Unilever To Move 700 Jobs To Singapore...

[roamer]

Last year Unilever wanted to shoot an ad for one of their products in the Thai market, a shampoo, in the Uk for creative reasons.

They wanted a natural look and specifically wanted to avoid professional models, they were looking for natural not perfection, to that end they advertised and got a pretty fair stream of applicants, the ad director eventually announced himself delighted with the final choice, a mother and daughter.

The shoot was cancelled at the last minute when Thai Unilever discovered that the models were, shock , horror, brown skinned Issan people and objected to it.....ad director walked.

Maybe thats indicative of the type of thinking they want to get away from.

[bkkjames]

Two posts in a row showing how little you actually know about business in general and in particular in Thailand. Simlar to your remarks on Class A office space in Bangkok.

1.As I said, Unilever has a very large office at SCB, no signs of them moving them all to Singapore.

2.Chevron has something like 300 expats in Thailand right now. Does a bit more then drill holes in the ground (most of Chevron’s upstream is offshore anyway). They are putting a couple of billion USD into Thailand these days.

Stick to lower Sukhumvit, you probably know a lot more about that.

TH

Not everyone on here TH is an American living in Nichada whereever the hel_l that is. It must so full of expats that I guess that is reason why they are running a classified ad in the Post looking for a sales manager. Regarding other big companies moving, google Lowe Thailand news, I can send you more if you like.

BTW, I am still waiting for you to enlighten us to the companies 'you know' that are looking for 3000sqm of Grade A office space. Here's a test for you, how many new Grade A office buildings will open in CBD in 2008, 2009 and 2010?

Perhaps you can go refer to Khun Aliwassa's weekly columns in the Bk Post for a hint or refer to BK Bank's outlook for the economy here like you always do.

I suggest you start with some reports from KPMG or PWC before giving us your 52 star Ford, Chevy, Chevron version of how the Thai economy is as and shall be.

[glyph]

"Regarding other big companies moving, google Lowe Thailand news, I can send you more if you like."

No thanks. Please send them to bingokoko, he relishes reading anything negative about Thailand.

[thaihome]

Not everyone on here TH is an American living in Nichada whereever the hel_l that is. It must so full of expats that I guess that is reason why they are running a classified ad in the Post looking for a sales manager. Regarding other big companies moving, google Lowe Thailand news, I can send you more if you like.

BTW, I am still waiting for you to enlighten us to the companies 'you know' that are looking for 3000sqm of Grade A office space. Here's a test for you, how many new Grade A office buildings will open in CBD in 2008, 2009 and 2010?

Perhaps you can go refer to Khun Aliwassa's weekly columns in the Bk Post for a hint or refer to BK Bank's outlook for the economy here like you always do.

I suggest you start with some reports from KPMG or PWC before giving us your 52 star Ford, Chevy, Chevron version of how the Thai economy is as and shall be.

I did Google Lowe Thailand and got:

“Lowe Thailand is one of the Lowe network's eight global hubs, overseeing the Southeast Asia region.” Dated 9 July 2008, so I don’t understand your point.

The fact that you don’t know what or where Nitchada is pretty much says it all as far as what you know about major business in Thailand.

I believe the answer to your 3,000 sq meter question has been answered in that thread, but just to be specific, my company is looking for 3,000 sq meters. Won’t say what company as that gives away too much identity information, but suffice to say we are a major MNC with several huncred employees. I see you have not responded in that thread since it has been confirmed that both Exchange Tower and Interchange are almost or will be, fully leased. You also gave up when you asked for 5 major companies in Thailand and got something 10 and only because the poster got tired of typing.

I have never said the Thai economy is booming, what I have said it is not crashing as some say and some sectors are doing very, very well right now. Just so happens I work in one of those sectors, which is about the 3rd largest sector of the economy. My references to the Bangkok Bank economic reports in response to someone going on about how tourism and agriculture are largest drivers of the Thai economy.

I feel I have a very broad view of business in Thailand as I am involved in billions of dollars worth of contracts with many Thai and international companies for projects in Thailand. I suspect that you have never even been inside a major Thai (or MNC) office in Thailand. Just don’t understand why you ignore facts and insist that Thailand is all fuc_ked up and major companies are leaving it in droves. Things are not perfect, but the end of the world is not nigh and for its size and state of devlopment, Thailand is not doing too bad.

TH

[Captain Chaos]

After reading the article it appears this move is part of some sort strategy to consolidate advertising in one location. Unilever still occupies one entire tower and the small building in front at SCB Park Plaza, so moving 700 positions (and they said no Thai will lose their job) to Singapore does not seem to fit any doomsday scenario as posited here.

Unilever has a huge market for their products in Thailand, and with a population some 10 times greater then Singapore, I don’t see them abandoning Thailand anytime soon. Moving senior people around is a full time job for most MNC’s. How else do you show you are doing something?

TH

Are you serious or just can't see the forest for the trees.

Since when do you have to have a large presence in a market in order to sell to it?

Anyways Unilever will continue to keep factories here because of cheap labor. All skilled high-paying positions will move to SG. This is a trend. Too much hassle/taxation/wp etc etc etc to deal with so keep it to a bare minimum.

While wages may(?) be more in SG, the overall cost of employing a foreigner there is probably cheaper once all the extra governmental fees, conditions, etc etc are taken into account.

"Depends" ... wages / salaries may not be that much higher in SG than you'd expect ... we have (Asian) foreigners in my office making just a few thousand Sing $ a month, whilst a young local person may start on just a couple of grand.

Tax is much lower in SG than in TH (at least for higher earners in TH) so tax equalization is less of an issue to employers who go in for that kind of thing (usually large MNC's, often US ones in my experience)

SG ain't exactly a hardship posting and whilst there are still lots of peeps on full expat gigs here, there are also an increasing number on 'local plus' (cash only) packages, which brings down the overall cost to the employer.

BUT - the killer is accomodation which is much, much more expensive in SG, and even more so in the main city / CBD area. School fees (international ones that is) and medical may also be more expensive.

Offsetting that, as you say, are the hidden costs of hiring foreigners in TH, such as the '4 locals for 1 foreigner' rule if you want the extension of stays - I know we had locals basically doing bogus jobs at my former employer in BKK just so we didn't all have to leave the kingdom every 90 days.

Financially, my guess is that TH is still a bit cheaper overall (mainly due to accomodation) but of course it varies. I'd say companies are more likely to be swayed by the general ease and user-friendliness of the SG visa/work permit system compared to the archaic and byzantine Thai equivalent.

Just my 2 satangs worth

CC

[bkkjames]

Not everyone on here TH is an American living in Nichada whereever the hel_l that is. It must so full of expats that I guess that is reason why they are running a classified ad in the Post looking for a sales manager. Regarding other big companies moving, google Lowe Thailand news, I can send you more if you like.

BTW, I am still waiting for you to enlighten us to the companies 'you know' that are looking for 3000sqm of Grade A office space. Here's a test for you, how many new Grade A office buildings will open in CBD in 2008, 2009 and 2010?

Perhaps you can go refer to Khun Aliwassa's weekly columns in the Bk Post for a hint or refer to BK Bank's outlook for the economy here like you always do.

I suggest you start with some reports from KPMG or PWC before giving us your 52 star Ford, Chevy, Chevron version of how the Thai economy is as and shall be.

I did Google Lowe Thailand and got:

“Lowe Thailand is one of the Lowe network's eight global hubs, overseeing the Southeast Asia region.” Dated 9 July 2008, so I don’t understand your point.

The fact that you don’t know what or where Nitchada is pretty much says it all as far as what you know about major business in Thailand.

I believe the answer to your 3,000 sq meter question has been answered in that thread, but just to be specific, my company is looking for 3,000 sq meters. Won’t say what company as that gives away too much identity information, but suffice to say we are a major MNC with several huncred employees. I see you have not responded in that thread since it has been confirmed that both Exchange Tower and Interchange are almost or will be, fully leased. You also gave up when you asked for 5 major companies in Thailand and got something 10 and only because the poster got tired of typing.

I have never said the Thai economy is booming, what I have said it is not crashing as some say and some sectors are doing very, very well right now. Just so happens I work in one of those sectors, which is about the 3rd largest sector of the economy. My references to the Bangkok Bank economic reports in response to someone going on about how tourism and agriculture are largest drivers of the Thai economy.

I feel I have a very broad view of business in Thailand as I am involved in billions of dollars worth of contracts with many Thai and international companies for projects in Thailand. I suspect that you have never even been inside a major Thai (or MNC) office in Thailand. Just don’t understand why you ignore facts and insist that Thailand is all fuc_ked up and major companies are leaving it in droves. Things are not perfect, but the end of the world is not nigh and for its size and state of devlopment, Thailand is not doing too bad.

TH

All this from a guy who nearly gets nicked for getting his salary paid offshore...ok mate, I will continue to take your business advice, with a grain of salt.

[bkkjames]

http://www.bangkokpost.com/120808_Business...g2008_biz35.php

BOI not even close to target. Add this to....stock market down 15-20% and of course the below. I guess TH will still say things are smelling like roses here because of the auto / oil sectors. Building cars and paying no tax because they are for export makes automakers happy, but besides employing a few thousand Thais at low salaries, I would argue the tourism industry provides more benefits overall for the economy. And of course there is this news...but what do I know, things are fantastic here, now where are my sunglasses?

Business closures up 22 per cent

BANGKOK July 22: -- The number of Thai companies that were forced to close down during the first half of this year nearly hit 7,000, up 22 per cent compared with the same period in 2007, news reports said Tuesday.

Altogether 6,899 companies were shut down in the January to June period, with 1,681 firms closing in June alone, according to figures released by the Business Development Department.

Thai firms are facing a myriad of challenges this year including rising oil prices, an inflation rate that reached 8.9 per cent in June, a slow down in consumption and growing political instability that has affected foreign investment.

During the first six months of this year, some 1,206 new companies were registered, up 6 per cent, the department's deputy director-general Pranit Lortragood said.

Thailand currently has a total of 548,818 registered companies.

[roygsd]

The language barrier issue in Thailand would certainly not make me chose to

open a major business in this country.

I have tried hard to learn to speak Thai. I don't consider myself to be totally incompetent

regarding foreign languages because I've learnt others successfully. But here

several Thais seriously said to me they prefer it if foreigners do not try to speak anyThai unless it is a good standard!

What kind of encouragement is that?

Has anyone noticed how they have a very low tolerance for learners who try to speak Thai?

Is it any wonder that you lose your confidence and your desire to keep trying to learn?

But on the other side of the coin just today I tried to get information regarding what one could consider

a prestige standard service in Thailand and yet :-

1. After sending an e-mail to them

(admittedly in English ) three times all e-mails have been ignored !

2. They are supposed to have an English version of their web site

which is not working and I see on a posting on Wikpedia somebody commented this was the case

as far back as February of this year so there is obviously no desire to remedy that either !

3. I have tried several times to speak with someone at their office on the telephone

and whilst some staff speak absolutely no English the few that do are unable

to understand my question.

So in the end it looks as though I may need to rely on a Thai person to help me

translate to get the required information.

In the global world of 2008 I'm surprised still find the situation still exists in Thailand

and I doubt if you'd have quite so many problems in neighboring countries.

Hi,

Who is Them ?

roy gsd

[think_too_mut]

http://www.bangkokpost.com/120808_Business...g2008_biz35.php

BOI not even close to target. Add this to....stock market down 15-20% and of course the below. I guess TH will still say things are smelling like roses here because of the auto / oil sectors. Building cars and paying no tax because they are for export makes automakers happy, but besides employing a few thousand Thais at low salaries, I would argue the tourism industry provides more benefits overall for the economy. And of course there is this news...but what do I know, things are fantastic here, now where are my sunglasses?

Business closures up 22 per cent

BANGKOK July 22: -- The number of Thai companies that were forced to close down during the first half of this year nearly hit 7,000, up 22 per cent compared with the same period in 2007, news reports said Tuesday.

Altogether 6,899 companies were shut down in the January to June period, with 1,681 firms closing in June alone, according to figures released by the Business Development Department.

Thai firms are facing a myriad of challenges this year including rising oil prices, an inflation rate that reached 8.9 per cent in June, a slow down in consumption and growing political instability that has affected foreign investment.

During the first six months of this year, some 1,206 new companies were registered, up 6 per cent, the department's deputy director-general Pranit Lortragood said.

Thailand currently has a total of 548,818 registered companies.

You are "a bit" off the mark: auto industry in Thai employs 300 thousand people and with support and parts manufacturers it's over 400 thousand people, closer to half a million.

Those companies that have closed, how many people did they employ? How many were Mickey mouse shops or even those set up by farangs to buy condos or houses?

Those Lotus, Carrefour, Big C in Pattaya, what are they there for? Certainly not for tourists (who are not supposed to stock food in freezers and cook themselves), nor for farangs who settled in Pattaya - but to sell to Thais who, just behind the hills, churn 1.2 million vehicles a year.

And this is a good example: remove all tourists and foreigners from those hypermarkets and cashiers would barely get less busy.

True, management would notice that luxury and unfamiliar items (like salmon steaks. Oz beef, imported Japanese strawberries) are not selling well.

Edited August 21, 2008 by think_too_mut

[bkkjames]

http://www.bangkokpost.com/120808_Business...g2008_biz35.php

BOI not even close to target. Add this to....stock market down 15-20% and of course the below. I guess TH will still say things are smelling like roses here because of the auto / oil sectors. Building cars and paying no tax because they are for export makes automakers happy, but besides employing a few thousand Thais at low salaries, I would argue the tourism industry provides more benefits overall for the economy. And of course there is this news...but what do I know, things are fantastic here, now where are my sunglasses?

Business closures up 22 per cent

BANGKOK July 22: -- The number of Thai companies that were forced to close down during the first half of this year nearly hit 7,000, up 22 per cent compared with the same period in 2007, news reports said Tuesday.

Altogether 6,899 companies were shut down in the January to June period, with 1,681 firms closing in June alone, according to figures released by the Business Development Department.

Thai firms are facing a myriad of challenges this year including rising oil prices, an inflation rate that reached 8.9 per cent in June, a slow down in consumption and growing political instability that has affected foreign investment.

During the first six months of this year, some 1,206 new companies were registered, up 6 per cent, the department's deputy director-general Pranit Lortragood said.

Thailand currently has a total of 548,818 registered companies.

You are "a bit" off the mark: auto industry in Thai employs 300 thousand people and with support and parts manufacturers it's over 400 thousand people, closer to half a million.

Those companies that have closed, how many people did they employ? How many were Mickey mouse shops or even those set up by farangs to buy condos or houses?

Those Lotus, Carrefour, Big C in Pattaya, what are they there for? Certainly not for tourists (who are not supposed to stock food in freezers and cook themselves), nor for farangs who settled in Pattaya - but to sell to Thais who, just behind the hills, churn 1.2 million vehicles a year.

And this is a good example: remove all tourists and foreigners from those hypermarkets and cashiers would barely get less busy.

True, management would notice that luxury and unfamiliar items (like salmon steaks. Oz beef, imported Japanese strawberries) are not selling well.

Ok, you guys no much more than me, I surrender But I don't see the factory workers lining up at Tesco (they are too busy eating somtam).

I don't know what the average salary of an autoparts maker is (I am sure TH does), but I would guess that 700 employees at Unilever probably make more than 700 at xyz hubcap maker.

Anyways, this could on forever and quite honestly it's getting a bit old. I agree with the OP, you guys don't. Next.

[hansnl]

But wouldn't wages be much higher in Singapore? The low cost (and probably quality) of hiring in Thailand seems like a reason to stay.

Ah, here we go!

It is not only a question of lower wages, but also a question of productivity!

There is this story of Philips moving factories from Holland to the Balkan for wages reasons.

New factories built, and closed within 3 years, because then they found that the productivity in the Balkan was 20/25 % lower.

And no way the productivity could be raised, whatever was tried!

Now about Thailand.

Productivity?

Wages?

Then about Singapore/China/Vietnam etc

Productivity?

Wages?

Right!

That is why so many factories are closing in Thailand and opening in Vietnam/China/Singapore.