Insights

In April, the Bangkok Post reported a curious case of Thailand forcibly removing a US national’s “seastead” residence on the grounds that it compromises Thai sovereignty. “Seasteading” is described as the making of a home in a new, previously uninhabited place at sea, and is associated with the concept of autonomy, self-sufficiency and a frontier lifestyle. This is usually achieved by building residential structures just beyond the fringes of a country’s territorial waters in an attempt to remove the structures from any governmental control.

Global business is facing a wave of disruptive influences that look set to spark the Fourth Industrial Revolution. We explore how the way professionals work is evolving, the leadership skills that will be needed within the dynamic mid-market to thrive, and how organisations can stay competitive in the war for talent and customers in 2030.

As one of the world’s purest examples of information collection, organisation, and processing, auditing is set up to benefit from the latest advances in software in a way that few other sectors can match. Data analytics, artificial intelligence, machine learning, robotic process automation – these and other related innovations are a perfect fit for the complex demands of the auditing world. Many of the challenges facing the current generation of auditors involve the close reading of contracts, identification and analysis of transactions, reconciliation of accounts, checks for anomalies and inconsistencies, and generation of reports. With the benefit of new technology, each of these requirements can now be met faster and at a higher level of accuracy than ever before.

Most family businesses fail to survive past the third generation. Personal disputes, legal challenges, and other obstacles can tear family businesses – and sometimes entire families – apart. Fortunately, safeguards are available to help ensure a smooth transition between generations. The process of succession can be supported and facilitated before it even begins, with the help of a well-written family constitution.

Despite a decades-long conversation, progress towards gender parity has been slow. Grant Thornton research shows that, while the global percentage of women in senior management hit 29% in 2019, in 2018 it was 24% – an identical figure to 2016, 2014 and 2007. It takes more than good intentions to create change: the business case for diversity must be convincingly argued. That case is clear: a study of 1,000 companies in 12 countries by McKinsey & Company found that organisations in the top 25% for gender diversity among executive leadership were likely to outperform on profitability (by 21%) and value creation (by 27%).

Employee engagement is often confused with employee satisfaction, but there is a fundamental difference between the two ideas. A team member may be content with the easy rhythm of the status quo, but only an engaged employee will take the initiative to improve efficiency and performance wherever possible.

TFRS 16 largely retains the definition of a lease in TAS 17 but changes the guidance on how to apply it. This refinement was necessary, as the removal of ‘off-balance sheet’ operating leases created a greater need for distinguishing between a lease and a service contract.

January 2019 marked the one-year anniversary of the inception of the US - China trade war. What started with the US increasing import tariffs on Chinese solar panels and washing machines, later spiralled into retaliatory and counter-retaliatory tariff measures between the two countries. Throughout much of 2018, the global business community looked on with apprehension as the two largest economies escalated their trade dispute, which, at its peak, tallied 360 billion USD in combined tariffs. At the close of 2018, the world breathed a sigh of relief when the US and China called for a temporary truce and agreed to resume trade negotiations.

The Labor Protection Act (No.7) has been officially published in the Royal Gazette on 5 April 2019, and will be in effect on 5 May 2019. The essentials of the amendments are set out in this article.

On 26 March 2019, the Cabinet approved draft Royal Decrees revoking all tax benefits granted by the Thai Revenue Department (“TRD”) to the following Board of Investment (“BoI”) regimes: 1. Regional Operating Headquarter (ROH); 2. International Headquarter (IHQ); and 3. International Trading Center (“ITC”)

Too often considered to be a medium-to-low priority, corporate culture affects everything about an organisation – from the way its over-arching goals, to its internal behaviour, to the types of interactions it creates with its customers. Moreover, corporate culture issues are primarily leadership issues, because the way senior management thinks and acts will always affect the mindset at other levels of the organisation.

Today’s technology companies can learn something from Khevenhüller. They may not fear foreign conquerors, but they do face attack from malicious actors that are set on stealing their IP or the personal data they hold. They must identify the assets that are most important, consider the most likely lines of attack, and tailor a defensive strategy accordingly.

If the numbers don’t seem to add up, or the receipts aren’t where they are supposed to be, many clients will have a logical explanation ready. But how much should they be taken at their word? And how should auditors handle situations where client representatives insist that a particular inconsistency is nothing to worry about? A healthy sense of scepticism is an essential asset for every responsible auditor, allowing them to shield their work against all sorts of corporate maneuvering. This approach indeed preserves much of the value of an independent audit.

Market Mapping provides a thorough, intelligence-based overview of talent availability in your industry, including potential candidates who are not actively searching for new positions. The database is not limited to skill-based metrics, but rather also takes into account the personality types of relevant candidates, and how well they are likely to fit in with your own company’s culture.

In our Grant Thornton's global Women in Business campaign, Kamonwan Wipulakorn CEO of One Origin, a subsidiary of one of Thailand’s largest real estate developers Origin Property Pcl, explains Thailand’s progressive workplace culture.

A company may ‘feel’ more complete when it has its own accounting, admin, HR, and marketing departments – and indeed, many (mostly larger) businesses do well under this format. But for most SMEs, these sizable sections of the company add no value to the product or to the consumer experience. On the contrary: They divert time, effort and attention away from the activities that generate actual profit for the business. There is a reason, after all, why businesses keep going back to the old saying: ‘Do what you do best, and outsource the rest.’