Insights

Whether you’re a sole trader or the CEO of a multinational organisation, we are all constantly seeking ways to do what we do better.

All organisations are grappling with the myriad of employee agreements and obligations that result in a wide variety of payments to their people.

Despite the challenges facing the Thai economy, businesses in Thailand can succeed in 2020 by reducing overheads, conserving cash, improving efficiency of internal structures, and focusing on customer service.

With the economic outlook in Thailand less bright than in years past, we look at how the country can find a new way forward for future business success.

Sustainability is vital to an organisation’s success. Team-building activities are an excellent way to generate ideas for improving sustainability.

Startups tend to be comprised of young, dynamic people who are passionate about their work and emotionally invested in the company’s success. However, as the business grows more complex and market conditions change, startups sometimes struggle to implement proper processes. It is here that many fledgling companies begin to go off-course. Failure to organise the business correctly and make necessary adjustments can lead to slowdowns in workflow, stalling the organisation just when it is most in need of momentum. Lapses in regulatory compliance are another common side effect of inexperience, resulting in fines and loss of investor confidence. Having passionate workers is excellent, but startups must also implement clear strategies and efficient processes in order to ensure both regulatory compliance and long-term success.

As technologies such as Robotic Process Automation, Artificial Intelligence, and Blockchain become increasingly integrated in the auditing industry, auditors will need to adjust their focus in order to thrive in this rapidly changing environment.

As we have seen, Thailand plans to spend money attracting new businesses and tourists, all while lowering personal income taxes. Given such an array of new expenses, the treasury arm of the Thai government would ordinarily come under pressure to balance the budget. Indeed, we have already seen the Ministry of Finance struggling to locate new sources of revenue. Thailand’s Revenue Department has considered plans for imposing taxes on capital gains, casting the tax net wide enough to include on-line operators. Banks will be required to report account holders with high-volume cash transactions in an effort to seal off tax evasion. Plans are in place to increase the tax base – with a target of adding 200,000 new taxpayers per annum.

The world’s leading survey of mid-market companies, Grant Thornton’s IBR, once again provides vital insight into the health of the global mid-market. These results for H1 2019 reflect the views of nearly 5,000 mid-market companies across 30+ countries interviewed in May and June of this year.

The International Accounting Standards Board (IASB) regularly publishes new International Financial Reporting Standards (IFRS), Interpretations of Standards (IFRIC) or amendments to existing IFRS Standards. In response to these, the global IFRS team publishes IFRS Alerts on these changes (and other issues relevant to IFRS) as they are announced so that you can keep up to date.

As the world’s economic engine slows, countries are moving to stimulate their economies by increasing government spending and cutting taxes to inject cash into the domestic economy. Such actions are intended to boost the economy, and prevent it from stalling.

As businesses strive to maximise growth and performance, they must always keep an eye on the changing environment around them. These changes typically occur among their customers or competitors, but regulatory policy can also have a big impact on business operations. The Thai government has recently enacted a number of policies, provisions and regulations to respond to new developments around the business world. These include the Personal Data Protection Act, new merger amendments to the Trade Competitions Act of 2017, and the Cybersecurity Act – all requiring potentially significant action among businesses operating in country.

Oftentimes, when an organisation wants to improve their profitability, they will look to make cuts. An easy place to start is with administrative costs, staffing and benefits. While undoubtedly a great way to save money in the short term, this can cause employees to become frustrated and disillusioned, leading to lower morale and decreased productivity. Moreover, customers may also become disgruntled if they notice that products or services have dropped in quality. Customer dissatisfaction will always cost money in the long-term. If the organisation has not taken the time to assess how cuts will affect productivity and growth, they may find that their cost reductions inadvertently turn into profit reductions.

For any industry reshaped by rapid technological growth, new business models must be accompanied by the development of complementary skillsets among its employees. The world of auditing is no different; as ever more advanced service capabilities raise client expectations, there is an increasing recognition among accountants that – as the saying goes – “what got you here won’t get you there”. Indeed, auditors in the financial services industry have traditionally prioritised skills such as accounting, risk management, IT and data analytics when looking to land their desired job. Training in these areas will remain essential for some time to come; however, an oft-overlooked set of “soft skills” is becoming ever more relevant in today’s age of digital transformation. These abilities emphasise the human side of business interaction, where interpersonal communication leads to understanding in a way that technology alone cannot yet replicate. With technology now playing a massive role in the finance industry along with other business sectors, auditors now have greater technical abilities at their fingertips than ever before. In such an environment, where computers can outperform even the best and most experienced auditors at fundamental tasks, the traditional role of the auditor can now expand into new areas. It is therefore worth exploring the challenges and opportunities of this new ecosystem, with an eye toward the particular skills that auditors can develop in order to differentiate themselves from their fellow auditors – as well as their silicon-based assistants.

Our Grant Thornton teams from the Singapore and Thailand firms had quite the adventure in Hua Hin. We got down and dirty in the mud to plant over 10,000 mangrove seedlings, which will be essential to the continued health of marine life and the delicate balance of the coastal ecosystem. We also participated in workshops and activities where our team spirit truly shined. Everyone who came on the trip demonstrated the Grant Thornton instinct for growth and a sincere desire to work together for a more sustainable future and a better world.

Now that the political climate in Thailand has stabilised, the government is looking to speed up its Free Trade Agreement (FTA) negotiations with key trading partners. Plans include resuming negotiations with the EU and UK post Brexit, as well as talks to join major multilateral FTAs. To be successful in these negotiations, Thailand needs to keep in mind the consequences that non-tariff barriers will have on improving trade as a whole.