He said since the digital disruption, the banking sector’s return on equity(ROE) has dropped from 20 per cent in the past ten years to just 10 per cent. The bank has now adopted digital technology with up to 60 per cent of its customers embracing mobile transactions: 36 per cent using ATM compared to four per cent opting for counter service at bank branches.

“We have invested Bt40 billion since 2016 in the transition to digital banking and cut service cost to lower than 30 per cent to boost our net profit,” he said.

He added that nowadays retail and other businesses can do what banks have been doing, such as payments, insurance sales and other financial services.

“We must embrace technology and be creative in order to improve our services, catering to the demands of our customers. We will increase our information technology staff from 800 to 3,000 in the next five years in a bid to match our services with customer demands in the long term,” he said.

The programme, which began in May, was conducted by UOB (Thai) and The FinLab, in collaboration with the Digital Economy Promotion Agency (depa), the National Science and Technology Development Agency (NSTDA) and the Office of SMEs Promotion (OSMEP).

Under the guidance of business, creative and technology experts in Thailand and across the region, the SMEs reviewed their business models, identified opportunities for improvement and mapped out long-term digital transformation strategies. The SMEs also evaluated and piloted technology solutions curated from more than 350 applications received by The FinLab.

The solutions addressed various business challenges, including how to apply data analytics to understand existing and new customers better, how to use digital marketing to increase leads and sales, and how to improve efficiency through business process optimisation. These were very much in line with the findings of an online survey conducted by The FinLab, where SMEs in Thailand said their top two business growth strategies are entering new markets (54 per cent) and using digital marketing to grow sales (51 per cent).

“The Smart Business Transformation Programme demonstrates our commitment to helping Thai SMEs embrace and be equipped for the growth opportunities presented by the digital economy,” said Tan Choon Hin, president and chief executive of UOB (Thai). We recognise the active role we can play in contributing to the Thailand 4.0 initiative, which aims to help Thai SMEs innovate and adopt technology. With our established and integrated network across the region, UOB (Thai) is well-positioned to partner SMEs in their ambition to grow their businesses domestically and overseas.

Felix Tan of The FinLab echoed that sentiment, saying: “The Smart Business Transformation Programme clearly showed that each of these 15 SMEs have the drive and desire to transform their business. Throughout the programme, they displayed their commitment to tackling the issues within their businesses and openness to incorporating new ideas and digital solutions. With the know-how they have gained, they will not only be able to continue their business transformation but will be in a stronger position to face future challenges. These outcomes augur well for Thailand’s economic and business landscape, and also support the Thailand 4.0 initiative which aims to grow the GDP contribution from SMEs to 50 per cent by 2025.”

One of the SMEs to complete the programme is MCC Industrial New 1999, an automotive company which manufactures accessories for 4×4 off-roaders. Through the programme, MCC 4×4 Accessories connected with digital solutions that can help smoothen its business processes, such as Workforce, a Thailand-based labour management software. It also gained management skills to implement these solutions effectively.

The company’s business development manager Chanokporn Sirananont was pleased with the result. “The Smart Business Transformation Programme has better equipped us to drive continuity and change, which is important to us as a family-run business looking to expand in the digital economy. We are now more confident to drive digital transformation, and are currently working with partners and digital solutions to implement workflow processes with faster turnaround and greater efficiency.”

Wisan Wanasaksrisakul, chief executive of Warrix , agreed. “The Smart Business Transformation Programme has helped us develop a structured approach to managing and to scaling our business. Recognising that a strong foundation is key to sustainable business growth, we are working closely with technology solution providers such as Boostorder to digitalise our core processes and sales channels. This approach will help us meet our online sales growth target of 15 per cent by year-end.”

AIS (@AIS_Thailand) has topped the list for a second year running, while fast-moving consumer goods and food and beverage brands dominated the index. The newcomers this time are KFC Thailand (@kfcth), Mirinda Mix-it (@MirindaMixit) and LINE TV (@linetvth).

Arvinder Gujral, managing director for Twitter Southeast Asia, said: “It is no longer enough to simply target demographics. Brands are looking for a way to connect more deeply with their customers. Conversation is Twitter’s superpower. The audience on Twitter are the ones who drive the conversation and define culture. It’s important for brand to listen to what people are saying about their brands on Twitter, because their customers’ voices are authentic and influential.”

Twitter has become the platform of choice for brands to launch new products and campaigns, due largely to its influential audience, which is receptive to new ideas and like being the first to discover and try new things.

The brands that made the top 10 list are:

1. AIS (@AIS_Thailand)

2. KFC Thailand (@kfcth)

3. Samsung Thailand (@SamsungThailand)

4. Lays Thailand (@laysthailand)

5. L’Oréal Paris TH (@LOrealParisTH)

6. Wall’s Thailand (@Walls_Thailand)

7. Watsons Thailand (@WatsonsThailand)

8. Mirinda Mix-it (@MirindaMixit)

9. 7-Eleven Thailand (@7ElevenThailand)

10. LINE TV (@linetvth)

Meanwhile, here are the four fasted growing verticals on Twitter in Thailand:

Banking

On the global level, the banking industry as faced a lot of disruption in recent years, yet Thailand’s banking industry has remained ahead of the curve by connecting with customers and reaching out to new ones in a creative manner. #การเงิน (finance in Thai) was mentioned 1.2 million times over the past year on Twitter in Thailand. All major Thai banks are active on Twitter, and they use the platform in a variety of ways. For instance, banks are tapping into popular culture when connecting with the younger generation, such as KBank Live’s (@KBank_Live) recent concert ticket giveaway.

Based on engagement, the top three banks on Twitter in the second quarter are:

1. KBank Live (@KBank_Live)

2. SCB Thailand (@scb_thailand)

3. Krungsri Simple (@KrungsriSimple)

https://twitter.com/KBank_Live/status/1144802668529033222

Telecommunications

With AIS (@AIS_Thailand) topping the top 10 index for the second quarter, it’s no surprise that Thailand’s leading telecommunications brands are dialled into Twitter. With multiple product tiers, Twitter is providing an essential platform for the brands to be active on, providing a unique way for them to listen to conversations and join those that matter to them. AIS (@AIS_Thailand) is one of the most active brands on Twitter and in Q2 leveraged the star power of #BlackPink’s #LISA in their NextG campaign, #AISNetworkForAllGenerations.

Based on engagement, the top three telecommunications brands on Twitter are:

1. AIS (@AIS_Thailand)

2. TrueMove-H (@TrueMoveH)

3. dtac (@dtac)

https://twitter.com/AIS_Thailand/status/1131515115612848128

Beauty

Beauty enthusiasts are a passionate community on Twitter in Thailand and they are active daily. Sharing tips and experiences, trying out new products and providing authentic reviews to fellow enthusiasts, there were 4.6 million mentions of #แต่งหน้า (make up) in the past year alone. Beauty brands can benefit from these real-time conversations and gain valuable feedback while engaging with customers to better understand their needs.

LipIce Girls World (@Lipicegirlworld) launched a campaign to find out what colours their customers preferred, asking them to “like” to choose soft pink or retweet to choose bright pink.

Based on engagement, the top three beauty brands on Twitter are:

1. L’Oréal Paris TH (@LOrealParisTH)

2. LipIce Girls World (@Lipicegirlworld)

3. cutepress (@cutepress)

https://twitter.com/Lipicegirlwo…/status/1131364120748384256

Fast Moving Consumer Goods/Food and Beverage

FMCG and F&B brands in Thailand work in a highly competitive space. These brands are some of the most active on Twitter with both organic and paid campaigns. They move fast, tapping into moments and understanding customer sentiment. Lots of offers, discounts and fun posts characterise their activities on Twitter.

Based on engagement, the top three FMCG and F&B brands on Twitter are:

1. KFC Thailand (@kfcth)

2. Lays Thailand (@laysthailand)

3. Wall’s Thailand (@Walls_Thailand)

https://twitter.com/kfcth/status/1133772487857135616

Best practice for brands using Twitter in Thailand

Twitter isn’t a one-size fits all platform. Driven by users, Twitter serves the public conversation and users determine what the conversation is. Brands can benefit from this. The days of “buy me” marketing are numbered, as brands aim to better connect with their customers, communicate with them and learn from them. Marketing has become a two-way conversation and Twitter has become the platform of choice for successful brands.

Here are some top tips for using Twitter:

Be part of the conversation

Listen, join in, and create conversation. Twitter is the largest publicly-available archive of human thought to have ever existed and when people are talking on Twitter, brands should listen in. With 1.4 billion conversations on Twitter in Thailand in the past year, this is a great opportunity for brands to learn what their customers are interested in. Use hashtags to search for the conversations that matter to your brand; keep an eye on trending hashtags to know what’s popular right now; and follow opinion leaders and influencers to see what conversations they are taking part in. All this information is at a brand’s fingertips and once you have the knowledge, don’t be shy and join in.

Lays Thailand (@laysthailand) tuned into the moment when in Disney’s latest short, Chip ‘n’ Dale were singing in Thai and this blew up on Twitter. Lays Thailand (@laysthailand) played on the clip’s popularity with a timely and fun post of their own that resonated with their target audience.

Understanding the popularity of Thai TV dramas, LINE TV (@linetvth) regularly starts and drives the conversation around an upcoming episode, capturing the moment and expectations of TV serial fans.

https://twitter.com/laysthailand/status/1145340746360184832

https://twitter.com/linetvth/status/1111132054882783232

Be creative

Top brands are investing in quality videos and photos to help them stand out from the competition. Create copy that connects with your audience and ensure your brand tone is consistent and authentic to best connect with users and maximise engagement.

L’Oréal Paris TH (@LOrealParisTH) is using stylistic fashion-driven video and photography on Twitter to grab user attention and inspire.

https://twitter.com/LOrealParisTH/status/1120273280508645376

Use hashtags effectively

Use your 280 characters wisely, one or two hashtags per Tweet are enough. Hashtags don’t have to be the brand name; brands may use campaign hashtags. Using a popular hashtag of the moment allows brands to join in the conversation and show they understand the latest trends, but make sure it’s relevant to your brand.

https://twitter.com/SamsungThail…/status/1128193226047934465

The 8.7 per cent year on year increase was underpinned by stronger operating income and a 15.7 per cent decline in year on year loan loss provision while operating expenses rose 8.7 per cent year on year. The group’s net profit in the first half was 14.5 per cent higher year on year at RM2.70 billion, translating to a net earnings per share of 28.1 sen and an annualised return on average equity of 9.7 per cent.

The group declared a first interim net dividend of 14.0 sen per share, to be paid via cash or an optional dividend reinvestment scheme. The total interim dividend amounts to a payment of approximately RM1.36 billion, translating to a dividend payout ratio of 50.4 per cent of profits in the first half of 2019.

“We are pleased with the 14.5 per cent year on year increase in our net profit to RM2.70 billion underpinned by our above-industry loan growth in Malaysia and better treasury and markets income.

Malaysia’s PBT improved 5.3 per cent year on year, contributing 67 per cent to the group’s PBT. Indonesia also posted an encouraging 20.2 per cent year on year growth, supported by its strong consumer business. Overall, the group remained resilient with lower loan loss provisions despite challenging external headwinds,” said Tengku Dato Sri Zafrul Aziz, CEO, CIMB Group.

The group’s operating income in the first half of this year was 4.8 per cent higher year on year at RM8.64 billion. Net interest income grew 3.3 per cent year on year from the 6.9 per cent growth in loans, while the 8.5 per cent improvement in non-interest income came largely on the back of better capital market activity in the second quarter of 2019. Operating expenses rose 8.7 per cent year on year from incremental investments and Forward23-related expenses, bringing about a cost-to-income ratio of 53.2 per cent . Loan loss provisions declined by 15.7 per cent to RM629 million resulting in an 8.7 per cent growth in the group’s PBT to RM3.56 billion.

Thailand, the company said, is in its fourth phase of economic transformation, evolving from an agrarian country to a value-based economy. The country has been witnessing an increase in foreign investment spurring accelerated infrastructure development. The intelligent training and service centre is in line with KONE’s commitment to investment in upskilling of the local workforce and integration of smart technologies in its solutions.

The 815 square metre site located at Sukhothai Avenue 99 (Muang Thong Thani), is an integrated facility that houses a showroom exhibiting innovations from KONE, service centre to serve their more than 1,500 customers in Thailand and training centre to impart professional know-how to about 330 employees of KONE Thailand.

It is a new digital, modern ecosystem created by KONE that showcase its state-of-the-art, industry- leading innovations and nurture advanced learning opportunities. The training centre brings together experienced trainers and new ways of learning, such as Virtual Reality, Augmented Reality, Gamification and eLearning.

To drive more application-based learning, the centre will be able to simulate real-life scenarios linked to the KONE Customer Care Centre (KC3) for product and service trainings.

It employs emerging technologies such as artificial intelligence (AI) and Internet of Things (IoT) to provide seamless service to KONE customers and end-users. KONE offers 24/7 Connected Services and KONE Online which help in expediting issue redressals, thereby decreasing the downtime substantially. The showroom within the facility showcases a wide range of KONE solutions including its environment-friendly innovations such as the UltraRope. It’s a super-light carbon fibre cable that is used as suspension for elevators in place of conventional steel cables, reducing the weight of an elevator by up to 80 per cent and in turn saving energy consumption by 11 per cent.

Axel Berkling, the company’s executive vice president/Asia-Pacific, said, “The Thailand Training and Service Centre is a true microcosm of KONE; it demonstrates our technology prowess as well as our eagerness to learn more and innovate more. Thailand is at the cusp of change, witnessing a strong wave of digital transformation and we are fortunate to be a part of this journey. We have always taken pride in being a sustainable and innovative company and promise to further strengthen the onward stride of Thailand in becoming a smart and sustainable economy.’

“The Thailand Training and Service Centre will meet the needs of our two most important partners – customers and employees. The urban landscape of Thailand is evolving at a rapid pace, with cities becoming smarter and buildings becoming taller. Harnessing smart technologies, we offer always-on-call customer service and are working towards increasing the digital competencies of our workforce to better manage the growing needs of our evolving cities”, said Anthony Tan, managing director of KONE Thailand.

Thailand has been undergoing rapid urbanisation with more than half (52.9 per cent) of the population expected to be living in cities by 2022, a figure that may reach 60 per cent by 2030. In its effort to become a dynamic, high-income nation with a value-based economy, the government has set a target of 30 smart cities in 24 provinces by 2020 and hopes to transform 100 cities in the country to smart cities by 2022. The growing impetus on digital adoption and smart cities has created a huge appetite for smart building solutions in Thailand.

The Asia Pacific region has been a growth engine for KONE and for the first half of the year, sales in Asia-Pacific grew by 13.5 per cent. The strong push towards building a smart nation has positioned Thailand as a very important market for KONE, driving the demand of KONE’s smart solutions. KONE solutions have been powering many high-end projects in Thailand including 98 Wireless in Bangkok, the most expensive residential complex in Thailand.

An official statement from the American automaker did not elaborate on how many jobs would be lost exactly, but according to a local Chonburi-Rayong Facebook page, approximately 300 GM workers will be unemployed by the move.

GM Thailand stated that all laid-off employees would be supported accordingly.

“We want to succeed in Thailand, which requires continually to deliver improved performance and operational efficiency. As such, it has become necessary to right-size and optimise our operations. We are taking every measure to support employees whose roles are impacted,” GM stated in an announcement on Thursday.

The new Captiva is assembled in Indonesia.

“There is no change in our ongoing business in Thailand – we continue to build and sell world-class trucks, SUVs and engines for Thailand and the world. We continue to focus on delivering great vehicles and experiences to our customers and look forward to launching the all-new Chevrolet Captiva SUV in the Thai market later in 2019,” it added.

The latest Captiva, powered by a new 1.5-litre turbo engine, is assembled in Indonesia at the SAIC-GM-Wuling plant and exported to Thailand. It will be officially launched on September 9 in Bangkok.

The GM plant in Rayong meanwhile assembles the Colorado pickup truck and its Trailblazer PPV variant.

GM sold 9,921 Chevrolet vehicles in Thailand in the first seven months of 2019, a decrease of 10.8 per cent compared to the corresponding period last year.

The global company, which celebrated its 100th anniversary this year, has expressed confidence in both leisure and business travel segments in Myanmar as the Tourism Ministry reported close to 2.5 million foreign visitor arrivals into the country in the first half of this year, a 26 per cent year-on-year increase from 2018.

Recent developments such as the easing of visa policies for travellers, the country’s new tourism campaign and the naming of the ancient city of Bagan as a Unesco World Heritage Site were all expected to contribute to increasing Myanmar’s appeal as a travel destination.

Peter Webster, regional general manager for Singapore, Thailand, Myanmar, Laos and Cambodia at Hilton, saw a positive growth outlook encouraged by the Asian Development Bank’s forecasted growth of 6.6 per cent in Myanmar’s economy this year.

“Overall we see more investments and increased market confidence in the government’s accelerated economic reforms, with the Directorate of Investment and Company Administration reporting more than US$3.5 billion (Bt107.1 billion) in foreign direct investments pumped into the country as of the end of July. As an international hotel company welcoming guests from within Myanmar and all over the world, this is heartening news for us as we look for the right opportunities to grow our brands across a number of destinations in Myanmar with the right partners,” Webster said.

Having first entered Myanmar as one of the first international hotels in the country with the opening of Hilton Nay Pyi Taw in 2014, Hilton has since grown its presence with the launch of Hilton Ngapali Resort and Spa, followed by Hilton Mandalay just two years ago. Recognising the potential of Myanmar as a travel destination, with seven million tourist arrivals expected by 2020, Hilton is set to continue its expansion across the country.

“Our growth strategy in the region has always been to identify the right partners and opportunities at the right time, and to bring brands that cater to the expanding range of travel interests and preferences. We are delighted to have kicked off our centennial this year with the announcement of a partnership with Crown Advance Construction Co Ltd to bring our flagship Hilton brand to Yangon as the city advances towards being one of the leading investment hubs in Southeast Asia,” added Webster.

In January 2019, Hilton signed a management agreement with Myanmar partners Crown Advanced Construction to operate Hilton Times City Yangon. The 308-key hotel opening in 2021 will signal Hilton’s entry into the country’s commercial and financial centre. Strategically located between Yangon International Airport and the central business district, Hilton Times City Yangon is set to be top of mind for business and leisure travellers. The hotel will be surrounded by embassies, shopping centres, restaurants, international business offices, and within a short distance to top tourist attractions including the stunning Shwedagon Pagoda, parks and garden lakes, as well as the heritage buildings and vibrant night markets of downtown Yangon.

“The Times City project is a landmark mixed-use development that reflects Crown’s vision to create a sophisticated urban district in Yangon. Hilton Times City Yangon fits suitably into this vision and will be all set to deliver exceptional guest experiences that the brand is renowned for when it opens in three years,” Webster said.

Part of the 100-year old company’s commitment as it continues its growth trajectory globally is to positively impact the communities in which it operates – coined “The Hilton Effect” by US professor and author Chip Heath. In Myanmar, Hilton set up the Hilton Vocational Training Centre in 2015 in partnership with Myanmar’s Ministry of Hotels and Tourism to provide training to young Myanmar talent who are keen to build a career in hospitality.

The second batch of students will be graduating this September, and the company is expected to welcome its third intake in the final quarter of this year.

In addition to developing local talent and redefining sustainable travel, Hilton Nay Pyi Taw will be the first hotel in Asia Pacific to host the United States Embassy’s liaison office from 2020. The US liaison office at Hilton Nay Pyi Taw will serve as the official presence of the US government in the capital, facilitating increased engagement between its diplomats and the government of Myanmar.

The company also plans to reduce its debt-to-equity ratio from 3.89 times to one times in this year, added company executive vice president for corporate finance and accounting, Wanida Boonpiraks.

Following the business plan, the company will increase its registered capital worth Bt74 billion, to be issued on September 30 through October 4. The company also plans to issue a debenture worth between Bt30 billion and Bt35 billion to reduce the debt from borrowing from its parent companies and also from commercial banks, she said.

At present, the company has borrowed a combined Bt35 billion from PTT Plc and PTT Global Chemical Plc, with the next Bt99.5 billion borrowed from commercial banks.

After the increase in its registered capital and issuance of debentures, the company will reduce its interest rate cost average of Bt3 billion in this year to a lower amount in 2020, Wanida said.

Meanwhile, the company set aside an investment budget of Bt4 billion in this year to integrate the electrical systems between GPSC and Glow at the industrial estate. This will increase the earnings before interest, taxes, depreciation and amortisation (EBITDA) at both firms to Bt20 billion at the end of year 2020, she said.

Wuthichai Sithipreedanant, senior vice president for corporate social responsibility and sustainable development at CP Foods, said the company recently carried out a social and environmental-impact valuation of its contract farming scheme through “internationally recognised impact valuation protocols, which pinpoint the financial results of the scheme’s positive and negative impacts”.

According to the company, the social result showed farmers spent more time with their families – from 1.9 hours a day to 4.3 hours – resulting in fewer social problems related to drug use among youth. The study also showed the scheme reduced the ratio of farmers living under the poverty line, while 85 per cent of farmers have seen their children gain above-basic education.

Regarding the environmental aspect, the valuation shows that nearly all farms under the CP Foods scheme have adopted biogas techniques. Though swine farms’ electricity and fuel use emit greenhouse gases, biogas techniques at the end help the farms reduce greenhouse gases by 92,000 tonnes of CO2 equivalent per year, the company said. “Conclusively, the social and environmental impacts created positive impacts worth as high as Bt230.4 million per year,” it added.

The valuation was carried out under the natural capital protocol and social capital protocol of the World Business Council for Sustainable Development. It covered income-guaranteed swine breeders in the northern, northeastern, central, western, eastern and southern parts of Thailand. The valuation was conducted by students from four of the country’s universities – Chiang Mai University, Walailuck University, Rajamangala University of Technology Tawan-Ok Bangpra Campus, and the Panyapiwat Institute of Management.

CP Foods is also the first Thai company whose valuation is re-assessed by Lloyd’s Register International (Thailand), a sustainability assessment agency, the company said.

The contract farming impact valuation will be a key element in nominating CP Foods for the Dow Jones Sustainability Indices (DJSI) next year, the firm added. CP Foods has been named a member of the DJSI for four consecutive years.