On Looking South this week, Eric Gau chats with Chairman of the Joint Foreign Chambers of Commerce in Thailand, Mr. Stanley Kang about the impact the New Southbound Policy could have on ties with Thailand.
Transcript:
Eric Gau: Hello everyone and welcome to Looking South here on ICRT. I’m Eric Gau and we’ve got another look at one of the facets of the “New Southbound Policy” today.
On the phone with me is Mr. Stanley Kang, Chairman of the Joint Foreign Chambers of Commerce in Thailand to discuss the prospects for Taiwan and Thailand under this policy. Mr. Kang, welcome to the program.
Stanley Kang: Thank you, Eric. Good morning.
Gau: Mr. Kang, you’ve been operating in Thailand for many years now, what sets Thailand apart from other regional countries in terms of business environment, and what makes it attractive for Taiwan businesses?
Kang: I think Thailand will be the hub in the Southeast Asia especially that we have been open for the foreign investment since 1960. After almost a 60 years opening, our economic and business level are quite similar to Taiwan. There are a lot of opportunity to see how can we have more bilateral cooperation here.
Gau: All right, you just mentioned that the Thai government is actively seeking to attract foreign investment, are there any Thai programs you feel could complement the New Southbound Policy?
Kang: Yes, like this year that the whole Thailand we’re working very hard on the next 20‑year road map in all the program. We are promoting our new Thailand 4.0. Also in this year, we have been promote the ICT Thailand, the startup Thailand.
A lot of new things are happen in Thailand and I believe that is a lot of connectivity that the opportunity for Taiwan and Thailand should work together for the business development here.
Gau: Right. You personally, your Joint Foreign Chambers of Commerce in Thailand, that is not just Taiwan businesses, those are chambers of commerce from all over the world. What investment projects or strategies have you seen that you believe Taiwan can learn from as it implements the New Southbound Policy?
Kang: Well, Thailand is a major investment for a lot of nations. Currently, you can see that there’s a lot investment coming from China and also there’s a lot of policy for Korea, Japan, and of course, there’s always a great player from US and Europe.
It’s quite attractive place especially that Thailand these days, we are promoting on our EEC, that’s East Economic Corridor, so I think in this part it’s already have a lot of Taiwanese investment on this region.
When we upgrade all the infrastructure in this region, they will create a lot of opportunity for Taiwanese to go and invest there, and especially they too have a lot of opportunities for all the Thais to come and invest in Taiwan.
Gau: You just mentioned some of the big players in the region, China, of course US across the ocean, what makes Thailand or Taiwan a better place for investment rather than those two bigger markets?
Kang: Basically our economy structure, Taiwan and Thailand are very similar. Our big enterprise is around three percent to five percent of our economy, but basically, we have very strong SME. I think both Taiwan and Thailand SME are very strong.
A lot of connectivity, or innovation, or research we can link it up for developing this SME. I think that will be a lot of potential. Especially in Taiwan, we know that there’s a lot of SME and they are very strong.
But the problem is that, in Taiwan it’s only 23 million peoples. The market is just this big. If they can walking wearily as Thailand to become another extension of the local market, and then will be much opportunity for the Taiwan SME.
Of course, when Thailand SME can get always innovative and support of new business model, support or cooperation from Taiwan, and they can upgrade themselves very fast. I think that will be a lot of good win‑win structure there.
Gau: Speaking of support, the Taiwan Financial Supervisory Council here recently announced that they’re going to be offering a lot of loans to encourage Taiwanese businesses to expand into a New Southbound Policy target countries. What effects do you think that this loan program will have and in your opinion, what other incentives can the Taiwan government provide?
Kang: I think the Thailand government should work hard to take it out the tariff between Taiwan and southeast countries especially in Thailand. Otherwise, a lot of feature or goods cannot be done there. That will be one of the obstacles that we can see right now, right?
Of course, Taiwan is very strong on the financial sector, too. How to find a way for Taiwan’s financial service sector, I mean loan or bank, this one, they get extension to get more customer. In Thailand in South Asia. That’s always a big opportunity for Taiwan.
Especially in the last 10 to 15 years, Thailand had developed a lot on the service sector. Personally, I feel that they cannot go out to provide their service as much as our manufacturing in the past to do all this exporting.
If Taiwan can have a renew its model to get a better connectivity with the local panel there, and to get their service, and to get their market to extend it and then I think that will create some win‑win policy situation for both country.
Gau: One of the New Southbound Policy’s goals is to help smooth the flow of talent in the region, what suggestions do you have for boosting education and training programs between Taiwan and Thailand?
Kang: One thing the economy rise up in Asia and especially in the last 15, 20 year you can see whatever changing in China. Of course, since 2016 when ASEAN get together and Thailand will become another shining star of the hub of Asia, of the ASEAN.
With this part, I believe that every country right now is fighting for the best talents, right? Taiwan have a lot education system. How can Taiwan to attract more Thai talents to come and study in Taiwan. When they graduate, when they be educated they can be the good talent to supply to a Taiwanese market. Also can, for the Taiwanese enterprise to go to market in Thailand that will be much easier.
At the same time, if a lot of our Taiwanese people here, youngster they can go and take more study in the Thai university. Right now, a lot of Thai university, they have English program too. If our students here, our youngsters here can go there and take a study for one or two year.
After they have been here, at least they get one more new language. They know small about the local culture, local economy, and do help in the region, because with the economy for Taiwan’s policy for the New Southbound Policy, I think it’s bilateral, right? We need more Thailand people to connect this two economy.
Once this two economy can be connected, I believe that will be generate a lot of momentum and power and new things comes up.
Gau: We’ve been chatting with the Joint Foreign Chambers of Commerce and Thailand Chairman, Mr. Stanley Kang. Mr. Kang, thank you so much for sharing your insights with us today.
Kang: You’re welcome, Eric.
Gau: That’s Looking South here on ICRT. You can find this program on the podcast section of the ICRT web page, as well as, a special blog there. I’m Eric Gau and thank you all for tuning in.