Issue 25 | August 2011 | swIss-thAI ChAmber of CommerCe | Newsletter
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August 2011 | SwiSS Thai Chamber of CommerCe | 03
in Bangkok will be published in the next newsletter. Our chamber fully supports these activities and while several members have already made valuable contributions, additional sponsors are most welcome. Any members wishing to know more details on the benefits of sponsorship, i.e. brand or company name exposure, booths at Paragon during the event etc. may contact the chamber and we will direct you to the responsible organizers.
affect our members. This information will be useful in determining the
STCC’s position on this topic.
In this issue we are launching a monthly economic report, courtesy of the
Deutsche Bank, which should respond to readers requests for more economic and financial news. Many thanks to our sponsors Deutsche Bank.
Sincerely yours,
Niti Meyer, President dr. niti Meyer, President
The Swiss National Day celebrations have just passed and on behalf of our Swiss members I would like to thank Their Excellencies Ambassasors Christine and Christof Schraner Burgener for opening the doors of the embassy residence for all
Swiss citizens to enjoy a few hours of togetherness. The atmosphere, music, food and drinks (and the weather) were truly reminiscent of home and the appreciation was heartfelt by all attendees.
As mentioned in earlier editions of this newsletter the year 2011 marks an important milestone for Swiss – Thai relations namely the 80th anniversary of the establishment of diplomatic relations between the two countries. At the same time of course 2011 is the auspicious year of HM The King’s 84th (7th cycle) birthday celebrations. Therefore the Embassy of Switzerland and the
Swiss Students Alumni Association are hosting a charity event called “Siam Nitasratchamongkol” with an exhibition at the Siam Paragon Shopping Complex from November 28-30, 2011. The proceeds of the program will benefit the
Ananda Mahidol Foundation under the royal patronage of HM King Bhumibol
Adulyadej. The main activity of this foundation is to provide scholarships to deserving students mainly at university level. An outline of the activities
On the political front all Thais as well as the foreign business community are awaiting the announcement of the new cabinet with great interest. The new government will have to carefully evaluate the impact of some of its more challenging campaign promises to see how the economy can cope with their implementation. The prospect of a 300 baht daily minimum wage has caused some consternation especially among
SMEs and labor-intensive industries.
Combined with the 15,000 Baht minimum salary for university graduates this may cause a chain reaction in salary increases overall in many companies and lead to higher living costs, more unemployment etc.
It would seem that if the new government implements these increases, it should if possible do so gradually while at the same time emphasizing improvement of labor skills training for low-skill workers. I see this as an urgent priority: based on a recent paper by the Thailand Development and Research Institute (TDRI) SMEs employ around 7 million people with a monthly income of less than 20,000 baht. If a large number of these SMEs are forced to close due to higher costs this will create a lot of hardship for the unskilled segment of the work force, precisely the people the government wants to help.
Our chamber will shortly send out a survey to all members to gather some data on the minimum wage issue in order to have an idea of how it would
CORRECTION
In the President’s Message in the July
2011 edition of the STCC Newsletter
I mentioned the JFCCT charter had already been adopted. In reality only a final draft has been distributed to all member chambers and the vote for adoption will take place at the next
JFCCT Presidents Council Meeting on
August 17th, 2011.
My apologies for any confusion caused.

04 | SwiSS Thai Chamber of CommerCe | August 2011
Deposit Protection – new regulations for Thailand
By virtue of the Deposit Protection
Agency Act 2008 ( the “DPA Act” ) the deposited amount with the financial institutions in Thailand had been protected without limit. However, starting from 11 August 2011 which is the fourth year of enforcement of the DPA Act the protected amount will be reduced to Baht 50,000,000 and from 11 August
2012 onwards to Baht 1,000,000 per account per customer.
2. To collect premiums from insured financial institutions, to accumulate the premiums in the deposit protection fund that shall be used for reimbursement to depositors should an insured institution fail, and to act as a liquidator of the failed financial body.
The insured financial organizations are commercial banks, finance companies and credit foncier companies, which are listed below (status December 2010):
The deposit protection is a system established by the government in order to strengthen the financial institutions and protect depositors within mentioned limits against the loss of their deposits placed in a financial institution. Depositors will be reimbursed within the stipulated period of time without having to wait until the liquidation process is finalized.
The key concept of deposit protection is to guarantees for deposits in the insured financial institutions in order to eliminate the impact to depositors in an unlikely case that the financial organization failed. Small depositors, who represent the major of all the deposit accounts, are fully protected.
Depositors whose deposits are in excess of the coverage amount will have to pay more attention to the performances of financial institutions, which in turn will encourage the financial institutes to conduct their business in a prudent, transparent and professional manner.
The Deposit Protection Agency (DPA) has been established as a government organization. The Agency is governed by the Board of Directors, which comprises representatives from the Ministry of Finance and
Bank of Thailand as well as expert members nominated by the Minister of Finance with approval from the Cabinet.
The Deposit Protection Agency’s main functions are as follows:
1. To provide protection for deposits in insured financial institutions.
Commercial banks
(including branches of foreign banks)
• Bangkok Bank
• Krung Thai Bank
• Bank of Ayudhya
• Kasikorn Bank
• Kiatnakin Bank
• TMB Bank
• TISCO Bank
• CIMB Thai
• Siam Commercial Bank
• Thanachart Bank
• The Siam City Bank
• United Overseas Bank (Thai)
• Sandard Chartered Bank (Thai)
• Industrial and Commercial Bank of
China (Thai)
• The Thai Credit Retail Bank
• Land and Houses Retail Bank
• Mega International Commercial Bank
• Credit Agricole Corporate and
Investment Bank
• JPMorgan Chase Bank, National
Association
• Citibank, N.A
• Sumitomo Mitsui Banking Corporation
• Deutsche Bank AG.
• BNP Paribas
• Mizuho Corporate Bank, Ltd.
• The Bank of Tokyo-Mitsubishi UFJ, Ltd.
• Bank of China Limited
• Bank of America, National Association
• RHB Bank Berhad
• Indian Overseas Bank
• The Royal Bank of Scotland N.V.
• Oversea-Chinese Banking Corporation
Limited
• The Hong Kong and Shanghai Banking
Corporation Ltd.
Finance companies
• Bangkok First Investment and Trust
• The Siam Industrial Credit
• Advance Finance
Credit foncier companies
• Lynn Phillips Mortgage Credit Foncier
• Sahaviriya Credit Foncier
• Asia Credit Foncier
However, there are certain financial institutions which are excluded from the DPA Act since the law regarded that such financial institutions are the specialized financial institutions e.g. Government Savings Bank,
Bank for Agriculture and Agricultural Cooperatives and Government Housing Bank.
Deposit Protection under the DPA Act will cover current account, savings account, fixed account, certificate of deposit and other deposits of similar features denominated in Thai Baht are insured. Whereas
Non-Resident Baht accounts, which are account open for specific purposes according to the Exchange Control Act, derivatives embedded deposits and interbank deposits, as well as deposits in cooperatives (not classified as financial organizations under the DPA Act) are not insured. Moreover, investments in bonds, RMF and LTF funds, debentures and corporate bonds are not considered deposits and the DPA Act does not protect them. If a depositor has several accounts, in one branch or in different branches, of the same financial establishment, the amount of all accounts shall be aggregated. If a depositor of a financial institution whose license was revoked has loans with the institution, the DPA will do the netting of the loan amount before reimbursement.
The DPA Act has been promulgated with the objective to provide protection to the majority of depositors in the system and at present, Baht 1 million will cover 98.5% of the depositors. The scheme provides protection for juristic persons in the same way as individual accounts.
When the license of a banks or a financial institution was revoked, the depositors

August 2011 | SwiSS Thai Chamber of CommerCe | 05 have to file a claim within 90 days after the announcement of DPA. The reimbursement will then be made to depositors within 30 days from the date of submission of the claim.
From now on it is recommended that depositors assess the strength of a financial institution using several indicators such as
Capital adequacy ratio (CAR), NPLs ratio, reserves or ratings by organizations with domestic and international recognition.
These indicators can be found on the websites of the various financial institutions.
More info
Dhira Yoonaidharma dhira@hutterdhira.com
On July 31 (Sunday) 600 guests celebrated the Swiss National Day in the garden of the Swiss Embassy Residence. The singer Maja Brunner from Switzerland entertained so well that some people were even encouraged to dance.
Thanks to the sponsoring of Bangkok Air
Catering who even donated the dessert buffet, everybody could enjoy an extensive salad buffet, delicious bread and even Cervelats and ‘Bratwuerste’ from
Switzerland. Naturally, Swiss wine was
During a Lucky Draw two air tickets to
Switzerland sponsored by Air Berlin, one dinner with the Ambassador’s couple, two Swatch watches and two silver
Caran d’Ache pens were given away. –
Congratulations to the winners.
Special thanks goes to all the sponsors that made this celebration party possible: Bangkok Air Catering, Noventa,
Roche, Hotel Rembrandt, Air Berlin,
Asian Trails and Swatch.
Swiss Singer Maja Brunner and Linus A.E.
Knobel, Managing Director Bangkok Air
Catering
Strength. Performance. Passion.

06 | SwiSS Thai Chamber of CommerCe | August 2011
The graduates and the Headmaster Dr. Halter say goodbye Michael Gwerder – the new Headmaster at
Swiss School Bangkok
Shining students, proud parents, and prominent guest speakers: with an impressive program the Swiss School Bangkok presented itself to their guests on 10th June 2011 at this year’s graduation ceremony and said goodbye to the six graduates, who all have successfully completed their school career in 2011.
“We, your teachers and parents, have given you wings. Now you need to fly yourself.” These were the parting words with which the six students of grade 12 were released to their next stage of life when they will start university in Europe and Asia. In addition to the bright graduates 13 students of grade 10 could receive their German high school diploma.
The diplomas were presented by the Swiss ambassador H.E.
Christine Schraner Burgener and the German ambassador Dr.
Hans Heinrich Schumacher.
The Board of Swiss School Bangkok has elected Mr. Michael
Gwerder, M.A., as the new Headmaster. Mr. Gwerder is cur rently employed as the Middle and High School Principal at the
Swiss School Colegio Suizo de Santiago, Chile. He will succeed
Dr. Daniel Halter and take office on August 1st, 2011.
Mr. Gwerder (born in 1974) was raised in Central Switzerland.
After the Swiss Maturity, he studied German, English and Span ish Languages and Literatures at the University of Lausanne,
Switzerland. At the same time, he taught foreign languages at
In the festively decorated hall of the RIST, students of grades
8, 10 and 12 captured the stage and provided the audience an extraordinary and memorable farewell performance with Italian opera singing, rock, jazz and classical piano sonatas. Very impressive was the music presented by the AEG Big Band of the
Albert-Einstein Gymnasium in Böblingen, who made a stopover in Bangkok on their way to a Big-Band contest in Singapore.
To “Fly away” and “The final countdown” the whole hall was rocking and the audience concluded by thanking the Headmaster Dr. Daniel Halter with a big applause, who after five years of service will now leave Swiss School Bangkok and will return to
Switzerland.
One day later, the celebrating school community met again in the ballroom of the Sheraton Grande Sukhumvit Hotel for this year’s Matura ball according to the motto “MaturAir”. At this social highlight of the German speaking community in Bangkok people danced and celebrated extensively. With great anticipation the guests anticipated the announcement of the main prizes of the tombola, which again offered great prizes like flights and hotel stays. Also, the guest enjoyed a great buffet dinner.
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August 2011 | SwiSS Thai Chamber of CommerCe | 05 different language institutes, schools and private companies both in the German and French-speaking part of the country.
Upon graduation, he lectured on German language, literature and culture at the University of Michigan in Ann Arbor, U.S.A., and the University of Limerick, Ireland.
Subsequently, he was appointed Vice-Principal at Swiss School
Colegio Helvetia de Bogotá, Colombia, and later at Swiss School
Colegio Suizo de Santiago, Chile. From Colombia, he completed an executive postgraduate program in School Management at FernUniversität in Hagen (Distance University of Hagen),
Germany/Studienzentrum Brig, Switzerland. Currently, he is submitting his dissertation to earn a M.Sc. in Educational Lead ership at the University of Leicester, Great Britain.
Starting now: excellent European education in English!
In August 2011, the new English-speaking European branch opens its doors at Swiss School Bangkok. Children from Thai and international families that consider English a must and other European languages (German, French and Spanish) a plus will have the opportunity to study on the proven Swiss-German curriculum at our small, familiar and excellent international school approved by both the Swiss and the German govern ments.
For the 2011-2012 school year, English speaking classes will be available from kindergarten up to grade 3. Our native teachers are already looking forward to tutoring the newly arrived pupils immersively in English!
Swiss School’s English branch will later apply at the International Baccalaureate Organization (IBO) to be able to offer all of their three programs: the IB Primary Years Program (PYP),
Middle Years Program (MYP) and Diploma Program (DP). Students will then have the opportunity to graduate with the IB
Diploma that gives access to universities worldwide.
Of course, the traditional German-speaking branch will remain what it has successfully been for the last 48 years: a school based on the Swiss and German curriculum for German-speak ing pupils who may graduate with the Bilingual Swiss Maturity diploma that, like the IB diploma, gives access to universities worldwide.
Please contact the school for further information:
Call: 02 518 - 0340 or visit: www.swissschoolbangkok.org
08.08.2011
GTT
Talingchan | Bangkok | Tel 0 2448 7466-8
Talingchan | Bangkok | Tel 0 2448 7469

08 | SwiSS Thai Chamber of CommerCe | August 2011
1. Name or Alias
Niti Klaus Meyer
2. Birth Place & Birthday
Bangokok, 14 June 1951
3. Occupation / Employer
Lawdegree from Fribourg University, Switzerland but in business since 30 years. My company is Novatech Co.Ltd. we are mainly in the aviation support and vehicle building business.
4. Languages
Schwiizerdütsch, Thai, English, German.
A bit of French and Italian.
5. Family & Home
My house is off Chaengawattana Rd. where
I live with my wife Jiraporn and our 2 sons.
6. Years in Thailand
Back in Thailand permanently since 30 years after living in Switzerland and the USA since age 12.
7. Favorite restaurant in Thailand
There are so many good ones! But our
“family restaurant” must be Rossano’s
(since his first restaurant). Fireplace grill for beef. Mayflower for Chinese.
Thai food best at home.
8. Favorite destination in Thailand
Pattaya, Chiang Mai.
9. How do you spend your free time?
On my boat in Pattaya (not as often as
I would like to) fishing, island-hopping.
I also love to read.
10. Which book or movie would you recommend to your friends and why?
To understand Thailand’s present better read
David Wyatt’s “Short History of Thailand”.
To totally disconnect from reality and have fun watch the “Pirates of the Caribbean” movies.
11. If you had a million dollars, how would you spend it?
Sadly the dollar isn’t worth what it used to be! But if I had a spare million I would be able to help various charities more meaningfully. There are some really dedicated and deserving people out there at the Pattaya
Orphanage, Fr. Ray Foundation, Human Development Foundation etc. and various projects supported by Rotary. And maybe a new boat...
12. If you had the power to change something in Thailand, what would it be?
One word: corruption! It is the root of so many evils yet so ingrained in this society.
Without corruption Thailand could be at the same level of development as Korea, Taiwan,
Singapore.
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August 2011 | SwiSS Thai Chamber of CommerCe | 09
New associate members
Foxcom Pte. Ltd.
26, Jedburgh Gardens
457092 Singapore
Tel: +65 6246 6223 Fax: +65 6245 6356 e-mail: bob@fox-com.com
Representatives: Mr. Robert Fox
Activity: Regional advisory for IT Business and investment
Mr. Kriengkrai Bhuvanij
48/58 Moo 6, Petchwattana, Ban Mai, Pakkrett, 11120 Nonthaburi, Thailand e-mail: kringkrai_bhu@yahoo.com
Activity: Regional Rep IBM
Member detail updates
Do you have changes among your delegates or changes to your e-mail, mobile, telephone, or fax numbers? Please send all updates to secretary@swissthai.com
Membership fee 2011
We still have outstanding Membership fees. As we do not have messengers cruising in the city - NO cheque- payments please – direct pay in to our
Bank of Ayudhya account only . Please verify with your accounting that the fee is paid and the copy of the pay in slip has been sent by e-mail [no fax] to our secretary@swissthai.com ; only then the fee is considered as paid and a receipt is issued. Thanks for your help to minimise collection efforts.

10 | SwiSS Thai Chamber of CommerCe | August 2011
To address income inequality… 50% drop in prices in two years, vs. the April 2008 peak price of
USD1,015, when rice prices more than tripled in a year.
While its economic achievements in the past decade have reduced the poverty rate dramatically, Thailand’s income disparity has improved relatively slowly. The poverty rate fell sharply from 33.7% in 1990 to 8.1% in 2009. However, the number of people living on less than USD2 a day (on a purchasing power parity basis) worsened recently, to 26.5% in 2009, after falling from 25.6% in 1992 to 11.5% in 2001, according to the World
Bank. Although Thailand’s Gini Coefficient improved from 0.54 in 2000 to 0.49 in 2009, it was worse than 0.39 reported in 1991, according to the NESD. The richest 20% accounted for 58.6% of the country’s income and the poorest 20% had 3.9% in 2009. The income gap between the richest 20% of the population and the poorest 20% stood about 11.9 times in 2009, albeit improving from 14.3 times in 2006 as the authorities adopted measures to help low-income earners. With most of the poorest group engaged in agriculture, it is not surprising that the authorities’ welfare policies have been geared towards that group. The average monthly farm income remained relatively low, at THB4,622, vs. the country’s average monthly income of THB9,289 in April
2011. The poverty rate in Thailand’s urban areas stood at 3% in
2009, while that in rural areas stood at 10.4%. The cross-regional income disparity also remained high, with the Northeast residents (mostly farmers) earning only about THB4,351 vs. Bangkok’s THB11,924, in 2010.
…raising concerns about the government’s finances…
Increase in compensation by the government in turn points to higher fiscal deficit. This could worsen the government’s deficit by about 0.8% of GDP, as suggested by the Thai Rice Exporters
Association. The price guarantee scheme could also provoke rice smuggling from neighbouring countries, which would add further to the government’s fiscal burden. Meanwhile, although we understand the welfare argument to support the farmers, we remain concerned about the unintended consequences on farmers’ productivity and quality of their products. While we limit our coverage to the rice price guarantee scheme in this report, there are growing concerns about the future health of the government finances if the incoming government carries out all of its campaign pledges (e.g. rice price guarantee, tax cuts and infrastructure projects), which would increase the government debt sharply. We will reserve our forecast change until more details are given about the new government stimulus measures.
At the same time, there are concerns that implementation of the campaign promises (e.g. rice price guarantee and minimum wage increase) would add further to inflationary pressure. This in turn poses upside risks to our rate outlook as the Bank of Thailand adjusts its own inflation forecast.
…government may reinstate rice price guarantee… …and concerns about food price inflation
In 2010, the agricultural sector was responsible for 38.2% of total employment and 12.4% of GDP. Hence, it is not difficult to understand the sector’s political importance. Over the years,
Thai governments pursued various income-boosting measures to raise farmers’ income. Indeed, the incoming administration has pledged to reinstate rice price guarantee (THB15,000 a ton),
40% higher than the guaranteed price of THB11,000. This focus on rice prices is also understandable, with rice prices lagging behind other food prices. While the world food prices index rose 32.9% yoy in June 2011, Thailand’s 5% broken milled white rice price rose 12.4% yoy to USD515 per metric ton, after about a
There are obvious concerns that the new rice policy could stoke food price inflation, not just at home but around the world. Thailand is the top exporter of rice, responsible for about a third of total rice traded (in volume) in the world, followed by Vietnam.
According to the president of the Thai Rice Exporters Association, Khun Chookiat Ophaswongse, this price guarantee could result in about a 65% jump in the export price of white rice to about USD850 per metric ton.
Source: Deutsche Bank
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August 2011 | SwiSS Thai Chamber of CommerCe | 11