ASEAN: Thai firms prep for ASEAN’s AEC as multinationals like Siemens, Kimberly-Clark & Berkshire move

Kittirat wants Thai firms to think AEC

  • By Pooky, Thai Intel’s economics journalist

After the Yingluck government came to power, it had been buffeted by a historical flood crisis, leaving little room to address many of Thailand‘s other pressing challenges-and one of this challenge is preparing Thailand for the ASEAN Economic Community (AEC).

“Think AEC,” Kittirat, Yingluck’s finance minister, said, today, in urging Thai firms to prepare themselves for AEC.

The roots of Yingluck’s Pheu Thai Party, is the Thai Rak Thai Party of Thaksin, who was the first Thai political party in the history of Thai politics to stress the SME sector-which is one area, many Thai academic are concerned about, as related to AEC.

Yesterday, Kittirat, in addressing a major economic policy meeting organized by the Bangkok Post, told about 1,000 people who attended the meet that what Thailand needed, was a “New Thinking.”

Yet as Thailand was devastated by the flooding, global business moves on-doing very much as Kittirat is saying, about “New Thinking.”

Over the past week, major names among the global class multinationals have been making  moves in ASEAN-all drawn to the quick approaching ASEAN Economic Community (AEC).

Scan Asia reports Siemans in wind turbine contract with a Scandinavian wind firm. An India news outfit, reports Kimberly Clark now stress Asia Pacific Model, and Reuters reports Berkshire, is now confirmed to be in Thailand-after sneaking in since December.

For Thai multinationals, many such as the Thai petro chem firm PTT, mining firm Banpu, and also the construction materials conglomerate, SCC, along with construction firm, Ital Thai-all have been making important strategic moves in the ASEAN region.

Scan Asia Reports:

Danish Wind Power Penetrates Thai Market

24 February 2012 | news Dennis Krog

Siemens Wind Power has received two major Thai orders totaling 90 wind turbines with a total capacity of approximately 200 megawatts. The order is the first ever to the Danish based company from Thailand.  The turbines will be situated at two wind farms in the Nakornrachasrima province in the Northeastern part of Thailand.

India Times Reports:

Kimberly-Clark Corporation moves to Asia Pacific model

By Emily Tan, Manmohan Taparia on Feb 22, 2012 (1 day ago)

filed under Marketing, India

Kimberly-Clark Corporation has announced consolidation of its North and South Asia regions into a single Asia Pacific model

According to the company, the reason for the switch to the new model is because Asia Pacific is one of the fastest growing and exciting regions in the world today. With the integration of these two regions Kimberly-Clark aims to simplify its business and better focus resources on key priorities, enhance its ability to quickly move innovation across markets, and further strengthen its ability to develop people, as well as provide them with an even broader range of rich career experiences.

Reuters Reports:

By Clare Baldwin and Khettiya Jittapong

HONG KONG/BANGKOK | Wed Feb 22, 2012 10:44pm EST

(Reuters) – Warren Buffett‘s Berkshire Hathaway (BRKa.N) is pushing into the Thai reinsurance market and selling cover for higher rates, taking advantage of the retreat of competitors such as France’s CCR after they suffered losses from last year’s floods.

The presence of the U.S. conglomerate in the Thai market was confirmed by several sources in the insurance industry, including one who said Berkshire began doing business in the country in late December.

“Obviously a number of reinsurers have been affected… some decided to pull out entirely. Only the new guy (Berkshire Hathaway) who had not much money involved, can come in and offer cover,” said one reinsurance executive in the region.

Berkshire’s strategy in Thailand, which had a non-life reinsurance market of roughly $1 billion in premiums in 2010, is being led by top reinsurance executive and potential Buffett successor Ajit Jain, and is opportunistic, the sources said.

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