chinese and European investors who plan to invest in the EEC,” Somkid quoted Maeda as saying.

A law enabling the establishment of the EEC has passed the National Legislative Assembly; it must be published in the Royal Gazette before it comes into force.

The government is drafting the terms of reference (TOR) for the rail project, which is expected to yield economic returns over the long run, Somkid said.

He said the government also wants Japan to support an Indo-Pacific economic co-operation plan, which would lead to improved transport connections for participating countries, including India, Myanmar, Thailand, Vietnam, Japan and Australia.

Maeda said that Japan will send high-level officials to attend the summit of the Ayeyawady-Chao Phraya-Mekong Economic Co-operation Strategy (ACMECS) from June 15-16. Thailand is hosting the summit, where it will push for an economic development agenda for the so-called CLMVT nations: Cambodia, Laos, Myanmar, Vietnam and Thailand.

The summit will discuss plans to achieve what officials call seamless connectivity in the greater Mekong subregion, fund-raising to finance investment in ACMECS and sustainable and innovative development for the region.

Thailand is interested in a study on the likely impact of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and wants Japan to conduct the study on how the free-trade agreement under the CPTPP will affect the Thai economy, especially the farming and pharmaceutical industries. The government also wants the JBIC to monitor the progress of mass transit projects in Bangkok.

Somkid said the government will speed up an investment plan for an aircraft maintenance, repair and overhaul (MRO) centre at U-Tapao airport and for the third phase of development of the Laem Chabang port in the EEC. Both proposals would draw more private investment into the region.

Deputy government spokesman Major General Veerachon Sukhontapatipak said Prayut thanked Maeda for JBIC’s plans to conduct feasibility study into a “smart city” project in the EEC. Prayut also pledged to support Japanese investors, Veerachon said.

In a related matter, the Centre of Research and Development for Human Resources of the Eastern Economic Corridor Office will today sign a memorandum of understanding with three state agencies to support the education system under the Sattahip Model, an initiative named after a district in Chon Buri province.

The three agencies are: the Office of Vocational Education Commission, the Office of the Higher Education Commission, and the Board of Investment.

The EEC Policy Steering Committee, which is chaired by Prayut, has approved the Sattahip Model, which is designed to ensure the workforce will have sufficient skills for the development of the EEC.

Twelve vocational institutes in the eastern provinces are participating in the model. Under the collaboration, those companies with a shortage in skilled workers will work with the institutes to find potential applicants that fit their needs.

The participating institutes have enrolled 900 students for the May semester, with courses ranging from hotel management to information technology.

The findings were based on estimates that these leaders provided of the impact of digital transformation on their growth over the past three years, which were then extrapolated to estimate effects on the wider economy.

They do not take into consideration sudden market changes and are based on nominal GDP growth projection from the World Bank, said IDC Asia/Pacific.

Digital transformation for manufacturers is about going beyond simply automating, optimising and improving productivity but also “re-imagining how an organisation can bring together people, data and processes to create value for their customers and maintain a competitive advantage in a digital-first world”, said the research firm.

Other findings noted that such digital transformation could lead to better ‘bottom-line’ performances, thanks to gains in productivity, increases in profit margins and cost reduction. Long-term benefits include revenue from new products and services and improved customer advocacy.

“It is no surprise that businesses are still focused on tracking process effectiveness as the manufacturing sector is one that relies heavily on time-to-market strategies for first-mover advantage,” said Mr Scott Hunter, regional business lead for manufacturing at Microsoft Asia.

“However, as manufacturing organisations realise the value of data in the long term, they are likely to unlock the potential of digital transformation in helping them create new business models.”

The survey noted that 44 per cent of respondents said tracking how data is being used as a capital asset counts as one of their key performance indicators used to measure digital transformation currently.

But the survey also found that leaders in the manufacturing sector are less likely to have an allocated budget set aside for digital transformation as part of their existing profit and loss statement.

Other barriers identified include the lack of skills and resources – with respondents saying they expect 85 per cent of jobs within the sector to be transformed in the next three years – cyber security threats, and a “siloed and resistant culture”.

The study recommended a three-pronged strategy for companies seeking digital change: investing in big data analytics and Internet solutions to manage structured and unstructured data; optimising processes using big data analytics; and using machine learning and artificial intelligence to create new value chains and services.

The Smart Business Transformation programme is the first of its kind in Thailand designed to help SMEs develop and deepen their digital capabilities. Through the programme, the SMEs will be able to tap into insights and practical guidance provided by DEPA, UOB (Thai) and The FinLab’s network of industry experts, mentors and technology leaders.

The DEPA recognises the increasing need and desire of Thai SMEs to plug into opportunities that have opened up in the region, by harnessing digital solutions. This is also in line with the recent Digital Government Plan 2017-2021 announced on March 8, whereby the Government aims to develop digital capabilities within all sectors, including agriculture, tourism, education, the medical profession, investment, disaster prevention and public administration, in order to drive economic and social progress.

Dr Nuttapon Nimmanphatcharin, President and CEO of DEPA, said, “I believe that the digital transformation strategy for SMEs will be sustainable and will create benefits for everyone in the global digital market. Digital transformation will result in continued business growth despite economic challenges, by helping to reduce the costs of business, stimulating investment, boosting employment, and increasing revenues. This will help make our SMEs stronger and more future-ready.”

During the programme, selected SMEs will be guided by DEPA, UOB (Thai) and The FinLab as they identify problems in their businesses that can be resolved and processes that can be optimised with technology. As part of the programme, the selected SMEs will be equipped with the tools and knowledge required to innovate. Participating SMEs will also help with pilot implementation schemes that will help to develop future solutions.

Tan Choon Hin, President and CEO of UOB (Thai), said, “At UOB, we have been helping SMEs seize opportunities, overcome business challenges and benefit from the use of digital solutions for many years. Most recently, we launched UOB BizSmart, a cloud-based integrated digital solution that provides Thai SMEs with a simple and cost-effective way to manage their administrative processes. We also understand that for SMEs to undertake digital transformation successfully, they must first ensure that the​y have a business model that enables them to compete in the new operating environment. Under this new collective MOU, Thai SMEs will be able to connect with the right partners to help transform their business models and to acquire the technological know-how to improve their operational performance and enhance their customer experience.”

Felix Tan, Managing Director of The FinLab, said, “I am very excited to work with DEPA and UOB (Thai). Both organisations bring tangible value to the entire equation in helping identify the industries for which the programme will start. They will also make available resources such as industry experts and business mentors, grants and relevant banking and financial services to the participating SMEs and solution providers. The digital economy is set to grow by US$1 trillion in gross domestic product by 2025 here in ASEAN alone and I am very happy to have the support and commitment from DEPA and UOB to help SMEs in Thailand start their transformational journey.”

Among the top 50 richest on the list, two-thirds saw their wealth rise, with the top four alone adding close to $25 billion.

The list can be viewed at www.forbes.com/thailand and www.forbesthailand.com as well as in the May issues of Forbes Asia and Forbes Thailand.

After a subdued spell, Thailand’s economy is gathering momentum, Forbes noted.

With rising exports and a recovery in domestic demand, the World Bank has forecast that, for the first time since 2012, Thailand’s economic growth will exceed 4 per cent in 2018.

Relative to this modest upturn, the nation’s richest are enjoying a disproportionate wealth boom, spurred by stock market gains and a stronger baht.

The top four on the list are the year’s biggest dollar gainers, with the Chearavanont brothers of the Charoen Pokphand Group retaining the No 1 spot with a record $30 billion.

Their wealth got a boost from soaring shares of their key holdings, such as 7-Eleven operator CP All, which benefited from an uptick in sales, and Chinese insurer Ping An, whose fintech bets are paying off.

Taking the second spot on the list is the Chirathivat family of Central Group, who saw their wealth rise to $21.2 billion, up from $15.3 billion last year.

Red Bull owner Chalerm Yoovidhya and his clan took the No 3 spot on the list as their wealth increased by $8.5 billion to $21 billion this year.

Charoen Sirivadhanabhakdi (No 4, $17.4 billion) of Thai Beverage saw his fortune increase by $2 billon from a year ago.

Another big winner is Aloke Lohia (No 9), whose wealth surged 89 per cent to $3.3 billion this year. Since 2014, his prolific deal-making saw his Indorama Ventures net 16 acquisitions across the globe, including in Europe and North America. For 2017, his company reported a 17 per cent jump in revenue to $8.4 billion.

Reflecting rising prosperity, there are $32-billion-plus fortunes on this year’s list, four more than in 2017. There are four new names, including two newly minted billionaires who join the ranks after taking their companies public.

US-educated Sarath Ratanavadi (No 7), CEO of Gulf Energy Development, which listed in December, is the richest newcomer with $3.4 billion.

Prachak Tangkaravakoon (No 14) makes his debut on the list with a net worth of $2.1 billion.

The other two new listees are from Thailand’s buoyant beauty industry. They are Suwin and Tanyapon Kraibhubes (No 40) of Beauty Community with a combined net worth of $715 million and Sarawut Pornpatanaruk (No 45, $675 million), whose Do Day Dream is cashing in on the skin-whitening craze.

Of the nine women who feature in the top 50, there are two returnees this year, including matriarch Somporn Juangroongruangkit (No 28, $1.3 billion), chairman of auto parts group Thai Summit. Another notable woman to make the list is shipping heiress Nishita Shah Federbush (No 32, $1.06 billion), who helms the GP Group and saw her family’s fortune cross $1 billion for the first time. Much of the gain was due to the family’s 51-per-cent stake in listed pharma unit Mega Lifesciences, founded by her father Kirit in 1982.

THE TOP 10

Chearavanont brothers, US$30 billion

Chirathivat family, $21.2 billion

Chalerm Yoovidhya, $21 billion

Charoen Sirivadhanabhakdi, $17.4 billion

Vichai Srivaddhanaprabha, $5.2 billion

Krit Ratanarak, $3.7 billion

Sarath Ratanavadi, $3.4 billion

Prasert Prasarttong-Osoth, $3.35 billion

Aloke Lohia, $3.3 billion

Vanich Chaiyawan, $3 billion

The list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges and analysts, the Stock Exchange of Thailand and regulatory agencies.

The list encompasses family fortunes, including those shared among extended families of multiple generations. Public fortunes were calculated based on stock prices and exchange rates as of April 20.

The answer is “yes and no.”

Across Southeast Asia, findings from a joint SMU-Deloitte study found 77 per cent of first generation family business leaders believe it’s important for the Next Gen to succeed them. At the same time, Asia’s level of consumption – and the rise of the internet economy – is happening at break-neck speed.

As a result, the family businesses we work with are a complex tapestry of continuity and change.

The continuity comes from retaining the values and the ingredients that have made the business successful over decades.

On the other side of the coin, business strategies are changing because of changing dynamics in Southeast Asia including a rapidly growing middle class.

Technology is also promising to offer a new way of life and better experiences for consumers in the region. In a report by Google-Temasek, they estimate in 2017, 330 million Asean inhabitants were internet users – but that number is expected to soar to 480 million by 2020.

The opportunities in reaching an emerging and increasingly online consumer are numerous and ripe for the taking but the challenge is to be quick, bold and flexible to change.

In response we are seeing business clients move “from less bricks to more clicks” and seek out sales talent that can drive online sales. Wrapped up into an increasing digital strategy, is a shift in the company brand.

At the operational back-end, we are seeing clients move toward cloud accounting, RFID in the supply chain to track the movement of goods, and shifting the supply of materials away from China to lower-cost economies like Vietnam.

Some of the decisions are a break from decades of traditions but are the right ones to take in order to meet the challenges of the future. The problem is these decisions need to be made at a time when a leadership transition is taking place.

Here lies a potential generational divide within a family business which could be fraught with danger.

Businesses have become successful following tested templates, but innovation is how they will remain successful in the future. For the current generation of leaders, letting go whilst observing immediate change by the successor can trigger a lot of emotions on top of what is already an emotional time.

This can actually become a source of conflict if not addressed because it’s not unreasonable for founders to want to stay involved in the business in some shape or form. Having invested so much emotionally and physically into building a business, it would take an extraordinary individual to not have their nose slightly out of joint if the next generation wants to change what they built over many decades.

So while experience, knowledge of the business and industry, leadership traits and education are rightly the main factors for leadership selection, the ability and willingness of the successor to manage inter-generational collaboration cannot be dismissed.

A lot of this can be avoided by having clear communication and a clear and collaborated plan.

Some things to consider in mapping out a leadership transition include identifying the successor and the active/none active members of the family, work out a collective business vision for the company in future, establish governance process for involving family members in decision-making, and document the plan in writing. The plan should also have flexibility in it because succession planning is never a permanent thing or a ‘straight line’ activity – it changes and evolves.

The first generation may have built the business but the ‘Next Gen’ carry the weight of sustaining it. Being true to family values, through open communication, and structured planning can help ensure the generational divide become a generational accelerator.

Contributed by PHILIP KUNZ, Head of Private Banking, Southeast Asia, HSBC Private Banking