STCC Newsletter Sep 2020
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SEPTEMBER 2020 | SWISS-THAI CHAMBER OF COMMERCE | E-NEWSLETTER #122 TOP NEWS SUPPORTED BY Legal: Thailand Issues Additional Payment Extensions and Assurances Regarding 2020 Land and Building Tax School News: Open House Info Session on Saturday, 26th Sep- tember 2020 / Awarding of language diplomas / Preparation week and education workshops / First day of school THE PRESIDENT’S MESSAGE DEAR FRIENDS AND MEMBERS OF THE STCC the Vatican City, which is an in- dependent city-state, but tech- nically not a sovereign state. When you visit the United Na- tions Headquarters in New York, you notice it is the only square flag flying outside. In order to prove that we practise unity of doctrine in the Swiss Federa- PRESIDENT BRUNO G. ODERMATT tion, all the flags of all Switzer- land’s cantons are also square. You might wonder - what do One could say that our ancestors the Southeast Asian countries truly dared to be different. like Singapore, Indonesia and Malaysia have in common with As we patiently wait to regain Switzerland, besides the fact our own personal freedom from that Switzerland has been en- the devastating pandemic, the SERVICE joying excellent relations with economic toll is affecting most them? All of them celebrated economies around the globe. MEMBER DETAIL their Independence Day in Au- Switzerland’s economy shrank gust, same as in Switzerland. by 8,2% in the second quarter, UPDATES The Indonesians even have a law as the pandemic triggered the that obliges the flying of the red worst quarterly downturn in 40 Do you have changes among your and white flag for every citizen years. As a recession is defined delegates or changes to your in their homes at that day. The as two consecutive quarters of e-mail, mobile, telephone, Swiss, being known as fairly pa- contraction, Switzerland of- or fax numbers? triotic people, also have some- ficially entered into one. The thing to be proud of; it is the service sector was severely bat- Please send all updates to only sovereign state in the world tered, seeing a 54% drop in eco- [email protected] with a square flag. The only oth- nomic output in accommodation er square state flag belongs to and food services. Luckily, the 1 SEPTEMBER 2020 | SWISS-THAI CHAMBER OF COMMERCE | E-NEWSLETTER #122 THE PRESIDENT’S MESSAGE SUPPORTED BY strong performance of the phar- (source BAK Taxation Index maceutical sector helped to off- 2019), which measures the at- set some of the losses in manu- tractiveness of Swiss cantons, facturing, where watchmakers amongst others, with locations and machinery makers are faced abroad. Simply said, it means if with really tough times. The Hong Kong does not adjust its TRINA German economy contracted tax regime by 2025, Nidwalden INTERNATIONAL by 9,7%, the French economy will push it off the top spot by 13,8%, and Britain’s econ- with a tax rate of 9,8%. Tough omy shrank be a record 20,4%. to match, I would add, and Since those countries are major when you scroll down the list trading partners of Switzerland, published by BAK, amongst the their dramatic drop in econom- top 15 tax places you will find ic output will also impact the 12 Swiss cantons, besides Hong Swiss economy. Thailand re- Kong, Budapest and Dublin. ported its deepest contraction Well done, Switzerland. since the Asian Financial crisis in 1998 and shrank by 12,2%. As we go through some struc- As its economy relies heavily on tural changes in our Chamber to Tourism for growth, its econom- improve our service offerings, ic outlook remains one of the you will receive more frequent worst in the region. updates as part of our commu- nication strategy. One initiative As a firm believer in free mar- was our Business Stamm Net- kets, low taxes, and small gov- work Event on August 13, host- ernment, one reason why I am ed by the Swiss Ambassador at optimistic about Switzerland’s her residence. It was a splendid future is one key decision which success with an enlightening was made in 2019. The pragmat- Covid-19 repatriation presenta- ic Swiss electorate voted for tion by our member Andi Wan- a major corporate tax reform, ner. As we had some Covid-19 which will be fully implement- restrictions and were limited ed by 2025. This actually means to inviting 40 participants, the that Hong Kong will soon lose event was sold out in less than its status as the place with the 24 hours. We apologize to those world’s lowest corporate tax to members who were not able to an obscure little canton in Swit- be part of. We are planning to zerland, called Nidwalden, with hold regular events with a sim- a population of around 40,000 ilar format, where you will be people. As I am a native of this able to mingle, network and lis- mountainous canton, it makes ten to top notch presentations. me extremely proud. This is according to a taxation index You should also see more joint published by BAK Economics events with other Chambers and 2 SEPTEMBER 2020 | SWISS-THAI CHAMBER OF COMMERCE | E-NEWSLETTER #122 THE PRESIDENT’S MESSAGE regular business luncheons with Stamm. He will also look after With my best wishes guest speakers in the months our young professionals living to come. In order to facilitate and working in Bangkok. Given the implementation of our new his age, business, and academ- strategy, we also aligned the ic background, he is the perfect Bruno G. Odermatt-Maag business portfolios of our Board person for this assignment. President of Directors. Amongst others, *** Dr Niti Meyer is now in charge Despite the dire economic and Contact the President: of Program Director, charged to social consequences caused by Bruno G. Odermatt-Maag, CPCU select high level guest speakers. the devastating pandemic, we President STCC David Stauffacher, our incoming are still moving ahead with im- [email protected] Executive Director whom many of plementing some major structur- Tel: +66 2 652 1911 you got to know during his stint al changes in our Chamber in or- at the Swiss Embassy, will be in der to position ourselves for the charge of our Business Network post-Covid period. STCC CALENDAR SEPTEMBER 2020: Thursday 10 September 2020: STCC STAMM 18:00 at Haefele (Sukh. 64) Thursday 8 October 2020: Stamm 18:00 at Arnoma Hotel Wednesday 14 October 2020: SSB AGM 18:00 at Sofitel (Sukh. 13-15) Further Activities for September onwards will be announced later More details for above events please wait for the invitation-mail or get it from www.swissthai.com, click on “events”. 3 SEPTEMBER 2020 | SWISS-THAI CHAMBER OF COMMERCE | E-NEWSLETTER #122 THE PRESIDENT’S MESSAGE BUSINESS NETWORKING STAMM „ COVID RELAX“ On Thursday, 13th August, the Loo, provided us with an enlight- STCC held its first ever STCC Busi- ening first -hand account of his ness Network Stamm at the Swiss experiences of returning to Thai- Embassy. In order to reconnect land with a family of four, includ- after the lockdown and officially ing two small children. Well done, restart business activities since Andi, and we hope that your family the start of the COVID Pandemic, will settle well in Bangkok. It was hours, we extend our apologies to H.E. Madame Ambassador Helene a first-class evening with terrific those members we were not able Budliger-Artieda invited the Swiss presentations, delicious food and to join this event. We are planning business community to a Net- excellent wine, and we extend further events with a similar for- work Stamm at her private resi- our gratitude to the Ambassador mat in the future and our incoming dence. The Ambassador provided for hosting the STCC at her pri- Executive Director David Stauff- the members with a frank update vate residence and sponsoring the acher, who is in charge of organiz- about her assessment of the cur- wine. Due to COVID restrictions ing the Business Network Stamm, rent COVID crisis and its impact on the event was limited to 40 people will keep you informed. the Thai society and the business and bookings were dealt with on a community. Our corporate mem- “first come, first served” basis. As Please stay tuned to further news ber Andi Wanner, co-founder of Mr. the event was sold out within 24 from David. 4 SEPTEMBER 2020 | SWISS-THAI CHAMBER OF COMMERCE | E-NEWSLETTER #122 ECONOMY SPECIAL REPORT BY DEUTSCHE BANK NEARING AN END TO MONETARY EASING Asia continues to offer the most positive exam- Nearing an end to monetary easing ples of how to suppress the Covid-19 virus, and, having done so, of how quickly economic activity China’s data are the closest approximation to a V- can recover. China, Hong Kong, South Korea and shaped recovery that we’re likely to find anywhere, Vietnam have experienced strong recoveries in with Q2 GDP expected to show a complete rever- consumption after containing the virus outbreak. sal of the Q1 decline. There continue to be spo- Unfortunately, some other countries have not radic outbreaks, to which the authorities respond succeeded in containing the virus, despite with the same determination they showed in Wu- lengthy lockdowns. We expect their recoveries han, but these haven’t been worrying enough to to be weaker. get in the way of the economic revival. Exports continue to present a positive surprise. Vietnam reacted quickly to the news of the out- While depressed demand in the US and EU and break in China, implemented an even harder social distancing restrictions, that have at times lockdown than China did and suppressed the constrained exporters’ ability to ship goods, have virus just as effectively.