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Posts Tagged ‘Malaysia Business’

26th March 2011

Those following this blog with any frequency may have by this point noticed that the blog has been monitoring the crisis situation in Japan in some depth while failing entirely to provide any information regarding the Earthquake that recently occurred in Shan State, Myanmar (Burma). The administration apologizes for the oversight. To quote directly from the official website of the Montreal Gazette at MontrealGazette.com:

YANGON. A strong earthquake struck Burma near the Thai border on Thursday, killing at least two people, including a child, officials from both countries said, with shaking felt across the region.

Terrified residents fled their homes, tall buildings swayed and hospitals and schools were evacuated after tremors spread as far away as Hanoi, parts of China and Bangkok, almost 800 kilometres from the epicentre.

The administration of this blog highly encourages readers to click on the hyperlinks above to learn more about the recent Earthquake in Myanmar. This blogger was personally told by multiple Thai residents of Bangkok that tremors could supposedly be felt as far away from the Thai-Burmese border as Nonthaburi province near the Bangkok Metropolitan Area.
Unfortunately there is a tragic side to these events since the recent Earthquake has taken its toll upon the Shan State residents. To quote directly from the official website of The Irawaddy at Irrawaddy.org:
Local relief workers in eastern State Sate said on Saturday that the death toll from the powerful earthquake that shook Shan State on Thursday night could very likely rise to more than 150. Burma’s state media reported on Saturday that 73 people had died as a result of the 7.0 magnitude tremor and its subsequent aftershocks on Thursday and Friday.[sic]
Again, the administration encourages readers to click upon the hyperlinks above to read the full story in detail.
This Earthquake’s human toll is truly disheartening and it seems likely that there will be political and economic ramifications from this event that could result in hardship for people near the Earthquake’s epicenter. In and of itself, the Earthquake in Burma is unlikely to have the same global impact as that which occurred in Japan. However, this Earthquake coupled with the economic and, sadly, nuclear fallout caused by the Japanese Earthquake could compound economic and business uncertainties and possibly contribute to what would appear to be increasingly rising commodities prices.
The Earthquake in Myanmar is notable in the context of the Association of Southeast Asian Nations (ASEAN) since Myanmar is a Member of that organization along with neighboring Thailand. It will be interesting to see if the recent Earthquake will have any impact upon the proposed high speed rail line that is to be brought online to connect Southern China with Laos, Thailand and ultimately the other ASEAN member states.
For related information please see: Asia-Pacific region or ecommerce.
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26th September 2010

Those who track this blog may have noticed that there has been an increase in political activities which have disrupted the otherwise calm political and economic environment in the Kingdom of Thailand. There are many who feel that these disruptions are only temporary and will not prove detrimental over the long term. In the short term, individuals and businesses in Thailand are analyzing some new risks which have manifested themselves over the past 9-12 months. To quote directly from Westlawbusiness.com:

Several companies have recently disclosed risks arising from the political turmoil in Thailand. For example, Priceline.com, an online hotel auctioneer, recently disclosed that “civil unrest in Thailand, a key market for our Agoda business and the Asian business of Booking.com. This may result in “significant year-over-year declines in booking volumes in this market….Thailand has experienced disruptive civil unrest in prior years as well and continued or future civil or political unrest could further disrupt Agoda’s Thailand-based business and operations.”

Communication cable manufacturer General Cable is also reporting that it is subject to business risk arising from unrest in Thailand. The copper, aluminum, and fiber optic wire and cable products provider recently disclosed that its “business is subject to the economic, political and other risks of maintaining facilities and selling products in foreign countries. . . Thailand recently experienced significant political and militant unrest in certain provinces. The country’s elected government was overthrown in September 2006, with an elected government only recently restored.” [emphasis in original]

Political turmoil can have substantial unforeseen consequences for some businesses and business models operating throughout Asia. This is why retaining the assistance of local legal counsel can be advantageous for multinational corporations as professionals with on-the-ground knowledge of local business customs and practices can guide clients away from unforeseen legal, and in some cases; business, risks.

There are many, this author included, who feel that the current political turbulence in Thailand is simply a “bump in the road” eventually leading to overall tranquility and economic prosperity in the Kingdom of Thailand as well as the South East Asia region. Bearing that in mind, those wishing to establish a business or corporate presence in Thailand are well advised to conduct research and due diligence before making irrevocable business decisions as  maintaining a corporate presence in Bangkok, or the emerging markets in Cambodia, Laos, Burma (Myanmar), Malaysia, and Vietnam can be fraught with unforeseen legal and business issues which may not arise in jurisdictions such as the United States, the European Union, the United Kingdom, Australia, or Canada.

Many wishing to do business in Thailand opt to do so under a Thai Limited Company as this type of juristic person provides a measure of limited liability. Limited Liability is often one of the first methods employed by those wishing to hedge against unforeseen future business risks. American businesses may also enjoy many benefits pursuant to the language of the US-Thai Treaty of Amity. Regardless of the type of corporate structure, any foreigner wishing to work in the Kingdom of Thailand must obtain a Thai work permit prior to taking up employment pursuant to Thai labor law.

For related information please see: Bangkok Lawyer or Amity Treaty Company.

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