Issue 33

Thailand’s medical tourism industry is the world leader, but as a major Bangkok hospital demonstrates, safety is as vital as value for money.

Thailand has developed a global reputation as a medical tourism destination. In 2013, 1.8 million people came to the country for medical treatment, according to American consulting company Patients Beyond Borders. That places the country above the US and other neighbouring Southeast Asian countries in terms of numbers.

This year the amount of medical treatments provided to international visitors – rather than visitors themselves – is predicted to reach 2.81 million, a 10.2% rise on last year, according to Kasikorn Research Centre, a subsidiary of Kasikorn Bank. Medical tourism should generate earnings in excess of US$3 billion in 2015, from income earned by private hospitals listed on the Stock Exchange of Thailand. This figure does not include ancillary benefits, such as hotel accommodation, flights, restaurant bills, etc. When these are included, the figure rises to US$4.7 billion (2013 figures).

The main draw of the Kingdom’s medical tourism is clear – the cost. The average saving in having a treatment in Thailand rather than the US is estimated as between 50% and 75%. According to a 2013 survey by the Medical Tourism Association in the United States, nearly 80% of demand for medical travel is driven by cost savings.

“While the US is still first choice for the ultra-rich, Thailand is unquestionably number one among everyone seeking affordable care,” says Patients Beyond Borders’ founder Josef Woodman.

But, while it may be the comparatively low prices that draws patients to Thailand, value for money is not the only thing the sector has on offer.

“We really are on par with the top level in Europe and the US,” said Nicolas Leloup, the head of International Marketing at Samitivej Hospitals, of the quality of treatment on offer. “If they [European and US] are old hospitals then I would say we are higher.”

Leloup has due cause for his confidence. Speaking at the opening of the new Critical Care Complex at Samitivej’s Bangkok hospital in June, he claimed it would set “a new benchmark for medical excellence in Thailand”.

The multi-million dollar project was a two-year collaboration between surgeons and medical staff, together with leading architects, engineers, consultants and technology companies. It consists of eight operating rooms, five labour rooms, one neo-natal intensive-care unit (NICU) and 16 intensive-care unit (ICU) rooms.

“Not only does the complex provide the best working environment for surgeons, our eight new state-of-the-art surgical suites are all fully equipped with the latest surgical technology,” said Leloup.

Although Leloup admitted that part of the reason for the new complex was to “maximise the potential of the building,” he maintained that the primary motive was to provide “a safe, sterilised and stress-free environment.”

The hospital has installed a Laminar Airflow air circulating and filtration system in all operating rooms to reduce the risk of airborne bacteria, as well as Thailand’s first glass operating room wall. “The walls inside the operating rooms are laminated, built in one piece with seamless surfaces. The non-porous surface prevents bacteria from developing in the operating room walls which significantly reduces the chances of infection,” said Leloup.

Furthermore, Leloup promised that the bill for all these improvements would not be passed on to patients – with a guaranteed price freeze on treatments for a year and even a discount on 10 key surgeries. Not that the hospital has much flexibility on the prices it can charge patients, as this is closely monitored by medical insurance companies. “If we go crazy with prices they [insurance companies] will not send patients to us,” he explained.

Quality and affordability – no wonder Thailand is number one for medical tourism.

Words by Mark Bibby Jackson

Issue 31

Launched in June, Thailand’s Licensing Facilitation Act promises to make doing business in the Kingdom, more transparent and accountable.

“Faster, easier and cheaper,” so promised Thailand’s Deputy Prime Minister Dr. Wissanu Krea-Ngam of the government’s new Licensing Facilitation Act. The law that was passed in January will come into practice in July, following the statutory 180-day notice period.

Speaking before the European Association of Business and Commerce (EABC) at Bangkok’s Sofitel So Hotel on June 9, the Deputy PM said that the law would “strengthen transparency and accountability in a very tangible way for every government consideration process.”

According to Dr. Krea-Ngam, there are currently more than 500 laws that require permission from the government spanning 2,500 activities. The aim of the new law is to streamline the approvals process and to establish exactly who is responsible for granting the licence, how long it will take, what documents are required and what is the cost.

“The law provides a strong incentive for agencies to perform,” announced Dr. Krea-Ngam. “It goes further by carrying a big stick, and specifies punitive measures in terms of disciplinary action and criminal charges for negligence and corruption.”

The Deputy PM stated that the new law was part of a comprehensive reform programme being carried out by the government. “Our goals are far reaching,” he said. “Every government agency, state owned enterprise, state financial institution and local administrative organisation or local government unit falls under the purview of the reform programme.”

The legislation has been introduced in order to address “past criticisms on property rights, rule of law, red tape, corruption,” Dr. Krea-Ngam added. It will also be subject to review every five years in order to assess whether government approvals are still required.

The legislation was welcomed by the assembled business leaders.

“We are always looking for more transparency to make doing business easier for companies here, so I think it was a very good step forwards for Thailand,” said Rolf-Dieter Daniel, President of the EABC and General Manager of Staedtler. “It makes us more confident and we see it as a sign in the right direction. I think that is a very important thing.”

Daniel believed that Thailand remained a promising country in which to do business. “We [the EABC] have been here for many years and we do good business here,” he said. “We are very positive. Thailand with its strategic location can easily develop itself to become the business hub and gateway to ASEAN.”

Currently the European Union is the largest investor and the second largest trading partner in ASEAN.

Dr. Krea-Ngam also announced that the Licensing Facilitation Act was the first in a series of legislation that would simplify doing business in the country, something which Daniel also welcomed.

“The Deputy Prime Minister said that the next one will be the Procurement Act, and that is also a very important step,” he said.

The Licensing Facilitation Act will benefit Thailand’s trade links, increase the confidence of both buyers and sellers, and is a key component of the government’s strategy to transform the country into the hub of the forthcoming ASEAN Economic Community.

Words by Mark Bibby Jackson

Issue 32

With the advent of the ASEAN Economic Community (AEC) at the end of 2015, Thailand is perfectly placed to benefit from its competitive advantage in the steel industry.

Thailand’s stainless steel industry has a promising future not just domestically, but also to penetrate foreign markets in Asia and the US, says one of the country’s major steel manufacturers.

“Thailand is the only country in the region that has large-scale stainless steel kitchenware factories, which offers many opportunities for business growth due to less competition,” explains Aroon Ruengcharungpong, Chief Executive Officer of Thai Stainless Steel, which produces the Seagull brand. He also believes that Thailand is blessed with highly skilled labour force, which helps with product development and customer services.

According to Ministry of Commerce figures, the amount of steel products exported to Asia alone from January to May this year increased from 17.9 billion baht in 2014 to 20.3 billion baht.

“Seagull was formed in 1994, with the aim to become a market leader in stainless steel kitchenware for both local and foreign markets under the slogan ‘Buy Quality, Buy Seagull’,” explains Ruengcharungpong. “After a while the trend shifted from stainless steel to non-stick kitchenware.”

The company, which was awarded the 1997 Prime Minister’s Export Award (now the Prime Minister’s Business Enterprise Award) for Distinctive Development & Marketing of Thai owned-Design for Exports from the Ministry of Commerce, now exports to markets in Asia and the US. “Our brand products are mainly exported within Asia,” says Ruengcharungpong. “In addition, we also provide an Original Equipment Manufacturer (OEM) service, with the US being the major market. At the moment, our ratio of local to export sales is 3:1.”

Ruengcharungpong believes a major factor behind the company’s growth has been securing effective business partners and distributors. “Depending on the size of the markets, in some countries we have more than one partners and/or distributors. For example, we have two business partners in Myanmar since it is a large country,” he says.

Thai Stainless Steel implements quality control procedures to ensure that products and services meet both national and international requirements.

“Some countries such as Japan have certain rules and regulations and our products have always met their requirements,” explains Ruengcharungpong, adding that market trends play a major role in product development. “It is an on-going process but looking into consumer demand can tell us what kind of products we should focus on and further develop. It’s not just about the quality but product design as well.”

The company plans to have more business partners and distributors in 2015. “We see potential in Vietnam and we are looking to have more business connections in the country,” he says. “The company is also planning to expand into the Middle East and Europe.”

For more information, visit www.seagull-brand.com

Words by: Manisa Phromsiripranee

Issue 30

A Thai startup has developed accounting software that meets its clients’ requirements rather than conforming to an accountant’s rulebook.

Often the secret to business success is realising the gap in the market. This is certainly the case with Kridsada Chutinaton, who developed his FlowAccount software, to simplify accounting for small businesses of one to five people.

“In the market today, most [accounting] programmes are designed for accountants so they are difficult to use, and more appropriate for larger companies,” he says. “The needs of small businesses are different, and they don't need all those functions.”

FlowAccount software is available in both cloud and mobile application formats, and can create tax invoices, compile sales reports and track payments for multiple users. The software can be downloaded for free. According to Chutinaton, about a third of registered users are freelancers, another third are unregistered companies, and the final third registered companies.

“We developed a mobile application to encourage people to work from anywhere they want and to fit their lifestyles,” he says. “[The software] even links with chat applications. So if we start from the user's needs and not the accountant's needs, this is what we get.”

In March, FlowAccount won the Echelon Thailand qualifying round. “The competition is held in 14 countries, such as Vietnam, Malaysia, Indonesia and Singapore,” explains Chutinaton. “On June 23 we will go to compete for the regional winner in the final round in Singapore.”

Chutinaton believes that Thai startups like FlowAccount have come a long way in the past five years. “There are many different kinds of startups, from social media, finance, technological, to applications for stock trading,” he says.

Due to support from both international and Thai investors, such as DTAC, AIS, and TRUE, who act as incubators and provide training and financing in exchange for shares, the scale of startups has increased, according to Chutinaton. “In Thailand mostly the first round of funding is about 1 million baht, compared to only 300,000 baht a few years ago,” he says. “There are also more venture capitals. People who have ideas for startups have more opportunities now.”

Chutinaton believes that the strength of Thai startups lies in the ability to transpose solutions to challenges solved in Thailand, such as cash transactions, to other countries at a comparatively low development cost.

“We don't need to think of new technology. We need to apply the existing technology to answer users’ needs and give them solutions. Thai people have the potential to do that already,” he says.

In the future Chutinaton believes that FlowAccount has a potential outside of the narrow confines of accountancy. “In the long term we have plans to link the programme to banking services, payroll services, and billing for water and electricity,” he says.

Words by Sirinuch Borsub