British Chamber of Commerce Thailand Greg Watkins Executive Director British Chamber of Commerce Thailand E: greg@bccthai.com W: www.bccthai.com

600+ corporate members and 100+ events per year. Chamber Background Founded in 1946: the oldest foreign chamber in Thailand and oldest British chamber in Asia. 600+ corporate members and 100+ events per year. 14 staff, 14 Board Directors & 10 Honorary Advisers. 4 staff on Business Support Services for UK SMEs. 100+ completed projects and 1,500+ SMEs assisted in 4 years. 8 BCCT committees & active on all advocacy groups of European Association for Business & Commerce (de facto EuroCham) in Thailand. British Business Centre provides facilities for meetings, receptions, presentations, seminars, product launches – hosted 100+ activities in 2016.

Economic Update & Political Situation Thailand has scale: 68 million population (Bangkok 10m). Bangkok regional hub especially for Cambodia, Laos, Myanmar & Vietnam. Regional integration. 5 hours flying time of half the world’s population. Economy robust – business sector drives the economy 3- 3.5% GDP in 2017. Inflation 0.7-1.7% in 2017. Exports important to economy. 6-6.5% rise in 2017. Key exports: auto parts, computers, rubber, plastics, electrical circuits, machinery, chemicals. Special Economic Zones – border & clusters. Thailand 4.0: national strategy on added value, high technology and innovation – key to reduce bureaucracy. One-stop service for business registration to come Politics: military administration since May 2014 – form of stability. New constitutions and elections to come

Doing Business Basic business laws work. Market access improvements from future bilateral FTA or individual sector treatments? 49/189 in World Bank Ease of Doing Business Survey. 28/61 in IMD World Competitiveness Ranking Low tax environment: corporate 20%, VAT 7% Good infrastructure; reliable utilities & comms; hard- working & adaptable workforce Skills challenge – soft & hard e.g. leadership & decision- making => opportunities for UK training Investor-friendly tax and non-tax incentives incl. services via Board of Investment & ASEAN Free Trade Area Key BCCT issues: liberalisation of Foreign Business Act, land & property ownership, & visas/work permits Social media – Bangkok highest Facebook use per person of any city but mostly personal use. 8th in YouTube use

UK Presence Strong bilateral relationship - trading for more 400 years Brits are seen as reliable & good to do business with – about 50,000 resident expats British brands are well-respected – union jack/royal crest Thais like British products, fashion and culture – in-built advantage. Many well-established brands. More wanted UK exports: £2 billion, Thai exports: £3 billion. Top UK exports – iron & steel, electrical equipment, vehicles, travel services, precious stones & metals, beverages & food, & pharmaceuticals Nearly 1 million tourists visit Thailand every year Thai-UK Business Leadership Council established in 2016 by Thai PM to develop bilateral trade and investment TUBLC: business to business leadership. Focuses on bilateral market access issues. 3 groups: Ease of Doing Business; Import/Export & Technology & Innovation

Opportunities Eastern Economic Corridor (EEC): Thailand 4.0 initiative: smart technology, urbanization, roads, railways, port & airport development, digital parks ICT: digital infrastructure, e-commerce, e-government, transport technology, cyber security, data centres Transport/Infrastructure: £40 billion investment 2015-22 Agri-business & Food/Drink: one of region’s largest markets. New more sophisticated technology. Growing tourism sector. Higher middle-class disposable income Retail & Consumer goods: new shopping malls and retail concepts opening across the country. Power & Renewable Energy: energy deficit. Masterplan 25% of needs from renewables by 2022. Education & Skills: strong business demand for quality English speaking talent. Vocational skills shortage. Engineering: electronics well-established, automotive (9th largest in the world), petrochemicals & machinery Pharmaceutical & Healthcare: 70% of medical devices imported. Medical tourism. Hospital certification