Forex fluctuations hit Thai shipments

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Forex fluctuations hit Thai shipments

Economy March 26, 2019 01:00

By   THE NATION

2,325 Viewed

FLUCTUATIONS in foreign exchange rates have impacted Thai shipments particularly to Argentina and Turkey whose currencies saw sharp depreciation last year, according to Commerce Ministry’s recent study.

Pimchanok Vonkorpon, director of the ministry’s Trade Policy and Strategy Office, said that based on the study, the Sudanese pound fluctuated the most – by 164.6 per cent year on year in 2018 – while Argentina’s peso was second, fluctuating by 28.1 per cent, and the Turkish lira was third with 27.6 per cent. The baht fluctuated 4.6 per cent, and was ranked 48th among other countries in the world and third in Asean, reflecting good stability.

Currency fluctuation is an important matter as high currency fluctuations mostly come from rapid changes in major situations such as domestic political instability, political conflicts with other countries which could lead to economic sanctions from economic powers, economic crises or instability.

These countries may take more than a year to see economic recovery and their trading-partner countries will suffer the impacts from higher product management costs and swift price changes. The study was conducted on changes of exchange rates of 87 trading-partner countries and their impacts on Thai exports with related factors including currency fluctuations and depreciation which affected the trading-partner countries’ demand and purchasing power and became limitations and risk factors for Thai exports.

The study intended to urge business operators and exporters trading with these countries to realise the importance of hedging against foreign exchange risks and other risks and seek new markets.

According to the study, the Sudanese pound depreciated the most, by 164.5 per cent, followed by the Argentinian peso, by 100.2 per cent, and the Turkish lira, by 40.9 per cent. The Thai currency depreciated by 0.1 per cent, placing in 71st position among other countries in the world and 8th among Asean countries. Among Asean countries, Indonesia’s currency fluctuated the most, by 5.6 per cent, while Myanmar’s currency depreciated the most, by 14.2 per cent.

Pimchanok said that among 87 countries analysed, 26 countries witnessed currency depreciation by over 10 per cent and of these countries, eight are Thailand’s major export destinations, accounting for over 0.5 per cent of Thai exports in total. The eight countries are Argentina, Turkey, Pakistan, Brazil, Russia, Myanmar, Australia and India.

The Argentinian and Turkish currencies tend to have the most impact on Thai exports.

The Argentinian peso depreciated as much as 100 per cent. In August 2018, Argentina’s currency sharply depreciated by 100-110 per cent and from September 2018, Thai shipments to Argentina contracted for five consecutive months, tending to shrink continuously. Major exports to Argentina include automobiles and components followed by engines and rubber products.

The Turkish lira depreciated by 41 per cent, after depreciating by 85-90 per cent in August last year. Combined with its weak economy, Thai shipments to Turkey shrank for eight consecutive months and are expected to continue contracting in the first and second quarters of this year. Major shipments to Turkey include automobiles and components, air-conditioners and rubber.

Pimchanok said new markets may have to be found for the affected products, particularly automobiles and components as Thai shipments to Argentina and Turkey account for a combined 1 per cent of Thai exports in total and may contract for 12-24 months.

Thailand rises three places in WEF energy transition index

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Thailand rises three places in  WEF energy transition index

Economy March 26, 2019 01:00

By THE NATION

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THAILAND has risen to 51st rank out of 115 countries in the World Economic Forum (WEF) “Global Energy Transitions Index 2019”, Energy Minister Siri Jirapongphan said.

Siri said that this year, Thailand was preparing to push legal amendments and get rid of obstacles to attain a higher WEF rank. Thailand was ranked 54th last year.

The improvement in ranking is a result of the WEF view that Thailand has energy stability without emitting too much greenhouse gas, he said, pointing out that Thailand has earned compliments for more use of renewable energy as the country’s main energy.

Thailand has a plan to increase the use of renewable energy to 35 per cent of total energy used in the next 20 years from the current 14 per cent, Siri said. Besides, the country is moving towards power production from solar rooftops on residential units, the so-called people-sector solar power for the first time.

Meanwhile, Thailand needs more development of energy human resources, particularly the 10,000-watt people-sector solar policy in the next 20 years and the future use of electric vehicles (EVs).

“Such ranking is based on Thailand’s Power Development Plan [PDP]. If PDP 2018 is included, it is believed the ranking would be higher, with its drive for clean energy, particularly people-sector solar,” Siri said.

Siri expressed confidence that the new government would continue the new round of petroleum (concessions) for more petroleum production capacity that can offer lower prices compared to imports.

Given the increase in gas production with cheaper prices, the country has energy stability. The Energy Ministry is preparing a new round of auctions of exploration and production of petroleum in the Gulf of Thailand within this June under production sharing contract (PSC), he said.

Panata Sangsriroujana, deputy governor of Electricity Generating Authority of Thailand (Egat), said the authority is awaiting the current or new Cabinet’s approval of the draft amendment to the Electricity Generating Authority of Thailand Act, which will allow Egat to proceed with fuel procurement. Earlier, Egat played a role in production and transmission system management.

Chaiwat Kovavisarach, chief executive officer of Bangchak Corporation, expressed no concerns about the energy policy as Thailand imports most of is energy whose prices follow global markets and that could affect consumers, while expecting the energy policy to follow the liberal-market mechanism.

Poonpat Leesombatpiboon, chief of the Energy Ministry’s International Energy Cooperation Division, said the higher rank came from the country’s energy stability and people’s access to energy, energy in response to the country’s economic expansion and development, and the energy system’s responsibility for the environment or reduction in greenhouse gas emissions and system initiative on shaping the future of energy.

After this, Thailand will require amendments of rules and regulations that hinder the country’s energy development, and preparation of energy human resources for more modern technologies, he said.

Wuttikorn Stithit, the vice president of PTT, said the company is joining hands to enhance the country’s energy stability through procurement of liquefied natural gas (LNG) and infrastructure development for LNG imports.

PTT is awaiting improvement of the ministry’s gas plan, which will revise the amount of LNG to be procured to match demand, set to rise to 53 per cent in the new PDP, he said.

Besides, an Asean study cooperation will be conducted for LNG terminals in the future and now Thailand, Singapore, Malaysia and Indonesia have already constructed LNG terminals.

A watch with an environmental message

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A watch with an environmental message

shopping March 25, 2019 12:55

By The Nation

Oris joins hands with expedition swimmer Ernst Bromeis to boost environmental awareness with the launch of the Oris Aquis Date Relief watches for high-performance divers.

Inspired by the colour and feeling of water, the grey dial recalls the colour of a stormy sea, while the watch’s signature diving scale numerals in relief are a reminder of the texture of water, as well as its elemental role in all life.

The watch shares its architecture and performance values with the Oris Aquis Date. It has a 43.50mm stainless steel case with a uni-directional rotating diver’s bezel and is water-resistant to 300 metres.

It comes with a choice of straps or a metal bracelet, and its sapphire crystal sits over a dial decorated with applied hour markers, which, like the hour and minutes hands, are filled with luminescent Super-LumiNova. Its Swiss Made automatic mechanical movement provides it with a central seconds hand – in urgent red – and a date, seen through a window at 6 o’clock.

Oris has also introduced a watch strap made from a material called r-Radyarn, which is produced from post-consumer recycled polymer in a process that requires significantly less energy and water than conventional manufacturing methods.

Oris continues to work with non-profit organisations on projects that bring real change. In the last few years, the brand worked with the Coral Restoration Foundation to replant coral; with Pelagios Kakunj? to protect endangered shark species; and with conservationists looking to secure Unesco World Heritage Site status and protection for Clipperton Island, the world’s most remote atoll, which sits on a critical migration route for a number of threatened species.

Find out more at TrocaderoTime.com.

Revise Waste Act with incentives to reduce junk, says expert

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Revise Waste Act with incentives to reduce junk, says expert

Real Estate March 25, 2019 01:00

By SOMLUCK SRIMALEE
THE NATION

THE COUNTRY’S waste could be reduced through incentives that push private developers to better management of construction materials, creating an economically healthier sector alongside healthier homes and reduced environmental impacts.

“Property is the largest sector, using ever-more raw construction materials and producing more construction waste,” Assoc Professor Dr Singh Intrachooto, head of the Creative Centre for Eco-design in the Architecture Faculty of Kasetsart University, said.

“But they cannot manage the waste on their own under the country’s Waste Management Act,” Singh said in a recent interview with The Nation. “If the new government revises the act, it would help property firms manage their construction waste and move to a nearly zero-waste industry.”

The property sector is also among the largest industrial users of energy, from both the construction process and after the buildings are completed and handed over to their customers.

He said the government should also revise the act to provide additional incentives for property firms to develop more energy-efficient residential and commercial buildings, including through installing solar rooftops and designing building that have lower environmental impacts and are healthier for people to live in.

This would improve the health of the property sector while also ensuring a better environment and healthier residents, he said.

“We hope the new government will [create conditions] that ensure the country’s property sector is among the healthiest industrial sectors and achieves zero waste,” he said.

“This would drive the industry toward sustainable growth and provide a global model for improving this industry,” Singh added.

Developers rally for low-income clients

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Developers rally for low-income clients

Real Estate March 25, 2019 01:00

By SOMLUCK SRIMALEE
THE NATION

PROPERTY DEVELOPERS plan to call on the next government to revise the Bank of Thailand (BOT)’s loan-to-value measure, as well as to facilitate home ownership by low-income people and clarify the Land and Building Act, according to industry sources.

“We will ask the new administration to review the loan-to-value measure, effective on April 1, as it will negatively impact the property sector nationwide,” Pruksa Holding Plc’s chief executive officer, Thongma Vijitpongpun, said in an interview with The Nation.

“The measure would make it harder for low-income people planning the purchase of a new property unit, as they may not be able to settle the 10 per cent down payment,” he said.

Under the BOT directive, banks are restricted on the loan amounts they could extend to homebuyers: up to 90 per cent of the value of a new property, 80 per cent for the purchase of a second home and 70 per cent for a third home.

Meanwhile, commercial banks have continued to restrict approvals of mortgages to lower-income people seeking to buy their own places.

LPN Development Plc chief executive officer and managing director Opas Sripayak agreed with Thongma of Pruksa Holding. The new government should relax the measure to provide low-income homebuyers with loans equivalent to 100 per cent of the new property’s value, he said.

“The new government should make it a policy to facilitate home ownership for low-income people through easier access to mortgages with special interest rates,” Opas said.

Currently, most low-income |people face difficulties in securing a mortgage loan regardless of |their ability to repay, mainly due to their failure to produce a sound financial statement to accompany their applications to commercial banks.

“For instance, if a low-income person wishes to own a residential unit priced at Bt500,000, he/she would first have to settle the 10 per cent down payment and other expenses such as the transfer charge and mortgage fee. This means |the applicant must come up |with Bt80,000 up front for |the mortgage loan to be considered,” he said, adding that it is difficult |for them to save up for the down payment.

“Though most low-income people may not be able to afford the down payment on a new property, they can meet the monthly instalment. Most have financial discipline and they all want to keep their homes,” Opas explained.

With his experience in helping low-income customers buy LPN Development’s condominium units, Opas said the company could help them prepare a financial statement for the down payment as required in the application process for a mortgage loan from commercial banks.

“In my view, the new government should ease the loan-to-value measure to support low-income homebuyers,” Opas added.

Prasert Taedullayasatit, honorary chairman of Thai Condominium Association, said maintaining interest rates for the duration of the mortgage loan is another issue that the new government must deal with.

A 1-per-cent increase in interest rate will raise the monthly instalment by Bt800 on a mortgage loan of Bt1 million, he noted.

“The priority of the new government [should be] to assist low-income people acquire homes, by revising the loan-to-value measure and lowering the interest rate,” Prasert said.

Land and Building Act

Speeding up the launch of an organic law for the Land and Building Act, effective since March 12, is also an urgent issue for the next administration, said Issara Boonyoung, honorary chairman of the Business Housing Association.

He said the new Land and Building Act lacks clarity in the area of tax payable on a residential unit put up for rent. It is unclear whether the calculation comes under the residential or commercial definitions – which have different tax rates.

Under the residential definition, a 0.02 per cent tax is imposed on a property for rent, compared to 0.3 per cent of the property’s value under the commercial definition.

For instance, a unit valued at Bt10 million will be subject to Bt2,000 in annual tax under the residential definition, but will surge to Bt30,000 if the property is defined as a commercial building.

“There is a big difference in rates and payments,” said Issara, who is also the chief executive officer of Kanda Group.

Meanwhile, residential units in the inventory of property firms are also undefined, causing management problems and higher expenses. Developers may have to pass on the extra cost under the new act to their customers through price increases.

“I hope the new government will hasten the passing of an organic law to give clarity to the Land and Building Act,” he said.

Market expected to contract by 10%

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Prospective homebuyers at the 40th Home
Prospective homebuyers at the 40th Home

Market expected to contract by 10%

Real Estate March 25, 2019 01:00

By SOMLUCK SRIMALEE
THE NATION

THE THAI PROPERTY market will likely shrink by 10 per cent this year in view of the upcoming loan-to-value reduction measure, say industry leaders.

The market is expected to suffer a 10-per cent contraction with the Bank of Thailand (BOT)’s new regime on home mortgage coming into effect on April 1, says Issara Boonyoung, honorary chairman of the Business Housing Association in an interview with The Nation. The BOT move will greatly reduce the purchasing power of low-income homebuyers, he added.

The market hit a new high last year, recording sales of Bt512.17 billion for 121,193 units, up 18 per cent from the previous year. Properties sold comprised 70,066 condominium units worth a total of Bt293.72 billion, up 19 per cent from 2017; 18,601 single-detached houses with a total value of Bt122.58 billion, an increase of 22 per cent; and 30,914 townhouses worth Bt87.57 billion, representing a 13 per cent rise from the previous year.

The central bank measure will also dampen sales of second and third homes with their mortgage ceilings reduced to 80 per cent and 70 per cent of the property’s value, said Thongma Vijitpongpun, chief executive officer of Pruksa Holding Plc. The market posted double-digit growth last year, he added.

Meanwhile, commercial banks have continued to restrict home mortgage approvals to applicants through tougher criteria. The lower income segment, which accounts for 10 per cent of total market value, has been badly impacted, he said.

Telenor Myanmar to expand 4G network, human capital

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Sharad Mehrotra, chief executive of Telenor Myanmar
Sharad Mehrotra, chief executive of Telenor Myanmar

Telenor Myanmar to expand 4G network, human capital

Corporate March 25, 2019 01:00

By KHINE KYAW
THE NATION
YANGON

IN RESPONSE to the constraints of mobile data availability beyond the major cities in Myanmar, Telenor Myanmar will continue to expand its 4G rollout and the company’s teams of representatives, said chief executive Sharad Mehrotra.

Mehrotra said at the 6th Sustainable Business Briefing on Friday that the firm would focus on improving mobile connectivity through its extensive 4G network and empowering its employees ahead of the launch of 5G.

“5G will come for sure at some point of time. We are now focusing on 4G, and at the same time we also keep an eye on how we can bring 5G to Myanmar,” he said.

According to Mehrotra, the firm has invested more than US$2.7 billion in its network, and will continue to invest in the growth of its employees. Telenor Myanmar currently has more than 800 employees across the nation, 40 per cent women with 30 per cent in leadership positions.

 “Data consumption is very high, particularly in Yangon and the Mandalay regions. It is at the same level as in European countries,” he said.

“It is also increasing in smaller cities. As we travel across Myanmar, we see a big demand for data services all over the country, we make sure most of the areas are 4G-covered, and all the sites have 4G capacity.”

Mehrotra takes pride in providing the largest 4G network in Myanmar for more than 18 million subscribers despite the company switching on its mobile network only in September 2014, much later than its main rival MPT. To date, the firm has more than 8,600 sites nationwide, with 5,600 of them deploying 4G.

“Our network now covers 92 per cent of the population. In terms of geographical coverage, we have covered all states and regions and 307 townships, representing 90 per cent of all townships in Myanmar,” he said.

“This is served by the large distribution footprint of more than 100,000 points of sales, reaching out to customers by selling a wide range of our products and services. As we progress, we will enhance our services based on our experience on the ground.”

Mehrotra focuses on improving customers’ experience rather than being the first to bring 5G to Myanmar. Yet, he reiterated the telco’s commitment to 5G readiness in the nation, citing a joint network speed trail in collaboration with Ericsson which achieved 1Gbps internet speed on its network.

“Minor rollout challenges remain due to security issues in Shan State but we have witnessed tangible improvement in serving ethnic areas,” he said.

“With the assistance of our state liaison officers, we collaborate closely with ethnic groups to explain the benefits of connectivity in their areas.”

According to Mehrotra, empowering its workforce lies at the heart of Telenor’s strategy. High-performing employees are selected to attend executive development programmes at top universities including the London Business School, and 117 employees were part of the programmes last year.

“Last year, our employees spent an average of 45 hours learning new skills, and a total of 37,000 hours on their long-term career development,” he said.

The firm also provides trainings on digital literacy as well as transport safety, and nearly one million people in Myanmar have benefited from its corporate social responsibility programmes focusing on education and health.

For Myanmar people travelling aboard, the firm has launched its low-cost data roaming packs in three Asean countries: Thailand, Malaysia and Singapore.

“We will expand this service in the region, and we may launch packs that cater to those visiting European countries,” he said.

CHARGED UP for the future

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Folger
Folger

CHARGED UP for the future

Corporate March 23, 2019 01:00

By KINGSLEY WIJAYASINHA
THE NATION WEEKEND

2,159 Viewed

WHILE many executives of European car companies find Asian markets, particularly Thailand, to be different from elsewhere in the world, Roland Folger may be an exception.

Last year, Folger, 59, was appointed president and chief executive of Mercedes-Benz (Thailand) Ltd, the official distributor of Mercedes-Benz vehicles in the country.

But unlike many of his predecessors, Folger is no stranger to the Kingdom, having worked closely with former distributor Thonburi Automotive Assembly Plant (TAAP) since the 1980s.

He first joined Daimler AG (the parent company of Mercedes-Benz) in 1979 right after graduation from the Gottlieb-Daimler Gymnasium, and was a key person in the parts organisation department. Folger was assigned to Indonesia, responsible for sales, in 1985 and was later the president and CEO of the Daimler-Benz Representative Office in Singapore between 1988 and 1989.

“You learn something new every time,” says Folger of his assignments in Southeast Asia, which included working with TAAP regarding spare parts. “It was my first impression of Asia and it was a very positive one.”

After other positions around the world, it wasn’t until 2011 that Folger returned to Asia (after highly successful stints in the United States where he helped launched the M-Class SUV and in other global markets), leading Mercedes-Benz Malaysia until 2015 as well as Mercedes-Benz India from 2015 to 2018.

As the world moves towards electrification of automobiles, luxury carmakers like Mercedes-Benz are well on track to respond to new trends.

In September last year the company unveiled its first mass-market electric vehicle (EV), the EQC, which is expected to be offered in Thailand later this year.

Folger says that EVs are a new breed of automobiles that require a supporting network.

“At the moment there is not enough distribution network for charging – that’s the general feeling that people have right now,” Folger says. “And Thailand is not the only country. This happens also in the US and Europe.”

In Thailand, Mercedes-Benz is one of the companies that has been highly active in setting up charging facilities around the country. Apart from home charging, EVs can also be charged at various locations such as hotels, shopping centres, hospitals, offices and even golf courses. Quick charging requires just one to two hours, according to Folger.

“We have about 150 charging boxes located countrywide now and we will continue to build more at wherever people are spending more than an hour or two,” says Folger, adding that other companies are also doing the same thing.

However, the road isn’t exactly clear for the charging business.

“The government might think that everyone wants to get into the EV charging business, but in reality it’s not very profitable. You don’t see car companies investing in petrol stations do you?” he notes. “But by placing them into the right places, we can start the momentum.”

According to Folger, Thailand has a strong position in the EV world, thanks to the large number of government agencies working together on this topic.

“This is important for business as it is more attractive to invest here, when the country says that we want to move into that direction” he says. “Thailand is one of the top five countries in the world for Mercedes-Benz because of the government support for the auto industry.”

He admits that right now EVs might not be a profitable business for the company – Mercedes-Benz has invested 12 billion euros on research and development for electric vehicles alone.

“This is the biggest amount we have put into a specific cause,” says Folger, adding that EV sales could make up just 15-25 per cent of total Mercedes-Benz sales by 2025.

Folger also says that the automotive world is also moving towards autonomous driving, which will complete the package started by EVs.

“In the near future vehicles will be connected and EVs will come with legal autonomous capabilities, with innovative systems that affect people’s lifestyles, such as software that optimises your trip, giving advice along the way with AI (artificial intelligence) systems.

Whether or not Thailand will become an EV exporter in the future isn’t a sure thing, though.

“It depends on what other countries do as well,” Folger says. “As for the Asean scheme, it’s possible. Thailand will be at the forefront of this due to better costs, efficiency and personnel than in other countries in the region.”

While EVs may help remove emissions out of the city, there are other concerns.

“We have to increase EV use in the city in order to get the emissions out of the city first,” he says. “But the power plants are still dirty while other types of transportation are still highly inefficient [and should also be addressed], such as cruise ships or aeroplanes.”

Folger says EVs will change the way we live – just like the mobile phone did. The world is changing very fast and automobile companies that can deal with these changes will be successful.

“It is an exciting time for Thailand,” he says. “I’ve been with Mercedes-Benz for 40 years and have never seen anything like this before.”

MCOT joins ETDA to create innovative ‘WHAM’ platform

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MCOT joins ETDA to create innovative ‘WHAM’ platform

Corporate March 22, 2019 21:56

By The Nation

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MCOT Public Co Ltd (MCOT) is partnering with the Ministry of Digital Economy and Society’s Electronic Transactions Development Agency (ETDA) to launch a new digital media platform.

Kematat Paladesh, MCOT president, said the collaboration is in line with the Thailand 4.0 policy on developing a creativity and innovation-driven economy that will help the country shift from a middle to a high-income one with the implementation of productive growth engines and collaborative network strategies.

“Recognising the importance of digital content and platform development, MCOT, in its capacity as a state media organisation, is joining ETDA to develop the digital platform ‘WHAM’ for Thais. ‘WHAM’ will offer a wide range of entertainment content with a focus on music for the younger generation. This collaboration also extends to the area of human-resource development between the two organisations,” Kematat said.

Surangkana Wayuparb, executive director and CEO of ETDA, said the memorandum of understanding on the management and rights for “WHAM” aims raise awareness and understanding on “creative commons” and intellectual property protection to promote ecommerce in the digital content industry.

“The MoU reflects the collaboration between government agencies in leveraging emerging technologies to develop media innovation. The collaboration aims to set standards on technological security and prevent intellectual property infringement with a focus on developing ‘digital content’ that is disseminated through ‘WHAM’. In addition, the exchange of academic information, hands-on experience and technology related to data analytics management are included in this partnership,” Surangkana said.

“As such, ETDA will support the development of ‘WHAM’, while MCOT will be responsible for developing and managing ‘digital content’ as a type of non-seasonal ecommerce as well as arranging activities on this platform.”

ETDA’s mission is to develop and promote safe and secure electronic transactions through the use of new technology to facilitate the provision of service in both private and public sectors in line with related laws and international standards. Its aim is to also conduct studies and research as well as develop information technologies and communications relating to electronic transactions.

As for MCOT, its mission is to promote content creation to raise public awareness and project a positive image of Thailand through its media platforms to meet the needs of prospective target audiences.

Larger budget, legislation needed for IP assets commercialisation

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

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Larger budget, legislation needed for IP assets commercialisation

Economy March 25, 2019 01:00

By PHUWIT LIMVIPHUWAT
THE NATION

THAILAND SHOULD further improve its human-resource capabilities in patenting so the commercialisation of intellectual property (IP) assets can be enhanced, IP experts suggested.

 The country is ranked 42 in the 2019 US Chamber IP Index among the 50 economies surveyed.

“The biggest setback for Thailand is the lack of patent agents. This means that generally, the quality of patent applications in the country are not satisfactory,” said Orakanoke Phanraksa, senior IP consultant for the National Science and Technology Development Agency (NSTDA)’s Technology Management Centre, Technology Licensing Office.

“Furthermore, there often is a mismatch between the knowledge and understanding of licensing between scientists, patent agents and manufacturers,” she told the press last week.

Orakanoke called on the government to earmark a larger budget for the training of patent agents.

The proposed legislation on technology transfer will help advance the commercialisation of IP assets in Thailand. It has been submitted to the State Council for approval after being passed by the Cabinet.

“Currently, government-funded IP assets are jointly owned by relevant government agencies and research parties. Under the proposal, research institutions such as universities can fully own the IP asset, making the commercialisation process much faster,” she explained.

Also, she said, the new government should continue promoting the country’s IP ecosystem.

Ellen Szymanski, executive director of the US Chamber of Commerce’s Global Innovative Policy Centre (GIPC), concurred with Orakanoke. “We encourage the incoming government to continue the public sector’s sustained efforts to further develop the IP ecosystem in Thailand. Continued efforts from the government are what foreign investors see as most important when investing in a country’s IP assets,” she said.

The GIPC’s 2019 IP Index shows continuous improvement in Thailand’s IP framework, scoring 32.22 per cent in its seventh edition in February from 31.37 per cent in the sixth edition.

The index examines IP policies across eight categories of indicators in order to provide a snapshot of the strength of an economy’s legal and regulatory framework on intellectual property.

Of the 50 countries surveyed, Thailand ranks 42 with top-ranked economies in Asia being Japan, Singapore, South Korea and Taiwan, according to the GIPC official.

“Thailand has performed well in the systemic efficiency category, indicating that government agencies have been cooperating well on IP issues. However, it needs further improvement in the area of IP assets commercialisation,” Szymanski stated.

“Local businesses that embrace strong IP protection are more likely to attract more venture capital, foreign and private sector investments,” she continued.

“In the next three to five years, I see Thailand’s IP framework continuing to improve, given that the public sector continues the reform of IP regulations to improve the ease of doing business.”