German-Thai Chamber of Commerce - 'Long-term outlook not hurt by crisis'

[webfact]

'Long-term outlook not hurt by crisis'
Pichaya Changsorn
The Nation

BANGKOK: -- If you see Karl-Heinz Heckhausen, president of the German-Thai Chamber of Commerce, visiting Suvarnabhumi Airport more often these days, don't be surprised.

He is helping to persuade foreign investors to keep coming to the Kingdom.

While massive anti-government protests have continued for more than two months and there is some concern there could be an airport blockade, Heckhausen said he had been encouraging foreign investors to fly in and agreed to meet them at the airport.

"I'm on my way at the moment to the airport," Heckhausen said during a telephone interview with "Business Talk", broadcast on Krungthep Turakij TV last Thursday night.

"I'm convincing investors to come to Suvarnabhumi Airport and I have my meeting [with them] there. Because I told them you must come now in a difficult time and I will be responsible for your safety.

"So we're not going into Bangkok. We have a meeting at the airport, because I'd like to support Thailand … Our neighbouring countries - Indonesia, Malaysia, Vietnam - are taking advantage of the situation in Thailand, which I don't like," he said.

Heckhausen said the headquarters of many international companies were asking about the implications of the state of emergency that the government decreed last Wednesday, such as how safe Thailand is and whether it is safe to send their people to the country. The automobile industry, he said, had already suffered an impact as consumers are putting off plans to buy expensive cars.

A long-time resident in Thailand, Heckhausen said he was usually an optimist, but currently he was very concerned because there is apparently no space for dialogue between the demonstrators and the government.

"The question that you and I can't answer is when the demonstrations will be over and the emergency degree revoked, and we will have a normal situation," he said.

'Amazing resilience'

Arnaud Bialecki, country manager of Sodexo Thailand, the local unit of a French management company for food services and facilities, said most foreigners who had done business in Thailand for a long time knew that common sense eventually prevails. They have also seen on numerous occasions how quickly Thais recover from natural or man-made disasters.

"This amazing resilience is truly unique," he said.

While there are, of course, short-term concerns, the long-term outlook remains positive, he said.

"It's true that many of our hospitality clients see a decrease in activity, so for the time being we are controlling our costs accordingly."

Bialecki said Sodexo was still winning new contracts from clients, and so it could reassign some of its staff from the affected contracts to the new ones.

"We have no plan to cut down our investments. We actually continue investing on new technology so that we can become more efficient and more reactive to any unforeseen situation," he said.

Ian Pascoe, managing partner of Grant Thornton Thailand, a professional-services firm, said that at this stage foreign investors remained positive on Thailand, although one public relations and advertising project might be cancelled.

Pascoe, whose firm offers various services including management and tax consulting, corporate finance and executive recruitment, said foreign investors in general saw the Thai economy as being resilient.

"Our clients are still optimistic that Thai GDP will eventually recover," he said. But he acknowledged that for those investors who valued political stability, other countries in the region such as Vietnam, Indonesia or Myanmar might seem a safer bet.


-- The Nation 2014-01-27

[kalbo123]

Sure, and in the long term we are all dead.

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[noitom]

A pure horse manure article. They are sound biting anything resembling a sign of positive encouragement. And they've got this German guy out shilling for the Thai establishment. When will global company's boards and risk management operations officers have enough of Thailand's cheap labor, opaque company operations, and bribes and payoffs, and clear out of Thailand? Would the comments in this article stand up to "prudent" board oversight on their investments in Thailand now and in the future?

[NongKhaiKid]

Wishful thinking. Included in the phrase ' long term ' is this situation and an election will prove nothing as there may not be enough MPs for the House to sit plus 308 MPs are facing action by the NCCC and YL may well be charged as well. No matter what happens next Sunday one side of the current mess will not be happy.

Finally, and i will word this carefully there's the health of a certain revered gentleman to be considered.

[Thai at Heart]

Since when is it the thai German chamber of commerce to promote thailand to investors?

It's his job to objectively help German companies to make the best investment decisions. Not to hawk Thailand as a destination. Isn't it?

[EricBerg]

The guy probably has a strong personal interest in inviting possible investors to the airport. But since the shooting is continuing in Bangkok, I cannot imagine those investors will invest in a city in which they don't dare to go themselves.

Then again after all this is over and the shinaclan is gone, it may very well be cheaper to invest in Thailand and Bangkok. After all the country has rocketed to the world top of corruption in the shina-era.

[Tatsujin]

Wishful thinking. Included in the phrase ' long term ' is this situation and an election will prove nothing as there may not be enough MPs for the House to sit plus 308 MPs are facing action by the NCCC and YL may well be charged as well. No matter what happens next Sunday one side of the current mess will not be happy.

Finally, and i will word this carefully there's the health of a certain revered gentleman to be considered.

Your last sentence is a very major factor in what is/has been going on here in the last decade, and it's not something that can easily be discussed. Reading back through old articles from when Thaksin was PM and prior to that says a lot about where loyalties/support lie however.

[noitom]

Since when is it the thai German chamber of commerce to promote thailand to investors?

It's his job to objectively help German companies to make the best investment decisions. Not to hawk Thailand as a destination. Isn't it?

And he limos out to the airport because he fears security and violence in the Thailand's capital Bangkok where his office is.

[Somtamnication]

The Germans need to continue making sausages and stop interfering with Thai politics.

[KimoMax]

I never believe the Propaganda spewed from persons trying to promote or protect their own personal interests.

No different than TAT or other assurances that Thailand is good for investment etc.

The conflict now and other recent conflicts can be disturbing to investors and tourists alike.

No one knows what will happen in the future with the Thai economy.

[jerrybuice]

It sounds like the same words Ben Bernanke used right before the crash of 2008.

[IamNoone88]

Toothless comments. I am starting to lay off people and strip out costs and this will gather pace until this mess shows signs of being resolved. I doubt any existing investor will place further FDI into Thailand and I am sure those considering will now think twice - there are plenty on more stable economies that are competitive and deserving of consideration. It's like a sinking ship with the Captain holding up a bottle of champagne in full denial! Wake up Thailand, very, very sadly this is rapidly becoming Thailand's lost decade and not due to the hard working nature of the people or the huge potential Thailand has, but the incredible lack of leadership and unprofessionalism consistently shown by the country's government - whoever is in charge.

[jollyman]

president of the German-Thai Chamber of Commerce, "I'm convincing investors to come to Suvarnabhumi Airport and I have my meeting [with them] there. Because I told them you must come now in a difficult time and I will be responsible for your safety" great way to get inverters, sure they will be impressed having to HIDE at the airport

Cant have a nice evening and some knee wobbles in Soi Cowboy

[Prbkk]

Vested interest or not, this makes a lot of sense to me. Some people have a strong desire to weaken the economy. Thailand has proven to be a very good place to invest and will continue to be so long after these current political problems are resolved. There is not much new here: of course the competitor countries are taking advantage of this situation. Why wouldn't they? Laughing all the way to the bank at Thailand's expense. Time to quit Mr Suthep and allow the economy to recover. You have hurt too many people for way too long. Get your thugs off the streets or people will be calling for the water cannon to be mobilised to wash them away

[SamMunich]

Since when is it the thai German chamber of commerce to promote thailand to investors?

It's his job to objectively help German companies to make the best investment decisions. Not to hawk Thailand as a destination. Isn't it?

Sorry to disagree, but the German - like all other Chambers - is interested in supporting foreign / German companies setting up and running business here. The get fees and dues by member companies, so more companies means more likely (because it's voluntary) paying members. And the Chambers get financial support from "home" to help companies from "home" to set up shop here and to help them.

And the Chambers are the principal lobby group versus the government, e.g. in issues like work permit and other legal things.

[ppmacready]

Is this the same company that said there was no civil war going to break out in Syria?

[Thai at Heart]

Since when is it the thai German chamber of commerce to promote thailand to investors?

It's his job to objectively help German companies to make the best investment decisions. Not to hawk Thailand as a destination. Isn't it?

Sorry to disagree, but the German - like all other Chambers - is interested in supporting foreign / German companies setting up and running business here. The get fees and dues by member companies, so more companies means more likely (because it's voluntary) paying members. And the Chambers get financial support from "home" to help companies from "home" to set up shop here and to help them.

And the Chambers are the principal lobby group versus the government, e.g. in issues like work permit and other legal things.

That's more or less what I meant. He isn't meant to act like a travel agent but more a very honest fixer.

[Baerboxer]

Vested interest or not, this makes a lot of sense to me. Some people have a strong desire to weaken the economy. Thailand has proven to be a very good place to invest and will continue to be so long after these current political problems are resolved. There is not much new here: of course the competitor countries are taking advantage of this situation. Why wouldn't they? Laughing all the way to the bank at Thailand's expense. Time to quit Mr Suthep and allow the economy to recover. You have hurt too many people for way too long. Get your thugs off the streets or people will be calling for the water cannon to be mobilised to wash them away

An investment guru was on Bloomberg saying much the same in all fairness. The underlying economy and fundamentals are strong and will pick up quickly

He didn't see the political instability as anything new or mega serious to the long term, from an investors view. In fact he was suggesting now would be a good time to invest for those with a risk appetite.

He didn't want to make references to either political side, other than the rice scheme was widely seen as disastrous and the corruption levels increased.

I don't think anyone would call for water cannons. And removing Suthep and his supporters off the street will not resolve the issues the caretaker government will face in an array of probes and possible prosecutions.