1. THAILAND ‘Ranked 12th in the World for Ease of Doing Business’ Greg Watkins, Executive Director, British Chamber of Commerce Thailand

2. INTRODUCTIONS Greg Watkins: lived & worked in Thailand for 19 years; 2003 - Permanent Resident; 1997 -> Executive Director, BCCT; 1992-6 - Marketing Director, Tara Siam, Bangkok; 1987-91 - DTI UK; greg@bccthai.com BCCT: oldest & biggest Britcham in Asia; 650+ members (2x since 1998); 110+ events (3x since 1998); Mission => www.bccthai.com

3. BCCT MISSION STATEMENT "To serve the needs and promote the development of British business in Thailand and as 'Partners in Progress' contribute directly to Thailand's economic advancement"

4. THAILAND HAS BEEN AND REMAINS A VERY GOOD PLACE IN WHICH TO INVEST Business in Thailand succeeds despite political uncertainty

5. Asia: Ease of Doing Business Ranking Country Overall Rank Starting Business Construction Permits Employ Workers Register Property Get Credit Protect Investors Pay Tax Cross Border Trade Enforce Contracts Close Business 20102009 Singapore11421164251132 United Kingdom 5616 352321016 239 Thailand12 5513526711288122448 Malaysia23218810961861424355957 China 8986151180140326193125441865 Vietnam93911166910340301721477432127 Brunei9694153754183113119224816037 Indonesia12212916161149951134112745146142 India 13313216917510493304116994182138 Cambodia145139173145134116877358127141183 Philippines14414116211111510212713213568118153 Laos16716589115107161150182113168111183 Myanmarn.a (ranking out of 183 countries) Source: World Bank: Doing Business Series 2010 (total 183 countries)

6. DOING BUSINESS “ commitment to a business/investor friendly environment, open access to Thai markets and the rule of law” (+): basic business laws are workable (Foreign Business Act/Board of Investment) – unchanged throughout political instability; good infrastructure; reliable utilities & communications; educated, hard-working & adaptable workforce; Commerce Ministry aim: 12 th to 9 th (-): slow liberalisation of protected industries in recent years; land/property ownership (leases only 30 years); unnecessary red-tape (eg work permits, VAT refund delays); consultation with foreign business community

7. ECONOMY –Positive trends in private consumption, commodity prices, unemployment (<1%), private investment, exports and business & consumer confidence –Growth in GDP (5.8% in Q409; ~2.8-5% in 2010) –Inflation up 3.7% in Feb YoY => recovery –Export diversity (70% of GDP): over 50% of exports to developed economies (US, EU, Japan), 30% to Asia in 2000; now over 50% to Asia –Fast growth in electronics, auto parts, food, tourism –Thai banks strong; not exposed to banking crisis & all have foreign expertise –20% increase in UK exports to Thailand in 2009. Two- way trade strong at nearly £3 billion

8. INVESTMENT (+): BOI – open environment, excellent package of incentives (& customer service), own land, majority or 100% ownership, duty/tax exemptions/reductions, targeting services & creative sectors; reduce red-tape; need to ease regulations to promote competitiveness; improving investment promotion & protection laws (-): not level playing field - FTA’s (& Treaty of Amity), minority ownership; more restrictive legislation (eg FBA) if not BOI-promoted; bureaucracy; slow resolution of ‘Map Ta Phut’ issues; more labour protests; dependence on oil – poor rail network; danger of losing competitive advantage in the region

9. Challenge 1: Competitiveness (ranking out of 133 countries) Source: World Economic Forum : The Global Competitiveness Report Country GCI 2009 - 2010 GCI 2008 - 2009 RankScoreRankScore Singapore35.5555.53 United Kingdom135.2125.3 Malaysia244.87215.04 China294.7304.7 Brunei324.64394.54 Thailand364.59344.60 India494.3504.3 Indonesia544.26554.25 Vietnam754.03704.10 Philippines873.90714.09 Cambodia1103.511093.53 Laosn.a Myanmarn.a

10. Challenge 2: Transparency Country1999200020012002200320042005200620072008 2009 RSRSRSRSRSRSRSRSRSRSRS Singapore79.16 49.259.359.459.359.45 49.349.2 3 United Kingdom 138.6108.7138.3108.7118.7118.6118.6118.6128.4167.7177.7 Malaysia325.1364.8365.0334.9375.2395.0395.1445.0435.1475.1 564.5 China 583.4633.1573.5593.5663.4713.4783.2703.3723.5723.6793.6 India 722.9692.8712.7712.7832.8902.8882.9703.3723.5853.4843.4 Thailand683.2603.2613.2643.2703.3643.6593.8633.6843.3803.5 843.4 Indonesia961.7851.7881.9961.91221.91332.01372.21302.41432.31262.6 1112.8 Vietnam752.6762.5752.6852.41002.41022.61072.61112.61232.61212.7 1202.7 Philippines543.6692.8652.9772.6922.51022.61172.51212.51312.51412.3 1392.4 Laos____________773.31112.61681.91512.0 1582.0 Cambodia____________1302.31512.11622.01661.8 1582.0 Myanmar________1291.61421.71551.81601.91791.41781.3 1781.4 Source: Transparency International: Corruption Perception Index R = Ranking out of 98 countries in 1999, rising to 180 countries in 2009 S = Score out of 10

11. CONCLUSIONS/CHALLENGES Economic recovery ongoing and accelerating but… competitive advantage in the region eroding as a result of lack of long term economic policies & legislative inertia political instability (since 2006), many Thais fed-up but… Thai politics has never delivered sustained stability Second stimulus package THB 1.43 tn (speed-up rollout) Income gap remains – Land Tax in 2010? bureaucratic reform essential – change regulations positive change at Customs - but stricter enforcement of IP laws needed – desire to address corruption still long-term approach – patience/common sense